2012 Newsleer Issue Number 3

Research on South Eastern Europe LSEE is part of the LSE’s European Instute, a Jean Monnet Centre of Excellence

inside this issue Welcome to our 2012 Newsleer, where you economic crisis in the region [see page 3]. can find informaon on our recent and LSEE provides a plaorm for new policy debates. forthcoming acvies. Editorial 1 We again collaborated with our partner ‐ The This last year has been a period of consolidaon Internaonal Centre for Black Sea Studies ‐ for Research Network on 2‐3 for LSEE, albeit with some important new their 4th and 5th internaonal symposium (see Social Cohesion iniaves to help us to beer reach our goals. page 10). We were pleased to host public Publicaons 3 LSEE exists to promote and coordinate research lectures ‐ such as Dr Borko Handjiski, Economist at the School on contemporary South East at the World Bank, Dr Peter Sanfey, Lead Research from LSEE 4‐5 Europe: the economy, society and polics of its Economist at the European Bank for constuent naons, both individually and as a Reconstrucon and Development (EBRD), and New Skills for New Jobs 5 region, especially in relaon to internaonal Professors Richard Caplan (Oxford) and Stefan in the Western Balkans actors such as the . As such, we Wolff (Birmingham). We welcomed Dr Milodrag Vising Speaker are both an agent of independent research and Katnic, the Finance Minister of Montenegro, for 6 Programme a plaorm for innovave policy discussion. a policy seminar. And our regular series of LSEE Vising Speakers comprised 8 sessions, covering Talks with Albanian Our ‘LSEE Research Network on Social Cohesion’ 7 the usual eclecc mix of policy issues [see page Polical Figures [see pages 2‐3] encapsulates this core mission. 6]. We were delighted to organise a launch Meengs with Serbian 7 conference for the Network at the School in Not neglecng the next generaon of scholars, & Bosnian MPs December 2011 and to collaborate with partners we again collaborated with our partners across Serbian Deputy Prime for a workshop in May in Belgrade. The the University of London for the second 8 Minister Lecture workshop focussed on ‘Skills and the Labour Internaonal PhD Symposium on South East Market in the Western Balkans’ and resulted in Europe. This was first launched at LSE in 2010 Montenegro Finance 8 a publicaon [see page 3]. In the same vein, we and this year’s event at Goldsmith’s College Minister Discussion have been pleased to partner the Regional connued its success [see page 11] with a series Kosovo Panel Debate 9 Cooperaon Council in promong debate on of vibrant panels. these key policy issues in two joint conferences South East Europe faces a number of important Obstacles to Western held in Sarajevo in October 2011 and July 2012 challenges, under‐scoring the importance and Balkan Trade 9 [see page 3]. in Services Panel relevance of LSEE both to the European Instute At the same me, LSEE’s academic staff has at the School and the wider public domain, both Conference on 10 produced a number of individual and combined at home and internaonally. We hope these research outputs on South East Europe. We pages will encourage you to join us in at least Internaonal Black Sea 10 have also welcomed papers wrien by visitors some of our endeavours in this regard. Symposia and associates establishing a growing body of

2nd Joint publicaons [see page 3]. LSEE’s flagship is our 11 PhD Symposium on SEE book series [‘New Perspecves on South East Professor Kevin Featherstone Europe’] with Palgrave Macmillan (London) in Professor evket Pamuk Film Screening & Ş 11 which the latest tle to be published is ‘Health Discussion LSEE Co‐Chairs Reforms in South East Europe’ [see page 3]. We Staff & Donors 12 can also highlight the latest LSEE Paper on the Page 2

Research Network on Social Cohesion Research on Social Cohesion and Social Inclusion in South East Europe

Aer a period of growth and recovery of the Research Network, which brings monetarism for the poor’. Insighul in the early and mid 2000’s the together more than thirty leading presentaons on labour markets and countries of South East Europe face a scholars from the region, the LSE and skills followed by Vjekoslav Domljan deteriorang social climate as a result research instuons in the EU. This was from Bosnia, Maja Gerovska from followed by a Macedonia and Bozidar Sisevic from presentaon from Jelena Montenegro. Jakulj and Frederique On the second day, aenon turned to Rychener on the work of pension reforms and social security DG Enlargement in which were discussed by Professor supporng labour market Merita Xhumari and Enkeleida Tahiraj policy in the Western from Albania. Health sector reforms Balkans. Thomas de were analysed by Will Bartle, and by Bethune from DG Sandra Svaljek, Director of the Instute Enlargement presented of Economics in Zagreb. The issue of the role of the Western informal sector was discussed by Balkan Investment Professor Jovan Pejkovski from Framework in financing Macedonia while Ardiana Gashi social infrastructure and analysed the social situaon in Kosovo. From le to right: Emina Kadric of the The conference concluded with a round Will Bartle, Kevin Featherstone & Vassilis Monasrios Brussels‐based IFI table discussion led by Emina Kadric Coordinaon Office and Frederique Rychener which of spill‐over effects from the combined discussed the role of the Western debated the key issues for social effects of the global economic crisis Balkan Investment Framework in cohesion in the region, including the and the crisis in the euro zone. They supporng the development of social large inacve labour force, ways to now face a protracted period of fiscal infrastructure, the work of austerity and slow economic growth the Council of Europe leading to deepening social exclusion Development Bank in and increasing levels of unemployment, supporng housing, job poverty and inequality. In a context of creaon and social insecure statehood of several infrastructure for refugees countries, widespread informal and displaced persons and economies and organised crime and the work of the Regional oen weak state administraons at Cooperaon Council in both central and local levels, all this pursuing a Social Agenda raises concerns for the future stability for the region. Debate of the region. In this context, the LSEE focused on ways in which Research Network on Social Cohesion the EU 2020 programme was established in 2011 to coordinate targets should be adapted and encourage research on these to the more challenging From le to right: issues. condions in the Western Mihail Arandarenko, Will Bartle & Milica Uvalic The launch conference of the LSEE Balkans. Research Network was held at LSE in The second part of the conference was smulate growth and overcome skill December 2011 with the generous devoted to presentaons of on‐going gaps and mismatches, the transion support of DG Enlargement and the IFI research by members of the research from school to work and the reducon Coordinaon Office in Brussels. Its network. Professor Milica Uvalic from of unemployment, the informal sector, theme was the social impact of the the University of Perugia analysed the and poverty. The discussion generated economic crisis in the region. The first damage done to employment from the enthusiasm for regional research session, chaired by Mary O’Mahony collapse in external demand and credit projects on these issues that could be from the IFI Coordinaon Office in inflows. Professor Mihail Arandarenko of value to internaonal and domesc Brussels was devoted to the role of the of the Belgrade Faculty of Economics policy makers struggling to overcome LSEE Research Network in contribung idenfied likely winners and losers the on‐going impact of the crisis in the to the social agenda for South East from a generic ‘new growth model’ face of rising unemployment and Europe. Will Bartle of LSEE opened which he characterised as stagnang economic performance  the session with a review of the acvity ‘Keynesianism for the rich and Page 3

Research Network on Social Cohesion more news...

The second major event was a Advancement of Economics (FREN) Sarajevo in October 2011. A selecon Research Workshop on Skills and the based at the Faculty of Economics in of the papers is to be published as a Labour Market held in Belgrade in Belgrade. Some of the papers were joint publicaon of FREN and LSEE, following revisions reflecng comments and discussion at the workshop. The revised papers were made available at the recent May 2012 as a collaborave acvity based on presentaons that network conference of the Regional between the LSEE Research Network members had made at a conference of Cooperaon Council on skills and jobs and the Foundaon for the the Regional Cooperaon Council in in Sarajevo on 12‐13 July 

LSEE Paper Series Publications hp://www2.lse.ac.uk/european Instute/research/LSEE/Publica LSEE Paper Series ‐ ISSUE 4 ons/LSEE_Papers.aspx ‘The Variable Impact of the Global Economic Crisis in SEE’

The fourth Issue of the LSEE paper during the transion period have measured through the quality of series by Will Bartle and Ivana Prica, enabled countries to cope with governance. studies the external shocks such as those The paper asks whether countries variable associated with the recent global with a more flexible economy due to impact of economic crisis. The transmission faster progress with transion reforms the global mechanisms of the crisis to the region were beer able to adjust to the economic are idenfied as contracons of credit, impact of external shocks. It concludes crisis on foreign direct investment, that the variable impact of the global the remiances, and exports, and their crisis in the region can be explained countries variable impact across countries is mainly by their degree of integraon of South assessed. Several types of instuons into the global economy and that the East are examined, including the degree to instuonal reforms that were Europe. which countries have adopted the introduced during the boom mes The central acquis communautaire, determined have made countries more integrated queson is by the extent of their EU integraon, into the global economy and therefore whether progress with transion, and the more vulnerable to the impact of the the instuonal reforms introduced broad instuonal environment global economic crisis 

Palgrave Macmillan Series LSEE and Palgrave Macmillan Book Series hp://www.palgrave.com/produ ‘Health Reforms in South East Europe’ cts/tle.aspx?pid=504227 Over the last two decades, the been sorely lacking so far. This book countries of South East Europe have addresses this shortage through the engaged in far‐reaching reforms of analysis of key aspects of health Croaa, Macedonia, Montenegro, their health systems, including reforms in South East Europe, Romania, Serbia and Slovenia. The reforms of primary and secondary including primary health care, hospital book will be of interest to a range of health care, new governance and care, health financing, audiences, including researchers, funding arrangements, the decentralizaon and the internal and medical praconers and privazaon of health care provision, internaonal migraon of health policy‐makers. The book is and the introducon of health workers. It provides a comparave to be published in August insurance systems. However, analysis of health reforms and health 2012. comparave overviews of reform workforce mobility in the region, and Series Chief Editor: efforts in this part of Europe have includes contribuons from Bulgaria, Dr Spyros Economides  Page 4

Internaonal Relaons with that prevalent in EU studies, especially in relaon to condionality and enlargement. This research is as much Research from LSEE Staff about development in EU foreign policy, as it is about the Western Balkans. This research has resulted in Will Bartle perspecve the role of transnaonal two chapters in edited volumes ‘My recent research has focused on networks related to criminalised war (Hurst&Co, and Routledge), and forms two main areas. The first has been the economy in post‐conflict the core of a research arcle currently economic and social impact of the reconstrucon and the implicaons for under revision for submission to an global economic crisis on the SEE internaonal aid. A report on the internaonal journal. The second area region. The second has been research Networks of Regressive Globalisaon of research pursued in the last year on unemployment and skills mismatch and the Implicaons for Internaonal concentrates on an issue within the EU‐ on the labour market. The global Aid, completed in May 2012, will be Western Balkans relaonship, namely economic crisis has had a severe published jointly by LSE and Agençe that of the status and future of Kosovo. impact on the countries of South East Francaise de Dévelopment. I intend to This builds on previous research and Europe, resulng in a deteriorang connue the work on the polical publicaon on this topic and has social situaon and increasing polical economy of transion in post‐ resulted in a jointly authored risks; in Serbia, unemployment has totalitarian and post‐conflict sociees publicaon (with Dr James Ker‐Lindsay) increased to over 25%, while in Croaa within the framework of the five‐year in an internaonal journal as well as a internaonal debt has increased to DfID funded programme on Jusce and more policy‐oriented arcle.’ unsustainable levels amid connuing Security in Conflict‐Affected recession. Despite a shallow recovery in Places starng in July 2012. This 2011, the intensificaon of the crisis in programme will provide an the euro zone has once again plunged opportunity to expand the the region into recession. Research on comparave work on these this theme develops a theorecal issues including several regions framework that disnguishes between in Central and Eastern Africa. the EU peripheral countries and the The two co‐authored arcles ‐ countries of the ‘super‐periphery’ on on the obstacles to state‐ the edge of the EU. The research is building in Bosnia‐Herzegovina partly funded through an FP7 project in the context of on economic and social development in Europeanisaon, and on human the Western Balkans and EU Eastern security in Kosovo are in the Partnership countries. The second revise and resubmit phase for research theme, I carried out within the two internaonal journals. Research James Ker‐Lindsay framework of the LSEE Research into policy making process in the ‘Over the past year, my main focus of Network on Social Cohesion, has Western Balkans explores across aenon has been on the queson of progressed through close links with the different policy areas and countries the recognion in internaonal polics. Regional Cooperaon Council in actors, networks and coalions driving This is a field that has generally Sarajevo. Collaboraon with the FREN the agenda for reform in the context of received very lile aenon from think tank in Belgrade has led to a European Union accession; the results scholars working in the fields of polics research workshop and book will be published in a book by Springer. and internaonal relaons, and yet is a publicaon on jobs and skills in the A paper exploring the decentralisaon subject that is becoming increasingly Western Balkans, while a newly‐won and regionalisaon processes in Bosnia interesng and important. In parcular, research project on the relaonship ‐Herzegovina is forthcoming as a I have been working on a major study between vocaonal educaon and chapter in an edited volume published of the ways in which states try to training policies and social inclusion in by Palgrave Macmillan.’ prevent the recognion of secessionist

nine countries of the region is funded territories; the first study of its kind. Spyros Economides through the European Training Concentrang on the cases of Cyprus, Foundaon, a decentralised agency of ‘In the last year my work on SEE has Serbia and Georgia, the book will the EU.’ connued to focus on the relaonship explain and analyse the various between the EU and the countries of diplomac and legal strategies adopted Vesna Bojicic‐Dzelilovic the region and more specifically the by the three countries as they aempt ‘My research focuses on the role of Western Balkans. Within this subject to prevent Kosovo, South Ossea, informal power structures in post‐ maer I have concentrated on EU state Abkhazia and the ‘Turkish Republic of conflict reconstrucon, the polical ‐building in the Western Balkans with Northern Cyprus’ from being economy of policy making and specific reference to the noons of recognised by other countries or decentralisaon and regional democrasaon, Europeanisaon, and admied into various internaonal development in the Western Balkans. transformaon. Within this I compare organisaons, including internaonal The research on informal power the literature on state‐building financial instuons and sporng emanang from the discipline of structures explores in comparave bodies… Page 5

… more research from LSEE Staff

… Looking ahead, I hope to connue paper examining the evoluon and Vising Fellow at LSEE for the Academic my work in this area by exploring other scale of regional disparies in Serbia Year 2011‐12. My me at LSEE was theorecal, conceptual and, most and Bulgaria is forthcoming in a book used to complete my latest project, a importantly, praccal aspects of on Decentralisaon and Regional co‐authored book with Elizabeth recognion ‐ especially as it relates to Development (Palgrave), while another Roberts entled 'The Sandzak: A deep‐rooted ethnic conflicts. The paper on Serbia, looking at the impact History'. The book, the first detailed Foreign Policy of Counter‐Secession: of decentralisaon on inter‐municipal history of the area in the English Prevenng the Recognion of compeon is under review in an language, will be published by Hurst & Contested States will be published by internaonal journal, as is a more Co, London, in December 2012. I also Oxford University Press in October theory‐oriented paper on the nature of connued to work on the modern 2012’ regional disparies under transion history of Montenegro. Following the (regional transion curve). Besides publicaon of my LSEE paper, 'Change, Vassilis Monasrios these, work is also underway on three Connuity and Consolidaon: Assessing ‘In the last year my research has externally funded projects on the Five Years of Montenegro's focused on regional economic issues, in impact of economic integraon on intra Independence', I have completed a , South East Europe and beyond. ‐country disparies (European chapter on Montenegro for Charles A new piece on the impact of flexible Commission FP7), on the link between Ingrao & Thomas Emmert's employment on cross‐regional spaal associaon and economic 'Confronng the Yugoslav adjustment (hp://to.ly/dX0X) was connectedness (Brish Academy) and Controversies: A Scholars' Iniave', completed in late 2011 and is currently on the effecveness of Cohesion Policy the second edion (including my under review in an internaonal (DG Region). A new project looking at chapter) of which will be published by journal. A paper on the geographical the local wage spill‐over effects of Purdue University Press in September allocaon of public investment in public‐sector employment (with 2012’  Greece has been accepted for empirical analyses for Serbia, Greece publicaon at European Urban and and the UK) is also starng in Research Pages Regional Studies (hp://to.ly/dX19), September.’ while one on the geographical impact hp://www2.lse.ac.uk/europe of the austerity measures in Greece Kenneth Morrison anInstute/research/LSEE/Res was published in the Cambridge Journal ‘I am a Senior Lecturer at De Monort earch/LSEE_Research.aspx of Regions, Economy and Society in University, Leicester and also a Senior November 2011 (hp://to.ly/dX14). A

New Skills for New Jobs in the Western Balkans

LSEE parcipated in a two‐day labour market in their efforts to Training Foundaon (a decentralised conference on the theme of skills and ancipate skills needs, generate new Agency of the EU) and the South East jobs organised by the Regional jobs and improve the matching Europe Centre for Entrepreneurial Cooperaon Council and the Friedrich process. The target group for the Learning based in Zagreb. Jan Ebert Foundaon in Sarajevo from 27‐ conference was naonal government Rutkowski, Lead Economist at the 28 October 2011. ministries, public employment World Bank, presented the Bank’s The conference discussed the issue of services, social partners and regional recently published flagship report on organizaons. LSEE’s Senior Research ‘Skills, Not Just Fellow, Will Bartle, gave a keynote Diplomas’. lecture on ‘Challenges and priories A round table for skills gap analyses in the Western of Balkans’. A special session of the presentaons conference was dedicated to by civil presentaons of papers by members servants, trade of the LSEE Research Network on unionists and labour market imbalances in the Social Cohesion, which included six employers’ organisaons contributed Western Balkan countries focusing on papers by members of the network to the depth of the discussion and skills gaps and mismatches, a crical from Bosnia and Herzegovina, Croaa, facilitated a valuable and producve issue for economic compeveness Macedonia, Montenegro and Serbia. interchange between research and and future economic growth and Addional presentaons were made policy. A follow up conference on the prosperity in the region. It addressed by researchers from the Internaonal same theme was held the role of key stakeholders in the Labour Organisaon, the European in July 12‐13  Page 6

Vising Speaker Programme Page

hp://www2.lse.ac.uk/europea nInstute/research/LSEE/Event Visiting Speaker Programme s/researchSeminars/Home.aspx A series of research and policy seminars

This year saw the connuaon of the LSEE Vising Speaker Programme. Building on the excellent range of contribuons the year before, the series once again resulted in a wide variety of topics. The year started with a lecture by Professor Richard Caplan (Oxford) (photos‐1&5), who spoke about exit strategies from the Balkans to 2 3 4 Afghanistan. Arranged as a joint event with the Department of Government’s presented a paper on the polical final speaker of the 2011‐2012 Conflict Research Group, the event economy of state building in Kosovo. programme was Aidan Hehir The final speaker of the Michaelmas (Westminster), who outlined a number term was Radu Cinpoes (Kingston), of problems relang to decentralisaon who spoke about Romanian migrants in in Kosovo. Britain. Over the course of the year, we were The Lent term started with a talk by delighted to welcome a number of Professor Stefan Wolff (Birmingham) familiar faces to the events, as well as (photo‐2) on efforts to resolve the many new ones. longstanding conflict over Transnistria. In addion to LSE staff and students, This was followed by Fikret Causević the events were aended by colleagues (Oxford), who from other spoke on academic economic instuons as liberalisaon well as in the Western journalists, Balkans. The government third speaker officials, of the term diplomats and 1 was Stefanos members of Katsikas the general aracted considerable interest, (Goldsmiths), public with an especially given the recent conflict in who used the interest in the Libya. Following on from this, Jelena occasion to 5 region. Obradović‐Wochnik (Aston) (photo‐4) launch his new

spoke about war crimes and coming to book, Negoang Diplomacy in the terms with the past in Serbia and New Europe: Foreign Policy in Post‐ Podcasts from many of the talks are  Dominik Zaum (Reading) (photo‐3) Communist Bulgaria (I.B.Tauris). The available at the LSEE website

2012‐13 Academic Year

Planning is currently underway for next year's Vising Speaker Programme. Confirmed speakers include Steven Blockmans (Leuven and CEPS), Max Watson (University of Oxford ), Damiana Otoiu (University of Bucharest and LSEE), Philip Cunliffe (University of Kent), Marko Milanović (University of Nongham), Jelena Lausev (University of Belgrade and LSEE), Gemma Collantes‐Celador (City University), Jasna Dragović‐Soso (Goldsmiths), Vanessa Pupavac (University of Nongham) and Soeren Keil (Canterbury Christ Church University). We also hope to be able to circulate details of a number of other events in the months ahead.

Unless otherwise stated, all Seminars take place in the Cañada Blanch Room (COW 1.11), Cowdray House, Portugal Street, LSE at 18:00 Page 7

Talks with Albanian Political Figures Fatos Nano, former Prime Minister of Albania Edi Rama, former Mayor of Tirana & Leader of Albanian Socialist Opposion

This year LSEE welcomed two of facing the country. quesons about healthcare reform, a Albania’s most prominent polical The visit was parcularly major project in the country, he was figures. significant inasmuch as it On 9 December 2011, we hosted a is widely believed that Mr roundtable discussion with Fatos Nano, Nano will stand for the the former Prime Minister of Albania presidency of Albania in and former leader of the Socialist Party 2012. of Albania. Followed on from the visit by Fatos Nano, on 26 March 2012, LSEE, in conjuncon with the Department for Social Policy, hosted a public lecture by Edi Rama, the current leader of the Socialist Party and the From le to right: former Mayor of Tirana. Erion Veliaj, Edi Rama & Arjan Gjonca Speaking to a large audience of students and members of asked about the measures that he the Albanian community in London, he would introduce to reform the tax outlined what he saw as the key system and tackle the problem of priories for Albania. He also noted corrupon. Fatos Nano that he was seeking to learn how other Although the debate was dominated by countries had approached key policy domesc maers, there were also a Speaking before an invited audience of issues and that during his trip to Britain regional specialists, Mr Nano gave his few quesons on foreign policy, he had met with a number of leading including Kosovo. Both events were insights into a number of key figures from the Brish Labour Party. developments taking place in Albania, kindly co‐ordinated and chaired by and outlined some of his ideas as to At the end of his presentaon, there Arjan Gjonca  how to address a number of current was a lengthy, and spirited, queson economic, polical and social problems and answer session. As well as LSEE Events Page

hp://www2.lse.ac.uk/europea nInstute/research/LSEE/Event s/Past‐Events.aspx Meetings with Serbian & Bosnian MPs

LSEE was delighted to welcome two from Bosnia‐Herzegovina and In the case of the Serbian delegaon, delegaons of regional consisted of Halid Genjac (Party of the main focus was on the forthcoming parliamentarians to the School in the Democrac Acon), Nermina parliamentary and presidenal first half of 2012. Both groups were in Ćemalović (Social Democrac Party), elecons. the United Kingdom as guests of the Dragan Vrankić (Croaan Democrac In contrast, the conversaon with the Brish Group of the Inter‐ Union of Bosnia and Herzegovina) and Bosnian group was predominantly Parliamentary Union. Borislav Bojić (Serb Democrac Party). centred on the economic situaon in The first delegaon, which came in Given the widely differing polical the country; although March, was from Serbia and consisted perspecves of the members of the the on‐going polical of Nada Kolundžija (Democrac Party), two groups, on both occasions there difficules in the Željko Tomić (Democrac Party of was a lively discussion about a range of country also featured Serbia) and Vesna Pešić, an current economic, polical and social heavily  independent MP. The second group, issues. which came at the end of June, were Page 8

Serbia and the Western Balkans: Economic Challenges, European Perspectives Božidar Djelić, Deputy Prime Minister of Serbia

On 7 November 2011, LSEE hosted Prime Minister and Minister for decentralisaon. As was pointed out, a lecture by Božidar Djelić, the Deputy European Integraon of Serbia. Held at the latest census figures have revealed a me when Serbia was busy pressing that the populaon is declining across its case to be accepted as a candidate much of Serbia. In response, the for membership of the European Minister described various steps being Union, the talk aracted considerable taken to try to regenerate areas interest. In his presentaon, which was outside of Belgrade and Novi Sad and held in the Shaw Library, the Minister persuade businesses, both domesc outlined the significant progress made and foreign, to invest more widely. by Serbia in the decade since the fall of Another queson related to efforts to Slobodan Milošević. encourage expatriate Serbs to return Although he acknowledged that much home ‐ a key issue for many of the sll remained to be done, he Serbian students aending the lecture. nevertheless stressed that on the basis While again acknowledging that the of the work done so far Serbia situaon needed to improve, he deserved to be granted candidacy. At stressed that Serbia was keen to the end of his lecture, the Minister encourage people to return and fielded quesons on a wide range of channel their experience and experse issues. towards developing the country further From le to right: ‐ especially as it pursues European Božidar Djelić & James Ker‐Lindsay In addion to the Kosovo issue, another major topic was integraon 

Policy Discussion Milodrag Katnić, Finance Minister of Montenegro

LSEE welcomed Milodrag Katnić, the on ‘Public Consumpon and Finance Minister of Montenegro who Economic Growth’ in 2010. He has made a presentaon at a policy served as the head of the working seminar at LSEE on 10 October 2011. group for negoaons on accession Dr Katnić is a graduate of the University of Montenegro to the European of Montenegro’s School of Economics Union in charge of economic and where he studied entrepreneurship financial issues and stascs. While A full Cañada Blanch Room and entrepreneurial finance aer which working on the negoang team for he obtained a Master's Degree on the accession of Montenegro to the public debt analysis in 2005 and a Ph.D. World Trade Organizaon, he was in the government’s budget deficit. The charge of the financial and service government now aims to reduce the area secon unl Montenegro deficit by cung public expenditure became a WTO member in 2011. with a long‐term goal of maintaining In his talk, Minister Katnić presented government expenditure below 40% of an overview of the current issues GDP and promong the private facing Montenegrin economy and enterprise economy. Other priories of the government’s response to the the government include expenditure effects of the global economic crisis, on infrastructure investments, which hit Montenegro parcularly aracon of foreign investment and hard in 2009. The resulng promoon of tourism. His presentaon From le to right: recession resulted in a reducon in was followed by a lively debate with Will Bartle & Milodrag Katnić tax revenues and a large increase in the audience  Page 9

Panel Debate Challenges of Economic Development in Kosovo: Between Corrupon and Instuon Building

The queson of economic development such instuonal development had In his talk he explained how, since 1999 in Kosovo was the subject of a panel been hindered by historical factors, and the economic development of Kosovo debate organised by LSEE, on 13 March connued to be hindered by problems had been in the hands of UN and EU 2012. such as corrupon, the connued administrators and that even aer the The event opened with a presentaon existence of informal networks and the declaraon of independence, in 2008, a by Iraj Hashi (photo‐1), Professor of uneven applicaon of the rule of law. handful of key countries, led by the Economics at Staffordshire University, The second speaker of the evening was United States, connued to play a key Avni Zogjani (photo‐2) the founder of role in Kosovo through their Embassies the Organisaon for Democracy in Prisna. As a result, they must also Ancorrupon and Dignity (ÇOHU!), a bear responsibility for the poor leading Kosovo NGO working in the economic situaon in Kosovo today. field of economic development. Having priorised stability over development, they have failed to build the strong instuons Kosovo needs, and have failed to tackle the 1 widespread corrupon in Kosovo. The Debate was co‐organised with the in which he outlined the paerns of LSE Student Union Albanian Society  instuonal development in Kosovo and explained the link between effecve instuons and economic development. In the case of Kosovo, 2 LSEE Events Page

hp://www2.lse.ac.uk/europea nInstute/research/LSEE/Event s/Past‐Events.aspx Panel Lecture Obstacles to Western Balkan Trade in Services

In October 2011 LSEE organised a European Bank for Reconstrucon and Sanfey and Ivana Prica partly panel debate on the subtle but Development (EBRD), and Dr Ivana responded to this, but also added increasingly important issue of Trade in Prica, Assistant Professor at the Faculty further dimensions to the issue. Peter Services in the Western Balkans. We of Economics, University of Belgrade. Sanfey’s presentaon looked more at the role that trade integraon more had the The debate generally can play for economic pleasure to kicked‐off recovery and growth, especially aer welcome with a short the global and Eurozone crisis. In turn, from presentaon Ivana Prica looked more specifically at Washington on the recent the domesc level and highlighted a DC Dr Borko World Bank number of challenges to trade Handjiski, study on integraon and market liberalisaon in Economist at ‘Barriers to the region as well as the potenal the World trade in social and economic costs that may be Bank and services in the associated to these processes. author of a CEFTA region’, number of From le to right: a study that An interested debate reports and Vassilis Monasrios, Borko Handjiski & Ivana Prica forcefully calls followed with students studies on for deeper and academic experts Regional Trade in South East Europe, trade integraon in the region and from the audience  who was joined in the panel by Dr further liberalisaon in the Trade in Peter Sanfey, Lead Economist at the Services. The presentaons by Peter Page 10

One‐day Conference on Cyprus The Cyprus Economy at a Time of European Uncertainty: Managing Reform and Sustainability

On 10 February 2012, the School The event opened with a keynote draw on human capital, such as hosted a major one day conference on address by Mrs Praxoula Antoniadou‐ tourism, educaon, medical services the Cyprus economy. Kyriacou (photo‐1) the Minister for and business services. At the same Co‐organised by LSEE and the Hellenic Commerce, Industry and Tourism. me, the discovery of energy resources Observatory ‐ with generous support Acknowledging the significant gave grounds for opmism for the from Deloie Cyprus, Marfin Popular challenges facing the Cypriot economy future. Bank and the Naonal Bank of Greece ‐ as a result of the crisis in the Eurozone, The rest of the day was arranged around three plenary sessions covering the themes of ‘Macroeconomic challenges’, ‘Finance and Banking’ and ‘Tourism and Energy’. During these sessions, a wide range of subjects were covered, including the shape of the banking sector, labour market reforms, the likely impact demographic changes and the queson of how to manage energy revenues. The conference concluded with a lively round‐table discussion, which was chaired by Professor Chris Pissarides ‐ 2010 Nobel Memorial Prize Winner (photo‐2)  1 2

she nevertheless noted that Cyprus ‘The Cyprus Economy at a Time of Conference page European Uncertainty: Managing stood to benefit from its geographic posion on the edge of Europe, which Reform and Sustainability’ was the first hp://www2.lse.ac.uk/europeanIn major conference outside of Cyprus to means that it is close to countries that stute/research/hellenicObservato examine the effects of the European are growing economically. Looking ry/Events/Conferences/Cyprus_Co economic crisis on the island. ahead, emphasis should be placed on nference_2012_Gallery.aspx developing those sectors that could

International Black Sea Symposia

For the second year running, LSEE and, more recently, LSEE. West: A path towards extroversion’. academics have parcipated in the The 4th Symposium took place in LSEE was represented by Dr Will Internaonal Black Sea Symposium, an Vouliagmeni, Greece in September Bartle, who gave a presentaon on annual conference organised by the 2011 under the theme ‘The Black Sea ‘Economic and Social Development in Internaonal Center for Black Sea Region in Transion: New Challenges the Black Sea area: EU policies and Studies (ICBSS), the Research & and Concepts’. Dr Vassilis Monasrios instruments’, part of his work Training affiliate of the Organisaon of parcipated as moderator in the conducted under the auspices of the the Black Sea Economic Cooperaon training sessions of the Symposium and SEARCH FP7 project. As with previous (BSEC). gave a presentaon on ‘Growth models years, the Symposium aracted a The Symposium, which brings together and development trajectories: selected number of parcipants who academics, praconers, young discussing alternave drivers to growth had the chance to discuss extensively professionals and policy‐makers from from the Eastern European on important issues for the Black Sea across the Black Sea region for an experience’. region, including issues of intensive one‐week interacon and The 5th Symposium took place in July environmental sustainability, energy deliberaon on topical issues 2012 in Athens, Greece, under the security, conflict resoluon, regional concerning the region, was established theme ‘The Black Sea region as an cooperaon (with a special theme this in 2008 and since 2009 has received influenal crossroad between East and year on ‘science, technology and the support of the Hellenic Observatory innovaon’) and EU relaons  Page 11

2nd Joint PhD Symposium on SEE

On Monday, 18 June 2012, Goldsmiths, symposium, the event was specifically challenges, far right polics, religion University of London hosted the 2nd designed to bring together emerging and culture, crime and corrupon, Joint PhD Symposium on South East scholars working on the Europe. region across a wide variety Following on from the first conference, of disciplines in the social which was hosted by LSEE, in June sciences and humanies. 2010, the event was once again a joint Contribuons therefore iniave between LSEE‐Research on came from history, polics, South East Europe (London School of economics, internaonal relaons, European studies, sociology, law, anthropology and cultural studies. Yet again, the event proved to be extremely popular. The parcipants of the Symposium This me it exchanging ideas during a break aracted over 50 speakers from across the United minories and migraon, foreign Kingdom, Europe and North policy, civil society, gender, naonalism America. and conflict. Chaired by staff from the three The next symposium will be hosted by The parcipants instuons, as well as other SSEES‐UCL in 2014  in one of the Symposium Sessions leading regional scholars, the

day was organised into four Economics), the Centre for the Study of sessions (two in the morning and two Symposium page the Balkans (Goldsmiths), and the in the aernoon), each of which were Centre for South‐East European Studies divided into four parallel panels. These hp://www.gold.ac.uk/csb/ne (School of Slavonic and East European panels covered an extensive variety of wsandevents/eventle,31202 Studies, University College London). subjects, such as instuonal ,en.php As was the case with the previous development, regional economic

Film Screening & Discussion On 23 November 2011, LSEE jointly During their travels, the two organised a screening of the acclaimed protagonists stop to speak with documentary, ‘The Long Road through prominent figures from the region and Balkan History’. Held in conjuncon visit important historical sites as they with the Centre for the Study of the seek to understand the break up of Balkans at Goldsmiths, University of Yugoslavia. A journey through the past, London, the event was a joint iniave present and future, the film has been of the Embassies of Slovenia and Serbia called the ulmate Balkan road movie. in London, who also generously At the end of the film, we were pleased sponsored the evening. to welcome Dušan Gajić, the producer Crically acclaimed, the film charts the of the film, on stage to talk about the journey of the two writers ‐ Miljenko origins and development of the film Jergović, a Croat, and Marko and answer quesons from the large Vidojković, a Serb ‐ as they drive a Yugo audience who came for the screening. along the more than 700 mile‐long The evening ended with a wine road once known as the ‘Highway of recepon, during which the lively Brotherhood and Unity’. debate and discussion connued  Page 12

Who’s Who

Professor Kevin Featherstone Dr Spyros Economides Dr Vesna Bojicic‐Dzelilovic European Instute Head; LSEE Co‐ordinator; Senior Research Fellow, Department LSEE Co‐Chair; Hellenic Observatory Deputy Director; of International Development Hellenic Observatory Director; Senior Lecturer in International Eleherios Venizelos Professor of Relations and European Politics Dr Claire Gordon Contemporary Greek Studies & European Institute Teaching Fellow in Professor of European Polics Dr James Ker‐Lindsay East European Politics

LSEE Public Events UK Co‐ordinator; Professor Şevket Pamuk Ms Ismini Demades Eurobank EFG Senior Fellow in the LSEE & Hellenic Observatory Manager LSEE Co‐Chair; Chair of Contemporary Politics of South Eastern Europe Turkish Studies Programme Ms Ioanna Antonopoulou Dr Will Bartle Temporary LSEE Administrator & Dr Vassilis Monasrios LSEE Research Grants and Networks Hellenic Observatory Administrator LSEE Acting Director; Co‐ordinator; Senior Research Fellow Senior Lecturer in the Political in the Political Economy of South Mr Helios Reveli Economy of South Eastern Europe Project Support Assistant Eastern Europe

LSEE ‐ Research on South Eastern Europe European Instute, LSE Houghton Street, London WC2A 2AE

Tel: +44(0)20 7955 7198 Email: [email protected]

Website: hp://www2.lse.ac.uk/europeanInstute/research/LSEE/Home.aspx Facebook page: www.facebook.com/LseeResearchOnSouthEasternEurope Twier account: hps://twier.com/LSEE_LSE

Research Associates Visiting Fellows Adam Fagan 2011‐12 Professor of Polics, Queen Mary, University of London Jelena Lausev Umut Özkırımlı Assistant Professor of Economics Professor of Polics & Director of Turkish‐Greek University of Belgrade Studies, Istanbul Bilgi University Kenneth Morrison Senior Lecturer in Modern European History De Monort University Donors Aleksandra Nojković We would like to record our gratude to: Assistant Professor of Economics University of Belgrade Eurobank EFG

Hellenic Petroleum S.A. 2012‐13 John S. Latsis Public Benefit Foundaon Damiana Otoiu Naonal Bank of Greece IICCMRE; Polical Science Department University of Bucharest Viohalco S.A.

LSEE is part of the LSE’s European Instute, a Jean Monnet Centre of Excellence