New “Yugoslavia” an economic free trade zone?
14 04 2006On April 4, 2006, representatives of six south-east European countries began discussions in Bucharest on the forming of a new free trade zone. The presidents of Serbia-Montenegro, Croatia, Bosnia-Hercegovina, Macedonia, Albania and Moldova initiated a process that would see the establishment of an economic bloc spanning the six nations by 2007. The territory includes all of the former Yugoslavia minus Slovenia, with the addition of Albania and Moldova. The proposal would extinguish customs charges and allow “free movement of work labour and products” (B92).
After a decade of bickering following Tito’s death in 1980, the republics of Yugoslavia went their separate ways. With the exception of Macedonia, the divorce was a messy, violent and utterly unneccessary display which regressed the population by decades, destroyed our respectable world image, and arguably destabilised the European Union itself through a conflict on its doorstep. Slovenia has since managed to recover almost completely, but the remaining five republics are still plagued by high unemployment, crime and a reduction in living standards. Destruction of war aside, part of the problem was the sudden severance of freedom of movement of people and goods, grinding the respective economies to a halt. The primary market for most republics were in fact other republics within the federation. Whitegoods from Slovenia were sold in Macedonia, fresh produce from Vojvodina (Serbia) reached markets in Croatia, raw materials from Kosovo were utilised in Bosnia - all without the hinderance of customs duties and border crossings. Similarly workers travelled freely, addressing imbalances in supply and demand. Once wars brought this to an end, the Yugoslav economies, which had exceeded those of many current EU members, collapsed.
For 15 years the countries of the Balkans decided to go it alone. Some have recovered more than others, but for the most part all are still to reach the degree of prosperity enjoyed during Yugoslavia’s heyday. One has to ask: was all this worth it? The Balkans has regressed while Europe has moved on. As the European Community grew into the European Union, bringing these countries closer, we pushed ourselves apart to our immense detriment. This new proposal reached in Bucharest last week is an opportunity for the former Yugoslavia (with the addition of our friends in Albania and Moldova) to recognise that cooperation and union is the only way forward, and than division belongs in the 20th century. Together we have always been stronger, and together we must be in the future.
Analysts in Zagreb have been quick to point out that the proposed free trade zone is not a revival of Yugoslavia. Lidija Cehuljic, political science professor at Zagreb University noted that despite the economic ties, there will be no political integration (B92). One only has to look at the final decade of Yugoslavia to realise that this will not be a tremendous change. Political infighting lead to the crippling of the Yugoslav presidency, and ultimately the country’s destruction. No one wishes for a return to this past, and after so many centuries of foreign occupation, all nations in the region deserve their own statehood. As the process of integration with the European Union continues, political integration will occur anyway, this time with the entire continent. Yugoslavia was born in 1918 out of this very realisation that cooperation is the key to success. While the experiment did not succeed in the short term, the citizens of the Balkans will one day be united under the umbrella of the EU.
If this proposal for a south-east European free trade zone succeeds, it has the potential to dramatically accelerate the recovery of the economies of the region. As people from around the free trade zone begin to work together once again, the healing of wounds will also accelerate. One of the tenets of the EU is the slogan “unity through diversity”. This is precisely the attitude we need if we wish to move on and come out of our self-imposed dark age.



