The series of crises and disruptions the world has been through in the recent past, particularly the COVID pandemic, the War in Ukraine and other conflicts, the hybrid threats, the climate change, have heavily affected activities nationally and internationally as well, not least those in the area of economy and the functioning of the system of international economic relations. The digital revolution, in its turn, is radically impacting and changing all walks of human life.
All these developments have brought forcefully to the fore the importance of the resilience of our societies and the need of resolute action in this respect, both at local and national levels and at the regional/international ones. Opinions have emerged at the same time that globalization came to an end with the world, including the economic one, entering an era of fragmentation and therefore the way to resilience can only be through less dependencies, more protectionism, decupling, etc. It is clear however, that globalization will continue to be there, within the new paradigm, of course, of digitalization - and by way of consequence, interdependencies will also continue and become even stronger. The efforts should therefore be concentrated on how to get to and build resilient interdependencies and there through resilient, sustainable economies and development. That can only be done through cooperation be it bilateral or at regional/ international/global level. The already existing international/ regional organizations are of key importance in this respect, and every effort should be made to enable them to act accordingly. The way ahead is building upon their past experiences and lessons learned, while necessarily adapting themselves to the new realities.
That is the case of the wider Black Sea region as well which since 1992 has been availing of an institutional framework for cooperation - the Organization of the Black Sea Economic Cooperation (BSEC) - which over the years has asserted itself as a key factor in promoting economic cooperation in the region and in increasing the awareness of the importance of the Black Sea Area for the global economy as a whole.
More than three decades of existence are an important time for any regional organization, especially one as BSEC, which operates in a very complex region and has a membership which is in itself a “microcosm” with many sensitivities. It is indeed an economic organization, but the definition of economic given by BSEC’s Charter is quite comprehensive, covering areas such as economic development, trade and services, finance and banking, transport, agriculture, energy, environment, customs and SMEs, tourism, culture, education, science and technology and even good governance, emergency assistance and combatting organized crime; the list is not exhaustive. In addition, BSEC is covering an area of paramount geostrategic importance as it actually forms the bridge between Europe and Asia, while at the same time it is a significant trade and energy hub and a vital transportation crossroads between North-South and East-West.
A series of initiatives developed within the BSEC framework and concrete results that have been so far registered by the Organization have certainly enhanced its relevance, all the more so when considering the economic dimension of security which can only last through cooperation. Work towards developing infrastructure in the region through projects like the Black Sea Ring High Way or the Motorways of the Sea, promoting trade facilitation, the setting up of a BSEC Permit System to facilitate road border crossing and transport of goods, projects in the areas like environment, tourism or agriculture are relevant examples in this respect.
A particular attention has been paid by BSEC all throughout its activity, to closely interact with the other members of the BSEC Family( BSTDB,PUBSEC,ICBSS) and to develop an as close as possible cooperation with other regional or international organizations, particularly the European Union, the Central European Initiative(CEI), the Regional Cooperation Center (RCC), The Adriatic Ionic Initiative(AII) the UN System (UN Economic Commission for Europe, , UNTourism, UNIDO, FAO, UNOPS, the World Bank) the International Transport Forum/OECD.
Certainly the capacity and ability of the Organization to work towards fulfilling its responsibilities cannot be dissociated of developments and challenges at regional but also global level. They did affect the activity of the Organization as well.
Indeed, we are living in a multi-crisis world and many challenges, the serious economic and social consequences of which are already being strongly felt at both international and regional levels. In today’s globalized economy, such effects extend far beyond immediate borders, impacting even distant countries and societies— threatening their economic and social stability and affecting their security.
Unfortunately and beyond anything else, in our region the most serious challenge has by far been, now for more than three years, the war in Ukraine. It does not bode at all well with the principles and objectives of cooperation laid down in the BSEC Charter. It has had a profound impact on the entire region and individual countries alike—on their economies, their security, and most importantly, on their citizens. In addition to the extensive destruction of vital infrastructure and the tragic loss of human lives, this war has triggered Europe’s largest refugee crisis since World War II. These adverse developments have reverberated across Europe and beyond. Energy markets have experienced extreme volatility—first with reduced demand and supply contraction, followed by a demand surge that outpaced supply. Transport and trade have also suffered. And, last but not least, the environmental consequences of these broad challenges will affect our region for decades to come.
Recent debates and conferences —both within the framework of specialized United Nations Agencies and at the national level across all countries in our region—have on the other hand reached an alarming conclusion: despite numerous strenuous efforts at both the international and national levels, the world is significantly behind in achieving the Sustainable Development Goals (SDGs) set by the international community.
It is however encouraging to see that despite such a challenging background and after a slow down of its activity along most of 2022 as a direct consequence of the outbreak of the war in Ukraine, the BSEC Organization while still facing challenges has been able to gradually resume its activity almost in full and even make some significant advances such as for example the adoption by consensus in December 2023 of a revised “BSEC Economic Agenda: Towards a Sustainable Future of the Wider Black Sea Area “that sets strategy framework and priority areas of action for the following decade.
That was the result and proof at the same time of the awareness by all BSEC Member States about the need of preserving the relevance and importance of BSEC Organization and of the need not only to continue but also to strengthen it further as an indispensable tool for cooperation in the region aimed at building up sustainable and resilient economies in all the Member States. In other words, the awareness is there that there is no real alternative to “Cooperation”, both economic, cultural and political as a means to facing the various challenges of the region. Indeed, experience has so far clearly shown that strong economic relations and cooperation, has not only been beneficial in terms of economic development but it also helped promoting stability, mutual understanding and good neighborly relations, i.e. security.
It was therefore natural that the new/revised BSEC Economic Agenda established as general guidelines, a) pursuing sustainable development, b) strengthening the project oriented dimension of the BSEC Organization and c) cooperation with International and regional organizations and institutions. Further on the Agenda establishes a set of priority areas/goals of action, among which: intensification of intra-regional trade and investments; establishment of efficient, sustainable and safe transport network; sustainable Energy and development of a Black Sea energy market; environment and climate action; support for sustainable development of the SMEs sector; closer cooperation in banking and finance; sustainable information society and communication technology infrastructure; good governance and rule of law, etc.
Some additional elements as regards the areas of trade and transport facilitation that have long been a cornerstone of BSEC’s work. In response to regional needs, and with the support of international partners, BSEC has initiated several projects such as a “Regional Trade Facilitation Strategy for the BSEC Region”, a draft “Framework for BSEC Single Window Cooperation,” and “Framework for BSEC e-Commerce Cooperation”, with the last being already adopted. All these instruments aim to enhance the efficiency and integration of regional trade.
The focus has to be now on the implementation of the objectives set forth in the Economic Agenda. For that the Organization is determined to make additional and resolute efforts to further increase the efficiency of its activity. A first and important step already done in this direction is the adaptation of its program of work in line with the provisions of that Agenda.
The priorities, programs of work and calendars of activities of the rotating Chairmanships-in-Office of BSEC as well as of the country coordinators of each working group are also following the same path.
Finally, the successful implementation of the BSEC Economic Agenda, requires an appropriate monitoring of the process. It is for this reason that the BSEC Council of Ministers, in its meeting of June 2024, established a follow up mechanism consisting mainly in elaboration by the BSEC Secretary General of annual reports which, while reviewing and evaluating how the process went, are expected to provide recommendation for the way ahead. A mid-term evaluation is also foreseen to take place in the year 2029.
That being said, it is important to underline that BSEC Organization does not operate in a vacuum.
First, beside the Organization proper (and its structure- Council of Ministers, Committee of Senior Officials, Working Groups, Permanent International Secretariat- PERMIS ) , the BSEC Family also includes four autonomous bodies with which it interact closely (the Parliamentary Assembly, the Black Sea Trade and Development Bank-BSTDB, the International Centre for Black Sea Studies- ICBSS and the BSEC Business Council). One particular word on the BSTDB: it has been instrumental in supporting valuable sustainable development and trade promoting projects in the region, including the post conflict reconstruction in Ukraine. The Bank provides crucial trade and project financing, guarantees, and equity support to public and private entities in member countries.
Second, while availing of its own Project Development Fund (PDF), BSEC partners on joint projects with international organizations such as the European Union and UN Office for Projects Service.
Third and final, and as already mentioned, BSEC has been actively promoting cooperation in areas of common interest with other regional and international organizations interested about and active in the Black Sea region. The need of an appropriate correlation and coordination among them is all the more evident in such a context. That is why BSEC has been an initiator of periodical coordination meetings among these organizations aimed primarily to build up synergies and win-win undertakings. One remark in this context: The European Commission recently adopted and published a Communication on a new “European Union”s strategic approach to the Black Sea region” which deserves to be welcome. Welcoming also the fact that the EU envisages to implement this strategy in close cooperation with other regional or international partners, it is worth underlining the need to duly taking into account those from the Black Sea region proper, of which the most relevant and institutionally appropriately structured one is the BSEC Organization. Equally important and necessary for a successful endeavor is a win-win approach which, inter alia translates into duly consider the initiatives and projects coming from the countries and the organizations of the region. Not least, it is important to take into account and build upon what has already been done in the region, including lessons learned there from. One such lesson would for example be that enhancing connectivity in the most comprehensive way possible is of key importance but that does not mean merely infrastructure. Connectivity of minds are essential as well.
Against all this background, one thing is more than clear: there is no real alternative to cooperation, be it bilateral or regional/multilateral, first in economy, but equally in culture, education or science and technology—if we are to achieve resilience, sustainability, prosperity, and ultimately, peace and security. It is imperative that we fully harness this potential for the benefit of all our peoples. These were the principles laid down at the foundation of the Black Sea Economic Cooperation Organization- BSEC.