Cooperation Strategy Serbia 2010 - 2013 - Deza - admin.ch

Cooperation Strategy Serbia 2010 - 2013 - Deza - admin.ch Cooperation Strategy Serbia 2010 - 2013 - Deza - admin.ch

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SWISS COOPERATION Executive Summary Serbia has experienced considerable economic growth in recent years and is now a country with a clear European orientation and strong will to take the social inclusion agenda forward. The Cooperation Strategy 2010-2013, therefore, builds on past programme experience and makes use of new opportunities to align itself with Serbia’s policies and strategies. While the Strategy thus has elements of continuity, it is also designed to adjust to emerging challenges, including the repercussions of the global economic crisis on Serbia. Serbia has begun defining and implementing reforms in many sectors, with the aim of improving state effectiveness and fulfilling the criteria for becoming a European Union (EU) candidate country. However, overall progress with modernizing the judiciary, combating corruption and implementing decentralization has been slower than expected. Respect for human rights and the integration of minorities remain challenges, despite the fact that minorities are officially recognized and an anti-discrimination law has recently been passed. From 2006 to 2008, annual real Gross Domestic Product (GDP) growth rates ranged from 5.5% to 7.5%, while poverty rates decreased from 8.8% to 6.6% of the population. GDP per capita reached USD 7,000 in 2008, placing Serbia firmly in the upper bracket of middle-income countries. The official unemployment rate in 2008 remained at a high 14%, with vulnerable sections of society such as young people and minorities especially badly hit. As a consequence of the global economic crisis, Serbia’s economy has contracted by an estimated 3% in 2009 and it is anticipated that growth will resume in 2010. After years of positive trends, poverty has recently increased again to 7.9%. This affects the elderly, young people and children in particular. In addition, as many as 20% of the population live just above the poverty line and are vulnerable to external shocks. As in other countries in the region, the Roma population and the other 20 recognized “national minorities” are in a difficult situation, both economically and socially. As a response to these social challenges, the government has decided to draw up and implement social inclusion policies as well as a comprehensive migration management strategy. Both are essential to the EU integration process. Switzerland established a humanitarian aid programme in Serbia in 1991. This was phased out only recently. In 2001, an emergency assistance programme was launched to support the incoming democratic government. This was followed by the development of a medium-term cooperation programme for 2002 to 2006. In addition, the Federal Office for Migration (FOM) financed significant return assistance and reconstruction programmes throughout this period. The last Cooperation Strategy covered the period from 2007 to 2009. Its relevance with regard to national priorities was high, and implementation effective. Switzerland consequently continues to enjoy an excellent reputation, owing to its focus on achieving results, its flexibility of approach and its strong partnership orientation. The overall goals of the Cooperation Strategy 2010-2013, related to European integration, and the four domains (Economic Development, Rule of Law and Democracy, Education, Energy Efficiency and Renewable Energy), are well in line with the government’s priorities, as formulated in several strategic documents. IV

SERBIA 2010-2013 1. Context and development policies The evolution of the context in Serbia was encouraging in recent years, after the difficult period in the nineties and the political changes in 2000. Between 2007 and 2009 – the time-frame of the previous Cooperation Strategy – the country made good progress in its transition process and placed itself firmly on the path to European integration. That said, two major developments – the secession of Montenegro and Kosovo’s unilateral declaration of independence – significantly changed Serbia’s geo-political environment. During this period, Serbia was generally on track with the implementation of essential reforms. These resulted in high economic growth rates and a decrease in poverty – factors which are now endangered by the global economic crisis. The Western Balkans region in general, and Serbia in particular, will continue to be of strategic priority for the Swiss foreign policy for reasons of proximity, closeness of interaction and a significant diaspora living in Switzerland. Bilateral relations between Serbia and Switzerland intensified in 2009 with a series of high-level visits, after a slow-down in 2008 when Serbia recalled its ambassadors from countries, including Switzerland, which had recognized Kosovo’s independence. Cooperation between the two countries, which are in the same constituency within the Bretton Woods Institutions, has evolved very positively in recent years. 1.1 Political developments The prospect of integration into the EU clearly remains the major driving force behind political and administrative reforms. However, while the Serbian parliament has ratified the Stabilization and Association Agreement (SAA), the EU has not yet done so, on grounds that Serbia’s cooperation with the International Criminal Tribunal for the former Yugoslavia (ICTY) is still not fully satisfactory. Serbia’s accession to the Schengen “White List” in December 2009 – enabling visafree travel to Europe – was an essential step towards Serbia’s European integration. Early elections in May 2008 brought a pro-European coalition government to power. It seems to be solid, but the opposition continues to block important reforms in parliament and regularly calls for new elections. The stability of the government will depend largely on the effects of the global economic crisis on the country, and the response by the authorities. Serbia has begun defining and implementing reforms in many sectors, with the aim of improving state effectiveness and fulfilling the criteria for becoming an EU candidate country. Overall progress with modernizing the judiciary, combating corruption and implementing decentralization is slower than expected. Respect for human rights and the integration of minorities are still challenges, despite the fact that minorities are officially recognized and an anti-discrimination law has recently been passed. It remains to be seen how far the prevailing “distributive” political discourse – on the fair allocation of economic and social resources – will win over the previously dominant “symbolic” discourse aimed at uniting the people under the flag of a strong Serbia, including Kosovo. Serbia’s plea to refer Kosovo’s unilateral declaration of independence to the International Court of Justice has been accepted by the United Nations. The advisory opinion of the Court is expected in 2010. 1.2 Economic developments From 2006 to 2008, annual real GDP growth rates ranged from 5.5% to 7.5%, while poverty rates decreased from 8.8% to 6.6% of the population. GDP per capita reached USD 7,000 in 2008, placing Serbia firmly in the upper bracket of middle-income countries. The official unemployment rate in 2008 remained at a high 14%, with vulnerable sections of society such as young people and minorities especially badly hit. As a consequence of the global economic crisis, the Serbian economy has contracted in 2009 with an estimated 3% decline in GDP. An International Monetary Fund (IMF) stand-by arrangement (EUR 3 billion in 2009-10), new loans from the World Bank (WB) and the use of EU IPA (Instrument for Pre-Accession Assistance) funds in 2009 are all 1

SWISS COOPERATION<br />

Executive Summary<br />

<strong>Serbia</strong> has experienced considerable economic<br />

growth in recent years and is now a country<br />

with a clear European orientation and strong<br />

will to take the social inclusion agenda forward.<br />

The <strong>Cooperation</strong> <strong>Strategy</strong> <strong>2010</strong>-<strong>2013</strong>, therefore,<br />

builds on past programme experience and<br />

makes use of new opportunities to align itself<br />

with <strong>Serbia</strong>’s policies and strategies. While the<br />

<strong>Strategy</strong> thus has elements of continuity, it is<br />

also designed to adjust to emerging <strong>ch</strong>allenges,<br />

including the repercussions of the global economic<br />

crisis on <strong>Serbia</strong>.<br />

<strong>Serbia</strong> has begun defining and implementing<br />

reforms in many sectors, with the aim of improving<br />

state effectiveness and fulfilling the criteria<br />

for becoming a European Union (EU) candidate<br />

country. However, overall progress with modernizing<br />

the judiciary, combating corruption and<br />

implementing decentralization has been slower<br />

than expected. Respect for human rights and<br />

the integration of minorities remain <strong>ch</strong>allenges,<br />

despite the fact that minorities are officially<br />

recognized and an anti-discrimination law has<br />

recently been passed.<br />

From 2006 to 2008, annual real Gross Domestic<br />

Product (GDP) growth rates ranged from<br />

5.5% to 7.5%, while poverty rates decreased<br />

from 8.8% to 6.6% of the population. GDP per<br />

capita rea<strong>ch</strong>ed USD 7,000 in 2008, placing<br />

<strong>Serbia</strong> firmly in the upper bracket of middle-income<br />

countries. The official unemployment rate<br />

in 2008 remained at a high 14%, with vulnerable<br />

sections of society su<strong>ch</strong> as young people<br />

and minorities especially badly hit. As a consequence<br />

of the global economic crisis, <strong>Serbia</strong>’s<br />

economy has contracted by an estimated 3%<br />

in 2009 and it is anticipated that growth will<br />

resume in <strong>2010</strong>.<br />

After years of positive trends, poverty has recently<br />

increased again to 7.9%. This affects the elderly,<br />

young people and <strong>ch</strong>ildren in particular. In addition,<br />

as many as 20% of the population live<br />

just above the poverty line and are vulnerable<br />

to external shocks. As in other countries in the<br />

region, the Roma population and the other 20<br />

recognized “national minorities” are in a difficult<br />

situation, both economically and socially. As<br />

a response to these social <strong>ch</strong>allenges, the government<br />

has decided to draw up and implement<br />

social inclusion policies as well as a comprehensive<br />

migration management strategy. Both are<br />

essential to the EU integration process.<br />

Switzerland established a humanitarian aid programme<br />

in <strong>Serbia</strong> in 1991. This was phased out<br />

only recently. In 2001, an emergency assistance<br />

programme was laun<strong>ch</strong>ed to support the incoming<br />

democratic government. This was followed<br />

by the development of a medium-term cooperation<br />

programme for 2002 to 2006. In addition,<br />

the Federal Office for Migration (FOM) financed<br />

significant return assistance and reconstruction<br />

programmes throughout this period. The<br />

last <strong>Cooperation</strong> <strong>Strategy</strong> covered the period<br />

from 2007 to 2009. Its relevance with regard to<br />

national priorities was high, and implementation<br />

effective. Switzerland consequently continues to<br />

enjoy an excellent reputation, owing to its focus<br />

on a<strong>ch</strong>ieving results, its flexibility of approa<strong>ch</strong><br />

and its strong partnership orientation.<br />

The overall goals of the <strong>Cooperation</strong> <strong>Strategy</strong><br />

<strong>2010</strong>-<strong>2013</strong>, related to European integration,<br />

and the four domains (Economic Development,<br />

Rule of Law and Democracy, Education, Energy<br />

Efficiency and Renewable Energy), are well in<br />

line with the government’s priorities, as formulated<br />

in several strategic documents.<br />

IV

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