Chapter 18. Selective Reconstruction

By Robert Cantley

The United States and the NATO powers were more than willing to spend billions of dollars for a massive 78-day bombing campaign over Yugoslavia. Now that the dust is settling, no one, especially the United States, is willing to foot the bill for the reconstruction of the war-torn nation. Initial indications point to the bulk of the cost being provided by the European Union member states, even though the United States was the most adamant power behind the bombings. Current evidence also shows that the bulk of the aid will go to the province of Kosovo, where it is claimed that the most damage has been done. This, however, completely contradicts the truth. The notion that Kosovo has received the brunt of the damage merely falls into line with the western media’s sought-after sympathy for the war. Sergio Vierra De Mello, the United Nations Undersecretary-General for Humanitarian Affairs, who investigated and evaluated the damage done to Kosovo and Serbia, explains:

"Well, devastation [in Kosovo] is perhaps too strong a word. Devastation…is a psychological devastation. Basically, the physical infrastructure is still there…bridges have not been destroyed to the extent that they have been in Serbia. Industrial plants that didn’t have any military relevance are there. The land is ready to be cleared and cultivated again. What they will find is destruction and burning, damage done to their private property…there is electricity in the main cities of Kosovo. I repeat, not as much damage has been caused to that type in Kosovo as has been the case in Serbia. It might be easier to restore basic services in Kosovo than it will be in Serbia."1

The talk coming from the West concerning reconstruction falls into a limited scope of projected aid. While no one has been specific regarding who will actually contribute what, it is clear that Bill Clinton and Gerhard Schroeder are not concerned with the rebuilding of Serbia. Here are some quotes from the two concerning aid to Serbia:

From Schroeder: "the G8 is opposed to funds for reconstruction until Yugoslavia dumps Milosevic and endorses democracy. Reconstruction aid, re-establishment of economic structures and reincorporation into Europe need democratization, and that is not possible with Milosevic."2

From Clinton: "In terms of rebuilding the bridges so people can go to work, I don’t buy that. That’s part of their economic reconstruction, and I don’t think we should help—not a bit, not a penny. But on the other hand, I think their hospitals ought to be able to function."3

However, when the G8 powers met in late June, 1999, they had promised "strong action" to stabilize Yugoslavia’s war-torn Kosovo province. In a show of typical arrogance, U.S. officials claimed that "European nations should assume most of the cost [of reconstruction] since the United States paid for most of the 11-week NATO air offensive …." In response, French President Jacques Chirac said, "We’ll pay. That’s true. But I can’t imagine that Americans would just look at that and not have participation." According to the same report, the U.S. had wanted to "limit aid to Kosovo—excluding the rest of Yugoslavia—as long as Milosevic remained in power."4

Even though it should be an insult to Europe to have to pay for the rebuilding effort, the European Union has agreed to do so. Again, no one wishes to speculate on the cost of the effort, but it could easily reach into the billions. So far some nations have stepped forward and pledged to make efforts to help Serbia rebuild. The Dutch government, in conjunction with Greece, has lobbied to selectively lift the oil embargo to "reward communities in Serbia that make democratic strides." This is being called the "energy for democracy" plan. According to this plan, "municipalities, community groups or non-government organizations in Serbia actively working for greater democracy should be rewarded with fuel to generate electricity or to drive tractors."5

Russia has also pledged to provide $150 million of credit so that Belgrade may purchase Russian fuel and other goods needed for reconstruction. Russian companies will also focus on Serbia’s bridges, 59 of which were destroyed or damaged. Russia’s Economy Minister Andrei Shapovalyants said "Russia’s contribution to the redevelopment of Yugoslavia would outweigh that of other countries…we are obviously the cheaper and more efficient option in solving the problems of rebuilding."6

South Korea’s Dae Woo auto firm has also pledged to help Serbia’s Zastava car plant get back on its feet after it was leveled by a NATO attack. Repairing Zastava will enable thousands of Serbs to go back to work.

Also, an unidentified Swiss donor has helped Belgrade to reconstruct its first bridge over the Danube. The key Beska bridge in Belgrade is a major link in the crossroads of southeastern Europe. This undertaking was the first official step of Milosevic’s plan to rebuild Serbia.

Preliminary reports for the United Nations rebuilding efforts indicate that funding is limited. According to Lorrie Goldstein of the Toronto Sun, in his July 6, 1999, report, "the UN agency charged with resettling refugees [UN High Commission for Refugees] now says it is on the verge of bankruptcy due to a lack of funds. UNHCR spokesman Dennis McNamara reports that they are not getting cash from donor governments necessary to make it a viable operation. McNamara noted that thus far the UN had received only $155 million of the $234 million it needs." According to the UN, UNMIK, the group tasked with the civil administration of Kosovo, says it desperately needs international donors to carry out their job. It seems funny that the United Nations, which was largely ignored by the militaristic entities of the U.S. and NATO in seeking a peaceful negotiation, is now being called upon to clean up the bulk of the mess.

One ominous aspect of the reconstruction process is the involvement of the World Bank and the International Monetary Fund. While the World Bank is complaining that the cost of Yugoslavian aid could sap world funding and take away from the rest of world’s problem areas, it has said that it will probably commit $60 million to Kosovo, while the European Union has talked of putting up $510 million. Even though reconstructive aid to Kosovo will come at little cost to the World Bank, there are indications that their long term plans in the area are aimed at economic bullying. Along with the IMF, the World Bank is using Kosovo as a foothold in Yugoslavia in order to gain hegemony over the entire region. According to Jason Vest’s article in the July 6, 1999, issue of the Village Voice, through the IMF and World Bank the U.S. is imposing its economic stamp on the Balkans. The pattern seems to show that there will be "increased opportunities for investment by foreign firms at the expense of local investors, lower wages, more inequality, more concentration of wealth, and control of the economic agenda from outside. And if the Balkans don’t accept that, they’ll be cut off from all international capital." The World Bank and IMF are the equivalent of global loan sharks, eager to loan money as long as recipient nations submit to "structural adjustment, a euphemism for cramming neoliberal Western-style capitalism down a nation’s throat." According to Steve Hellinger of the Development Gap, a global economic watchdog, "While the EU doles out contracts to construction firms and merchants, the World Bank and IMF can be expected to take advantage of Kosovo’s international protectorate status to make it a Balkans beachhead for neoliberal expansion, and it’s here that U.S. corporate hegemony is apt to assert itself."

The bidding process that will determine how much money is contributed by whom, and who will do the ground work has yet to happen. Clinton and Schroeder have called for an international summit to take place in Sarajevo on July 30, 1999, to discuss the democratic and economic reform process in Yugoslavia. It is interesting to note that all of the former Yugoslav republics and many other European nations have been invited, while Serbia and Milosevic have been intentionally left out of the agenda. Two days prior to that meeting will be another meeting in Brussels with the goal of putting together a financial aid package to the region.

In conclusion, after 78 days of bombing with billions of dollars of high-tech weaponry unleashed on the sovereign nation of Yugoslavia, and billions of dollars of damage done to Serbia proper and Kosovo, the main perpetrators of the war, the United States government, has seemed to successfully elude the clean up process and escape any major monetary contribution. The talk from Washington indicates that most aid to the region will land in Kosovo, the area reported by the UN to have the least damage. The U.S. government’s refusal to deal with Yugoslavia, and its promised token humanitarian relief, is exactly the same as its policy with Iraq. As long as Milosevic is in power, it can’t do anything for the suffering in Yugoslavia. When either makes concrete steps toward a more democratic form of government, then the U.S. will come to the negotiating table. It is only a matter of time before we begin to see the full extent of the crimes committed against Serbia. With no help coming from the richest nations on the planet, one can only wonder what conditions will be like in Serbia. In the meantime Serbia will be effectively cut off from outside help while they struggle internally to regain any stability. There has been much talk on the news of the Balkans needing a new Marshall Plan to promote peace and stability. However, there appears to be no help for the nation that was the glue in the former greater Yugoslavia. In any sane mind, to bomb a nation relentlessly and then offer no help in the aftermath constitutes a crime against humanity and against peace.

 

Notes

1(06/07/99: www.pbs.org/newshour/bb/europe/jan-june99/refugees_6-7   )

2(06/20/99: www.cnn.com/WORLD/europe/9906/20/g8.summit.04 )

3 (06/21/99: www.whitehouse.gov/WH/New/Europe-9906/html/Speeches/990621 )

4 (06/20/99: www.cnn.com/WORLD/europe/9906/20/g8.summit.04 )

5 ( www.cnn.com/WORLD/europe/9907/15/BC-ENERGY-YUGO.reut     )

6 ( www.msnbc.com/news/292477.asp )

 

 

Commission of Inquiry
c/o International Action Center
39 West 14th Street, Room 206
New York, NY 10011
email: iacenter@iacenter.org
http://www.iacenter.org
phone: 212 633-6646
fax: 212 633-2889

 

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Table of Contents: Selected Research Findings