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EUROPEAN UNION QG-76-06-243-EN-C Committee of the Regions Rue Belliard 101 - 1040 Brussels THE STATE OF LOCAL DEMOCRACY Tel. +32 2/282 22 11 - Fax +32 2/282 23 25 http://www.cor.europa.eu IN THE WESTERN BALKANS A Study of Local Democratic Processes and Institutions in Albania, Bosnia and Herzegovina, The Former Yugoslav Republic of Macedonia, and Serbia and Montenegro. THE STATE OF LOCAL DEMOCRACY IN WESTERN BALKANS DEMOCRACY OF LOCAL THE THE STATE EN Price (excluding VAT) in Luxembourg: EUR 25 OFFICE FOR OFFICIAL PUBLICATIONS OF THE EUROPEAN COMMUNITIES L-2985 Luxembourg 2389_Etd Western Balkans_EN 2/10/06 13:02 Page 4 2389_Etd Western Balkans_EN 2/10/06 13:02 Page 1 THE STATE OF LOCAL DEMOCRACY IN THE WESTERN BALKANS A Study of Local Democratic Processes and Institutions in Albania, Bosnia and Herzegovina, The Former Yugoslav Republic of Macedonia, and Serbia and Montenegro. Elena Gadjanova July 2006 2389_Etd Western Balkans_EN 2/10/06 13:02 Page 2 This study was produced by Elena Gadjanova. It does not represent the official views of the Committee of the Regions. A great deal of additional information on the European Union is available on the Internet. It can be accessed through the Europa server (http://europa.eu.int). Cataloguing data can be found at the end of this publication. Luxembourg: Office for Official Publications of the European Communities, 2006 ISBN 92-895-0391-2 © European Communities, 2006 Reproduction is authorised provided the source is acknowledged. Printed in Belgium PRINTED ON WHITE CHLORINE-FREE PAPER 2389_Etd Western Balkans_EN 2/10/06 13:02 Page 3 FOREWORD The future of the Western Balkans lies within the European Union. A prime political objective of the EU is to bring long-lasting stability and foster democratization in this part of South-East Europe. The Committee of the Regions has pledged its full support in the efforts of Western Balkan countries to consolidate democracy and promote sustainable social and economic development. Local and regional authorities, both in Western Balkan countries, and their EU counterparts, must play an active role in this process. We have emphasised on numerous occasions the need for capacity-building at the regional and local level in the potential Candidate Countries, since successful ongoing process will ultimately depend on local and regional authorities. The active participation of the latter towards the European integration processes in the Western Balkans should be sought and encouraged. Therefore, a particular effort must be made to bolster democracy and the rule of law at the local and regional level. This study provides a snapshot of the state of democracy at the local level in Albania, Bosnia and Herzegovina, the Former Yugoslav Republic of Macedonia, Montenegro and Serbia, including Kosovo. It examines a number of factors, determining local democracy in each country – such as degree of legal and fiscal autonomy, provisions for citizens’ involvement in decision-making, implementation of minority rights, civil society, media, etc., and assesses the impact of a series of ‘external’ influences on the consolidation of democracy at the local level, such as strength and salience of central state institutions, issues of self-determination and ethnicity, as well as past international involvement. An analysis of the achievements and challenges to democracy at the local level is done on a country-by-country basis, bearing in mind the huge variations in local conditions across the Western Balkans. Now is a crucial time for the consolidation of democracy at the local level in the Western Balkans. A lot has been achieved in recent years, ground-breaking changes have been made, and the political consensus for reform has seldom been stronger. Local authorities in the Western Balkans are at present in sharp need of support and encouragement to implement agreed reforms and it is a strategic interest of the EU’s local and regional authorities to establish long-lasting relations with their Western Balkan counterparts. By identifying the strengths and challenges to local democracy, this study can serve as a basis for a continued and enhanced cooperation between local and regional authorities in the EU and the Western Balkans. Michel Delebarre President of the Committee of the Regions 2389_Etd Western Balkans_EN 2/10/06 13:02 Page 4 2389_Etd Western Balkans_EN 2/10/06 13:02 Page 5 TABLE OF CONTENTS Introduction : Democratization in the Western Balkans: Towards a Definition 1 1. Concepts of Democracy and Established Definitions of Democratization 1 2. Local Democracy: Definition and Indicators 2 3. The Balkan Influence: Ways to Conceptualize Levels of Democratization Specific to the Region’s History and Developments 4 4. Summary 20 Chapter I: Local Democracy in Albania 22 1. Progress towards Decentralization 23 2. The Institutional Framework for Local Democracy 25 3. The Procedural Functioning of Local Democracy 44 4. State Weakness in Albania 49 5. International Involvement in Albania 51 6. Economic Transition and Consolidation in Albania 54 7. Corruption and Organized Crime in Albania 56 8. Conclusion: The State of Local Democracy in Albania – Summary of Main Findings 58 Chapter II: Local Democracy in Bosnia and Herzegovina 60 1. Progress Towards Decentralization 61 2. The Institutional Framework for Local Democracy 62 3. The Procedural Functioning of Local Democracy 80 4. State Weakness in Bosnia and Herzegovina 89 5. International Involvement in Bosnia and Herzegovina 90 6. Ethnicity in Bosnia and Herzegovina 93 7. Economic Transition and Consolidation in Bosnia and Herzegovina 97 8. Corruption and Organized Crime in Bosnia and Herzegovina 99 9. Conclusion: The State of Local Democracy in Bosnia and Herzegovina – Summary of Main Findings 101 2389_Etd Western Balkans_EN 2/10/06 13:02 Page 6 Chapter III: Local Democracy in the Former Yugoslav Republic of Macedonia 103 1. Progress towards Decentralization 104 2. The Institutional Framework for Local Democracy 106 3. The procedural Functioning of Local Democracy 119 4. State Weakness in Macedonia 125 5. International Involvement in Macedonia 126 6. Ethnicity 129 7. Economic Transition and Consolidation in Macedonia 131 8. Corruption and Organized Crime in Macedonia 133 9. Conclusion: the State of Local Democracy in Macedonia – Summary of Main Findings 135 Chapter IV: Local Democracy in Serbia and Montenegro 137 1. Progress towards Decentralization 139 2. The Institutional Framework for Local Democracy 140 3. The Procedural Functioning of Local Democracy 165 4. Unresolved Status Issues in Serbia and Montenegro 174 5. State Weakness in Serbia and Montenegro 177 6. International Involvement in Serbia and Montenegro 178 7. Ethnicity in Serbia and Montenegro 182 8. Economic Transition and Consolidation in Serbia and Montenegro 185 9. Corruption and Organized Crime in Serbia and Montenegro 187 10. Local Democracy in Kosovo 190 11. Conclusion: the State of Local Democracy in Serbia and Montenegro – Summary of Main Findings 200 Conclusion: The State of Local Democracy in the Western Balkans 202 BIBLIOGRAPHY 205 ANNEXES 220 2389_Etd Western Balkans_EN 2/10/06 13:02 Page 7 Introduction DEMOCRATIZATION IN THE WESTERN BALKANS – TOWARDS A DEFINITION 1. Concepts of Democracy and Established Definitions of Democratization Democratization can be defined simply as the process through which democracy is established. There is a broad-ranging debate among academics and policy-makers as to what constitutes democracy and what its observable characteristics are. One of the influential definitions, now widely regarded as established, is given by Diamond, Linz and Lipset.1 It breaks down the concept into three verifiable features: 1/ “regular, free and fair elections”, through which individuals and organized groups compete for all positions of government power; 2/ a political process, which ensures the participation and non-exclusion of all social groups within a state, and 3/ high level of “civil and political liberties” – freedom of association, assembly and demonstrations, free press and speech.2 The process of post-Communist transition in Eastern Europe has led to an extension and clarification of the second aspect of the above definition in order to accommodate the efforts of institutional building and political re-adjustment needed for the establishment of democracy in the region. The focus has shifted to states’ institutional structure and democracy has become equated with “constitutionalism” – or the legal arrangements necessary to achieve political stability and an all-inclusive political process.3 Hence, all new democracies’ path of democratic development is measured by indicators relating to the strength and viability of official institutions established in order to guarantee an all-inclusive political process.4 1 Diamond, Linz, and Lipset, “Introduction: What Makes for Democracy?” in Diamond, Linz, and Lipset, eds. Politics in Developing Countries: Comparing Experiences with Democracy, (Boulder: Lynne Rienner, 1995), pp 6-7 2 Ibid. 3 Jakobsen, U., “Democratization in the Baltic Sea Region: a Conceptual View”, in Parfenova, G. and Martyniuk, S., (eds): The Baltic Sea Region: Towards Sustainability, Minsk: BUP-Center, Belarus, 2001, p. 5 4 Krastev, I., “The Balkans: Democracy Without Choices”, Journal of Democracy 13:3, 2002, pp 39- 53, p. 43 2389_Etd Western Balkans_EN 2/10/06 13:02 Page 8 2. Local Democracy: Definition and Indicators Following from the above definition of democratization and taking into account the procedural and
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