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 European Union. 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 Cyprus 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.