UNUnited Nations Economic Commission for Europe

Press Releases 1999

[Index]      

5 February 1999

ECE/TRADE/99/2

SECI's FIRST TWO YEARS: POSITIVE PROGRESS IN THE BALKANS

Eleven southeast European countries meeting in Geneva this week agreed unanimously to renew their efforts to improve the region's infrastructure and dismantle excessive bureaucracy that encourages corruption and discourages private investment.

SECI, the Southeast European Cooperative Initiative, is the framework in which countries from and around the former Yugoslavia are working together. Despite past and present troubles, this intergovernmental initiative has been making steady progress by setting reasonable short-term objectives and focusing on results. Meeting at the United Nations Economic Commission for Europe (UN/ECE), the Initiative's participating States and supporting institutions declared SECI's first two years a success and agreed to continue the Initiative.

SECI was launched in December 1996 based on an agreement between the United States and the European Union, brokered by American Ambassador Richard Schifter. Erhard Busek, former Vice Chancellor of Austria, was named SECI Coordinator. UN Economic Commission for Europe (UN/ECE), headed by Executive Secretary Yves Berthelot provides technical assistance to SECI. The "troika" formed by these three individuals has served as the catalyst to SECI's activities.

The SECI participating States are Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Greece, Hungary, the Republic of Moldova, Romania, Slovenia, the former Yugoslav Republic of Macedonia, and Turkey. An invitation to participate in SECI was initially extended to the Federal Republic of Yugoslavia but withdrawn in light of events in the country. SECI supporting States include Austria, Italy, the Russian Federation, Switzerland and the United States of America.

Operating on a modest budget, Dr. Busek characterised SECI as "help for self-help." While the project activities may lead to proposals for financing from international financial institutions, SECI's real objective is to develop conditions that will make southeast Europe more attractive to private investors. "There simply isn't enough public money to pay for all of the problems that need to be addressed in the region," according to Ambassador Schifter.

Each of the eight projects undertaken by SECI is hosted by one of the participating States. One project hosted by Greece dealt with delays at border crossings. The project group developed a USD 70 million proposal to the World Bank that has led to the Bank adopting a new regional approach to lending. Ten of the eleven countries have established "PRO Committees," with representatives of public and private sector institutions discussing how to simplify procedures at the borders. A memorandum of understanding has also been initialled that will eliminate quotas on goods-moving vehicles, harmonise road tariffs and encourage the use of "green lorries" with reduced emissions.

Other SECI projects deal with issues in water pollution, energy efficiency, cooperation among securities markets and steps to stimulate small and medium-sized business development.

The UN/ECE has enabled SECI to avoid creating additional administrative overhead, while utilising a forum in which all SECI participating and supporting States are equal members. The European Commission, the World Bank and the European Bank for Reconstruction and Development are among the international institutions supporting SECI's project activities.

Executive Secretary Berthelot noted that "the SECI projects bring countries around the table to discuss address issues that are of regional interest and are results oriented." The projects also aim to achieve these results in a relatively short (1-2 years) period of time.

The SECI National Coordinator for Hungary, Ambassador Istvan Balogh, summarized the underlying spirit of SECI when he said, "All the countries of the region should be aware of their own share of responsibility in creating the necessary basic conditions for economic cooperation, the way to a better, more prosperous future."

For further information contact:

Mr. Will Keenan
Regional Advisor
United Nations Economic Commission for Europe (UN/ECE)
Palais des Nations
CH - 1211 Geneva 10, Switzerland
Tel: +41-22 917 2793
Fax: +41-22 917 0037
E-mail: [email protected]
Web site: http://www.unece.org/seci/