The Istanbul Decennial Anniversary Summit was an important marker for the Black Sea Economic Cooperation. The organization that started out as a sub-regional network is today perceived as a viable mechanism for achieving sustainable economic development around the Black Sea. BSEC member states are determined to move toward implementation of joint economic projects and programs. By a mandate of the organization's Heads of State, the BSEC is now also charged with exploring ways of strengthening security and stability in our region.

During these six months of Armenia's chairmanship, we will continue to build on the recent achievements in implementation of the BSEC collective strategy - the Economic Agenda - while also focusing on the following two directions:

- Promotion of cooperation in science and technology,
- Strengthening relations between the BSEC and EU.

As the European Union embarks on the road to enlargement, the EU and BSEC will become more than just neighbors. With enlargement will come even greater common problems in need of common solutions. It is fortunate that during these next months, the Hellenic Republic, the only EU member among the BSEC countries, will assume the presidency of the EU. Given the considerable frequency with which discussions at different BSEC fora have been dedicated to the development of the BSEC-EU relationship, this is a perfect historic moment to consider the creation of some institutional links between BSEC and EU and the development of a pragmatic, operational partnership. The Armenian Chairmanship is ready to cooperate closely with the Hellenic Republic, in elaborating ways to enhance the BSEC-EU partnership.

BSEC is increasingly gaining international authority and credibility. The adoption of the resolution on UN-BSEC cooperation at the 57th session of the United Nations General Assembly will further enhance BSEC's international role. The Armenian Chairmanship attaches great importance to strengthening the bonds of cooperation between BSEC and other international and regional partner organizations, as well as to consolidating the links with the Observer States. On the basis of the mandate issued by the seventh Meeting of the BSEC Council of Ministers of Foreign Affairs, Armenia will hold consultations with the Federal Republic of Yugoslavia and the Former Yugoslav Republic of Macedonia, two eligible candidates for full-fledged membership in BSEC, with a view to facilitating their admission process.

The priority areas of the program of the Armenian Chairmanship are reflected in the calendar of events for the next six months:

Science and Technology

It is widely recognized that the BSEC region possesses solid scientific and technological potential of international significance. In the new century, BSEC's priority should be to take advantage of the latest scientific achievements. As is stressed in the BSEC Economic Agenda, "innovative technologies offer multiple opportunities for redesigning existing products and processes with reduced amounts of resources, creating products more attractive for the consumer and more competitive in the market." For the countries in the Black Sea region, computers and the Internet are the cheap and easy fuel necessary to jumpstart economies and fast forward social, educational and civic engagement. In the Black Sea community, where political differences all too often displace common interests, information technology can be the elixir that will strengthen the hand of those in business, society and government who are interested in transcending borders and problems to achieve personal and common goals.

To give a new impetus to cooperation in this area, Armenia proposes to convene the First BSEC Ministerial Conference on Science and Technology, scheduled to be held on 7-8 April 2003 in Yerevan. The meeting aimed at fostering cooperation in "identifying new forms and directions of regional scientific and technological collaboration, in exchanging of information and experience, sharing best practices and undertaking joint projects of common interest to all member states." Among other issues, the Conference may address effective application of international scientific and technical achievements and utilization of the scientific potential of BSEC member states to ensure their sustained economic development and future prosperity. In implementation of this project, the Chairmanship will rely upon the close cooperation with the International Center on Black Sea Studies (ICBSS).


Banking and Finance

The field of banking and finance is of major importance for the economic progress of BSEC member states. At its next meeting (11-12 of December 2002) the Working Group on Banking and Finance will consider the proposal on establishing a consolidated budget of the BSEC organization combining the existing budgets of the BSEC international secretariat, the reserve fund and the BSEC Project Development Fund. This is to ensure better transparency and management of available financial resources. The Working Group is also expected to explore an appropriate date for launching the operations of the Project Development Fund, as well as to suggest a sound procedure concerning the appointment of representatives of Member States to the Steering Committee, which will run the Fund.

Combating Organized Crime

Armenia always attaches great importance to promotion of joint efforts in combating organized crime, particularly terrorism, money laundering, illegal migration, weapons and radioactive materials illegal trafficking. Development of cooperation in this area is also in line with the mandate given by the Istanbul Decennial Summit Declaration on elaboration of the ways and means of enhancing contribution of the BSEC to strengthening security and stability in the region. The Working Group on Combating Crime at its next meeting in Moscow (10-11 of December, 2002) is expected to finalize the Additional Protocol (concerning cooperation in Combating International Terrorism) to the Agreement among the Governments of the BSEC Participating States on Cooperation in Combating Crime, in particular in its organized forms.

Energy

Major progress in the field of energy has been achieved so far in the project of Interconnection of National Electric Grids of the BSEC Member States. The next meeting of the Working Group on Energy (26-27 of February, 2002) is called upon to review the situation in this field and define respective measures to promote and enhance the cooperation in this field and especially in the Caucasus Region. The power systems of Russia, Bulgaria and Turkey have synchronized the work of their electric grids to complete the project of the Black Sea Electric Ring. Some steps toward improving the cooperation between Russian, Georgia, Armenia and Azerbaijan have been made with a view to facilitate trade in electricity. During its Chairmanship Armenia will further promote the joint efforts on the interconnection of electric grid in the Caucasus region. The meeting of the Working Group is also supposed to launch an exchange of views on the energy transit potential of the Black Sea Region in order to provide the Member States with relevant suggestions on how they could benefit from the developments in this sphere.

Exchange of Statistical Data and Economic Information

Effective cooperation in the exchange of statistical data and economic cooperation within the BSEC frame will enable promotion of faster transition of enterprises and banking institutions of the BSEC countries to the common international accounting standards and development of relevant economic indicators. During the 7-th Meeting of the BSEC Council of the Ministers of Foreign Affairs Armenia expressed its intention to be appointed Country-Coordinator for the Working Group on Exchange of Statistical Data and Economic Information for the term November 2002-October 2004. The meeting of the Working Group to be held on 19-23 of March 2003 will discuss issues concerning the publications titled "Social and Economic Indicators of the BSEC countries" and "Turkey's foreign trade with the BSEC countries", as well as the alternative proposals for the effective exchange of statistical data and economic information.

Institutional Renewal and Governance

The concept of "good governance" underlies all co-operation and assistance activities and all projects which bring BSEC member states together. The concept applies to all member states' structures. It also extends to good management of the Institution and the increased attachment to cross-disciplinary internal aspects in the conduct of projects and programmes. The Armenian Chairmanship supports the project on institutional renewal and governance, which is to be implemented in cooperation with the ICBSS and with the financial support of the Friedrich-Ebert Foundation, in line with the relevant chapter of the BSEC Economic Agenda. The project is to be implemented starting from the beginning of the year 2003 in Armenia, Azerbaijan and Georgia. The first workshop on Good Governance in a Knowledge-Based Society will be held in Yerevan, in March 2003.

Agriculture and Food Security

The BSEC Ministerial Council at its last meeting expressed appreciation that the cooperation between the BSEC and the UN Food and Agriculture Organization has reached a new qualitative level especially after the approval of the Project on "Institutional Strengthening to Facilitate Intra- and Inter-regional Agricultural Trade of the BSEC Member States", within the framework of the Technical Cooperation Programme of the FAO. In pursuing the successful implementation of the Project, the Chairmanship supports organization of the BSEC Workshop on Agricultural and Trade Policy in collaboration with the UN FAO during March 2003.


Promotion of the BSEC image

The Council of Ministers of Foreign Affairs at the Meeting in Tirana reiterated its backing of the project of holding the Black Sea Champions' Cup as an event that raises public awareness of BSEC. The Chairmanship will lend its support to implementation of this project and to this end welcomes convening of the Meeting of the National Football Associations of the BSEC countries on 18-19 of December 2002 at BSEC Headquarters.