INTERNATIONAL PROBLEMS, 2006

Review of International Affairs

I N T E R N A T I O N A L    P R O B L E M S, VOL. LVIII, NO. 1-2, 2006

 

Dr. Amritha VENKATRAMAN

FUNDAMENTALISM AND ITS STEREOTYPES

ABSTRACT

The author explains that in its origin the term fundamentalism has no direct negative or violent connotation. However, this term has often been applied to those who resort to violence based on the ideological or religious adherence. Historically, most of fundamentalists have been moderate and apply passive and peaceful methods in their activities. Only active fundamentalists use extreme measures to achieve their religious ideals. The heightening existence of the active fundamentalism, and the disruption caused by it, leads to the projection that all fundamentalists are inherently violent in nature. This stereotype has been imposed on Islam particularly in the post-September 11, 2001 period. Investigating the relationship between Islam and fundamentalism the author asserts that, even though fundamentalism can exist in Islam, not all Muslim fundamentalists are active and violent.

 

Svetlana ĐURĐEVIĆ-LUKIĆ

BRINGING THE STATE BACK: STRONG VERSUS WEAK STATES

ABSTRACT

This paper explores the problem of defining a weak state and the indicators for assessment of a state’s strength. The author argues that there is no clear conception because so many different phenomena are attributed to state weakness. State weakness is observed in very different contexts – from geopolitical, to societal, to administrational efficiency. The indicators proposed are not precise even within each of three separate clusters of framing state weakness detected here. Related scholarship is so diversified that term ‘weak state’ suffers from considerable conceptual vagueness. All-inclusiveness of the concept might provide for various levels of intrusiveness, and hence bears long-term policy implications and practical consequences, for proclaiming of a state weak offer a basis for various forms of foreign interventions.

 

Ivan MARKOVIĆ

PROCEDURES IN MULTILATERAL TRADE NEGOTIATIONS WITHIN THE GATT/WTO INTERNATIONAL TRADE SYSTEM

SUMMARY

Trade negotiations are the basis for establishment of the international trade regime. If two participants take part in them these are bilateral negotiations, and if there are more than two of them then these are multilateral ones. When states act as participants or negotiating parties the negotiations most often serve to establish the framework or the rules of behaviour or to settle a trade dispute. In order to understand the process of multilateral trade negotiations one should be familiar with the rules by which it proceeds.

The purpose of the rules and procedures is to define in detail the mutual relationship of negotiators whose number has greatly increased from 23 member states-founders of GATT to 148 present members of the World Trade Organisation. Every member state firstly negotiates with the trade partners who have been entitled the original negotiating right, the right of the main one and the right of the significant supplier, and just after that with other member countries. In spite of all this, member states take benefits in accordance with the most-favoured nation treatment.

As states are the toughest and most cautious negotiators that very thoroughly prepare themselves for negotiations rules and procedures must be defined in detail. They are defined in accordance with the type of negotiations (regular, subsequent or negotiations on accession) and goals of negotiations (GATT, the World Trade Organisation founding, reduction of the level of tariff and non-tariff protection) that are very often mutually interwoven.

The rules by which multilateral trade negotiations proceed have considerably changed since the foundation of the General Agreement on Tariffs and Trade-GATT) in 1947. These rules have not been altered at once, but as a result of the changed conditions, and therefore they have changed gradually. The changed rules are actually the modification of the existing ones or actually reflection of the adjustment to new conditions and needs of negotiators. For this reason we can say that there has been a continuity in the process of multilateral trade negotiations in the last 60 years. This brought about the transformation of GATT into an unofficial international organisation that turning into the World Trade Organisation in 1995 became the first international organisation that has defined international trade relations in an institutional way (similar to the International Monetary Fund and the World Bank in the field of international finance).

Rules are only the basis providing the framework for negotiations while their outcome depends on the capability and will of the negotiating parties. This can be best seen by observing the past course of institutionalisation of the international trade that is characterised both by periods of unexpected and great moves forward, but also by some considerable delays and crises. Such a trend can be expected to occur in the future too, for simple reason that states wish to protect their economic areas and provide new markets for their economies at the same time.

Dr. Pero PETROVIĆ, Miroslav ANTEVSKI

REGIONAL ECONOMIC INTEGRATION IN EUROPE: EFFECTS AND OPEN ISSUES

SUMMARY

Regional economic integration has achieved the highest level in the European Union. In spite of that success, few open issues remain. They are results of mixed character of European integration: political and economic. Too many kinds of interests are of opposed character: national, political, economic, cultural, sectoral, regional, religious etc. It is very hard to harmonize them in real politics. The main problems in the EU are following: international competitiveness of European economy, social character of European states, national productivity, challenges of enlargement. Their cause is in the nature of European integration. European citizens enjoy more benefits of welfare state than Americans or Asians. The costs of such benefits are too heavy burden for European economy. Today EU have to redefine some of its goals and values in the way which have capacity to sustain the main European values, in one side, and improve productivity and international competitiveness of European economy, in the other.

EU is lagging behind USA and South-Asian Countries in R&D, innovation, competitive pressure and environment, dynamics in economy, national productivity. Therefore USA, Japan, South-Asian countries, China and India in some sectors, are the leading nations in the world economy. Previous results in improving European competitiveness are not satisfactory. It is real to expect that efforts in improving competitiveness of European economy should be the core goal of EU future.

EU have not yet a strong capacity for integrating new member states in homogeneous European economic, political and social area. The convergence in EU is not increased; on the other hand, last enlargement has increased a divergence between EU nations. Therefore, an enlargement capacity of EU is reduced. The candidate countries have to wait for new (or redefined) enlargement strategy. In the meantime they have to solve a lot of internal problems, improve their economies and democratic capacities.

 

Maja NASTIĆ

HUMAN RIGHTS IN THE EUROPEAN UNION CONSTITUTION

SUMMARY

The Treaty Establishing a Constitution for Europe was signed by heads of states or governments of the five European Union member states on 29 October in Rome, thus opening a new stage in development of European integrations. Adoption of the Constitution was preceded by the intensive negotiations that lasted for several years and the aim was to consolidate the European links and building of its common future. At the beginning, the ratification of the Constitution was very successful, while in mid-2005 the referendums took place in France and then in Holland. Their clear “no” to the Constitution of Europe changed the situation drastically, so as meant to be the act of integration, the Constitution almost turned into its opposite. After the wave of Euro scepticism that was prominent immediately after the referendums had been held the situation has stabilised. This is confirmed by the fact that the Constitutional Project has not been abandoned, although only one “no” should mean its end. Expecting the resumption of negotiations we can point to the most important innovations the Constitution has brought into the sphere of human rights.

The Constitution has strengthened the position of an individual not only in the field of economic freedoms but also in the recognition of a higher degree of protection of fundamental human rights. This has been achieved by incorporating the Charter of Fundamental Human Rights into the Constitution of the Union. By all this, fundamental rights would be consitutionalised for the first time at the Union level, to be granted the status of primary law. The Charter of Fundamental Rights was adopted at the Nice summit in 2000. In a single act it brings a number of civil, political, social and economic rights, thus reaffirming the rights derived from the constitutional traditions and international commitments that are common to EU member countries: the European Convention, social charters adopted by the Union and the Council of Europe, the rights of precedents of the Court of Justice and the European Court of Human Rights. It is clearly stressed that the Charter is to be applied to the Union’s bodies and institutions, but in a way that it does not establish a new law or a tasks for the Union or modifies the authorities and assignments defined in other parts of the Constitution.

An important new thing laid down in the Constitution in the Article I-9 is that there is an explicit possibility for the European Union to accede the European Convention. That opens the question of relationship between the two acts that regulate the same field and it is the field of human rights, but from different starting positions and with different goals. Both acts preceded the Constitution, but with its adoption it will be interesting to see how they will simultaneously exist covering almost the identical space.

This also opens the question of a relationship between the two courts: the European Court of Human Rights and the European Court of Justice. Bearing in mind the pan-European character of the European Convention and the past practice of the European Court of Human Rights, it seems a possible solution that it should set a European minimum of human rights protection no national court or even the European Court of Justice should go beyond. But in case a measure taken by the European bodies is not in accordance with the European Convention, the European Court of Human Rights could only state this without taking any specific measures. In such cases the European Union would make itself a final decision on how to act next, and the European Court of Justice would remain the last arbitrator in practicing the European Union law.

Such a concept would bring multiple benefits to European Union citizens; it would ensure the best possible protection of their fundamental rights. It would also eliminate the risk of interpreting the same right in different ways on the part of different courts. Accession of the European Convention would not prevent the European Union to further develop traditional human and civil rights, since the standard set by the European Convention would be a minimum no one should go beyond. The fact is that already now the Charter of Fundamental Rights includes more rights it guarantees than it is the European Convention. Apart from civil and political rights the Charter also regulates economic and social rights, as well as the rights of new generations as are the right to personal integrity, the right to free choice of profession, the right to work, the right to good administration, etc.

By all this, the Charter does not strictly apply to traditional division of human rights to civil and political, on one hand, and economic, social and cultural rights, on the other. Within each of the six chapters of the Charter there are at the same time both civil and political and economic and social rights, what depends on their purpose and the field they protect: freedom, dignity, equality. A great advantage of the Charter is that it is written in a clear, simple and understandable language, so that it has found its way to Union citizens. They have so far and during a short period of time since it has been adopted, although not being a legally binding act, referred to it in their letters and petitions sent to the European Parliament and the European Commission. More interesting is the fact that the Charter has been taken into account even on the part of the European Court of Human Rights.

It should be kept in mind that there is only a possibility for the Union to accede to the European Convention. In order to implement this idea the Convention itself should be changed: it is necessary to adopt the Protocol to the Convention that should be ratified by member states after that.

Expecting new conferences and negotiations on the Constitutional Project to take place we can conclude with certainty that it will surely be changed in some parts, including the field of human rights. In the meantime, it is of general interest that both the European Court of Justice and the European Court of Human Rights keep on working on developing their co-operation and overcoming the possible inconsistence in their court practice.

Sanja JELISAVAC

PATENT RIGHTS IN INTERNATIONAL TRADE

SUMMARY

The significance of intellectual property rights grows for trade simultaneously with the growth of the share of high technology and knowledge of intensive products in the overall world trade. There is a strong economic need for patent protection. The paper analyses the origin, process of changes and prospects for trade in patent rights. It is necessary to functionally protect them so that international trade in patent rights can proceed. The basic criterion for authorisation of the protection should be the invested effort in attaining the goal its creator has striven to as well as the degree of merit for creation of a piece of intellectual goods. The criterion of social benefit offers the basis for justification of that protection. Actually, if a society does not award creators an optimal social output would not be achieved. This would occur particularly be the case if the illegal use of intellectual property is not prohibited. Such a bad policy a country pursues would discourage innovators, what would for a long period of time cause decline in GDP.

In order to keep on developing this field it is necessary to encourage development in a proper way and by applying appropriate economic factors. The international trade in patent rights is stimulated by higher protection of these rights, when, for example, exports in patent products on a foreign market is on the increase. For a short period of time, only an exporting country benefits from a higher protection of patent rights. From a static point of view, patent rights can be regarded as a mechanism for technology transfer that worsens the international allocation of output. But for a long period of time protection promotion positively affects both developed and developing countries. International recognition of patent rights can be also interpreted as an adjustment mechanism offering guarantees for achievement of a dynamic competition among countries. It is through patent rights that innovating countries are encouraged to develop new technologies that in the next generations will be used by following countries. This mechanism brings about a continuous technological process and economic growth and from the dynamic point of view, both leading and following countries benefit from them. Protection promotion gives rise to growth of international trade in patent rights.

Increase in the innovative activity has led to adoption of a large number of international legal regulations. The fast development of human thought and an increasing number of innovations has been regulated by numerous international conventions and agreements.

The degree of patent protection is important for the foreign investors who wish to access the markets in Serbia and Montenegro. When laws in this field are adopted Serbia and Montenegro will fulfil significant preconditions for harmonisation and modernisation of laws according to the requirements imposed by the EU, the Process of Stabilisation and Associations and WTO rules (especially those included in TRIPS). The net importing countries of intellectual property, as ours is, should implement the TRIPS Agreement in the ways that promote a dynamic competition. According to the TRIPS Agreement, it is necessary to appropriately implement the laws based on the same principles all over Serbia and Montenegro, since it is the only party in the negotiations with WTO. Of course, the adopted harmonised and transparent national laws on intellectual property are not a guarantee that Serbia and Montenegro has reached the required level of legal protection in this field. It is important to ensure a genuinely efficient protection of those rights. This includes application and implementation of those laws. Serbia and Montenegro should start preventing efficiently the sale of forged and piratical goods that are openly sold all over the country. By taking a co-ordinated and decisive action, negative effects of forgery would be eliminated or limited and there would be made short- and long-term achievements that enjoy confidence of the international community.

 

Dr. Vid VUKASOVIĆ

INTERNATIONAL LEGAL REGULATION OF PROTECTION AND SUSTAINABLE USE OF WATER COURSES

SUMMARY

The article deals with international legal regulation of protection and sustainable use of watercourses. The introduction and first part of the article are devoted to the legal basis which generally regulates these matters on the universal and wider European levels. The author stresses the fact that on both levels legal regulation is considerably developed and that there are both declaratory and contractual documents regulating this matter. A number of important conventions and other treaties are already in force and/or are expected to be adopted and ratified. Second part of the article deals with the Danubian Region and, finally, the last part is devoted to the cooperation concerning the use river Sava in navigational and non-navigational purposes. The author emphasizes the fact that besides the international water and environmental law, an important source of law is the EU. The whole corpus of the EU water law is one of most developed branches of the Communal Law in general and important, from different reason not only for the Member States but also for European Non-Member States in general and especially for those that have the ambition to become its members. That is why harmonization of their national water law with the EU water legislation is on agenda in all those countries.

Special attention in the article is put on the cooperation of Slovenia, Croatia, B&H, and Serbia and Montenegro concerning the use and protection of the Sava River Basin. The Framework Agreement on Sava River Basin is the basis for their further cooperation concerning this natural resource. Adoption and ratification of this document is probably one of the biggest successes in cooperation in the territory of former Yugoslavia and is important not only for water use and protection in the narrow sense but wider for the whole process of regional stabilization and participation in the European integration processes, concludes the author.

 

I N T E R N A T I O N A L    P R O B L E M S, VOL. LVIII, NO. 3, 2006

 

Prof. Aleksandar FATIĆ

POLITICAL VIOLENCE AS A VALUE PROBLEM FOR SECURITY POLICY

ABSTRACT

The author argues that the moral dimensions of political violence play a crucial role in the conceptualisation of effective ways to combat such violence. It goes on to argue that the ability to empathise with the politically violent is a difficult precondition for the development of effective control strategies, and guilds its interpretation on the philosophical perspectives on the legitimacy of grievances and illegitimacy of methods used to address them by terrorists and the other perpetrators of political violence. The author draws parallels between key controversies in politically violent campaigns and conventional wars, and concludes that, despite the alarming inpalatability of political violence, the experiential record so far suggests that a de-escalation of mutual perceptions between the politically violent and the mainstream society appears to be a necessary precondition for the resolution of the underlying conflicts.

 

Prof. Zlatko ISAKOVIĆ

TERRITORY AND POPULATION AS ELEMENTS OF THE POLITICAL
POWER IN INTERNATIONAL RELATIONS

SUMMARY

The paper deals with the territory and population as elements of the political power in international relations. The first part is devoted to the basic characteristic of the territory (its size, quality, and geographical position). The quality is primarily determined by the economic values of the area. The geographic position depends on neighbours and borders. The second part of the paper deals with the population, i.e. its quantitative (the number of people) and qualitative characteristics, i.e. structure, etc.

In the concluding part of the paper it is stressed that the mutual comparison between the area and the number of the population is relatively easy to make, while it is much harder to make it when one takes into account the qualitative characteristics of both elements of the political power. The relation between the population and territory lies in the fact that people need room, i.e. space for their living. People are those who in wars and negotiations as well as by other peaceful means determine the quantities and qualities of the territories of their states. There is the open question of a price (human lives, health, living standards, etc.) worth to be paid for a territory.

People are those who generally by their ideas, work and behaviour directly influence the number of the population members and utilise space and perceive it in certain ways. People are subjective factors of the political power in general.

The first action of the modern specialised and global information-telecommunication technology lies in the changed comprehension of the categories of space and time. Communications are generally one of the important preconditions and conditions of social integration and capability for survival of people in a certain territory. The Earth became much smaller, linked and perceived by majority of its population as the universal, whole and only domicile and shelter. One could predict that communication deterritorialisation will continue to develop in this century. People will more and more become nomads, and their ideas and goods will move more and more rapidly and in greater numbers. The relationship between the population and territory will be weakened, while the state territories will be less and less important.

 

Dr. Duško DIMITRIJEVIĆ

THE NEW INTERNATONAL LEGAL ORDER AND NEW STATES IN THE BALKANS

ABSTRACT

In this study the author attaches a great importance to the theoretical examination of the concept of the New International Legal Order that was embodied in the last decades of the 20th century. The starting point for that reflection is the dissolution of the SFR Yugoslavia that illustrates one of the fundamental legal precedents. Reminding that the basic principle for the post-modern State behaviour must be the one that includes minimal disturbance of the existing international legal relations, the author stresses that “the Yugoslav case” was customised in the way to respond to the new reality where the principle of effectiveness played an essential role in valuation of the statehood. It could also be one of the greatest catalysts for all further ‘development rules’ of international law.

 

Dr. Jelena STEVOVIĆ

CRISIS OF THE DOHA CYCLE OF MULTILATERAL TRADE NEGOTIATIONS AND EU ― DEVELOPING COUNTRIES RELATIONS

SUMMARY

After the failure of the negotiations in Seattle in 1999 the European Union permanently supported the continuation of the cycle of multilateral trade negotiations and guarantees for functioning of the World Trade Organization (WTO). The new cycle of multilateral trade negotiations began in Doha in 2001. What is to be given priority in the new cycle of negotiations was at the same time both the question and the answer for developed and developing countries whose positions and opinions radically differed. Aware of the fact that there is no such thing as the "world economic administration" the European Union insists on expanding the field of the WTO regulation system emphasizing that the world regulation, reduced to the regulations of the "market approach" is not sufficient. Developing countries, though, did not support the idea of expanding the negotiations to the other field, especially not to the one concerning development that is not directly related to the trade dimension.

These "structural vagueness" the "development programme" from Doha has been built upon burst at the ministerial conference in Cancun in 2003. The clash appeared in the form of a crisis of strengthening of the multilateral system but also in the form of a crisis of confidence in WTO.

The EU request for expanding the WTO regulation system by introducing social clauses presents a hardly surviving attitude out of its "external" humanitarian aspect and therefore, it is no wonder that developing countries see the increase of protectionism in EU in the same way. Or, where is the connection between the norms for protection of the living environment and trade regulations concerning the market approach? The same is with the requests to negotiate the so-called "Singapore themes". That reminds a great deal of the Uruguayan scenario and has been evaluated as too much committing for developing countries A search for the answers to these questions complicated the negotiations in Cancun and enhanced the crisis in WTO. It is true that EU moderated the approach to the "Singapore themes" so the investment and competition regulation in WTO has been removed from the agenda, while formulation of the exemptions in trade and norms for protection of the living environment has remained unclear.

The crisis of confidence in the WTO system has also been shown by developing countries. They did not bring in the question of the suitability of their joining the globalisation process of trade at all. But, not missing to point out the automatism between liberalisation and development they stressed that the "market approach" required the ability for produce and was related to a "structurally different treatment" within WTO.

The truth is that their different treatment has so far exerted lesser and lesser influence on the rise of their international trade. Only the comprehension of the causes of the failure in Cancun could renew the development cycle from Doha. Therefore, the frame agreement concluded by WTO in Geneva in 2004 was of major importance for eliminating the atmosphere of suspicion within WTO and also for the future of multilateralism that by its principles of non-discrimination and transparency presents the most legitimate means of control of globalisation and trade between countries.

The European proposal within the Geneva agreement on the repeal of subventions for exportation of agricultural products, abandonment of three out of four "Singapore themes" and the proposal that the application of separate and different treatment "shall be the subject of the regular evaluation 'country by country'" would make the EU trade policy compatible to surviving development in the rest of the world. It remains to be seen if all that will also be confirmed at the conclusion of the Doha cycle envisaged for the end of 2006.

 

Prof. Radoje ZEČEVIĆ

EXPERIENCES OF THE OMBUDSMEN IN SWEDEN AND NORWAY

SUMMARY

The first »contemporary» ombudsman was established in Sweden in 1810 when the Swedish parliament appointed the so-called justitieombudsman that as a parliament’s body was assigned to control law implementation on the part of judges and civil servants. Since that time the ombudsman has gained new functions, gradually embracing a greater and greater number of countries. Till 1954 the ombudsman was a "regional" phenomenon since it had been established only in Sweden, Norway, Finland and Denmark. After that an increasing number of West European countries introduced, under different names, this institution into their legal systems. In the last decade the ombudsmen were established in East European countries, too. As calculated, this institution now exists in more than a hundred of countries in the world.

The author points to the fact that there is no universal model of the ombudsman. This institution is adjusted to the countries’ national legal systems, what therefore, makes differences in its status, competences and practice. In spite of these differences all the existing forms of the ombudsmen contain some common elements, similar functions and targets.

In all these countries the ombudsman is today an autonomous institution acting beyond the trichotomous scheme of division of power to legislative, executive and judicial. The fundamental task of the ombudsmen is to promote and protect human rights and freedoms and establishment of the rule of law in accordance with the general international legal standards and national laws and constitutions. Their main function is to provide the mechanisms for control, review and correction of the enactments and actions taken by state bodies, that are not in accordance with the law, that violate the norms of human rights, abuse power or act beyond their prescribed competences. On the request of citizens, legal persons, various organisations, but also on its own initiative, the ombudsman is entitled to conduct investigations, to supervise and control acting of state bodies, offer good offices, take preventive measures and give recommendations and advice on all issues within its sphere of competences. The institution of the ombudsman neither includes repressive nor order-giving authorities. It is only authorised to reveal the facts and admonish state bodies on unlawfulness of the enactments or actions they have taken. Its strength lies in its moral authority to make pressure on the authorities and state institutions to respect the law and operate in a lawful way. Setting as its objective to make the existing authorities operate within their normative competences the ombudsman has, therefore, become a guard of constitutionality and lawfulness. But, in some cases, it may also be a creator of a legal system, since by its legislative initiative it is entitled to give initiatives, opinions and put forward amendments to the proposed laws.

As the ombudsman is now an institution of international law and an integral part of the European Union system the author points out that in the process of standardisation and harmonisation of their laws with the EU legislation all EU candidate countries are obliged not only to establish the ombudsman but to adjust their ombudsman systems to the »European models«. At one time the other European states took as a model the ombudsmen in the Scandinavian countries. For that reason the author has chosen to study, present and analyse these institutions in Sweden and Norway as the countries apply them in their legal practice in the most representative way.

 

Ružica MRDAKOVIĆ CVETKOVIĆ

THE INTERNATIONAL CONTINUITY OF SERBIA AFTER SECESSION OF MONTENEGRO

SUMMARY

The author analyses a set of questions that have emerged after the secession of the Republic of Montenegro from the State Union of Serbia and Montenegro that took place after the Referendum held on 21 May 2006. She explains that in accordance with the Constitutional Charter of the State Union of Serbia and Montenegro, adopted in 2002, Serbia has succeeded the right to international legal continuity of the State Union. In order to achieve that right in June 2006 the National Assembly of the Republic of Serbia passed the Decree on obligation of the Government and other executive bodies to adopt some specific enactments and take all necessary measures so as to gain international legal subjectivity of the Republic of Serbia, as a state successor of the State Union of Serbia and Montenegro.

In practice that means that Serbia will have the right to continue membership of the former State Union in various international and regional organisations such as the United Nations and its specialised organisations and related agencies – the International Monetary Fund, the World Trade Organization, the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the European Investment Bank, and others. Serbia will separately keep on pursuing its activities in the process of stabilisation and association with the European Union and other regional integrations.

Succession between the two Republics is a much more complex process, implying a broad range of issues that should be resolved. First of all, it is a set of questions concerning the separation of commitments and repayment of credits and debts between the two Republics and guarantees for loans and credits offered to the creditors by the former Federal Republic of Yugoslavia or State Union of Serbia and Montenegro, or super guarantees granted by the two Republics themselves. Other issues include division of the State Union property, the foreign exchange reserves, archives, embassies… Division of the military property could be particularly complex. Apart from this, it would be necessary to resolve the issues concerning the private property of citizens, pensions, health care, dual citizenship, and a number of other questions. The ways they will be resolved are not yet wholly known. It will be a long and complex process within which some new issues are likely to emerge. The experience gained in succession between FRY and the former republics of SFRY might be useful. Some of the principles included in the Agreement on succession of the former republics of SFRY could be applied in the succession procedure between Serbia and Montenegro, although some problems must be settled in a specific way.

 

Dr. Vlastimir VUKOVIĆ

THE EXTERNAL LIQUIDITY AND SOLVENCY OF SERBIA

SUMMARY

The author analyses the external liquidity and solvency of Serbia in the 2002-2005 period. He explains that the external indebtedness is one of the economic problems being always current in Serbia. After consolidation of the inherited external debt in 2000, new public and private obligations have been created. The indicators of the external liquidity and solvency of the state show its short-term prospects and long-term capability for external debt servicing. The Serbian external position also depends on financial risks and the economy openness level, and shows its official credit rating.

The main problem of the Serbian external debt servicing is a high deficit in trade balance, making all indicators negative and they involve both exports and imports. In spite of such a deficit, payment of the external debt has proceeded on a regular basis and growth of foreign exchange reserves has been rapid. The indicators of external liquidity, of external solvency, of exposure the financial risks, and the economy openness degree, show that the liquidity and solvency of Serbia have significantly been determined by the external foreign exchange flows with high net inflows: foreign currency exchange, foreign loans, savings in foreign exchange, remittances, and foreign direct investment. It is characteristic that growth of these inflows is going abreast with recovery of the banking sector and penetration of foreign banks.

A comparison of the same indicators for a group of selected countries shows that the external liquidity of Serbia is more than average, while the solvency is weak; the financial stability is extremely high, but the economy openness level is not sufficient. The average range is 5.5 for the group of respectable countries, of which five are members of the European Union. A satisfactory external position is at the same time an indicator of payment potential in the next years. For the unsatisfactory ratio of external debt and exports Serbia is a highly indebted country, and it is the cause of its lowest credit rating in the analysed group of countries.

The overall evaluation of the external liquidity and solvency of Serbia is satisfactory because of the external factors that include high net foreign exchange inflows. A positive thing is that the external impact has increased in 2005. The internal factors have aggravated the external position of the country, this especially referring to a high deficit in trade balance. The effects of the increasing external stimulus and a decrease of external deficit should assure regular servicing of the guaranteed obligations till the end of the decade, concludes the author.
 

 

I N T E R N A T I O N A L    P R O B L E M S, VOL. LVIII, NO. 4, 2006

 

Dr György SIMON Jr.

ECONOMIC GROWTH IN THE EUROPEAN UNION

ABSTRACT

According to the empirical results expounded in the paper, the European Union’s economic growth since the 1960s has proceeded in many respects in conformity with regularities similar to those of the German economy. A combined influence was exerted by growth mechanism regularities, economic policy and international economic relations. Using models of mathematical economics, the author analyses the main relationships. The most important conclusion on the basis of empirical results is that the relatively slow economic growth of our days may be accelerated by a switch to a growth-oriented economic policy.

 

Dejan ORLIĆ

OPERATIONALISATION OF THE EUROPEAN UNION SECURITY POLICY

SUMMARY

The article describes and analyses the development of the European Union security policy since 2003 till the present days. During this very short period, EU has managed to set the specific goals and tasks that should serve as a basis for further development of the European Security and Defence Policy. Apart from this, the operationalisation of the security policy creates conditions for the Union to play a greater role in international foreign policy and security decision-making.

In the first part of the article the author has analysed in detail the European Security Strategy. By adopting the Strategy the European Union has established a strategic framework in the field of security defining the key threats, strategic goals and recommendations that should be adopted by the EU member countries with the aim of pursuing in an improved and more efficient way the European Security Policy. Analysing the European Security Strategy the author has particularly explored and focused his attention on several key determinants of the EU Security Policy.

By adopting the European Security Strategy the European Union has kept on achieving and fulfilling several specific goals and tasks that are more specific and which should strengthen the Union's security policy. The author has analysed these goals and tasks in the next parts of the article. In 2004, a lot of work was done in pursuing the EU security policy. A new EU Headline Goal was adopted both in the military and civilian dimensions of the European Security and Defence Policy. A new battle group concept was adopted and initiated. These groups are small military units ready to act as shortly as possible in settlement of international crises.

In this article, the author has presented all security military and civilian operations and missions of the European Union in the world, including the first one it undertook in early 2003 and its first mission in Bosnia and Herzegovina. Today, these missions range from Europe, Africa, Middle East, going as far as Eastern Asia.

Similarly to the analysis of the European Security Strategy, at the very end of the article the author has explored in detail the Constitution for Europe, and above all, the articles concerning the Common Security and Defence Policy. The Constitution should have enlarged and strengthened the functions and possibilities of the Union's security policy.

Finally, apart from recognising that a progress was made and successful development of the European Security and Defence Policy was achieved, the author warns that there are three very important deficiencies of its security policy that prevent the Union from playing a more significant role in the trans-Atlantic co-operation and redistribution of responsibilities with NATO and USA in settlement of the security problems in the world. These deficiencies are: lagging behind USA and NATO in the military and technological sphere, the issues concerning the financing and investing in the European defence, as well as the political disagreement of the Allies.

 

Ana JOVIĆ–LAZIĆ

WHERE ARE THE EASTERN BOUNDARIES OF THE EUROPEAN UNION?

SUMMARY

Considering the last enlargement of the European Union the paper presents an analysis of numerous dilemmas EU is facing today. The Union has not yet reached a consensus on the prospects of its further development and enlargement to its neighbouring countries. Undoubtedly, the process of accession of new member countries has almost been over and the policy of good neighbourly relations is becoming increasingly important as well as the co-operation based on partnership.

Since the last enlargement has considerably moved the Union's geopolitical position eastwards, the author wonders how far the Union might spread towards the East. She also argues on the significance and forms of relations the European Union should establish with its present Eastern neighbours and these are Russia, the Ukraine, Byelorussia and Moldova. The paper analyses the relations and co-operation between EU and each of the mentioned countries pointing to the open problems and prospects for their development. The author devotes special attention to the relations and co-operation between EU and Russia that, due to its international position, its overall capacities and potentials is one the Union's most significant economic and political partners. Taking into consideration their mutual long-term interests both EU and Russia are trying to build their strategic partnership as well as to overcome obstacles and bring into accord their interests on the way to attaining this goal. The author points out that the new Union's boundaries have, among other things, significant implications for the security of EU, this especially concerning the successful fight against illegal immigration, international terrorism, human trafficking and other criminal forms.

 

Aleksandra JOKSIMOVIĆ

SANCTIONS AS TOOLS IN THE US FOREIGN POLICY AFTER THE COLD WAR

SUMMARY

In the present world order USA is the strongest power of global significance. The US economic and technological superiority is a basis for its dominant political, military and information position in international relations. Such a position offers it vast opportunities to initiate and carry out various international processes as well as too large influence on the global processes in settlement of individual critical situations and points all over the globe. Therefore, a study of the way its apparatus functions, of its social system of values, interests and priorities, motives and objectives as well as methods and tools in formulating and pursuing the foreign policy of this, so far the only super power, is a basis for better anticipation not only of the steps USA will take in the field of foreign policy, but also for better understanding of the overall contemporary international relations.

The author points out that in pursuing its foreign policy USA does not hesitate to implement various methods and tools to „direct“ other factors in international relations or even force them to behave in the way that is in line with its (American) interests by application of various kinds of pressures. In searching for various opportunities to act in pursuing its foreign policy and endeavours to achieve a dominant role in the global processes USA has developed a broad range of instruments including a financial assistance as a way to be given support for its positions, intelligence activities, its public diplomacy, unilateral implementation of sanctions and even military interventions.

The paper devotes special attention to one of these instruments – sanctions, which USA implemented in the last decade of the 20th century more than ever before. The author first points out that sanctions are not a new thing in the spectrum of tools for imposing one’s will and interests in international relations. As a sort of pressure for achieving a goal, they have been applied since the ancient time, but their implementation reached its peak just in the period after the cold war.

It is generally assumed that the sanctions imposed on the part of all or most of the trade partners (through UN or some other multilateral organisation) are much more likely to achieve their goal than some unilateral restrictions or bans. At the same time the author points to the fact that it is much more difficult to reach a general consensus on condemning the behaviour of a country and therefore, multilateral sanctions are imposed much more rarely. Imposing of comprehensive multilateral sanctions is done even much more rarely. Unsuccessful attempts to harmonise the international position on condemnation of a country’s policy may, at the worst, result in giving an indirect support to the policy of the country the sanctions are potentially directed against and condemnation of the state that insists on their implementation.

The effects of the sanctions may not have a negative impact only on the factors they are directed against. They may also affect both initiators and victims of the imposed sanctions. In the process of imposing and implementation of sanctions, USA also suffers damage, and it is above all, economic one. As it is asserted, implementation of sanctions neither enhances the national security of US, what is its primary current interest. Very often it is a third party that also suffers damage, although it is by no means involved in the process itself, or participates only indirectly. There is a unanimous consensus that sanctions much more affect the innocent victims or the population than the political elite they are imposed against.

In spite of these findings, in pursuing its foreign policy objectives USA very often imposes sanctions against „unfitting“ factors; it imposes unilateral sanctions much more often than all other states in the world. In the last decade of the 20th century two third of the world population was affected by the sanctions USA imposed individually or with some other countries. It is stated that USA has imposed unilateral sanctions against more than 70 countries in the world. In the author’s opinion the objectives for imposing sanctions as tools in the US foreign policy are to expand its global influence, impose its own system of values, „to expand democracy“ according to is own standards, to demonstrate its force and power, to make change the behaviour of the country the sanctions are imposed against in accordance with the conditions set by USA.

The effects of the imposed sanctions can also be considered from the aspect of their efficiency, what includes the possibility to achieve the ultimate goal or to make change the behaviour of the country they are imposed against in accordance with the US demands. There are numerous examples showing that not only that the sanctions imposed against some regimes did not undermine them, but on the contrary, they helped them consolidate themselves. For that reason, in order to achieve „the desirable targets“ the ultimate tool is applied – military intervention.

The number of those who condemn or support the policy of sanctions against the „unfitting“ country is balanced on the American political scene, but there is an increasing number of analyses and studies that favour greater engagement on the part of US than isolation of the country whose policy is being condemned. Those opinions are supported by the arguments that such an engagement could bring much greater influence than could do isolation of that country or a military intervention against it.

 

Prof. Radovan KOVAČEVIĆ

POSSIBILITY AND LIMITATIONS OF EXPORT AS A FACTOR OF BALANCE OF PAYMENTS OF SERBIA

SUMMARY

Serbian exports growth is imposed as inevitability, regarding that it is precondition for decreasing of foreign trade deficit, as well as exports income increasing, with the aim of avoiding crisis of external liquidity. Existing structure of economy does not give the base that could cause growth of sustainable export. Therefore, the main source of new investment that could change production and export structure is inward of FDI. Investment climate in Serbia should be improved. That is possible by additional stimulating of inward FDI in sectors that could be pillar of exports in the future. As existing dynamics of exports growth could be sustained and competitiveness of domestic producers on foreign market could be improved, financial funds for export insurance should be enlarged. Besides, it is necessary to obtain more resources in Republic budget for promoting domestic economy on the foreign market, as well as for financing research and development activities in Serbian enterprises. It is necessary to have in mind that policy of real appreciation of domestic currency would not have positive impact on export growth, but it could increase import. Restrictive monetary policy is not stimulative for export growth as well, because it decreases available credit funds of commercial banks for production financing. In addition, restrictive monetary policy maintains high interest rates.

Technical barriers to trade enlarge production costs and the consequence is diminishing of export incomes. Serbian enterprises have limited possibilities for increasing competitiveness on foreign markets, which are followed by low level of applied production technologies, as well as discord with international standards, especially those in EU. Privatization gives new possibilities for introducing more qualitative management in enterprises and theirs connecting with the distributive channel within the multinational companies. Transfer of modern technologies could significantly contribute to change of production structures in Serbian enterprises and growth of exports. However, investment risk in Serbia is still on high level, so the main investors in Serbia are those who are ready to take high risk followed by high incomes. These investors have more interests for Serbian market than for growth of Serbian exports.

Inflow of new investments is still limited and modest, although they have to be driving force for growth of productions for exports. Stronger inflow of investments, change of production and export structure, stable macroeconomic environment, more favorable investment climate and stronger financial sources for financing of production and export are the main preconditions for growth of competitiveness and export of Serbia. Because of low level of competitiveness, Serbian enterprises did not use approved autonomous trade preferential for export on EU market. Making role of small and medium enterprises stronger in domestic production as well as in export can increase assortment of Serbian export supply.

 

Dr. Dragan ĐUKANOVIĆ

ELECTORAL SYSTEMS IN THE COUNTRIES CREATED IN THE TERRITORY OF THE FORMER YUGOSLAVIA

SUMMARY

In the early 1990s, after multipartism had been introduced shaping of electoral systems commenced in the countries created on the territory of the former Yugoslavia. Related to this, the author points out that creation of electoral systems in the last decade was often made in the way the ruling political parties and newly-established elites found appropriate at that moment. Apart from this, in the author’s opinion a similar process of reshaping of the framework of the electoral system was also characteristic for the countries of the former Eastern block. However, he concludes that parallel to the process of democratisation and gradual weakening of the dominant parties in the countries created after the break-up of the former Yugoslavia introduction of the so-called mixed (majority-proportional representation systems) and afterwards proportional representation patterns also took place. The primary, very bad impacts the proportional electoral systems produced on the political elites that were in power at that time was, after all, reduced by introduction of a large number of electoral constituencies and the way they were shaped, what basically put the opposition parties and coalitions at a disadvantage.

The author particularly analyses some components of the electoral systems in the states created in the territory of the former Yugoslavia. Concerning this, he concludes that the so-called closed lists dominate in all the mentioned countries, what implies that voters have no influence on the personal disposition. This means that they have no influence on whom the applicant of the list (a political party or a coalition) will appoint a member of the representative bodies in accordance with the results of the elections. With the exception of the Republic of Serbia and the Republic of Montenegro, in all states created in the territory of the former Yugoslavia there are electoral constituencies that are most often created by the rules laid down by special laws. Two methods of the so-called highest averages methods dominate in the countries created in the territory of the former Yugoslavia in establishing a number of mandates for representative bodies. These are D’Hondt and Sainte-Laguë methods that do not substantially differ from each other, being to a great extent characteristic for the contemporary European electoral systems. However, in the South Slavic states there are different levels of electoral thresholds, or a qualified suffrage for entering the parliament (form 0 per cent in Macedonia to 5 per cent in Croatia, Bosnia and Herzegovina and Serbia, respectively).

As the author concludes, the introduction of guaranteed representation of ethnic minorities in the representative bodies in all countries created in the territory of the former Yugoslavia cannot be considered appropriate until several future election cycles show that their position is improved.


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