ECONOMIC DEVELOPMENT

1. CEFTA 2006

The Central European Free Trade Agreement 2006 (CEFTA) fully liberalizes trade in industrial products and provides for the gradual liberalization of trade in agricultural products among its members: Albania, Bosnia and Herzegovina, Croatia, The Former Yugoslav Republic of Macedonia, Moldova, Montenegro, Serbia, and UNMIK/Kosovo. This modern free trade agreement is fully in line with the requirements of the World Trade Organization (WTO) and the EU acquis, and includes provisions on the protection of intellectual property, anti-dumping, the liberalization of government procurement markets, the protection of competition, etc. The CEFTA came into force in November 2007.

The RCC has supported the establishment of the CEFTA Secretariat in Brussels, and sits on CEFTA’s Steering Committee. In 2008, the RCC played a key mediating role when a political issue threatened delays in the establishment of the CEFTA Secretariat. The RCC will continue to play the role of political facilitator when the need should arise. The RCC has also assisted in coordinating donor support to the CEFTA Secretariat. In the future, the RCC intends to promote CEFTA’s cooperation with and involvement in the activities of the Investment Compact for South East Europe and the Investment Committee for South East Europe – a form of collaboration already endorsed by several ministerial declarations.

2. Investment Compact for South East Europe

The Investment Compact (IC) for South East Europe (SEE) is an OECD programme designed to improve the region’s investment climate and encourage the development of its private sector. The IC provides the countries of SEE with analytical tools assessing the strengths and shortcomings of their investment and business enabling environment, and offers guidelines for their further improvement. The IC also conducts periodic topical studies on issues relevant for SEE’s future economic development. Its members include: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, The Former Yugoslav Republic of Macedonia, Moldova, Montenegro, Romania and Serbia.

The IC has two flagship publications: Investment Reform Index (IRI) and the Small and Medium Enterprise (SME) Policy Index, which examine, in some detail, key policy issues pertaining to investment facilitation and SME development in individual countries of SEE. 

Most recently, the IC produced the study “Defining and Strengthening Sector Specific Sources of Competitiveness in the Western Balkans – Recommendation for a Regional Investment Strategy” producing indepth analysis and recommendations on the subject for four of SEE’s most promising sectors: automotive parts, textiles, ICT, and business process outsourcing.  

The RCC has been actively supporting the Investment Compact in promoting its work in the region. The preparation of the IRI 2009 was thus launched at the RCC Secretariat in 2008, as was the aforementioned competitiveness study for which the RCC secured significant media attention.  The RCC has also supported the IC by carrying out research that will feed into the development of a Regional Investment Strategy. 

3. Business Advisory Council

The Business Advisory Council for Southeast Europe (BAC) is a private sector advisory body composed of some 40 businessmen from 20 countries – both from the region and beyond – which strives to build effective partnerships between government administrations and the private sector in order to improve the business climate in SEE. Meeting at its own initiative, the BAC advises the RCC, the European Commission, international financial institutions, as well as the governments of donor and beneficiary countries on matters of private business in South East Europe, providing policy guidance and requesting their intervention where necessary. The BAC also acts as a conduit to its respective business communities.

The RCC supports the work of BAC by regularly updating BAC on the region’s political context as well as familiarizing BAC with the region’s economic development priorities. This helps BAC to focus its efforts and maximize the utility of its country missions. In 2008, the RCC initiated a dialogue with BAC on how to go about promoting the concept of Public Private Partnership (PPP) in SEE and a strategy is currently under preparation.

SOCIAL DEVELOPMENT

1. Bucharest Employment Process

The Bucharest Declaration adopted at the SEE Ministerial Conference on Employment held in Bucharest on 30-31 October 2003, called for regional cooperation in addressing labor market challenges so as to achieve major improvements in national employment policies. The International Labour Organization and the Council of Europe have given guidance and support to this effort through reviewing national employment policies in close cooperation with the social partners and labour market institutions, providing policy recommendations and assisting in their implementation. The Ministers of Labour of the countries approve and update the objectives of this cooperation and the activities are designed and supervised by the Permanent High-Level Committee (now the Employment and Social Policy Network), composed of Directors General of Employment and Directors of Employment Services.

A series of country reviews of employment policy are the major outcome of this process. They are used for strengthening the labour market institutions and making employment and labour market policies more coherent and effective within the framework of an integrated policy approach. The review process intends to contribute towards promoting decent and productive employment for women and men in the RCC members while converging towards the guidelines of the European Employment Strategy.

The RCC has inherited the Stability Pact’s place on the Employment and Social Policy Network meetings. Its key task is to lobby for implementation and play an active role in monitoring of the Montenegro Conclusions, a follow-up agreement adopted by the countries of SEE in 2007 that reaffirms the region’s commitment to full and productive employment, workers’ rights at work, social protection and continued social dialogue.

2. SEE Health Network

The SEE Health Network is a political forum set up to coordinate, implement and evaluate the commitments of the Dubrovnik Pledge and its regional projects for developing health policy and services. The Network was founded in Sofia, Bulgaria, in April 2001, by the signatories of the Dubrovnik Pledge: Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Romania, Serbia and Montenegro, and The Former Yugoslav Republic of Macedonia. At its fourth meeting in May 2002, the Network was further strengthened when joined by Moldova and three neighbouring and donor countries: Greece, Hungary and Slovenia.

The Network comprises both representatives from the ministries of health of its member countries and representatives of intergovernmental organizations. The SEE Health Network decided unanimously, during its 21st meeting in Bucharest (Romania) held on 25-27 June 2009, to select Skopje as the new location of the seat of the SEE Health Network Secretariat. Previously the secretariat was jointly run by the Council of Europe and the World Health Organization (WHO) Regional Office for Europe.

The projects developed by the Network are coordinated by regional project managers and implemented by country project managers. In addition, technical advisers and other experts are connected to each project. This means that more than 150 people are involved in the Network at different political and technical levels. A Memorandum of Understanding on the future of SEE Health Network has also been signed by the countries of the region. This includes the establishment of the regional health development centres. The SEE Health Network has approved the proposals from Croatia, Romania and The Former Yugoslav Republic of Macedonia on establishing Regional Health Development Centres on Organ and Tissue Transplantation, Blood Transfusion, and, of Public Health Services respectively. Both the SEE Health Network Secretariat and the regional health development centres will become operational on 1 January 2010.

The RCC participates in the network meetings and has provided continued political support and promotion. It will continue to play a coordination role and provide links with other initiatives that are of relevance to the health sector. It will also try to match donor funding with identified project needs.

3. Social dialogue initiatives

Structured social dialogue between workers and employers’ networks is necessary for the needs of today’s professional labor market.

The SEE Trade Union Forum brings together the heads of the national trade unions from the region to discuss labor market issues and promote the social dimension of the economic reforms in the region. It has actively worked to strengthen the organizational capacities of SEE trade unions, as well to support the institutionalization of a social dialogue with employers’ organizations.

The Adriatic Region Employers’ Centre was created under the auspices of the International Organisation of Employers. The purpose of the Centre is to promote projects, cooperation and exchange of views and knowledge between partners in the region.

The RCC promotes the concept of social dialogue by providing both political and coordination support to the SEE Trade Union Forum in Zagreb. It maintains close contacts with interested parties in order to ensure expert input and review of regional social dialogue. In the future, the RCC aims to promote the capacity building of social partners’ institutional structures through training and twinning programs among regional employers’ and employees’ organizations.

OVERARCHING INITIATIVE

Electronic Southeast Europe

The Electronic Southeast Europe Initiative (eSEE) aims to integrate SEE countries into the global, knowledge-based economy by supporting the development of ICT and Information Society on a regional level. Meeting on a quarterly basis under the chairmanship of an individual country, eSEE tracks the implementation of the so-called eSEE Agenda Plus – a comprehensive action plan based on the EU model which details benchmarks on the path to developing a sophisticated information society. The eSEE Agenda Plus was adopted by its members (Albania, Bosnia and Herzegovina, Croatia, The Former Yugoslav Republic of Macedonia, Moldova, Montenegro, Romania, Serbia, and UNMIK/Kosovo) at a Ministerial Conference held in Sarajevo in October 2007.

The RCC hosted the last annual meeting of the eSEE Initiative in 2008, working together with the UNDP to ensure a focused agenda based on the most urgent priorities of the eSEE Agenda Plus. The RCC has also facilitated contacts between eSEE and the newly established Centre for eGovernance Development (CeGD) which is to provide support to the implementation of the eSEE Agenda Plus. Moreover, the RCC is represented on both the Management and Supervisory Boards of the Centre, and has supported the Centre in obtaining donor funds as well as in developing its operational procedures. (The latest edition of the eSEE Initiative Newsletter is available HERE.)