25 years ago, the Russian historical empire melted down. Although often underreported, this also marked the end of alternative society in Europe. Collapse of the II world, made the 3rd way (of Yugoslavia and further, beyond Europe – globally, of the Nonaligned Movement) obsolete.
That 9/11 was a moment when the end of history rested upon all of us, the day when the world became flat. The EU entered East, but only as a ‘stalking horse’ of NATO. No surprise that Eastern Europe –following the slaughter of its pivot, Yugoslavia – has soon after abandoned its identity quest, and capitulated. Its final civilizational defeat came along: the Eastern Europe’s peoples, primarily Slavs, have silently handed over their most important debates – that of Slavism, anti-fascism and of own identity – solely to the recuperating Russophone Europe.
Terrified and rarified underachievers
Is today’s Eastern Europe a classic case of indirect rule? Is that a deep imperial periphery of nominally independent native rulers, while in reality the true power holder resides outside, although is domestically supported by a dense web of NGOs, multinational corporations and locally handpicked ‘elites’?
Everything in between Central Europe and Russia is Eastern Europe, rather a historic novelty on the political map of Europe (see four maps above). Very formation of the Atlantic Europe’s present shape dates back to 14th–15th century, of Central Europe to the mid-late 19th century, while a contemporary Eastern Europe only started emerging between the end of WWI and the collapse of the Soviet Union – meaning, less than 100 years in best cases, slightly over two decades in the most cases. No wonder that the dominant political culture of the Eastern Europeans resonates residual fears and reflects deeply insecure small nations. Captive and restive, they are short in territorial depth, in demographic projection, in natural resources and in a direct access to open (warm) seas. After all, these are short in historio-cultural verticals, and in the bigger picture-driven long-term policies. They are exercising the nationhood and sovereignty from quite a recently, thus, too often uncertain over the side and page of history. Therefore, they are often dismissive, hectic and suspectful, nearly neuralgic and xenophobic, with frequent overtones.
The creation of a nation-state (on linguistic grounds) in the Atlantic, Scandinavian and Central Europe was relatively a success-story. However, in Eastern Europe it repeatedly suffered setbacks, culminating in the Balkans, Caucasus and the Middle East, but also remains evident in the central or Baltic part of Eastern Europe.
Above statement might come as a shock for many. Why? For the last 25 years, our reporting on Eastern Europe was rather a matter of faith than a reflection of the empirical reality. This ‘rhetoric’ was dominated by fragmented intellectual trends that are more cultural (e.g. poetry, paintings, film, etc.) than coherently economic and geo-political in focus as they should be. How one defines a challenge largely determines the response – effectively points out Brzezinski. Hence, the arts will always elaborate on emotions, science will search for and examine the facts.
If the front of Atlantic-Central Europe lately suffered (an economic) problem which has been diagnosed as a distributional and compositional, than who and when is holistically and scientifically to examine the Eastern-Rusophone Europe and its burning geo-economic (distributional, compositional), socio-political/ideological (space-time in history) and geopolitical (logical and areal) problem? Where is a serious research on that?
If the equality of outcome (income) was a communist egalitarian dogma, is the belief in equality of opportunity a tangible reality offered to Eastern Europe or just a deceiving utopia sold to the conquered, plundered, ridiculed and cannibalized countries in transition?
What is the current standing of Eastern Europe – state of its economy, the health of its society and the efficiency of its governance?
By contrasting and comparing available HDI data (UN DP’s Human Development Index) and all relevant WB, OECD, UNCTAD, ILO and WHO socio-economic and health indexes including the demographic trends of last two decades, we can easily spot a considerable green, economic and socio-human growth in Asia, in Latin America and moderate growth elsewhere. The single trend of negative growth (incl. the suicide and functional illiteracy figures) comparable by its duration and severity to this of Eastern Europe, is situated only in the sub-Saharan Africa (precisely the CHAD-lake region and partially between Grand lakes and Horn of Africa). Further on, recent generational accounting figures illuminate a highly disturbing future prospect for the youth of Eastern Europe. Neither their economic performance nor birth rates would sustain the financial burden left for the future by the present, irresponsible and defeatist, generation.
Ergo, euphemisms such as countries in transition or new Europe cannot hide a disconsolate fact that Eastern Europe has been treated for 25 years as defeated belligerent, as spoils of war which the West won in its war against communist Russia.
It concludes that (self-)fragmented, deindustrialized, rapidly aged rarified and depopulated, (and de-Slavicized) Eastern Europe is probably the least influential region of the world – one of the very few underachievers. Obediently submissive and therefore, rigid in dynamic environment of the promising 21st century, Eastern Europeans are among last remaining passive downloaders and slow-receivers on the otherwise blossoming stage of the world’s creativity, politics and economy.
East does not exercise its political sovereignty (gone with the EU), its military sovereignty (gone with the NATO), its economic and monetary sovereignty (gone with the massive domestic de-industrialization ‘preached’ by the IMF, EBRD, EIB and eventually ECB),and its financial sovereignty (gone by full penetration of German, Austrian and Swedish banks).Those national currencies still existing in Eastern Europe lost – for already long ago – the vital substance: their anthropological and economic function.
Most of the Eastern European states do not control a single commercial bank on their territory.East does not control its own narrative or (interpretation of) history: Due to the massive penetration of Central Europe, East grossly relativized, trivialized and silenced its own past and present anti-fascism. Additionally, this region does not effectively control its media space. Media there (of too-often dubious orientation and ownership) is discouraging, disorienting and silencing any sense of national pride, influence over destiny direction and to it related calls for self-(re)assessment.
East is sharply aged and depopulated –the worst of its kind ever – which in return will make any future prospect of a full and decisive generational interval simply impossible.Honduras-ization of Eastern Europe is full and complete.If the post-WWII Soviet occupation of Eastern Europe was overt and brutal, this one is tacit but subversive and deeply corrosive.
East between Ukrainization and Pakistanization
It is worth reminding that the NATO remains to be an instrument of the US physical, military presence in Europe. Or, as Lord Ismay defined it in 1949: ‘to keep the Russians out, the Americans in, and the Germans down’. The fact that the US remained in Western Germany, and that the Soviet Army pulled out from Eastern Germany did not mean ‘democratization’ or ‘transition’. It represented a direct military defeat of the Gorbachev Russia in the duel over the core sectors of Central and Eastern Europe. As direct spoils of war, DDR disappeared from the political map of Europe being absorbed by Western Germany, while the American Army still resides in unified Germany. In fact, more than half of the US 75 major overseas military bases are situated in Europe. Up to this day, Germany hosts 25 of them.
Admittedly, by the early 1990s, the ‘security hole’– Eastern Europe, has been approached in multifold fashion: Besides the (pre-Maastricht EC and post-Maastricht) EU and NATO, there was the Council of Europe, the CSCE (after the 1993 Budapest summit, OSCE), the EBRD and EIB. All of them were sending the political, economic, human dimension, commercial signals, assistance and expertise.These moves were making both sides very nervous; Russia becoming assertive (on its former peripheries) and Eastern Europe defiantly dismissive. Until this very day, each of them is portraying the NATO enterprise as the central security consideration: One as a must-go, and another as a no-go.
No wonder that the absolute pivot of Eastern Europe – Ukraine, is a grand hostage of that very dilemma: Between the eastern pan-Slavic hegemony and western ‘imperialism of free market’.For Ukraine, Russia is a geographic, socio-historic, cultural and linguistic reality. These days, this reality is far less reflected upon than the seducing, but distant Euro-Atlantic club. Ukraine for Russia is more than a lame western-flank’ geopolitical pivot, or to say, the first collateral in the infamous policy of containment that the West had continuously pursued against Russia ever since the 18th century. For Moscow, Kiev is an emotional place – an indispensable bond of historio-civilizational attachment – something that makes and sustains Russia both Christian and European. Putin clearly redlined it: Sudden annexation of Crimea (return to its pre-1954 status) was an unpleasant and humiliating surprise that brings a lot of foreign policy hangover for both the NATO and EU.
Thus drifting chopped off and away, a failed state beyond rehabilitation, Ukraine itself is a prisoner of this domesticated security drama. Yet again, the false dilemma so tragically imploded within this blue state, of a 50:50 polarized population, over the question where the country belongs – in space, time and side of history. Conclusively, Eastern Europe is further twisting, while gradually combusted between Ukrainization and Pakistanization. The rest of Europe is already shifting the costs of its own foreign policy journey by ‘fracking’ its households with a considerably higher energy bills.
In short, Atlantic Europe is a political powerhouse, with two of three European nuclear powers and 2 out of five permanent members of the UN Security Council, P-5. Central Europe is an economic powerhouse, Russophone Europe is an energy powerhouse, Scandinavian Europe is all of that a bit, and Eastern Europe is none of it.
* All displayed maps per the author’s idea made by Anneliese Gattringer.
- Bajrektarević, A. (2013), Future of Europe (Of Lisbon and Generational Interval), EU Journal Europe’s World, Brussels
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- Stiglitz, J.E. (2012), The Price of Inequality, Penguin Economics
- Wallerstein, I. (1999), The End of the World as We Know it: Social Science for the XXI century, Minneapolis: University of Minnesota Press
- OECD (2014), Society at a Glance 2014 – The Crisis and its Aftermath (OECD Social Indicators), OECD Paris Publications
- World Bank (2014), World Development Report 2014: Risk and Opportunity – Managing Risk for Development, WB Publications
- Mead, W.R. (2014), The Return of Geopolitics – The Revenge of the Revisionist Powers, Foreign Affairs Magazine 93(2) 2014
- Greco, T.H. (2009), The End of Money and the Future of Civilization, Chelsea Green Publishing
- Serfaty, S. (2014) Why we need to be patient with Russia, Europe’s World – the EU Foreign Policy Journal, Brussels (page 73)
- Bajrektarević, A. (2013), Multiculturalism is D(r)ead in Europe – MENA Oil and the (hidden) political prize Europe pays for it, Nordic Page, Oslo Norway
- Ikenberry, G.J. (2014), The Illusion of Geopolitics, Foreign Affairs Magazine 93(3) 2014
- Kagan, R. (2004), Of Paradise and Power, Vintage Books (page 85)
 A sharp drop in LE (life expectancy) in Russia, from age 72 to 59, is something faced only by nations at war. The evidence that Russia has suffered such a steep decline, unreversed ever since the collapse of the Soviet Union, is unprecedented in a peace-time history of any industrialized nation. Although not so alarming like in the post-SU Russia, the rest of post-Soviet republics and Eastern Europe closely follow the same LE pattern – not to mention devastating birth rates, brain drain and other demographic data. E.g. the projected LE of the today’s born Berliner is around 100 years, while of Muscovite is only 67 years. Simply, the East is unable to (re-)produce its own life. Or, once it is conceived, to keep (the best of) that life at home. Some would argue that it again is the war for a lebensraum, but this time of the self-imposed Endlösung (final solution).
 With some exceptions of Visegrád countries (such as Poland or Czech Republic, and lately Hungary) sporadically opposing a constant bandwagoning (but even that only in the domain of narrow EU fiscal or economic matters), Eastern Europe of today is unable to conceive and effectively promulgate a self-emancipating, balanced and multivector foreign policy. Fergusson goes as far as to claim for Eastern Europeans that: “they looked at Brussels (of NATO) the way former British colonies obeyed everything said and done in London.”
“The entry criteria for Eastern European states was particularly costly: the so-called small and open economies, de-industrialized and over-indebted didn’t have any chance to be equal partners. For most of them, FDI (Foreign Direct Investment) is the only economic solution, which turned them into colonies…” – admitted even the Nobel laureate, economist Stiglitz in his The Price of Inequality. Moreover, the overly strong and rigid exchange rate of the domestic currencies in Eastern Europe is good only for foreign landers. It awards importers while disadvantages domestic manufacturing base and home exporters. This outdated anti-growth and anti-green economic policy has been universally abandoned long ago, even by the LDC (the UN-listed Least developed countries). No wonder that the GDP in the most of Eastern European states is well below its pre-1990s levels, and their ecological footprint index is of an alarming trend.
According to findings of the Budapest Institute of Economics (Corvinus University), for the past two decades, the volume of Austrian banking sector has increased 370%. How is this spectacular percentage achievable for the country of a flat domestic economic and negative demographic growth? This covert occupation of south-eastern Europe by the foreign financial sector did not create new jobs or re-create any industrial base there. As the Budapest Institute concluded aftermath, it was only meant to dry-out the remaining liquid assets (and private savings) from the rapidly pauperized, defeated belligerent. In 1914, Austria controlled banks as well; in Croatia, Bosnia, western Romania, northern Serbia, Hungary, southern Poland and western Ukraine. However, at that time, it also had a strict governing obligation as all of them were a part of the Monarchy. By having recognized the formal sovereignty to each of these entities, Austria today (like Sweden towards the three Baltic States in the northeast flank of Europe, and Germany in the central sector of Eastern Europe) has no governing obligations whatsoever. It can easily externally socialize (externalize) all its costs including banking risks, and individualize all profits (internalize), yielding it only for itself. Hence, the EU accession criteria, combined with a nominal independence of Eastern European entities (pacified by the pre-paid media and guided by the post-paid ‘elites’), means that the economic and other assets are syphoned out, but the countries have to take a burden of the state maintenance solely on themselves. “Creating the market economy attractive for FDI (foreign direct investments) in our case meant a de-industrialization, pauperisation, which eventually led to defunding of most of the state social activities. When someone dare say ‘our education, housing and health sectors are knocked down due to this’, they are quickly denounced as socio-romantics and accused for the social conservatism…” says Head of the Croatia’s Economic Institute prof. Slavko Kulic, and concludes: “…suffering of ever larger segments of societies means nothing to the architects of misery, to those Talibans of neoliberalism.” Recently released edition of the Oxfam study on the wealth distribution worldwide, unfortunately, confirms this bleak picture.
 Current labor relations in the most of Eastern Europe (Rusophone Europe, too) resembles pictures of the 18th rather than of the 21st century’s conditions, especially in the private sector of employment. It is all with a weak or even totally absent trade unionism, dismal labor standards, as well as the poor protection of other essential social, environmental and health rights. “We have stringent labor conditions to the unbearable maximum, so that the few self-styled ‘top managers’ can play golf more frequently and for a longer time… How can you possibly build any social cohesion when disproportionately many suffer for the dubious benefit of the asocial, predatory few…” – confessed to me the Ambassador of one of the largest Eastern European countries who served as a mayor of his country’s capital, before his ambassadorship in Vienna.
Some ten years ago, at the special OSCE forum for demographics, I warned: “…lasting political, social and economic changes including very important technological breakthroughs – throughout our history – primarily occurred at generational intervals. This was an engine of our evolution…Presently, with demographically collapsing East European societies (natality rates, generational and brain drain), the young cohort will never constitute more than a tiny minority – in the sea of aged, backward-looking, psychologically defeatistic and biologically incapable, conservative status quo keepers. Hence, neither the generational change that brings fresh socio-political ideas, nor technological breakthrough –which usually comes along – will successfully ever take place in future of such demographies.” (For a detailed demographic outlook and tentative recommendations/ conclusions, see: Bajrektarevic, A. (2005), Our Common Futures: EURO-MED Human Capital beyond 2020, Crans Montana Forum, Monaco, 2005, as well as Bajrektarevic, A. (2005), Green/Policy Paper Submitted to the closing plenary of the Ministerial (Chairmanship summarizing the recommendations and conclusions of the OSCE Ministerial Summit Prague 2005), OSCE Documents EEA 2005.)
 Eastern Europe is Hondurized – this term refers to an operationalization of Monroe Doctrine in Central America, by which Washington allows its strategic neighborhood to choose their own domestic political and economic systems to an acceptable degree, while the US maintains its final (hemispheric) say over their external orientation. The so-called Brezhnev doctrine (of irreversibility of communist gains) postulated the Soviet (Suslov-Stalin) equivalent to Honduras-ization – Finlandization.
 Eastern Europe, the (under-)world of dramatic aging which, is additionally demographically knocked down by the massive generational and brain drain. Passed the dismantling of the communist order, these emerging economies, countries in transition of the new Europe contain reactionary forces (often glorifying the wrong side of history), predatory ‘elites’ and masses of disillusioned (in a life without respect and dignity, humiliated and ridiculed in the triviality of their lasting decline). Even if the new jobs are created or old kept, they are in fact smoke screens: Mostly a (foreign-loans financed) state-sponsored poverty programs where armies of the underemployed and misemployed cry out miserable wages in dead-end jobs. Former Slovakian cabinet minister laments in private: “Our ‘liberated East’ lives on foreign loans, or in the best case as the industrial suburbia of West Europe, having these few ‘generously’ franchised factories like Renault, VW or Hugo Boss. Actually, these are just automotive assembly lines and tailor shops – something formally done only in the III World countries. Apart from the Russian Energia-Soyuz (space-program related) delivery system, what else do we have domestically created anywhere from Bratislava to Pacific? Is there any indigenous high-end technical product of past decades known? … Our EU accession deals are worse than all Capitulation agreements combined that the Ottomans and Imperial China have ever signed in their history.”
 Gorbachev’s capitulation helped Germans to further gain confidence: Once territorially extended (or to euphemistically say; unified), Western Germany transposed that new size and its centrality into the advanced version of Machtpolitik – drang nach export-based über-economy. No wonder that the über-Mutti’s cabinet is gradually maneuvering the country out of the NATO-enforced Westbindung (an alliance, it does not see any more as its strategic necessity) towards an old, solely/unilaterally determined Ostpolitik of Wandel durch Kopf-Handel (change via altered mindset). Chancellor Markel’s ambassador Michael Schäfer is even more forthcoming on this eventual post-Western Made in Deutschland foreign policy. In the interview for the leading Chinese press he concludes: ‘I do not think there is such a thing as the West anymore.‘ /Kundnani, H. (2015), Leaving the West Behind – Germany Looks East, Foreign Affairs Magazine 94(1) 2015/
 Through the EBRD–EIB conditionalities and EU accession criteria, Eastern Europe was dictated to practically dismantle its essential industrial and service base. This dictatum upon defeated belligerent – euphemistically called countries in transition or new Europe – was followed by loans and assets received from the EU Accession and Structural funds. It was ‘sold’ to the East as award and as such presented to the deceived population. (However, it was rather to tranquilize the population at large and to pacify their local scenes, not at all aimed to modernize, re-industrialize or diversify economy, or to make production and service sector more efficient or competitive. Consequently, it was merely to subsidize the deteriorating purchasing power of the East – to make the peoples there accustomed to and encouraged for the foreign goods and services.) Thus, the funds were predominantly consumed for the western commodities. Ergo, Atlantic and Central Europe extended themselves geographically, while economically they skillfully managed to subsidize their own industrial base. To this very end, Eastern Europe’s elites readily took loans, while –in return– laying down sovereignty by issuing the state-debt guaranties. By doing so, they indebted their own states beyond bearing, and hence, they finally eliminated their own countries as any current or future economic competitor or politico-military challenger.
This is further burdened by the imperialism in a hurry – an inflammable mix of the Lithuanian-Polish past traumas and German ‘manifest destiny’ of being historically yet again ill-fated; impatient for quick results – simply, unable to capitalize on its previous successes. One of my German students recently very vividly satirized: “The irony of unintended consequence is that the intense relationship between Über-mutti (Chancellor Merkel) and boxman at large Klitschko is interpreted by Moscow as asexual, but not as apolitical.”To say, overly cosmopolitan interest for a faith of foreigners living in Germany for someone who infamously said: “multiculturalism is dead in Europe…” (Sarkozy, Cameron and Merkel openly and repeatedly viewed and diagnosed ‘death of multiculturalism’), as if the cluster of Atlantic-Central Europe’s national-states lived a long, cordial and credible history of multiculturalism on its soil.
Ukrainization could be attributed to eastern and western Slavs– who are fighting distinctions without significant difference. Pakistanization itself should describe the southern Slavs’ scenery: In lieu of truth and reconciliation, guilt is offered as a control mechanism, following the period of an unchecked escalation, ranging from a hysteria-of-a-small-difference to a crime-of-otherness purge.
The phenomenon of the Islamic world- Ilham Aliyev
At the end of the twentieth century – at the beginning of the 21st century, world politics differ by its complexity and diversity. It is too important that Azerbaijan, which proclaimed independence twice during the twentieth century, maintained its this independence during the period full of globalization, international integration and social contradictions. Under such complicated historical circumstances, the prominent politician and statesman, the well-known and respected person in the world – Ilham Aliyev’s commitment and successful realization of this responsibility can be characterized as the golden age of modern Azerbaijan history. Conduction of successful foreign policy during his term as head of state has had a significant impact on the future life of Azerbaijan.
The Republic of Azerbaijan, established normal international relations with all the countries of the world after gaining independence, and in the frame of good relations with the Muslim countries, it also protects the interests and interests of the Islamic world within the Organization of Islamic Cooperation and continues to cooperate with these countries in accordance with the requirements of international law. In this regard, strengthening of Islamic solidarity in the world is one of the priority issues in the foreign policy of Azerbaijan. Namely from this point of view, declaration of 2017 year as “Islamic Solidarity Year” by decree of the President Ilham Aliyev dated January 10, 2017, is an indicator of humanistness of our state leader and at the same time it is a positive example of our country’s sensitive attitude to the Islamic Countries Union. Islamic solidarity does not only mean the solidarity of Islamic countries. This is a kind of challenge, regardless of religion, to the world’s people to live in friendship, brotherhood and multiculturalism conditions.
It is well known that sectarian wars, civil wars in the Middle East and as a result, emerged certain socio-political tensions indicate that Muslim countries are in great need of moral solidarity. The controversial political processes happening in the world, the emergence and increasingly widespread of warlike states in different countries, the strengthening of religious confrontation, and the deepening of the prejudiced attitude towards Muslims emphasize the necessity level for solidarity among people, nations and states. It can be said that one of the main reasons for exacerbating the myth of Islamic terrorism, the threat of Islamophobia, and strengthening the oppression of Islamic countries should be sought in the absence of unity and solidarity among these countries. Faith differences, contradictions in interests and positions and etc. leads to serious disagreements, and sometimes severe confrontations. Islamic religion, its sacred values, are insulted by the Islamophobia and those who are exposed to the poisonous propaganda against Islam. The bloody events that took place in the Islamic countries during last years, especially in Iraq, Bahrain, Yemen, and Syria are confirmation of our opinions. Cradles of ancient Eastern culture such as Baghdad, Damascus, Aleppo, Kirkuk, Basra and other cities are subject to serious destruction as a result of wars in Iraq and Syria and constant clashes, monuments of Islamic culture in these cities are destroyed. Caricatures of the Prophet Muhammad are given in the Western media, mosques, the holy book-Koran is burnt. The Western world’s official structures do not just condemn the acts of vandalism, but on the contrary, they protect, honor, and appreciate the performers of those acts.
The main purpose of the “Islamic Solidarity Year” is to strengthen the unity of the Muslim world and to show that Islam is a religion of peace and culture, and to achieve this goal, as President of the Republic of Azerbaijan Ilham Aliyev said, first of all, reconciliation between different sects that have historically damaged Islam should be established. The announcement of the year 2017 as the “Year of Islamic Solidarity” in Azerbaijan is a challenge to the West, which is strengthening its attacks on the Islamic world annually and promoting a new “crusades” in the 21st century. This is also a call for Islamic countries to be vigilant against the crafty intentions of the West, to demonstrate unity and solidarity. Ilham Aliyev made this important step and expressed the his own position and the position of the state of Azerbaijan. As Azerbaijan has distinguished from other states with its multicultural and tolerant values throughout its history. Islamic solidarity is also a part of this context, and this shows that President Ilham Aliyev gives great importance to the solidarity of the Islamic world. As political scientists point out, some initiatives have been made to call Muslim countries to get unified around religion. For the first time in history, the head of our state has sent a political message to the Islamic world, pointing to the importance of acting from unified position, to achieve unity and at the same time integrate into the world. It should be noted that the Order of the President of the Republic of Azerbaijan on the declaration of 2017 year as“Year of Islamic Solidarity” states: “The Republic of Azerbaijan has established mutually beneficial relations with the Islamic world by being selected as a member of the Organization of Islamic Cooperation, ISESCO and other respected organizations joining muslim countries and has been an organizer of a number of important cultural forums of global importance. Azerbaijan has made a great contribution to the founding of tolerance environment, multiculturalism, intercultural and intercivilizational dialogue, and the promotion of Islamic values in the world. The prestige gained by Azerbaijan in the Islamic world got its expression in this results that Baku and Nakhchivan cities declared as a capital of Islamic culture in 2009 and 2018 respectively. And the decision to hold the IV Islam Solidarity Games in Baku in 2017 create favorable conditions for our country to take the next practical steps in strengthening the Islamic solidarity. ”
Only state leader of the country like Azerbaijan, where multiculturalism and solidarity are established, and citizens of different nationalities, religions and sects live in peace, has a moral right to give such a decree. The promotion of the Islamic Solidarity initiative is related to the challenges of the present and controversial processes that take place because of various reasons in the Islamic world. As it is seen here, the importance of Azerbaijan’s reputation in the Islamic world, as well as the need to strengthen the solidarity of Islamic countries, as well as the actuality of holding the Islamic Solidarity Games in Baku, the capital of the Republic of Azerbaijan in 2017, have been extensively and logically expressed in this decree. With Islamic solidarity policy, Azerbaijan, as unifying facility of the Islamic world, confirms that these religious values are indeed, humanistic, moral values and reinforces belief to being of these ideas are an effective means of creating a shared living and stability environment not only in the Islamic geography but also in the entire world. Azerbaijan, which has created a partnership of cultures and ideas between East and West, fulfills the function of a of solidarity bridge, thus demonstrates its commitment to universal values, as well as its commitment to the highest values of the Islamic religion, which had a special place in the past and continuing to keep its value today. Thus, Azerbaijan uses all the means to establish steady stability in a globalizing world and propagates the peacekeeping, reconciliatory position in a unique way that is essential for today.
We suppose that this humanist initiative of the President of Azerbaijan, Mr. Ilham Aliyev, will promote the expansion of cooperation relationship between Muslim countries in the world and further strengthening of the Islamic solidarity. The strengthening of Islamic solidarity, in its turn, will play an important role in ensuring tranquility and peace in the Middle East and other regions.
Economic Growth of Ukraine Depends on Completing Pending Reforms Quickly
Ukraine’s economy grew by 2.5 percent in 2017, the second year of modest growth, according to the World Bank’s latest Ukraine Economic Update. Growth in manufacturing, services, and construction was robust, but weaknesses in the agriculture and mining sectors, together with delays in key reforms to further strengthen investor confidence contributed to the modest overall growth performance.
“Faster growth is needed to improve living standards for the people of Ukraine who continue to hurt from the economic crisis of 2014-2015,” said Satu Kahkonen, World Bank Country Director for Belarus, Moldova and Ukraine. “This will require decisive measures in the next few months to complete pending reforms to bolster investor confidence and safeguard macroeconomic stability.”
Economic growth is projected at 3.5 percent in 2018 if pending reforms in anticorruption, land markets, state-owned banks, and privatization can be advanced in the next few months. This would provide an important signal to investors. If reforms are delayed, growth could drop below current levels in an uncertain macroeconomic environment as financing risks rapidly increase.
Ukraine faces major financing needs to repay public debt and fiscal pressures from higher public sector wages and social benefits in 2018 and 2019. Mobilizing adequate international financing by completing pending reforms in the months ahead will be important to maintain macroeconomic stability.
Meeting the fiscal deficit target of 2.5 percent of GDP in 2018 will require improving targeting of housing utility subsidies, making further wage increases contingent on measures to optimize the school and hospital network and public-sector staffing, and identifying affordable options to update public sector pensions.
Fiscal Pressures and Reform Options …
According to the World Bank’s Special Focus Note on fiscal pressures and reform options, Ukraine has made progress in reducing its large public spending since 2014. However, sustaining these gains while also improving the effectiveness of public services will require implementation of reforms in education, health, public administration, pensions, and social assistance in a fiscally affordable manner.
Public expenditures increased significantly in 2017, by 11.7 percent in real terms, reaching 41.5 percent of GDP, due to the doubling of the minimum wage and over 40 percent increase in wages of teachers and doctors. Spending on social programs also increased.
The recently adopted reforms in education, health, and public administration seek to improve compensation for teachers, doctors, and public servants to strengthen incentives and attract quality personnel. Achieving this in a fiscally affordable manner will require coordinating further increases in salaries with time-bound measures to optimize staffing and the school and hospital network.
The social assistance package in Ukraine is not only fiscally costly—costing 5 percent of GDP in 2017, but is also poorly targeted—with only 30 percent of assistance going to the bottom 20 percent of the population. Fixing this will require improved targeting of the large HUS program.
The recently adopted pension reform helped improve adequacy of benefits and stabilize fiscal costs. Additional initiatives going forward should avoid undermining these core objectives of the pension system. The timeline to create a funded pillar system by January 2019 needs to be reconsidered since this will undermine contributions to the pay-as-you-go system, create contingent fiscal liabilities, and face inadequate availability financial instruments.
Since May 2014, the World Bank Group has provided a total of more than US$5 billion to Ukraine (including 4 development policy loans, 7 investment operations and 1 guarantee) from the International Bank for Reconstruction and Development (IBRD).
The World Bank’s current investment project portfolio in Ukraine amounts to US$2.5 billion. Investments support improving basic public services that directly benefit ordinary people in areas such as water supply, sanitation, heating, power, roads, social protection and healthcare, as well as private sector development. Since Ukraine joined the World Bank in 1992, the Bank’s commitments to the country have totaled over US$12 billion in about 70 projects and programs.
Baltic States: Missed opportunities in global politics
We are living in the world where the facts “who makes” and “where it is made” are much more important than “what for” issue. Nowadays the world political scene is divided between superpowers supported by their allies. In order to punish each other for having opposite views the sides criticize any step made by the opponent.
Unfortunately, this happens even in case of evident necessity. It is not the secret that the modern system of international security is unable to perform all demanded functions any more. It needs to be reformed. Another question is who and where will decide.
The most likely political platforms for this are the United Nation Organization and OSCE. But the preparatory stage for any new decision should become different forums and conferences, such as the Munich Security Conference and the Moscow International Conference on Security.
This year the Munich Security Conference took place on February 16-18. More than 30 heads of state and government and over 100 cabinet ministers from across the globe came together at the forum for discussions on major international security challenges. As far as the Baltic States concerns, President of Estonia, as well as Lithuanian and Latvian ministers of defence did not miss the event because it was of great importance for the future of their countries and all Europe.
Just another situation developed in March. In Moscow an annual International Conference on Security was held on April 4-5. The fight against terrorism and other pressing security challenges were one the agenda. There is not a single person who is not affected by the discussed topics.
Many European countries considered it unnecessary to visit the event. It makes no sense to blame them for this choice. They have a strong and common view on what is happening in the world. But if abstract from the current geopolitical situation and confrontation between Russia and the West, politicians should see such kind of forums as a chance to find even weak possibilities to make the world safer. Probably the main reason for not attending the event is in the fact that politicians forgot how to listen to each other. They forgot that only discussing controversial issues makes possible to reach a consensus.
Another issue that deserves attention is the list of participants, which is of great interest to the analysts. According to the Russia’s Defense Ministry, representatives from at least 95 countries, three deputy prime ministers, 30 defense ministers, 15 chiefs of staff, 10 international organizations and military delegations have come to participate in the International Conference on Security. They include defense ministers of India, South Africa, Iran, Iraq, Pakistan, Vietnam, Azerbaijan, Belarus, China, Armenia, Mozambique, Serbia, and Israel. Thus, almost half of the UN member-states (total number is 193) sent representatives to the Conference.
It becomes evident that Russia really has powerful partners and allies that are ready to discuss even difficult questions and find mutually beneficial solutions. Those who came do not necessarily agree with Moscow and support its foreign policy but they clearly understand that unfortunately without Russia it is impossible to improve the International Security system.
This fact admitted Thomas Greminger, secretary-general for the Organization for Security and Co-operation in Europe. He stressed that Russia is a key partner in issues of the European security. But the Baltic States blinded by hatred to Russia ignore ignored the event thus putting political ambitions higher than common sense.
It is obvious that Russia is not satisfied with NATO’s actions near its borders. NATO in its turn disputes the lawfulness of Russia’s behavior. Every day confrontation becomes harder and leads to the arms race. The only way out is to discuss things and find the way out. The Baltic States as usual lost the possibility to express their position on key international security issues and be the active actors in global politics.
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