Evaluation of Montenero Governance and Economic Reforms on the Way to EU Membership - Essay Example

Montenegro By successfully steering Montenegro towards independence in May 2006 last year, the government of then Prime Minister Milo Djukanovic has disproved criticisms that separation from Serbia would jeopardize its ultimate goal of joining the European Union. If anything, with pragmatic moves and maneuvering among many contending pressures for it to stay with Serbia, independence freed it to pursue its further ties with the greater Europe. Less than a year later, now another milestone has been reached - Montenegro's conclusion of its Stabilization and Association Agreement (SAA) negotiation with the European Commission will pave the way for eventual integration with he European Common market1. The tiny nation of just 620,000 has done so ahead of Serbia whose European ambitions have been stalled with its refusal to cooperate with the International Criminal Tribunal for the former Yugoslavia. Montenegro looks poised to follow Croatia and Macedonia in actively negotiating accession negotiations after the signing of the SAA. After stepping down as Prime Minister in November last year after and leading the Coalition for a European Montenegro to a landslide victory in September , Djukanovic remains the moving force behind the nation's entry into European Union. He stays on a senior capacity in the Democratic Party of Socialists and has been reported in the Southeast European Times that after being in politics a long time (17 years) it would be hard for him to be "absolutely politically abstinent"2. Greater political stability has been achieved with the democratic elections held in September after the narrow win in the referendum in May, with just 55.5% of voters Montenegro giving a go signal for independence. Notwithstanding alleged criminal activities linking him to cigarette smuggling in Italy , Djukanovic, with his party in power has even greater leverage to pursue governance reforms in line with democratic principles as one of the main prerequisites into entering the European Union. Held in a fee and fair manner and in line with international standards, the parliamentary elections placed Montenegro was seen favorably by the international community in its capacity to address political reforms and implement them. According to the European Parliament in its Europa-Rapid website in its progress report on Montenegro, as of November 2006 "willingness to fight corruption and to consolidate the rule of law, including judicial reform, has increased" (par.1). However the same report, it said that implementation-wise, much needs to be desired. In particular, Montenegro's judicial system remains weak and organized crime needs to be addressed (par. 2). Charges of political cronyism were leveled in the elections of the new presidents of the Constitutional Court and Supreme Court in 2005. Freedom House noted that a "significant development" was the crafting of the 2004 Annual Report on the Work of the Supreme State Prosecutor, debated publicly in the Parliament in October 2005, presenting the first step toward an effective system of governmental checks and balances (Freedom House Country Report-Montenegro 2006 par. 9). In terms of legislation, Montenegro has strengthened its anti-corruption drive. Freedom House again noted that key legislations for improved public procurement and conflict of interest legislation are set to be passed and the Law on Free Access to Information was signed (par 10). Also for the first time as a signal towards greater Montenegro accountability, 1,692 public officials submitted reports on their income and property (par10). Djukanovic in an interview published in the New York Times said that his government managed to pass 140 laws and many more regulations in his past term as Prime Minister, with focus on reforms on the economy, education and administration. As to criticisms that implementation has been slow, he said that the "effects of this reform job will be witnessed only after 5 years" To further cement its legal democratic framework, Montenegro has to craft a new Constitution to formalize its new-state status after breaking away from Serbia in May 2006. This is one of the three main challenges facing the country after its independence according to the European Commission. Economy-wise, the Montenegrin government under Djukanovic had been way a step ahead of Serbia in its goal of integration with the European economy. Already using the euro as currency, other macro-economic indicators point to further progress in economic integration. Inflation is down to just 2 percent and budget deficit was below 2 percent - at par with EU countries. Public finances are improving with the introduction of the Value Added Tax (VAT) in April 2003 according to the European Agency for Reconstruction (EAR). The EAR noted that with the standard rate of 17 percent, the VAT "is the key driving force behind budgetary revenue". Half of all tax collections of the Republic come from VAT. Budget deficit has fallen to 1.5 percent of GDP in 2005 from a high of 6% of GDP in 2000. Montenegro The EAR also said that Montenegrins are looking at the capital market as a financial resource and a means to engage in business activity. In 2005, stock exchange transactions rose 300 percent to more than 125 million euros as compared to 2004. From almost 80,000 people unemployed, the number has decreased to 49,000-although at 7.9 percent it is still a high figure. Montenegro's net foreign direct investments (FDI) totaled 374.7 million euros in 2005 - mostly as a result of the privatization of the state's relinquishing control of Telekom Montenegro, Podgorica Aluminium Plant, and Podgorica Banka. Free trade as per World Trade Organization (WTO) accession and in line with customs policy according to EU requirements have been given impetus by the Montenegrin government with the establishment of centers of metrology, standardization and intellectual property. Montenegro has also formally stated that its economic future will depend on its tourism and services sectors. In same interview published in the New York Times, Djukanovic stressed tourism as the country's "key chance". With the help of a Master Tourism Plan until 2020, the privatization of existing tourism facilities are underway. He also said that Montenegro understands that infrastructure development is the most important precondition for tourism development and they are "fully dedicated to resolving the issue as well". By many indications especially in as far as economic integration is concerned, Montenegrin authorities are proceeding along with its goal of joining the European Union. Further moves for political stability and better governance will also likely proceed. It is worth noting that under Djukanovic's leadership, Montenegro has maneuvered wisely in balancing its ties with its Balkan neighbors and the demands of the United States and Western Europe which didn't support at first the country's bid for independence. When it couldn't proceed right away with its independence from Serbia, it bid for time, by agreeing to be tied with Serbia for three more years in exchange for a referendum for independence that was successfully hurdled in May 2006 last year. A further indication of its will towards being recognized as a state accountable to the international community was when Montenegro under Djukanovic agreed to the precondition of 55 percent of the yes votes for independence imposed by the European Commission. Montenegro hurdled the challenge with just 2,000 votes in favor of independence - a narrow victory as seen by my many analysts. But the parliamentary elections held last September where the Djukanovic-led coalition under a pro-Europe platform won by a clear majority further cemented the chances towards an eventual membership in the European Union. Further proof is the recent conclusion of the Stabilization and Association Agreement (SAA). The SAA will be the working and formal framework by which Montenegro will be judged as a candidate for inclusion into the European Union. As for problems with governance such as corruption and judicial reforms, Djukanovic has said that the legal foundations have been built and implementation will take at least five years. With him very much around as a leader of the party in power, and given his track record a good chance that implementation of legal forms will bear fruit. Bibliography: "Montenegro seals Stabilisation and Association Agreement with EU" . Source: SE Times . 15 March 2007. SEE Monitor: Montenegro. The Centre for Southeast European Studies. 16 March 2007 Summit Communications."Interview: Milo Djukanovic, Prime Minister" (no date). Insider View: A Special Advertising Section. The New York Times 16 March 2007 < http://nytimes.com/global/montenegro/interview01.html> Antonela Arhin, "For Djukanovic, one chapter closes, another begins" 16 October 2006. Southeast European Times. 16 March 2007. "EU gives Montenegro hope of deal". 29 May 2006. BBC News - International version. 16 March 2007 http://news.bbc.co.uk/2/hi/europe/5027202.stm "Key findings of the progress reports on Kosovo and the potential candidate countries: Albania, Bosnia and Herzegovina, Montenegro, Serbia". 08 November 2006. Press Release. Europa-Rapid website. European Parliament. < "Country Report: Montenegro and Serbia (2006)". Freedom House 16 March 2007 "Montenegro". December 18, 2006. European Forum for Democracy and Solidarity. 16 March 2007 http://www.europeanforum.net/country/ "Montenegro Annual programme 2006" 16 March 2007 < http://www.ear.eu.int/montenegro/main/EAR-Montenegro-AnnualProgramme2006.htm> "Montenegro: Questions and Answers". European Enlargement. European Commission website. 16 March 2007 "Montenegro-Political Profile". European Enlargement. European Commission website. 16 March 2007. Read More