Imants Holmquist
Scandinavian 344, Spring 2001
Introduction --Economic ties --Society -- Security --Conclusion -- Notes -- Annotated Bibliography
Nordic-Baltic
relations over the past three years have been both continually
strong and rapidly developing in terms of economy, society and
governmental relations. As Brian Hodges states: “The
importance of establishing a stable relationship between the
Nordic countries and the Baltic states is central to the Baltic
nations being able to enter Western Europe.”[1] This has certainly been
realized to a greater extent from 1998-2001. There have been
considerable advances in almost every area and developments in
perhaps the most important area, the economy, have been very
substantial. The contacts between Nordic and Baltic countries are
based mainly in multilateral ties formed by international
organizations. Groups of political officials, businessmen
and concerned citizens joined together with the intent of
embracing co-operation in the region have been the driving force
in developing unity in a vast array of fields. It is
through these organizations and their continued evolution that
the Baltic countries are being brought closer and closer to
becoming fully developed and integrated Western European nations.
Historically, the Baltic countries have always done a large part
of their trade with the Nordic countries. The proximity of
the Baltic countries to the Nordic countries, as well as the
ports which serve as through routes to Russia and other former
Soviet Socialist Republics have played an important role in the
development of the economies. Through the 1990’s the
rebuilding of these trade linkages to the Nordic countries (which
had been for the most part shut down by the Soviets from
1944-1990) has been a priority. In 1991 exports to Russia
made up 90% of all Baltic Exports, today this has decreased to a
mere 10 percent.[2] The decrease in trade with Russia led
to an initial decrease in GDP through the early 1990’s, but
as ties with Nordic countries strengthened so did the Baltic
economies. “For Scandinavia, the trade and
investment opportunities on the eastern seaboard of the Baltic
have fuelled talk of a 21st century Hanseatic League.”[3] Though this statement
may be a little extreme, it shows the feeling of the region as
well as a positive outlook on future co-operation. The
business network in the region has grown especially from 1998 to
2001 to accommodate an environment that fosters economic
development. As the U.S Embassy in Latvia reports: “There
are no controls on import, export, or use and conversion of
foreign currencies, which makes investment and repatriation of
profits easy.”[4] The clearest
indication of the Baltic’s prime business climate however,
continues to be the increase of inward Foreign Direct Investment
to the Baltic countries.
The importance of FDI to the Baltic countries from the Nordic Countries has been highlighted at numerous conferences over the past three years including the OECD Conference On Fiscal Incentives and Competition For Foreign Direct Investment in The Baltic States May, 2000 and the BSRC meeting 2000.[5] The high level of FDI from Nordic to Baltic countries is perhaps best exemplified by the Estonian case in which, according to the Bank of Estonia, Nordic FDI accounted for as much as 78 percent of all inward FDI to Estonia in the year 2000. In Latvia and Lithuania the figure is a still high 30-40 percent of GDP[6]. The explanation for this is the increase in economic stability and an increase in governmental Cooperation.
Though trade between Baltic and Nordic countries has been steadily increasing the problem of unemployment still rattles the Baltic. The level of unemployment reached as high as 12% in 2000 and has not lowered since.[7] The past three years have brought further steps towards the transition from an eastern market economy to a western oriented economy. There are however many obstacles still to tackle including huge fiscal deficits, staggering unemployment and under paid skilled labor. Though economic ties have gained in strength during the late nineties, clearly the continued development of Baltic Economies will rely heavily on their relations with the Nordic Countries over the coming years.
The Societies of the Nordic and Baltic countries have many similarities, which have aided connections between them. One of the most important similarities is the cultural roots the nations share. The largest and most active cultural organization has been Ars-Baltica, which is aimed at strengthening cultural identity and facilitating multicultural events for citizens of the Baltic Sea region. Currently Ars-Baltica’s projects include a Baltic Photo School, a center for contemporary dance, as well as numerous annual festivals and workshops.[8] At the fourth conference of culture ministers of the Baltic Sea States in 1999, it was decided that Ars-Baltica was such a strong organization that it should be more directly linked to the CBSS and their actions.[9]
The cultural
similarity also helps to build ties in education. The
latest as well as largest developmental tie occurred in March
2000 a meeting of the education ministers from the CBSS member
countries, which agreed on the Haga Declaration, which instituted
the implementation of an Agenda 21 for education in the Baltic
Sea region. The Haga Declaration states the basis for the program
quite clearly: “To implement and achieve sustainable
development in the region will require basic understanding,
competence and skills that have to be developed in our societies
for the general public, the schools, vocational training,
universities and through continuing education at
workplaces.”[10] Agenda 21 will
help facilitate education at every level through the co-operation
of the Baltic Sea Region’s educators.
In addition to this, Child Forums I and II took place in December of 1998 (Stockholm) and September of 2000 (Tallinn). These conferences have been events for Baltic and Nordic Educators and youth to come together and discuss important issues affecting young people and their educational experience such as drugs, political perspective, and job availability.[11] In the field of adult education the creation of the Nordic Folk Academy has provided a network for educators throughout the Baltic and Nordic countries. In addition to providing valuable resources and courses, the academy also hosts an annual NGO network meeting. The meeting helps to develop and unify NGO’s in the region on strategy and co-operation in the field of adult education.[12]
The Media
relations between the Baltic and Nordic countries have been
increased with the development of the Nordic-Baltic Media
Foundation. The foundation was set up by Nordic filmmakers who
recognized the lack of available resources for aspiring film
artists in the Baltic nations. The foundation has created
and organized the annual Baltic Film Festival in Gudhjem,
Denmark, and the annual youth film festival Visions of Life. In
addition to this the Nordic-Baltic media Foundation has funded
and helped set up “video techs”, or offices for film
production and education, in Vilnius, Tallinn and Riga.[13]
Though TV media production has also been a strong area for Nordic-Baltic cooperation in the past, the production and showing of the film “Buy Bye Beauty” on Sweden’s TV3 certainly had a negative affect on these ties. The film showed a very negative depiction of Latvia’s sex industry and offered statistics, which were not factually based. TV3 has since apologized to the Latvians for the slanderous content of the film. The Swedish film director Pal Hollander is under investigation by Latvian officials and could possibly face being permanently banned from entering Latvia. Meanwhile the main effect of this incident has been the misleading of the Swedish public in terms of their view of Latvian women and their role in society.[14]
Healthcare is
definitely one of the leading problems facing the Baltic
countries today. Although efforts such as these have been made to
improve the systems in place, further cooperation will be
necessary to bring the level of Healthcare in the Baltic
countries up to the higher standards enjoyed by the Nordic
countries. Though the Baltic countries have followed the Nordic
countries in policy, they have not being able to match them in
neither quality nor quantity of healthcare facilities. In
1998, the Baltic countries were rated as the least healthy
countries in Europe while the Nordic countries were rated as the
highest.[15] A solid
start to handling the situation was the 2nd and 3rd
“International Conferences Combating infectious Diseases in
the Baltic countries and Barents Regions” involving both the
Baltic and Nordic Countries in 1998 and 2000. The
conferences discussed World Health Organization (WHO) standards
as well as how to effectively reduce the mortality rate from
infectious diseases.[16] The Council of
Baltic Sea States has also played a large role in developing
exchange programs and seminars such as “The Task Force on
Communicable Disease Control in the Baltic Sea Region”,
which help to advance healthcare development in the Baltic
Countries. This task force specifically deals with the need
for standardized healthcare strategies as well as legislation and
regulation on the control of infectious disease.[17]
Governmental
Relations: Stability in Policy and Security
A helpful similarity between the Nordic and Baltic countries is that they are all Socially Democratic governments. This allows for enhanced communication and aid in terms of government policy.
Most of the
government interaction between the Baltic and Nordic countries is
organized through the Council for Baltic Sea States (CBSS).
The CBSS was founded in March 1992 at a meeting of the foreign
ministers from the Baltic Sea States in an effort to facilitate
governmental cooperation. “The Ministers agreed that The
Council of the Baltic Sea States should serve as an overall
regional forum focusing on needs for intensified co-operation and
co-ordination among the Baltic Sea States.”[18]
The CBSS has had
a particularly large impact from 1998 to 2001 in addressing
pressing needs for further co-operation in a number of areas. In
human rights the CBSS has facilitated changes in citizenship laws
member countries. According to the annual
commissioner’s report 1998/1999 the naturalization period in
Estonia and Latvia was decreased to seven years or less, and
language testing for the elderly and mentally retarded was
modified.[19] In terms of
the environment, the CBSS has created working groups to deal with
nuclear and radiation safety, as well as the protection of the
environment and energy resources.[20] Economic policy has been one of the major
concerns of the CBSS due to the recent changes in the region in
terms of economic stability and influx of trade.
The CBSS also
maintains ties to other organizations such as the OSCE, the
Nordic Council, the Council of Europe, and the United Nations,
which all have similar interests and goals involving prosperity
and integration in the region.
The third Baltic Sea State Summit, which in March 2000 suggested that in the future, the CBSS should extend its reach to encompass all regional intergovernmental, multilateral co-operation between the member states.
The Nordic Council of ministers whose members include the foreign ministers of all of the region’s governments is a similar yet smaller international multilateral organization. The Council meets regularly to discuss policy and insure social stability through the development of programs and connections, which promote stability.
Another example
of governmental cooperation lies in the continued support of the
Swedish government for Baltic admission to the EU. With the
EU presidency for 2001 being Swedish, there has been an
emphasized effort to incorporate the Baltic nations into the EU
by the year 2006.[21] Meanwhile the
CBSS Summit of Baltic Governments held in April of 2000 in
Kolding, seemed to produce ideas more pessimistic in nature.
The conclusion stated was: “Democracy, rule of law, human
rights, OSCE principles and norms of the Council of Europe are
commitments which have to be honored by the countries in the
Baltic Sea region.”[22]
Though this seems fairly obvious, these ideals are more easily
discussed than dealt with for the Baltic Governments.
In terms of
Security the Baltic States have applied for admittance to NATO
and await a decision at the next NATO Summit, scheduled for 2002.
NATO Assembly President Rafael Estrella gave a positive indicator
for Baltic admittance in a press conference in Vilnius in May
2001 when he stated: "But I think the only thing in doubt is
not whether, but when, Lithuania and its two Baltic neighbors
will be members of the Alliance."[23]
The main step taken by the Baltic Countries has been to increase
defense spending by as much as 40% in an effort to reach the goal
of 2% of their total GDP by 2002 in Lithuania and Estonia and by
2003 in Latvia.[24]
Though armed
forces in the Baltic nations remain minimal by developed nation
standards, the cooperation of Nordic and Baltic Defense ministers
in 1997 led to the development of the Baltic Defense College
(BDCOL). The College trains senior officers in an effort to
build a foundation for further development of defense structures
in the Baltic. The college is funded by 16 nations (many of
which NATO members) and is commanded by Michael Hesselholt
Clemmesen, a Danish Brigadier General. Though participants
also include other nation’s officers, one of the primary
aims of the BDCOL is also to prepare Baltic officers for future
NATO operations and standards.[25]
The creation and continued development of the Baltic Defense
College is a very strong demonstration of Nordic-Baltic
co-operation and will also likely have a powerful affect on the
outcome of the enlargement decision of the NATO Summit in 2002.[26]
The future of the Baltic Sea Region and continued co-operation
looks very positive. The ties that have been constructed
through the early 90’s have now been exponentially
strengthened. Plans for future development are eminent in
all areas discussed, especially in terms of economic growth.
The economic forecast for the Baltic economies is very strong due
mainly to the support of the Nordic countries. This
co-operation from 1998-2001 has lead to increased stability that
has come to be recognized globally. With steady development
of this Nordic co-operation over the coming years it is
inevitable that the Baltic countries will be fully integrated
Western European Nations within this decade.
[1] Nordic Contacts 1991-1998 http://depts.washington.edu/baltic/papers/nordic.html
[2] Vipotnik, Matej “Exporters face upheavals on the Russian trade front”, http://specials.ft.com/ln/ftsurveys/country/sc350e.htm
[3] Burton, Tim “Trade
With Scandinavia: Business world all set for the 'second
Hansa'”,
http://specials.ft.com/ln/ftsurveys/country/sc350a.htm
[4] US Embassy Riga, “U.S. Department of State FY 2000 Country Commercial Guides: Latvia” 1999
[5] OECD Conference On Fiscal Incentives and Competition For Foreign Direct Investment in The Baltic States May, 2000, http://www.oecd.org/daf/conference/vilnius/
[6]FDI Statistics. Latvian Development Agency, Latvian Government, June, 2000
[7] The Baltic Worldwide Statistics Page, http://www.balticsww.com/economic_stats.htm
[8] http://www.ars-baltica.net/latest/index.htm
[9] http://odin.dep.no/odinarkiv/norsk/dep/kd/1999/taler/018005-090079/index-dok000-b-f-a.html
[10] http://www.ee/baltic21/document/ministerial/Haga_Declaration.htm
[11] The Child Forum Home page http://www.jux.ee/cf/
[12] The Nordic folk Academy Home Page http://www.nfa.se/english/ngo1-6.html
[13] The Nordic-Baltic Media Foundation web site http://valhalla.norden.org/eng/info_uk/projects_uk/verden_uk/coop.html#1
[14] Central Europe Review 26.February, 2001 Vol.3 no.8 http://www.ce-review.org/01/8/latvianews8.html
[15] The Weekly Crier http://www.balticsww.com/wkcrier/1123_1207.htm
[16] Program Guide http://www2.legeforeningen.no/yf/mikrobio/moter-3baltmote.htm
[17] http://www.baltichealth.org/
[19]
“Commissioner’s Survey 1998/2000 Section 2.3.2 Criteria and
Procedures for Obtaining Citizenship in the CBSS Member
States” found in the “documentation” link on http://www.cbss-commissioner.org/
[20] Godzimirski, Jakub “The Visegrad group, the Commonwealth of independent States and Council of Baltic Seat States” Security Policy Library no.3 1998. p.g 14
[21] “Sweden Strives to Deepen EU Penetration of Baltic States” Steve James. January 2000
[22] "Baltic Sea States Summit, Chairman’s Conclusions” http://www.baltinfo.org
[23] “NATO "Must Show Leadership" on Enlargement” Press Release http://www.nato-pa.int/publications/press/p010528a.html
[24] “The Baltic Quest or Security: Euro-Atlantic Integration” http://www.heritage.org/library/lecture/hl641.html
[25] The Baltic Defense College Homepage, http://www.bdcol.ee/
[26] Also note the creation of the Baltic Battalion, the Baltic Naval Squadron and the Baltic Air Surveillance Network as relevant in Baltic NATO accession though not so much related to Nordic-Baltic Contacts
Aimar, Jukkum. The Child Forum Home Page, 2000 <http://www.jux.ee/cf/> (05.2001)
This is a very simple homepage showing the activities and goals of the Child Forum program.
Archer, Clive. Norden and the Security of the Baltic States. Norske Atalanterhavskomite, Oslo. 1998
This piece presents a detailed account of Nordic-Baltic cooperation on security issues. A history of Nordic involvement in such issues through the early 1990's is given, followed by more recent information about the latter half of the decade. This is a government funded publication so there are a lot of sources sited which assures the acurateness, and will leade to more potential sources for this paper.
Balersheim,Harold and Krister Stahlberg. Nordic Region-Building In A European Perspective. Ashgate Publishing, London. 1999
This book deals mainly with Scandinavian countries but has a very strong chapter on The Baltic Sea Co-Operation. The book develops the theory of Transborder region building and emphasizes a relationship with not only Europe but the Baltics as a neighbour.
Baltic Secretariat 21, "The Haga Declaration",2000
<http://www.ee/baltic21/document/ministerial/Haga_Declaration.htm > (05.2001)
This is the complete Haga Declaration as laid out by the Ministers of Education from all of the baltic and nordic countries. The document is a very interesting outline of what has been done and what will be done in the future in terms of Education in the Baltic Region.
Birkavs, Valdis."The Baltic Quest or Security: Euro-Atlantic Integration" Heritage Lectures Vol 8, April 1999 <http://www.heritage.org/library/lecture/hl641.html> (05.2001)
This is a lecture by Valdis Birkavs and other ministers from the baltics. It's informative in terms of obscure details that only governments offical would know (which are particularly difficult to locate). But otherwise, it is largely their opinions on the happenings in the Baltic. Which as noted by the date, have probably changed since then.
Burton, Tim "Trade With Scandinavia: Business world all set for the 'second Hansa'", Regional Overview Financial Times Survey. 2001<http://specials.ft.com/ln/ftsurveys/country/sc350a.htm (05.26.2001)
Published by the Financial Times, the regional overviews on the Baltic are very imformative however somewhat advanced in optimism about the baltic. This is one of a host of articles ofered on the region and trade there in.
CBSS. Taskforce on Communicable Disease in the Baltic,2001<http://www.baltichealth.org/>(05.2001)
This is a link from the CBSS homepage thus very informative in nature. Gives background of this paticular taskforce.