UNUnited Nations Economic Commission for Europe

Press Release

[Index]      

The UNECE/OSCE Colloquium:  
 
Role of the Economic Dimension in Conflict Prevention in Europe

 Geneva, 23 November 2001    

The Villars Colloquium on the Role of the Economic Dimension in Conflict Prevention in Europe, jointly organized by the United Nations Economic Commission for Europe (UNECE) and the Organisation for Security and Co-operation in Europe (OSCE), has just ended, bringing the cooperation between UNECE and OSCE to a new level.  More than 50 experts from the North Atlantic Treaty Organisation (NATO), the European Union (EU), the Department of Political Affairs of the UN Secretariat, the private sector, and governmental institutions of member States have held a forthright informal discussion on issues of great concern to all member States of the UNECE region.  A two-day elaboration resulted in important findings and concrete recommendations on further work and joint activities. 

       Most participants shared the view that the region had failed to preserve peace and security for all its inhabitants, and that conflict-inducing factors, especially those of economic origin, had proliferated in some countries and sub-regions, causing frictions and clashes along ethnic, social and national lines.    

      Among the economic factors responsible for recent conflicts in the region, complexities and social consequences of the post-socialist transformation were identified as the most important ones.  The latter were further aggravated in some instances by the collapse of states, augmenting the burden of structural problems inherited from the past.  Resulting fragmentation in its turn had accelerated impoverishment due to a reduced scale of economy and, hence, of income opportunities, generating massive unemployment that had reached in some of the new states more than 50 per cent of the labour force.

      On the institutional dimension, most of the participants agreed that a weakening of the State and institutional uncertainties had also contributed to the build-up of tension, causing a rise in predator behaviour manifested in criminalization, asset-stripping, petty and grand corruption and victimization of the weak.  In the absence of decisive and concerted actions to set up a new institutional system that would favour constructive and cooperative behaviour at the both levels, group and communal, such a situation, according to most participants of the Colloquium, was unavoidably conflict-prone.

      On the economics of terrorism, many participants agreed that the issue of financing was of paramount importance, as well as the issue of sustainability of militant group activities.  It was acknowledged that the role of diasporas in funding such activities in their countries of origin had been underestimated, so was the role of financial linkages between terrorism and organized crime.  A swift international action against money-laundry in combination with a proper regulatory framework for global financial transactions and banking operations, especially with regards to those conducted on the Internet, was seen as a first immediate step in undermining the financial foundation of terrorism.  However, in the long-term prospective, well-targeted multilateral and bilateral development assistance to conflict-prone countries in combination with other incentives and instruments was felt to be the most effective mean to reduce the social base of terrorism.

       On the common security issue, most participants agreed that a recent terrorist attack against the United States revealed loopholes and weaknesses in the existing security arrangements and a high degree of vulnerability of modern states.  It also demonstrated the existing gaps between safety and security precautions that needed to be closed in most effective and efficient ways.  

      It was noted that the specific nature of the terrorism threat called for a joint counter-action of all the civil actors, and, first and foremost, of the private sector, which, as recent events had shown, could otherwise suffer enormous losses.  The view, that the private sector had an important role to play in both types of conflict-prevention measures, immediate and long-turn, was fully recognized by all participants, including the representatives of the corporate sector.  

         After making an inventory of the institutional strength, expertise and capacities, that could be employed to assist the UNECE/OSCE member States to meet the challenges of terrorism and to mitigate the economic risks of conflict, participants of the Colloquium made the following suggestions. Firstly, it would be useful to bring experts on safety and security together to discuss possible measures, which could help to reduce the threat of terrorism to the economic infrastructure.  Secondly, it was proposed to establish a public-private partnership on conflict prevention under the auspices of UNECE and OSCE, which would operate within the framework of the UNECE Public-Private Partnership Alliance of the Working Party 5.  Thirdly, the idea was put forward to convey a regular informal meeting of staff members of UNECE, OSCE, EU and NATO (so-called the Villars Group) in order to exchange experience, knowledge and views on the economic dimension of conflict.

       For further information please contact:

Larissa Kapitsa, Chief
Coordinating Unit for Operational Activities  
United Nations Economic Commission for Europe

Palais des Nations, Office 436
CH-1211 Geneva 10, Switzerland

Phone:      +41 22 917 42 21
Telefax:     +41 22 917 01 78

E-mail:       [email protected]  

or:

Geoffrey Hamilton
Regional Adviser on Investment Promotion 
Coordinating Unit for Operational Activities
United Nations Economic Commission for Europe
 

Palais des Nations, Office 433
CH-1211 Geneva 10, Switzerland

Phone:      +41 22 917 28 38
Telefax:     +41 22 917 01 78

E-mail:       [email protected]   

 

Ref:  ECE/OPA/01/13