Military

DATE=11/14/00

TYPE=CORRESPONDENT REPORT

TITLE=BALKANS AID (L ONLY)

NUMBER=2-269225

BYLINE=BARRY WOOD

DATELINE=WASHINGTON

INTERNET=YES

CONTENT=

VOICED AT:

INTRO: There was discussion in Paris and Washington Tuesday about financial aid to the Balkans and specifically, Yugoslavia. V-O-A's Barry Wood reports post-Milosevic Yugoslavia is likely to receive its first infusion of multi-lateral assistance within the next two months.

TEXT: Officials from the major industrial countries, Russia, and international organizations agreed (in Paris) that substantial aid could begin to arrive in Yugoslavia early in the new year.

At a meeting in Paris, the finance officials expressed optimism that Yugoslavia could be readmitted to the International Monetary Fund by the end of the year. Membership in the World Bank and the European Bank for Reconstruction and Development would soon follow.

European Union countries say 400-million dollars of emergency energy and food assistance will arrive in Yugoslav towns within weeks. A U-S envoy says the American embassy in Belgrade may reopen by June and that 50-million dollars of U-S aid could arrive in the coming months. A conference on multi-lateral aid for Yugoslavia is being planned for the second week in December.

Here in Washington, representatives from aid organizations and several Balkan nations discussed ongoing aid programs for Southeastern Europe. Some officials complained about the slow pace of Stability Pact aid and expressed worry that aid intended for countries like Albania, Bosnia, or Bulgaria could be diverted to Yugoslavia.

Lajos Bokros, the former Hungarian central bank chief who heads a World Bank financial sector reform program, says it is essential that governments in the Balkans pursue the sound economic policies that will win confidence from local and foreign investors. Mr. Bokros says economic growth in the region must rise sharply if the widening income gap with Central Europe is to be narrowed.

/// BOKROS ACT ///

The per capita income level of the Balkans is falling behind not only Western Europe but also Central Europe, the so-called Luxembourg group of pre-EU accession countries. In Poland and Hungary, you had five plus percent growth for the past four years. In the Balkans, there is no country that could have reached that level. Therefore the gap is really widening. And that is very, very bad.

/// END ACT ///

Mr. Bokros says under the best case scenario, Bulgaria and Romania would join the European Union five years after the first round of E-U expansion takes place. Mr. Bokros has positive words for the rapid economic progress being made in Bulgaria and Croatia. He says the other countries must intensify their reform efforts in order not to fall further behind. (Signed)

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