Kosovo is administrated by the international community through UNMIK. UNMIK represents Kosovo within the Stability Pact framework and is partaking in its activities. With the formation of a government (PISG), an enhanced Kosovar participation in the Stability Pact’s working structures has developed, also in those areas which are in the competences of PISG. The constituent components of the international administration of Kosovo, the UN, the OSCE and the EU Commission, are also participants of the Stability Pact.
Most of the funding for Kosovo is raised directly and not by means of regional projects involving two or more countries, as is typical for the Pact. This was the case at the Kosovo Funding Conferences in Brussels (25/26 February 2001 & 5 November 2002). Therefore, the financial support going to Kosovo under the regional umbrella of the Stability Pact is much smaller than the direct funding.
Below are some of the activities, listed by Working Table:
Working Table I: Democratisation and Human Rights
Stability Pact projects are regional in nature. Therefore, Kosovo is one of several beneficiaries of the following projects. Financial commitments under Working Table I are approx. € 20 mn for the region as a whole.
Gender Task Force
The project “Women’s Leadership for Democratic Social Change in the Yugoslav Successor States”, for which € 500'000 have been committed, supports women seeking economic and political leadership roles in a democratic Kosovo. In Kosovo, a sub-regional – (Serbia, Macedonia, Montenegro and Kosovo) women’s Peace Project, brought together, Albanian, Serbian, Roma and other ethnic minority women in an effort to discuss how politics of conflicts and ethnic exclusions could be replaced by joint work on small local community development projects (2002). In 2003, Kosovo women local politicians are participating in the implementation of the regional “Women Can Do It” project. These projects aim at further political empowerment and networking of women, across nationalities and political affiliations.
Human Rights and National Minorities
In total 12 projects for a total of € 11 mn were carried out in SEE.
Main projects are Non-discrimination Review, Acceptance and Implementation of Existing International standards and Bilateral Cooperation Agreements on Minorities.
Major funding went to the initiative “Assessing, Advocating for and Implementing Human Rights in the Balkans and Strengthening the Balkan Human Rights networks: A co-operative Program with Local Human Rights NGOs”, endowed with € 1'042'248.
Ombudsman
The international community has committed € 270'000 for the support of several ombudsman institutions in the region, including Kosovo. As an effective non-judicial means of human rights protection, the ombudsman is a key institution for the promotion of accountability and good governance.
Education and Youth
There are 9 projects with Kosovo benefiting in a regional context, totalling € 5'911'600.
Main funding went to “Contributing to Stability in SEE through Strengthening Local and Regional Structures of Adult Learning” (€ 3'372'000, committed by Germany for period December 2000 to 2003). Other projects include the European School, Youth and Community Network (€ 328'000 committed by Austria).
Media
In 2002, 11 media projects, for a total of approximately € 3 mn, have been launched in the region in order to develop free, independent and pluralistic media. In addition and specifically related to Kosovo is the European Centre for Broadcast Media, which is a non-partisan partnership framework for the transfer of professional journalism training over an initial period of 3 years (€ 1'989'596).
Working Table II: Economic Reconstruction
On free trade:
Negotiations for a network of 21 bilateral free trade agreements amongst seven countries were completed in February 2003. The current focus is on ensuring full implementation of these agreements (ratification, technical implementation) in line with the Stability Pact Memorandum of Understanding on Trade signed by the seven in June 2001. UNMIK has launched trade negotiations with neighbouring countries against this background.
The Pact has integrated UNMIK/Kosovo into this regional trade liberalisation initiative and is assisting Kosovo’s institutional capacity to deal with trade policy. UNMIK and PISG officials are participating in the regular meetings of the Stability Pact's Trade Working Group and in a number of the training seminars and workshops that take place under the auspices of the Trade Working Group. The Trade Working Group comprising senior trade officials from the SEE countries, international organisations (European Commission, World Bank, WTO) and third countries (France, Germany, Switzerland, UK, USA) is a unique forum. It brings together a potent combination of regional and international resources, experience and expertise that has greatly facilitated trade liberalisation in the region.
On infrastructure:
The Stability Pact focuses on regional infrastructure development, through the Infrastructure Steering Group (comprising World Bank, EU Commission, EBRD, EIB, Council of Europe Development Bank COB). Under the credit rules of these Financial Institutions, Kosovo does not currently qualify for loans and so far has depended on grants. The Stability Pact has consistently lobbied for creative mechanisms to include UNMIK in lending programs. The EU Council has requested the EIB to determine if a framework agreement is possible with Kosovo so that it can avail of EIB credits. Kosovo is also part of the current, EU Commission funded, study on future regional infrastructure investments (REBIS = Regional Balkan Infrastructure Study) due to be completed mid 2003.
Ongoing construction in FYR Macedonia and in Kosovo aimed at improving facilities at Blace border crossing with a financial volume of € 7 mn benefits Kosovo. This project is nearing completion.
Earlier, the completion of the US$ 33,30 mn infrastructure project “Urgent Road Rehabilitation” in November 2000 has contributed to the reconstruction and economic development of Kosovo, by improving the main road network.
On electricity:
Trading of electricity in SEE is underdeveloped. This issue is addressed by the Stability Pact’ and EU Commission’s joint Regional Electricity Market initiative. UNMIK participates in the initiative and signed the “Memorandum of Understanding on Regional Electricity Market in South East Europe and its integration into the European Union Internal Electricity Market” in November 2002 in Athens. The integrated SEE Regional Electricity Market is based on the principles set out in the EU Electricity Directive and will be established by 2005. It ensures the integration of SEE into the European Union’s Internal Electricity Market. The regional approach can lead to significant savings in production investments and establishes an electricity market along EU lines which leads to a more secure supply and lower costs. Kosovo’s power sector has received substantial financial aid. To meet the levels of non-discrimination, effective competition and of establishing an efficient power market, considerable efforts in terms of investments and training are still needed region wide. The Stability Pact is coordinating activities amongst donors, which have declared their firm intention to support the SEE reform process in this sector, if it is in line with the EU framework.
What is the Stability Pact?
The Stability Pact is a political initiative to encourage and strengthen co-operation between the countries of South Eastern Europe as well as to streamline existing efforts to assist South Eastern Europe’s political, economic and security integration into Europe. The Pact does not implement the projects that were placed under its auspices at two Regional Conferences (March 2000 and October 2001) but is an instrument to co-ordinate and facilitate the implementation of the projects of all its partners.
Its activities are guided by the core principles of the Stability Pact, namely that they contribute to regional cooperation, expedite integration into European structures and secure the region's involvement in relevant international organisations. Priority is given to initiatives where the SP brings clear added value.
With over 40 participating countries, the Stability Pact is complementary to the European Union's Stabilisation and Association Process, as well as to the Accession Process, and thus provides a bridge between the Western Balkans, the SEE candidate countries and Moldova. Stability Pact partners are the countries of South Eastern Europe and neighbouring countries, the European Commission, NATO and OSCE, the International Financial Institutions, the member states of the European Union, the United States, Russia, Japan, Canada, Norway, Switzerland, the Czech Republic, Poland and Slovakia.
Under the Regional Table, its steering body, the Stability Pact has 3 Working Tables:
Ø Working Table I is dealing with Democratisation & Human Rights;
Ø Working Table II with Economic Reconstruction, Development and Co-operation;
Ø Working Table III with Security (one Sub-table Security and Defence, one Sub-table Justice and Home Affairs).
Economic Policy Roundtable — Pristina 29 April 2003
Presentation by Dr Erhard Busek, Special Co-ordinator
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