Kristiina Ojuland: The Baltic Sea Region – A Motor for European Development?

Address by the Foreign Minister of the Republic of Estonia Kristiina Ojuland at the European Commission’s Representation in Sweden Stockholm, 20 October 2003


Excellencies
Ladies and Gentlemen

Allow me to begin by expressing my gratitude to the organisers of the celebration of the 5th anniversary of the Secretariat of the Council of the Baltic Sea States for inviting me to speak on this memorable occasion, and at the same time to express my appreciation of the work carried out by the Secretariat in coordinating and assisting the activities of the CBSS.

I

Our region has, during the past years, often been referred to as an area with an excellent potential for becoming a region of sustainable growth, which could serve as a model for other similar regions or sub-regions. Personally, I am confident, that thanks to their geographic location, common historical experience, similar and yet diverse economic and cultural traditions, the Baltic Sea countries have a good potential for sustainable development, which would benefit not only their own people, but the whole international community.

At this point, I would like to quote a great visionary, who has devoted enormous amounts of time and energy to the promotion of the development of our region – Mr. Uffe Ellemann-Jensen. In his welcoming address to the 5th Baltic Development Forum Summit in Riga two weeks ago, he said: "We must meet our common challenges in order to seize the new opportunities. History shows that this is the only way to succeed and to position the Baltic Sea region as a global frontrunner."

When we take a look back at the eleven years which have passed since the establishment of the Council of the Baltic Sea States, we can see that the optimism and confidence of the highly merited Uffe Ellemann-Jensen is based upon reality. In other words, upon the actual developments, which have taken place during these years. No one can deny that tremendous changes for the better have taken place in our region.

In order to exemplify my statement, I will refer to the Copenhagen Declaration, adopted by the first conference of the foreign ministers of the Baltic Sea States in March 1992. Specifically, the section dealing with Humanitarian matters and Health, the beginning of which reads as follows: "The Ministers realised that a number of states in the region face urgent and serious problems in connection with the supply of food, medicine and fuel."


It is very human to forget the negative and remember the positive, just as it is very typical to be discontented with one’s current situation and be oblivious of the troublesome past. Therefore, it is difficult for us today to even to think back upon the precarious economic and humanitarian situation which prevailed in a number of Baltic Sea region countries just a few short years ago. Today, it is no longer foreign aid, but economy and trade that dominates political discourse in the countries of the region. The societies of the former Communist block countries have, during the past decade, undergone profound changes.

These have not only transformed their economies, but also the mentality of individuals and whole nations. We can thus say, with a high degree of certainty, that the rather messy situation in the former so-called Communist countries has been replaced by a relatively stable and predictable economic and social climate. This can, among other things, be attested by the large financial investments, which have been made in the countries of our region.


II

Dear friends,

Allow me now to continue with some thoughts on the underlying causes of the positive developments in our region.
The incontestable progress made by the nations of our region is indeed the result of a multitude of concurrent factors. I hope, however, that you agree with me, that the renowned American economist, Nobel Prize winner Douglass Cecil North, who, in his deeply visionary book Institutions, Institutional Change, and Economic Performance, published in 1990, was right when he argued, that it is neither natural resources nor skilful economic policies that determine a society’s economic growth and social development over the long term. As North convincingly explains, it is institutional development, which is crucial to a nation’s ability to create social stability and welfare.

We may, of course, assert, that the true sources of the remarkable progress, which we have seen in the Baltic Sea region, were the bold decisions and brilliant ideas of its leaders, or perhaps even foreign aid. But if we look at things through the prism of Douglass North’s theory, it seems obvious that the main guarantee of sustainable development in our region has been the commitment to the European traditions of democratic institutions, which provide people with a stable and trustworthy setting for living their daily lives and promoting economic and social progress.

In this context I would also like to recall the fact that the 1st section of the Copenhagen Declaration, which I have already referred to, was appropriately entitled Assistance to new democratic institutions. Now, a decade later, it is difficult to assess how large a segment of the general public of the new democracies, at that time, grasped the true role of democratic institutions. Today, we can, however, note with satisfaction, that the democratic institutions, which, in the spring of 1992, in several countries of the Baltic Sea region were still at an embryonic stage, have reached such a degree of maturity that they deserve the trust of the majority of the people, and of the democratic European community as a whole. We may thus note that the institutional framework for a stable economic and social development, though maybe not yet perfect, is there. And for this, I think, we also have to thank the wisdom of the “founding fathers” of the Council of the Baltic Sea States.

When speaking about the importance of democratic institutions it would be unfair to pass over one important institutional innovation, which has come about at the initiative of the CBSS – the setting up of the ombudsman institution in the countries of former Communist Eastern and Central Europe. It is impossible to overestimate the importance of the ombudsman institution in connection with the creation of a sound psychological climate and legal awareness in societies where citizens, for half a century, had lacked any possibility to assert themselves vis-à-vis the state.

Alongside democratic institutions and their consolidation over the years, there are of course also other significant factors upon which the generally positive trend of development in the Baltic Sea region rests. Among these, co-operation, which is based upon shared interests and is built up around democratic structures, is the foremost. In the early nineties, co-operation was the euphemistic term often used to define foreign aid. But over the years, co-operation spread to all spheres of common interest – in addition to matters dealing with the economy, co-operation in connection with the environment, education, health, the fight against crime and drug trafficking, etc, has grown in importance and scope.

Co-operation is, however, but an abstract notion. In reality, it needs to be initiated and implemented by concrete individuals who have a vision and the will to realize it. I am sure, that it is not an exaggeration, if I maintain that the steadily evolving co-operation of the past decade in our region is, to a large extent, the result of the efforts of two outstanding politicians – Uffe Ellemann Jensen and Hans Dietrich Gensher, the foreign ministers of Denmark and Germany who, back in 1992, laid the foundations of the CBSS and envisaged its role and evolution.

To conclude this section of my discourse, I would like to draw your attention to the fact that these two distinguished gentlemen coped with the task of convincing their colleagues in the other Baltic Sea states of the need to establish a structure for co-operation, which would serve the interests of all the nations of the Baltic Sea region. Considering the general political atmosphere of the time, this was certainly a historically significant feat.

III

Ladies and Gentlemen,

I would now like to continue with a brief account of some of the most acute challenges, which our nations are facing today, and the solving of which needs serious attention. If these problems are not solved, our claims of becoming a motor for international development will sound hollow, and all our talk of sustainable development will seem pointless.
.
The most burning issue of our region is the environment. The CBSS has been actively engaged in the problems of environmental protection from the very start, with the main concern being the state of the Baltic Sea. Thanks to the serious efforts of the member countries, considerable progress has been made in eliminating the sources of reckless pollution – the overall amount of industrial and household sewage discharged by the littoral states has decreased significantly. This has, however, been largely due to the closing down of a large number of big industries and a reduction in agricultural production.

But despite the progress made during the past decade, the Baltic Sea still remains one of the most polluted maritime environments in the world. Since the Baltic Sea is of vital economic and recreational value to the people in the countries around it, the pressure on its environmental balance continues to grow. Especially grave is the situation in the Gulf of Finland, where resolute measures must be adopted. Together with St. Petersburg and the North-West of Russia, Estonia and Finland are looking forward to the completion of the construction of adequate sewage treatment plants in St. Petersburg. These will hopefully lead to a notable improvement of the environmental situation in the Gulf of Finland. But there are, of course, problems with sewage treatment and agricultural and industrial pollution all around the Baltic, including in my own country. Considering the region’s growth forecasts, we must not only maintain, but must increase our efforts to remedy the damage done to the Baltic.

Considering the vulnerability of the Baltic Sea, it is of utmost importance that all the participant countries support the initiative, which is to be presented to the International Maritime Organisation, for declaring the Baltic Sea a Particularly Sensitive Sea Area. This status would, on the one hand, mean stricter monitoring, which would entail substantial expenditures. But in the long run, it would help to ensure the preservation of the Baltic Sea, with its seafood resources, beautiful islands, and marvellous beaches.

Besides the risks originating from the industrial, agricultural, and household sources of pollution, navigation in the Baltic Sea is constantly increasing due to expanding economic activity and tourism. As a result, during the last few years, the frequency of accidents with various different kinds of vessels has increased in Baltic Sea..
Allow me to illustrate this point with figures, which will show how serious the problem is from an Estonian point of view – last year, 63 accidents involving various different kinds of vessels were registered in the Baltic. Of these, no less than 18, more than a fourth, took place in Estonian waters. Four of the accidents, which took place in Estonian waters, involved tankers - three of them were transporting oil, and one was carrying a cargo of chemicals.

Fortunately, as luck would have it, none of the accidents caused any serious spillage. But the future cannot be built upon the hope that good luck will always be with us.

In view of the continuous increase in the number of various different kinds of vessels sailing in the small and shallow Baltic Sea, and especially the growing tanker traffic, it is vital that traffic by single-hulled tankers be terminated in the Baltic Sea before the worst apprehensions come true. Especially since statistics show that the number of collisions between two vessels is almost equal to the total number of all other kinds of maritime accidents in the Baltic Sea.
Allow me now to touch upon the problem of trafficking in human beings.

Although the existence of the problem of trafficking in human beings was recognized in my country fairly recently, it is now understood that this trafficking is a serious global concern, which must be fought at all levels and with all appropriate means. International cooperation in this field is of the utmost importance. The matter of trafficking in human beings has become a permanent agenda item for meetings of various international organizations, and steps have been taken to further develop co-operation in this field.

It should be noted that the Council of Baltic Sea States, under the Estonian chairmanship, has highlighted the fight against trafficking in human beings as one of its priorities. Concrete measures for the exchange of best practices and for other forms of co-operation in this sphere still have to be elaborated.

Also, the Nordic and Baltic states have decided that the fight against trafficking in human beings, especially women and children, must be regarded as a political priority. It was decided that National Action Plans must be developed, and a Nordic Baltic Task Force against Trafficking in Human Beings was appointed.
The adoption, this summer, of the OSCE Action Plan to Combat Trafficking in Human Beings also demonstrates the anti-trafficking efforts of the international community. The role of the United Nations, and the importance of the relevant UN instruments and their overall ratification by all states should not be overlooked. The work of the Council of Europe, in this regard, can also be mentioned, especially the drafting of a European Convention against trafficking in human beings.

In order to achieve better results in the global fight against this trafficking, different international organizations such as the UN, the OSCE, the Council of Europe, the EU, and the CBSS should further co-ordinate their ongoing activities in this sphere.

Ladies and Gentlemen,

I am confident, that you will agree with me, that without adopting serious measures to combat the trafficking in women and children, both in the Baltic Sea region and beyond its boundaries, our declarations about the success of our societies would sound rather meaningless.

A discussion about the future prospects of the Baltic Sea region, and the challenges it is facing, would be futile without keeping in mind the enlargement of the EU. Especially now, that the Intergovernmental Conference in Rome is in progress. On May 1, 2004, in slightly more than six months’ time, the current round of the enlargement of the European Union will be completed. This means that from that date on, only Norway , Iceland and the Russian Federation, will not be members of the EU. And this presents us all with a challenge of sorts.

As for Norway and Iceland, it can be stated that its relations with the European Union are based upon long and well-established traditions of co-operation, which are well in place thanks to the EEA agreement, and need only minor adjustments and streamlining on a regular basis.


The relations between the EU and Russia are based upon the Partnership and Co-operation Agreement, which is aimed at strengthening the strategic partnership between the EU and Russia. As the EU is Russia’s most important trading partner, it is only natural that the EU has a vital interest in Russia’s development. As we all very well know, both the EU and Russia have a mutual interest in developing a dialogue in such fields as energy, space research, and science and technology. And in time there are good prospects for the creation of a common European economic space, which will encompass both Russia and the EU. While the representatives of the EU have on repeated occasions underscored their conviction that the upcoming enlargement will have a beneficial impact upon the relations between the EU and Russia, Russian politicians and officials have, however, been much more reserved, or even sceptical, about the consequences of the enlargement for Russia. Indeed, considering the amount of Russia’s trade with the acceding countries – roughly 16% of Russia’s total trade turnover – these apprehensions can be said to be plausible, as some of the existing bilateral agreements that Russia has with the acceding countries have to be annulled before May 1, 2004..

But in my opinion, we should view things from a broader perspective, and assess both the enlargement and EU-Russian relations by keeping in mind the long term gains for all parties involved, including the Baltic Sea region as a whole. Hopefully, substantial progress will be made in sorting out the differences between the EU and Russia in two weeks time, at the EU-Russia summit in Rome on November 6.

In this connection, it is appropriate to recall an example of excellent co-operation between Russia and the EU, which is highly relevant in the context of Baltic Sea region co-operation. As you probably realize, it is the matter of Russian transit traffic to and from the Kaliningrad oblast that I have in mind. The rational solution reached by the parties involved – Lithuania, Russia, and the EU – is in my opinion proof of the maturity and good will of all three parties, and is thus an encouraging sign for the future.

As for Russia’s apprehensions concerning the enlargement of the EU, there is reason to note that not all the opportunities offered by the existing regional co-operation projects have been fully utilized.

Alongside the Partnership and Co-operation Agreement with Russia, and the EU’s Common Strategy, the Northern Dimension of the European Union, initiated and evolved by Finland, is an important element in the development of EU – Russian relations. The Northern Dimension initiative Action Plan has provided a good basis for co-operation with Russia, especially with the north-west region of the country. I am confident that the enlargement of the EU to Poland, Lithuania, Latvia, and Estonia will have a favourable impact upon the implementation of the Northern Dimension, as it is these countries, which alongside the Nordic countries, are the most relevant partners in the Northern Dimension initiative.

Considering further the valuable experience of the EU in the sphere of regional cross-border co-operation, there is every reason to believe that the enlargement will also boost cross-border co-operation between the new member states and the north-western region of Russia, creating new jobs and facilities for the benefit of all the parties involved..


In the new circumstances which will arise after the enlargement, the CBSS will certainly be able to play an increasingly positive role in the relations between Russia and the European Union. What I mean is, that the other CBSS countries’ membership in the EU can facilitate procedures when regional co-operation is involved and also expedite the implementation of new projects in a flexible manner.

I would like to underscore my firm conviction that a further integration of Europe, including the Baltic Sea region, is advantageous not only to the present and would-be members of the EU, but also to their partners.

Now, as you see, I did not make an attempt to formulate an answer to the question in the title of my address. It seems to me, that the answer depends upon a multitude of factors, and will be determined by the course of action that we choose. And by the extent of our commitment to democratic development and co-operation, as well as our resolve to fight both environmental and social evils in the region and beyond its boundaries. So the answer is open to discussion.

In conclusion, I would like to once again thank the Secretariat of the CBSS for the excellent work that they have done. Among the Secretariat’s many and varied responsibilities, I would like to make special mention of the Baltinfo newsletter, which gives a good overview of the essential developments taking place in our region. Thus, it is an important source of information both for those directly involved in the work of the CBSS and the general public. Together with my best wishes to the to the staff of the Secretariat, I would also like to extend my thanks to Sweden for being the host country of the Secretariat..


Thank you for your attention.