TRANSFORMING MONTENEGRO THROUGH ASSISTANCE

UNCLAS SECTION 01 OF 02 BELGRADE 000590 SIPDIS SIPDIS DEPARTMENT PASS TO USAID E.O. 12958: N/A TAGS: EAID PGOV MW SR SUBJECT: TRANSFORMING MONTENEGRO THROUGH ASSISTANCE ¶1. Summary: Supporting Montenegro's aspirations to become an open-market, Western democracy underlies all USG assistance to the Republic and its people. We are convinced that a strong economy is the best support for a strong democracy, and we therefore have increased our activities for development. While many challenges to Montenegro's nascent democracy remain, the half-dozen recent examples reported here typify the USG's impact, in close cooperation with local partners, in transforming Montenegro into a more prosperous, democratic, and safer place. End summary. Stopping Trafficking in Persons -------------- ¶2. Using SEED assistance funds, the Department of State supported the seconding of an experienced U.S. Federal Organized Crime Prosecutor as an advisor for a six-month TDY with the Office of the State Prosecutor in Montenegro. Trafficking in Persons (TIP) has been a major legal and political challenge for Montenegro, and two years ago it was at risk of receiving a failing ("Tier III") grade for its lack of effort in the TIP fight. ¶3. Concluding his tour, the U.S. Federal Prosecutor observed "There has been significant progress in this area and I am optimistic that it will continue. The courts have reacted to the aggressive pursuit of these cases by our advisor by imposing stiff sentences. At my urging, in one case the prosecutors office appealed sentences imposed by the trial court because they were too lenient. The Court of Appeals agreed and ordered higher sentences." This USD 150,000 project, executed by the U.S. Department of Justice, has helped turn around the picture on TIP in Montenegro -- before the project, only one TIP conviction had ever been pronounced in Montenegro. During the project, six convictions were made, with the length of sentences rising five-fold. Fighting Organized Crime -------------- ¶4. Our advisor also cited significant progress in fighting organized crime as well. Arrests have been made in the August 2005 gangland slaying of a deputy police chief and in high profile cases that had been investigated by the slain police officer. Ensuring a Fair Independence Referendum Campaign -------------- --- ¶5. On May 21, Montenegrin voters will go to the polls to decide whether to dissolve the State Union of Serbia and �00A;Montenegro. This contentious issue has left the two opposing blocs at loggerheads, willing to suspect the other of underhanded tricks to win the vote. To help calm tensions, USAID grantee, the National Democratic Institute (NDI) is working with local NGO the Center for Democratic Transition (CDT). CDT will monitor the referendum, put 750 observers in the field on polling day to watch 1100 polling sites - the largest single observation mission in Montenegro. CDT is also pushing the two opposing political blocs to sign a code of campaign conduct. Making Bays and Rivers Safe -------------- ¶6. In 2005, the SaM military donated an unneeded naval mine tender boat to the Regional Center for Underwater Demining in Montenegro (RCUD). To carry out its new tasks as the world's first civilian vessel for humanitarian underwater demining, the boat needed rehabilitation and advanced mine- hunting technology. With $40,000 in U.S. assistance, the vessel was refurbished and will enter service this summer with many of the same capabilities as the U.S. Navy's new submersible mine reconnaissance system. Ending Poaching -------------- ¶7. Tourism accounts for over half of Montenegro's export earnings. A major draw is fresh local seafood. The latter had been endangered by foreign poaching, which Montenegro was unable to stop. The Montenegro Border Security Program (MBSP),a SEED assistance project run by the Department of Homeland Security, supplied USD 330,000 in patrol boats and training to Montenegro's Maritime Unit. This has allowed Montenegrin authorities to virtually eliminate poaching of fish supplies. Spreading the Benefits from Tourism -------------- BELGRADE 00000590 002 OF 002 ¶8. U.S. assistance funded a souvenir and handicrafts fair that displayed over 500 crafts from 44 exhibitors/ entrepreneurs from various parts of Montenegro. This event, the first of its kind, led to sales and contracts with tourism related firms for the future supply of souvenir craft items, and revitalizing the lagging economy in the Northern Montenegro. Small Business Development - Ice Sculpting -------------- ¶9. A Consulate Podgorica Public Diplomacy program hosted world class ice sculptor and entrepreneur to highlight the income potential of ice sculpting in the hospitality industry. A number of qualified Montenegrin artists were identified, trained, and equipped as new small business enterpreneurs. Improving Copyright Protection -------------- 10.A low-cost SEED-funded speaker program in 2005 brought two U.S. artists to Montenegro to highlight the importance of intellectual property rights (IPR) from an artist's perspective. Montenegrin artists responded by launching a new organization to advocate protection of their rights under Montenegro's new intellectual property law, multiplying the effect of the GoM's own crackdown on IPR violations. Marketing Specialized Agricultural Products -------------- ¶11. USAID's Montenegro Competitiveness Project (MCP) assisted three small companies trading in herbal and forest products. Our assistance helped one of the companies identify a potential U.S. buyer and obtain needed FDA registration. This led to the formation of a Medicinal Herb Consortium that exported Euros 42,952 worth of products to the U.S. in February of 2006. Bankruptcy Law Fixed After Visit From U.S. Judge -------------- -------------- 12.An solid business bankruptcy law drafted with USAID assistance was gutted last December when the Montenegrin courts removed the law's economic incentive for prompt and professional supervision by the appointed bankruptcy supervisors. A week-long visit in March by a U.S. bankruptcy judge with past experience in the Balkans and Montenegro enabled us to get the law back on track. POLT