NATO Economic Colloquium 1997

Black Sea Economic Cooperation: A Test Case Dr. Ercan zer Directorate General for Multilateral Economic Relations, Ministry of Foreign Affairs, Ankara, Turkey Introduction The Black Sea Economic Cooperation (BSEC) is an idea which found its right timing and milieu in 1992. The amount of enthusiasm it has since generated attests to this. Turkey introduced the idea of a new model of multilateral economic cooperation in the Black Sea region when a series of unprecedented and historic developments were taking place in Central and Eastern Europe. The radical changes in the region and in the World set the scene for the BSEC, and for Turkey as the regional economic hub to initiate it. In other words, the BSEC was a mandate entrusted by history to Turkey and to the countries of the region.

Setting Owing to its suitable geographical location, the region could be integrated with relative ease into the markets of Europe, Central Asia and the Middle East. Regarding politics, the Black Sea region has been the scene of tensions, disputes and confrontations in the past, but now welcomes political changes that open up new opportunities for cooperation. The end of the Cold War has given way to a new economic order and more open democratic systems. The economic setting comprises a set of complex factors such as revolutionary progress in communications and information technologies; increased mobility of individuals, goods, services, and capital; diffusion of modern technology; and the globalisation of markets. These have all yielded greater interdependence and created more production, investment, trade, technology transfer and financial opportunities for cooperation. Finally, the cultural setting of historical familiarity, cultural affinity and linguistic similarity is conducive to mutual dialogue. Conceptualisation In conceptualising the BSEC, Turkey was inspired mainly by the dynamics of the rapid process of global transformation which paved the way for a trend of neo-regionalisation, shifting the attention from national strategies to regional concepts. Within this context, Turkey felt the need to contribute to the acceleration of the political and economic transformation taking place in its proximity and came forth with the concept of the BSEC at the end of 1990. The initial initiative elicited a favourable response from neighbouring countries. Following high level consultations, a series of meetings at expert level were held to draft a document determining the framework conditions of such a regional cooperation. Agreement was reached on the text of the Declaration of the BSEC at the meeting of Deputy Foreign Ministers held in July 1991 in Moscow. This text was later initialled by Foreign Ministers on 3 February 1992 in Istanbul. The formal start to the BSEC process was given by the heads of state and government of the 11 participating states on 25 June 1992 at a summit meeting in Istanbul by signing the "Summit Declaration on the Black Sea Economic Cooperation". The BSEC train, the private sector as its engine and the creativity and dynamism of private entrepreneurship as its fuel, left the station. The wagons of the train were Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey and Ukraine. On 10 December 1992 Poland, and on 17 June 1993 Tunisia joined the BSEC train as observers. These were later followed by Egypt, Israel, the Slovak Republic and two members of the European Union, Italy and Austria. The BSEC Council (which represents the business communities of the participating states) and the Varna based International Black Sea Club were also granted observer status on 10 December 1992 and on 9 December 1993 respectively. The conception of the BSEC envisages the promotion of an environment conducive to improving and enhancing the economic, technological and social process of participating states and the region with particular emphasis on the encouragement of free enterprise. The promotion of such an environment depends largely on the collective and individual efforts of the countries involved and their private sectors. Such a concept is one that envisions a multilateral economic structure driven by the dynamism and initiative of the private sector. Hence, stimulus is needed to encourage and create a suitable milieu for individual enterprises. The role of government is to facilitate the efforts of the private sector by creating favourable economic, commercial, legal and fiscal conditions. In sum, the aim is to improve the business environment. The governments will undertake and implement joint projects directed at the development of regional infrastructures with the direct participation of the private sector to this end. Approach The BSEC approach is a major departure from the earlier static, inward-looking, import- substitution and protectionist policies evident in the region. The BSEC promotes a more dynamic, open, outward- looking export oriented approach. In other words, from a closed regionalism to an open regionalism. This kind of approach promotes international competitiveness, better trade performance, infrastructure building, environmental protection, good governance, cooperation in science and technology, education and training, liberalisation, and structural adjustment. In sum, it aims at dynamic and action-oriented objectives. It envisages intra-regional trade, but not at the expense of extra-regional trade. It promotes the greater involvement of non-governmental sectors and puts more emphasis on the private sector. The new approach stresses the need for the progressive integration of the newly independent states in the World economy. Strategy Regional economic cooperation is a long term investment which requires a strategy and farsighted perspectives. The main elements of BSEC strategy are as follows: shifting away from rigid integration schemes such as customs unions and common markets towards less binding project-oriented cooperation; allowing member countries to progress at different speeds in trade liberalisation; permitting member countries to have bilateral preferences with partners sharing common sectoral interests; producing jointly the public goods and undertaking commonly the projects which may be too costly for individual members, such as in education, training, research and development, infrastructure, environment, human resource development, energy management, improved flows of information and better communication; rationalising the functions, activities and institutionalisation of regional cooperation through clearing and payments arrangements in the transition period, the avoidance of duplication, operational consistency, and by economising human and financial resources; involving the private sector and education and research institutions in the identification and implementation of cooperation projects; remaining open for the future participation of new members. Scope The scope of cooperation encompasses a variety of areas notably transport and communications, infrastructure, exchange of economic and commercial information and statistical data, standardisation and certification, energy, mining and the processing of raw materials, tourism, agriculture and agro-industry, veterinary and sanitary protection, health care and pharmaceuticals, environment, science and technology. This wide scope is not limited only to technical issues. Establishing codes of conduct, adopting a grass roots approach to promote the BSEC, taking measures against drug trafficking and terrorism which hinder trade and economic interaction, and increasing cultural and social interaction are other examples of cooperation areas within the scope of the BSEC. Model When economic integration and cooperation models are analysed, one cannot put a label on the BSEC. It fits none of them, being a tailor-made product to fit the conditions prevailing in the region and in the World. It is a sui-generis model responding to the needs of our times. The BSEC model is based on the objective desire to develop and diversify existing economic relations among the Participating States by making more efficient use of the advantages arising from their geographical proximity, their traditional ties, the complementary nature of their economies and the large size of their common economic space and market. All projects or initiatives are to be in line with CSCE principles and the dynamics of competitive market economies. It is thus a functional contemporary model designed according to the needs and the aspirations of the region. It has a sound political base and is backed by a strong political will transcending military conflicts. The model has three distinctive features: First, it introduces a new concept of multilateralism in economic relations among its members and into the region wherein the economic activities hitherto have been bilateral and state-induced. This new approach intends to change this pattern, by setting up a multilateral economic structure based on the potential and dynamism of the private sector. Cooperation is based on private initiatives facilitated by governments, thereby conforming with the aspirations of most participating states to move further towards a market economy and pluralist democracy; The second distinctive feature of the model is that it aims to create a common economic language among the member countries, thereby enhancing the extent of cooperation and collaboration between and among the private sectors of BSEC states; The third distinctive feature of the BSEC model is its flexible and pragmatic approach. The speed and the content of cooperation will depend in part upon future developments and will tally with the implementation process of the structural transformation programmes. Cooperation could involve just two or indeed all member states. There is flexibility to increase intra-regional trade, to lower intra-regional trade barriers and controls, and to liberalise external trade. It is open ended in the sense that it does not exclude the use of other external and broader liberalisation exercises. There is flexibility also to expand economic cooperation through trade and investment but not necessarily involving institutional coordination policies. Thus harmonisation and coherence will be to the extent desired. Black Sea Economic Cooperation is therefore a comprehensive and project oriented initiative. It is comprehensive in that it includes both multilateral and bilateral relations in all fields of economic activities and also includes the different dimensions of government, parliament, private sector, local administration, academic and civic institutions. Being project oriented, it is more conducive to making productive use of financial and human resources as well as foreign investments. In a wider sense, it is a cooperation scheme which forms a part of the future European and Eurasian architecture. It is a complementary sub-structure and not a substitute for the EU or other European groupings. It is directed towards economic cooperation, at least in the initial phase. It does not necessarily involve a high level of integration. However, it does not exclude this as an eventual outcome. But harmonisation of all economic policies is not an a priori obligation and in no way is the BSEC a supra-national scheme like the EU. Theoretically, economic integration is more likely to be successful among member countries of close or the same level of development, as was the case with the initial members of the EU. But BSEC members differ greatly in their level of economic development which is another reason for it being a regional cooperation rather than a regional integration organisation. The BSEC envisages free flow of goods, services and factors of production. It encourages interaction amongst the businessmen of the participating states and the easing of travel restrictions. However, it does not aim at a customs union at this stage, whilst the establishment of a free trade area remains only a possibility and a long term goal if the necessary free market preconditions are created. However, taking into account that concrete steps to this end should be made, a Special Meeting of the Ministers of Foreign Affairs was held on 7 February 1997 in Istanbul and a "Declaration of Intent" was adopted for the creation of a Free Trade Area covering the Black Sea Region. Technical work will be done in due course and the modalities for a free trade area will be established. Institutional Structure Another characteristic of the BSEC which distinguishes it from other regional economic cooperation organisations is its institutional structure. This structure is built on four main pillars comprising the governments, parliaments, private sectors and local administrations of member states which would assume complementary roles and functions in any regional economic cooperation scheme. Non-governmental organisations and academic institutions can be added to the foregoing as a fifth pillar. Governments The BSEC is established by the governments of the 11 full member states. The highest decision making organ of the BSEC is the Meeting of the Ministers of Foreign Affairs (MMFA). The sessional chairmanship rotates every six months according to the English alphabetical order. A preparatory meeting of senior officials is held before every MMFA. Permanent or ad hoc subsidiary bodies can be established by the MMFA. At present, no less than 18 Permanent Working Groups are in progress, covering areas such as exchange of statistical data and economic information, banking and finance, trade and industrial cooperation, agriculture and agro-industry, transport, communications, energy, environment, science and technology, health care and pharmaceuticals, and tourism. The Ad Hoc Working Groups deal with organisational matters, travel facilities for businessmen, promotion and protection of investments, avoidance of double taxation, and legislative information. The intensification of BSEC activities has made it necessary to establish a permanent international secretariat for the BSEC. In accordance with the ministerial decision taken at the First MMFA held on 10 December 1992, the BSEC International Secretariat was established in Istanbul. Parliaments The foundation of the Parliamentary Assembly of the BSEC (PABSEC) on 26 February 1993 added yet another dimension to the sphere of cooperation so that the national parliaments can be induced to pass legislation in line with the decisions of the MMFA. It contributes to the establishment of closer friendly relations among the national parliaments of BSEC countries which is founded on the basic tenets of pluralistic democracy. The establishment of PABSEC represents the institutionalisation of these tenets thus complementing the BSEC and constituting an indispensable component of its evolutionary process. It provides the legal ground for the realisation of principles and goals regarding respect for human rights, the rule of law and democratic values. The PABSEC provides democratic participation in the enactment of legislation needed for implementation of the decisions taken by the BSEC, and thus strengthens parliamentary democracy in the participating states. Private Sector The BSEC Council was established in December 1992 comprising the business communities of the BSEC. It is in the process of developing proposals, programmes and projects in a variety of fields of cooperation. The BSEC Council has an observer status at the BSEC. The aim of the Council is to contribute to private and public sector cooperation and coordination in keeping with the objectives of the BSEC Declaration. The Council operates through the activities of the Working Groups on energy, transportation, telecommunications, trade and industry, banking, finance and insurance, fair trade practices, harmonisation of commercial legislation, tourism, environment, agriculture, mining, training, business information and technological cooperation. These Working Groups develop proposals, programmes and projects in their domains, and contract feasibility studies. The BSEC Council is mandated to elaborate and work on all project related issues forwarded by the representatives of the participating states. The Council encourages closer operational ties with the EBRD, UNIDO and IFC and other international institutions. The EBRD has decided to participate in BSEC Council activities through a liaison officer. The BSEC Council has been established to stimulate business cooperation between the participating states of the BSEC and to promote the flow of investment resources into the region. To carry out this objective the Council has established an informal network of focal points throughout the region in order to facilitate the identification, formulation and dissemination of investment project proposals. This mechanism is expected to be the conduit for bringing together potential business partners from within and outside the region. Municipalities The Mayors Conference of the Capitals of Black Sea Countries held its first meeting on 5-6 April 1993 in Ankara. In the final communiqu, municipal representatives of Black Sea Countries, in line with BSEC objectives, recognised the need to solve ecological problems and expressed their concern for the protection of the Black Sea. They decided to concentrate their efforts on three main areas, namely finance, legislation and management, and environmental issues. They stipulated that activities in the three priority interest areas defined could be carried out on the basis of bilateral and multilateral transfers of knowledge, information, know-how and experience as well as through meetings, seminars and workshops; noting that some of these can be formulated as projects eligible for support from international organisations. They also resolved to provide humanitarian aid in case of major disasters in the region. The Black Sea Capitals' Governors and Mayors Round Table brings together the heads of city administrations of the capitals of the BSEC countries. At Round-Table meetings, the participants exchange views and adopt resolutions on a number of issues concerning urban facilities in thier cities as well as on democratic municipal governance towards the fulfilment of BSEC objectives. They concentrate their activities on solving a wide range of issues concerning city transportation, housing, communal services, water supply and sewerage, creating work and recreation for their citizens, developing scientific and cultural potential, protecting the environment, and safeguarding historical and cultural heritage. The Varna based International Black Sea Club was founded on 5 December 1992 by representatives of the cities of Burgas, Varna, Ilichevsk, Konstanza, Nikolaev, Odessa, Piraeus, Thessaloniki, Taganrog and Kherson. The Club aims to create a basis for bilateral and multilateral cooperation among the cities and regions of the Black Sea and the Mediterranean for economic and social development. It has an open-ended participation and observer status in the BSEC. Accomplishments Although it is still too early to gauge the results of the BSEC, the achievements so far attest to its dynamism. From my vantage point, the distance covered by the BSEC train since its departure on 25 June 1992 following the signing of the Summit Declaration can only be considered as remarkable. Within a short time span of three years, the BSEC has completed its institutional structure in all dimensions. In addition to the establishment of international secretariats of the governments, parliaments and private sectors, a Centre for Exchange of Statistical Data and Economic Information was set up within the Turkish State Institute of Statistics to collect statistical and economic information, to install a common data base, to harmonise the statistical data collated from different member states, and to provide the flow of information through a network of computer on-line systems. The Centre has already published country files, statistical reference documents and economic indicators. The agreement on the establishment of the BSEC Trade and Development Bank with a capital of SDR1bn (Special Drawing Rights) has been ratified. This bank will finance BSEC trade and investment projects and will be instrumental in providing international credits. The Bank, headquartered in Thessaloniki, Greece, will be operational soon. In addition: the scope of the Balkan Centre for Small and Medium Size Enterprises established in Bucharest was enlarged to cover all BSEC countries; a Black Sea Regional Energy Centre was established in Sofia under the SYNERGY program of the European Commission; the Centre for Scientific and Cultural Relations between the Black Sea Countries was set up in Tbilisi, Georgia. Moreover, the various working groups have taken concrete steps in their respective fields of activity bringing several projects to the implementation stage, especially in the cooperation fields of transportation, communications and energy. For example, the Working Group on Trade and Industrial Development has concentrated its efforts on the avoidance of double taxation and the promotion and protection of investments. Discussions are also underway on agreements related to coastal and inter-regional trade. Much progress has also been made with the creation and management of free zones, encouraging small and medium sized enterprises, and removing barriers to trade. Technical assistance programs were arranged in 1993 by the Turkish Small and Medium Size Industry Development Organisation (SMIDO) to train 20 participants from BSEC countries on entrepreneurship and management of small and medium size enterprises. Technical assistance programs among BSEC countries were also proposed in the Working Groups on Agriculture and Agro-industry. In the Ad Hoc Working Group on Travel of Individuals, the participating states have made recommendations to facilitate business travel within the BSEC area. The BSEC movement has also spawned a large number of activities: The Black Sea Trading Company was established on 1 October 1992 through the initiative of the Turkish-American Businessmen Association (TABA) to bring together private sectors and governmental agencies from BSEC associated states and the newly independent states (NIS) of Central Asia, marshalling both trade and project finance from its shareholders and outside institutions at the same time as fostering the growth of business organisations; The Romanian Danube-Black Sea Foundation established in 1992 aims to develop scientific, cultural and economic cooperation among the littoral states of the Danube and the Black Sea; The Joint US-Turkish Black Sea Trade Mission and Conference was organised on 3-10 July 1993 sponsored by the American-Turkish Friendship CounciI (AFTC) and the Turkish Foreign Economic Relations Board (DEIK) with the cooperation of some business councils from the BSEC countries. A conference and business forum jointly organised on 13-14 October 1992 by the Middle East Economic Digest (MEED) and Interforum Services Limited brought together government authorities and senior business decision makers who discussed specific projects and investment opportunities in the BSEC area; A Black Sea Business Forum was organised in April 1993 by the Union of the Free Businessmen of Georgia and the State Council of Georgia; The Conference on Business Opportunities in the Black Sea Region: Challenges and Solutions was held on 24-26 September 1993 in Tampa, Florida, with the aim of attracting American businessmen and investors to the BSEC area. This Conference was repeated two years later; The Black Sea International Fair was organised on 2-8 May 1994 in Turkey exhibiting raw materials and industrial products from BSEC countries; The first BSEC International Energy Congress was organized on 1-6 November 1993 in Ankara by the World Energy Council (WEC) to review existing energy resources, to discuss regional problems related to energy, and to examine the possibilities of cooperation; The Convention on the Protection of the Black Sea Against Pollution was signed on 22 April 1992 by all the littoral states of the Black Sea. There are also ongoing projects in this area such as the Cooperative Marine Science Program for the Black Sea (Comsblack), the Programme of Environment Management and Protection of the Black Sea (GEF), the Programme of Monitoring Laboratory Analyses and Management of Information in the Countries Riparian to the Black Sea, the Programme on the Interaction between the Danube River and the North-Western Part of the Black Sea, and finnaly the Black Sea Regional Programme for Sea Research and Services (COI); The Convention on Cultural Scientific and Information Cooperation between BSEC countries (excepting Bulgaria and Greece) was signed on 6 March 1993. The Black Sea Chamber Orchestra consisting of 17 musicians from different BSEC countries has been formed; The Black Sea Television Service established in Yalta, Crimea, is aimed at promoting the idea of a free zone in Crimea, thereby contributing to the atmosphere of cooperation in the BSEC area; The Black Sea : the Zone of Interaction of Civilizations is a program worked out by the Russian Academy of Sciences; The first The Golden Eagle : The Black Sea Region Movies Festival and Competition was held on 19-26 September 1992 in Tbilisi. The BSEC Folklore Festival was organised in October 1993 in Georgia; The Black Sea University was established in Constanta, Romania, as a seasonal school offering graduate level courses on issues related to the promotion of BSEC; Columbia University, Harriman Institute in the USA and the Centre for International Studies in Bosphorus University in Istanbul have jointly established the Black Sea Studies Certificate Program; Initiatives to establish BSEC unions for banking, medicine, cardiology and leather producers. The architects of the Black Sea region decided to form an organisation at the end of the Conference of Architects of Black Sea Region held on 10-12 October 1995 in Tbilisi. The Bar Association of BSEC was established in September 1994; A meeting was held in Istanbul on 11-13 April 1997 for the establishment of a Union of the Red Cross and Red Crescent Associations of the BSEC participating states and Belarus. A meeting was held on 18 February 1997 in Mangalia, Romania aimed at setting up a mechanism of cooperation amongst the chambers of commerce and commodity exchanges in BSEC Countries; A meeting on 3-4 April 1997 in Istanbul was held with a view to establishing a BSEC Stock Exchange Market. Regarding concrete projects, there are completed and ongoing telecommunications projects in the BSEC region: ITUR, which links Italy, Turkey, Ukraine and Russia by fibre optic cable systems; Black Sea Fibre Optic System (KAFOS) which interconnects Turkey, Bulgaria, Romania and Moldova; Eastern Black Sea Project (DOKAP) is a digital microwave radio link covering Turkey, Georgia and Azerbaijan; Trans Balkan Link (TBL) is a digital transmission track line connecting Turkey, Bulgaria, Macedonia, Albania and Italy; Trans Asia-Europe Fibre Optic System (TAE) is another fibre optic system linking several countries in the region and beyond; Black Sea Fibre Optic Cable System (BSFOCS) will provide a fibre optic link between Bulgaria, Cyprus, Georgia, Greece, Russia and Ukraine; ADRIA-1 links Albania, Croatia and Greece. The ITUR project which was launched soon after the establishment of the BSEC in June 1992 was completed on the 14 March 1996. Indeed, 48% of the traffic of ITUR was sold before the project was launched in 1993, thereby financing the project before it was completed. KAFOS was completed in 1996 and DOKAP are also scheduled to be operational in 1997. With regard to transport, a combined multi-modal transportation system is being planned which will form a ring corridor around the Black Sea. This will be connected to some of the Pan-European priority corridors in the West and to some Central Asian countries in the East. An electrical energy network project in the region is being developed. There are also other projects in consideration in different fields of cooperation ranging from agriculture to tourism, trade to pharmaceuticals and industry to the environment. Prospects As the BSEC is such a young organisation, it is difficult to make a conclusive assessment about its future prospects. An a priori evaluation of the implications of the various regional economic cooperation arrangements is subject to a high degree of speculation. It is very difficult to measure the degree of liberalisation of the member countries. My hypothesis is that the BSEC can become an important regional group influencing the economic, social and political development in its economic space. The constraints to its future development are geographic (large and diverse area comprising different nations, religions, sects and cultures where not all members are littoral states of the Black Sea), political (historic divisions and disputes still simmer throughout the region) and economic (economies in the BSEC region are largely uncoordinated and for the most part underdeveloped. Although economic reforms are progressing in those BSEC countries in the process of transition, there remains much to be done with structural reform and sustainable growth is still some way off. Even though the benefits of reform are becoming more visible, the costs associated with transition are all too obvious. Nevertheless, as the new structures solidify, the supply responses will be more rapid and more efficient and market economic principles will prevail. Limited financial resources are a further constraint and the funding of projects will continue to need back up from the bilateral and multilateral financial organisations. Some BSEC states do not have convertible currencies making both trade and multi-lateral cooperation problematic. But on a positive note, over 320 million people live in the 20 million km2 of the BSEC region. This is a sizeable market by any criteria and as such is attractive for investment in diversified fields such as transportation, communications, energy and tourism. Owing to locational advantages, potentially large markets in the BSEC region could be integrated with relative ease to the important markets of Europe, the Mediterranean, Central Asia and the Middle East. The BSEC region also has great potential arising from its unique geographical setting and common heritage. On-going reform and structural adjustment, geographical proximity and transportation facilities across the Black Sea coastline with 200 miles of navigable rivers reaching into the heart of Europe offer advantages incomparable with other regions. The Black Sea Basin has potential for expanding trade from the River Danube to the Ural Mountains. The Black Sea itself is the fourth largest inland body of water in the World. It supports a major fishing industry producing 60,000 tons per annum and employing some 75,000 people. It can also offer substantial tourism opportunities. Moreover, the BSEC region is well endowed with all types of energy such as petroleum, natural gas, coal, minerals and forestry. The member countries also have a wide spectrum of complementary industries and agriculture which should allow them to develop their relative comparative advantages in various economic activities. Finally, the unifying political will which brings even warring parties together on the BSEC platform is a promising binding factor that could contribute to peace and stability in the region through prosperity. The BSEC is perhaps the only example of its kind where common economic benefits transcend political conflicts and where economic cooperation can serve as a catalyst for political reconciliation. Conclusion : BSEC and Regional Security The BSEC has opened a new and special chapter in Black Sea regional history. Established at a time when the Balkans and the Caucasus were facing great unrest and difficulties coupled with ethnic conflicts, the BSEC has proved itself to be a forum where the participating states put aside their differences and undertake joint economic projects for their mutual benefit. It has proved to be a regional arrangement where economic motives transcend political conflicts. During the five years since its inception, the BSEC has asserted itself as an important confidence building measure and as such is an essential element of peace and stability in the region. The varying national interests, differing political assessments and diverse stages of development of the participating states have not prevented them from seeking common solutions to their problems through dialogue, economic cooperation and by creating an environment conducive to regional stability. The BSEC has helped to create a favourable psychological atmosphere in a region torn by conflicts in all forms and shades. The results are all the more impressive in the face of the diversity of the problems besetting the region. The BSEC represents a strong political will that has the determination of the member states to surmount these problems through dialogue and cooperation at different levels and dimensions including government, parliaments, private sectors, local administrations, NGOs and academicians. The realisation of stability and security requires balanced and parallel progress in all spheres of cooperation: political, economic and cultural. However, the sum of the overall gains, political, economic or otherwise, is more than the sum of economic gains in the BSEC. Europe is in the process of recasting its defence policy in order to address risks outside the central part of the continent. There is an evident need for a cautious and balanced approach to security problems emanating from the Black Sea region. For their part, European countries and institutions should commit themselves to providing contribution to and dialogue with the BSEC and its individual constituent states. The EU could perhaps establish a special programme for BSEC members. The UN, OSCE, NATO, EU and other European institutions should play their part in addressing properly the various tensions and conflicts in the region. The variety of risks and divergence of interests of the BSEC participating states make it hardly possible to find a short term formula for a concerted effort to overcome instability and to develop a regional approach to security. Therefore, the members of the BSEC are cautious over the inclusion of a security dimension in their regional cooperation agenda. Some countries and organisations believe that it is important for the coastal states to establish mechanisms for dialogue, and that it is an area in which Turkey, as a full member of NATO, could play a crucial role in assuaging the fears of conflict. Even though time is not yet ripe, Turkey might take a receptive view regarding the formation of a consultative mechanism which would comprise the coastal states of the Black Sea with a political and security content. Such a mechanism would not necessarily have an organic link with the BSEC. The present security threats in the region are basically generated from ethnic and nationalistic tensions, dissatisfaction with economic and social transition, migration and refugee problems as well as from terrorism and interrelated illegal acts extending beyond regional boundaries. The BSEC is an attempt to develop the necessary roots of long term security and stability in the region by patiently weaving the delicate fabric of peace with the strong threads of economic cooperation. The ground of the region is being cultivated with concrete projects. What we shall reap depends on what we sow. Therefore, European institutions should make positive contributions to render the BSEC more successful. For the success of the BSEC is in the interests of greater Europe.