Review of International Affairs


Dr. Milovan VUKOVIĆ



This article compares and contrasts current U.S. “war on terrorism” and proliferation of nuclear, chemical, and biological weapons (NBC’s) with the general U.S. foreign policy during the Cold-War and post-Cold War eras. The focus is primarily on a growing dilemma - “informal” or “formal” American empire - that rises from unprecedented asymmetry in military power between the United States and its closest followers. Also, this article analyzes the role of non-material elements of power (so-called soft power) and reviews recent views regarding the “unilateralism-multilateralism dichotomy” in American foreign policy. The author demonstrates that the “war on terrorism” and proliferation of NBC’s weapons show that U.S. status as the only super-power is not simply a matter of resource availability and relative power. Military muscle is an essential requirement, but it does not itself secure that position. This is especially true for the status of an empire - either “informal” or “formal.”





The European Union in June 2003 has made it very clear that the principle of conditionality and the regional approach will be the prime instruments of the EU in South East Europe. The author in this article investigates if some of the stipulations about these instruments do hold. The central stipulation is that only in tandem would the principles provide for stability. The author contents that it remains doubtful whether the proclaimed compatibility of the two approaches is given. Rather, competition seems to exist between them. However, if this rivalry is really given and yet the combination of the two principles remains to be the flagship policy of the EU, this may be counter-effective for reaching the desired stabilization and democratization of the region.


(in English)


The collapse of the Soviet Union meant the end not only of the Cold war but also of the crucial turn in Russia’s fate. For the first time in its history Russia exists as a nation-state not as an empire. Along with the search of new identity Russians faced new challenges and threats to country’s national security and integrity (the Chechen separatist’s uprising, etc.). The transitional crisis of identity seems to be finished off at the beginning of 21st century, yet the process of acceptance of new security environment and multi-cultural realities is going on. The paper examines the process of re-formation of Russian national and ethnic identity and development national self-understanding in the post-Cold war era.

Prof. Dr. Aleksandar



The modern security threats in Europe, and especially in the transitional region of Southeastern Europe, are considerably different from the traditional military threats arising from statehood-related aspirations of the minorities, or from unresolved border issues between neighbours, or between regional aspirations of the former superpowers. Today's security threats emanate primarily from organized crime and terrorism, two curses that have spread their realm across the globe, and that threaten to establish breeding grounds in Southeastern Europe, due to the relatively soft and porous borders, unresolved status of ethnic communities in neighbouring states, internal instability and weakness of the institutions in the region’s states, as well as contradictory and sometimes counterproductive signals that are sent to the region by the large international organizations and influential countries.

A particular danger for the region arises from the newly developing “netted” structures of organized crime, which present organized criminal gangs not only as an alternative “industry” to various legitimate social services, an industry whose parts mutually compete, but increasingly as an aspiring government in itself, namely an industry whose parts cooperate, rather than competing, and which tend to reduce the level of competition and increase the level of cooperation across the region, thus threatening the very foundations of the state, and hijacking the state agenda by co-opting various state agencies and officials through corruption, intimidation, or manipulation into collusion.

This paper briefly outlines the main currents of development of the structures and aspirations of organized criminal gangs in the region, their changing roles in the region's societies, and the perspectives of their organized synergy with terrorist organizations occurring. It also discusses the most effective methods to address these problems and the conditions for their development and implementation in the region. Namely, the paper espouses a central argument that aims to show that the logic of development of terrorism in Europe implies that, sooner or later, especially Islamic terrorist organizations will be faced with a very real dilemma of whether or not to establish systematic cooperation with organized crime. Such cooperation would offer tremendous operational advantages to terrorists, with logistics for terrorist actions being provided by organized crime, while at the same time terrorism could provide an umbrella of “political legitimation” through “service to the right cause” of those who see themselves as structurally oppressed, for the classic operations of organized crime. Such quasilegitimation is already commonplace in Latin America, where traders in poppy flower, who pass the produce on to enter the chain of production and trafficking of heroin to the western markets, sometimes enjoy the status of those who care for the entire communities of poor, poppy-growing Latin American farmers. Similar structures of quasilegitimation could be established in areas populated mainly by Islamic inhabitants, should the international offensive led by the US against Islamic countries continue unabated, and synergies with organized crime could be used by the particularly “enterpreneurial” leaders of certain terrorist groups. The author warns against allowing such synergies to take place by the continuing aggression on the international front, which causes an increase in terrorism through the simple action and reaction mechanism.


Dr. Jordan DINIĆ



The programme for a revitalization of Africa through the New Partnership for Africa’s Development (NEPAD) project is determined by the need of the African continent to overcome its historic heritage and a rather unfavourable current situation, and to become part of the globalisation processes that had spread throughout the world in the late 20th and early 21st centuries.

After a brief clarification of the terminology included in the very title of the above project, the author identifies and analyses the important characteristics of the current situation in the continent, which has been and still is conditioned by the marginalisation and isolation of the continent from the main streams and processes that had been expanding throughout the world over the past decades. Assessing that the underdevelopment and poverty are the essence of the problem, the subliming factor of all other negative trends and the main cause of the continent’s marginalisation in the world’s economic, political and civilizational developments, the main point of the analysis is actually focused on finding the causes of this situation. In that context, the legitimacy of colonialism, the consequences of the globalisation process in the African continent, the link between domestic and external factors in the cause-and-effect connection with the negative development of the continent are being analysed.

The analysis of the important factors of the present and the future of the continent includes and identifies the historic and current advantages of the continent, which are also the realistic foundation on which the revitalization project rests on, such as natural and human resources and the richness of Africa’s culture, which has largely contributed to the diversity of the global cultures.

In the section on the contents and objectives of the programme for a revitalization of Africa, the author points out several essential characteristics, underlining that the programme is a part of the African leaders themselves, that it is the authentic product of their awareness that without their own responsibility for the fate of Africa’s peoples the problems that those countries are faced with will not be overcome.

Since the purpose of the programme for a revitalization is to include the continent in the globalisation processes, its implementation depends directly on the support and assistance of the international community and the international agencies and organizations, particularly of the African Development Bank, the World Bank and the United Nations Economic Commission for Africa. Namely, the global partnership for Africa’s development is directly correlated with the preservation of the global stability. A continuation of Africa’s marginalisation in the globalisation process would be a serious threat to both the world stability and the globalisation process itself, which would be incomplete without the inclusion of all of the world countries.

With an identification and analysis of the main priorities of the Programme and of the mechanisms and responsibilities for its implementation, the author concludes that NEPAD’s implementation will be successful only if it becomes the property and a true concern not only of the leaders but also of all African peoples united in their diversity. The author analyses the historic and current external and internal factors that had caused the present situation in the continent, and identifies the potential natural, human and other resources. The programme for a revitalization also encourages the raising of self-consciousness of the segments of society at large about the realistic potentials of the African peoples, thus gaining also a mobilizing character.

The author believes that the drawing up of the Plan of Action and its inclusion in the Programme is a rather positive side of the programme for a revitalization, assessing it as a strategic mechanism for obtaining sustainable development in the 21st century. The Plan of Action identifies establishment of peace and stability, democratisation of the systems in African countries and formation of uncorrupted and competent governments, that would work in the interest of the people and not in the interest of certain groupings or individuals, as important conditions for the implementation of the strategy. The author also points out the basic sector priorities that the Plan of Action stipulates: overcoming infrastructural differences between certain sectors, investing in information and communication technologies, development of electric power supply industries, transport and water supply. The development of human resources implies a poverty reduction, advancement of education system, upgrading of intellectual elite, development of health systems, agriculture, culture, science and technology.

In the section on “Controversies, challenges and problems in the process of programme realization,” the author tries to consider the Programme’ vision, contents and objectives within the milieu of Africa’s present reality and the main development tendencies in the international scene, which would to a large degree determine the frameworks, scope and results of the Programme’s attainment in practice.

In view of the diversity of cultures and traditions, beliefs and religions, different historic heritage, and with this different external influences, disproportionate degree of economic and overall social development, conflicts within and among certain states, the tradition of unconstitutional rulers and rules, corruption and a series of other factor, the author concludes that the project, basically substantial and progressive, will be faced with a number of challenges, dilemmas and difficulties, which would make its implementation uncertain, inconsistent and time-consuming.






The establishment of the International Trade Organisation was aimed at completing the process of institutionalisation of the international economic relations. The process began at Bretton Woods in 1944 with the establishment of The International Monetary Fund and the International Bank for Reconstruction and Development. This integration entity was planned to become a foundation of the post-war order, and was going to have a broader influence and importance than the economic one.

A third pillar of the International Trade Organization has never been established, but that is why the General Agreement on Tariffs and Trade (GATT) came into life. It is one of those agreements, whose nearly fifty-year duration had surpassed even the duration of some states. By carrying out trade negotiations, GATT adopted to new needs. However, the moment its integrity got questioned and such a special idea began to die out, the way was found to preserve the GATT achievements and to have the innovative approach join them. This was done with the establishment of the World Trade Organisation, as an international organisation that manages multilateral agreements in the area of trade (GATT), the trade of services (GATS) and the trade aspects of the intellectual property rights. The institution is of multinational and supranational character. It has its own structure that includes the Ministerial Conferences, the General Council and the Secretariat. The WTO continues a long tradition in GATT of seeking to make decisions not by voting but by consensus, although there are also “circles of decision making” that are gradually narrowing down with the degree of the achieved economic power.

 The WTO is today a primary concept whose main task is to work on bringing into practice the long-standing idea of free trade. In order to achieve this, it is necessary to abide by the basic principles, which the WTO has four of. They are: non-discrimination, reciprocity, market approach and fair competition.

If one draws a parallel between a product’s life cycle and GATT’s life, one can understand why GATT itself had reached its peak, but was also gradually surpassed. This is why the establishment of the World Trade Organization was a new opportunity to attain all that that GATT had not managed to attain, and to set new goals for the new century. With the establishment of the WTO, GATT was transformed into an organization, and its scopes were considerably broadened.

According to the author, there are several challenges before the WTO. Primarily, the process of solving problems on a multilateral level should be continued. Also, facing the still powerful forces fighting for the preservation of protectionism, more pronounced in industrial countries although present in developing ones, should be continued. Even if liberalized, non-discriminatory trade and investment policy are achieved, the WTO will maintain its importance as a forum for talks on new areas and issues. Perhaps the biggest challenge in the WTO’s future is to work on further integration of developing countries into the world economic trends. The process of decision making itself is perhaps the best opportunity to show to the developing countries that something has changed, the author concludes.




Dr. György SIMON Jr.



The author analyses the economic reforms that have been implemented in Russia since 1991. In his opinion initial attempts to introduce market reforms by applying the shock therapy and forced-pace privatisation of state-owned enterprises caused high political and social costs to the Russia’s fragile democracy. Therefore the radical reform policy was temporarily suspended, while the transition to a market economy was proceeded inconsistently and often unevenly. After the acute financial crisis took place in August 1998 the reform policy has been given new impetus. In the last few years substantial progress has been made in the process of privatisation, implementation of reforms in the financial sphere, energy sector, in the approach to  the agriculture, in the employment policy, in making changes of the tax and pension systems. All these changes contributed to attaining the sustainable economic growth. The author concludes that for the persisting crisis in a number of areas, the future of the Russian market reforms still remains largely uncertain.





At the beginning, the author points out that rent-seeking economy is a distinctive phenomenon for majority of the contemporary market economies. It is reflected in the aspirations of the well organised interest groups to capture public choice and politicians as a tool to gain non-market benefits for themselves, or to take activities to gain income by non-market redistributions instead to do it on the market. According to the author, examples of rent-seeking economy are antitrust, arbitrary export-import restrictions, subsidies for various sectors of economy, unions' practices of closed shop or collective bargaining.

The author notes that there are legitimate public goods and services (such as military and police services or infrastructure) and therefore legitimate taxing and spending for providing of such public necessities. In his opinion, however, rent-seeking economy results from the growing government intervention in economy based upon widening of its role and responsibility to handle a wide spectrum of illegitimate ‘’social’’ issues, rather than rest upon better providing of classical government services. Rent-seeking economy is a result of abandoning the strict market economy with no or little income gained by the extra market redistribution.

The social environment where it is permissible and desirable to remove as great as possible economic activities from the free, non-regulated markets to the public sector or to the sector of the highly regulated economy which is cartelised by coercion, leads entrepreneurs to change their orientation. They do not perceive the regular competition as the best way to make success, but by lobbying with the political bodies. The basic rule of rent-seeking is that when there is a chance to gain rent, there will be someone who will try to get it. Therefore, in the author's opinion the government and the public inclining towards state interventionism are the main to blame for the rise of rent-seeking. This is because they make chances to gain rents since the general social and political environment enables it, as well as because there is an insufficiency of detailed legislative and constitutional restrictions on the role of the government in economy.

Therefore, the basic condition for elimination or at least reduction of the scope of rent-seeking economy, in the opinion of the author, is to drastically diminish the role of the government in economic affairs. In that way the economy would be strictly separated form the politics, and entrepreneurs would be sent a signal that the reallocation of resources from productive to lobbying activities for gaining privileges is not an appropriate way to gain income. Within this context, the author points to consideration of the achievements of the James Buchanan's public choice theory that deals with the defects of political decision-making. He also points to the fact that the essence of the liberal constitutional reform that could diminish the scope of rent-seeking could be best perceived in the words stated by Friedrich Hayek, the Nobel prize winner, saying that the government should be prohibited to employ ‘’coercive discriminatory acts’’. This means that the government should not employ its monopoly of physical force to award economic privileges to anyone, but it should adopt laws of general use to be applied to the unknown number of cases in the future, concludes the author.


Dalibor KEKIĆ



The author firstly points to the fact that within the overall comprehension of security a difference is made between the two terms – the notion and the concept of security. The notion of security is understood as an idea, as an apprehension of the system of security. He says that there are four schools of opinion about security: realistic, liberal-institutionalist, alternative-critical and globalist ones. The realistic and globalist are two schools of opinion that are basically opposite to each other; the former takes the state as a focus of international security, while according to the latter one the state alone has for a long time been incapable of resolving the problems of security . The liberal-institutionalist and alternative-critical approaches consider that apart from the state, the individuals, socials groups and international organisations are also the factors of security.

The contemporary concept of security is described as the concept of overall security and the concept of the co-operation security. Apart from the military or state security, the overall concept of security also includes the notion of societal, economic, ecological, political and other kinds of security. The concept of the co-operation security is the symbiosis of the individual and collective security, collective defence and promotion and expansion of stability.

In the author's opinion the security culture is one of the substantial elements of the understanding of security. This idea has not been sufficiently elaborated or defined so far, although in every day speech it is very often used for some trivial and insignificant phenomena. The scientific circles neither devote sufficient attention to the security culture. The author endeavours to explain the security culture and to define its role, significance and position in the contemporary understanding of security.

The security culture is the integral part of the overall culture pattern. It is the primary need of individuals. By applying the security culture individuals set them free from dependence and submission to the state, international organisation and institution, and so they become the factors of security independent in making decisions on their own fate. The security culture indicators are as follows: thinking or reflection on security, security behaviour that is the outward manifestation of the security as well as the relationship and approach to security which shows the willingness to respond to threats and challenges in the material and spiritual sense. We conceive the security culture as a value, as something people should possess, as an interest, since the interest of every individual is to be secure as well as a need as the basic condition for one's own existence. It is manifested at the global, regional, national and individual levels. The security culture is the most difficult to achieve at the global level because of a large number of individuals, and the most easily at the individual level or at the level of a minor group, since the coherence of a group is much greater there.

The role of the security culture in the contemporary understanding of security lies in emancipation, in setting the individuals and groups free from any sort of pressures and violence. Its position is defined by a complete culture pattern, it being the primary part of the culture of need, and it can serve to achieve security by establishment of co-operation, by reaching of an agreement and by conducting of negotiations. The notions that are by its contents similar to the security culture are the non-violent conflicts culture, strategic culture and peace culture. The security culture in the contemporary understanding of security is such a pattern of thinking, behaving and acting that includes all forms of security - individual, military, ecological, economic and other ones. It, by its framework, includes and carries out the ideas of the individual and collective security, collective defence and promotion and expansion of stability. It can be finally confirmed that the security culture is a variable category that changes under the impact of the alteration of the system and the concept of security. The objective of the security culture is to educate, make up and achieve security of the individual and the mankind in order to make the society and the mankind survive. The author wonders if the security culture has shaped the existing system of security or the security culture has resulted from the system.

In the last part of the paper, the author considers the contemporary system of security. There are opinions that it is manifested in two forms. The first one is the state-centred system with states that act as the main objects of security, the main preoccupation of the actors of the world politics is security, and great powers are in the focus of decision-making and the sensitivity to changes is comparatively low. Another system is multi-layered – it consists of individuals, various governmental and non-governmental organisations, transnational companies, etc. Here, the commitment of the actors on the international scene is more autonomous, new actors are in the focus of decision-making and the sensitivity to changes is comparatively high.





The author explores the power of the European Parliament (EP) in the co-operation procedure, using health and safety Directives as a sample. The measure of power is success of the amendment. Each amendment proposed by the EP was traced through the legislative process, coded according to its type, proportion adopted and its reading was introduced in. The results demonstrate that the EP is an influential legislator, as a large proportion of EP amendments is incorporated into the final legislative text. As for the factors affecting the success of amendments the analysis finds that the role of the Commission is considerable, that less politically controversial amendments are more often accepted, but non-technical amendments have a high acceptance rate as well, and that amendments introduced in the second reading have a lesser chance of success than those proposed in the first reading.





Intellectual property refers to creations of the mind: inventions, literary and works of art, as well as symbols, names, images, and designs that are used in commerce. Intellectual property is divided into two categories: industrial property, which includes inventions (patents), trademarks, industrial designs, and geographic indications of source; and copyright, which includes literary and works of art such as novels, poems and plays, films, musical works, works of art such as drawings, paintings, photographs and sculptures, and architectural designs. Rights related to copyright include those of performing artists in their performances, producers of phonograms in their recordings, and those of broadcasters in their radio and television programmes.

1883 marked the birth of the Paris Convention for the Protection of Industrial Property, the first major international treaty designed to help the people from one country obtain protection in other countries for their intellectual creations in the form of industrial property rights, known as: inventions (patents), trademarks, industrial designs.

In 1886, copyright entered the international arena with the Berne Convention for the Protection of Literary and Artistic Works. The aim of this Convention was to help nationals of its member States obtain international protection of their right to control, and receive payment for, the use of their creative works such as: novels, short stories, poems, plays; songs, operas, musicals, sonatas; and drawings, paintings, sculptures, architectural works.

The Universal Copyright Convention (UCC) was adopted in 1952 and formalised in 1955, as a complementary agreement to the Berne Convention.  The UCC membership included the United States, and many developing countries that did not wish to comply with the Berne Convention, since they viewed its provisions as overly favourable to the developed world.

Patent Cooperation Treaty, signed on June 19,1970, provides for the filing of a single international patent application which has the same effect as national applications filed in the designated countries. An applicant seeking protection may file one application and request protection in as many signatory states as needed.

On November 6, 1925, the Hague Agreement Concerning the International Deposit of Industrial Designs was adopted within the framework of the Paris Convention. Under the provisions of the Hague Agreement, any person entitled to effect an international deposit has the possibility of obtaining, by means of a single deposit, protection for his industrial designs in a number of States with a minimum of formalities and of expense.

The system of international registration of marks is governed by two treaties, the Madrid Agreement Concerning the International Registration of Marks, which dates from 1891, and the Protocol Relating to the Madrid Agreement that was adopted in 1989. It entered into force on December 1, 1995, and came into operation on April 1, 1996. The reason for adopting the much more recent Protocol, following the original Madrid Agreement of 1891 (last amended at Stockholm in 1967), was the absence from the Madrid Union of some of the major countries in the trademark field, for example, Japan, the United Kingdom, and the United States of America.  The Protocol is intended to make the Madrid system acceptable to more countries.

The Rome Convention consists basically of the national treatment that a State grants under its domestic law to domestic performances, phonograms and broadcasts. Apart from the rights guaranteed by the Convention itself as constituting that minimum of protection, and subject to specific exceptions or reservations allowed for by the Convention, performers, producers of phonograms and broadcasting organisations to which the Convention applies, enjoy in Contracting States the same rights as those countries grant to their nationals.

The World Intellectual Property Organization (WIPO) is an international organisation dedicated to promoting the use and protection of works of the human spirit. These works, intellectual property, are expanding the bounds of science and technology and enriching the world of the arts. Through its work, WIPO plays an important role in enhancing the quality and enjoyment of life, as well as creating real wealth for nations. In 1974, WIPO became a specialised agency of the United Nations system of organisations, with a mandate to administer intellectual property matters recognised by the member states of the UN. With headquarters in Geneva, Switzerland, WIPO is one of the 16 specialised agencies of the United Nations system of organisations. It administers 21 international treaties dealing with different aspects of intellectual property protection. The Organisation counts 177 nations as member states.

One of the successes of the Uruguay Round of trade negotiations was the Agreement on Trade-Related Aspects of Intellectual Property (TRIPS Agreement), which came into effect on 1 January 1995, and up to date it the most comprehensive multilateral agreement on intellectual property. The TRIPS Agreement is a minimum standards agreement, which allows Members to provide more extensive protection of intellectual property if they wish so. Members are left free to determine the appropriate method of implementing the provisions of the Agreement within their own legal system and practice

On January 1, 1996, an Agreement Between the World Intellectual Property Organization and the World Trade Organization entered into force. It provides for cooperation concerning the implementation of the TRIPS Agreement, such as notification of laws and regulations and legal-technical assistance and technical co-operation in favour of developing countries.

In the 21st century intellectual property will play an increasingly important role at the international stage. Works of the mind - intellectual property - such as inventions, designs, trademarks, books, music, and films, are now used and enjoyed on every continent on the earth. In the new millennium, international protection of intellectual property rights faces many new challenges; one of the most urgent is the need for states to adapt to and benefit from rapid and wide-ranging technological change, particularly in the field of information technology and the Internet.





The revision of the Dayton agreement implies only the restructuring of the Annex 4 of the Constitution of Bosnia-Herzegovina or actually the present constitutional construction and territorial composition of Bosnia-Herzegovina. The unfavourable economic and political situation in Bosnia-Herzegovina shows that the achievements resulting from the implementation of the Dayton agreement have been modest so far. The author substantiates this by presenting the data on a very small number of persons who managed to achieve their right to repatriation to their pre-war homes (in the 1995-2003 period). In addition, he notices that many changes of the Dayton agreement have already been made in the last seven years since it has been implemented, presenting the specific activities and decisions taken by the High Representative in Bosnia-Herzegovina.

In the period after signing of the Dayton agreement there were several different ideas on the future of Bosnia-Herzegovina – to be established as a centralist state, as a decentralised country, as the one organised in cantons keeping up the two-entity structure at the same time. Therefore, the political parties in BH took different positions regarding the necessity to change some constitutional solutions. The Boshniak, Croatian and civil political parties are pleading for restructuring of the constitutional solutions in the form they are provided for by the Dayton agreement. On the other hand, the Serb political parties speak in favour of keeping up the existing constitutional construction. As the author assesses the new initiatives for constitutional reconstruction of Bosnia-Herzegovina are based on the proposals for decentralisation, regionalisation and (finishing of) cantonisation of Bosnia-Herzegovina, as well as abrogation of entities.

Analysing the positions of the leading factors of the international community the author points out that they have not reached consensus on the initiative for restructuring of the existing constitution of Bosnia-Herzegovina. On the contrary, the leading factors of the international community mostly emphasise that citizens/peoples of BH should be the ones to decide on the constitutional construction of their country.

The author concludes that it would be unrealistic to expect that the minimum of social and national consensus would be reached on the constitutional restructuring of Bosnia-Herzegovina, as well as on holding of the new international conference (Dayton II). As the author says it seems most realistic that the representatives of the international community will change some of its provisions in the field while implementing the Dayton agreement.






This paper attempts an explanation to some of the complex legal issues surrounding the whole concept of responsibility for violations of international humanitarian law. The arguments here are based on reflections on the draft articles on the responsibility of states for the violations of international humanitarian law adopted by the international law commission as well as opinions of experts on the subject, treaties, conventions, international jurisprudence, and internationally recognized principles and customs that govern conduct in armed conflicts so as to limit human suffering particularly of non combatants.




The evolution of trademark law, from the time of the earliest trademark laws till today, is characterized by a continuous effort by courts and legal literature to extend the civil protection provided to trademarks. These efforts resulted  in supplementing the legal concept of ‘likelihood of confusion’ with the concepts of ‘likelihood of association’, ‘unfair resemblance’ and ‘dilution’.  This conceptual expansion is readily explained by the increasing significance of the advertising and informational functions of the trademark which is evident in contemporary economy; it is also explained by the inadequacy of the concept of "likelihood of confusion" and the “indication of origin" function to provide sufficient legal protection to trademarks.




In this paper the author explores advantages and disadvantages of expanding the definition of security from the traditional state-centric and military-oriented focus of security to the broader focus on human security. The author's opinion is that human security indicates important social-economic threats, but that the theory of the concept has not yet been coherently developed. Such a broad concept with so many equally valid dimensions of security lacks mechanisms for the establishment of causal relationship among them, and for prioritisation on policy level. There are no clear answers on key questions: who or what will provide human security, under which conditions, and how? The all-inclusiveness of the human security approach reduces its value as a concept both to inform and to legitimise practical policy-making.

Prof. Dr. Radovan KOVAČEVIĆ

Foreign Direct Investment as a Factor of Growth – THE EXPERIENCE OF eUROPEAN UNION COUNTRIES


The empirical literature on the growth impact of foreign direct investment (FDI) suggests a strong positive relationship between the two. Yet, the lack of evidence of a clear causality from FDI to growth impedes our ability to firmly conclude that FDI inflows are a driver and not just a consequence of higher economic growth. Just as a higher return on investment typically attracts more fixed investment, it should be no surprise that it also attracts more foreign investors.

Having said that, we need to acknowledge that the difficulty of finding unambiguous evidence of causality from FDI to growth does not refute the notion that such a relationship nevertheless exists. As the growth literature suggests, many different factors combine to create an environment conducive to higher economic growth. Proper policies and institutions have been found to be particularly important over longer periods of time. In this context, we need to view FDI from a broader perspective than its direct and immediate impact on growth itself. Could it not be the case, for example, that foreign investors are more demanding than indigenous firms as regards a stable and favourable policy environment, good infrastructure and an appropriate human capital stock? If governments introduce policies and create institutions with the purpose of attracting FDI, they may create an environment more generally favourable to growth, even though some of this growth is not the result of FDI per se.

The evidence is stronger that FDI has been boosting growth directly in Central and Eastern European countries (CEE) than in the 15 countries of the European Union (EU-15). The reason, as we have argued, is that while these countries needed to bridge the technology gap to the more advanced countries, they nevertheless met some key conditions – especially in terms of human capital – which helped them bridge this gap more quickly with the help of FDI. In addition, the sheer magnitude of net FDI inflows helped sustain a higher level of domestic investment than would have been possible on the basis of domestic saving and debt-creating capital inflows alone.

While FDI is expected to continue to contribute to economic growth in the CEE countries that have joined the EU, it is less clear whether the economic gains from FDI will be as high as during the transition from plan to market. The more the new EU members come to resemble EU-15 countries in terms of inward FDI stocks as a share of GDP, productivity, efficiency and level of technology, the less likely it is that FDI will have a positive influence on economic growth beyond what is observed in more advanced market economies. That said, FDI and the associated activities of transnational corporations will undoubtedly remain an important welfare-enhancing force – both inside and outside an enlarged European Union.

Prof. dr Luka BRKIĆ



This paper analyzes recent free trade arrangements from a positive political economy perspective. In contrast to most other literature, which fails to take into account geographical factors, it is argued here that proximity and transportation costs play an important role in trade arrangements. Another important also largely neglected factor is the degree of social cohesion in terms of labor standards among potential trading partners. Accepting social integration might also be a condition for admitting those countries to the agreement. Changes of trade policy over time can therefore be explained by changes in the relative political influence of the sectors considered. The other important factors are, of course, a change in the degree of retaliation, leading to lower tariffs under higher retaliation, and a leveling of social standards. Redistribution across countries could also considerably change the optimal rate of tariff. The EU with its regional cohesion funds might be a good example of how those are used as a side-payment for diminishing the social divergence in the member countries. Countries with higher standards should only be willing to integrate when others raise their social standards as well. The negotiations about the social protocol in the EU indicate that this is in fact the case.

More than 40 years of European integration have led to an habituation of thinking of the European Community as something ideologically neutral, which transcends normal political debate. European issues, it seems, do not fit the structure of the usual right-left ideological controversy. The only open fault-line in European politics is between advocates of “more” and those of “less” integration. The paper explores the potential cognitive and political gains of a change of perspective. It argues that the issue of more or less integration is often not interesting in itself but only to the degree that it influences the content of policies. It further shows that the policies at stake are normally such, that they can be usefully debated in the right-left framework. The decision about the site of policy control – national or European – is often only the guise in which a decision about the redrawing of the boundary between market and state, between the sphere of competitive allocation and the sphere of political coordination, materializes.

This paper aimed at stressing the fundamental differences between conventional and contractarian constitutional orders. To achieve it, we have used the concept of common knowledge and have related it to its political philosophy background, especially with regard to communication and induction. The former generates a spontaneous social order – it is an evolutionist view that belongs to the Hume – Menger - Hayek tradition. The latter produces a contractarian vision shared by the Brennan-Buchanan-Tullock tradition. We consider here a basic distinction between institutions and conventions. An institution is considered as a formal, explicit rule, while a convention appears to be a tacit, implicit agreement. The former can be associated with contractarian constitutionalism, whereas the latter is related to evolutionism. In this context, institutions should not be understood as formalized conventions (such as law in Hayek). They are rather the expression of a voluntary and deliberate agreement, of a covenant. The application describes features relevant to the development of a European constitution and the corresponding unified legal system. It requires a clear vision of what a European “state” is meant to be or become. Then, once a constitutional setting is chosen, one must address the question of legal organization, in particular the nature of administrative law. Two different acceptation of law are thus associated with the two concepts of convention and contractarian institution. The former can be regarded as customary rule, a kind of common knowledge that emerges from tradition and sympathy. By contrast, the latter is the place of explicitly created common knowledge. If it is to become more integrated, Europe will have to tackle this constitutional question, either in an evolutionary or in a contractarian way.




The author analyses the significance of the rich cultural heritage in Kosovo and Metohija as well as the consequences of its destruction and ruining. Along with this, she takes into consideration the international standards of protection of the cultural heritage in the world. Development of these standards is manifested in increasingly broad implementation of the existing and adoption of new international conventions whose goal is to protect as comprehensively as possible the cultural heritage of the mankind. The author gives a survey of the most important conventions adopted by the UNESCO and the Council of Europe, pointing to the significance of implementation of the Hague Convention and its 1999 Second Protocol introducing the international criminal responsibility for the persons who violate or order violations of the protected cultural property.

The paper presents historical, esthetical, archaeological, ethnological, scientific and some other values of the cultural heritage in Kosovo. By its characteristics, these values speak of the presence of various religions and civilisations here, while the value of the cultural property in Kosovo and Metohija is far from being merely local and regional. This fully applies to the significance of the cultural monuments of the Serbs.

Since Kosovo is under a special international protectorate, UNMIK is also in charge of the preservation of the cultural heritage, what is in accordance with the Resolution 1244 of the Security Council. Also the Joint Document of UNMIK and FRY (November 2001), the chapter on protection of the cultural property confirms the willingness to implement the relevant provisions of the Hague Convention (1954) on protection of the monuments of culture and cultural property. Apart from this, the author points out that the Constitutional Framework for Provisional Self-Government in Kosovo (May 2001) provides for the obligation of the Provisional Institutions of Kosovo to create conditions in order to enable the communities to preserve, protect and develop their identities, also pointing to the their duty to work on promotion and preservation of the cultural heritage of all communities with no discrimination. However, in spite of the presence of the international forces in Kosovo and Metohija, that should guarantee the implementation of the above mentioned documents and the international standards set by the UNESCO and the Council of Europe, destruction of the Serb monuments of culture had not been prevented, and it was particularly prominent in the wave of violence in March 2004. In those events were also destroyed several dozens of Orthodox churches and monasteries, what was noted in the joint statement made by the Council of Europe and European Commission as well as in the report submitted by the UNESCO.

The paper also analyses the international programmes of cultural heritage protection in Kosovo, pointing to the basic conclusions and proposals submitted by the missions of the UNESCO, Council of Europe and European Commission that visited Kosovo and Metohija several times. They point out that the violation of international standards in Kosovo is reflected in the deliberate destruction as well as the lack of any protection measures of the monuments from further ruining that results from not taking care of them. Destruction of the religious and cultural heritage is one of the ways for manifesting hostilities as well as the methods for »erasing« the evidence on the historical presence of the people in Kosovo. Apart from this, the author points out that the bad conditions of the cultural heritage in Kosovo also result from the involvement of the international organisations, both governmental and non-governmental, that in this field has often been partial and with no defined programmes and priorities. The author takes a critical consideration of the insufficient involvement of the Serbian authorities in this field, what is, among other things, reflected in the lack of elaborated programme of activities, non-coordination and lack of continuity in their work.

The author points to the impact of the violence committed in March 2004, as well as on the further work and composition of the international missions, this above referring to the common mission of the Council of Europe and European Commission. These events have in a brutal way drawn attention to the real picture of the bad conditions of the Serb cultural heritage in Kosovo and Metohija, after which the restoration of the destroyed and protection of the remaining monuments of the Serb culture has gained a more important role in involvement of the international community in this field. This role implies, above all, involvement of the representatives of the Serb community in the work of the organs and bodies established by the Council of Europe and European Commission with the aim of restoring the monuments of culture of religious character.

The article also gives a survey of the measures that SM and Serbia, itself, have already taken or are going to take for the purpose of protecting cultural property in the Province. According to the author's conclusion, in order to apply comprehensive and efficient measures of restoration of the destroyed and damaged monuments of culture and protection of the remaining ones in Kosovo and Metohija it is necessary to, with no delay, ensure the co-ordination of activities of the international and domestic bodies and organisations in order to prevent the irretrievable loss of the rich cultural heritage.

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