Urging the Government of Ukraine to Ensure a Democratic, Transparent, and Fair Election Process for the Presidential Election on October 31, 2004

Urging the Government of Ukraine to Ensure a Democratic, Transparent, and Fair Election Process for the Presidential Election on October 31, 2004

Hon.
Ben N. Campbell
United States
Senate
108th Congress Congress
Second Session Session
Thursday, July 22, 2004

Mr. President, I rise to urge passage of S. Con. Res. 106, a bipartisan resolution calling upon the Government of Ukraine to ensure a democratic, transparent and fair election process for the presidential elections scheduled to be held in late October. This resolution, by encouraging fair, open and transparent elections, is a concrete expression of the commitment of the U.S. Congress to the Ukrainian people. The resolution underscores that an election process and the establishment of a genuinely democratic political system consistent with Ukraine's freely undertaken OSCE commitments is a prerequisite for Ukraine's full integration into the Western community of nations as an equal member, including into NATO. The October elections will be vital in determining Ukraine's course for years to come. They present the Ukrainian authorities with a real opportunity to demonstrate their commitment to OSCE principles and values.

As Co-Chairman of the Helsinki Commission, I would point out that Ukrainian President Leonid Kuchma recently cosigned a Declaration with Russia and leaders of several other independent former Soviet states criticizing the OSCE for focusing too much attention on human rights and democratization. While disappointing, this diatribe is not surprising given the fact that under President Kuchma's leadership, Ukraine's record in such as media freedoms, elections, the rule of law and corruption has moved in the wrong direction. It is up to the OSCE states, including Ukraine, to implement their freely undertaken OSCE commitments and to take corrective measures if necessary--something I hope the Ukrainian authorities will be mindful of in the run-up to the elections. Ukraine's pre-election environment has already been decidedly problematic and of great concern to the United States and the international community. The pending resolution, S. Con. Res. 106, focuses squarely on key problem areas, including increasing control and manipulation of the media and attempts by national authorities to limit access to international broadcasting, including Radio Liberty.

Among other concerns are the serious obstacles to free assembly and a free and fair political campaign as well as substantial irregularities in several recent elections, most notably, the mayoral election held in April in the western Ukrainian city of Mukacheve. This election was marred by intimidation, violence, fraud and manipulation of the vote count, electoral disruptions and irregularities. According to the most recent report of the nonpartisan Ukrainian nongovernmental Committee of Voters of Ukraine: There was no improvement in the political environment in June compared to April and May. Instead, CVU observed an increase in the number of cases of government pressure on the opposition designed to impede their activities. Potential candidates did not enjoy equal access to the media. The level of criminal interference in the pre-election process remains very high, thus threatening free elections. GPO's PDF S. Con Res. 106 outlines those measures the Ukrainian authorities need to take--consistent with their own laws and international agreements--for a free, fair, open and transparent election process. The Ukrainian authorities at all levels, including the executive, legislative and judicial branches, need to ensure an election process that enables all of the candidates to compete on a level playing field. This includes the various ministries and agencies involved directly or indirectly in the elections process, as well as Ukraine's courts. Ukraine's October presidential elections should be a watershed for the future direction of that country of great potential. Ukrainian authorities need to radically improve the election environment if there is to be hope for these elections to meet OSCE standards. By doing so, they will go a long way in restoring the trust of the citizens of Ukraine and strengthening Ukraine's independence and democracy. Mr. FRIST. Mr. President, I ask unanimous consent that the resolution be agreed to, the preamble be agreed to, the motion to reconsider be laid upon the table, and that any statements relating to the resolution be printed in the Record.

S. Con. Res. 106

Whereas the establishment of a democratic, transparent, and fair election process for the 2004 presidential election in Ukraine and of a genuinely democratic political system are prerequisites for that country's full integration into the Western community of nations as an equal member, including into organizations such as the North Atlantic Treaty Organization (NATO)

Whereas the Government of Ukraine has accepted numerous specific commitments governing the conduct of elections as a participating State of the Organization for Security and Cooperation in Europe (OSCE), including provisions of the Copenhagen Document;

Whereas the election on October 31, 2004, of Ukraine's next president will provide an unambiguous test of the extent of the Ukrainian authorities' commitment to implement these standards and build a democratic society based on free elections and the rule of law;

Whereas this election takes place against the backdrop of previous elections that did not fully meet international standards and of disturbing trends in the current pre-election environment;

Whereas it is the duty of government and public authorities at all levels to act in a manner consistent with all laws and regulations governing election procedures and to ensure free and fair elections throughout the entire country, including preventing activities aimed at undermining the free exercise of political rights;

Whereas a genuinely free and fair election requires a period of political campaigning conducted in an environment in which neither administrative action nor violence, intimidation, or detention hinder the parties, political associations, and the candidates from presenting their views and qualifications to the citizenry, including organizing supporters, conducting public meetings and events throughout the country, and enjoying unimpeded access to television, radio, print, and Internet media on a non-discriminatory basis;

Whereas a genuinely free and fair election requires that citizens be guaranteed the right and effective opportunity to exercise their civil and political rights, including the right to vote and the right to seek and acquire information upon which to make an informed vote, free from intimidation, undue influence, attempts at vote buying, threats of political retribution, or other forms of coercion by national or local authorities or others;

Whereas a genuinely free and fair election requires government and public authorities to ensure that candidates and political parties enjoy equal treatment before the law and that government resources are not employed to the advantage of individual candidates or political parties;

Whereas a genuinely free and fair election requires the full transparency of laws and regulations governing elections, multiparty representation on election commissions, and unobstructed access by candidates, political parties, and domestic and international observers to all election procedures, including voting and vote-counting in all areas of the country;

Whereas increasing control and manipulation of the media by national and local officials and others acting at their behest raise grave concerns regarding the commitment of the Ukrainian authorities to free and fair elections;

Whereas efforts by the national authorities to limit access to international broadcasting, including Radio Liberty and the Voice of America, represent an unacceptable infringement on the right of the Ukrainian people to independent information;

Whereas efforts by national and local officials and others acting at their behest to impose obstacles to free assembly, free speech, and a free and fair political campaign have taken place in Donetsk, Sumy, and elsewhere in Ukraine without condemnation or remedial action by the Ukrainian Government;

Whereas numerous substantial irregularities have taken place in recent Ukrainian parliamentary by-elections in the Donetsk region and in mayoral elections in Mukacheve, Romny, and Krasniy Luch; and Whereas the intimidation and violence during the April 18, 2004, mayoral election in Mukacheve, Ukraine, represent a deliberate attack on the democratic process: Now, therefore, be it Resolved by the Senate (the House of Representatives concurring), That Congress—

(1) acknowledges and welcomes the strong relationship formed between the United States and Ukraine since the restoration of Ukraine's independence in 1991;

(2) recognizes that a precondition for the full integration of Ukraine into the Western community of nations, including as an equal member in institutions such as the North Atlantic Treaty Organization (NATO), is its establishment of a genuinely democratic political system;

(3) expresses its strong and continuing support for the efforts of the Ukrainian people to establish a full democracy, the rule of law, and respect for human rights in Ukraine;

(4) urges the Government of Ukraine to guarantee freedom of association and assembly, including the right of candidates, members of political parties, and others to freely assemble, to organize and conduct public events, and to exercise these and other rights free from intimidation or harassment by local or national officials or others acting at their behest;

(5) urges the Government of Ukraine to meet its Organization for Security and Cooperation in Europe (OSCE) commitments on democratic elections and to address issues previously identified by the Office of Democratic Institutions and Human Rights (ODIHR) of the OSCE in its final reports on the 2002 parliamentary elections and the 1999 presidential elections, such as illegal interference by public authorities in the campaign and a high degree of bias in the media;

(6) urges the Ukrainian authorities to ensure—

  (A) the full transparency of election procedures before, during, and after the 2004 presidential elections;

(B) free access for Ukrainian and international election observers;

(C) multiparty representation on all election commissions;

(D) unimpeded access by all parties and candidates to print, radio, television, and Internet media on a non-discriminatory basis;

(E) freedom of candidates, members of opposition parties, and independent media organizations from intimidation or harassment by government officials at all levels via selective tax audits and other regulatory procedures, and in the case of media, license revocations and libel suits, among other measures;

(F) a transparent process for complaint and appeals through electoral commissions and within the court system that provides timely and effective remedies; and

(G) vigorous prosecution of any individual or organization responsible for violations of election laws or regulations, including the application of appropriate administrative or criminal penalties;

(7) further calls upon the Government of Ukraine to guarantee election monitors from the ODIHR, other participating States of the OSCE, Ukrainian political parties, candidates' representatives, nongovernmental organizations, and other private institutions and organizations, both foreign and domestic, unobstructed access to all aspects of the election process, including unimpeded access to public campaign events, candidates, news media, voting, and post-election tabulation of results and processing of election challenges and complaints; and

(8) pledges its enduring support and assistance to the Ukrainian people's establishment of a fully free and open democratic system, their creation of a prosperous free market economy, their establishment of a secure independence and freedom from coercion, and their country's assumption of its rightful place as a full and equal member of the Western community of democracies.

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Indeed, recognizing this important reality, the Obama Administration has launched the National Export Initiative, which seeks to deepen our strategic trade relationships around the world, recognizing that 85 percent of world GDP growth will occur outside the United States in the coming few years. As we encourage more American businesses – large and small – to embrace international trade, seek opportunities in new markets, and make strategic investments that will lead to increased global trade flows, we are keenly aware of the challenges and costs posed by official corruption, weak institutions, and lack of respect for property rights, including intellectual property. Weak governance and lack of transparency constitute non-tariff barriers to trade, which we have committed ourselves to eliminating. Furthermore, the same issues that deter trade and investment also work against comprehensive security: a lack of transparency in governance leads to diminished confidence that problems and disputes will be addressed in a fair and impartial manner. Without trust and confidence in public institutions, there is little incentive for investors and companies to pursue trade deals or direct investment in those economies. The effect is stagnating economic performance, which, as we have seen in the past several months and years, can lead to political upheaval. The United States Government is deeply committed to fostering good governance and transparency in its political and economic institutions. President Obama has made the global fight against corruption a top priority. As he has noted, “In too many places, the culture of the bribe is a brake on development and prosperity. It discourages entrepreneurship, destroys public trust, and undermines the rule of law while stifling economic growth.” The real world costs of corruption and weak institutions should not be underestimated. The World Bank estimates that more than one trillion dollars in bribes are paid each year out of a global economy of approximately 30 trillion dollars. That's an incredible three percent of the world’s economy. In 2009, companies lost nearly $25 billion to companies willing to pay bribes in deals for which the outcome is known. And bribery is especially costly for small and medium-size enterprises (SMEs): a separate study has shown that up to 25 percent of SME operating capital in companies operating internationally is diverted to corruption. That is a staggering figure that illustrates how corruption diverts scarce resources to thoroughly unproductive ends. Corruption is a global problem that knows no borders. And that’s why corruption demands a truly global response – one that knows no limits on collaboration. The Obama Administration is doing its part to implement its obligations under the OECD Anti-Bribery Convention by enforcing the U.S. Foreign Corrupt Practices Act (FCPA) strictly and fairly. We are determined to ensure that U.S. businesses do not contribute to corruption in foreign markets. At the same time, we are determined to do what we can to assist them in the fight against foreign corruption, and against the high risk and significant costs of corruption in such markets. Regrettably, at this stage, the lack of enforcement of domestic bribery laws, and of foreign bribery laws by many nations that are Parties to the OECD Anti-Bribery Convention is extremely troubling and raises concerns about a lack of political will. Governments can and should prosecute both those who give bribes and those who receive them, both at home and abroad. And the OSCE should continue to encourage participating States to adopt and enforce rigorous anti-bribery regimes. Of course, the fight against corruption is not simply a law enforcement matter; rather it can also be a significant – if not the most significant – non-tariff barrier all companies face. Accordingly, the U.S. Department of Commerce and the International Trade Administration (or ITA) are committed to working with our trading partners to level the playing field and to promote transparent and corruption-free markets globally. Our work to promote clean and ethical business environments occurs at both the multilateral and bilateral level. At the multilateral level, the ITA is pressing its counterparts to lead by example and to implement comprehensive anti-corruption measures. In addition to our work through the OECD, the United States has been working diligently to persuade the G20 countries to adopt a comprehensive anti-corruption action plan, which includes a commitment focused on adoption and robust enforcement of anti-bribery laws, implementation of the UN Convention Against Corruption, greater engagement with the private sector, and support for transparency mechanisms, to name a few. Many of these commitments require our G20 partners to enact and implement new laws and preventive measures. The United States, at ITA’s initiative, in particular, took the lead on proposals relating to the private sector and also on whistleblower protection, within the G20. In the United States, whistleblowers play a crucial role in helping to enforce anti-corruption law. This principle is also embodied in international conventions. Articles 12 and 13 of the UN Convention require States Parties to prevent corruption in the private sector and promote the fight against corruption with the business community and civil society. Unless governments can protect whistleblowers, it is unlikely that they can identify or address systemic causes of corruption. The United States believes robust whistleblower protection should be an essential part of any good governance initiative in the OSCE, and I was encouraged to hear Ambassador O’Leary indicate that this will be an area of focus under the Irish Chairmanship. The U.S. Department of Commerce has also been committed to fostering strong private sector integrity as an integral part of promoting good governance in markets worldwide. Companies are global corporate citizens, and as such, can work collectively and with governments to foster trust, and promote transparency. I hope that some our work may provide a useful model for the OSCE to consider as it looks to embrace good governance and anti-corruption as a priority for the second dimension, a goal we fully support, and which I am personally committed to supporting. For example, the ITA has championed business ethics and corporate governance reform since the early 1990s, following the fall of the Berlin Wall. Our Business Ethics Manual has been translated into Chinese, Spanish and Russian and is still one of the most widely used resources on this important topic. We have partnered with business associations and chambers of commerce to develop collective action and business ethics program in many markets. Our work on business ethics has grown. This past year, the ITA has focused on trying to heighten awareness of good governance, transparency and business ethics in sectors of vital importance to many economies – by taking a “sectoral” approach to combating corruption and promoting good business practice, the challenge of dealing with corruption becomes less daunting. The ethical issues specific to different industries vary greatly – and there is no one-size-fits-all approach to the problem. Within the G20, for example, the United States, at the initiative of the U.S. Department of Commerce, has taken the lead in calling for the G20 to endorse additional sectoral approaches to fighting corruption, beyond the Extractive Industries Transparency Initiative (EITI). We have asked G20 governments, for example, to consider supporting the Construction Sector Transparency Initiative (COST) – a new multistakeholder initiative, developed by the World Bank. COST uses similar approaches to EITI to promote greater transparency in public infrastructure projects and government procurement. I hope that the OSCE might similarly consider COST and other multistakeholder approaches to promoting transparency under the Irish chairmanship. Within APEC, the ITA has focused on developing new ethical principles for key sectors within the APEC region. I am pleased to report that under the APEC SME working group, we have coordinated a project with APEC countries and businesses to develop principles of business ethics in the construction, medical devices and biopharmaceutical sectors. These voluntary principles are meant to be used by businesses and trade associations – large andwithin the OSCE framework and the EEDIM, we might also consider focusing on business ethics in specific sectors of interest to all of our economies. I want to close by suggesting some activities to take the theme of good governance and transparency forward. In addition to encouraging the OSCE to formally endorse the Extractive Industries Transparency Initiative—a move that would send an important signal about this body’s commitment to the principles of good governance and transparency—the U.S. encourages us to explore whether there are additional sectoral initiatives that merit support from the OSCE, including the Construction Sector Transparency Initiative. The United States Government also strongly supports the Irish Chair’s goal to develop a Statement or Declaration of Transparency Principles to help guide our governments in their future activities. I want to encourage us to consider new models of bilateral cooperation to promote good governance such as the model Mr. Murray just discussed, leading to a public-private initiative in the Russian power generation sector. We at the U.S. Department of Commerce are working closely with the Center for Black Sea/Caspian Studies at American University to potentially convene a conference in May of next year that would seek to address the challenge of developing mechanisms to ensure good governance and transparency, while also balancing the goals of protecting national security and accelerating economic development faced by the countries of the Caucasus and Central Asia, as they seek to assert their role as a gateway between Europe and Asia. In addition, the conference will also focus on specific market access challenges to regional integration and economic development in the Caucasus and Central Asia such as transparency in Government procurement and privatization, and trade facilitation challenges, including customs and lack of regional harmonization. It is our hope that the OSCE will join us for this event – focused on critical areas such as transport and infrastructure – to work on tangible ideas for projects and collaborations in the OSCE region. We look forward with great interest to the 20th Economic and Environmental Forum, where we will delve deeper into all the facets of good governance. We also thank the Lithuanian Chairman-in-Office for  ensuring that their draft Ministerial Council decision on Energy Security incorporates transparency in the energy sector – in our view, considering the vital role that energy plays in modern economic life, there can be no confidence, and thus no security, without energy transparency. In the year ahead, we envision an even broader focus on transparency principles across the entire spectrum of economic and environmental activities, and will work with all of our colleagues in the OSCE to make that vision a reality. Thank you, Mr. Moderator.  

  • Commissioner Camuñez's Remarks on Good Governance

    Economic and Environmental Dimension Implementation Meeting Session 3: Good Governance Before I begin, I’d like to thank the panelists today for their excellent and informative presentations. The United States has viewed with keen interest the evolving discussions in recent years on what the OSCE’s priorities should be in the Economic and Environmental Dimension.  As our friend and colleague Mr. Svilanovic pointed out during last year’s Vienna Review Conference, we appear to have come to an appreciation that good governance is the key linking theme across the entire second dimension.  The Maastricht Strategy is very clear on this point: “Good public and corporate governance and strong institutions are essential foundations for a sound economy, which can attract investments, and thereby enable States to reduce poverty and inequality, to increase social integration and opportunities for all, and to protect the environment.  Good governance at all levels contributes to prosperity, stability and security.”  As we consider the implementation of our second dimension commitments, however, we should keep in mind why it is important to implement those commitments. The global economic downturn continues to put extreme pressure on people and governments across the OSCE region.  To be sure, some countries have weathered the storm better than others.  Still, no country can be forever immune to market forces, and even within those that have done well, there are always citizens left behind.  This is certainly the case in the United States, and for this reason President Obama is focused intently on how best to put those Americans without a job back to work.  We all know that trade and investment are critical drivers of economic growth.  Indeed, recognizing this important reality, the Obama Administration has launched the National Export Initiative, which seeks to deepen our strategic trade relationships around the world, recognizing that 85 percent of world GDP growth will occur outside the United States in the coming few years.  As we encourage more American businesses – large and small – to embrace international trade, seek opportunities in new markets, and make strategic investments that will lead to increased global trade flows, we are keenly aware of the challenges and costs posed by official corruption, weak institutions, and lack of respect for property rights, including intellectual property. Weak governance and lack of transparency constitute non-tariff barriers to trade, which we have committed ourselves to eliminating.  Furthermore, the same issues that deter trade and investment also work against comprehensive security: a lack of transparency in governance leads to diminished confidence that problems and disputes will be addressed in a fair and impartial manner.  Without trust and confidence in public institutions, there is little incentive for investors and companies to pursue trade deals or direct investment in those economies.  The effect is stagnating economic performance, which, as we have seen in the past several months and years, can lead to political upheaval.    The United States Government is deeply committed to fostering good governance and transparency in its political and economic institutions.  President Obama has made the global fight against corruption a top priority.  As he has noted, “In too many places, the culture of the bribe is a brake on development and prosperity.  It discourages entrepreneurship, destroys public trust, and undermines the rule of law while stifling economic growth.”    The real world costs of corruption and weak institutions should not be underestimated.  The World Bank estimates that more than one trillion dollars in bribes are paid each year out of a global economy of approximately 30 trillion dollars.  That's an incredible three percent of the world’s economy.   In 2009, companies lost nearly $25 billion to companies willing to pay bribes in deals for which the outcome is known.  And bribery is especially costly for small and medium-size enterprises (SMEs): a separate study has shown that up to 25 percent of SME operating capital in companies operating internationally is diverted to corruption.  That is a staggering figure that illustrates how corruption diverts scarce resources to thoroughly unproductive ends. Corruption is a global problem that knows no borders.  And that’s why corruption demands a truly global response – one that knows no limits on collaboration.  The Obama Administration is doing its part to implement its obligations under the OECD Anti-Bribery Convention by enforcing the U.S. Foreign Corrupt Practices Act (FCPA) strictly and fairly.  We are determined to ensure that U.S. businesses do not contribute to corruption in foreign markets.  At the same time, we are determined to do what we can to assist them in the fight against foreign corruption, and against the high risk and significant costs of corruption in such markets.   Regrettably, at this stage, the lack of enforcement of domestic bribery laws, and of foreign bribery laws by many nations that are Parties to the OECD Anti-Bribery Convention is extremely troubling and raises concerns about a lack of political will.  Governments can and should prosecute both those who give bribes and those who receive them, both at home and abroad.  And the OSCE should continue to encourage participating States to adopt and enforce rigorous anti-bribery regimes. Of course, the fight against corruption is not simply a law enforcement matter; rather it can also be a significant – if not the most significant – non-tariff barrier all companies face.  Accordingly, the U.S. Department of Commerce and the International Trade Administration (or ITA) are committed to working with our trading partners to level the playing field and to promote transparent and corruption-free markets globally.  Our work to promote clean and ethical business environments occurs at both the multilateral and bilateral level.  At the multilateral level, the ITA is pressing its counterparts to lead by example and to implement comprehensive anti-corruption measures.   In addition to our work through the OECD, the United States has been working diligently to persuade the G20 countries to adopt a comprehensive anti-corruption action plan, which includes a commitment focused on adoption and robust enforcement of anti-bribery laws, implementation of the UN Convention Against Corruption, greater engagement with the private sector, and support for transparency mechanisms, to name a few.  Many of these commitments require our G20 partners to enact and implement new laws and preventive measures.   The United States, at ITA’s initiative, in particular, took the lead on proposals relating to the private sector and also on whistleblower protection, within the G20.  In the United States, whistleblowers play a crucial role in helping to enforce anti-corruption law.  This principle is also embodied in international conventions.  Articles 12 and 13 of the UN Convention require States Parties to prevent corruption in the private sector and promote the fight against corruption with the business community and civil society.  Unless governments can protect whistleblowers, it is unlikely that they can identify or address systemic causes of corruption.  The United States believes robust whistleblower protection should be an essential part of any good governance initiative in the OSCE, and I was encouraged to hear Ambassador O’Leary indicate that this will be an area of focus under the Irish Chairmanship.   The U.S. Department of Commerce has also been committed to fostering strong private sector integrity as an integral part of promoting good governance in markets worldwide.  Companies are global corporate citizens, and as such, can work collectively and with governments to foster trust, and promote transparency.  I hope that some our work may provide a useful model for the OSCE to consider as it looks to embrace good governance and anti-corruption as a priority for the second dimension, a goal we fully support, and which I am personally committed to supporting. For example, the ITA has championed business ethics and corporate governance reform since the early 1990s, following the fall of the Berlin Wall.  Our Business Ethics Manual has been translated into Chinese, Spanish and Russian and is still one of the most widely used resources on this important topic.  We have partnered with business associations and chambers of commerce to develop collective action and business ethics program in many markets.   Our work on business ethics has grown.  This past year, the ITA has focused on trying to heighten awareness of good governance, transparency and business ethics in sectors of vital importance to many economies – by taking a “sectoral” approach to combating corruption and promoting good business practice, the challenge of dealing with corruption becomes less daunting.  The ethical issues specific to different industries vary greatly – and there is no one-size-fits-all approach to the problem.  Within the G20, for example, the United States, at the initiative of the U.S. Department of Commerce, has taken the lead in calling for the G20 to endorse additional sectoral approaches to fighting corruption, beyond the Extractive Industries Transparency Initiative (EITI).  We have asked G20 governments, for example, to consider supporting the Construction Sector Transparency Initiative (COST) – a new multistakeholder initiative, developed by the World Bank.  COST uses similar approaches to EITI to promote greater transparency in public infrastructure projects and government procurement.  I hope that the OSCE might similarly consider COST and other multistakeholder approaches to promoting transparency under the Irish chairmanship.     Within APEC, the ITA has focused on developing new ethical principles for key sectors within the APEC region.  I am pleased to report that under the APEC SME working group, we have coordinated a project with APEC countries and businesses to develop principles of business ethics in the construction, medical devices and biopharmaceutical sectors.  These voluntary principles are meant to be used by businesses and trade associations – large and small – to guide their ethical interactions with public officials and institutions.   I hope that within the OSCE framework and the EEDIM, we might also consider focusing on business ethics in specific sectors of interest to all of our economies.  I want to close by suggesting some activities to take the theme of good governance and transparency forward.  In addition to encouraging the OSCE to formally endorse the Extractive Industries Transparency Initiative—a move that would send an important signal about this body’s commitment to the principles of good governance and transparency—the U.S. encourages us to explore whether there are additional sectoral initiatives that merit support from the OSCE, including the Construction Sector Transparency Initiative.  The United States Government also strongly supports the Irish Chair’s goal to develop a Statement or Declaration of Transparency Principles to help guide our governments in their future activities. I want to encourage us to consider new models of bilateral cooperation to promote good governance such as the model Mr. Murray just discussed, leading to a public-private initiative in the Russian power generation sector.   We at the U.S. Department of Commerce are working closely with the Center for Black Sea/Caspian Studies at American University to potentially convene a conference in May of next year that would seek to address the challenge of developing mechanisms to ensure good governance and transparency, while also balancing the goals of protecting national security and accelerating economic development faced by the countries of the Caucasus and Central Asia, as they seek to assert their role as a gateway between Europe and Asia.  In addition, the conference will also focus on specific market access challenges to regional integration and economic development in the Caucasus and Central Asia such as transparency in Government procurement and privatization, and trade facilitation challenges, including customs and lack of regional harmonization.  It is our hope that the OSCE will join us for this event – focused on critical areas such as transport and infrastructure – to work on tangible ideas for projects and collaborations in the OSCE region. We look forward with great interest to the 20th Economic and Environmental Forum, where we will delve deeper into all the facets of good governance.  We also thank the Lithuanian Chairman-in-Office for ensuring that their draft Ministerial Council decision on Energy Security incorporates transparency in the energy sector – in our view, considering the vital role that energy plays in modern economic life, there can be no confidence, and thus no security, without energy transparency.  In the year ahead, we envision an even broader focus on transparency principles across the entire spectrum of economic and environmental activities, and will work with all of our colleagues in the OSCE to make that vision a reality. Thank you, Mr. Moderator.

  • Commissioner Camuñez's Opening Statement at the Economic and Environmental Dimension Implementation Meeting

    Economic and Environmental Dimension Implementation Meeting Opening Remarks On behalf of the United States, I would like to thank the Lithuanian Chairman-in-Office, Secretary General Zannier, Coordinator for Economic and Environmental Activities Svilanović, and of course our Austrian hosts for convening this inaugural Economic and Environmental Dimension Implementation Meeting and for providing a warm welcome to Vienna. It is an honor to be here today as head of the U.S. delegation to the OSCE, representing the U.S. Government in my capacity as an Assistant Secretary of Commerce for Market Access and Compliance (MAC) within the International Trade Administration, and as a Commissioner to the U.S. Helsinki Commission. As a Commerce Department Assistant Secretary for Market Access and Compliance, I am responsible for helping lead the effort to open new markets for U.S. companies, identifying and eliminating market access challenges such as non-tariff barriers to trade, and helping to monitor and enforce U.S. trade agreements and commitments. The work of the Environmental and Economic Dimension, especially that which focuses on transparency of markets and good governance, is closely aligned with the work we undertake in the International Trade Administration. I am here today to deliver the message that the U.S. Government is highly committed to making the second dimension even more effective and dynamic, and that we will do our part in ensuring that our economic and environmental commitments receive the same level of attention and scrutiny that those in the political-military and human dimensions currently enjoy. I will try to keep my remarks brief, but I think it is critical that we take a close look at the economic and environmental commitments as they were spelled out in the 2003 Maastricht Strategy. We still see Maastricht as the key blueprint for moving forward on all the  commitments that have come before, and in particular, note a number of areas where we could pursue significant, substantive action over the next few years to achieve measurable progress. Our commitments on economic cooperation have at their core the idea of connectedness to regional and global markets, to trade and investment networks, and to energy and transportation infrastructure, as a way to address emerging economic challenges and threats. In light of the global economic downturn, it is vital that we recommit ourselves to increasing cooperation through a variety of measures, including improving corporate governance and public management, eliminating unnecessary and discriminatory barriers to trade, continuing  to harmonize our regulations and standards where appropriate, taking further steps to combat financial crimes like bribery and money laundering, and increasing confidence through the incorporation of transparency principles in all of our public and private ventures. At the same time, in view of our progress made this year worldwide on  empowering women in the economy, first at the Invest for the Future Conference in Istanbul in January and most recently at the APEC Summit in San Francisco, we believe it is important to recognize the critical connection between women and strong economies, and to remove all barriers that prevent women from full and equal participation in the economy. I would like to focus my comments this morning on the subject of good governance, however. We have committed ourselves time and again to “good governance,” and while progress has been made, much work remains to be done. As stated in the 2003 Maastricht Strategy, achieving good governance will require a comprehensive, long-term strategic approach. In the view of the U.S. Government, good governance is the core theme within the economic and environmental dimension, and we are pleased that next year’s Forum will address the topic in a broad and detailed way. When we speak of good governance, we speak about governments having both the propensity and the competence to manage complex political and economic systems in a fair, fully inclusive, and transparent way. Anti-corruption is part of it, but not the whole picture. It’s about having transparent, clear and predictable legislative and regulatory frameworks that foster efficient and low-cost business formation and development, and most importantly allow and even encourage robust participation in the political and economic spheres by civil society. Let me say a few words about my agency’s past and current work in this area, reserving greater details and the highlights of a new proposal for Session III tomorrow. From 1998-2008, the U.S. Department of Commerce launched a Good Governance Program, focused on partnering with the public and private sectors in the countries of the former Soviet Union and Central-Eastern Europe. This work, focused on promoting sound corporate governance and business ethics, culminated in the publication of a Business Ethics Manual, a Commercial Dispute Resolution Handbook, and a Corporate Governance Manual translated into several languages and disseminated widely throughout the OSCE region. Today, we continue to work on numerous initiatives around the world, within multilateral fora such as APEC and the G20, which involve OSCE members, promoting consensus based principles focused on anticorruption. We have taken our business ethics work and branched out into new regions including Asia and Latin America. Despite a clear understanding of its importance, the lack of good governance and systemic corruption remain some of the single most important market access challenges for companies engaged in trade around the world. This is especially true for small and medium sized enterprises, which are the engine of economic growth and innovation throughout the world. The United States believes that addressing these issues can only lead to greater investment, economic prosperity and security. Over the next three days, we will discuss OSCE support for the Extractive Industries Transparency Initiative (EITI). I am pleased to report that the U.S. Department of Commerce played an important role in supporting the creation of the EITI in its initial phase. The OSCE now has a chance to follow in the steps of the G8 and G20, by endorsing the EITI, and I applaud the governments that have preceded the United States as implementers. The EITI is a great example of how shared commitments towards good governance and transparency in a vital sector to many countries can work and build sustained momentum and engagement between the private sector, governments and civil society. Tomorrow I will share more concrete information about the work that the U.S. Government and my Department have undertaken to promote good governance and to combat corruption. I am pleased to have an expert on business ethics and anti-corruption in the energy sector, as part of the U.S. delegation. Mr. Matthew Murray runs the Center for Business Ethics and Corporate Governance in St. Petersburg, Russia, and he’ll speak to you later about a good governance initiative involving public and private stakeholders in the power generation sector in Russia, which may serve as a model for similar programs in other OSCE countries. I am also pleased to have Kate Watters of Crude Accountability joining the U.S. delegation, who will provide some examples of how transparency is a critical component of enhancing security in the environmental sphere. A month ago, the Economic and Environmental Forum discussed the concept of sustainability and where efforts to promote sustainable practices stand in our region. Those discussions remind us that our commitments on sustainable development encompass a broad spectrum of activities related to efficiency, sound resource management, and the full involvement of all stakeholders in decision-making. Just to cite an example from the Prague Forum, we recognize that in order to further develop economies and markets in such varied areas as the Black Sea region and Central Asia we will need to address several problems: improving the efficiency of border crossings and building construction, tilting the energy mix towards cleaner fuels, harmonizing standards and practices across the region, and, just as critically, ensuring broad involvement of civil society in the decision-making on project proposal, design, and implementation. One thing that sets the OSCE apart from many other organizations addressing the environment is recognition of the clear connection between the environment and security. We recognize that many environmental disasters cannot be predicted or prevented. At the same time, greater transparency – through information sharing and civil society engagement – about possible security risks stemming from the environment will make it possible to prevent or mitigate more disasters, both natural and man-made. We also must recognize that failure to protect the environment is itself a security risk, putting increased pressure on populations facing dwindling resources of clean air and water, arable farmland, and adequate energy. Colleagues, The next three days provide a critical juncture and platform for finding consensus on measures that will improve our implementation of the OSCE commitments in the economic and environmental dimension. The Vilnius Ministerial is only a month and a half away; now is the time to summon the political will to find a way forward. We look forward to building consensus on decisions on energy security, to include good governance and transparency, and we welcome constructive dialogue on additional measures proposed on confidence-building initiatives and sustainable transport. We view these elements, along with sustainable development and protecting the environment, as the cornerstones of the Maastricht Strategy, and will be speaking about these over the next several days. Just a month ago, we found some convergence of opinion on discrete aspects of the second dimension. Let us expand that convergence to the entire dimension as we review our economic and environmental commitments over the next few days, with a view toward substantive deliverables for Vilnius. Thank you, Mr. Moderator.

  • Russia’s Upcoming Elections and the Struggle for Public and Competitive Politics

    Mark Milosch, Chief of Staff of the Commission on Security and Cooperation in Europe, spoke on behalf of Congressman Chris Smith to address Russia’s upcoming Duma or parliamentary elections that were scheduled for early December. An evaluation of the potential outcomes of the coming round of Russian elections was presented, with particular concern that the elections would be significantly less free and fair than those of 2007 and 2008. Witnesses testifying at the briefing – including Leon Aron, Director of Russian Studies for the American Enterprise Institute; Ariel Cohen, Senior Research Fellow for Russian and Eurasian Studies for the Heritage Foundation; and Vladimir Kara-Murza, Member of the Federal Political Council of Solidarity – outlined the political, social, and economic contexts in which the elections would take place, and pointed to the role of Vladimir Putin as an influential actor in the elections.  

  • Spotlight on Bosnia – Obstacles to Progress and Recommendations for the International Response

    This briefing addressed how politics in Bosnia are marked by increased nationalist rhetoric, which sometimes threatens the country’s peace, stability and territorial integrity, and the parties’ unwillingness to work constructively with the representatives of the international community, and the difficulties that have been faces since the October 2010 elections. Possible sources of this political impasse and possible course of action for the international community were also examined. Witnesses testifying at the briefing – including Clifford Bond, former U.S. Ambassador to Bosnia-Herzegovina and Vice President of the American University in Bosnia-Herzegovina; Kurt Bassuener, Senior Associate of the Democratization Policy Council; and Nida Gelazis, Senior Associate of European Studies Program at the Woodrow Wilson International Center for Scholars – provided several recommendations for improving the political situation in Bosnia, including a strong EU presence in the country, an emphasis on economic improvements, and basic reforms to improve the functionality of the Dayton state.

  • Ukraine’s Democratic Reversals

    Mr. Speaker, I rise to express my deep concern about the deterioration of democracy in Ukraine over the past 16 months, and the current Ukrainian leadership's use of politically motivated selective prosecution to harass high-ranking officials from the previous government. The country's once-promising democratic future is in jeopardy. While we face many serious challenges in every region of the world today, nonetheless it is imperative that Washington focus attention on what is happening in Ukraine--especially given that country's vital role in the region. As a long-time member and current Chairman of the Helsinki Commission, I have followed and spoken out on developments in Ukraine since the early 1980's, when the rights of the Ukrainian people were completely denied and any brave soul who advocated for freedom was brutally persecuted. Mr. Speaker, for nearly two decades, independent Ukraine has been moving away from its communist past while establishing itself as an important partner to the United States. Both the executive branch and Congress, on a bipartisan basis, have provided strong political support and concrete assistance for Ukraine's independence and facilitated Ukraine's post-Communist transition. In the wake of the 2004 Orange Revolution, Ukraine even became a beacon of hope for other post-Soviet countries, earning the designation of "Free" from Freedom House--the only country among the 12 non-Baltic former Soviet republics to earn such a ranking. And while many of the promises of that revolution have sadly gone unfulfilled, one of its successes had been Ukraine's rise from "Partly Free" to "Free", reflecting genuine improvements in human rights and democratic practices. Under President Viktor Yanukovych, elected in February 2010, this promising legacy may vanish. Today we see backsliding on many fronts, which threatens to return Ukraine to authoritarianism and jeopardizes its independence from Russia. Among the most worrisome of these trends are: consolidation of power in the presidency which has weakened checks and balances; backpedaling with respect to freedom of expression and assembly; various forms of pressure on the media and civil society groups; attempts to curtail academic freedom and that of institutions and activists who peacefully promote the Ukrainian national identity; and seriously flawed local elections. Meanwhile, endemic corruption--arguably the greatest and most persistent threat to Ukrainian democracy and sovereignty--as well as the weak rule of law and the lack of an independent judiciary, which were not seriously addressed by the Orange governments, have only become more pronounced under the current regime. Moreover, in recent months, we have seen intensified pressure on opposition leaders, even selective prosecutions of high-ranking members of the previous government. The vast majority of observers both within and outside Ukraine see these cases, which have targeted former Prime Minister Yuliya Tymoshenko and former Interior Minister Yuriy Lutsenko among others, as politically motivated acts of revenge which aim to remove possible contenders from the political scene, especially in the run-up to next year's parliamentary elections. Mr. Speaker, the Helsinki Commission has closely monitored these troubling trends as have the U.S., other Western governments, and the European Parliament and Council of Europe. Unfortunately, the Ukrainian authorities have largely downplayed concerns voiced by the European Union, which they aspire to join someday, and by the United States, with which Kyiv professes to seek better relations. The U.S. also desires enhanced bilateral ties. Yet, moving in the wrong direction on human rights, democracy and the rule of law decidedly works against strengthening U.S.-Ukrainian relations. More importantly, the erosion of hard-won democratic freedoms weakens Ukraine's independence and harms the people of Ukraine, who have endured a painful history as a captive nation over the course of the last century. Indeed, as Ukraine this week marks the 70th anniversary of the brutal Nazi invasion, we mourn the loss of life and untold human suffering of that horrific war. Against this backdrop of devastation wreaked by totalitarian regimes in the 20th century, Ukrainians deserve to have the promise of democracy made possible by their independence fully realized. A few days ago, President Yanukovych said that he would take into account the criticisms in Freedom House's recent "Sounding the Alarm: Protecting Democracy in Ukraine" report. His promise is encouraging, but words alone are not enough. All friends of Ukraine should measure his words by actual and meaningful changes that improve the state of democracy and human rights for the Ukrainian people.

  • 2050: Implications of Demographic Trends in the OSCE Region

    The hearing focused on the implications of current demographic trends in the expansive OSCE region through the prism of the security, economic and human dimensions.  Most of the OSCE’s 56 participating states are experiencing varying stages of demographic decline, marked by diminishing and rapidly aging populations. Such patterns were identifying as likely to have significant social, economic and security consequences for countries throughout the region, including the United States. Witnesses testifying at this hearing – including Jack A. Goldstone, Director of the Center for Global Policy at George Mason University; Nicholas Eberstadt, Henry Wendt Scholar in Political Economy of the American Enterprise Institute; Richard Jackson, Director and Senior Fellow of the Global Aging Initiative at the Center for Strategic and International Studies; and Steven W. Mosher, President of the Population Research Institute – addressed issues related to the demographic trends in the OSCE region, such as shrinking workforces in a growing number of participating States that are expected to become increasingly dependent upon foreign workers in the coming decades. A concern that these factors could contribute to mounting social tensions as demonstrated by clashes in some participating States in recent years was evident.

  • Local Elections and Political Instability in Albania

    Mark Milosch and Bob Hand addressed the Albania’s progress as a democracy and the implications of its upcoming local elections. They highlighted the polarization of Albania’s political system and the little respect that exists for the electoral system, as seen by the violence that broke out during Albania’s parliamentary elections earlier that year. Panelists - Jonathan Stonestreet, Robert Benjamin, and Januzs Mugajski - discussed Albania’s long recovery from the Yugoslav conflicts and its status as a NATO ally. They emphasized the importance of political stability in Albania for its successful accession into the European Union and general European integration.   

  • Lithuania’s Leadership of the OSCE

    Rep. Chris Smith (NJ-04) and other legislators welcomed Lithuania’s as a member of NATO, the EU, and OSCE Chair-in-Office. The commissioners commended Lithuania on its remarkable work in democratically reforms in its own country. However, the attendees of the hearing expressed their concerns over Lithuania’s neighbor, Belarus, Europe’s “last dictatorship.” Legislators also reflected on the trajectories of other Newly Independent States.

  • Belarusian Regime Resolutely Dashes Any Hopes for Democratic Liberalization

    By Orest Deychakiwsky, Ronald McNamara, and Josh Shapiro Commission Staff Hints of any democratic progress in Belarus came to a screeching halt on December 19, 2010, in the aftermath of the country’s most recent electoral exercise, the latest in a long line of fundamentally flawed elections. The brutal and bloody election-night crackdown against political opposition supporters, including mass arrests of demonstrators, as well as candidates, who challenged the 16-year rule of Alexander Lukashenka, was unprecedented. Even the prospects of inducements from the EU and others failed to restrain a regime bent on maintaining power. The strong-arm tactics employed on election night, and since, confirm the nature of Lukashenka’s rule – one that perpetuates a pervasive, albeit subtle, climate of fear to squelch dissent. The OSCE Election Observation Mission (EOM) post-election statement, issued on December 20, concluded that “Belarus still has a considerable way to go in meeting its OSCE commitments, although some specific improvements were made. Election night was marred by detentions of most presidential candidates, and hundreds of activists, journalists and civil society representatives.” The Helsinki Commission, the U.S. and European governments, as well as Western NGOs, condemned the regime’s violent campaign of repression and called for the release of jailed opposition presidential candidates, hundreds of peaceful protestors, and some two dozen journalists covering the demonstrations. Moreover, cyber police shut down numerous internet and social networking sites. Repressive actions have continued, including raids on opposition party offices, NGOs, individual residences of activists and journalists, and independent media outlets by police and the KGB. Displaying his displeasure with the OSCE’s negative assessment of the elections, Lukashenka refused to extend the expiring mandate of the organization’s office in Minsk, effectively ousting the OSCE. The only other leader to order such an expulsion was Slobodan Milosevic. The development comes as neighboring Lithuania assumes the chairmanship of the Vienna-based 56-nation organization. Helsinki Commission staff were part of the OSCE Parliamentary Assembly’s contingent to the EOM, headed by Tony Lloyd, a member of the British Parliament. We observed the balloting and vote count in Minsk and Polotsk, a historic city located 120 miles north of the capital. Our election-day observations were consistent with those of the 450 other OSCE observers representing 44 participating States deployed throughout the country. The voting process was assessed as ‘good’ or ‘very good’ in the vast majority of observed polling stations, while the critical vote count was judged as ‘bad’ or ‘very bad’ in nearly half of the precincts observed, giving fresh currency to an adage attributed to Soviet leader Joseph Stalin: “It is not the votes that count, but who counts the votes.” The vote count in Novopolotsk was decidedly non-transparent as both international and domestic observers (virtually all of the latter appeared to be so-called GONGOs, or government organized non-governmental organizations) were kept far enough away from the table on which the votes were being counted, making it impossible to see how the ballots were marked. When queried several times by Commission staff as to the reason, the precinct chairman politely insisted that it was a decision that he and other members of the election commission had made on the pretext of preventing observers from “interfering” in the counting process. Meanwhile, at a polling station in Minsk, staff were allowed closer access to the vote count, though were prevented from seeing what was written on each ballot. With an ambiguous way of counting votes, those in attendance had little clue as to how the chairman of the election commission counted ballots. An outspoken domestic observer was subsequently voted out of the polling station by election commissioners because he was a “nuisance to the vote count.” While the run-up to the election had shown some procedural improvements and an easing of restrictions on normal political activity, the electoral machinery at every level remained firmly under the regime’s control. There were greater opportunities than in previous elections for candidates to speak on live television, and candidates were for the most part able to more freely meet with voters. This, however, did not translate into a level playing field for all candidates as the state-controlled media disproportionately favored Lukashenka. Very telling was the fact that only 0.26 percent of all precinct electoral commission members and 0.70 percent of territorial election commission members were from opposition political parties. Clearly, even the limited improvements did not lead to a free and fair outcome, with only the margin of Lukashenka’s victory to be announced. A December 20 statement issued by the White House, citing the critical OSCE assessment, stressed: “The United States cannot accept as legitimate the results of the presidential election announced by the Belarusian Central Election Commission” issued earlier the day. Even regime-sponsored exit polls contradicted the official CEC results, giving a lower percentage of the vote to Lukashenka and higher percentages to Andrei Sannikau and Uladzimir Nyaklyaeu, the leading opposition candidates who were victims of violence by the authorities and remain incarcerated along with several other contenders. Independent pollsters and analysts also gave Lukashenka far less of the vote than the nearly 80 percent he officially garnered, with some giving him less than the 50 percent of votes needed to avoid a second round against a single opposition candidate. Given the unconscionable crackdown and fraudulent elections, hopes and expectations for even limited progress with respect to democracy and human rights have been thwarted. Through his repressive and undemocratic actions, Lukashenka has shown that he will not tolerate meaningful reform and that he will do whatever it takes to maintain absolute power. This overarching imperative clearly trumps improved relations with the United States and especially the European Union which were in the offing prior to election day, and could have resulted in badly needed financial assistance. In a rambling two-and-a-half hour televised press conference the day after the election, Lukashenka belittled what he termed “mindless democracy” while boldly declaring his lack of fear. Despite his bravado, clearly the Belarusian leader fears the prospect of submitting to a vote in a genuinely free and fair electoral contest. Against the backdrop of a decade of rigged presidential and parliamentary elections and an illegal referendum, Belarus is regrettably no closer to restoring legitimacy to executive and legislative structures, and the prospects for meaningful change appear remote. To the detriment of the Belarusian people, the Lukashenka regime has, yet again, chosen the path of self-imposed isolation.

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