Chairman, Excellencies, Ladies and Gentlemen,

I would like to join the previous speakers in thanking the European Commission and the World Bank for organising this important meeting.

I represent a network of indigenous foundations that operate throughout South Eastern Europe. We are devoted to the concept of open society. We are fully committed to make the Stability Pact a success, because its vision is to bring the countries of South Eastern Europe closer to each other by bringing them closer to Europe. Our engagement is mainly related to Working Tables I and III of the Stability Pact.

In the last few weeks, we have been approached numerous times by our grantees and other non-governmental organisations in the region. These representatives of local civil society communicated three main concerns about the Stability Pact, which I would like to share with you:

• Most of the Task Forces lack clearly defined objectives and strategies, as well as transparent, well-defined criteria to select priority projects. An exception is the Education and Youth Task Force.

• The Stability Pact process has not sufficiently involved experts and organisations from the region itself. This has hampered the accurate assessment of the existing needs and realistic, long-term solutions.

• The Stability Pact process and donor programs have a bias towards projects from Western-based organisations.

As a result, civil society in the region is deeply concerned that the Stability Pact will divert present and new funding, human resources, and political support from existing local initiatives to Western-based organisations and governmental initiatives.

We acknowledge the valuable support that Western expertise can bring to the process of promoting democracy, rule of law, human rights, and economic and social reform. Yet, we must not lose sight of the objective of the exercise, which is to create local capacity.

The experience that most of us assembled here today have accumulated over the last ten years in South Eastern Europe demonstrates that local initiative and ownership are crucial to ensure the long-term effectiveness of reform efforts. This approach ensures that the assistance is delivered most efficiently and responsibly. It also empowers and reinforces local capacity and institutions in the Stability Pact region.

There is no substitute for the competence and commitment of indigenous organisations. After all, their efforts are an investment in their own future. Therefore, if we want to support lasting change in the Stability Pact region, we – the donor community – must ensure that our resources support the efforts of the real stakeholders in the reform process.

In this context, let me inform you what the Soros Foundations Network plans to do to address the concerns expressed by local civil society.

1. In 2000, we will disburse $50 million to support projects related to Working Tables I and III of the Stability Pact. We plan to allocate similar amounts in each of the coming few years. These resources will be used to support initiatives owned and driven by indigenous organisations. Whenever possible, we will co-finance with other donors and collaborate with implementing partners within and outside the region.

2. We are presenting today a package of approximately 100 projects from the region itself. Many of these projects have already been launched or can begin immediately – if resources are mobilised. This package is intended as a resource for funders that are looking for innovative ways to pursue the main objectives outlined by the Stability Pact. The total cost of these projects is approximately $65 million. The Soros Foundations Network is willing to commit up to one-third of this $65 million on condition that donor partners support the other two-thirds of these costs.

3. We are keen to participate actively in the donor network proposed by the Special Coordinator of the Stability Pact and any other mechanism that will encourage effective donor coordination on the regional and country level.

We offer our local experience and expertise as a resource to the donor community and look forward to working with all of you to achieve – at long last – systemic changes in South Eastern Europe.