New Time Table Set for Development of Next Corridor VIII LED Network Conference 

Association members and staff have begun development of the organization's next regional conference. Although specific dates are yet to be established, the conference will be held in the Spring of 2009 in Macedonia.  An organizing committee meeting is planned to be held in September/October in Elbasan, Albania to further develop themes and activities for the event. Particular priority is being placed on energy and environmental concerns that have been voiced by association members, and how these issues having impacted regional economic development. Members and other interested parties are invited to submit suggestions and comments to Gafur Luga, Executive Director, at gluga@albmail.com

Deepening Integration with EU and across Western Balkans will Boost Economic Growth and Facilitate EU Accession
(from World Bank press release 6/10/08)

 The World Bank today called for governments in the Western Balkans region to deepen integration with the European Union (EU) and among themselves, further develop human capital, reduce telecommunication costs, and tackle issues related to energy shortages in order to sustain economic growth.  

According to the new World Bank report, Western Balkans Integration and the EU: an Agenda for Trade and Growth, the Western Balkans region is a key part of Eastern Europe, and comprises a group of diverse countries at different stages of accession to the EU. Croatia and fYR Macedonia are candidate countries for EU accession, with Croatia already in accession negotiations. Albania, Montenegro, and Serbia have signed Stabilization and Association Agreements (SAAs), an important step in the accession process. Bosnia and Herzegovina has initialed a draft SAA with the European Commission and is scheduled to sign it in mid-June. 

The last decade, especially the last five years, was relatively good for these countries, according to the study.  However, they now need to improve and then sustain growth performance to accelerate poverty reduction and convergence with the EU, even as the external environment becomes more challenging.  The report analyzes possible binding constraints if growth were to accelerate and be led by the private sector to a much greater extent than is currently the case in the region. 

Given the small size of Western Balkan countries, the report emphasizes the critical importance of exports for growth, and in turn, the importance of foreign direct investment for exports, and suggests some priorities for action along these lines. The report:

• Points to the need for deeper integration between the Western Balkan countries to make markets more competitive, and improve quality and reduce cost of services. This would also help overcome some of the disadvantages of small size and attract more foreign investment, and also help deepen integration with the EU. 
• Calls for developing human capital as a centerpiece of country strategies in the region in order to improve productivity and help overcome the predominance of the low skill content in exports, and to attract foreign direct investment.
• Indicates a need to reduce telecommunication costs, which would improve competitiveness, offset disadvantages associated with small individual markets, and facilitate regional integration.
• Calls for action to avoid possible energy shortages that can negatively affect the pattern and volume of domestic and foreign investments.

This report comes at an important time for the history of the region’s development.  Its goal is to contribute to a better understanding of the underlying dynamics of the economies of the Western Balkans, and provide the analytical foundations for policy actions needed to foster eventual integration of these countries into the European Union.

Stability Pact Wraps up its Work, Transfers its Mission to Regional Cooperation Council 

The Stability Pact for South Eastern Europe has been decommissioned as of June 30, 2008. It's work was transferred to a new organization, the Regional Cooperation Council (RCC), whose mission is "to promote mutual cooperation and European and Euro-Atlantic Integration of South Eastern Europe in order reinvigorate economic and social development in the region to the benefit of its people." The RCC is located in Sarajevo. Further information on its mission, goals and activities are outlined on the RCC web site at www.rcc.int

In a letter of June 30 to the Corridor Eight Association and other contributors to the regional process, Erhard Busek, Special-Coordinator of the Stability Pact, thanked us all for our contributions and co-operation over the past years.  The Stability Pact organization was responsible for assisting participating countries to integrate their national development plans with a regional focus, assisted in setting regional and country priorities, and helped guide international donor support for these countries. It organized around issues by convening "Working Tables" on Democracy, Economy and Security. The Security Pact was a supporter of a number of Corridor VIII LED Network activities, which we appreciated very much.

Corridor VIII—Its Impact on Regional Economic Development

                                                                                     By Thomas England

(This article was published by the FORUM in Macedonia)  

These are times when many observers in the Southern Balkans look towards the North and West.  They do so with good reason.  They hope for accession of their nation into the European Union.  So why should they also be looking East and paying attention to the East West Transportation Corridor VIII?  I believe there are many political, cultural, social and economic reasons to do so. In this article I will concentrate on the economic aspects of the Corridor development project and its potential economic development impact on the countries of the Southern Balkan region. I will also make the case that to optimize the impact of the Corridor project, localities must organize themselves effectively through participatory processes, especially local economic development (LED) strategic planning.  By doing so, they can maximize the impact of the Corridor though capital investment and job creation, while at the same time protect themselves from negative environmental factors.  Click here for full article

Corridor VIII Board Meets in Skopje--Affirms Plans for Spring Conference 

Members of the Corridor VIII Association Board of Directors met in Skopje, Macedonia on September 14, 2007. During the meeting the members reviewed current plans and proposals for organizational activities, including advocacy for the corridor, utilization of the Corridor VIII website for advertising investment opportunities and special announcements by Corridor VIII members, and other items to be part of the overall work program for the coming year.  

A resolution was passed to hold the next annual organizational meeting and conference in Skopje in the spring, at a date to be selected. An organization committee was established. Arjan Toska volunteered to head up the host organizational effort, which will be supported by ZELS.  

The meeting was hosted by Board Member, Arjan Toska, of the MBDA T&I Net, and was attended by Ilir Zhilla, President of the Union of Albanian Chambers of Commerce, and Mr. Anton Krasniqi, Executive Director of the Union; Victor Arnaudoski, Attorney, representing ZELS, the Macedonia Association of Municipalities; Mr. Thomas England, President, ME&A and representing AATDA US; and Gafur Luga, Executive Director of AATDA AL, who serves as Executive Director of the Corridor VIII Association.   Further information on future Corridor VIII Association events and its upcoming conference can be obtained by contacting Mr. Luga at gluga@albmail.com.
 

Corridor VIII Network is Conducting Local Economic Development Plan Survey

As part of its work program for the year, the Corridor VIII Network is conducing a program to collect copies of Local Economic Development plans and strategies that have been adopted or our under development from localities along or near the Corridor. Once these LED strategies have been collected they will be analyzed, summarized and reported to Network members and communities. The purpose of this project is to look for common themes and identify synergies between them. We hope that the results of this survey and analysis will provide lessons learned for other communities that are in the process of developing LED plans, as well as point to specific cross-border business opportunities that might exist throughout the region.

If your community has an LED plan you wish to share, please contact us as soon as possible so that your plan can be featured in our report.