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Will foreign investment bring peace to the Balkans?


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By John Metzler
SPECIAL TO WORLD TRIBUNE.COM

May 10, 2000

NEW YORK -- A mere mention of the terms The Balkans or Greco/Turkish relations raises stereotypes, bloodpressure, and geostrategic nightmare scenarios. History has left its mark. Sir Winston Churchill once described the region as Europe's soft underbelly. That's why it is all the more significant that the Greek and Turkish Foreign Ministers shared the same podium to receive a joint award for their extraordinary efforts at political reconciliation between their countries.

The prestigious EastWest Institute honored both Greek Foreign Minister George Papandreou and Turkish Foreign Minster Ismail Cem "Statesman of the Year" Award for promoting harmony and reconciliation. Beyond their personal efforts to defuse the long-simmering Greek/Turkish relationship, both Papandreou and Cem likewise have played a singular role in promoting peace and investment initiatives throughout the Balkans, especially in Bulgaria, Macedonia and of course in Greece and Turkey itself.

Turkish Foreign Minster Cem asserted realistically "I do not speak of great accomplishments but rather of positive initiatives ... .recent political developments between Greece and Turkey seem to be contributing strongly to the creation of a more secure investment climate. Having moved politically from confrontation to cooperation, they now provide for themselves and for the Balkans increased economic opportunities."

Despite what would be politely described as the Greco/Turkish dispute, both nations are members of NATO -- in other words allies, although one could often miss that point until recently. Just a few years ago, Ankara and Athens were literally looking over gunsights in disputed Aegean islands. Last year feathers flew between Ankara and Athens when the Turks captured the Kurdish terrorist Abdullah Ocelan, leader of the Marxist -- Leninist PKK movement, who sadly had received some assistance from the home of democracy. Both Ankara and Athens had diametrically different views of the Kosovo conflict and NATO's "salvation" of the Albanians from the Serbs. Then there's Cyprus ...

Despite the classic political acrimony, last year's devastating Turkish earthquake, brought a human dimension to the standoff between two neighbors. Greeks and Turks worked together to extract fellow human beings from the rubble; ironically later during a Greek earthquake, Turkish rescue teams helped too. The point is that the earthquake rocked stereotypes and riveted political misperceptions.

Regarding the volatile Balkans, Minister Cem stressed, "Contrary to some misperceptions, the Balkans historically had been a peaceful and relatively well off region of Europe. The multiethnic, multicultural and multilingual characteristics of the Balkans was preserved and respected under the great empires as the Hapsburgs (Austria) and Ottomans (Turkey) ...with the advent of 19th century nationalism, the chemistry of the region changed." Nitroglycerin comes to mind.

Investment is one key to stability and success. As Greek Foreign Minister Papandreou advised, "Greek/Turkish rapprochement remains the keystone in the region." Yet, despite major foreign investment initiatives, he added that the countries need "normal markets not black markets."

Addressing an EastWest Institute roundtable on "Investment Opportunities in Southeastern Europe" Charles Redman of Bechtel while speaking of the positive aspects of development, stressed that a "sound rule of law, and regulatory environment and a sanctity of contracts" were cornerstones for commerce. He conceded that development really "does not have lack of funds but lack of focus." Very true.

Secretary of State Madeleine Albright brought the usual global "happy talk" about Balkan political reconciliation but added more soberly that "corruption kills investment dead." She also spoke of the importance the private sector plays in such investment conceding that "no country can thrive on government assistance alone."

American, Turkish and Greek private investment in the Balkans has emerged as a stabilizing force. Yet, whether investments follow stability or create it remains debatable.

As Minister Cem added, "We should not view economic investment as a separate ingredient to be activated once a secure investment climate is assumed. Instead we should consider investment as the main factor to bring about a secure climate." Cem implored, "In other words we should not wait for a climate of security to be fully realized in order to invest, we should invest, knowing that this is the most effective way to bring about that secure environment."

John J. Metzler is a U.N. correspondent covering diplomatic and defense issues. He writes weekly for World Tribune.com.

May 10, 2000


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