Notes from Ditchley

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I returned a few ago from a very interesting conference at Ditchley on the Western Balkans. The discussions with policy makers and analysts did not raise any radical new ideas, but it was good opportunity to take the temperature on thinking about and from the region. It was also a lesson in bad metaphors. Many felt that carrots and sticks are not working, but theories why differed: People in the Balkans prefer meat to carrots or the carrot is actually a stick. Either way, the days of carrots and sticks seems to be over (nobody mentioned that the metaphor implies that the person in question is either a horse or a donkey).

There was broad consensus that overall things were heading in the right direction, but there were a number of warnings: many (but not all) thought that the state of democracy & rule of law and lack of deep rooted reforms in the economy will continue to be a source of difficulties in the years to come. There was a bit of a divide between a number of Western policy makers who felt that the EU and its member states were doing enough to bring the countries of the region into the EU and that it was up to political elites to make an extra effort and a number of analysts who thought the EU should do more and make the membership perspective more realistic. A specific suggestion was for the EU to begin accession talks with all countries of the region as soon as possible rather than wait for each country on their own to fulfill the specific conditions. Once talks begin–the symbolic year of 2014 was mentioned as start date–the negotiation process will force countries to shape up and carry out reforms in a manner that is unrealistic prior to the beginning of talks. It seemed clear that such a scenario is unrealistic at the moment with a many member states skeptical about enlargement and afraid (although unjustifiably so–see Turkey) that accession talks would lead to membership ‘on the sneak’. A problem that has become more pronounced in recent years is the use of individual member states to use the accession process to set additional conditions. This has made the accession process less predictable as the Commission cannot guarantee the next step in the process as individual countries might block whatever comes next for unexpected reasons that have little to do with accession. Of course, this also undermines the credibility of EU accession. The current approach of the Commission to launch dialogues with countries without accession talks has been a good way forward but without beefing up the DG Enlargement this cannot be expanded more broadly.

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The most encouraging signals came over the Serbia-Kosovo talks which are expected to lead to some tangible conclusions before the summer and when the current window of opportunity might close. On the other hand, Bosnia was much discussed, but there were few new ideas on how to help the country out of its current deadlock.

I found it encouraging that there is a clear sense that incrementalism is the way forward, there is not going to be a big bang, but rather small steps that will change the region and resolve the open questions. For this to be successful, one needs to overcome the dynamics of what one participants aptly called the EU member states pretending to enlarge and elites in the Western Balkans pretending to reform.

The Debate continues: Serbian membership of the EU or EEA?

As a follow up to my comment on Boris Begovićs suggestion that Serbia should join the EEA rather than the EU, NIN has published a series of responses. These include a clarification by Boris Begović, a comment by Boško Mijatović sand Miroslav Jovanović. The latter two I am including below.

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I am pleased that NIN is glad to see a debate gowing, so there will be further comments by Suzana Grubišić, the Minister for EU Integration and a representative of the EU delegation.

Quiet interestingly, this debate is going on in parallel with the debate of the UK-exit/referendum. Here, similar arguments have been made about the Norwegian model. Here, a comment published on Open Democracy is instructive, as it makes some similar arguments I am making for Serbia. Below is my response for NIN in a slightly longer version than the Serbian text that will be published shortly.

I am glad that my response to Boris Begović’s article has triggered a number of responses and is leading to a useful exchange. However, I regret that sometimes the tone of the responses descends to insinuations that is neither helpful not appropriate. I used the term “shortcut” for membership in the EEA, not because of some kind of Balkan stereotype, but simply because EU membership and the negotiations require profound reforms that are crucially important for Serbia. The alternative proposed by Boris Begović is to me neither realistic nor desirable.

Miroslav N. Jovanović suggests that the EU is not very attractive, with foreign debts rising, agriculture destroyed and people migrating. This is a very one-sided view. The foreign debt in new member state did not rise because of EU membership, but due to the global economic crisis. The fact that people migrated is also in part a result of EU membership and not necessary a loss for a country (he should know better, being a UN diplomat in Switzerland) : many have come back with money and new skills, as has been the case with Poles that left for the UK in 2004 and came back.

Of course, the EU and the members have many problems. However, to blame the EU for all of them is simplistic. While many EU citizens are skeptical towards the EU, and despite having undergone a deep crisis, only the Great Britain and Eurosceptic parties on the extreme left or right are playing with the idea of leaving the EU. This is telling that most EU citizens consider it better than any alternative.

Second, let me know outline why I think EEA-EFTA membership is not a likely alternative for Serbia.  Boško Mijatović is right to point out that EFTA has signed a free trade agreement with Serbia. However, this is not evidence for a possible Serbian membership. Some 33 countries around the world have also signed a Free Trade Agreement with EFTA, including Columbia, Ukraine, Mexico and Singapore, hardly plausible candidates for EFTA membership.

The 2012 EU report on relations with Norway, the most important EEA partner, notes that “EEA membership entails either EFTA or EU membership. Until now, the EFTA states have not wanted to enlarge EFTA.”  Thus, unlikely the EU which has a commitment to enlargement, EFTA has none. It is thus hard to see why EEA membership is more likely than EU membership.

In addition, the responses suggest that the EU is setting unfair political conditions that Serbia is unwilling to fulfill (the only concrete example given is Kosovo). It is not clear why the authors believe that the EU member state would not insist on these conditions to join EEA. Consider that membership in the EEA entails freedom of movement: i.e. citizens can take a job anywhere in the EEA, one can expect EU member state setting high criteria, including political demands.

Next, does EEA membership reflect Serbia national interests? Being an EEA member means that much of EU law needs to be implemented, but there is no ability to influence the content. The relationship is not that different than during the accession when future members adopt laws, but don’t sit at the negotiating table. It is no surprise that the EU noted that the “EEA Agreement is best suited to small states, which are accustomed to having to adapt to others and have no particular desire to influence developments in Europe.” I also do not consider the EU to be a ‘humanitarian organisation’, but the EU provides substantial financial support to many member state that, if well used, can have tremendous impact.

Finally, Kosovo. Boško Mijatović suggest that EU is a good trader and demands that Serbia gives up part of its territory for nothing in return. Two points :  The EU  has not demanded Serbia to recognize Kosovo. The EU has asked for the normalization of relations which does not need to entail recognition. While some individual officials from EU member states have asked for Serbia’s full recognition, this is NOT EU policy. Second, some of the polemics and other comments suggest that Serbia has to ‘give up’ Kosovo for the EU. Who is being unrealistic now? Kosovo is not under Serbian control (except 15% in the North), it is recognized by nearly 100 UN members around the world. Kosovo’s independence is a fact and will not go away. It is good advice of the EU to Serbia to come to terms with this reality. It seems a folly to foresake EU membership for the fiction of Kosovo. This brings me to the comment by Miroslav N. Jovanović.  His suggestion that the EU would ask for an independent Vojvodina or “Raška” is totally unfounded and belongs to the horror cabinet of extreme nationalist ideology and merits no further comment.  His argument that there are 1890 possibilities of a veto and thus it is hopeless to even start negotiations is unfounded. First, his math is wrong, because from July 2013, there will be 28 member states, not 27. Croatia had 1890 possible vetoes and it took 5 ½ years (October 2005 to June 2011) to conclude its negotiations. That is long (too long), but not impossible. Yes, Kosovo will make it more difficult for Serbia, but there is no reason to believe that negotiations would take substantially longer.

Europe without the Union

Below I am publishing the original text in English by Boris Begović (which he kindly provided) to which I posted a comment yesterday. I will also posted a response to my comment by Boris Begović, both of which will be published in NIN in the coming weeks and I am glad to open my blog to this debate and welcome also further contributions.

 

Boris Begović

Europe without the Union

Serbia should abandon the path to EU accession, that is has taken, for several reasons. (1) After the accession of Croatia, enlargement of the EU is postponed indefinitely, or at least for a long time. New membership should not be expected until, let’s say, 2023. (2) The question is how the EU will look like in ten years, having in mind increasing political crisis that is happening in the EU, resulted from efforts to resolve the issue of sovereign debt of its member states and structural adjustment of the Eurozone. It is most probable that, in ten years’ time, a completely different community can be expected, for example, a community of concentric circles where the outskirts would be much less integrated than the central countries. The future of British status in EU integrations will have a significant influence to the future structure of the community. (3) These two reasons indicate that EU membership at this point is a „moving target“. Serbia simply does not know what to „aim at“. (4) Our insisting on EU membership, through existing channels for accession creates extraordinary possibilities for EU member states to create political conditions for Serbia and its Government, which has little or nothing to do with the Copenhagen criteria; instead it is mostly formulated through insisting on good neighborly relations, which means, more or less, implicitly or explicitly, the acknowledgement of Kosovo independence.

Instead, Serbia should ask for membership in the European Economic Area (EEA), an institution solution based on full economic integration which is not follow by political integration. It includes four basic freedoms that currently exist in the EU: free movement of goods, services, capital and persons. Basis for EEA membership is access to a unique market, based on a customs union and other institutional solutions that enable full freedom in movement of goods, services and capital. EEA member state takes over the obligation to harmonize its regulations in the area of movement of goods, services and capital with the EU regulations, without having the possibility to influence them. Due to that, this type of arrangement in Norway, which is the largest member state of EEA (only), is called „fax democracy“. Free movement of persons is enabled through accession to the Schengen Agreement, which is not mandatory when joining EEA.

This type of arrangement would provide Serbia with full integration to the European economic area and strong competitive pressures on a unique market, which would create incentives for economic efficiency of companies and institutional certainty regarding free movement of goods essential for export oriented business ventures, which are necessary for Serbian economic growth. In such circumstances, where no one is privileged, business circles would have incentives to strongly influence domestic Government to implement institutional reforms in order to improve business environment in the country thus increasing competitiveness of domestic economy. That kind of influence would be strong and sustainable – which is better than conditions coming from Brussels, that are directed towards the resolution of their own problems, such as the project „Independent Kosovo“, and not ours, such as bad business environment.

Through this type of arrangement, in comparison to full membership (under present conditions), Serbia would lose: (1) donations from the EU Budget and (2) the possibility to influence politics that is being created in Brussels which needs to be applied in Serbia. The first loss is not so big. New EU member states currently get though (net) transfers around 1.1% and 1.8% of their GDP (except in the Baltic States). This is very, very small amount. And it is not even certain that this will exist in the new budget. The second loss practically does not exist. The existence of any possibility for Serbia to influence politics in Brussels is close to zero. The number of people that would represent Serbia in Brussels is not to be confused with their negligible influence, which would not depend on them personally. However, if somewhere in the future it is estimated that this level of integration is not sufficient and full integration is needed, the accomplished economic integration will not represent an obstacle – on the contrary.

In the area of diplomacy, through this proposal Serbia would start having active relationship with its European partners, and not just fulfill their ideas. I believe that some stakeholders in Europe would not like it, but they could do no other thing than to respect this shift.

It just needs to happen!

 

This text was published in NIN, December 13, 2012


The President of Center for Liberal-Democratic Studies and Professor at the Faculty of Law, University of Belgrade

No shortcuts to Europe

Here is a small letter I recently sent to NIN, regarding a comment in December, but I am not sure it will be published. It comments an idea Boris Begovic launched namely that Serbia should no join the EU, but instead join the European Economic Area. The original article is behind the NIN paywall, but this idea is also discussed in B92, Vecernjie Novosti and elsewhere.

Cartoon from Novosti, 29.12.2012

In his comment “U Evropu bez unije” on 13 December 2012 Boris Begović makes a tempting suggestion: Serbia should abandon the difficult accession process to the EU with its supposedly changing criteria for membership and instead join the European Economic Area (EEA), Europe’s large zone of economic integration that includes all EU members, Norway, Island, and Liechtenstein.

His idea might sound tempting, but is nothing but an illusion.

It is true that the EEA creates freedom of movement, free trade, free movement of capital and services among its members and thus offer a key component of EU integration to non-members. The idea that Serbia could join this agreement without EU membership is, however, rather absurd.

Countries cannot join the European Economic Area directly. The economic area was established in 1994 between the EU and the European Free Trade Agreement (EFTA) and most their members. There is no possibility foreseen for a country to join that is not either a member of the EU or EFTA. So let’s consider the only option Serbia would have to enter the EEA without joining the EU.

First, it would have to join EFTA. EFTA has only four members, Switzerland, Norway, Iceland and Liechtenstein. Of the four members, only three are part of the EEA, Switzerland rejected membership in 1992 in a referendum. Serbia would be an odd partner for some of the richest countries in Europe. Furthermore, no country has joined EFTA since 1991 when Liechtenstein joined. The previous accession was that of Iceland in 1970, all others were founding members in 1960s. Countries left EFTA rather than joined it in recent decades to become EU members (UK, Denmark, Sweden, Austria and Portugal were original members). Thus, EFTA is composed of a rather odd and small number of countries. Since no country has joined for such a long period there is no clear accession process, but membership would require agreement among all four member states. At the moment, there is little reason why Switzerland, Norway, Iceland or Liechtenstein would be interested in free trade with Serbia. Now for the second obstacle: A country joining EFTA is not automatically member of the EEA.  The EEA agreement states clearly in Art. 128 that “… any European State becoming a member of EFTA may, apply to become a party to this Agreement. .. The terms and conditions for such participation shall be the subject of an agreement between the Contracting Parties and the applicant state. That agreement shall be submitted for ratification or approval by all Contracting Parties in accordance with their own procedures. “

What this means is that a member of EFTA can apply to join the EEA, but there has to be an agreement between that country and the European Union and all its members and needs to be ratified by all of them.

If Serbia abandons EU accession and then would join EFTA in the unlikely case that Switzerland, Liechtenstein, Norway and Iceland find Serbia an attractive partner, the EU and its members would have to agree to join the EEA. It does not take a lot of imagination to see that the EU and its members are not going to eager to see Serbia access key EU benefits (such as freedom of movement of workers) by skipping the accession process and the conditions. The only scenario under which it would be imaginable for the EU to accept Serbia as a member would be if it had abandoned offering a membership perspective for the Western Balkans and saw this as a viable alternative. Still, Serbia would not be accepted without fulfilling numerous conditions, in particular in terms of adhering to the acquis communitaire, the EU legislation, that is relevant for the free movement of goods, people, services and capital before the EU and its members would be willing to accept Serbia. In brief, if Serbia decides not to opt for full EU membership and go for the EEA, it will still end up negotiating with the EU.

I am not going to comment in any detail the suggestion that an independent Kosovo is a problem of the EU, as if it had nothing to do with Serbia or the argument that the conditions of EU membership keep changing, or the suggestion that the financial contributions of the EU are “very, very small”. Croatia for example has 687.5 Million Euros set aside for the second half of 2013 alone, which is around 1.45% of the GDP of Croatia or some 4.2% of the Croatian state budget planned for 2013, hardly negligible amounts.

It is true that enthusiasm for enlargement among its member state is decreasing and that individuals members might make sometimes unreasonable demands. However, this is largely linked to the current economic crisis inside the EU. By the time Serbia is close to joining, it is realistic to expect that crisis to have passed and member state taking a more positive view towards enlargement. If Serbia pursues EU membership, it will be have an easier time to join then. Of course, Serbia can decide not to join, but it is a dangerous illusion to believe that the EEA is a viable alternative or easy way to get some of the benefits of free trade and movement without joining the EU.

A European Journey from Zagreb to Graz

In Graz, everybody discussing Southeastern Europe, including myself, is eager to point out that Zagreb is closer than Vienna. Of course, this might be true in terms of kilometers, but not necessarily if measured by hours travelling. If you take a car, the journey for the less than 200 kilometers is a quick two hours, but if public transport is your choice (or not) things look different.  If one wants to travel directly between the two cities, there is a bus at 6 am, a train at 7.30 and finally one more bus at 23.00. These take a breathtaking four hours to Graz (average speed 50 kilometers per hour)

Those not lucky to catch these trains or buses will have to take a slightly longer journey, as I did today.

The not-too-friendly at the ticket counter give me a flyer with my connection predicting an sobering 7 hour journey. I got on the intercity “Sava” from Belgrade to Munich. I remember the cars of the Yugoslav railways, when I took them for the first time 20 years ago, back than surprisingly how new they were. How could the Yugoslav railways (the Yugoslavia which was just Serbia and Montenegro) have new cars, when everything around it was collapsing, under sanctions. Now, the cars looks appropriately worn. The Yugosphere is alive and well with exchange of crude graffiti between supporters of Delije and Ustasha in the toilets, where they belong.

At the border, the Slovenian carina official kept shouting at a hapless Bulgarian “nešto za prijaviti” and the other passengers gladly repeated after the customs official in both Serbian and Croatian prijaviti, prijaviti. The customs official got increasingly aggressive amidst his disbelief that this word could not be the same in all world languages (or at least all of the ones spoken in the Balkans). After all this, is a Schengen border, the EU begins here and displaying good old habits marking ones national sovereignty with rudeness are now Europeanised.

A friendly Serbian waiter came shouting through the car “restaurant arbeiten—restauran radi”, but not enough time before Zidani Most, a little hamlet in a valley between Celje and Ljubljana. When I first changed trains here two decades ago, I thought I had arrived in the wild gorges of the Balkans, but it is only a charming train stop at the end of the Alps. A place nicer when driving through than when stopping. Mentally preparing for an hour stay here, a train rolls into the station that my Croatian timetable kept from me. Stopping in every village to Maribor, I might even arrive earlier in Graz. Maribor is only an hour and a half away from the stony bridge and Boris Kidrič continues to welcome new arrivals.

An elderly lady sells a little knitted Slovenia map, another one offers a  little kitchy cityscape drawn (or rather burnt) on wood and as additional incentive to make the purchase, engraved on top “Maribor European Capital of Culture 2012”. A few colorful cubes mark the main squares and a two car rail bus slowly moves towards the border, Spielfeld-Strass. In order to honor Maribor become cultural capital, the train connection between Graz and Maribor, some 50 kilometers apart has been cut down to two direct trains a day (despite “EuroregionMaribor-Graz and nice headlines such as Graz and Maribor are getting closer together in the local newspaper).

At the border, the two trains approached each other like for a cold war prisoner exchange. The Slovenian train and the Austrian train meet head to head, spit out their passengers and took the ones from the other side. Nobody was left behind. So when the local train (called Wiesel or in English Weasel) pulled into Graz, it took only five and a half hours instead of the feared seven.

Thus, one year before Croatia joins the European Union, getting from Zagreb to the European capital of culture 2012 and on to Graz is a journey at an average speed of less than 50 kilometers per hour, taking not much more time than the journey did over 100 years ago. My Baedeker Austria-Hungary from 1905 tells me that it take two hours from Agram to Steinbrück (Zidani Most to Zagreb today, one and half hours ) and around three and a half hours from Steinbrück to Gratz (today anywhere between two and a half and three hours).

After the five and a half hours, four trains, three changes, and two cultural capitals, Croatia’s EU integration felt like a virtual world, far removed from the stuffy, torn up trains that make this a journey at the borders, not the centre of Europe as it should be.

Serbia’s candidate status delay: Romania, the Vlachs of Serbia and the EU

After everybody expected a smooth confirmation of Serbia’s EU candidate status today, following the agreement between Belgrade and Prishtina last week and the support for status by Germany that had earlier blocked Serbia’s bid, the decision seems to have hit an unexpdected snag. Romania has blocked a final decision over the treatment of the Vlach minority in Serbia. This blockage is both surprising and worrying, even if it ended after just a few hours:

Romania had not indicated earlier any intention to block the EU candidate status for Serbia. It appears to have been a surprise by many observers . Such last minute efforts to push ones own agenda on such an important issue is clearly worse than a little sneaky. It undermines the already weak credibility in the region and leave the impression that accession countries can fulfill conditions, but member states will come up with their own ecclectic agenda. As a result, legitimate conditions are tainted by such requests. There is a further problem with Romania’s blockage: While the status of Vlachs leaves much to be desired, the treatment of the community certainly does not merit such an intervention. The most recent report of the Advistory Committee for the Framework Convention notes a number of problems, but nothing either that substantial or specific for the community that would merit such a drastic kin state intervention (if Romania is a kin state at all, a role not accepted by all Vlachs in Serbia).

Delaying Serbia’s candidate status is also likely to doubly hurt the Vlach, Romanian and other minorities in Serbia. The use of the kin state to block (even if it will turn out for a few hours) progress towards the EU over minority rights is only going to have a negative impact on minority rights. Of course, the EU accession process is a key tool to improve minority rights, but not like this: Giving Serbia candidate status and beginning negotiations is much more likely to improve the status of minorities than letting Serbia wait. As with other aspects of the accession process, the actual negotiations are the most effective tool to secure change rather than punishing a country. As a result, the Vlack minority will be more likely to benefit from the candidate status for Serbia as soon as possible rather than from Romania’s intervention at this point. Of course, once negotiations start, the minority rights agenda will be driven by the Commission, not by member states. This means that kin states like Romania now might be less interested in genuine minority rights and rather in flexing their smallish muscle and present themselves as the protector of national interests. Considering the large number of cross border minorities and kin states in the region, the Romanian delaying tactic is a worrying signal for the EU enlargement process and unfortunately unlikely to do much good for minority rights.

 

 

The surprising-unsurprising “Yes” for the EU in Croatia

The referendum on EU accession of Croatia gave a resounding “Yes” in favor of joining the EU. According to the final results, 66.27% of citizens who turned out voted in favor. The No vote got only  a third of the vote. Striking is that every county of Croatia voted in favor of joining the EU, even the most Eurosceptic region of Dubrovnik-Neretva stilled voted 56.93% in favor. The regional variation is thus not very great and there is no clear regional pattern except for the two southern regions of Split and Dubrovnik being more skeptical. Support was great in towns close to the EU, such as Varazdin and Cakovec, but also in poorer towns and regions like Slavonski Brod or Gospic. This suggests that the reasons for support were multiple. Opponents of the EU did not do well, even in strong-holds of more nationalist parties, such as in Slavonia where the HDSSB did well in parliamentary elections. Ironically, it would seem that the Euroskeptics did best on the Dalmatian islands of Brac and Hvar. For example in the two municipalities of Jelsa and Stari Grad on the Island of Hvar, support for EU accession was just above 50% (51.16% and 51.79% respectively). This would also suggest that rejection of the EU is less based on the nationalist arguments heard in the referendum campaign, but possibly on the sense of some tourist destinations that membership will not bring an tangible benefits. The few Bosnian Croats that voted (just over 6000, or 2.3% of eligible voters) endorsed EU membership with 87.85%.

The turn out in the diaspora was low, but so was it in Croatia itself. This somewhat puts a dent into the referendum results. Only 43.68% of eligible citizens voted. The low turn out is not unique to Croatia: elsewhere similar referenda often had an equally low turn out. Now it could be argued that the result is no surprise. No significant parliamentary party campaign against joining and even Ante Gotovina in custody at the ICTY endorsed the vote, undermining nationalist argument against accession. So no surprise? Well, there might not have been no surprise now, but only a year ago, Euroskepticism was high. Protests last year in Zagreb burnt the EU flag, even if protestors agreed on little else. For years prior, Croatia had become by far the most Euroskeptic country in the region. In 2009, according to the Gallup Balkan Monitor, only 26.2% of Croats thought the EU was a good thing, nearly half of the runner-up Serbia, in 2010 the number dropped to 24.8%. So were the numbers wrong? The referendum suggests two things about support for EU accession in the Western Balkans: First, citizens might be growing weary of the EU as negotiations drag on, once they are concluded, it is easier to warm up to the EU. Second, many citizens might not “love” the EU, but they consider it the least bad option. Thus among many “Yes” voters in Croatia today are surely also those who rather not take any chances, especially as the alternative remained unclear and potentially risky. Thus, even if support for accession is likely drop in the other countries of the region–as it so often dues in the accession process–this does not suggest that citizens will vote against membership at the end.

Croatia’s EU prospects and voices from the past

The conclusion of negotiations between Croatia and the European Commission is great news for the region. After nearly six years of talk, this crucial period of EU accession for Croatia has been completed. There is little doubt that Croatia will manage to join within around two years due to the cumbersome ratification process (note for any politician in the region: if it takes 8 years for Croatia between beginning talks and membership, it’s unlikely to be faster anywhere else.

Now the question is how to “sell” accession to the current member states. Here, the Frankfurter Allgemeine Zeitung in a commentary today [paywall] clearly heads into the wrong direction. The author writes “In some [European] capitals, the candidate Croatia is considered a Balkan country and a corner stone of Tito’s Yugoslavia.” He goes on to note that the “former Hungarian crown land is as central European as Slovenia and resisted Belgrade’s Serb hegemony.” While the comment notes that the difference between Catholic, Orthodox and Muslim sozialisation (whatever that means) is not a source of conflict in the EU, they are not irrelevant when it comes to national specificities (Eigenheiten). Implicitly, the comment suggests that Croatia completes the European Union rather than opening the door to the inclusion of the rest of the “Western Balkans”: Every inclusion is also an exclusion of those who are not joining at the same time. To argue that Croatia is joining due to its Catholic and central European nature is not only doing the EU a disservice which is more than a club of Central and West European countries, but it also challenges the process of enlargement over the past decade and serves cheap and rather dated Balkan stereotypes (recently revived thanks to the Greek crisis). Finally, it also throws an ugly light on the way on way the FAZ has been commenting on the dissolution of Yugoslavia exactly twenty years ago with offensive commentaries by Johann Georg Reissmüller which lacked any critical distance towards the Tudjman regime and in its blatant Balkan stereotyping.

 

Negotiating Division and Cooperation in today’s Bosnia

As Bosnia is recovering from the latest crisis, once more the largest one since Dayton, it is useful to reflect on the underlying challenges Bosnia is facing today. When late Richard Holbrooke brokered the Dayton Peace Accords in late 1995, most attention was devoted to drawing the new internal boundaries of Bosnia and Herzegovina (henceforth Bosnia) to arrive at the “magical formula” which implemented the previously agreed division of the country into 49 percent under control of the Serb Republic (RS) and 51 percent under control of the Federation of Bosnia and Herzegovina (FBiH), the predominantly Bosniak and Croat entity. Thus emerged an over 1000 km long border know euphemistically as the inter-entity boundary line (IEBL). On the other hand, the constitution and new institutions of the country received only scant attention during the negotiations. It is thus not without irony that it is those institutions which have been at the core of the profound political crisis which Bosnia has been slipping into over the past five years, while the borders have remained relatively uncontested.

Does this mean that too much attention has been placed to borders and too little to institutions? While certainly the institutions established at Dayton were often flawed, the border drawing was controversial and remains potentially a source of contestation. The boundary between the two entities largely followed the ceasefire line and only contained two major adjustments: One in western Bosnia to accommodate the 49/51 formula by placing thinly populated regions under control of the RS and granting the Federation full control over parts of Sarajevo previously under Bosnian Serb rule—a territorial transfer which came about with last chapter of ethnic cleansing with most Serbs leaving the neighborhoods under pressure from the RS leadership in March 1996.

The border between the entities has become largely invisible over the past 15 years: In the first years, many feared crossing the border and police check points in the vicinity of the border constituted efforts by the entities to prevent people from moving freely within Bosnia. Even if the police were absent, this invisible line became visible by stalls selling cheap cigarettes from the other entity and taxi drivers waiting for customers from the other side as few were willing to cross this line with the wrong license plates. With a common currency and a unified license plate, and a decline in the profitability of the cross-entity cigarette trade, the most visible reminders today are the large signs reading “Welcome to the Republic of Srpska”.

With few exceptions, the IEBL has also become the ethnic dividing line in Bosnia. Prior to the war, most municipalities were multinational, with a significant share of the population hailing not just the largest, but also from other groups. The ethnic cleansing during the war largely destroyed this diversity and territorialized ethnic belonging. The internationally administered return process was possibly the largest experiment to undo the consequences of ethnic cleansing. Refugees and internally displaced did not only have an unconditional right to return (unlike what seems currently likely in either Cyprus or Palestine/Israel), but were also assisted if they did want to go back home.  Even if (on paper) half of the two million IDPs and refugees returned (the return process has slowed to a trickle since 2003), the returnees often did not stay or became a new minority, marginalized when it comes to jobs, education and services. Only three municipalities bucked the trend and ‘changed hands’ since the end of the war. Grahovo, Drvar, Glamoč in Western Bosnia today have Serb majorities, as they did before the war, although they lie in a Federation canton named after the Croat secessionist project ‘Herceg Bosna.’ The main reason that these municipalities saw such massive returns after the war was due to the overwhelming Serb population majority they had before the war and the fact that Serbs were expelled from the region only towards the end of the war in 1995. These three towns are thus the exceptions which prove the rule that ethnic cleansing has largely worked.

The internal borders of Bosnia are today less physical markers, but continue firmly separate political power and cementing ethnic divisions. A second category of borders in Bosnia are the external borders with its three neighbors Croatia, Serbia and Montenegro. Here a two-level border regime emerged. The physical border became more substantial since 1995 as Bosnia’s border regime evolved and it is likely to increase in significance as Croatia’s EU accession will lead, if not immediately, to a Schengen border between the two countries. On the hand, there is an ethnic border regime: The overwhelming number of Croats in Bosnia hold Croatian passports and a growing, but unknown number of Serbs in the RS have been acquiring Serbian passports. According to the Gallup Balkan Monitor in 2009 and 2010, 15.4 and 7.5% respectively of surveyed inhabitants hold a Serbian passport, n the Federation, 15.2% and 33.8% respectively hold the Croat citizenship.

This trend was certainly encouraged by the one year gap between the EU decision to liberalize the visa regime for Serbian (2009) and Bosnian citizens (2010). Beyond formal dual citizenship, other informal privileges granted to Croats or inhabitants of the RS create a virtual ethnic trans-border community. There are two ways of looking at this reality. Often, the ethnic ties are seen as a negative hold-over from the war years and help to undermine the already weak Bosnian state cohesion. These networks produce and reproduce loyalties and identities which can challenge the Bosnian state. This is exemplified by statements from the current president of the RS, Milorad Dodik, in which he stated that “case that tomorrow Bosnia and Serbia would play, I would cheer for Serbia.” Accordingly, only 15.8% of inhabitants in the RS support the Bosnian football team, while 75.8% in the Federation do. Forging closer ties to Serbia and fostering informal cross-border ties also reduced the identification with Bosnia. A consequence is the large support (over 80%) among Serbs in the RS support the independence of their entity over the continued existence of Bosnia.

Alternatively, one could also interpret these ties as having a moderating effect. In 2009, Tim Judah, the Balkan correspondent of The Economist coined the term Yugosphere. This Yugosphere describes the network of ties with the countries of former Yugoslavia in business and culture which have emerged since the end of the wars. They do not express a desire to re-constitute a political unit called Yugoslavia, but rather describe an alternative within the framework of existing states. Now, in addition to the Yugosphere, there are also a ‘Croatosphere’, and a ‘Serbosphere’. These are cross-border networks based on affinity along national lines. These ties are fostered by the above mentioned examples of state policies, including citizenship regimes, and create a sense of community. If the Yugosphere does not necessarily present a challenge to the existing states, it could be argued that the national spheres similarly provide for another layer of identity, but do not have to undermine multi-national states per se. It could be argued that these linkages provide for multiple centres and networks, which might reduce the degree of contestation over only one, namely the state.

The challenge for Bosnia arising from the ‘Croatopshere’ and the ‘Serbosphere’ is that these often enjoy more legitimacy and have been able to provide greater benefits to Bosnian citizens which partake in these alternative spheres, including freedom to travel and jobs, than the state. Moreover, these spheres are exclusive and the largest Bosnian community, Bosniaks, lack such a comparable dimension. Most importantly, unlike the Yugosphere, the national spheres often (but not necessarily) challenge the legitimacy of the state and thus constitute an alternative rather than an additional layer to identity among Bosnians.

Both transnational and subnational structures and networks have been unable to overcome or to short-circuit the cumbersome decision-making processes within Bosnia. While there is widespread agreement that institutions in Bosnia which require consent across national lines have struggled to take decisions for years. The frequency of blockages increased since 2006 when Milorad Dodik came to power in the Republika Srpska for a second time and pursued a confrontational line towards the international actors and Bosniak parties. The fact that neither the state nor the Federation have had a government for more than four months after the elections in October 2010 is indicative of the tense political environment. The reason for the political blockages can be easily attributed to, depending on the perspective, the President of the RS, Milorad Dodik, or Bosniak politicians insisting on a further centralization of the state. The modest legislative record of the Bosnian parliament in recent years and the slow government formation cannot, however, are not caused only by a particular politician, or a particular elite.

Instead, it might be tempting to shift all the blame to the power-sharing arrangement established at Dayton. With its emphasis on ethnicity and strong linkage between ethnicity and territory, it seems to a recipe for confrontational ethnopolitics. Nevertheless, it is equally misleading to consider the entire political system as source of the current crisis in Bosnian politics.

While it is true , that just as there are populist politicians which thrive on the current impasse, there are institutions with multiple veto points and excessive emphasis on ethnic representation, colloquially known in Bosnia as “counting blood cells”, i.e. predetermining peoples professional opportunities based on their ethnic belonging. In order to find out why Bosnia is struggling, we need to explore other causes.

As survey for UNDP in 2007 found Bosnia to be at the bottom of international leagues when it comes to social trust. Only 7.8% of surveyed citizens indicate that they trust others, considerably lower than other countries, including in South Eastern Europe. This low level of trust transfers into low levels of trust in institutions and low level of interest in politics, again significantly less than in any country in the region. What is striking about the findings is that Bosnia is less characterized by low levels of trust between ethnic groups, or by particular groups towards some institutions—by Serbs towards the state for example—but by a generally low level of trust, not ethnically neutral, but preferences along ethnic lines are overshadowed by the general breakdown in trust.

Considering this backdrop, it is not surprising that Bosnia has essentially become a “low trust state”. The institutions are predicated on the low trust along ethnic lines: Veto rights and blocking mechanisms are the embodiment of low levels of trust in political opponents (sometimes justified). International supervision since Dayton has often interfered into political decisions due to low trust in local political elites (often for good reason). The political discourse of elites has been based on the rhetoric of low trust: A key theme of Milorad Dodik’s party SNSD over recent years has been the need to preserve the RS against threats from Bosniak parties and international pressure. The supposed threat and low trust in both parties from other ethnic groups and international actors were the core message. Similarly, Dodik recently rejected the introduction of a new article in the Bosnian constitution, known as the “Europe clause” which would allow for laws essential to EU integration to pass with fewer veto rights. Similarly, Croat parties have emphasized the need for a third entity to protect Croat interests from being marginalized. Finally, predominantly Bosniak parties emphasize their distrust toward the RS and the intentions of the non-Bosniak parties towards the state. While most citizens’ distrust is not primarily ethnic, the distrust of parties has clear ethnic overtones. If the goal of parties with a mono-ethnic electorate is to generate loyalty within the ethnic group at the expense of interethnic relations, the parties in Bosnia have failed. If, however, the ethnic distrust is both a way to channel broader frustration and a mechanism to re-produce distrust, it has worked. The effect of distrust is disengagement from politics and helps to sustain parties that re-affirm low trust politics and, while not being particularly trusted themselves, direct high levels of distrust elsewhere.

The Bosnian system of government is thus characterized by the tension between the different types of distrust: the distrust by citizens, as captured by surveys, is based on the perception of corruption and abuse of office, as well as by the inability of the state (and sub-state units) to deliver services citizens expect, such as health care, social protection and employment. The low levels of trust along ethnic lines, as promoted by most political parties, on the other hand reinforces ineffective institutions and legitimizes the (ab)use of office to further a particular mono-ethnic agenda, often in conjunction with party and individual interests. The two different sources of low trust in Bosnia thus are seemingly disconnected, yet mutually reinforcing. This has made institutional change and the emergence of new elites more difficult in Bosnia than in neighboring countries. Although low levels of trust are not a given, they are part of the DNA of Dayton Bosnia.

What does this experience tell us about post-conflict institutions and international intervention?

First, if the institutions have as many veto points as in Bosnia (a law proposed by government can be blocked in at least four different ways by both entities and “constituent people” before being passed), the risks of blockages increases and the state fails to deliver, further undermining the legitimacy of the state.

Second, if the state lacks incentives for cooperation and instead constantly has to compete with national ‘spheres’ or sub-state units which can govern in the absence of multiethnic decision making, the prospects for elites finding an interest in making institutions work decreases.

Third, without islands of ‘success’, where the state can generate trust and legitimacy, the underperformance of the state only helps to legitimize alternative state projects.

Fourth, while political contestation might often have ethnic overtones, social concerns are shaped by fear, distrust and low levels of social cohesion, with limited ethnic dimensions. In brief, the causes for ethnic politics might not be found in ethnicity, but in other dimensions of alienation and exclusion.

See you at the next crisis!

Once more “the most serious crisis of Bosnia since the signing of the Dayton Agreement” seems to have been averted thanks to the mediation of Catherine Ashton and EU threats against the RS. However, as Tim Judah reminds us, this is just the latest installment of the worst crisis since the end of the war. There is little reason to believe that the next “most serious crisis since the end of the war” is not far off. Dodik put himself in a win-win-win situation with the referendum: If it would have taken place, it would have given him popular-populist legitimacy to challenge any OHR decision (see the question: Do you support the laws imposed by the High Representative of the International Community in BiH, especially those pertaining to the Court of BiH and BiH Prosecutor’s Office, as well as their unconstitutional verification in the BiH Parliamentary Assembly?), including any state-building done over the past decade, from the flag to currency and numerous state institutions. If the OHR had banned the referendum, it would have polarized public opinion further, likely to his benefit. So what is the current “win” for Dodik for backing down? He manages to avoid sanctions and can even get some public displays of support (“We welcome your leadership, Mister President,” Ashton said) and gets internationals willing to negotiate with him. The EU offered a “structured dialogue” in exchange for shelving, not dropping the referendum.

I concur with Dan Serwer that this seems like a bad idea. The EU needs to have talks and take the lead in BiH, but not (only) with Banja Luka and certainly not on Dodik’s terms on the judiciary. Instead, solutions are needed on the implementation of the ECHR ruling in the Finci-Sejdic case and ensuring progress in regard to EU integration, as well as forming a govenrment. Once more, the EU is caught on the back foot, reacted rather than clearly acting in BiH. Dodik will continue to hold the threat of a referendum over such talks and with a largely hapless EU on the ground he is likely to gain from the talks.

The negotiations between Ashton and Dodik have shown that the RS parliament is a rubber stamp in the whole process and Dodik’s word is all that matters. Taken together with the structured dialogue, this is just the latest example of how international intervention continues to reaffirm the extra-institutional practices in BiH.

There will be a temptation among international actors now to relax and hope BiH will go away for a while to deal with other issues. However, if there is no follow up to address the core problems, the next, most serious crisis since the end of the war, is just around the corner.

Oh yes, and there is also that crisis in the Federation over the legitimacy of the government and there is no state level government.

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