CSCE Budapest Declaration,
Towards A Genuine Partnership In A New Era,
DOC.RC/1/95 (21 December 1994)

IX
The Economic Dimension

1. The participating States reaffirm the principles and values expressed in the Helsinki Document 1992, the Document of the Bonn Conference on Economic Co-operation, and the Charter of Paris for a New Europe, and underscore that support for the economic reform process, and the development of market economies and environmentally sound policies are essential for the security and stability of the CSCE region.

2. The participating States consider it important to pay close attention to the interrelationship among all of the dimensions of the CSCE's comprehensive concept of security. The economic dimension in the CSCE comprises activities designed to promote co-operation in the field of economics, the environment and science and technology, as well as regional and transfrontier co-operation.

3. The participating States welcome the role played by the international economic and financial institutions in support of economic dimension priorities, and reaffirm their interest in working closely with these organizations. They consider it necessary to promote closer interaction between the CSCE and international economic and financial organizations and institutions engaged in the CSCE region. In order to place issues of common concern into a broader security context, the participating States encourage the Chairman-in-Office and the Secretary General to enhance their dialogue with such organizations. They ask the Secretary General to establish an international organizations contact point which would assist in the exchange of information between representatives of the CSCE and these organizations on activities relating to the economic dimension, and reduce duplication and overlap.

4. The participating States will continue to co-operate in support of the economic reform process in the countries in transition, concentrating on issues relating to trade and investment, privatization, and private sector development. They will work to promote the effective integration of the countries with economies in transition into world economic structures, and to this end reaffirm their determination to promote the continued liberalization of trade, including market access. The participating States welcome the network of bilateral and multilateral agreements and arrangements which contribute to overcoming past divisions, and note with pleasure the successful conclusion of the Uruguay Round of the GATT negotiations and the creation of the new World Trade Organization.

5. Regional and transfrontier co-operation has a definite role in promoting good-neighbourly relations. The participating States welcome the development of an increasing number of regional groupings, in conformity with CSCE principles, including the Black Sea Economic Co-operation, the Barents Euro-Arctic Council, the Central European Initiative, the Central European Free Trade Agreement, the Council of Baltic Sea States and the Danube River Protection Convention, as positive examples of economic, environmental, regional and transfrontier co-operation.

6. The participating States note that the development of economic ties and co-operation in the framework of the Commonwealth of Independent States and the implementation of their economic agreements will contribute to resolving the problems of the transition process.

7. Recognizing the importance of infrastructure development in the promotion of economic integration in Europe, the participating States welcome the declaration of the Second Pan-European Transport Conference and undertake to implement its conclusions. The participating States note with interest the upcoming signing of the European Energy Charter, and express their support for the principle of establishing a Trans-European Energy Network.

8. The participating States recall the special ad hoc meeting of Senior Officials convened as a result of the decision by the Rome Council Meeting to discuss priority projects to assist those States affected by United Nations sanctions against Yugoslavia (Serbia and Montenegro). This meeting resulted in better international co-ordination in addressing these problems, and the participating States encourage international organizations and the involved States to continue their efforts in this regard.

9. The participating States will continue to encourage initiatives aimed at promoting sustainable development, and will take the necessary steps toward implementing various international conventions and arrangements relating to environmental protection. They express their intention to work together, along with the relevant international organizations and institutions, to ensure the maintenance of environmental standards in the CSCE area. The participating States welcome the establishment of the European Environmental Agency in Copenhagen, and acknowledge the key role it will play in the dissemination of information in this field.

10. The participating States note the ongoing development of transfrontier co-operation on issues of mutual interest in the arctic region. They encourage the eight arctic nations to take steps to effectively implement the Arctic Environmental Protection Strategy (EPS) and ensure the continued co-ordination of its programmes.

11. The participating States will collaborate with the relevant international organizations in the preparation of the next Ministerial "Environment for Europe" Conference, scheduled for Sofia in 1995, and express their intention to continue their support for this process.

12. The participating States encourage the creation of environmental centres in the Russian Federation and the newly independent participating States, modelled after the Regional Environmental Centre in Budapest. These centres would work to promote full participation of both the public and private sectors, including non-governmental organizations, in environmental decision-making.

13. The participating States encourage ongoing international co-operation efforts, especially those of the IAEA, aimed at improving nuclear safety. The participating States will pay special attention to the safe management of radioactive waste, and welcome recent international initiatives intended to assist in this area.

14. The participating States confirm their commitment to further international co-operation in the field of science and technology through existing bilateral and multilateral frameworks, and encourage continued effort in this direction. To this end, the participating States will consider convening a second "Scientific Forum".

15. The participating States remain convinced of the need to preserve the national scientific potential of countries in transition. They recognize that co-operation between industry and research institutions is beneficial in raising productivity and enhancing competitiveness. They encourage efforts to preserve that potential, and urge continued co-operation in this area. In this respect, they welcome the establishment of the International Science and Technology Centre in Moscow, and encourage the participation of scientists in the activities of similar centres. The participating States also encourage the promotion of the exchange of high technology, consistent with their international obligations and commitments.

16. Stressing the importance of public support for reform, the participating States will continue to pay close attention to the social aspects of the transition process.

17. The participating States encourage co-operation in the adaptation of education and training systems, so that they may better serve the needs of societies undergoing reform. Some areas requiring specific attention are the identification of present and future skill needs, retraining of the unemployed to facilitate their integration into the labour market, continued vocational training, and the integration of all sectors of society into these programmes. Training in modern management practices is also an essential element of economic reform.

18. The participating States recognize the importance of co-operation in a number of areas in the economic integration process. They confirm that the development of transparent and internationally compatible standards and certification procedures is an essential factor in promoting trade and investment. They reaffirm the importance of recognizing intellectual property rights. The participating States recognize that access to reliable information and statistics is important to public policy development as well as decision-making in the private sector. They also encourage efforts to standardize reporting practices. Progress in these areas is crucial to fostering co-operation, including the development of trade, the promotion of investment, and sound environmental policies.

19. The participating States renew their commitment to take active measures and engage in consultations in the relevant fora to prevent the trafficking of drugs.

20. The participating States stress that the Economic Forum remains the main venue for discussion of economic dimension issues. They are committed to making the Forum more dynamic through the careful preparation of each meeting well in advance, and a change in format to allow for maximum discussion. The participating States recognize that the success of the Economic Forum is dependent upon the active and high level participation of a wide range of representatives from government, international institutions, the private sector, business associations, labour unions, academic communities, and non-governmental organizations with relevant experience.

21. The participating States request the Chairman-in-Office, with support from the Secretariat, to convene an ad hoc informal group to meet in Vienna to undertake the preparation of the Economic Forum and its follow-up. Representatives of relevant international organizations may be invited to these meetings.

22. Topics addressed in the Economic Forum in general should continue to cover various aspects of the transition process and economic co-operation in the CSCE area, as well as related issues in the economic dimension. However, in order to make Forum meetings more effective, the participating States agree to choose within the broad areas a limited number of topics for each annual meeting. The topic of the Third Economic Forum meeting will be regional economic co-operation in the fields of trade, investment and infrastructure.

23. The participating States believe tourism plays a role in promoting better understanding between different cultures, and in creating enduring links between peoples and States. In this spirit the participating States welcome the Government of Romania's decision to host a seminar on tourism in the autumn of 1995, as a follow up to the ideas proposed in the Second Economic Forum.

24. To promote greater effectiveness of economic dimension activities, and noting the decision taken by the Rome Council, the participating States ask the Secretary General to designate a position for a full-time economic expert, and to designate Secretariat staff to ensure adequate support for these activities.

25. Recalling the Rome Council decision to have the CSCE take a more active role in promoting co-operation in the economic dimension, the participating States encourage the Chairman-in-Office to convene a meeting of the Permanent Council to discuss means to integrate the economic dimension into the consideration of the tasks faced by the CSCE. Representatives of relevant international economic and financial institutions may be invited to such a meeting.

26. The participating States welcome initiatives by the private sector to create business clubs and activities in line with CSCE principles and values. The participating States stand ready to facilitate the exchanges of information and experience, and promote interaction with and among these clubs and associations, through, inter alia, the Economic Forum meeting.

27. The participating States also encourage the Secretariat to work towards augmenting the involvement of representatives of the business community including the private sector, business associations, and non governmental organizations with relevant experience, in economic dimension activities. This could be done through the increased use of Secretariat public affairs efforts.



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