Review of International Affairs


Dr. Sofija SIRIŠKI



The successful conclusion of accession negotiations at the Copenhagen summit on Decembar 13th 2002 means that ten countries will join the European Union in its biggest-ever enlargement. After eastward enlargement, the EU will contain 25 members and nearly half a billion people. The accession treaty will be signed at a special EU summit in Athens on April 16th, 2003. After that, the candidates and member-states will have about a year to ratify the treaty and to joint EU as planned on May 1st, 2004.

This enlargement is quite an extraordinary challenge for all the parties involved. For the European Union, it is maybe the most ambitious endeavour in the whole history. The accession of ten new members makes it essential for the EU to reform its institutions, decision-making processas, as well as its policies for agricultrue and regional aid. Meanwhile the successive challenge to European Common Foreign and Security Policy have highlighted its weaknesses.

Newly formed Convention on the future of Europe is struggling with many fundamental questions and proposed a new constitutional treaty, which described the new European identity. The Convention makes several proposals to reshape Europe's institutions, according to several basic principles: the institution should become more effective - meaning that they have to be able to take decisions more speedily; EU institution tend to be cut off form national political systems and the national parliaments scold therefore become involved in the institutional workings of the EU; it is important to preserve the balance between the institutions dominated governments and the "Community" institutions; the structures of the institutions should be simplified.

With just five months before the conclusion of the proceedings, and in parallel to the difficult exercise of drafting the new Constitutional treaty, a major effort is necessary to ensure that the various alternatives are explored, and that a final package can be agreed by a considerable majority of the member states.


Vladimir MEĐAK



The author analyses the development of the European Union’s regional policy since 1988 and possible changes that could occur after the eastward enlargement. He examines Delors I and Delors II budgetary packages, covering the period 1988-2000, main principles and objectives, their changes over time and instruments of conducting the policy - Structural Funds. The author also analyses the preparations for enlargement within the scope of Agenda 2000 report, its contents, negotiation process for its adoption and changes made by it. At the end, he examines the effect that regional policy has made so far and possible obstacles for the forthcoming enlargement.





In this article the author analyses the evolution of complex corpus of legislation concerning the freedom of movement for persons in European Union Law. The article deals with the subject in two aspects: the first part of the analysis considers the conceptual development of free movement of persons by way of deliberation of building-up the authority of Union in that area, and the second part analyses the contents of the right of the Union citizens to move and reside freely within the territory of the Member State.

The freedom of movement for people includes the right of Union citizens to enter, move and reside in another Member State and, in that context prohibition of any discrimination based on nationality. Conceived originally as primarily an economic phenomenon, the free movement of persons was closely linked to the pursuit of an occupation. It was the mobility of human resources as a factor of production, which inspired the chapters of the Treaty establishing the European Economic Community (1957) relating to the free movement of workers, freedom of establishment and the freedom to provide services. In that sense, freedom of movement is a part of a wider concept, that of the common/internal market.

Since then, through the combined effect of secondary legislation and the case law of the Court of Justice, the concept has been broadened and it tends, from the Maastricht Treaty (1992), to form one of the fundamental and individual rights of Union citizens generally.

Also, the amendments of EEC Treaty, which were made by the Single European Act (1985) and specially by the Treaty of Amsterdam (1997) and the Treaty of Nice (2001), have formalised the external aspect of freedom of movement. Namely, it was recognised that freedom of movement for persons could not take place at the expense of security, protection against crime and illegal immigration. The abolition of internal controls has generated the need of the transferring checks to the external frontiers of the Union and, in this connection, the gradual establishment of an area of freedom, security and justice.

In the first part of the article the author presents and analyses the development of the Union power in the policies of freedom of movement: in facilitating of free movement of people as a principle of the common/internal/single market, in achievement of the right to free movement for Union citizens, and also in the fields related to the external aspect of freedom of movement, or, actually, the issues pertaining to visas, asylum and immigration.

The second part presents the specific contents of freedom of movement for persons that consists of the corpus of individual rights enjoyed by Union citizens on the territories of EU Member States that are not countries of their origin. These are the right to entry and residence and the right to engagement in gainful activity as well as the related social rights. This part of the article also explores the freedom of movement restriction regime as well as the corresponding Union legislation in preparation.





The article deals with some key issues concerning the evolution of the concept of the right to adequate environment. The evolution took several decades to reach the present state in which it is obvious that the right has been accepted as one of the so called third generation human rights by both doctrine and practice, in international environmental law as well as in national environmental legislation of a number of countries.

In the first phase of development only some elements of the right existed within the “classical” human rights (the right to life, the right to health etc.) of so called first and second generation. The turning point was the UN Stockholm 1972 Conference on the environment. The right was inserted in the first principle, of the Declaration accepted by the conference, and already had most of its main elements: the right to adequate living conditions in an environment with the quality that not only guarantees healthy life but a life in dignity and wellbeing. After the Stockholm Conference, the right was embraced by a part of the doctrine, and increasingly mentioned and discussed within the frame of the UNEP, the relevant UN specialized agencies, as well as by some other international organizations active in the field of environmental protection. The result of this acceptance was an increasing insertion of the right in international treaties as well as in various declaratory documents, on both universal and regional levels.

The author devotes a part of his article to the development in Europe, and especially to the work of the Council of Europe, the UN Economic Commission for Europe (UNECE) and the EU. The author believes that most important development in Europe occurred within the “Environment for Europe Process“, under the aegis of the UNECE. The result of it was signing of the Aarhus Convention (1998), one of most important international treaties signed until now. First of all, it regulates two important fields – protection of human rights and protection of environment. In it not only the right to adequate environment is explicitly mentioned in the Art. 1, but the main elements of the right are regulated in detail. The three “pillars” of the Convention are devoted to the right to environmental information, the right of citizens to participate in environmental matters and the right to access to justice in matters concerning the environmental protection.

It should be added that the Aarhus Convention has become a part of the EU legislation. Due to that, the whole process of implementation of the convention has become unavoidable for all candidate countries, as a proof of their intent to apply in practice environmental legislation and to democratise their societies.


Dr. György SIMON Jr.



Yugoslavia, once an advanced country in market reforms, was one of the least transformed countries in Eastern Europe in the nineties. Such a situation was caused by the civil war, policy of the Milošević’s regime and international sanctions. The resistance of the ruling conservative forces made it impossible to establish an adequate reform policy. Thus, the transition stopped short halfway. The situation has radically changed only since the autumn of 2000, after Milošević’s downfall, when after the gradual lifting of international isolation, economic and political reforms were given a new stimulus, and the country could start the process of European integration.

This article is an attempt to give an overview of the transition of the Yugoslav economy in the last ten years or so. The growth rate of Yugoslavia’s GDP is compared not only with that of its neighbouring countries, i.e. other former socialist countries of South-Eastern Europe (Albania, Bosnia and Herzegovina, Bulgaria, Macedonia, and Romania) but also with that of other transition economies in Central and Eastern Europe, including the Commonwealth of Independent States. A particular attention is given to the role of research and development (R&D) in Yugoslavia in the nineties as compared to Croatia, Slovenia, and the United States. The structural changes in the Yugoslav economy during the past decade are analysed together with property relations as well as the issues concerning small and medium-sized enterprises (SMEs).

At the sectoral level, it is the performance of manufacturing and agriculture that is separately explored. In relation to this, wage formation and relative wage levels in Yugoslavia’s manufacturing are viewed regarding the country’s international competitiveness and wider characteristics of globalising world economy. In analysing the role of external sources in the Yugoslav economy, the problems of foreign trade, external indebtedness, and attraction of foreign direct investment (FDI) are emphasised together with the economic assistance rendered to the FRY by the European Union. Regarding the important indicator of openness, i.e. the share of exports and imports in GDP, a comparison is made between Yugoslavia, on one hand, and Croatia, Slovenia, the European Union, and the United States, on the other.

The economic policy of Milošević’s regime is contrasted with that of the new democratic government that came to power after the events in October 2000. Stabilisation, liberalisation, privatisation, and institutional reform are considered giving particular attention to the experience of the member republics of the Yugoslav federation: Serbia and Montenegro.

The author comes to the following conclusions: in transition countries stabilisation, liberalisation, and privatisation cannot be successful without carrying out a comprehensive, deep reform of the system of political institutions that along with creation of conditions for establishment of democracy and its strengthening also enables building of a modern and efficient market economy. This complicated and often contradictory process could come across serious obstacles if the old state and party nomenclature in power retains the command economy without planning, and under demagogical, nationalistic, and populist slogans gets involved in wars even taking the risks of being put under international isolation. However, such an outdated economic system characterised by autarchy can only temporarily exist and hinder the unravelling of market reforms in the epoch of globalisation.




Prof. Dr. Alexander LUKIN



The East and West have been symbols in Russian culture for centuries and have served as reference points for Russians in their search of cultural and geopolitical identity. They continue playing this role in contemporary Russia. Should Russia be part of the East or West? Russian politicians, scholars, writers and thinkers have been discussing this question for several hundred years. While no agreement has yet been reached the discussion, far from being purely academic, has had practical political consequences. The political position and practical policy agenda of a contemporary Russian politician or any other member of the educated elite still depends largely on where he or she places Russia on the East-West axis of the geopolitical compass and where he or she wants to see the needle point in the future.

Dr. Sofija SIRIŠKI



Constructive and cooperative European union and NATO relations are very important for global stability. But today transatlantic relation are in crisis and there is some evidence that the growing number of the disputes, including over Iraq, the Israel-Palestine conflict, dealing with "rogue states" and terrorism, are having a major impact on European foreign and security policy, and even the process of European integration.

NATO adapted well after the end of the Cold War but since September 11th, however, NATO has faced something of an existential crisis. The US chose to fight the Afghan and Iraq war largely on its own, alongside European allies. Many American are stressing that NATO can only remain relevant if it is prepared and able to tackle pressing international terrorism and the spread of weapons of mass destruction. To safeguard NATO's future role the US has proposed that the European allies should help to develop a Rapid Response Force inside NATO. It wants the EU to provide troops that would be able to operate alongside America's forces.

European, meanwhile, have their own set of concerns. The EU has no concept of how to deal with the world's only superpower. Too often there is a preference for bilateral as opposed to EU channels, and because of that the EU urgently needs a security strategy. The lack of a coherent EU foreign policy also inhibits the ability of the EU and if the Europeans can build a more coherent foreign policy, the US will have a greater interest in listening to what they say. EU leaders also need to assess the suitability of the EU's military doctrine and institutions for the challenges it faces.

The transformation of transatlantic co-operation requires changes on both sides. Differences between the US and Europe exist but they should not be exaggerated. What is needed is to broaden the transatlantic dialogue to include the critical security challenges for both sides.


Prof. Dr. Siniša TATALOVIĆ

CROATIA AND NATO (in Croatian)


The purpose of this article is to study the relations between the Republic of Croatia and NATO. The paper analyses the process of Croatia’s approaching to NATO. By adopting the new strategic concept of NATO at the 1999 Washington summit and conclusions at the 2002 Prague summit the Alliance has confirmed its willingness to enlarge itself through the Partnership for Peace programme. This programme has established itself as a bridge for inclusion of NATO non-member countries into its activities by achieving their interoperability with the Alliance. By all this, the Partnership for Peace has become one of the tools for encouraging defence and security co-operation among European countries, regardless of the fact whether they are NATO members or not.

Such a position of NATO in the European security architecture and its enlargement by admitting new member states is of special significance for the Croatian activities taken and directed towards this organisation. Through its activities within the Partnership for Peace Croatia makes preparations to achieve interoperability with NATO. These activities constitute a part of the preparations for its future membership in the Alliance (this also includes the reform of the security and defence system). On the other hand, the co-operation with NATO (together with other mechanisms such as OSCE and the Stability Pact) enables Croatia to exerts its influence towards stabilisation of the situation in this part of South-Eastern Europe, achieving at the same time its key political, economic and security interests in the region.

Prof. Dr. Aleksandar FATIĆ



The discussion of bilateral relations in modern international relations is usually in the shadow of the new character of global international politics, which is mediated through the large international relations. Bilateral diplomacy is slowly giving way to multilateral diplomacy in the solving of most international issues, including those that have been traditionally perceived as belonging exclusively to the domain of state sovereignty. However, bilateral relations remain crucial in situations where integration processes into large international bodies encounter obstacles and problems. The current development of bilateral diplomacy between Serbia and Montenegro on the one, and Bulgaria and Romania, on the other hand, serves predominantly the purposes of regional harmonisation that will eventually lead to NATO and EU accession, and this process also serves to iron out not so infrequent problems and dissonances in the recent history of bilateral relations, especially between Bulgaria and the former FRY, and particularly during the NATO bombing of FRY in the Spring of 1999. Today, however, all three countries have proclaimed the EU and NATO accession projects as the top priorities of their foreign policies. In the course of pursuit of their accession policies, Bulgaria and Romania have realised that the so-called “beauty contest” approach, namely the countries' insistence on their own qualifications for membership in the EU and NATO, as opposed to the qualifications of the other countries of the region, is largely futile, and they have opted instead for a regional cooperation approach. The latter approach is consistent with the founding principle of regionalism in the internal organisation of the European Union, and this principle includes, among others, the sub-principle of  subsidiarity, whereby all decisions are made on the lowest hierarchical level possible, preferably on the level of European regions. This approach implies that countries that are candidates for membership in the EU must first demonstrate the ability to cooperate and integrate regionally, and this is why Romania and Bulgaria, as well as Serbia and Montenegro, have now refocused their efforts on mutual bilateral relations within the context of NATO (and EU) accession.


Dr. Peter HAVAS



The author tries to enlighten and analyse the current processes in the European Social Democracy intending to renew its strategy and doctrine and adapt it to the new economic, political and social challenges. He devotes special attention to the attempts of the British Labour Party to modernise itself and create a new doctrinal approach, the so-called third way. The author analyses the history of the New Labour and characteristics of the Tony Blair-led party, elaborating in detail the contents of the third way. The main conclusion he makes is that, in spite of the New Labour’s success at the two last general elections in Britain and the positive lessons to be drawn from the third way, it does not mean that all Social Democratic Parties should follow that example, for different social conditions demand different strategies and policies and relevant responses by every party.


Prof. Dr. Mlađen KOVAČEVIĆ



In the distant past prices of primary commodities had shown a tendency of decrease and their increase was recorded only during the First and Second World Wars. Since 1950s there had been recorded a slight decrease in global price indices of primary commodities, while in early 1970s they grew to a considerable extent. After that and up to 2001 the global nominal price indices and particularly real price indices of non-energy primary products drastically fell reaching the lowest level in their history.  This applied to prices of all primary commodities as a whole as well as to all groupings of these products. On the other hand, prices of industrial products exported by developed countries to underdeveloped and medium-developed ones, dynamically grew in the second half of the previous century. Thus, the terms of trade substantially aggravated for underdeveloped countries whose exports structure is still dominated by non-energy primary commodities. Therefore, the negative correlation was clearly manifested between a very high share of primary commodities in the structure of commodity exports and a very low per capita income in a number of developing countries. The drastic fall in prices of primary commodities and the simultaneous dynamic growth in prices of industrial products caused to a great extent reduction of the share of primary commodities in the world commodity trade – from 57 per cent recorded in 1950 to only over 20 per cent recorded in late 20th and early 21st centuries.

Among numerous factors that have brought about a drastic fall in prices of primary commodities the most prominent are: technical and technological progress in their production, production of their substitutes, in traffic and other sectors as well. Apart from this, the decrease in prices of primary commodities has been considerably caused by change in exchange rate at par to US dollar, agricultural policies of developed countries, privatisation of companies that produce commodities and particularly by too excessive production and purchase in relation to demand and spending that in recent years have been under the impact of recession that has emerged in developed economies and a number of newly industrialised and developing countries, as well as a very slow revival of economies in transition. By all this, a drastic fall in prices of a number of particular products from this group has also resulted from the impact exerted by some specific factors.

Taking into consideration the fact that the impact of the most important factors that have brought about the drastic fall in prices of primary commodities is of permanent character and that it will be exerted to a greater or lesser extent in the next dozen of years the experts of the World Bank forecasted in late 2002 that, taken as a whole, the real prices of primary commodities would slightly increase by 2015, but they would still be at a lower level than in 1990. By all this, they forecasted that the real prices of energy commodities (this also including raw oil) would be considerably reduced in that period.





The article examines the thesis that rule of law and the democratic control of armed forces go hand by hand, which is taken for granted equally in Western democracies and the transitional societies. The author spells out a new challenges in the post-Cold world era that have made this equation more disputable. Western democracies face new security challenges, which call for a new legal framework for the democratic control of somewhat internationalised armed forces, and at the same time reconciliation of the ‘internationalised’ military engagement with the unilateral one originating from the “last and only nation-state”. Transitional societies face the dilemma “legitimacy or legality” even with regard to their security sector’s civilian oversight. Good examples from the West are either not-applicable and old-fashioned, or are not good examples to follow at all.

Nedžad BAŠIĆ



The author analysis the growth of global terrorism and activities of terrorist groups in contemporary world.  Focusing on the ethnic and religious background of many terrorist groups, global terrorism, author argues, claims to be a powerful partner in new global conflict, gradually growing into national movements which could be supported by large ethnic, religious or racial communities across the world. Terrorist groups took its driving power and encouragement from the ideas and goals of the main group which principally lies in social injustice or economic inequalities of marginalized large social groups. Their links with ethnic, religious or social background pose the greatest potential threat to states with unstable economies, political turmoil, religious-ethnic hatred and with large-scale immigrants.




The paper analyses the role of the European Union defence system and development of the European armed forces. The author points to the genesis of the EU security dimension in the second half of the 20th and early 21st century. He analyses the latest European defence conception and new initiatives focused on the collective defence system of the European Union and Western European Union under the new geopolitical circumstances. The author also points out that the defence conception and position of the EU will be developed in the shadow of the North Atlantic Treaty Organisation.




The author deals with some key questions concerning the boundary disputes between successor States of the former SFR Yugoslavia. Throughout this analysis the author demonstrates that successor States have obligation to reinforced the approach of emphasizing the territorial integrity of the administrative defined boundaries. The application of the principle of uti possidetis in the case of Yugoslavia confirms its transitional function which is necessary for final international delimitation through the international law concept of pactum de contrahendo which must allow for the application to the other international law rules by mutual agreement.

Ljubica M. Zjalić



In this paper the author explores the correlation between culture, education, science and the technological development, and their common impact on the quality of life and work. She points to the fact that information technologies have become essential part of education, science and culture, and that investment in human resources is of greatest significance for successful economic development, employment, social cohesion and stability.




The author has focused his research primarily on the ethnic relations and political situation in Macedonia in the shadow of the tensions and ethnic conflicts between the local Albanians and Macedonian military and police forces in the spring and summer of 2002. The analysis is basically directed towards considering the solutions included in the Ohrid Agreement that was reached in August 2001 as well as the political situation after the amendments had been made to the Constitution of the Republic of Macedonia that year.

Dalibor KEKIĆ



The author analyses the development of the Adriatic-Ionian Initiative (AII), one of many attempts to improve cooperation in Southern Europe. He explanes basic principles and objectives of AII and main forms of cooperation between member countries - round tables, workshops and other. He examines possible changes in AII countries, and Serbia and Montenegro in particular, that could occur after enlargement of the European Union.

Institute of International Politics and Economics, 11000 Belgrade, Makedonska 25, Serbia
Phone: (+381 11) 3373-633, Fax: (+381 11) 3373-835; E-mail:
Copyright © 1996-2002, IIPE.All rights reserved