Background

The mayors of Sofia, Skopje and Nis, with the active support of the East-West Institute, initiated a long-term process of cross-border cooperation between the border regions of Bulgaria, Macedonia and Yugoslavia. The main goal of this initiative was to make the intensive cross-border cooperation a powerful tool for regional economic development and integration within the triangle formed by Sofia, Skopje and Nis, and to create conditions for prosperity, security and peaceful mutual existence of the three neighboring countries.

The international conference, organized jointly by the Nis Municipality and the East-West Institute with the support of the European Council on September 17-19, 2001, was the first significant step in the development of the initiative. It brought together 80 mayors, representatives of the municipal administration, academic and research institutes, civil organizations, and the private sector, who discussed general problems of regional development, identified the obstacles of cooperation, and gave recommendations for their resolution.

Practice

As a following step towards the intensification of the cooperation process, the cities of Sofia, Skopje and Nis, supported by the East-West Institute, organized an Economic Forum in Sofia, aiming at the development of sustainable economic relations between the cross-border regions. The event took place on February 20-22, 2002. The accompanying trade fair Business Contact gave the business communities of each country the opportunity to meet and develop their own networks. More than 100 small and medium enterprises were presented, as well as large companies from the border regions. Participants exchanged expert knowledge and explored the possibilities for joint enterprises; new tools for cooperation were sought through the exploration of a larger market.

The Forum hosted meetings of Working Groups of experts and practitioners in the sphere of regional development, SMEs and trade, the discussions of which were, in fact, a follow up of the conclusions drawn at the Nis meeting. Two sessions were held: of the Working Group on the preparation of a strategy for cross-border regional development, and of the Working Group on cross-border cooperation for SME and trade development. They defined the priorities for joint action and sought ways to institutionalize cross-border economic cooperation in favor of the communities of the three countries. Discussions were concentrated in the sphere of infrastructure, tourism, transport, energy efficiency, environment, information technologies, credits for the SMEs, and the banking sector. As the major obstacles for cooperation expansion were listed the lack of funds in the national and local budgets for financing joint projects, and the impossibility to utilize the cross-border funds of the EU, as only Bulgaria is an associated member.

The proposals of the Working Group on the preparation of a strategy for cross-border regional development included: preparation of joint projects in the field of agro-ecological tourism; development of a joint regional program for environmental protection; treatment of hazardous waste and installation of collectors in the water supply system; research on the methods for introduction of the Kyoto mechanisms for decreasing the emissions of hazardous gases; establishment of a commission for sustainable economic revival; opening of a regional training center for introduction of IT in municipalities; preparation of a special program for developing the steel industry and organizing an economic forum in that sphere; building the Odysseus Cultural Network as an official tool for cultural exchange, etc.

The Working Group on cross-border cooperation for SME and trade development suggested the signing of an agreement for free trade between Bulgaria and Yugoslavia; integration of the services in the field of international transport and trade, putting a special emphasis on the priority of the highways connecting the three cities; tourism development within the triangle formed by Sofia, Skopje and Nis; supporting the foundation of an Association of the Balkan Banks; constitution of a formal body for SME management and long-term planning.

The common theme in the conclusions and recommendations of the two Working Groups, was the need to formalize the operational contacts through institutionalized cross-border bodies, which would prepare a common strategic framework for joint action. This would provide for more specific and more focused initiatives for cross-border development, as well as development of SMEs and trade.

Results

On the basis of recommendations presented by the Chairpersons of the Working Groups at the Economic Forum, the mayors of Sofia, Skopje and Nish agreed to work together for the establishment of an effective Euro-region of the border areas of the three countries. In that structure, the Working Groups would play the role of specialized committees. The mayors themselves, answering the stated need for the institutionalization of the initiative, agreed to form the core of a Cross-Border Council that would act as a central body of the future Euro-region, inviting other key participants from the local and regional committees.

On its part, the East-West Institute would continue to support this process of institutionalization a key goal of the project for cross-border cooperation in the region, by performing the functions of a Secretariat or a coordination body for the Council and the specialized committees until they become self-sustainable. This coordination body would be based in Nis, at the newly established Local Democracy Agency by the Council of Europe.