Balkan economies devastated: World Bank report

The first authoritative report on the economic effects of the war in Kosovo - issued by the World Bank and the IMF yesterday - says the NATO bombing campaign is having a catastrophic effect on the economies of the Balkan region, decimating growth, destroying commerce and placing a huge burden on the budgets of neighboring states, reports the Guardian (p.2). Entitled Economic Consequences of the Kosovo Crisis, the document paints a devastating picture of the impact on the countries surrounding the war zone: Albania, Croatia, Macedonia, Bulgaria, Romania and Bosnia. It reports that with the possible exception of Romania, more than 5 percent of GDP will be wiped out this year, plunging the countries deep into recession and raising unemployment at a time when they are having to absorb 600,000 refugees. A meeting has been called for May 5 to look at Macedonia's needs, with the Bank preparing an early credit of $50 million and a series of grants and loans are being put together.

Agence France Presse adds that the report also estimated that the six countries would need $1.82 billion in extra economic support this year as a result of the crisis and its effect, particularly on trade and transport in the region. World Bank Vice-President for Europe and Central Asia Johannes Linn is cited as saying this was a "low figure," adding that the actual figure was likely to be higher.

Il Sole 24 Ore (Italy,p.6) cites Linn as saying these costs and the problem of the Yugoslavia's integration into the international economic consent need to be faced to reach a stable solution to the Balkans situation.

Separately, AFP cites World Bank President James Wolfensohn as saying yesterday that he wants the Bank and the EU to open a joint office to coordinate economic aid for countries affected by the Kosovo crisis "on the ground" within the month. Wolfensohn did not say exactly where the office would be located, says the story.

The New York Times (p.A7) quotes Wolfensohn as saying that the longer the bombing lasts in Yugoslavia, the greater the economic damage to surrounding countries like Macedonia, Bosnia and Herzegovina, Albania and Romania, which are suffering trade and investment losses.

Also, Macedonian Finance Minister Boris Stojmenov said yesterday that the country faces economic and political collapse unless it receives at least $485 million to offset losses caused by the war in Kosovo, Reuters reports.

Les Echos (p.6), La Tribune (p.3), El Mundo (p.3), Los Angeles Times (p.A5) and Hufvudstadsbladet (Finland) also report.