Geneva, 5 May 1999

RECOVERY IN SOUTHEAST EUROPE AFTER A SETTLEMENT OF THE

CONFLICT IN YUGOSLAVIA

Elements for a contribution by the United Nations

Economic Commission for Europe (UN/ECE)

 In view of the gravity of the conflict in Yugoslavia, immediate action to prevent dramatic deterioration in the most affected countries has to be taken and preparations for the post-conflict situation for the region have to be launched now.

In the economic field, immediate action relates to compensating countries for the cost of refugees, the loss of exports and the consequences of not being able to use the Danube for transportation purposes (see Annex I).

International institutions and organizations have already embarked on the process of preparing post-conflict stabilization and reconstruction programmes. The ECE mandate, as well as its expertise and experience, make the Commission prepared to participate actively in this most challenging and important process of building foundations for the future inclusion of the entire region into the European order.

The response to the situation at the end of the conflict in Yugoslavia has to be both comprehensive and coordinated to address the complexity of the problem and to avoid divergences in the approach of the international community. It has to address the problems of countries directly and indirectly affected by the military actions, and to contribute to the regional development, openness and integration.

In the economic and social fields, there are at least three broad goals:

• To set a comprehensive recovery programme which takes into account the actual situation in the whole region aimed at restoring growth and the confidence of investors;

• To rebuild the infrastructures and speed up institutional and structural reforms;
• To re-establish good neighbourly relations in Southeast Europe.

The Economic Commission for Europe can contribute to these objectives.

• ECE could assist in designing programmes of an institutional and structural character for Southeast Europe. It has to be kept in mind that, with the exception of Hungary, the economic and social situation was already poor before the conflict and was only aggravated by it, even if sometimes dramatically. Any programme should therefore address not only the damage created by the conflict, but also the overall reform process (see Annex I). The expertise of the team producing the Economic Survey of Europe could be used in designing such programmes.

• ECE, building on its pan-European conventions, norms and standards, could help:

- in the establishment of the institutions of a market economy

- in the reconstruction of property rights and land registration which have been destroyed in Kosovo. The experts of the Meeting of Officials on Land Administration (MOLA) would be instrumental in doing this.

 

• ECE could increase its substantive contribution to a strengthened SECI. SECI, Southeast European Cooperative Initiative, which is especially designed to re-establish confidence and good neighbourly relations in the region, was launched by the United States and has now received the full support of the EU and Russia. It has already shown tangible results, e.g. simplification of border crossing procedures, signature of a Memorandum of Understanding on 29 April 1999, free circulation of lorries, feasibility studies on interconnection of gas and electricity networks. To be adapted to a changed situation, it would have to include Yugoslavia and dispose of more financial resources.

For further information, please contact:

 Information Unit

United Nations Economic Commission for Europe (UN/ECE)

Palais des Nations, Room 356

CH - 1211 Geneva 10, Switzerland

Tel: +41 22 917 44 44

Fax: +41 22 917 05 05

E-mail: info.ece@unece.org

Website: http://www.unece.org/