Dismantling Former Yugoslavia, Recolonizing Bosnia-Herzegovina
by Michel Chossudovsky
Covert Action Quarterly, Spring 1996
Centre for Research on Globalisation (CRG), globalresearch.ca, 19 February 2002
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From Bosnia to Kosovo
Economic and political dislocation has been the pattern in the various stages of the Balkans war: from the initial military intervention of NATO in Bosnia in 1992 to the bombing of Yugoslavia on "humanitarian grounds" in 1999. Bosnia and Kosovo are stages in the recolonization of the Balkans. The pattern of intervention under NATO guns in Bosnia under the Dayton accords has been replicated in Kosovo under the formal mandate of United Nations "peace-keeping".
In post-war Kosovo, State terror and the "free market" go hand in hand. In close consultation with NATO, the World Bank had carefully analyzed the consequences of an eventual military intervention leading to the occupation of Kosovo. Almost a year prior to onslaught of the war, the World Bank had conducted relevant "simulations" which "anticipated the possibility of an emergency scenario arising out of the tensions in Kosovo". 58 This suggests that NATO had already briefed the World Bank at an early stage of military planning.
While the bombing was still ongoing, the World Bank and the European Commission had been granted a special mandate for "coordinating donors' economic assistance in the Balkans"59 The underlying terms of reference did not exclude Yugoslavia from receiving donor support. It was, however, clearly stipulated that Belgrade would be eligible for reconstruction loans "once political conditions there change".60.
In the wake of the bombings, "free market reforms" were imposed on Kosovo largely replicating the clauses of the Rambouillet agreement which in turn had in part been modeled on the Dayton Accords imposed on Bosnia. Article I (Chapter 4a) of the Rambouillet Agreement stipulated that: "The economy of Kosovo shall function in accordance with free market principles".
Along with NATO troops, an army of lawyers and consultants was sent into Kosovo under World Bank auspices. Their mandate: create an "enabling environment" for foreign capital and ensure Kosovo’s speedy transition to a "thriving, open and transparent market economy." 61 In turn, the Kosovo Liberation Army (KLA) provisional government had been called upon by the donor community to "establish transparent, effective and sustainable institutions" 62 The extensive links of the KLA to organized crime and the Balkans narcotics trade was not seen by the "international community" as an obstacle to the installation of "democracy" and "good governance".
In occupied Kosovo under UN mandate, the management of State owned enterprises and public utilities was taken over by appointees of the Kosovo Liberation Army (KLA). The leaders of the Provisional Government of Kosovo (PGK) had become "the brokers" of multinational capital committed to handing over the Kosovar economy at bargain prices to foreign investors.
Meanwhile, Yugoslav State banks operating in Pristina had been closed down. The Deutschmark was adopted as legal tender and almost the entire banking system in Kosovo was handed over to Germany’s Commerzbank A.G which gained full control over commercial banking functions for the province including money transfers and foreign exchange transactions.63
Taking over Kosovo's Mineral Wealth
Under Western military occupation, Kosovo’s extensive wealth in mineral resources and coal was slated to be auctioned off at bargain prices to foreign capital. Prior to the bombings, Western investors already had their eyes riveted on the massive Trepca mining complex which constitutes "the most valuable piece of real estate in the Balkans, worth at least $5 billion." 64 The Trepca complex not only includes copper and large reserves of zinc but also cadmium, gold, and silver. It has several smelting plants, 17 metal treatment sites, a power plant and Yugoslavia’s largest battery plant. Northern Kosovo also has estimated reserves of 17 billion tons of coal and lignite.
Barely a month after Kosovo's military occupation under NATO guns, the head of the United Nations Mission in Kosovo (UNMIK) Bernard Kouchner issued a decree to the effect that: "UNMIK shall administer movable or immovable property, including monetary accounts, and other property of, or registered in the name of the Federal Republic of Yugoslavia or the Republic of Serbia or any of its organs, which is in the territory of Kosovo".65.
No time was lost, a few months after the military occupation of Kosovo, the International Crisis Group (ICG) a think tank supported by Financier George Soros, issued a paper on "Trepca: Making Sense of the Labyrinth" which advised the United Nations Mission in Kosovo (UNMIK) "to take over the Trepca mining complex from the Serbs as quickly as possible and explained how this should be done".66 And in August 2000, UNMIK Head Bernard Kouchner sent in heavily armed "peacekeepers" ("wearing surgical masks against toxic smoke") to occupy the mine on the pretense that it was creating an environmental hazard through excessive air pollution.
Meanwhile, the United Nations had handed over the management of the entire Trepca complex to a Western consortium. With a stake in the Trepca deal was Morrison Knudsen International, now regrouped with Rayethon Engineering and Construction. The new conglomerate is the Washington Group, one of the World's most powerful engineering and construction firms as well as a major Defense contractor in the US. Junior partners in the deal are TEC-Ingenierie of France and Sweden's consulting outfit Boliden Contech.
The Installation of a Mafia State
While Financier George Soros was investing money in Kosovo's reconstruction, the George Soros Foundation for an Open Society had opened a branch office in Pristina establishing the Kosovo Foundation for an Open Society (KFOS) as part of the Soros’ network of "non-profit foundations" in the Balkans, Eastern Europe and the former Soviet Union. Together with the World Bank’s Post Conflict Trust Fund, the Kosovo Open Society Foundation (KOSF) was providing "targeted support" for "the development of local governments to allow them to serve their communities in a transparent, fair, and accountable manner."67 Since most of these local governments are in the hands of the KLA which has extensive links to organized crime, this program is unlikely to meet its declared objective.68
In turn, "strong economic medicine" imposed by external creditors has contribute to further boosting a criminal economy (already firmly implanted in Albania) which feeds on poverty and economic dislocation.
With Albania and Kosovo at the hub of Balkans drug trade, Kosovo was also slated to reimburse foreign creditors through the laundering of dirty money. Narco-dollars will be recycled towards servicing Kosovo's debt as well as "financing" the costs of "reconstruction". The lucrative flow of narco-dollars thus ensures that foreign investors involved in the "reconstruction" programme will be able reap substantial returns.
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