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International Assistance to South East Europe |  |
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Who is involved? |
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Following the Kosovo crisis in 1999, the international community strengthened the effort required to help reconstruct the war torn countries of South East Europe and to support them in their drive to political stability and economic prosperity. In financial terms, more than €6 billion have been made available in annual commitments of official aid to the Region, amounting to a per capita level of €100. The reconstruction efforts in Kosovo, Serbia and Montenegro, and Macedonia required special donor conferences with funds being pledged and disbursed against clearly identified needs. This money has been provided by a wide range of donor governments, including all fifteen EU Member States, as well as a number of countries outside the European Union (inter alia: Canada, Japan, Russia, Switzerland and the United States of America). Much of this bilateral assistance was provided in the form of grants. The EU is by far the single largest grant assistance donor to the countries of the Western Balkans. Since 1991, the EU has provided more than €6 billion to the region through its various aid programmes. In addition, high levels of assistance has also been provided by Multilateral and International Financial Institutions (eg, European Bank for Reconstriction and Development, the European Investment Bank and the World Bank), which has generally been provided in the form of preferential loans. For more details, please consult the section on how much money is being given to the region. Donor Coordination As important as the provision of
financing to the region is the need to coordinate this
assistance. Effective coordination is essential for the success of
reconstruction and economic development programs in South East Europe. Given the scarcity of donor resources and the region’s vast needs, overlaps or inconsistencies between donor programs and projects must be avoided. Equally critical is to
identify gaps in funding programs to help donors to allocate funds
towards priority areas. Effective donor coordination is also crucial to ensure compatability and policy consistency within programs where multiple donors are involved. Importantly, donor coordination, aid mobilization and tracking are essential parts of national budgetary management, of particular concern to the World Bank and
IMF. Donor coordination also helps to avoid misconceptions,
unrealistic expectations, poor information or data which can all lead
to undermining and damaging reconstruction efforts. The Commissioner for Economic and Monetary Affairs and the President of the World Bank co-chair a High Level Steering Group (HLSG), which comprises G8 finance ministers and heads of major International Financial Institutions (IFIs). The HLSG aims to ensure strategic direction to the process of economic reconstruction, stabilisation, reform and development in the region, including social and institutional dimensions, both at country and at regional level. Moreover, the HLSG oversees resource implications for the international community and the donor mobilization process, and assists in co-ordination and oversees the appropriate conditions of support and ensures consistency of criteria on which donor funding is committed. The work of this group is supported by a Working Level Steering Group (WLSG), consisting of senior level officials representing the members of the HLSG. The joint World Bank - European Commission Office for South Eastern Europe also facilitates this donor coordination effort. The Regional Dimension of Reconstruction and Development in South East Europe The countries of the Region are expected to develop and implement their reform programs based on national strategies that also foster regional cooperation. The objective here is not to recreate the former Yugoslavia but to develop regional perspectives on
inter alia trade, energy, environment, and water resource management, which can offer political benefits and large welfare increases for all countries of the region. Moreover, a regional approach facilitates allows for adequate prioritization of regional infrastructure investments in South East Europe. The regional approach and the need to enhance regional cooperation is a cornerstone of the
Stabilization and Assocation Process, as it is an integral part the preparation for integration of the countries of SEE into European structures. The Stability Pact, launched in June 1999 on the EU’s initiative, is a political declaration of commitment and a framework agreement on international cooperation to develop a long term strategy for stability and growth in South East Europe. It is therefore an important forum for cooperation and consensus building. The pact is currently led by Special Coordinator Dr. Erhard Busek, and is organized through three working tables which include democratization and human rights (Working Table I); economic reconstruction, development, and cooperation (Working Table II); and security issues (Working Table III). The scope of the Stability Pact is therefore wide and addresses issues for the region beyond economic and social development. The links below provide more information on international efforts to coordinate and provide development assistance in South East Europe: Multilateral and International Financial Institutions
DEVELOPMENT PARTNERS (DAC Members): The Development Assistance Committee (DAC) is the principal body through which the Organization for Economic Cooperation and Development (OECD) deals with issues related to co-operation with developing countries. Below are links to the government development agencies of DAC members. Australia Austria Canada Denmark European Union Finland France Germany Greece Ireland Italy Japan Luxembourg New Zealand Norway Portugal Spain Sweden Switzerland United Kingdom |
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