Contents

Contents

1. Introduction by the Co-ordinator of OSCE Economic and Environmental Activities 1

2. Strategy Document for the Economic and Environmental Dimension 3

2.1. Overview of the Strategy Document 3

2.2. Implementation of the Strategy Document 3

2.3. OCEEA Structure 4

3. Follow-up to the 11th Economic Forum: Trafficking 5

3.1. Anti-Trafficking Programme on Public-Private Co-operation in the Prevention of Trafficking in Human Beings 5

3.2. Facilitating the propagation of best practices against trafficking 6

3.3. Strengthening co-operation in the field of counter-trafficking 7

3.4. Specific follow-up activities to the 11th Economic Forum 7

4. The 12th Economic Forum: “New Challenges for Building up Institutional and Human Capacity for Economic Development and Co-operation”, Prague, 31 May - 4 June 2004 8

4.1. First Preparatory Seminar for the 12th Economic Forum: Supporting the development of SMEs, Yerevan, Armenia,17-18 November 2003 8

4.2. Second Preparatory Seminar for the 12th Economic Forum: Stimulating foreign and domestic investment, Dublin, Ireland, 16-17 February 2004 9

4.3. Third Preparatory Seminar for the 12th Economic Forum: Professional skills needed for developing a market economy, Bishkek, Kyrgyzstan, 29-30 March 2004 9

5. Good Governance 10

5.1. Promoting transparency and combating corruption 10

5.1.1. Strengthening of Legislation and Institutions and Promoting International Standards 10

5.1.2. Promoting the UN Convention Against Corruption 10

5.1.3. OSCE Booklet on Best Practices in Combating Corruption 11

5.1.4. Specific Activities in OSCE Participating States 11

5.2. Improving the management of public resources 13

6. Activities related to the Prevention and Combating of Money Laundering and the Financing of Terrorism 17

6.1. National Workshops on “Combating Money Laundering and Suppressing Financing of Terrorism” 17

6.2. Further Activities 18

Contents

7. Further Activities in the Economic Dimension 19

7.1. Promoting Entrepreneurship and SME Development 19

7.1.1. The Youth Entrepreneurship Seminar Programme (YES) 19

7.1.2. Empowering Vulnerable Population Groups 22

7.1.3. Promoting Economic Growth in Rural Areas 24

7.2. Building the Capacity of Decision Makers and other Stakeholders 26

7.3. Promoting the Access to Finance and Investment 30

8. Activities in the Environmental Dimension 31

8.1. Launching the Environment and Security Initiative 31

8.2. Tackling Hazardous Waste 33

8.3. Linking Water and Security 36

8.4. Promoting Environmental Awareness 38

8.4.1. Raising Awareness and Environmental Education 38

8.4.2. Implementing the Aarhus Convention 40

8.5. Building the Capacity of Decision Makers and other Stakeholders 42

9. Additional Activities 44

9.1. OSCE-UNECE Inter Secretariat Task Force 44

9.2. OSCE Conference on globalisation 44

9.3. Special meeting of the Permanent Council on the Integration processes in the OSCE region 45

9.4.Research Seminar of the Central Asian Youth Network 45

9.5. Annual Co-ordination Meeting for Economic and Environmental Officers, Vienna and Kranichberg, 29 September – 3 October 2003 45

10. Participation in Conferences 46

11. Main Issues addressed during the Economic and Environmental Sub-Committee Meetings since June 2003 50

12. OCEEA Professional Staff and Main Responsibilities 53

Acronyms 53

1

Introduction

Dear readers,

I have the honour and pleasure to present to you, the OSCEparticipating States and all our partners, the annual reporton OSCE activities in the economic and environmentaldimension. We have slightly revised the lay-out with theaim of helping you find the contributions you are mostinterested in. Let me therefore just make a few introducto-ry remarks of a general nature.

To meet the new challenges to security in the 21st century,the OSCE Ministerial Council held in Maastricht inDecember 2003 enriched the OSCE community with anew Strategy Document for the Economic and Environ-mental Dimension. This document will have a decisive rolein shaping future economic and environmental activities ofthe OSCE. Although the full impact of the Strategy Docu-ment will be visible only after a new approach to thereview of the implementation of commitments and earlywarning begins to operate, there are already a number ofactivities in support of the implementation of the newDocument. The three preparatory seminars held in the run-up to the 12th Economic Forum in May-June 2004 – onSME development, investment and human capital – corre-sponded closely to the objectives of the Strategy Docu-ment. The same can be said about the conference on glob-alisation organised in Vienna in July 2003, a special Per-manent Council meeting on economic integration process-es in the OSCE region, as well as activities designed toimprove public governance, such as a booklet published onbest practices in combating corruption, and efforts to intro-duce the teaching of business ethics at academic institu-tions in the OSCE area.

My Office also continued, as a follow up to previous Eco-nomic Fora, three projects on water management (on therivers Chu and Talas, in the Southern Caucasus and on theriver Sava) with a new project planned to be launched in2004 on the river Dniestr between Ukraine and Moldova.Following the 11th Economic Forum, we have organised arange of activities supporting the fight against traffickingin human beings and have developed a programme on anti-trafficking which will be implemented over a three-yearperiod.

Whenever the OSCE is engaging in discussions aboutfuture activities, whether internally or with partner organi-sations, one issue almost inevitably comes to the fore: therelevance of finding a niche for the organisation’s activities,to avoid the risk of duplication. The activities presented inthis report reflect this thinking, underlining the role theOSCE can play in the economic and environmental spheres.Specific activities addressing economic and environmentalneeds, such as workshops on anti money laundering or themapping of environmental threats to security (within theframework of the Environment and Security InitiativeENVSEC), are examples of the small but important contri-bution of the OSCE to peace and stability. Moreover, manyof our activities have been conducted jointly with partnerorganisations such as the UNECE, UNODC, UNDP, UNEPand NATO. Whenever we are developing new activities inareas in which other organisations are already active, it isindispensable to ask in what way the OSCE can add valueto ongoing activities. One of our aims is therefore to targetparticularly vulnerable groups of society, such as peopleliving in border areas and ethnic minorities. One example inthis context is the Youth Entrepreneurship Seminars (YESProgramme) which targets among others sections of thepopulation vulnerable to human trafficking. In otherinstances we are reinforcing ongoing activities by otherorganisations with the aim of increasing the impact bypulling on the same string, for example when supportingthe implementation of the UN Convention on Corruptionwhich was adopted in December 2003.

Introduction by the Co-ordinator of OSCE Economic and Environmental Activities 1.

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Many of our seminars and conferences also serve theimportant purpose of awareness raising about issues thatpose a distinct threat to security, such as growing econom-ic discrepancies, the threat of new regional divisions,obstacles to trade, development and investment and envi-ronmental degradation. By launching and encouraging adialog, we endeavour to mobilise states, NGOs, interna-tional organisations and the public opinion to do more inovercoming shortcomings in areas such as good gover-nance, management of public resources, the fight againsttrafficking in human beings or the environment. Many ofthe events we organised over the past year serve the pur-pose of disseminating best practices. The events describedin this report were both organised by my Office and the 18OSCE field presences and due to their sheer quantity, notall could be reflected in this report. We have thereforeselected the most relevant ones which we believe had thebiggest impact.

Let me finally mention the support my Office has provid-ed to the OSCE Chairmanship in organising fourteenmeetings of the Economic and Environmental Subcommit-tee between June 2003 and May 2004, a Conference onGlobalisation, a Special Permanent Council meeting onintegration as well as numerous contributions of OCEEAstaff to international conferences devoted to economic andenvironmental aspects of security.

Co-operation with partner organisations has become anincreasingly important tool in our work. This is why theOSCE has formalised the co-operation with other organi-sations active in the economic and environmental dimen-sion, for example by signing a Memorandum of Under-standing with UNEP and UNDP on the Environment andSecurity Initiative ENVSEC, by exchanging letters ofinterest on modalities of exchange of information with theEBRD, and by setting up a joint Task Force with theUNECE on closer co-operation, especially on the formatof the review of commitments during our annual Econom-ic Forum.

I do believe that the OSCE activities in the economic andenvironmental areas made a difference to security. I amalso aware that our contribution is only a small drop in anocean of need and much more national mobilisation andinternational involvement is required to obtain tangibleresults.

Marcin SwiecickiCo-ordinator of OSCEEconomic and EnvironmentalActivities

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Introduction

2.1 Overview of the Strategy DocumentFollowing the decision of the OSCE Ministerial Councilin Porto on “Enhancing the Role of the OSCE Economicand Environmental Dimension” (MC(10).DEC/5), thework on elaborating a new Strategy Document for theEconomic and Environmental Dimension started in Janu-ary 2003 under the guidance of the Dutch Chairmanship.The OCEEA provided, as requested, input and support tothe Chairmanship and the participating States. As a resultof intense and continuous deliberations within the frame-work of two informal groups of friends, the Economic andEnvironmental Sub-Commitee and the PC, consensus wasreached and the Strategy Document was adopted by theOSCE Ministerial Council in Maastricht, in December2003 (MC(11).JOUR/2, Annex 1).

Reaffirming the importance of the Economic and Envi-ronmental Dimension, recalling the principles of the 1975Helsinki Document and complementing the ConcludingDocument of the CSCE Conference on Economic Co-operation in Europe (Bonn 1990), the Strategy Documentidentifies the challenges and threats in the economic andenvironmental dimension and the response and actionneeded from the OSCE perspective. The Strategy Docu-ment covers a wide range of thematic areas such as:

➜ co-operation to enhance development, security and stability;

➜ good governance;➜ sustainable development;➜ protecting the environment.

Referring to the role of the OSCE, the Strategy Documentstipulates that it should be further enhanced, in particularthrough:

➜ enhancing dialogue;➜ improving the review of implementation

of commitments;➜ strengthening the capacity for advice and

assistance;➜ strengthening the capacity to mobilise advice

and assistance from other organisations.

2.2 Implementation of the Strategy DocumentIn line with the provisions of the new Strategy Document,the OCEEA has streamlined its existing activities andidentified further activities relevant to the implementationof the new Strategy Document. For this purpose, theOCEEA has presented a proposal on ‘Implementation ofthe OSCE Strategy Document for the Economic and Envi-ronmental Dimension’. This proposal is meant as an openand living document to be adapted on a regular basisaccording to the priorities identified by OSCE participat-ing States.

In the field of economic co-operation the OCEEA hasproposed to promote accession to international tradeagreements and regional integration processes throughseminars, workshops and technical expertise for interest-ed participating States. With regard to promoting goodgovernance, the OCEEA is already strengthening its assis-tance e.g. by supporting the development of Anti-corrup-tion Action Plans and Strategies, the publication of anOSCE Booklet on Best Practices in Fighting Corruptionand the Municipal Infrastructure Finance and Implemen-tation Project (MIFI). The latter aims at increasing co-operation between local governments and their con-stituents. Already active in developing a business-friendlyenvironment and promoting SMEs, the OCEEA is extend-ing its efforts in the field of human capital development.Therefore, in addition to its Youth Entrepreneurship Sem-inars, the OCEEA is developing internship programmesfor at-risk groups within private sector companies. Withregard to ensuring sustainable development and protectingthe environment, the OCEEA is promoting the implemen-tation of international environmental conventions andfacilitating co-operation through various activities whilethe OSCE-UNDP-UNEP Environment and Security Ini-tiative (ENVSEC) is dealing with risk assessment, policydevelopment as well as institution and capacity building.

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Strategy Document

2. Strategy Document for the Economic and Enviromental Dimension

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2.3 OCEEA StructureTo better respond to its mandate and the requirements ofthe new Strategy Document, the 2003 Unified Budgetallowed the OCEEA to increase its workforce. TheOCEEA is now in a position to build up capacity whichallows a more substantial response to economical andenvironmental threats to security.

In particular, the rapidly increasing importance of projectwork within the OCEEA over the past two years createdthe need for a more structured and unified approach in thedesign, management and evaluation of economic andenvironmental projects. The absence of a comprehensivedatabase of projects in the Economic and EnvironmentalDimension, as well as the need for more transparent han-dling of project finance, resulted in the creation of a Pro-ject Support Unit (PSU) within the OCEEA.

The PSU is composed of three officers who are part of theCo-ordinator’s Office in Vienna. Its main tasks include:

➜ Providing a first port of call for all project relatedcommunications with the OCEEA, especially withregard to requests for support and information during the project development phase, but also reporting and evaluation;

➜ Facilitating the transfer of know-how between fieldpresences and the OCEEA;

➜ Building an institutional memory of ongoing and past projects by widening the existing CPC projectdatabase, including a list of model projects (best practices);

➜ Encouraging unified drafting standards and regularreporting practices.

Strategy Document

The declared objective of the PSU is to deal in atransparent and systematic way with all projects inthe Economic and Environmental Dimension(EED), initiated and run by the OCEEA, and toassist OSCE field presences in designing, managingand evaluating their EED projects as well as assist-ing them in their effort of fund raising. Particularemphasis will be put on regular reporting on on-going and completed activities. The PSU also assistsfield presences in designing and reporting on proj-ects funded by the OSCE core budget.

Objective of the OCEEA Project Support Unit

Trafficking in human beings, drugs, small arms and lightweapons poses a serious threat to human security and stabili-ty in the OSCE region. Recognizing that combating traffickingrequires a comprehensive effort involving all three dimensions ofthe OSCE, the proposal of the Dutch Chairmanship to select“Trafficking in Human Beings, Drugs, Small Arms and LightWeapons: National and International Economic Impact” wasaccepted as the theme for the 11th OSCE Economic Forumwhich was held in Prague from 20 to 23 May 2003.The Con-solidated Summary of the 11th Economic Forum was distrib-uted to delegations under EF.GAL/13/03/Rev.1.In addition to its activities already contributing to fighting traf-ficking, e.g. by combating money-laundering and fighting pover-ty, the OCEEA has developed a specific Anti-Trafficking Pro-gramme which complements the counter-trafficking activitiescarried out by OSCE institutions.

3.1.Anti-Trafficking Programme on Public-Private Co-operation in the Prevention of Trafficking inHuman BeingsThe 11th Economic Forum together with the “OSCEAction Plan to Combat Trafficking in Human Beings”(MC.DEC/2/03) tasked the OCEEA to take measures thathelp to (a) address the demand side of trafficking in humanbeings, (b) tackle economic factors which increase the vul-nerability of women and minorities to trafficking, and (c)mobilise and strengthen the private sector’s efforts to com-bat trafficking in human beings.

Following this guidance, the OCEEA developed a compre-hensive Anti-Trafficking Programme which builds uponexisting best practices of the private sector. The Pro-gramme’s objective is to fight trafficking in human beingsin source, transit and destination countries in the OSCEregion by establishing private-public partnerships amongthe business community, NGOs, and governments. TheAnti-Trafficking Programme consists of three mutuallyreinforcing sub-programmes:

1. Self-regulation of the private sector;2. Awareness raising in Western countries;3. Economic empowerment of potential

victims of trafficking.

After presenting the Anti-Trafficking Programme to thedelegations (SEC.GAL/13/04/Rev.1) in February 2004, theOCEEA in close co-operation with its implementing part-ners, the Austrian NGO “Respect” and IOM, started theimplementation of the first phase of the Programme.

Under the self-regulation sub-programme of the Anti-Traf-ficking Programme (ATP), two pilot countries in South-eastern Europe have been identified to commence with theimplementation of the “Code of Conduct for the Protectionof Children from Sexual Exploitation in Travel andTourism”. The Code of Conduct, which was developed byECPAT international (ECPAT stands for “End Child Pros-titution, Child Pornography and Trafficking of Childrenfor Sexual Purposes”) will involve training of tourismindustry personnel, distribution of information on traffick-ing and (contractual) agreement between Western andlocal tour operators to prevent exploitation of minors forsexual purposes. In addition, tourism education institu-tions and chambers of commerce will be encouraged towork in co-operation with the governments’ national pointsof contact for the prevention of trafficking in this effort. Itis foreseen to expand the Code of Conduct further intoSouth Eastern and Central Europe, subsequently, self-reg-ulatory activities will be promoted in other sectors, includ-ing transportation, agriculture, etc.

Under the awareness raising sub-programme of the ATP,and in order to sensitise specific target audiences such aspolicy makers, business community and the general publicin Western countries on the problem of trafficking, theOCEEA together with UNODC is developing an aware-ness raising campaign involving in part the airing of pub-lic service announcements in airlines and airports. Aware-ness raising is also undertaken through the screening of themovie “Lilja 4-ever”.

As preventive strategies targeting countries of origin inSouth Eastern and Eastern Europe, the OCEEA is imple-menting economic empowerment activities for vulnerablepopulation groups at risk of being trafficked in partnershipwith the business community, governments and civil

Trafficking

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3. Follow-up to the 11th Economic Forum:Trafficking

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Trafficking

society (See Chapter 7.1.2). Building upon the OSCEYouth Entrepreneurship Seminars (YES) programme, at-risk groups are trained on how to start a small business andaccess financing (See Chapter 7.1.1). In co-operation withWorld Bank’s International Finance Corporation (IFC),OCEEA is studying the feasibility of establishing intern-ship and vocational training programmes within privatecompanies to empower vulnerable groups with the neces-sary skills to be competitive in the job market. Similarly,consultations with the International Business Leader'sForum (IBLF) are resulting in promising opportunities todevelop a vocational programme in the hospitality industry(Youth Career Initiative).

3.2. Facilitating the propagation of best practicesagainst traffickingFollowing the specific recommendations of the 11th Eco-nomic Forum and provisions of the “OSCE Action Plan toCombat Trafficking in Human Beings” (MC.DEC/2/03),

OCEEA has identified and facilitated the propagation ofbest practices that are carried out by or involve the privatesector and NGOs with the objective to combat traffickingin human beings. For instance, among self regulatoryschemes the “List of Voluntary Best Practices” of the Inter-national Road Transport Union (IRU) aims at helping roadhauliers and truckers to curb and stop illegal migration.

Another successful example involving the private sector are national “Crimestoppers” programmes. These private-public partnerships provide the opportunity for any indi-vidual to contact a telephone line anonymously to submit information on crimes, including those in connection withtrafficking in human beings. Furthermore OCEEA broughtto the OSCE Informal Working Group on Gender Equalityand Anti-Trafficking the Best Practices on (Re)Integrationof Victims of Trafficking in six West European countries,as researched by the project Bonded Labour in the Nether-lands (BlinN).

A strong call about the plight of victims of traf-ficking went out from the screening of the movie“Lilja 4-ever”. OCEEA organised this event in theHofburg on 15 September 2003 as a follow up tothe Eleventh Economic Forum, where the need formore awareness raising activities in countries oforigin, transit as well as in countries of destinationwas stressed. The screening of the movie “Lilja 4-ever” on themisery endured by an Eastern European teenager,finding herself sold into sexual slavery was fol-lowed by a round of discussion among the partici-

pants on how awareness on trafficking in human beings can be improved in Western Countries.As a spin off, the OCEEA facilitated the repetition of the screening in other venues.

Lilja 4 ever

Mem

fis Film/Per-A

nders Jorgensen

Crim

stoppers

“You know the perpetrator, does he know you? Report Crime anonymously”. The OSCE supports this Crimestoppers Public Campaign.

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Trafficking

3.3. Strengthening co-operation in the field of counter-traffickingWhile developing its anti-trafficking activities OCEEAhas been strengthening its co-operation with relevant inter-national organisations, NGOs and the business communi-ty. In addition the Office is participating in the OSCEInformal Working Group on Gender Equality and Anti-Trafficking and the Stability Pact Task Force Expert Co-ordination Team Meeting.

3.4. Specific follow up activities to the 11th EconomicForumDrug Awareness campaign - Awareness raising on trafficking of drugs and human beings.The Economic and Environmental Unit of the OSCE Pres-ence in Albania and the UNODC supported a public cam-paign in the frame of the International day on drugs, on 26June 2003, with the aim to address the need to talk aboutdrugs, and identify the roots and ways of fighting them.Several dialogues were broadcasted in Albanian language,in two main radio channels, during June 2003.

The OSCE also supported the Shkodra Police Directorateto carry out a local awareness campaign in March 2004.The main purpose of the campaign was to raise publicawareness on the negative effects of the cultivation, pro-duction and trafficking of narcotic plants in order to com-bat drug related activities in the Shkodra region.

Fight against drugs – Agriculture needs assessment forthe Karbunara village.The OSCE Presence in Albania supported a needs assess-ment study in the Karbunara village in south-west Albania,aiming at the introduction of alternatives to the cultivationof drug crops. The study came out as the village has beenconsidered one of the most problematic areas of cultivationand trade of drugs and it was conducted by ABMC (Agri-cultural Business Management Centre). The results deter-mined the potential for development and possibilities ofalternative crops cultivation in the village.

“Together for a society without drugs”.The OSCE funded the posters for the manifestation during the International Day on Drugs on 26 June 2003.Albania

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Three Preparatory Seminars were organised before the TwelfthOSCE Economic Forum on “New Challenges for Building upInstitutional and Human Capacity for Economic Developmentand Co-operation”. These meetings allowed experts from theparticipating States and various international organisations, thebusiness community, academia and non governmental organi-sations to analyse and discuss issues related to the three maintopics of the Forum: development of the SME sector, stimulat-ing investment, and development of human capacity. Thepreparatory seminars achieved their main objective of elabo-rating suggestions for the Economic Forum. Furthermore, dis-cussions in the Economic and Environmental Sub-Committeebased on the suggestions from the seminars contributed tostreamlining the preparatory process.The three Preparatory Seminars were organised by the OCEEAin close co-operation with the Bulgarian Chairmanship andrespectively in collaboration with the Armenian Ministry of For-eign Affairs and the OSCE Office in Yerevan (First PreparatorySeminar), the Ministry of Foreign Affairs of Ireland/EU Presiden-cy (Second Preparatory Seminar), and the Kyrgyz Ministry ofForeign Affairs and the OSCE Centre in Bishkek (Third Prepara-tory Seminar).Altogether, the three Preparatory Seminars attracted more than480 participants from OSCE participating States, OSCE Part-ners for Co-operation, OSCE Mediterranean Partners for Co-operation, OSCE Field Presences, OSCE Institutions, as well asnumerous representatives of relevant international organisa-tions, the business community, NGOs and research institutions.Numerous background documents and speakers’ presentationshave been circulated during the three seminars. These docu-ments have been compiled in a CD-Rom and can be providedupon request by the OCEEA.The suggestions stemming from the preparatory seminars werecirculated to all OSCE delegations.

4.1 First preparatory seminar for the 12th EconomicForum: Supporting the development of SMEs,Yerevan,Armenia,17-18 November 2003The First Preparatory Seminar for the 12th OSCE Eco-nomic Forum was held on 17-18 November in Yerevan,Armenia. The topic of the seminar was “Supporting theDevelopment of SMEs”.

Following the opening of the plenary session which alsofeatured three general introductory keynote speeches, twoparallel focused working groups were dedicated to theestablishment of an appropriate legislative and institution-al framework conducive to the development of the SMEsector and, respectively, to the direct assistance targetingSME development. Issues such as the need for friendlylegislation and policies specifically targeting SMEs, theimportance of entrepreneurial education and skills, the roleof business associations and role of business support insti-tutions were discussed. Representatives of business associ-ations and chambers of commerce had a substantive con-tribution to the debate.

The 12th Economic Forum

4.The 12th Economic Forum:“New Challenges for Building up Institutional andHuman Capacity for Economic Developmentand Co-operation”, Prague, 31 May – 4 June 2004

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Exhibition on SMEs during the First Preparatory Seminar for the12th OSCE Economic Forum.Yerevan,Armenia.

In addition, a plenary session on “The role of the OSCE insupporting the development of SMEs” was held in the sec-ond day of the event. The discussion was instrumental infurther streamlining the OSCE approach.

The Consolidated Summary was distributed underSEC.GAL/218/03.

4.2 Second Preparatory Seminar for the 12th Economic Forum: Stimulating foreign and domesticinvestment, Dublin, Ireland, 16-17 February 2004The Second Preparatory Seminar for the 12th OSCE Eco-nomic Forum was held on 16-17 February in Dublin, Ire-land. The topic of the seminar was “Stimulating Foreignand Domestic Investment”.

A first plenary session focused on risks, security and invest-ment. A second plenary session on strengthening the part-nership of governments, private sector and internationalorganisations for good governance, conflict prevention andpost conflict rehabilitation was held in the second day of theevent. Two parallel working groups were dedicated to creat-ing necessary conditions for investment and maximizingbenefits from investment. Among the main issues addressedwere: the financial infrastructure needed for stimulatinginvestment, the role of regional co-operation, the impact ofinvestment on domestic private sector development, humanresources development and in promoting higher environ-mental standards and environmental responsibility.

The discussion provided an opportunity for exchangingviews on the OSCE role in the field and its potential co-operation with other international organisations and actors,including NGOs involved in conflict prevention and busi-ness organisations and associations such as business advi-sory councils.

The Consolidated Summary was distributed underSEC.GAL/48/04.

4.3 Third Preparatory Seminar for the 12th EconomicForum: Professional skills needed for developing amarket economy, Bishkek, Kyrgyzstan, 29-30 March2004The Third Preparatory Seminar for the 12th OSCE Eco-nomic Forum was organised in Bishkek, Kyrgyzstan, on29-30 March 2004. Its topic was “Professional SkillsNeeded for Developing a Market Economy”.The seminar started with an opening plenary session, dur-ing which the state of education and human capacity build-ing and the challenges ahead were addressed. The openingplenary was followed by five thematic working sessionsduring which the specific gaps and needs related to train-ing for public administration staff, training for academicstaff and graduates, business related training, education forsustainable development and employment related trainingfor youth and newly graduated were discussed.

The seminar took account of the experience and activitiesof national and international organisations and institutionsactive in the field of human capacity building and highereducation in order to ensure that any OSCE human capac-ity building initiative being developed in co-operation withother organisations would complement or build on workalready being carried out, thus avoiding duplication.

The Consolidated Summary was distributed underSEC.GAL/91/04.

The 12th Economic Forum

Irish Deputy Prime Minister Mary Harney and Marcin Swiecicki,Co-ordinator of OSCE Economic and Environmental Activities, at theSecond Preparatory Seminar for the 12th OSCE Economic Forum,Dublin, Ireland

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H.E. Djoomart Otorbaev, Deputy Prime Minister of Kyrgyzstan(middle) opening the Plenary Session of the Third Preparatory Seminar for the 12th Economic Forum. Bishkek, Kyrgyzstan

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Public confidence and trust in government is a result that is onlyachieved when governmental institutions and legislation arestrengthened in such a way that they can effectively combatcorruption. The OCEEA focuses its attention on the promotionand implementation of international standards and conventionsagainst corruption, the strengthening of public administrationsystems, development of transparent budgetary processes andthe establishment of well-functioning public institutions.

To achieve this end, the OCEEA has formed partnerships withthose international organisations that are active in the fightagainst corruption.The OECD, UNDP, and UNODC are workingin co-operation with the OCEEA on a number of overlappingissues; together we are finding new synergies to ensure that awell co-ordinated approach to anti-corruption strategies andtechnical assistance project development can be achieved inthe OSCE region.

5.1 Promoting transparency and combating corruption

5.1.1 Strengthening of Legislation and Institutionsand Promoting International StandardsTo promote the strengthening of legislation and institutionsthat combat corruption the OCEEA is presently working inclose co-operation with the OECD Anti-Corruption Net-work for Transition Economies to further a regional Anti-corruption Action Plan in several OSCE countries.

The action plan requires participating countries to performextensive self-assessments of their anti-corruption institu-tions and legislation. Their reports are reviewed by inter-national experts with the aim of identifying areas wherefurther work is needed. The OCEEA supports the inclusionof civil society anti-corruption coalitions in the reviewprocess, by encouraging the development of shadowreports that are presented during the review meetings.Once recommendations are made OCEEA intends to sup-port technical assistance based on those recommendationsmade during the reviews and the needs of the country. Amonitoring system will then be developed to measureprogress towards attaining the goals set.

5.1.2 Promoting the UN Convention Against CorruptionThe OSCE is working closely with the UNODC GlobalProgramme against Corruption in promoting ratificationand implementation of the UN Convention against Cor-ruption, which was adopted on 31 October 2003 andopened for signature by UN Member States in Mérida,Mexico, as of 11 December 2003. The first RatificationPromotion and Early Implementation Workshop for theConvention will be held in Kyrgyzstan in June 2004. Gov-ernment officials, parliamentarians, and NGOs were invit-ed to attend. The Workshop will highlight provisions fromthe Convention, explain the ratification process and identi-fy where national legislation falls short of the commit-ments required under the Convention. To follow-up tothese findings UNODC and OCEEA will tailor technicalassistance workshops that conform to the needs andrequests of countries that wish to ratify and implement theConvention.

Good Governance

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5. Good Governance

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5.1.3 OSCE Booklet on Best Practices in CombatingCorruptionThe Booklet on Best Practices in Combating Corruptionfocuses on the latest anti-corruption practices across theworld. It is intended to be a resource tool for legislators,public officials, media organisations, NGOs and all thosewho may be concerned about corruption and wish to knowmore about measures other countries have taken to fightcorruption. The Booklet will be available in English andRussian during 2004.

5.1.4 Specific Activities in OSCE Participating StatesAzerbaijan➜ National Integrity Systems Study

The OSCE Office in Baku sponsored in part the interna-tional NGO, Transparency International, to conduct aNational Integrity Systems Study for Azerbaijan. Theresearch was conducted on the national attitudes and per-ceptions of corruption in Azerbaijan. The Study surveyedover 1,000 representative households throughout the coun-try and over 200 national experts in business and focus-groups. The survey complemented desk research on cur-rent anti-corruption legislation pending in the AzerbaijanNational Parliament (Milli Mejlis).

Kazakhstan➜ Improving the Environment For Small Businesses

The OSCE Centre in Almaty together with the AlmatyAssociation of Entrepreneurs developed a project aimed atimproving the environment for small businesses in Kaza-khstan. Mobile reaction groups were created to monitorspecific inspections by state bodies. Questionnaires weredeveloped and a poll conducted among entrepreneurs toreveal problems between entrepreneurs and inspectionofficials. A training was later conducted on taxation issues.A brochure on the rights, obligations, and liabilities of thetaxpayer, as well as six mini-manuals on various enter-prise-related issues were published and distributed at thistraining.

➜ Seminar on Prevention of Corruption Related Crime:

Approaches and Instruments

The event highlighted a successful pilot project involvingthe Almaty City Court that introduced an automated sys-tem for the allocation of cases among judges as a measureof reducing corruption. One hundred and fifty judges from

across the country were given an overview of internationalstandards and practices and of other OSCE/ODIHR judi-cial reform initiatives. The event was organised by theOSCE Centre in Almaty together with the Supreme Courtof Kazakhstan.

➜ Evaluation of Transparency in the Oil and Gas Industry

The project began with the distribution of a questionnaireamong local and foreign companies working in the oil andgas industry in Kazakhstan. The results of the researchwere used to make practical recommendations and propos-als for ensuring greater transparency in the oil and gas sec-tor. The project was carried out under the framework of thecampaign “Publish What You Pay” supported by 110 inter-national organisations and companies based in Kaza-khstan.

➜ Provision of software for the fight against

money-laundering.

The project aimed to assist the newly established Anti-cor-ruption Agency by providing appropriate software to tracesuspicious financial transactions. The software helps toanalyze financial information collected electronically.

➜ Publication of a brochure on the implementation

of Article 170 of the Land Code.

The brochure prepared by the Agency on the Managementof Land Resources was translated into Kazakh and distrib-uted in all regions of the country through local administra-tions. The brochure describes procedures of the new LandCode which introduces private land ownership and thuspromotes private farm development.

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Discussing Kazakhstan's new Land Code at a workshop in Almatyon 23 April 2004. Head of the OSCE Centre in Almaty AmbassadorIvar Vikki is third from left.

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➜ Training on electronic governance and electronic

democracy: Estonian experience for Kazakhstan.

State officials, representatives of non-governmental organ-isations and businesses from Eastern Kazakhstani under-went training in the Estonian e-academy in Tallinn. Estoniais among the world leaders in the use of information tech-nologies due to active policy of state, private and non-gov-ernmental companies aimed at the development of theelectronic society. This experience was shared with partic-ipants of the training, who also visited the Estonian StateSecretariat and the Parliament.

Kyrgyzstan➜ Ecological Forum in the South of Kyrgyzstan

The project enhanced NGO capacity in solving local andregional ecological issues by providing information-resource facilities. The facilities are located in the officesof the local ecological movement “Tabiyat-Osh” and areequipped with a library and equipment necessary for view-ing video materials. The information resource facilitiesinform the public and NGOs about the present ecologicalsituation and serves as an intermediary between donororganisations and local implementing NGOs.

➜ Training workshop on writing transparent proposals

A three day training workshop was organised for environ-mental NGOs from the Ferghana Valley countries. Thetraining taught participants how to prepare a well struc-tured proposal and transparent budget. After having

learned the ways for writing proposals the NGOs formu-lated together a common project for the Ferghana Valley.The aim of the common project was to raise public aware-ness and to increase cross border co-operation on rationaland sustainable water use.

Uzbekistan➜ Promotion of Environmental Legal Advocacy

The local environmental NGO “ARMON” and the OSCECentre in Tashkent worked to increase public participationin environmental decision making in Uzbekistan.ARMON’s activities included: (1) providing seminars thataddress environmental problems in the provinces; (2) iden-tifying potential local leaders for grassroots environmentalinitiatives; (3) creating a database with environmentalinformation; (4) conducting a mass-media campaign toincrease public participation in environmental protectionmatters; and (5) providing free legal consultations.

➜ Mahallas (local government organisations) and

Environmental Protection

In order to assist local government authorities in their envi-ronmental protection activities, the OSCE Centre inTashkent, the National “Mahalla” Foundation, and theState Committee for Nature Protection conducted roundtables for Mahalla leaders focusing on Uzbekistan’s envi-ronmental laws, the state structures dealing with environ-mental issues, and how Mahallas can become moreinvolved (and better co-operate with NGOs and govern-

ment agencies) in environ-mental protection activities.The OSCE Centre forwardedthe recommendations fromthese round tables to relevantGovernment agencies.

➜ Publication of an

Information Bulletin on

Drug related issues in

Central Asia

This edition of the Informa-tion Bulletin, published by theNational Center on DrugControl of Uzbekistan, withthe financial support of theOSCE Centre in Tashkent,assists countries of CentralAsia in the fight against

NGOs presented their activities in the sphere of environmental protection and ecological educationat schools and universities. Ecological Forum in the South of Kyrgyzstan

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drugs. The information in this bulletin reviewed the resultsof anti-drug work carried out by the law enforcement bod-ies of the Central Asian countries during 2003. It detailedthe ongoing production of opium and heroin inAfghanistan, an increase in the drug flow fromAfghanistan, and the spread of HIV/AIDS in the region.

Tajikistan➜ Training workshop for journalists:

Reporting on corruption

The objective of the training was to increase awareness andthe knowledge of journalists about corruption; to raisemore active discussions about corruption and how itaffects society, and to provide the necessary training to doefficient and safe reporting on corruption issues. Thethree-day training session was held in October 2003 withan attendance of 25 journalists.

5.2 Improving the management of public resourcesOCEEA has supported a number of specific activities conducted by OSCE field presences.

Armenia➜ Labour Code Reform in Armenia

The OSCE Office in Yerevan together with the GermanTechnical Co-operation Law Reform Programme support-ed the Armenian Government to draft the Labour Code.OSCE, GTZ and World Bank experts submitted to theOSCE Office their comments, which were discussed with aworking group chaired by the Ministry of Justice at a 3-dayworking session in October 2003.Most of the recommendations wereaccepted by the national workinggroup and incorporated into thenew draft.

Bosnia and Herzegovina➜ Implementation of the Public

Administration Reform Assis-

tance Programme

The OSCE Public AdministrationReform Programme aims at ensur-ing minimum standards in thefinancial and human resourcemanagement of all municipalitiesparticipating in the programme.OSCE advisers are present in themunicipalities to support the local

administration with advice and on-the-job coaching, andproduce reports that include an action plan for 100 partic-ipating municipalities in five cantons.

➜ Assessment of public finance administration practices

The Public Administration Reform Programme of the OSCEBiH conducted a comparative Initial Assessment of all BiHmunicipalities in July 2003. OSCE staff gathered informa-tion in all 147 municipalities, mainly in the fields of publicfinance and human resource management. Over 200 differ-ent types of data can be accessed by other International andnational partners like UNDP, the World Bank, IMF, Ministryof Finances and Treasure, EC project teams and SFOR.

➜ Establishment of Municipal Planning Development

Committees (MPDC)

At the municipal level, efforts to determine developmentpriorities have been hampered by a general lack of com-munication between local authorities, businesses and citi-zens. One popular mechanism for improving such relationsis the preparation of community-based development plansto build consensus on critical issues affecting their com-munities. The OSCE offered assistance to municipalities indeveloping their structures for strategic planning methodsand assisted in the creation of sustainable economic devel-opment plans for their communities. The MunicipalDevelopment Planning Committee is responsible for initi-ating and leading the entire development process, includ-ing drafting development visions and ensuring the partici-pation of different community stakeholders.

“Press the button to get a number”. Implementation of the Public Administration Reform Assistance programme. Bosnia and Herzegovina

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Georgia➜ Customs Control Information Project

The OSCE Mission to Georgia, in co-operation with theAssociation of Young Economists of Georgia (AYEG),supported the publication and distribution of 4,000 book-lets on proper customs and border procedures for use bytraders and customs officers. The booklets were mainlywritten in Georgian, with some in Russian and English,and were distributed to traders, companies, customs offi-cials, and regional offices of AYEG. Awareness of thebooklet was increased by the Mission supported televisionand print media campaign. Advertisements in regionalnewspapers and television stations ran for three weeks inDecember 2003.

➜ Labour Code Reform

The OSCE Mission working with theGeorgian Policy and Legal Advise Centreprovided legal advice to the labour codedraft, training trade union representativesand employers’ unions, and conducted aregional conference with Georgian andArmenian labour law specialists.

➜ Regional Confidence

Facilitation Project

The Mission and the German Technical co-operation “GTZ” conducted an economicassessment of the Marnauli region border-ing both Armenia and Azerbaijan to ascer-tain economic and trading practices.Monthly meetings were held in Tbilisi with the three localNGOs conducting the economic surveys in the three coun-tries. Increasing cross-border trade flows, reducing bordercorruption, and improving local services was a commontheme.

Kazakhstan➜ The Kazakhstani Budget Transparency Initiative

The project was implemented with the Eurasia Foundationand aims to achieve accountable budget implementation inKazakhstan through public participation in monitoringactivities. It included training of NGOs on working withlocal budgets, grant competition for proposals on increaseof budget transparency, dissemination of best practices,study tour and research on expanding NGO participationin the full budget procedure. The ten-month project startedin April 2004.

➜ Kazakhstani-Russian Cross-Border Initiative

The initiative assisted small and medium enterprise devel-opment along the border of Kazakhstan and Russia. TheOSCE Mission held a conference on obstacles and oppor-tunities for improving cross-border trade to promote agrant competition for NGOs who work to lessen adminis-trative burdens thus improving cross-border trade. Theprojects were conducted jointly by Russian and Kaza-khstani NGOs in collaboration with local governments andcustoms officials from both countries.

The former Yugoslav Republic of Macedonia➜ Economic recovery and development through the

establishment of Municipal Development Fund in

Kicevo Region.

The Inter-Municipal Co-operation Pilot Project for theKicevo Region involved six-municipalities and was divid-ed into two phases incorporating a blend of technical assis-tance, training and joint-project management. The focus ofthe first 12-month phase provided 23 mayors and theirmulti-ethnic municipal staff with core training and techni-cal assistance on municipal co-operation, strategic plan-ning and project management in the context of currentreforms. The mayors and municipal staff were made awareof the types of structures that can be established to pro-mote, implement and manage inter-municipal co-opera-tion. The second phase established a model for improvingeconomic potential through the strengthening of the localinstitutions that provide services to citizens.

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Former Mayor and Nobel Peace Prize Nominee Selim Beslagic Shares Tuzla Economic Development Experience in Kicevo Valley.

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➜ Municipal Develop-

ment Study Tour in

Bavaria

During an intensive sevenday study tour sponsoredby the OSCE and organ-ised in co-operation withthe Bavarian State Govern-ment, a ten-member dele-gation consisting of fourOSCE national profession-al officers and five repre-sentatives of various Gov-ernment ministries studiedthe implementation of var-ious local governmentcompetencies. The tourincluded key areas such as,waste and water manage-ment systems, road mainte-nance, fire fighting, andprimary education. This study tour was part of a series oftechnical exchanges organised by the OSCE. A previoustour was organised in Bavaria with mayors from the Kice-vo Region where OSCE continues to work on a project tostimulate inter-municipal co-operation.

Serbia and Montenegro➜ Local Parliament for Sustainable

Development in Krusevac

The aim of the project was implementation of the Aarhusconvention in the Municipality of Krusevac, as well as thebasic principles of co-operation in a democratic society,and good governance. The basic goal was setting up theLocal Parliament for Sustainable Development and toengage all interested parties in reaching agreements con-cerning the protection of the environment and sustainabledevelopment within Krusevac Community.

The Assembly was elected, as well as its two Councils(Council of Citizens and Council of Experts) were set up.The first ever Parliament for Sustainable Development inthe Balkans took part in the process of drafting and adopt-ing the detailed Urban Plan of Krusevac in the accordancewith the Environmental Protection Law.

Tajikistan➜ Public Participation in Decision

Making through Public Hearings

The OSCE in co-operation with ABA/CELI (AmericanBar Association Central European Law Initiative) conduct-ed one-day trainings in the following areas: Kulyab, Garm,Kurgan-Tube, Shartuz, and Khujand. The participants rep-resented local government authorities (Mahallas) and localNGOs. A total of 125 individuals were trained. The objec-tives were: (1) convince governmental officials that a pub-lic hearing on a proposed law is not only theoretically ben-eficial to democracy but directly beneficial to the officialsthemselves; (2) convince governmental officials that it isnot dangerous, difficult, expensive or time-consuming tohold a public hearing; (3) educate the officials on how toorganise and conduct an effective public hearing; and (4)educate the public on why they should participate in deci-sion making and how to do it effectively.

➜ Social Partnership Club

The OSCE Centre in Dushanbe supported the implementa-tion of four sessions of the ‘Social Partnership Club’, aninitiative developed in the framework of the Public Coun-cil of the Republic of Tajikistan. Four round tables wereconducted on the following topics: inter-ethnic relations,freedom of belief, national minorities and political parties.The objective of the project was to facilitate an open dia-logue between the Government and civil society, including

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“Street Cleaning Bavarian Style”: The OSCE sponsored delegation from the former Yugoslav Republicof Macedonia receives an onsite demonstration of street cleaning in Bavaria

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representatives of political parties, movements, associa-tions, national minorities, academia and other relevantNGOs. Social Partnership club discussions took place inFebruary, October, November and December 2003.

➜ Training Workshop for Journalists on Covering

Corruption Issues

The objective of the training was to increase awareness andknowledge of journalists on corruption, to raise moreactive discussions about corruption and the effect it has onsociety and to provide the necessary training to efficientlyand safely report on corruption issues. The three-day train-ing session was held in October 2003 with an attendanceof 25 journalists.

➜ Youth Information Centre in Rasht

The Youth Information Centre is one of the key sources ofnews, civic education, and informational programmes fos-tering the rule of law and promoting democracy at the locallevel. The Centre is also an excellent instrument for capac-ity building for young journalists. The opening ceremonyof the Centre took place in December 2003.

➜ Civic Education School

Programme in Khatlon, Rasht

and Sughd Districts

The programme trained civic edu-cation teachers on the mainaspects of civil society, humanrights, democracy, economic andecologic education based on locallegislation and international stan-dards. Civic education classesbegan in September in fiveregions: Garm, Shartuz, Kulyab,Kurgan-Tube and Khujand withnine groups of 20 students in eachregion.

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A market seller counts banknotes in Dushanbe

Civic Education Classes in Garm,Tajikistan.

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Guided by the Decision No.1 on ‘Combating Terrorism’(MC(9).DEC/1) adopted at the Ninth OSCE Ministerial Coun-cil in Bucharest in December 2001, Decision No.1(MC(10).DEC/1) adopted at the Tenth OSCE Ministerial Coun-cil in Porto in December 2002, and in accordance with theStrategy Document adopted at the Eleventh OSCE MinisterialCouncil in Maastricht in December 2003, which calls underparagraph 2.1.11 for a continuation of activities aimed at devel-oping, implementing and enforcing financial legislation and reg-ulations on combating money laundering and the financing ofterrorism, OCEEA is pursuing its co-operation with UNODC tosupport OSCE participating States’ efforts to strengthen theirability to prevent and suppress terrorist financing.

6.1 National Workshops on “Combating MoneyLaundering and Suppressing Financing of Terrorism”After the successful implementation of four workshops in2002-2003, OCEEA and UNODC have continued toorganise additional sessions:

Tashkent, Uzbekistan, 6-7 October 2003Dushanbe, Tajikistan, 9-10 October 2003

The workshops constitute the first phase (awareness rais-ing and identification of needs) of a gradual and flexibleapproach with a view to enhancing capacities in combatingmoney laundering and in suppressing the financing of ter-rorism. They are to be followed by legal framework devel-opment, implementation assistance (“Mentorship”-Pro-gramme) and capacity building (specific training ele-ments). The OSCE-UNODC food for thought paper whichfurther outlines these possible contributions to interestedOSCE participating States has been distributed to delega-tions under SEC.GAL/9/03.

While in Uzbekistan the workshop was organised in co-operation with the Central Bank of Uzbekistan and thecontribution of the OSCE Centre in Tashkent, the sessionin Tajikistan was held in co-operation with the ProsecutorGeneral’s Office and the contribution of the OSCE Centrein Dushanbe. Both workshops brought international andlocal experts on combating money laundering and count-er terrorist financing together with representatives fromthe respective ministerial, judicial, and financial govern-mental bodies.

Also in order to implement the relevant provisions of theProgrammes of Action endorsed at the “Bishkek Interna-tional Conference on Enhancing Security and Stability inCentral Asia: Strengthening Comprehensive Efforts toCounter Terrorism” held in December 2001, at each of thetwo-day workshops specific issues were discussed such asthe recommendations of the Financial Action Task Force,United Nations Model Law on Money Laundering andnational laws against money laundering, the role of anti-

Combating Money Laundering and the Financing of Terrorism

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money laundering efforts in co-operation with internation-al financial institutions, e.g. World Bank and IMF, and thedevelopment of alternative remittance systems and thecash smuggling problem.

Based on the discussions in both workshops recommenda-tions were elaborated and transmitted to the respectivegovernments.

6.2 Further ActivitiesAlbania➜ Regional Workshop on Co-operation in Combating

Money Laundering and Financing of Terrorism

With the support of the OCEEA, the Economic and Envi-ronmental Unit of the OSCE Presence in Albania organ-ised together with the Ministry of Finance, Directorate forthe Fight Against Money Laundering, a Regional Confer-ence in Tirana on the “Regional Co-operation for Combat-ing Money Laundering and Financing of Terrorism” wherethe Financial Intelligent Units from the countries of theRegion expressed their commitments to prevent organisedcrime. The governmental institutions welcomed the initia-tive taken by the Albanian Financial Intelligence Unit(FIU) to set up a regular working agenda on a regionalbasis.

➜ Capacity Building and Training of Albania's

Financial Intelligence Unit (FIU) in the Fight against

Money Laundering.

In response to the need for required skills to analyse datato the Department for the Co-ordination of the Fightagainst Money Laundering in the Albanian Ministry ofFinance, the OSCE supported the department with thedevelopment of appropriate software for analysing finan-cial information collected electronically and training theFIU staff on the analysis of financial information througha study tour held in Slovenia on 5 - 9 May 2003.

Armenia➜ Awareness raising by parliamentarians on Combating

Money Laundering and Suppressing the Financing of

Terrorism

During the drafting process of the legislation on Combat-ing Money Laundering and Counter Financing of Terror-ism (CML/CFT) and as a follow up to the national work-shop held in March 2003, the OSCE Office in Yerevanorganised workshops for the National Assembly to famil-iarise parliamentarians on the basic anti money-launderingand counter financing of terrorism (AML/CFT) standardsto discuss international requirements to AML/CFT sys-tems and to develop actions to be undertaken by the Gov-ernment of Armenia.

Kyrgyzstan➜ Follow-up to the National Workshop on “Legal

Framework on Anti Money Laundering and Counter

Financing of Terrorism (AML/ CFT)”

The OSCE Centre in Bishkek in co-operation with theUNODC organised on 23-24 April 2003 a Roundtable Dis-cussion on “Creating Anti-Money Laundering and CounterFinancing of Terrorism (AML/CFT) Legal Framework:Follow-up the National Workshop held on 30 September-1October 2002”. The objective of the roundtable was toexamine the existing national law subject to its correspon-dence to international standards and ability to meet opera-tive challenges in the field of money laundering. The par-ticipants suggested establishing a “Financial IntelligenceUnit” in Kyrgyzstan and expediting adoption of appropri-ate national legislation with assistance of internationalinstitutions.

Combating Money Laundering and the Financing of Terrorism

OSCE Ambassador Lipponen gives the welcome speech to theRegional Workshop on Co-operation in Combating Money Laundering and Financing of Terrorism,Albania

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Consistent with its mandate, OCEEA supports SME develop-ment as a means to create new economic opportunities andstrengthen democratic and market principles in countries intransition. The new Strategy Document underscores the impor-tance of “developing a business-friendly environment and pro-moting small and medium-sized enterprise(s) (SME)”.

OCEEA’s assistance to SMEs serves a catalytic rather than adevelopmental function and is often undertaken in the contextof conflict prevention and post-conflict rehabilitation. Specialfocus is being paid to educating young populations on the fun-damentals of entrepreneurship (e.g.: Youth EntrepreneurshipSeminar Programme (YES)) in post-conflict regions and transi-tion economies as a means of broadening economic perspec-tive and opportunities for the future, supporting private sectorand human capital development, and fostering an understand-ing of the importance of socio-economic reforms.

In co-operation with its field missions, OCEEA brings valuableresources to communities with weak institutions and emergingprivate sectors and thereby helps strengthen local capacities forbusiness development. Through the provision of training andcapacity building activities, at times coupled with small amountsof financial assistance, OCEEA enables SMEs and potentialentrepreneurs to respectively strengthen and develop their busi-ness operations as well as to facilitate the local institutionalinfrastructure to support SMEs.

OCEEA also targets assistance to vulnerable population groupswhich are often not within the scope of international donorassistance programmes and in doing so encourages greatereconomic opportunities for minorities, ethnic groups, small farm-ers, women, and others.

7.1 Promoting Entrepreneurship and SME Development

7.1.1 The Youth Entrepreneurship Seminar Programme (YES) The YES Programme is a training activity that targetsyouth (ages 15 to 25) and provides them with the funda-mental elements of starting a business. The YES aims notonly to promote entrepreneurship among the youth but alsoto stimulate youth participation in the political and eco-nomic reforms process in their countries. The YES consistsof two levels of training, YES I and YES II, providing ageneral and more in-depth understanding of entrepreneur-ship ranging from one day to 4 day training sessions.OCEEA has encouraged the replication of the YESthroughout many of its field missions as an economicempowerment activity. The YES is often adapted to meetthe needs of the respective country and target group andhas been implemented in co-operation with partners,including with Southeast Economic Enterprise Develop-ment (SEED) in Southeast Europe and German TechnicalCo-operation (GTZ) in the Caucasus.

Economic Dimension

7. Further Activities in the Economic Dimension

YES Implementation in OSCECountries

Albania:10 YES I seminars; 262 people trainedArmenia:YES I over 200 people trained; 300 informed in the business fairsAzerbaijan:6 YES I seminars; 131 people trained Bosnia and Herzegovina:10 YES I and II seminars; over 300 persons trainedThe former Yugoslav Republic of Macedonia:YES I implemented in former crisis regionsSerbia and Montenegro:YES I and YES II delivered in regions of highunemploymentUzbekistan:YES I delivered targeting university students

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In Albania, the YES seminars were delivered in five citiesbetween June and December 2003. Due to the greatdemand for participation, the YES Programme will beexpanded with a series of eight seminars during the firstand second quarters of 2004. In complement to the firstphase, the 2004 YES II seminars will provide more in-depth information on the main elements of entrepreneur-ship, including market research, finance, forecasting, andthe business plan.

Based upon the feedback from the participants of YESSeminars, the project ‘Introducing Business Ethics toAlbanian Universities’ was developed with the aim tostem corruption, promote understanding and improve thepractice of business ethics among the next generation inAlbania.

In Armenia, the YES Programme was quite comprehen-sively implemented and provided entrepreneurship infor-mation in various mediums, including business fairs, tele-vision and a web portal. One day training workshops wereorganised in the regions of Tavush and Lori identified fortheir difficult socio-economic situation due to a borderconflict, a devastating earthquake and high unemployment.

In Azerbaijan, the YES was implemented in co-operationwith the German Technical Co-operation (GTZ), in theregions of Tovuz, Gadabay, Gazakh/Agstafa and Siyazantargeting over 200 young people between the ages of 15 to25. An initial train-the-trainers workshop helped to buildthe capacity of local practitioners and allowed for futuresustainability. In response to the level of interest a future 5-day business plan training and business plan competition isplanned.

In Bosnia and Herzegovina, eleven Youth Entrepreneur-ship Seminars (YES) were conducted in partnership withthe Southeast Europe Enterprise Development(SEED)/World Bank Group, raising business awarenessamong more than 200 young people. Within the context ofthe YES, internships in private enterprises and local gov-ernment administrations were promoted. In addition 35YES-seminars in locations with potential for longer-termfollow up are being organised in 2004.

In the former Yugoslav Republic of Macedonia youngfuture entrepreneurs from various ethnic communities par-ticipated in the YES seminars organised by the OSCESpillover Monitor Mission to Skopje and the SoutheastEurope Enterprise Development (SEED). The seminarsheld in Kumanovo, Gostivar and Kicevo, focused on teach-ing the development of creative business concepts and thebasic elements of drafting a small business plan.

Economic Dimension

Youth Entrepreneurship Seminars (YES), Bosnia and Herzegovina

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“Such workshops are a good way to build bridges

between young people from various ethnic commu-

nities in the country by bringing young people

together to explore areas of common interest in a

fun and light-hearted learning environment. Busi-

ness has always been one sector of society that has

connected people in the Balkans.” A participant at

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Young people learn the basic elements of a Small Business Plan, Kicevo (The former Yugoslav Republic ofMacedonia)

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In Uzbekistan the YES seminars were organised in con-junction with the National Youth Social Movement“Kamolot” and targeted students of economic faculties ofthe main Universities. Seven one-day seminars were heldin Tashkent as well as one seminar in 6 of the country'sprovinces.

In Serbia and Montenegro the YES Programme hasrecently started to be implemented in Southern Serbia witha 7 training sessions of YES I planned for the first quarterof 2004, to be followed by a series of YES II trainings bymid-year. SEED and the Union of Employers of Serbia andMontenegro served as implementing partners.

The YES Programme is currently under preparation inGeorgia.

Other activities targeted at developing SME and Entrepreneurship:

➜ Fair Employment Project (FEP) – Bosnia and

Herzegovina

The main objective of the Fair Employment Project (FEP)is to address discriminatory employment polices byincreasing the level of understanding of employers andemployees of the right of equal treatment for all. The FEPaims to promote hiring practices that ensure the develop-ment of a labour market that supports a sustainable returnand free movement of workers. The FEP works with the

largest public and private companies to incorporate fairemployment principles in their personnel policies. More-over, the FEP involves the provision of technical adviceand assistance to employers in the areas such as recruit-ment, advertising, and harassment policies, among others.

➜ Start your business (SYB) - Croatia

The SYB was implemented by the Centre for Entrepre-neurship Osijek (Eastern Croatia) in partnership with sev-eral other NGOs within the areas of three OSCE FieldCentres - Knin (Southern Croatia), Sisak (Central Croatia)and Vukovar (Eastern Croatia). The SYB is a globallyrecognised programme introduced in more than eightycountries with the International Labour Organisation(ILO) trademark and encompasses management trainingwith a focus on starting small businesses as a strategy forcreating more and better employment opportunities. Aseries of SYB training courses were provided to six groupsfrom 12 to 15 participants, who had either already startedor wanted to start their own business.

➜ Revitalisation of the Zadar County Hinterland -

Croatia

The project was implemented by the Association “Eko”Zadar (South Croatia) and illustrates an example of thepioneering role of the NGOs in creating better conditionsfor economic revitalisation as well as a tolerant climate fora sustainable return in the hinterland of Zadar County. Thisinitiative assisted in the alleviation of frustrations causedby the poor social and economic conditions leading tointolerance among population, returnees and settlers. Byfocusing on the neutral common goal of the job creation inorganic farming, the project promoted cohabitation andreconciliation among different ethnic communities.

➜ Entrepreneurship/Management Development Train-

ing programme For SMEs – Serbia and Montenegro

The project addressed people with higher educationemployed in various companies in Kragujevac, Sumadijadistrict, yet poorly motivated and with greatpossibility/risk of becoming redundant as these companiescontinue downsizing of their personnel. The training aimedto encourage these people to broaden their business views,enabling them to start-up and/or expand their businesses,thereby resulting in the creation of new job/entrepreneurialopportunities in the district.

Economic Dimension

“Discrimination in employment is prevalent throughout the coun-try, posing a significant obstacle to economic growth and barrierto sustainable return” OSCE helps tackle this problem with theFair Employment Project, Bosnia and Herzegovina

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➜ SME support programme “Business Incubator

Centre” – Serbia and Montenegro

The overall goal of the project is to help development ofthe municipalities through creating the infrastructure forsupporting SMEs and job creation. In accordance to thenew OSCE Strategy Document, the OSCE and Timok Clubagreed upon co-operation in the implementation of thisproject to set up a Business Incubator Centre in Knjazevac(Eastern Serbia). With the aim of increasing economicdevelopment opportunities, the Centre will promote coali-tions among business organisations, local governmentsand civil society. The Project has been supported by sever-al donors. The Centre is to be officially opened in July2004.

➜ Training of Trainers on the “Start and Improve your

Business” (SIYB) Programme - Tajikistan

Fifteen experienced business trainers took part in the sem-inar conducted in Dushanbe over ten working days. Thetraining-of-trainers was conducted by two Tajik seniortrainers qualified by the International Labour Organisation(ILO).

The trained personnel will render assistance and guidanceto entrepreneurs and participate in the development of theprivate business sector in various parts of Tajikistan. As afollow-up of the seminar each of the participants conduct-ed two five-day trainings on their own according to theILO methodology, before they were awarded the certificateof competence.

➜ Support to Small and Medium Scale Enterprises -

Turkmenistan

This project was designed to support the establishment andsubsequent activities of the resource centre of the Union ofEntrepreneurs of Turkmenistan. The respective trainingevents, four roundtable workshops and four seminars wereinitiated in April 2003 and went on throughout the year.Two related guide-books were produced and distributed.The resource centre was completed in August 2003 and itopened its doors for training and reference services in Sep-tember. The OSCE Centre in Ashgabad supported trainingactivities in 2004.

➜ Training for Trainers on Entrepreneurial Skills

Advancement - Turkmenistan

The target group of trainees was composed of young busi-nessmen and women. The project aimed at providing the

participants with a solid basic knowledge of selected top-ics in management and administration in order to enablethem to disseminate this newly acquired know-how amongother young entrepreneurs and interested groups. Threenational two-day workshops are planned and will to beimplemented by local NGOs with external expertise pro-vided by OSCE Centre in Ashgabad, starting in April 2004.

7.1.2 Empowering Vulnerable Population Groups

The following activities, specifically targeted atempowering women, were conducted:

➜ Training Workshop for Women Entrepreneurs -

Azerbaijan

The OSCE Office in Baku in co-operation with the Inde-pendent Law Centre, a local NGO, organised a series oftraining sessions in ten regions of Azerbaijan for womenentrepreneurs. The training was designed to equip partici-pants, specifically women, with the fundamentals neces-sary for owning and operating businesses. The trainingfocused on the rights and obligations of entrepreneurs inAzerbaijan, including such topics as enterprise registra-tion, tax obligations, marketing strategies, and businessplan development.

➜ Women Entrepreneurs Conference - Azerbaijan

On 21 November 2003, the OSCE Office in Baku spon-sored a National Conference on Women Entrepreneurshipin Azerbaijan in co-ordination with the Independent LawCenter. The Conference, well-attended by Azeri govern-ment officials including the Minister of Economic Devel-opment, sought to promote acceptance of women entrepre-neurship throughout the country. The Conference was alsoattended by approximately 30 women entrepreneurs fromten regions of Azerbaijan and various international devel-opment agencies.

➜ Cross-border Co-operation Aiming at Economic

Empowerment of Women - Croatia

The project was implemented by the NGO Project of Civ-il Democratic Initiative from Vukovar (Eastern Croatia). Itaimed at the economic empowerment of women by pro-viding “start up training” in entrepreneurship for prospec-tive business owners. In addition the training linked busi-ness women from three neighbouring countries (Croatia,Serbia and Montenegro and Bosnia and Herzegovina) inorder to create preconditions for cross-border co-operation

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of business women, exchange of experiences and contribu-tion to reconciliation efforts and establishment of trustacross the sub-region.

➜ Entrepreneurial Skills & Training for Women -

Croatia

The project was implemented by the Association for Cre-ative Development from Osijek (Eastern Croatia) and ledto new employment opportunities. This project is a part oflarger programme aiming at empowering low or no-income women to generate income in various activities andto build their capacities through training, consulting andtechnical assistance. The project also provided informationon marketing services and introduced the model of non-profit enterprise.

➜ Promoting the involvement of repatriated Women in

Small and Medium Size Enterprises - Kazakhstan

Approximately, 500 repatriated women from five regionsin Southern Kazakhstan received training in basic entre-preneurial skills, allowing nearly 80 of them to open theirown businesses during the seven month implementation ofthe OSCE Project “Start Your Own Business” (mainly inhandicraft production). Women were also supported to selltheir products at a handicrafts fair.

➜ Workshop on “Enhancing Gender Participation in

Economic and Social Development in Rural Areas” -

Kyrgyzstan

A two day-workshop to encourage women to start smallbusinesses in rural areas was organised by the OSCE Cen-tre in Bishkek in co-operation with the Women's Congresson 29-30 January 2004 in the Shokopov district.

The workshop promoted women entrepreneurship andassisted in the process of economic revitalisation and jobcreation in rural regions. The topics covered at the work-shop included introducing basic elements of entrepreneur-ial thinking, key theoretical knowledge and practical skillson business plan development, the laws and regulationsaffecting businesses in Kyrgyzstan and business ethics.The workshop also provided information on the availabili-ty of credit resources from both international and Kyrgyzinstitutions as well as information on other business support services.

A series of similar two-day workshops were implementedin the Kara Balta district on 4-5 March 2004, and inTokmok town on 26-27 March 2004.

➜ Business Women Project - Uzbekistan

The OSCE Centre in Tashkent in conjunction with theWomen’s Committee of Uzbekistan conducted a projectentitled “Women and Business in Uzbekistan”. The projectconsisted of two parts: i) establishing an “Information Con-sulting Centre” to enable women entrepreneurs to access theinformation related to private business development andchanges in legislation, and ii) organising a series of work-

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Exhibition of the products of participants in business training forrepatriated women, Kazakhstan

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shops “Development of Women Entrepreneurship in Uzbek-istan” in eight provinces. Approximately thirty womenentrepreneurs from each province attended the workshops,which focused on increasing their knowledge about the specific elements of doing business in Uzbekistan.

➜ Sewing workshop – Tajikistan

The OSCE supported the establishment of the sewingworkshop in an effort to address the socio-economic prob-lems of the Ghozimalik district which make young womenand girls particularly vulnerable within the society. Theproject aimed at job creation, provided vocational trainingand the working environment for twenty young women.Moroever, it provided a needed service to the local market.

➜ Establishment of a Bakery in Bokhtar District -

Tajikistan

The project expected to develop a sustainable and prof-itable bakery that also served as a business incubator. Thetarget group were unemployed women in Bokhtar districtoutside Qurghonteppa. The project beneficiaries wereselected among vulnerable women who have some experi-ence in baking and cooking. Specifically twelve women –professional bakers, began producing candies and cookies,and one month later other women selected from the vul-nerable group were offered an opportunity to receive voca-tional training in cooking. A total of 36 project beneficiar-

ies were targeted. Several prob-lems such as a high unemploy-ment and violation of humanrights concerning women in thisregion were addressed in partthrough the project.

➜ Business Trainings for

Women in Qurghonteppa -

Tajikistan

During the period from 14 Augustto 24 December 2003, a total of tenseparate three-day trainings werecarried out at various locations inthe Qurghonteppa region. The totalnumber of beneficiaries was 200persons (118 women and 82 men)with different backgrounds andbusiness experience.

The following districts were covered: Qurghonteppa town,Sarband, Gozimalik, Khojamaston, Jilikul, Kumsangir andKolkhozobod. The objective was to provide the partici-pants with a basic understanding of private business eco-nomics. The topics taught included legal and tax issues,management, marketing, and financial sustainability.

7.1.3 Promoting Economic Growth in Rural Areas

➜ Solar Energy for Water Supply - Albania

The project “Solar Energy for Water Supply to Hysgjokajand Stravec Communes” provided the first concrete exam-ples of using photovoltaic technology for solving, in a sus-

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Photovoltaic panels installed on Hysgjokaj village, Albania

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tainable manner, the severe problem of electricity andwater supply in rural areas in Albania. It was implementedin two communes in central Albania by the Albania-EUEnergy Efficiency Centre with the support of the OSCE. Itwas followed by a public awareness campaign and train-ing programme to promote the project in other rural com-munes of Albania.

➜ Developing Rural Enterprise - Belarus

The OSCE Office in Minsk implemented a number oftasks in conjunction with UNDP to promote and developrural enterprise, both in a local pilot project on rural entre-preneurship and at the national level with the context ofnational activities on Small and Medium-Sized Enterpris-es (SME) development. Two hotlineswere established offering judicial andcommercial advice to new entrepre-neurs and advertised by a national TVand radio advertising campaign. Inconjunction with local entrepreneursthe Office provided assistance toestablish a rural SME support centrein Komarova, in the Myadel region.

➜ Training on farming for rural

population - Kazakhstan

The training was conducted duringJuly 2003 in the Aktyubinsk region.More than 100 farmers were trainedon business planning, economic fore-casting, marketing, and basics ofbanking systems, including leasing,crediting, banking accounting and

information on available crediting programs for farmers.The training included practical work at the Ormantay farmspecialised in sheep. The major aim of the project was toshow importance of specialisation of farms for specificproducts.

➜ Development of Eco-tourism - Kazakhstan

The project aimed at developing eco-tourism in Kaza-khstan by assisting local communities and small touristcompanies in the organisation of eco-tourism business. Itincluded market research to analyse and determine optimallocations and potential target groups for eco-tourism in thecountry; three pilot projects were selected through tender,and were coupled with a conference on the site of one ofthe projects and the publication of a brochure.

➜ Agricultural training for private farmers in Shuroo-

bod district and Rasht Valley - Tajikistan

The objective of the training was to increase profitabilityand expand the range of income-generating activities inlocal agriculture. Three topics were addressed: (i) How toachieve two harvests in one agricultural season; (ii) Cattle-raising and poultry breeding, and (iii) Local processingand marketing of food-produce.

The training took place from July to November 2003 Atotal of 125 farmers took part in the Shuroobod district(south-eastern Tajikistan), and 201 took part in Rasht Val-ley (central-eastern Tajikistan).

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Monitoring of the Aksu-Zhabagly nature reserve, Kazakhstan

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➜ Local Economic Development Project (LEaD) -

Ukraine

The LEaD project, launched in the mid January 2004, aimsto support SME development at the regional level by targeting resources to under-served areas of Ukraine. Byworking with the Ministry of Labor and Social Policy andother stakeholders, the project will build local business sup-port infrastructure by strengthening the capacity of theregional employment centres and establishing advisorycentres to meet the needs of the business community. Indoing so, conditions for public-private dialogue and co-operation will be enhanced as will be local ownershipfor economic development.

7.2 Building the Capacity of Decision Makers andother Stakeholders

➜ Free Trade Agreements project - Albania

Following the signing of Free Trade Agreements in SouthEastern Europe, the OSCE and the Institute for Develop-ment Research and Alternatives (IDRA) supported theMinistry of Economy of Albania in facilitating a country-wide political dialogue between government experts andbusinessmen. This project consisted of the following ele-ments: (i) Organisation of a countrywide series of 10 sem-inars on the opportunities and problems of free tradeagreements of Albania with South Eastern Europe coun-tries, from November 2002 to April 2003; (ii) the prepara-tion by IDRA of a brochure on “Free Trade Agreements –Opportunities and Challenges” .

➜ The Role of Local Government in Social and

Economic Development Implementation - Albania

The OSCE Presence in Albania and the National Strategyfor Social and Economic Development (NSSED) Unit atthe Ministry of Finance as implementing partner are devel-oping a project on “The Role of Local Government in

NSSED Implementation”, with the aim to increase humancapacity in of the local government. For this purpose aNational Conference was organised on 4 December 2003,with representatives of local government on NSSED prior-ities and indicators of progress.

A second phase followed, during February 2004 with theorganisation of three regional roundtables with representa-tives of local government from the regions in North, Cen-tral and South of Albania to discuss the strategy indicatorsand their results

➜ Forum on Local Economic Development - Armenia

A workshop to discuss the factors inhibiting local area eco-nomic development with the participation of provincialand National Authorities, businesses, NGOs and politicalparties, international organisations and donors was held on6 and 7 October 2003 in Armenia's most remote province(Syunik Marz). At the conclusion of the workshop, a work-ing group was formed consisting of public and private sec-tor representatives to develop a local area developmentstrategy. As a follow up to the workshop, the mission pro-vided assistance by helping establish a Working Group todevelop the Syunik Province Economic DevelopmentStrategy with a special focus on SME development and jobcreation.

➜ Development of a Chamber of Commerce and

Industry System in Armenia

The aim of this activity was to transform the Chamber ofCommerce and Industry (CCI) network into viable andself-sustainable institutions to effectively represent andadvocate the rights of their members and the whole busi-ness community, including assisting with membershipdevelopment, consultancy services, and training and infor-mation services.The project was divided into three stages:

Stage I: From 12 to 19 November 2003, at the requestof the OSCE Office in Yerevan, the InternationalChambers of Commerce (ICC) conducted a compre-hensive assessment of the current situation in theChamber system provided with a set of recommenda-tions to upgrade the Chambers.Stage II: From 3 to 19 December 2003, the OSCEOffice in co-operation with German Technical Co-operation (GTZ) organised a study tour for representa-tives of Armenian Chambers and other business sup-port organisations to learn how similar institutionsfunction in Germany. As follow-up to the study tour,the Office organised a two-day Workshop on the sub-ject: “The role of the Armenian CCI’s, the economicsystem and the development strategy” which was heldon 15 and 16 January 2004 in Tsakhadzor, a villagenear Yerevan. Stage III: OSCE Office provides support in imple-menting the recommendations contained in the reportsubmitted by the ICC throughout 2004.

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➜ Public Awareness of the Economic Impact of Local

Conflicts in Border Provinces - Armenia

The OSCE Office in Yerevan published a report, whichgathered and analysed information on the conflicts rele-vant to the daily lives of the population in the conflictregion. The report contained information on the institu-tions monitoring these conflicts and the economic impactthat these conflicts have on the population of the region ofconcern. The report was discussed with the administrationof the border province. A film illustrating the issuesdescribed in the report was produced for future presenta-tion and discussions with stakeholders.

➜ Trade Facilitation in the South Caucasus - Armenia

The OSCE Office in Yerevan provides funds to the imple-menting partner, Eurasia Foundation, for the publication ofbulletins on customs and international trade related legis-lation, information on procedures and regulations, andavailable statistics on volume of trade and the type ofexported/imported goods as well as hold regular on-lineconsultations on the import/export related issues. Theactivity will be implemented in the second half of 2004

➜ Economic Training for Municipalities - Azerbaijan

In co-ordination with the International Foundation for Elec-toral Systems (IFES), the OSCE Office in Baku organised atwo-day training for the staff ofapproximately eighteen munici-palities in the Baku, Nakichivan,and Lenkoran regions. IFEStrained and deployed teams oftrainers to conduct training andaddress specific economic andSME development issues. Theproject promoted more effectivelocal democracy by encouragingimproved organisational manage-ment and providing humanresources training, raised the levelof information on strategic plan-ning in economic affairs and theestablishment of SMEs at themunicipal level.

➜ Training Workshop for Journalists on Managing

Resource Wealth in Baku - Azerbaijan

On 17-19 November 2003 the Office participated in aTraining Workshop for Journalists on Managing OilWealth. The Training Workshop was co-organised by theAzerbaijan chapter of the Open Society Institute, the Ini-tiative for Policy Development, and the Public FinanceMonitoring Centre, an Azeri watchdog NGO. Participantsof the Training Workshop included the Nobel Prize-winnerJoseph Stiglitz. The conference gave insight into and dis-cussed the principles of how oil wealth can be managed tothe maximum longer term benefit of society as a whole.

➜ Reform of the Pension System - Belarus

The OSCE Office in Minsk in collaboration with the Min-istry of Labour and Social Protection developed a pro-gramme to invite a team of experts to Belarus for discus-sions on the options available for reforming the pensionsystem in Belarus. The results of these discussions wereconsidered within the context of the planned reform of theBelarusian pension system

➜ Roma settlements survey – Bosnia and Herzegovina

In November and December 2003, OSCE field staff andmembers of the Council of Roma for BiH conducted a sur-vey of 767 Roma households throughout BiH. The purpose

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Lack of recognition of property rights creates obstacles to the exercise of other rights such aseducation, healthcare and participation in elections, as well as creating barrier to employment”Roma settlements survey, Bosnia and Herzegovina

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was to assess for each household whether it was located onsocially-owned or private land, and whether the householdwas legally recognised or registered. The project revealedthat large numbers of Roma live in imminent danger ofeviction because their property rights, in some cases estab-lished over several decades, are not legally recognised.

➜ Education reform and vocational education –

Bosnia and Herzegovina

Education reform is a key priority in Bosnia & Herzegov-ina, and the OSCE Mission to BiH plays an integral role inco-ordinating and facilitating the reform efforts. Educationand the economy go hand in hand and reform prioritiesinclude modernizing the system to ensure that activitiesare responsive to labour market needs and students arewell-equipped to find competitive jobs after graduation.Of particular relevance is the work of the Education Work-ing Group for Quality and Modernisation of VocationalEducation and Training (VET). This working group recent-ly opened its doors to additional stakeholders from the eco-nomic field and is reviewing means to improve the labourmarket relevance to VET education by promoting entre-preneurship skills and introducing entrepreneurial trainingat VET secondary schools.

➜ Economic Analysis in the Energy Sector - Georgia

The Mission conducted a political analysis in the energysector through August 2003, focusing on changes in theelectricity and gas sectors. The monthly analysis focusingon exchange rate fluctuations and the banking sector of theGeorgian economy was established in autumn to assist theMission’s finance department in operational decision-mak-ing and programmatic planning.

➜ Regional Conference on “Dispute Resolution as an

Instrument to facilitate SME Operations in the Business

Environment”- Kyrgyzstan

The OSCE Centre in Bishkek in co-operation with the Sec-retariat on Foreign Investment organised a two-day Region-al Conference on “Dispute Resolution as an Instrument toFacilitating SME Operations in the Business Environment”,which took place on 10-11 November 2003 in Bishkek.

The objective of the conference was to discuss and todetermine how dispute resolution mechanisms might playsome role as an incentive for SMEs to enter into the mar-ket, and create a favourable business environment in Cen-tral Asian States. Furthermore, the conference aimed atpromoting the establishment of alternative dispute resolu-

tion mechanisms at both national and regional levels. Theparticipants identified as main priorities the establishmentof a Regional Information Centre and a library on arbitra-tion, and building capacities of local judges, experts andarbitrators on commercial dispute resolution by providingtraining and educational programmes.

➜ National Forum on Third Party Arbitration - Kyrgyzstan

As a follow up to the recommendations of the First andThird Preparatory Seminars for the 12th OSCE EconomicForum, the OSCE Centre in Bishkek provided funds to aNational Forum on Third Party Arbitration in Kyrgyzstan.The Forum aimed at encouraging discussion and support fordraft amendments to the Civil Procedure Code, and raisepublic awareness about the creation and use of private sec-tor institutions for third party arbitration. The Forum tookplace in mid March 2004.

➜ National Business Opinion Survey in Kyrgyzstan

The OSCE Centre in Bishkek provided funds for a nation-al business opinion survey in Kyrgyzstan. The surveyaimed at improving the business environment for SMEdevelopment in Kyrgyzstan by analysing the real situationin the SME sector and the perceptions and opinions ofbusinesses about the current business environment andchanges required.

➜ Kyrgyz Political Economy: Moral Perspectives on the

Transformations of the Society - Kyrgyzstan

The OSCE Centre in Bishkek will provide funds forresearch on the Kyrgyz political economy. The project willexplore how market, social and moral values affect socialrelationships as individuals and institutions come to termswith the market economy. The project aims to explore howthe economy is morally embedded, so that the objectivesare to paint how daily economic practices are replete withmoral dialogues of responsibilities of various forms andintensity, and how they are discussed and resolved. Theproject also aims to investigate to what extent there areemerging or differing moral consensuses on various topicswithin the market society.

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➜ Institutional Capacity Building in Montenegro -

Serbia and Montenegro

Two projects started during 2004 to contribute to the eco-nomic development of one region in northern Montenegroand six municipalities on the coast.

In northern Montenegro, formal support and co-operationwas achieved by institutionalizing the task force and sign-ing a Memorandum of Understanding and Co-operationfor the development of the Bjelasica and Komovi regions.The project included the organisation of four workshops.On the coastal area, the objective was to enhance thecapacity of employees of local governments to engage ineffective communication with international and localinvestors and donors, as well as to effectively and profes-sionally manage projects by which municipalities would beable to attract more potential investors and donors. Train-ing in (1) strategic planning, (2) project management, (3)negotiation skills and (4) conflict management, wasplanned for staff of Herceg Novi, Kotor, Tivat, Budva, Barand Ulcinj.

➜ Survey of Tajik Industry - Tajikistan

The objective of the project was to collect information andto get a proper picture of the present state of Tajikistan’sindustrial enterprises and of the type and scope of the chal-lenges at hand. Furthermore, the project was expected togenerate important information about potential beneficiar-ies in future economic development projects, financed byeither the OSCE or by other donors. Also, the project wasexpected to provide the OSCE with interesting input on thestate of affairs in Tajikistan’s industrial enterprises, a partof society that has a direct and indisputable impact on thecountry’s security situation.

➜ Improvement of Taxation Mechanism for SME -

Turkmenistan

The OSCE Centre in Ashgabad assisted the State Tax Ser-vice in its attempt to improve the taxation mechanism,especially with regard to SMEs, by developing the respec-tive software, training the staff to operate the revised mech-anism and by providing user information to the businesssector. Hardware was also provided for the development ofthe mechanism. A users’ guide-book was prepared and dis-tributed. Activities continued from July until the end of2003. Selected follow-up actions are planned for 2004.

➜ Production of a Guide-book on State Support to

SMEs - Turkmenistan

The project aims at raising the level of awareness of busi-nessmen and fiscal and other relevant government officialsof the ways and mechanisms SMEs activities are support-ed with public funding, or training and information shar-ing, organised by state authorities. The first phase of thisproject comprises the compilation, printing and contentsanalysis of a book about the state and public support toSME in selected countries, planned for April 2004. A fol-low-up training event is envisaged.

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“Social and moral values affect social relationships as individualsand institutions come to terms with the market economy”.A Market in Bishkek, Kyrgyzstan

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➜ Review of Turkmen Legislation on Enterprise

Activities - Turkmenistan

The aim of this project was the review and publication oflegislation dealing with enterprise activities. The initialintention was to contract local NGOs to perform the tasks,but due to the prolonged uncertainty about the newly intro-duced registration requirements, two local legal expertswere commissioned as consultants. The resulting bookletwas completed and printed in January 2004, and distrib-uted to the business community.

7.3 Promoting the Access to Finance and Investment➜ Micro Finance Practitioners’ Conference - Azerbaijan

On 5-6 December 2003, the OSCE Office in Baku organ-ised a Micro-finance Practitioners Conference in co-ordi-nation with the Azerbaijan Micro-finance Association. Asthe Micro-finance industry in Azerbaijan provides criticalsupport to the development of SMEs, particularly in theless-developed regions outside of Baku, the aim of theConference was to consolidate and promote best practiceswhile developing strategic plans for the industry. The Con-ference gathered all the international micro-finance agen-cies, relevant Azeri Government officials, and internation-al donor organisations in Azerbaijan to discuss themessuch as agricultural lending, arrears management, com-mercialisation of micro-finance, internal control, and reg-ulatory affairs.

➜ Promoting the Access to Finance and Investment in

Kazakhstan

The project, started in December 2003, aims at improvingperformance of finance institutions. It includes a trainingon Microfinance Impact Assessment for credit societiesspecialists from five regions of Kazakhstan, already heldin Almaty in December 2003. A self-assessment is to beconducted by the participants of the training at theirrespective organisations during three months as well as asummary conference is planned for August 2004.

➜ Community-based economic development in the

Ishkoshim district - Tajikistan

The overall objective of the project was to increase thecapacities of Village Organisations and Committees of Vil-lage Organisations in the Ishkoshim district to function asindigenous, community-based development agencies. Theobjective was achieved by training key personnel in finan-cial management and local planning methodology, and byproviding the Committees of Village Organisations withmicro credit funds.

Financial Management trainings were conducted for 144beneficiaries, and Village Management Planning trainingsfor more than 1.800 beneficiaries.

➜ Conversion of the Zherebkovo military town - Ukraine

This project aimed at fostering the socio-economic devel-opment of the former military town of Zherebkovo. Theimplementing organisation developed and concurred withlocal authorities an action plan that envisages the creationof a local economic development model to solve the mostpressing issues the community is facing. The next phasewill be the creation of a credit union to provide local entre-preneurs with financing, and a series of training seminarstargeting the local community. The project will also assistthe Zherebkovo community in developing the industrialzone concept based on innovative technologies of growingand processing of agricultural products. The project com-pletion is due in May 2004.

➜ Economic Prosperity through Investment Promotion

(EPIP) - Ukraine

EPIP will contribute to improved investment prospects ofthe Rivne region in Ukraine through an integrated invest-ment promotion approach. This approach envisages closeco-operation of businesses, local authorities and interna-tional institutions that are looking for investment opportu-nities. The project will organise a study trip to neighbour-ing Poland for local businesses and authorities to learnfrom Polish experiences in attracting investments. Therewill also be assistance rendered to the Rivne regionaladministration in organising an investment fair in theRivne region.

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Commander of the military town Zherebkovo presents militarybase infrastructure. Odessa region, Ukraine.

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Environmental degradation, resource scarcity, the uneven distri-bution of natural resources or resource abundance are emergingas potential triggers or accelerating factors of tensions within andamong nations. Environmental decline and resource scarcity donot normally cause conflicts by themselves, but are one strandwithin a complex web of causality, in which a series of socio-eco-nomic problems – such as population pressure, poverty, migra-tion, refugee movements, political instability and ethno-politicaltensions – are intertwined. Environmental degradation and nat-ural resource scarcity are both causes and outcomes of thesesocio-economic problems or are intensified by them.The increas-ing scarcity of freshwater resources, the loss of ground cover veg-etation, desertification, global climate change and rising sea lev-els are primarily the outcome of human-induced transformationprocesses and the result of resource-intensive, partially resource-wasting patterns of production and consumption, and of inade-quate agricultural practices. In combination with the above-men-tioned socio-economic problems, they can pose substantial risksto national and international security.

On the other hand, measures that reduce environmental stress,guarantee access to vital resources and remove economicincentives for conflict, present opportunities for enhancingregional co-operation, human security and building sustainablepeace. Environmental co-operation can strengthen mutual trustand be a basis for deeper peace-building and sustainablehuman development.

Through the activities catalogued in this report as (1) Environ-ment and Security, (2) Hazardous Waste and (3) Water andSecurity, OSCE aims at enhancing peace and stability by (a) fos-tering co-operation where the environment or natural resourcesare pertinent to potential conflicts and the environment or nat-ural resources are part of the solution; (b) promoting environ-mental peace-making where the environment or naturalresources are less pertinent to the potential conflicts but maybe a pathway to redress the problem. Another strand of OSCEactivities in the environmental field deal with systematically (4)promoting environmental awareness and (5) building thecapacity of decision makers and other stakeholders as a prior-ity in promoting civil society strengthening and in reducing thepotential implications for social and political stability related toenvironmental risks.

8.1 Launching the Environment and Security Initiative

The OSCE, UNDP and UNEP sign an agreement onnew efforts to fight environmental threats to security.

Environmental degradation and resource scarcity alonedoes not lead necessarily to armed conflict. However,where unresolved problems are already present, environ-mental degradation can be the spark that ignites an explo-sion. It is in recognising this fact that three internationalorganisations have come together to abate environmentalthreats to security. The strength of this joint initiative liesin its ability to combine the distinct expertise of eachorganisation to address issues from the environmental,social and security angles.

Under an agreement signed in Vienna on 14 November2003, the OSCE, the UN Development Programme(UNDP) and the UN Environment Programme (UNEP)will jointly address problems such as water scarcity, haz-ardous waste, soil degradation and pollution, which canbecome destabilising factors in already sensitive regions.

The agreement formalises the already ongoing co-opera-tion between the three organisations under their jointEnvironment and Security Initiative (ENVSEC).

The ENVSEC initiative was launched in 2002 when thethree organisations decided to join forces to assess envi-ronmental problems in two pilot regions, south-easternEurope and Central Asia. Its aim is to assess and focusattention on the links between competition over naturalresources and environmental degradation on the one handand security concerns such as food and water scarcity,environmental disasters and large scale migration on theother. At the same time the initiative recognises that envi-ronmental conservation can be used as a tool for strength-ening regional co-operation and building confidence. Theoutcomes of the first phase were presented in the form ofa report visualising threats in maps at the Kiev “Environ-ment for Europe” Ministerial Conference and in parallel atthe OSCE Economic Forum.

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The problems the concerned regions are facing are tremen-dous. Pollution from heavy industry including Uraniummining sites, leaking dumps of hazardous waste, legacy ofwar and war related industries such as test sites for nuclearand chemical weapons pose risks to human security.Another, related threat comes from competition overscarce natural resources such as bio diversity, soil, andwater. The shrinking of the Aral sea in Central Asia repre-sents a unique disaster with a sequence of devastating envi-ronmental and socio-economic effects.

According to the ENVSEC partners, in order to preventtensions from arising, there is a need to build human andinstitutional capacity to deal with threats before theybecome unmanageable. Three areas deserve special atten-

tion when considering the role the international communi-ty can play to this respect: a) the need to assess the vulner-ability to environmental degradation and develop earlywarning and rapid reaction mechanisms; b) build humancapacity and foster participatory decision making process-es; c) develop institutional, legislative and policy frame-works.

The ENVSEC work programme for 2003 – 2006 is builtaround these three pillars. In addition to the pilot regions,the three-year work programme will also cover the coun-tries of the southern Caucasus and Eastern Europe. Furthermore, the ENVSEC Initiative is a process open toother partners and in January 2004 NATO officially putforward a request to associate itself to the programme.

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Environment and Security.Transforming risks into co-operation; this reportcontains the preliminaryaccount of the Initiative’sfindings in two case studyregions, Central Asia andSouth Eastern Europe.

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8.2 Tackling Hazardous Waste

➜ Neutralisation of hazardous wastes and rehabilita-

tion of polluted lands as a factor of socio-ecological

stability- Georgia

The mission supported putting a number of measures inplace in the Akhalkalaki region prior to the withdrawal ofRussian troops from the Akhalkalaki Military Base inorder to alleviate some of the inevitable negative conse-quences of the withdrawal. This project represents thebeginning of a process which will in the long term facili-tate the eventual withdrawal and assist the local popula-tion in alleviating its economic and environmental impact.

➜ Radiological map of Aktau– Kazakhstan

The main goal of the project was to inform the people liv-ing in Aktau about the radiological situation of the cityand its surroundings due to existing radiological contami-nation from closed uranium production and processingfacilities and a tailing dump. Another outcome was to pro-vide local environmental authorities with information for

cleaning. The results were summarised in a map and pub-lished in the local media.

➜ Radiological maps of the cities of Aktobe and

Khromtau - Kazakhstan

The present project, carried out together with the AktobeRegional Territorial Environmental Protection Adminis-tration replicated the success experience of the Aktauproject. The maps were disseminated in order to raise gen-eral awareness on the issue and to stimulate grassroots ini-tiatives on pollution prevention measures. In addition, asa result of the project, a serious radiological contamina-tion was revealed.

➜ Information systematizing and awareness raising

on the Semipalatinsk nuclear testing ground and the

surrounding territory - Kazakhstan

In the framework of the project, materials on multipleprojects conducted by various international and non-gov-ernmental organisations and research institutions will becollected and systematised. On their basis a series of lec-

Environmental Dimension

Mark Halle, International Institute for SustainableDevelopment“Amazingly enough this is the first time an environment

agency, a security agency and a development agency

have co-operated around the theme of environment and

security”

Marcin Swiecicki , the Co-ordinator for OSCE Economic and Environmental Activities“The first phase of ENVSEC served to identify the

critical issues and areas under threat. Now comes the

real work to put these issues higher on the political

agenda and facilitate action to deal with the threats.”

Klaus Toepfer, Executive Director of UNEP.“If you make your neighbour the beggar of your well

being, the neighbour will not be very happy. This is the

basis for tensions and we have a lot to do in this field”

Jean Fournet, NATO Assistant Secretary General.“The ENVSEC Initiative provides an excellent frame-

work for expanding our co-operation. By putting our

forces together, the four organisations – UNEP, UNDP,

OSCE and NATO will have a much greater impact on

security. Each organisation, as well as the countries

involved, will benefit”.

ENVSEC

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Two facets of the environment and security

34

tures will be prepared for local population on the state ofvillages and towns surrounding the testing ground, radio-logical safety of population and other aspects relating toconsequences of nuclear tests. The project will be con-ducted together with the National Nuclear Forum inMarch-October 2004.

➜ Mailuu-Suu Radioactive Waste Tail Dump Area -

Kyrgyzstan

The OSCECentre inBishkek, inco-operationwith the Min-istry of Ecol-ogy and Emer-gencies, held3 workshopswith scien-tific experts

aimed at assessing technical problems posed by radioac-tive waste dumps at Mailuu-Suu in the south of Kyrgyzstan, which threaten the whole region withradioactive pollution.

➜ The OSCE Scientific Experts Meeting on theAssessment of Technical Problems of theMailuu-Suu Radioactive Waste Tail Dump Areain the South of Kyrgyzstan – April 2003The aim of this assessment meeting was to form atechnical and tactical task force, to sum up andprocess expertise and knowledge and to draw oper-ative conclusions. The meeting included an assess-ment trip to Mailuu-Suu itself. The participants tothe meeting recommended to create a technicaldatabase on all activities implemented and relatedto studying and analysing geological and naturalenvironment in the area of Mailuu-Suu town to sup-port remedial activities.

➜ International Workshops on the Creation of Sci-entific-technical Database for the Rehabilitationof Uranium Tailings in Mailuu-Suu, Kyrgyzstan– July 2003The workshop aimed at implementing the conclu-sions and recommendations of the OSCE ScientificExperts Meeting in April. Participants of the work-

shop presented reports on completed projects relat-ed to Mailuu-Suu tailings, landslides problems andthe environmental situation.

The workshop ended up with setting up a steeringcommittee for the management and co-ordinationof actions related to the creation of a scientific-technical database, and creating three workinggroups (Radio-ecological and medical group, Geo-hazards group, Public information group) to selectand systematise the existing materials for the cre-ation of a scientific-technical database.

➜ Follow-up Workshop to Report on the Progressof the Mailuu-Suu International Database andto Exchange Views on Other Regionally Impor-tant Uranium Mine Tailings – October 2003

The workshop was dedicated to discussions onthe progress of the creation of a scientific-techni-cal Mailuu-Suu database. Furthermore, it focusedon the exchange of views among participantsabout other regionally-important uranium minetailings sites. At the end of the workshop, a“Bishkek Declaration: Uranium Legacy Issues”was adopted by the participants.The data presented at this workshop, together withother relevant reports and information, were gath-ered together in a scientific-technical database tosupport rehabilitation efforts at Mailuu-Suu.Accessible online, it would be an effectiveresource for those working on the issue, providingdocuments, maps, photographs, technical draw-ings, and radioactive and chemical measurements.

➜ Public information campaign “Life Safety in

Mailuu-Suu”

The OSCE organised a week-long public information cam-paign in Kyrgyzstan aimed at raising awareness of thehealth problems posed by radioactive waste dumps atMailuu-Suu in the south of the country, which threaten awider region with pollution. The campaign, called “LifeSafety in Mailuu-Suu”, was a joint undertaking of theOSCE Centre in Bishkek, the Science-Engineering Centre“GeoPribor” and the Kyrgyz National Academy of Sci-ences. It was carried out between 12 and 16 January 2004.

Environmental Dimension

Once a high-capacity industrial centre in Kyrgyzstan, Mailuu-Suu has now become aserious ecological threat to Central Asia.

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At the local level public awareness of the threat remainsalarmingly low. Citizens of the Mailuu-Suu region contin-ue to walk freely among dangerously contaminated andpoorly marked sites. The people have often appropriatedland on such sites to graze their livestock and usedradioactive earth to craft building materials for theirhomes. The citizens, especially the children of Mailuu-Suutown, are unaware of the dangers, and do not know how tolive safely in a contaminated environment.

The campaign started with the presentation of a brochureon possible dangers from radioactive waste and guidancefor prevention of health hazards to all staff of the townadministration, primary and secondary schools and a med-ical college in Mailuu-Suu. One thousand copies of thebrochure in the Kyrgyz and Russian languages were dis-seminated in the area.

➜ International

Conference on

the Emergency

Preparedness for

and Response to

Environmental

Security Risks in

the Central

Asian Region -

Kyrgyzstan

An internationalconference aimedat strengtheningbilateral co-oper-ation on environ-

mental security issues between the Kyrgyz Republic and theRepublic of Tajikistan was held in Bishkek on 18-19 Decem-ber 2003. It was organised by the OSCE Centre in Bishkek inco-operation with the Governments of the Kyrgyz Republicand the Republic of Tajikistan.

The two-day conference entitled “The Emergency Pre-paredness for and Response to Environmental SecurityRisks in the Central Asian Region” provided an opportuni-ty to discuss environmental security risks in the region, aswell as legal, institutional, financial and political frame-works for reducing natural and environmental hazards.

Kyrgyzstan and Tajikistan reached an agreement toenhance co-operation and develop a common approachand co-ordinated policies on eliminating and/or reducingenvironmental security risks, which represent real threatsto environmental security in the whole of Central Asia.

Environmental Dimension

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A brochure on public safety and thedangers of radioactive waste was pre-sented to city administration, medicalprofessionals and heads of organisa-tions during a public awareness cam-paign in Mailuu-Suu, 14 January 2004.

The Osh Field Office visited the Mailuu Suu townlocated in the Jalalabat Province in order to getinformation about the environmental situation in theregion. In Mailuu Suu tailings of an old uraniummine have radionuclide concentrations above theexemption limits. The people, especially the childrenof Mailuu-Suu are little informed about the risksinvolved. The Office held a series of meetings withstate officials and the civil society in order to identi-fy any solutions or assistance needed for the townresidents to prevent environmental contaminationand save the people from contamination. A localMailuu Suu based NGO of high school teachers pro-posed to develop 3 training programs for the 3,750school-children and teach all of them during oneyear about the dangers of contamination.

Increase awareness among civil society on the danger

of Uranium tailings

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A water pipeline near Dushanbe.

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8.3 Linking Water and Security➜ Support for the Creation of a Commission on the Chu

and Talas rivers between Kazakhstan and Kyrgyzstan

The objective of the project is to assist Kazakhstan andKyrgyzstan in implementing the provisions of the Agree-ment on Utilisation of the Water Facilities of Interstate Useon the Chu and Talas Rivers between the Government ofthe Republic of Kazakhstan and the Government of theKyrgyz Republic of 21 January 2000.

The project entered its operational phase in December2002 and is being implemented by the Water ResourcesCommittee of the Ministry of Agriculture in Kazakhstan,the Water Management Department of the Ministry ofWater Management, Agriculture and Processing Industryof the Kyrgyz Republic, the Organisation for Security andCo-operation in Europe (OSCE), the United Nations Eco-nomic and Social Commission for Asia and the Pacific(UNESCAP), the United Nations Economic Commissionfor Europe (UNECE) and the Lake Peipsi Centre for Trans-boundary Co-operation. The project is funded by the UKand Swedish Governments.

The first project meeting took place in Bishkek, 9-10 April2003 within the framework of the 11th session of the Pro-ject Working Group of the SPECA project “Rational andefficient use of energy and water resources in CentralAsia”. The second project meeting took place in Almaty, 7-8 July 2003. The third meeting was held in Bishkek, 5-7November 2003.

➜ Technical Assistance to the Interim Sava River

Commission

The OSCE supported the Framework agreement on theSava River Basin signed on the 4th of December 2002 bythe four riparian states of the Sava River (Republic ofCroatia, Bosnia and Herzegovina, Serbia and Montenegroand the Republic of Slovenia).

The OSCE supports the development of protocols for theFramework Agreement, and it is working together with theRegional Environmental Center for Central and EasternEurope (REC) to produce the first drafts of the protocolson Transboundary Impacts, Emergency Situations andFlood Control.

The OSCE is also developing a Project Proposal to devel-op a Network of Local Actors from the Sava River Basin

on Water resource Management. The Project will promoteregional co-operation by improving the management of theSava river basin and thereby improving water quality.Moreover the initiative will encourage the public to partic-ipate in the decision making process.

In December 2003, the OSCE Mission to Bosnia andHerzegovina, together with the Regional EnvironmentalCenter, organised a conference in the District of Brcko onthe involvement of citizens and civil society partners in theimplementation of the Framework Agreement on the SavaRiver Basin.

➜ South Caucasus River Monitoring

The OCEEA and the OSCE field presences in the SouthCaucasus, in co-operation with the NATO Science forPeace Programme, are supporting the project entitled“South Caucasus River Monitoring”.

The implementation of the project started in November2002 and will be completed in 2005. The project’s objec-tive is to re-establish a regional water monitoring system.The project will increase local technical capabilities,establish standard sampling and analysis techniques andwill create a model sharing system accessible over theinternet. The methodology includes sample and data col-lection preparation, training, expeditions, laboratory analy-sis, data management and watershed management infra-structure and system development. Data will be compiledin a unified database placed on a internet site managed by

Environmental Dimension

The Sava river at Bosnia and Herzegovina.The OSCE supportsthe Framework Agreement on the Sava River Basin

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the University of New Mexico, permitting free access to allend users.

The project is funded by the NATO Science for Peace pro-gramme, and through the OSCE, by Sweden and the Nor-wegian company Statoil.

The first annual progress review meeting of the projectwas held in Yerevan on 18 – 20 November 2003. The meet-ing allowed the review, discussion and assessment amongthe Co-directors and Principal Specialists of the progressmade in the first year of implementation of the project.

➜ Introducing EU Water Framework Directive - Belarus

The OSCE Office in Minsk developed with the Ministry ofNatural Resources and Environmental Protection andTACIS a project to continue the work started by TACIS in2002. A comparative analysis on EU and Belarus WaterLegislation was completed and presented for discussion towater managers from all the regions. Two guidebooks, onefor water specialists and one for the general population,were developed on the basis of recommendations madeduring the seminar. One thousand five hundred copies ofthe guidebook were distributed throughout Belarus.

➜ Conference on the sustainable development of the

Balkhash region – Kazakhstan

The conference was conducted in Balkhash in October2003 together with the NGO “Tabigat”. The main goal ofthe conference was to draw attention to the ecologicalproblems of the Balkhash region and to discuss possiblesolutions. During the conference, participants had anopportunity to visit a factory and to receive comprehensiveinformation about the environmental situation of the Ili-Balkhash water basin. A brochure on results and findingsof the conference was published.

➜ Workshop “Ili-Balkhash water basin: problems and

solutions - Kazakhstan

The project aimed to contribute to the improvement of theecological situation of the Balkhash eco-system by raisingawareness and promoting dialogue between the govern-ment, public and international community. It included thedevelopment of a draft law on assigning the status of anational park to the Ili-Balkhash water basin, to be present-ed at the workshop, preparation of concrete project propos-als for potential donors and the publication of a brochure.

Environmental Dimension

OSC

E

Conduction of test analyses are the first steps to compile a database for the South Caucasus River Monitoring Project.

➜ Procurement, installation, testing and use of fieldand laboratory equipment.

➜ Conduction of test analyses.

➜ Pilot field trip to implement protocols for sampling, treatment and preservation of samples.

➜ Laboratory analyses of samples.

➜ Training of young researchers in Belgium and Norway.

South Caucasus River Monitoring – Achievements.

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entre in Alm

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A factory in the Balkhash region

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➜ Raising awareness on water use in the Ferghana

valley – Kyrgyzstan

A co-operative approach by Ecological NGOs of Kyrgyzs-tan, Tajikistan and Uzbekistan aiming at building bridgesbetween the different societies. The project will create anetwork of NGOs, improve their ability to assess the legalrights of communities, the reasons of conflicts related towater use at village and national level and strengthen theirfunction to bring communities together and raise theirawareness on solutions in the form of seminars, publica-tions on examples of best practice.

➜ Regional Round Table of Ecological NGOs -

Kyrgyzstan

The Osh Field Office monitored a Regional Round Tableof the Ecological NGOs held in Jalalabat Province, Kyr-gyzstan on 17 September 2003. The two organizing eco-logical NGOs “Tashtar Ata” from Osh province and “Bio-ta” from Jalalabat Province invited representatives of 15environmental NGOs as well as state officials working onwater from Tajikistan, Uzbekistan and Kyrgyzstan. Theparticipants discussed the conditions for peace or conflictbetween states or ethnic groups; and the role of differentenvironmental NGOs in the Ferghana valley to lessen suchthreat for a possible conflict.

Participants agreed that unequal access to water and nottransparent water management already creates conflict sit-uations between different ethnic and geographical groupsand between the states. They could name many local exam-ples of this and additionally of intergovernmental agree-ments which are not observed, the participants agreed thatNGOs can play an active role to prevent such conflicts.

For that reason a network of NGOs from the three coun-tries of the Ferghana valley should be established in orderto investigate and explore the problems, formulate pro-grammes, attract investments, lobby draft laws in eachcountry and lessen conflict situations.

8.4 Promoting Environmental Awareness

8.4.1 Raising Awareness and Environmental EducationThe OSCE engages in Education for Sustainable Development together with the Regional EnvironmentalCenter for Central and Eastern Europe (REC).

The OSCE and REC have decided to work together todevelop a version of the REC Green Pack that takes intoaccount the links between environment and security. In aninformal exchange of letters the two organisations haveagreed on division of responsibilities and to roll out a jointpilot programme in Serbia and Montenegro. The GreenPack is an educational tool directed at school children andaiming at fostering values and encouraging children tothink about how they and their families can take responsi-bility for protecting and improving their environment.

Education and raising awareness are viewed as fundamen-tal tools in changing patterns of social and economicbehavior as it affects the environment by integrating envi-ronmental concerns and the concept of sustainable devel-opment into people’s conscience from a young age. Newapproaches and increased, intensified efforts are called forin education and in raising public awareness.

Focus should be on strengthening citizens’ rights so thatcivil society can play a full and active role both in the for-mulation of policies and in their implementation. Wellinformed citizens are a powerful driver for sustainabledevelopment. As consumers they make choices and drivethe market for environmentally friendly products and serv-ices, and as citizens they take part in decision makingprocesses and affect governments through their votingpower. It is also our belief that well informed and empow-ered citizens are a guarantee for democracy, stability andsecurity.

Considering the post conflict situation in Serbia & Mon-tenegro the project will also look specifically at environ-mental issues as a source or trigger of conflict and as a toolfor co-operation. The activity will take into account resultsfrom assessments done as part of the OSCE/UNDP/UNEPEnvironment and Security Initiative (ENVSEC) and feedthem into the Green Pack and thus ensure a wider aware-ness about environment and security links.

Environmental Dimension

39

The activity fits well into the priority of the BulgarianChairmanship of the OSCE in 2004, and with the promo-tion of Education for Sustainable Development in the EEC-CA region, which was identified as a top priority at theFifth Ministerial Conference “Environment for Europe,” inKiev, last year. It is also a timely activity taking into con-sideration that the United Nations Decade of Education forSustainable Development will commence in 2005.

➜ Seminar on education for sustainable development -

Armenia

The OSCE Office in Yerevan, in co-operation with theUNDP and the NGO “Association for Sustainable Devel-opment” organised a two-day seminar on the relationshipbetween education and sustainable development. Duringthe seminar the representatives of the environmental NGOsand Universities from Armenia, Azerbaijan, Georgia andthe Russian Federation shared their experiences. As a resulta joint programme for the upcoming “Decade of Educationfor Sustainable development” was elaborated.

➜ Raising the Environmental Awareness among

Students and Schoolchildren - Armenia

The OSCE Office supported “Khazer”, an ecological andcultural NGO, to publish a series of environmentalbrochures for students and schoolchildren. The publica-tions will then be disseminated in schools and universitiesof Yerevan as well as the provinces.

➜ Youth Ecological Training Programme – Azerbaijan

The Office initiated a Youth Ecological Training Project inco-ordination with Ecosphere, a local ecological NGO. TheProject included a training component for approximately250 high school students in eight regions of Azerbaijan ona variety of environmental topics. It encouraged communi-ty service projects to be initiated at the end of the training.

➜ Environmental education projects in schools –

Bosnia and Herzegovina

The OSCE Mission has helped support these school initia-tives both through funding assistance (prizes and helpingfind a donor) and by advocating, for instance, the inclusionof special needs children into the project. In Sanski Most,2,000 students from seven schools participated in a towncleaning. In Drvar, the Primary School received funding toclean their school yard and plant a garden. Students fromtwo schools in Mostar, one from East and one from West Mostar, collaborate alongside special needschildren on ecology gardens at both schools, learningtogether about the environment and garden maintenance.

➜ Environmental Compact Disk - Kazakhstan

An environmental Compact Disk was prepared, publishedand distributed to environmental NGOs, libraries and spe-cialists. It contains information on various environmental-related issues, including local and international legislation,specially protected areas, rare species, list of environmen-

Environmental Dimension

Planting trees – Albania

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In the framework of raisingawareness among citizens abouttheir role in preserving the environment, the OSCE Presencein Albania supported the localNGO “Ecological Club of Tirana”,with a project for planting treesin the Park of Tirana Lake, on13 March 2004.

40

tal funds, etc. The project was carried out in co-operationwith the Resource information-analytical centre “WildNature Laboratory” and Public centre of wild nature pro-tection “Arlan”.

➜ Promotion of Environmental Education in second-

ary schools - Kazakhstan

This one-year project is designed to help develop an envi-ronmental education programme for secondary schoolteachers, reform current legislation on education and envi-ronmental protection, and create a video and printedlibrary on environmental education and education for sus-tainable development. The first meeting of the Workinggroup on environmental education including representa-tives of the Ministry of education and science, Ministry ofenvironmental protection, and NGOs was held in January2004. Representatives of the working groups from otherCentral Asian countries participated. The project is carriedout together with the Regional Environmental Centre forCentral Asia.

➜ Advocacy of Environmental Awareness in Secondary

Level Education - Turkmenistan

Raising the level of schoolchildren’s awareness of environ-mental issues in general was the immediate objective ofthis project. The first training seminars took place in late

2002 and early 2003. The sec-ond phase took place in 2004.A guide-book is under prepa-ration.

8.4.2 Implementing theAarhus Convention➜ Establishment of a Public

Environmental Information

Centre - Azerbaijan

An information centre to pro-mote public access to environ-mental information andencourage participation indecision-making in environ-mental affairs was opened on23 September 2003 by theOSCE Office in Baku and theMinistry of Ecology and Nat-ural Resources of the Azerbai-jan Republic. The Centre pro-vides governmental, scientific,

and non-governmental organisations engaged in environ-mental activities with free access to a library, the Internetand conference room facilities. The Centre serves as a linkbetween those interested in environmental policy-makingand implementation in Azerbaijan. It is run by a board ofexperts representing NGOs, the Ministry of Ecology andNatural Resources and Parliament, and it is supported byan Advisory Board composed of representatives of thedonor community and diplomatic missions.

Several Projects were organized in the framework ofthe Public Environmental Information Center:

Training Workshop for Environmental Journalists -November 2003The workshop was conducted by trainers from the BBCOffice in Yekaterinburg. The 5-day seminar includedmodules dealing with: media issues, ethics of journal-ism, investigative journalism, preparations of printedreporting and radio and television shows devoted toenvironmental issues.

Youth Congress for the Environment - November 2003The delegates at the congress were winners of a region-al environmental competition run by the Youth Ecolog-ical Training Programme providing environmental edu-

Environmental Dimension

Ecology projects have proven a useful tool for bringing students together. Environmental education projects, Bosnia & Herzegovina.

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cation for schoolchildren. The event was sponsored inco-ordination with the Azerbaijani NGO Ecosphere.

Training Workshop for Environmental NGOs -November 2003In the course of the workshop more than twenty Azerienvironmental NGOs received training in NGO man-agement, fund-raising, grant writing, and financialmanagement. The Russian environmental training cen-tre “Golubka” provided input to the workshop.

Environmental Journalism Awards - January 2004The Competition for Environmental Journalism wasorganised to promote the development of environmen-tal journalism in Azerbaijan. Over 50 journalists sub-mitted 121 articles for consideration, the criteria for theselection included the relevance of the article for Azer-baijan, public awareness, style, persuasiveness and bal-ance, and professionalism.

➜ Raising Awareness of the Aarhus Convention - Belarus

Following the recent signing of the Aarhus Convention byBelarus, the OSCE Office in Minsk worked with the Min-istry of Natural Resources and Environmental Protectionand the NGO “Eco-Prava” to develop an analysis on envi-ronmental legislation. The analysis was published in aguidebook and presented to Belarusian judges represent-ing all the regions and to students of the Law faculty of theBelarusian State University. One thousand five hundredcopies were distributed to judges, students and librariesthroughout Belarus.

➜ Public Environmental Information Centre - Georgia

The Mission initiated discussions with the host govern-ment and civil society on the development of a PublicEnvironmental Information Centre. The Centre will sup-port access to official information on environmental issuesand build trust between the government and civil societyorganisations working on environmental matters. To thatend, a site available to both government and the NGO andcivil society is proposed as the best solution.

➜ Public Environmental Information Center - Tajikistan

The OSCE Centre in Dushanbe has been building upon thesolid foundations laid last year, when several awareness-raising workshops were held on the Aarhus Convention. In2003 several projects and seminars focused on furtherawareness raising activities and implementation of theprovisions of the document. The result was the establish-ment of the Dushanbe Aarhus Information Resource Cen-tre in September 2003.

Under the umbrella of the centre two main eventswere organised:

Third Regional Festival on Environmental Journalism – October 2003The Festival increased the public access to environ-mental information, media coverage of environmentalissues in the region and continued to promote andencourage environmental journalism in Central Asia.In addition, the Festival provided further networkingand training opportunities for Central Asian environ-mental journalists.

Environmental Dimension

Peter Burkhard, Head of the OSCE Office in Baku (right), andHussein Bagirov, Azerbaijan's Minister of Ecology and NaturalResources, officially opened the environmental information centrein Baku, 23 September 2003.

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Bak

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Students in Tajikistan participating in OSCE-supported trainingworkshops learn about nature protection, July 2003.

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Ensuring compliance of Legislation with the AarhusConvention.

The Centre in Dushanbe provided an international con-sultant whose conclusions and recommendations werepresented – in Russian, Tajik and English - to govern-mental and non-governmental actors.

8.5 Building the Capacity of Decision Makers andother Stakeholders

➜ Environmental Award competition for Journalists -

Armenia

The OSCE Office in Yerevan and the NGO “Environmen-tal Survival “ held the “Environmental Award Competitionfor Journalists” to foster the role that journalists play inraising awareness of population on environmental prob-lems. The award identified the best newspaper article, TVshow and radio broadcast on environmental issues. Apartfrom monetary awards, the winners also got special cer-tificates signed by the Head of the Office, at a ceremonyon 12 January 2004.

➜ Corporate Social Responsibility Conference -Azerbaijan

The Office, in co-ordination with the Business Develop-ment Alliance, sponsored a conference on CorporateSocial Responsibility and the Environment on 29 October2003. The Conference brought environmental and publicrelations managers from leading international and Azer-baijani companies together with representatives of theAzerbaijan government and local environmental NGOs to

discuss corporate socialresponsibility as a tool inpromoting better environ-mental policies and sus-tainable practices.

➜ Creating a Trans-

boundary Biosphere

Reserve - Belarus

The OSCE Office in Min-sk in collaboration withthe National Academy ofSciences and the BelarusMan and Biosphere Com-mittee undertook a projectto complete all the stepsrequired for an application

to UNESCO to create a transboundary Biosphere Reservein West Polessie. The concluding seminar held in theBelarusian Biosphere Reserve “Belaveshkaya Pushch”was attended by senior representatives from the Polish andUkranian UNESCO Man & Biosphere Committees. Thesuccessful completion of the project has enabled Belarusto make an application to UNESCO for protected status ofthe joint Biosphere Reserve in West-Polessie.

➜ Journalist Competition on Coverage of Environmen-

tal Business - Kazakhstan

The Competition, conducted together with the EcologicalPress Centre awarded three areas – printed, radio and videomaterials. The OSCE Centre in Almaty established specialprizes for materials on environmental concerns in smalland medium-sized businesses.

The ceremony of national awards was conducted in Almaty,and the final selection of regional winners was made inDushanbe, Tajikistan by jury from the five Central Asianrepublics. The best reports were placed on the internet

➜ Master-class on environmental journalism - Kazakhstan

The Centre together with the non-governmental organisa-tion “Ecological Press-Centre” started in December 2003 afive-month project on the training of TV journalists fromall regions of Kazakhstan on modern methods and formsof coverage of environmental issues. A best practices CDwas distributed. The overall aim of the project was the ful-filment of the Aarhus Convention principles, in particular,

Environmental Dimension

Head of the OSCE Office in Yerevan,Vladimir Pryakhin (right), presents an award for best radio journalist to Heghine Buniatian from Internews Armenia, 12 January 2004.

Inte

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the access to information in environmental matters throughsupport of development of ecological journalism.

➜ Preparatory Workshop «Discussion of the draft law

on ecological information» - Kazakhstan

The Preparatory Workshop was aimed at contributing tothe implementation of the Aarhus convention in Kaza-khstan by facilitating discussions of the draft law on envi-ronmental information and by involving the non-govern-mental sector in the elaboration of recommendations. Theworkshop was organised together with the Parliament ofKazakhstan and preceded a round table on the draft law,organised by the Parliament several days later.

➜ Drafting Law on Reproductive Material of Forest

Trees; Creation of a data base of forest reproductive

materials – Serbia and Montenegro

The OSCE assisted in the harmonisation of the Draft Lawon Reproductive Material of Forest Trees with the EU regulations in this field to facilitate the export of forestreproductive material to the EU Countries.

➜ Environmental Glossary– Serbia and Montenegro

The aim of the project was to support economic and envi-ronmental legislation development, its implementation andregional co-operation. International legislative terms frominternational Contracts, Conventions, Protocols andTreaties in the environmental area were translated.

➜ Harmonisation of Environmental legislation in

Montenegro – Serbia and Montenegro

The OSCE and the Ministry for environmental protectionand urban planning of the Republic of Montenegro co-operate in implementing the Finnish led project “Environ-mental Legislation development in Montenegro”, compat-ible with the OSCE Programme for “Support to Environ-mental Legislation and Institutional building”. The OSCEis a member of the Project Steering Committee, and coversthe working costs of four Working Groups Managers andthe Project Director for a period of ten months.

➜ Seminar on National Economy and Environment -

Turkmenistan

This national conference was requested by the Governmentin September 2003. Its objective was to invite middle-lev-el government officials from various ministries and othercentral establishments to discuss general and specificissues relating to interaction between economy, industrialand primary production, and environment. Externalexpertise was secured from UNEP and OSCE/OCEEA,and the conference was scheduled for May 2004.

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bia

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A Landscape from Serbia andMontenegro.TheOSCE promotes theprotection of theenvironmentthrough legislativeharmonisation.

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9.1. OSCE-UNECE Inter Secretariat Task Force.In order to prepare a comprehensive arrangement betweenthe OSCE and UNECE, as stipulated by the Strategy Doc-ument for the Economic and Environmental Dimensionadopted by the Ministerial Council held in Maastricht inDecember 2003 (para 3.2.2-5), Secretary General JánKubis and UNECE Executive Secretary Ms. BrigitaSchmognerova set up an Inter Secretariat Task Force. TheTask Force met on the occasion of the UNECE AnnualMeeting on 25 February, a Workshop on 8 March and viavideo Conferences. The Memorandum of Understandingregulating co-operation between the two organisations is tobe proceeded by a resource implications assessment. TheTask Force works in a transparent way allowing delega-tions to engage themselves in the preparation of the MoU.The Draft MoU will be presented to adequate bodies ofboth organisations.

9.2. OSCE Conference on globalisation The OSCE Conference on Globalisation took place inVienna on 3 and 4 July 2003. The main purpose of theConference was to discuss the role the OSCE can play inmaximizing the benefits and addressing the risks and chal-lenges of globalisation.

The event was organised by the OCEEA in close co-oper-ation with the Netherlands Chairmanship of the OSCE.

The Conference gathered over 150 participants, high-levelrepresentatives of OSCE participating States responsiblefor international economic and environmental policy andsecurity issues in the OSCE area, as well as experts repre-senting various international organisations, academic com-munity or civil society. Several participating States includ-ed representatives of non-governmental organisations andacademic circles in their delegations. The OSCE Partnersfor Co-operation and the Mediterranean Partners for Co-operation were also invited to participate in the Conference.

Additional Activities

9.Additional Activities

The Annual Co-ordination Meeting for EEOs represents a unique opportunity for both the EEOs and

the OCEEA to interact and exchange views, present their current activities and priorities, seeking thus a better

co-ordination and more effectiveness in implementing their mandate and in planning future activities.

OC

EE

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Meeting of the Economic and Environmental Officers in Kranichberg, Austria. October 2003

45

9.3. Special meeting of the Permanent Council on the Integration processes in the OSCE regionOCEEA rendered its support to the preparation of the Spe-cial meeting of the Permanent Council (PC) dedicated tointegration processes in the OSCE region, on 26 Septem-ber 2003.

A number of special guests addressed the PC on that occa-sion, such as the Economic Affairs Officer of the UnitedNations Economic Commission for Europe, the ExecutiveSecretary of the Commonwealth of Independent States andthe Secretary General of the Eurasian Economic Commu-nity. A number of delegations presented the experiences ofvarious organisations and groupings they participate in.

Following the meeting, the OCEEA analysed the conclu-sions of the debate and tried to incorporate the recommen-dations in its activities. The meeting was also considereduseful with a view to the discussions regarding the Strate-gy Document.

The topic on integration processes in the OSCE region willbe further discussed at a special session of the EconomicForum in 2004.

9.4. Research Seminar of the Central Asian YouthNetworkThe OCEEA participated in the first Research Seminar ofthe Central Asian Youth Network (CAYN), organised bythe OSCE Centre in Tashkent in the Uzbek town of Char-vak on 5-7 May 2004. The aim of the programme is tocontribute to conflict prevention by promoting good rela-tions between students, future leaders, in Central Asia andby studying OSCE principles and commitments, promoteliberalisation and democratisation. The programme targetselder students and the thematic focus of the Network willbe cross-dimensional along the OSCE dimensions. Themain aim is to increase tolerance and understandingthrough education and exchange.

9.5. Annual Co-ordination Meeting for Economic andEnvironmental Officers,Vienna and Kranichberg,29 September – 3 October 2003The fourth annual co-ordination meeting represented aprogress in terms of participation – 27 EEOs and theirassistants, representing 15 field presences, attended themeeting. In addition, all OCEEA staff were present.

The programme included both plenary and regional ses-sions. The main topics discussed during the meeting,selected among the current priorities of the OSCE in theEconomic and Environmental Dimension, were:

➜ preparation for the 12th Economic Forum (EF);

➜ the follow-up process to the 11th EF on trafficking;

➜ supporting the development of SMEs;

➜ Environment and Security Initiative (ENVSEC) and the next steps in its development;

➜ water management;

➜ good governance;

➜ combating money laundering and the financing of terrorism;

➜ development of human resources.

The agenda also included a general presentation of the lat-est developments pertaining to the Economic and Environ-mental Dimension, the presentation of the new OSCE proj-ect management guidelines and of the new OCEEA ProjectSupport Unit. The EEOs had the opportunity to meet rep-resentatives of the incoming Bulgarian Chairmanship aswell as representatives of the CPC and other departmentsof the Secretariat and discuss in more details issues relatedto next year’s priorities, project management, budgetaryissues, etc.

A number of activities identified as best practices (suchas the YES Programme, the Fair Employment Pro-gramme, developed in BiH, and promoting public partic-ipation through the establishment of Public Environmen-tal Information Centres) were presented to the EEOs sothat they could consider adapting and replicating them intheir host countries.

As part of the Co-ordination Meeting a SWOT analysiswas conducted, aimed at identifying the strengths, weak-nesses, opportunities and threats in implementing theOSCE EED mandate.

Additional Activities

46

Meeting of Regional and Sub-regional Organisationson Fighting Corruption and organised Crime (Vilnius, Lithuania. June 2003) OCEEA participated in a seminar on fighting corruptionand organised crime at regional and sub-regional levels. Theparticipants underlined the importance of fostering the roleof sub-regional organisations in addressing both corruptionand crime. In that respect, a systematic sharing of informa-tion should be seen as a priority for all organisations.

The Petersburg International Economic Forum (St Petersburg, Russia, June 2003)In June 2003 the Co-ordinator attended the Saint Peters-burg International Economic Forum. The Forum wasaddressed by prime ministers of Russian Federation,Ukraine, Belarus, Kyrgyz Republic, Moldova, President ofthe EBRD Jean Lemierre, vice-president of the WorldBank Anna Kruger, Nobel Prize laureate Lawrence Klein.Economic integration, globalisation and migration issuesdominated the meeting. Doubling GDP in Russia duringnext decade was considered difficult but realistic perspec-tive by Klein and other speakers.

International Fresh Water Forum (Dushanbe, Tajikistan. August -September 2003) OCEEA, together with its partner organisations UNDP andUNEP, organised a side event in the margins of the WaterForum to present the programme outline for the Environ-ment and Security Initiative for 2003-2006. Participants inthe side event and preceding national workshopsannounced their support for the initiative and endorsed thereports resulting form the first phase. In addition theycalled for more detailed mapping of identified hotspots aswell as new maps for additional priority areas. Other inter-national organisations also expressed an interest in work-ing together with the initiative. In particular UNECEannounced their willingness to work with the ENVSECpartners in activities aiming at promoting the ratificationand implementation of UNECE conventions.

“Business and Security after 11 September 2001”(Vaduz, Liechtenstein. September 2003)Upon invitation, the Deputy Co-ordinator participated onSeptember 5-6 in a Conference organised by the Liechten-stein Institute in partnership with the Stockholm Interna-tional Peace Research Institute (SIPRI) entitled “Businessand Security after 11 September 2001”.

Representatives from the business community, academiaand international organisations discussed issues such asnew threats and new openings for public/private sector co-operation and the role the business community can play inthe prevention of and the reconstruction after conflict. UNcodes and international instruments and their role in com-bating international crime were analysed. The findings andsuggestions will be compiled as a SIPRI publication. Anumber of participants showed interest in sharing theirexperiences in the preparatory process leading to the nextEconomic Forum addressing the new Challenges forBuilding up Institutional and Human Capacity for Eco-nomic Development and Co-operation.

UNECE Seminar on “Policies for achieving the Millennium Development Goals ECE Region(Geneva, Switzerland, October 2003)OCEEA participated in an event organised by UNECE thatwas also attended by various international organisationsand research institutions. The main focus of the meetingwas poverty during transition. The discussion underlinedthe importance of methodological and statistical mattersfor better understanding the complexity and the dynamicof social and economic conditions when building up mar-ket-based economies. Overall, transition corresponded to alowering of living standards often explained by the deteri-oration of employment and labour markets. Integratinginto the global economy was seen as an element of recov-ery that may help create new jobs and raise wages in theformal sector. The role of the shadow economy as provid-ing sources of incomes to the poorest segments of societywas acknowledged.

Participation in Conferences

10. Participation in Conferences

47

OSCE Parliamentary Conference(Sarajevo, Bosnia and Herzegovina. October 2003)The Deputy Co-ordinator co-chaired a plenary session atthe conference on the role of parliaments in human andeconomic development in South East Europe. Parliamen-tarians from South East Europe analysed the implicationsfor the legislative work and possibilities for regional insti-tutional co-operation.

Co-operation with EBRD(London, United Kingdom. October 2003)The Secretary General, accompanied by the Deputy Co-ordinator, visited the European Bank for Reconstructionand Development (EBRD) in London on 13 October 2003.The purpose of the visit was to discuss concrete modalitiesfor co-operation and explore areas of common interest,according to the exchange of letters between the Chairmanof the Permanent Council and Secretary General Aker-holm. The visit has also to be seen as a follow-up to thevisit of President Lemierre to the Permanent Council inMarch 2003.

Two high level meetings were held with the President andthe Secretary General of the EBRD respectively. A work-ing level meeting with a number of senior EBRD staffmembers was also held and a number of concrete areas forco-operation were explored. It was recognised that whilehigh level contacts are well on track, there is a need for fur-ther strengthening working level contacts at headquartersand in particular in the field.

Seminar on Economic Aspects of Security(Trieste, Italy. October 2003)On the invitation of general Claudio Zappulla OSCE CIO’sPersonal Representative for Articles II and IV of the Day-ton Agreement Co-ordinator addressed Seminar on Eco-nomic Aspects of Security in Trieste (4 October 2003).The same power point presentation was used by the Co-ordinator during his lecture to students of the WebsterUniversity in Vienna (6 October 2003).

2003 Mediterranean Seminar in the ComprehensiveApproach to Security(Aqaba, Jordan. October 2003)The Co-ordinator attended the OSCE Mediterranean Semi-nar in the Comprehensive Approach to Security at which hepresented potential fields of co-operation with Med part-ners such as water management, migration issues, fightagainst money laundering, combating trafficking in humanbeings, drugs and small weapons, regional economic co-operation and integration.(Aqaba, 20-21 October 2003)

NATO EAPC Symposium on Economic Aspects ofEuro-Atlantic Integration(Kiev, Ukraine. October 2003)Upon invitation of NATO, the Co-ordinator also addressedNATO symposium on Economic Aspects of Euro-AtlanticIntegration in Kiev.

Central European Initiative summit(Warsaw, Poland. November 2003)Substituting for the Secretary General Ján Kubi_ Co-ordi-nator represented OSCE Secretariat at the Central Euro-pean Initiative summit in Warsaw on November 20-21. Co-ordinator addressed Head of the Governments session andtook part in a panel debate on “Extending Benefits of EUEnlargement Across Borders”.

Task Force to Protect Children from Sexual Exploitation in Tourism(London, United kingdom. November 2003)OCEEA was represented at the London Meeting of the“Task Force to Protect Children from Sexual Exploitationin Tourism” for the purpose of cultivating programmaticpartnerships in its efforts to fulfil the recommendationsand obligations put forth at the 11th Economic Forum andthe OSCE Action Plan on Gender and Trafficking inHuman Beings, especially in regards to private sectorCupertino in the fight against trafficking.

Participation in Conferences

48

UNDP Regional Compact Meeting(Almaty, Kazakhstan. November 2003) OCEEA was represented at the UNDP Regional CompactMeeting in Almaty on the importance of and opportunitiesfor private sector co-operation in supporting the develop-ment of SMEs in Central Asia. Contacts were establishedwith multi-national corporations working in the energysector and were pursued for the purposes of the 2ndPreparatory Seminar in Dublin as well as private sectorsupport for economic empowerment initiatives beingdeveloped by OCEEA.

Combating the Financing of Terrorism(Geneva, Switzerland. November 2003)Upon invitation from the Swiss government, the DeputyCo-ordinator participated in a workshop on combating thefinancing of terrorism in Geneva on 27-28 November2003. The workshop was held in the context of the NATOEuro-Atlantic Partnership Council (EACP), together withassociated international organisations such as UNODC,FATF and Interpol, as well as academics and the privatesector. OCEEA acted as a commentator in the plenary ses-sion to the UNODC keynote speech on “InternationalInstruments to Combat the Financing of Terrorism” andchaired one of the working session on how to enhanceInternational Capacity in the fight against the financing ofterrorism. A number of recommendations were made byparticipants, and in particular OSCE and NATO wereencouraged to enhance their co-operation in this field.OCEEA is following-up with the Office of the NATODeputy Assistant Secretary General for Regional, Eco-nomic and Security Affairs.

NATO CCMS and Science Committee workshop:“Desertification in the Mediterranean Region:a Security issue”(Valencia, Spain. December 2003)In December 2004, upon invitation by the NATO Commit-tee on the Challenges of Modern Society (CCMS) and theNATO Science Committee, the Deputy Co-ordinator pre-sented the ENVSEC initiative to a workshop entitled“Desertification in the Mediterranean Region: a Securityissue”. The initiative was seen as a potential model foraddressing environmental threats in the Mediterraneanregion and participants inquired about possibilities toinvolve the region. OCEEA, together with its partners andNATO will explore the issue.

UNECE Annual Session (Geneva, Switzerland. February 2004)In February 2004, the Co-ordinator accompanied Secre-tary General Ján Kubis to the Annual Session of the UNECE at which co-operation between OSCE and UNECEwas discussed. Delegates strongly supported a new stageof co-operation between OSCE and UNECE, in particularUNECE engagement in the review of the implementationof the OSCE economic and environmental commitments.A joint UNECE-OSCE Task Force to prepare modalities ofco-operation was established and a first round of talks onits goals took place between UNECE Executive SecretaryMs. Brigita Schmognerova and Ján Kubis.

UNECE Seminar (Geneva, Switzerland. March 2004)In March 2004 Co-ordinator presented OSCE StrategyDocument for the Economic and Environmental Dimen-sion to the UNECE-OSCE Joint High Level Workshop onthe Economic Dimension of the Security in Europe: FacingNew Challenges in a Changing Environment.

Visit to the Secretariat by of the President of theBusiness Humanitarian Forum, Ambassador JohnMaresca (Vienna, Austria. March 2004)In March 2004, the OCEEA hosted a visit of AmbassadorMaresca in order to explore co-operation with regard toprivate-public partnerships. Discussions included theiractive participation in the 12th Economic Forum, possibleactivities on educational matters, in particular in CentralAsia, as well as the ENVSEC initiative.

NATO School(Oberammergau, Germany. March 2004)Upon invitation, the Deputy Co-ordinator gave a lecture atthe NATO School on “Environmental Degradation: aThreat to Security” in March 2004.

OSCE Academy (Bishkek, Kyrgyzstan. March 2004)On the occasion of the Preparatory Seminar to the 12thEconomic Forum, the Co-ordinator visited the OSCEAcademy in Bishkek and gave a lecture to students on theeconomic approach to security.

Participation in Conferences

49

EBRD Annual Meeting (London, United Kingdom. April 2004)Deputy Co-ordinator accompanied the Secretary GeneralJán Kubis to the annual EBRD meeting and investmentforum, held in London. A part from networking, the visitallowed to follow up on discussions held in October 2003and to further explore co-operation on a number of com-mon activities.

European Economic Summit (Warsaw, Poland. April 2004)The Co-ordinator accompanied the Secretary General JánKubis, who upon the invitation by the Polish PresidentAleksander Kwániewski participated in the European Eco-nomic Summit, organised by the World Economic Forum.

Participation in ConferencesK

ilian

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The Co-ordinator gave a lecture to students on the economic approach to security. OSCE Academy, Bishkek, Kyrgyzstan

50

The Sub-Committee proved itself as a valuable tool forensuring continuity and consistency in the activities in theEconomic and Environmental Dimension by providing aforum for regularly reporting on the work done in thisfield, enabling discussions of priorities and activities andidentifying potential threats to security and stability. TheSub-Committee also provided a link to other InternationalOrganisations and relevant actors which were invited toshare their views and to contribute to the work in the Eco-nomic and Environmental Dimension.

According to its mandate, the OCEEA continued to pro-vide working support to the activity of the EESC and itsChairman.

Over the reporting period, from June 2003 to May 2004fourteen meetings of the Economic and EnvironmentalSub-Committee were held: eight under the then-acting

Dutch Chairmanship and six under the current BulgarianChairmanship.

The following main issues were addressed at the EESCMeetings since June 2003:

Elaboration of the new Strategy Document and itsimplementationThe EESC served as an important framework for dialogueand deliberations with a view to negotiating the text of theOSCE Strategy Document for the Economic and Environ-mental Dimension. The Chairman of the informal Group ofFriends on the EED Strategy Document and the Chairmanof the Informal Group of Friends on Procedures constantlyreported to the EESC on the ongoing discussion and theresults of their work. At the 22nd meeting of the EESC, on24 November 2003, the Sub-Committee endorsed the textof the new OSCE Strategy Document and submitted it to

Economic and Environmental Sub-Committee

11. Main Issues addressed during the Economic and Environmental Sub-CommitteeMeetings since June 2003

The Economic and Environmental Sub-Committee

(EESC) of the Permanent Council was established

by the OSCE Ministerial Council in Bucharest on

4 December 2001 MC(9).DEC/3, 4 December 2001).

Extract:11. …… It will perform the following tasks:(a) to provide an ongoing framework for dialogue ofthe participating States on economic and environ-mental issues and to make recommendations to thePermanent Council, including on projects to beimplemented;(b) to support the preparation of the meetings of theEconomic Forum and make recommendations to thePermanent Council on the future programme ofwork, including actions to follow-up of recommen-dations made by the Forum;

(c) to examine any important or topical economic orenvironmental issue relevant to the OSCE at therequest of the Permanent Council, or at the initiativeof any participating State;(d) to provide advice to the Permanent Council, asnecessary, on economic and environmental activitiesof OSCE field operations, in accordance with theirrespective mandates.12. Where appropriate, the Sub-Committee mayinvite representatives of the business community,business associations and relevant governmental andnon-governmental organisations, the academic com-munity, and non-participating States, particularlyPartners for Co-operation, to participate in its meet-ings.13. The OSCE Co-ordinator on Economic and Envi-ronmental Activities will provide working supportfor the activities of the Sub-Committee, subject to hismandate.

51

the Permanent Council. Further on, the document wasadopted by the Maastricht Ministerial Council.

Following the adoption of the Strategy Document, theimplementation of this documents became a main task forboth the OCEEA and the participating States. Therefore,the OCEEA elaborated a work plan for the implementationof the Strategy Document. A discussion on this document(SEC.GAL/46/04) took place in the 26th meeting of theEESC on 12 March 2004.

A very important task stipulated by the Strategy Documentis strengthening co-operation with the UNECE. Therefore,this issue has been included on the EESC’s agenda. A firstdiscussion took place in the 25th meeting on 6 February2004. The Secretary General also participated in this meet-ing. The following meetings on 12 March and 23 April alsodiscussed this issue.

Overall planning of EED activities and reportsThe schedule of meetings for the second half of 2003 wasdiscussed by the 18th EESC on 18 July 2003.

The 24th meeting of the EESC, on 21 January 2004, beingalso the first meeting of the EESC in 2004, provided theopportunity to discuss the OCEEA Plan of Activities forthe first half of 2004 (SEC.GAL/4/04). The 25th meetingon 6 February 2004 also discussed the calendar of EESCmeetings for 2004.

Activity reports by the CoEEA were presented and dis-cussed in each meeting of the EESC. Activity reports reg-ularly included references to OCEEA staff participation inrelevant international meeting, updated information onongoing activities in various areas, including by the OSCEfield presences.

The preparation and follow-up to the OSCE Conference onGlobalisation (Vienna, 3-4 July 2004) were also on theEESC’s agenda at the meetings on 6 June, 23 June and 18July 2003.

The 20th EESC benefited from the presence in Vienna ofthe Economic and Environmental Officers. A report fromthe Annual Co-ordination meeting for the EEOs was pre-sented and the participants in the Sub-Committee had theopportunity to engage in dialogue on current activities andpriorities with the EEOs, during a Q&A session.

Follow-up to the Eleventh Economic Forum on Anti-TraffickingA first report on the Eleventh Economic Forum(EF.GAL/13/03) was presented by the CoEEA at the 16thmeeting of the EESC on 6 June 2003. The ConsolidatedSummary of the Eleventh Economic Forum(SEC.GAL/135/03) was discussed in the 18th meeting ofthe EESC in order to identify the most appropriate follow-up actions. Based on the input and guidelines provided bythe Sub-Committee, the OCEEA continued its planningactivities and contacts with potential partners and devel-oped an Anti-Trafficking Programme.

The EESC has been regularly informed on the work inprogress. At the 21st meeting of the EESC, on 31 October2003, OCEEA invited Ms. Kristiina Kangaspunta,UNODC Global Programme against Trafficking in HumanBeings, to make a presentation of the UNODC Public Ser-vice Announcements against trafficking in human beings.A presentation of the OCEEA Anti-Trafficking Pro-gramme: Public-Private Co-operation in the Prevention ofTrafficking in Human Beings (SEC.GAL/13/04) and asubstantial discussion on this comprehensive follow-upinitiative to the 11th Economic Forum took place in theframework of the 25th meeting of the EESC, on 6 Febru-ary 2004. At the same meeting, Ms Helena Karlén, Secre-tary General of ECPAT Sweden, Member of the ExecutiveCommittee of ECPAT International, was invited as guestspeaker to present the ECPAT Code of Conduct.

Preparation for the 12th OSCE Economic ForumWith regard to the Twelfth Economic Forum, the EESCwas instrumental in the adoption, by the PC, of the twodecisions on the place, date and theme (PC.DEC/558) andmain subjects and organisational modalities(PC.DD/10/04) for the Twelfth Economic Forum. The draftdecisions were discussed in the 18th meeting of the EESC,on 18 July 2003, and the 26th meeting of the EESC on 12March 2004 respectively, and adopted by the PC on 31 July2003 and 25 March 2004.

Economic and Environmental Sub-Committee

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With regard to the preparatory process for the TwelfthEconomic Forum, the OCEEA constantly provided updat-ed information to the EESC on the three preparatory sem-inars in Yerevan, Dublin and Bishkek. Furthermore, theConsolidated Summaries of the three seminars were dis-cussed in the EESC:

➜ Yerevan – 23rd meeting of the EESC on 12 December2003

➜ Dublin – 26th meeting of the EESC on 12 March 2004

➜ Bishkek – 27th meeting of the EESC on 23 April 2004

The meeting on 23 April also provided the opportunity fora preliminary discussion on the preparation of the Eco-nomic Forum based on the introductory notes (SEC.GAL93 /04) prepared by the OCEEA in co-ordination with theChairmanship following the suggestions from the threepreparatory seminars. A more substantial discussion on theEF preparation and priority issues to be addressed tookplace at the 28th meeting on 7 May.

On 7 May 2004, at the 28th meeting of the EESC, UNECEexpert Robert Nowak delivered a presentation on integra-tion processes in the OSCE region and their implicationsto security as an introduction to the special session on inte-gration to be held at the Economic Forum.

At the same meeting the OCEEA presented the status ofthe implementation of the Youth Entrepreneurship Semi-nars (YES) Programme in various countries as well asplans for its replication and further development. As animportant tool to promote entrepreneurship, the YES pro-gramme will also be presented and discussed at the Eco-nomic Forum.

At the 29th meeting of the EESC, on 21 May, Dr. Alexan-der Carius, Director, Adelphi Research and Dr. OttoSimonet, UNEP, were invited to present the Environmentand Security Initiative (ENVSEC) Early Warning Mecha-nism. The development of such mechanisms contributes tothe implementation of the Strategy Document (paragraphs2.4.3 and 3.2.4). OCEEA will continue to work on thisissue and present the results to the EESC in the second halfof 2004.

The discussions provided input for the Chairmanship andthe OCEEA in streamlining the preparations for theForum.

Discussing topical issuesOCEEA invited Dr. Daniele Ganser, from the Zurich Cen-ter for Security Studies to deliver a presentation at the 20thmeeting of the EESC, on 3 October 2003. The topic of thepresentation was “Conflict prevention: the untapped poten-tial of the business sector”.

Other initiatives and proposalsThe 16th EESC discussed the proposal for a Seminar onregional economic co-operation (SEC.GAL/90/03).The 17th EESC discussed the proposal for an OSCE Book-let on Market Institutions (SEC.GAL/113/03).

Economic and Environmental Sub-Committee

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OCEEA Professional Staff

Marcin Swiecicki, Co-ordinatorManages the OCEEA according to the mandate estab-lished by PC.DEC/194 dated 05 November 1997.

Marc Baltes, Deputy Co-ordinatorUnder supervision of and in support to the Co-ordinator,manages the office and liaises with Participating States,partner organisations, OSCE different Secretariat branches,and field presences, with a particular focus on Central Asia.

Responsible for the implementation of joint activities withUNODC on anti-money laundering and combating thefinancing of terrorism activities, and the supervision of thepreparatory process of the Economic Forum.

Daniel Linotte, Senior Economic AdvisorOver-views, advises and supports projects in Western CIScountries, prepares studies and concept papers related to eco-nomic co-operation and development of Participating States.

Helen Santiago-Fink, Senior Economic OfficerLiaises with officers in charge of the EED in South-EastEurope, supports project activities on SME developmentand manages the Anti-Trafficking Programme.

Kilian Strauss, Senior Programme OfficerIn charge of the management of the Project Support Unit,support to the Co-ordinator and the Deputy Co-ordinatorand liaison with the Field Presences.

Gianluca Rampolla, Economic and EnvironmentalAffairs OfficerLiaises and co-ordinates with the OSCE field operations inthe South Caucasus, and manages the Environment andSecurity Initiative and other Environmental Programmes.

Annica Carlsson, Environmental AdvisorAdvises on Environmental issues OSCE wide, with a pri-marily focus on South Eastern and Eastern Europe.

Gabriel Leonte, Economic and Environmental AdvisorAssists on the preparatory process of the OSCE Economic

Forum, and provides input to the Sub-Committee meetingrelated to the Economic Forum.

Nina Lindroos-Kopolo, Associate Programme Officer(Economic)Reviews and assists OCEEA project managers and theEconomic and Environmental Officers in designing ofeconomic projects.

Raul Daussa,Associate Programme Officer (Environmental)Reviews and assists OCEEA project managers and theEconomic and Environmental Officers in designing ofenvironmental projects.

11. OCEEA Professional Staff and MainResponsibilities

CPC: Conflict Prevention Centre (OSCE)EBRD: European Bank for Reconstruction and

DevelopmentEED: Economic and Environmental DimensionEESC: OSCE Economic and Environmental

Sub-CommitteeENVSEC:Environment and Security InitiativeIOM: International Organisation for MigrationIMF: International Monetary FundNATO: North Atlantic Treaty OrganisationOCEEA: Office of the Co-ordinator of Economic

and Environmental ActivitiesODIHR: Office for Democratic Institutions and

Human Rights (OSCE)OECD: Organisation for Economic Co-operation

and DevelopmentOSCE: Organization for Security and

Co-operation in EuropePSU: OCEEA Project Support Unit UNDP: United Nations Development ProgrammeUNECE: United Nations Economic Commission

for EuropeUNEP: United Nations Environment ProgrammeUNODC: United Nations Office on Drugs

and CrimeYES: Youth Entrepreneurship Seminars

Acronyms

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Notes