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  1990s »

  START OF THE DEVELOPMENT FUND

  About 15 to 20 years ago, Don Kendall, then EWI’s Chairman of the Board, invited the Directors who were on this particular day in New York for breakfast at the River Club. This is one of the fancy clubs in New York, located at East 52nd Street and the East River. I was, at that time - contrary to today – one of the youngest Directors with a short term of service and obviously somewhat in awe of the distinguished group ...more »

  About 15 to 20 years ago, Don Kendall, then EWI’s Chairman of the Board, invited the Directors who were on this particular day in New York for breakfast at the River Club. This is one of the fancy clubs in New York, located at East 52nd Street and the East River.

  I was, at that time - contrary to today – one of the youngest Directors with a short term of service and obviously somewhat in awe of the distinguished group which was sitting around the table. During breakfast, Don Kendall asked each one of the participants whether he had any suggestions or criticisms as far as the activities of the organization were concerned.

  When I was asked, I mentioned that I found it somewhat wasteful that John Mroz and some of his assistants spent an awful lot of time trying to raise money for EWI instead of devoting more time to the programs. I said that a development fund could be the answer to this problem. If each one of the Directors and friends of the Institute made a one time substantial contribution to the fund, this money could be invested and bring income and interest and, over time, make EWI less dependent on the yearly donations which had to be raised.

  During the time I was speaking, I saw Don very actively looking for a sheet of paper, then tearing this paper into smaller pieces and looking for envelopes. When I had finished, Don said: “I think this is a pretty good idea and I will give each one of you a piece of paper to write down your name and to indicate the amount you would contribute to the fund.” Don started out as the first contributor and, if my memory is correct, donated a million dollars.

  There were a number of rather well-to-do people sitting around the table. I remember especially John Kluge. When Don collected the pieces of paper, he looked at the names and amounts and didn’t say anything until he came to Kluge’s. He said, “John, a million dollars is nothing for you. How about changing this number?” John Kluge was not to be moved on this occasion but later on made some changes in his numbers and this was the start of the development fund.

  After reading this, I wonder whether anybody else will be thinking of another “development fund.”

  Leo Schenker

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  Submitted by arabinowitz 2 years ago

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  EWI History Photos - 1999

  
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  Henry Kissinger, George H.W. Bush and Helmut Kohl share a laugh at the EastWest Institute's 1999 Awards Dinner Honoring Helmut Kohl as Statesman of the Decade.

  April 22, 1999

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  Submitted by amymarkel 2 years ago

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  Friend - Partner - Ally; by Pavol Demes

  Pavol Demeš, former EWI Board Member, wrote to share news of his most recent book, which he says recalls EWI's "serious contributions" to the development of U.S. - Slovak relations in the ‘90s. Published last month, Friend - Partner - Ally describes a crucial U.S. governmental visit to Slovakia in the early ‘90s, when U.S. Vice President Dan Quayle's participated at the East-West Summit in Bardejov in June 1991, organized ...more »

  Pavol Demeš, former EWI Board Member, wrote to share news of his most recent book, which he says recalls EWI's "serious contributions" to the development of U.S. - Slovak relations in the ‘90s. Published last month, Friend - Partner - Ally describes a crucial U.S. governmental visit to Slovakia in the early ‘90s, when U.S. Vice President Dan Quayle's participated at the East-West Summit in Bardejov in June 1991, organized by EWI. During this event, Quayle met with the President of the Slovakian Parliament Frantisek Miklosko and Prime Minister Jan Čarnogurský.

  Reflecting on the changes in Slovakia in the past few decades, Demeš wrote, “Everything changed after the Velvet Revolution in 1989, and within a very short period of time Slovakia established a multilayered relationship with the USA, much more intensive than with any other country. The United States has significantly helped us in overcoming the communist legacy and in becoming a modern state and part of the Euro-Atlantic democratic family. Today, both Slovakia and the United States are partners cooperating in many areas, from politics, economy and military, through science, culture and education all the way to sports. For example, since the end of 2008, Slovak nationals do not even need a visa to travel to the United States."

  And EWI was a small but essential part of that transformation.

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  Submitted by dstojanovski 2 years ago

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  Carpathian Euroregion - by Vazil Hudak

  I believe one of the most innovative and fascinating projects that EWI did in 1990s was the creation of the Carpathian Euroregion, which later lead to the establishment of the Carpathian Foundation. The whole process started in 1992, at the time when the wars in the Balkans and in the former Soviet Union started to spread. Carpathian region incorporating 5 post-communist countries (Poland, Slovakia, Hungary, Romania, ...more »

  I believe one of the most innovative and fascinating projects that EWI did in 1990s was the creation of the Carpathian Euroregion, which later lead to the establishment of the Carpathian Foundation. The whole process started in 1992, at the time when the wars in the Balkans and in the former Soviet Union started to spread. Carpathian region incorporating 5 post-communist countries (Poland, Slovakia, Hungary, Romania, Ukraine) was seen as a possible area of conflicts due to its ethnic and religious diversity and economic under-development. EWI decided to explore the idea of cross-border cooperation on the local level, including the creation of a euroregion as a means for preventing such conflicts.

  Early negotiations were very tough! Each of the countries involved had their worries: Slovaks and Romanians were afraid that the project was just a way to split the regions of Slovakia/Romania dominated by the Hungarian minority from the home countries; Ukrainians were afraid of possible secessionist intentions by Ruthenians living in Western Ukraine; Hungarians were afraid of losing their traditional contacts with Hungarian brethrens through new confusing structures (such as euroregion) and some Poles were worried about growing influence of the Orthodox church in that part of Poland. Estabishing the Carpathian Euroregion was a true exercise of public diplomacy in its best! One of the real heroes of that time is Sergey Ustich, who was Deputy Governor of Zakarpatia Region of Ukraine. I remember situations when the discussions got very hot and it looked like the end of negotiations. Sergey would then ask for a break and he would invite heads of all delegations, as well as EWI leaders, to his room. He would serve Transcarpathian cognac (Tisza) and some horilka, as well as traditional Ukrainian salo and okurec. Suddenly, officials would get less official and things were easier to discuss. Problems were solved! Such moments will stay in my memory forever! And, we’ve remained close friends with Sergey till today!

  Photo: Sergey Ustich and myself during a ceremony at the “Annual European Forum on Cross-border Cooperation” where Sergey received an award for his life-long contribution to promoting cross-border cooperation in wider Europe.

  
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  EWI History Photos - 1990

  The Institute for East West Security Studies Annual International Conference.

  June 7-9,1990

  
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  EWI History Photos - 1995

  EWI Staff

  Summer 1995

  
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  Embracing Our Third Decade

  For twenty years the EastWest Institute has boldly responded to the challenges of a world in transformation. Its current areas of heaviest involvement, the Balkans, Russia, Ukraine and neighboring states have a huge unfinished agenda. The EWI Board of Directors has made clear its commitment to have EWI remain deeply engaged for decades more until the struggle of transition is assured. As we look to the future, it is ...more »

  For twenty years the EastWest Institute has boldly responded to the challenges of a world in transformation. Its current areas of heaviest involvement, the Balkans, Russia, Ukraine and neighboring states have a huge unfinished agenda. The EWI Board of Directors has made clear its commitment to have EWI remain deeply engaged for decades more until the struggle of transition is assured.

  As we look to the future, it is clear that the EWI transatlantic partnership of Europeans and North Americans continues to widen as Europe itself enlarges and the Eurasian bridges of Russia, Ukraine, and Turkey and their neighbors continue their transformation. The challenges to the values which are core to EWI will be no less daunting. In fact the challenge will be more difficult as EWI continues its movement eastward over the coming decades.

  A new dimension is growing in EWI's work, Eurasia. Here is the prime space where the 21st Century fight for democracy, peace and economic prosperity will be waged. Here Europeans and Americans from Vancouver to Vladivostok join hands with colleagues in Central Asia, the Caucasus and parts of the Middle East.

  This 20th story shall remain unfinished. It is the story of how an independent group of men and women of diverse nationalities, religions, professions and experiences come together united in their values and prepared to make a commitment to work together as agents of change.

  In 1962, John Mroz was in his second year in high school in a small town in western Massachusetts. His father, a dentist, asked his three sons at the dinner table what they wanted to do with their lives. John's answer perplexed his Dad for years. He answered - "to be a global change agent."

  Every person who has become involved in the work of the EastWest Institute for these twenty years should add "global change agent" to his or her resume, for indeed the story of EastWest is, in the end, such a story.

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  Submitted by stojanovski.dragan 2 years ago

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  Reinvesting in Russia

  Russia today stands at a crossroads. It has potential to become a fully-integrated member of the global economic system and a democratic state serving as a force for stability on the Eurasian continent. At the other end of the spectrum stands the possibility of a failed Russia whose disintegration would be catastrophic not only for its own people but for the world at large. At the fulcrum, is President Vladimir Putin ...more »

  Russia today stands at a crossroads. It has potential to become a fully-integrated member of the global economic system and a democratic state serving as a force for stability on the Eurasian continent. At the other end of the spectrum stands the possibility of a failed Russia whose disintegration would be catastrophic not only for its own people but for the world at large. At the fulcrum, is President Vladimir Putin and the Russian people. Enjoying around 75% popularity in public opinion polls, the President has a unique and historic opportunity to move Russia along the path of democracy, peace and a market economy. EWI, through its Moscow Centre, its regional publications, and its new Private Sector Initiative, is deeply engaged in partnering with the forces of change in the Russian Federation.

  The massive handouts from the public sector in the past decade are not the answer. The first year of the Putin Presidency has seen a leveling of the legal playing field in Russia. Twelve months ago some 70% of all regional legislation in Russia was in violation of Federal law. Today that number is less than 3%. Reform of the court system is moving ahead as is land and taxation reform. Yet the Western investors who want to enter Russia are held back by administrative barriers and other discouraging elements in the business environment. How this gets addressed will determine in large measure what Western investors (and Russian flight capital as well) will do in the decade ahead. The EWI Private Sector Initiative is already working with Russian officials and experts in the areas of Pension Reform and Fiscal Transparency. Soon a major EWI effort on transportation issues will be added in cooperation with the World Bank. These undertakings can only work if Russia's leaders boldly move ahead with the legal and administrative changes needed to make Russia a country more able to integrate with other economies.

  EWI continues to deepen its efforts in Moscow and beyond. Our network of correspondents in 60 oblasts is one of the most reliable and far reaching. Our Russian Regional Report and Russian Regional Investor have wide and diverse readerships weekly and bi-weekly throughout the world's business and governmental communities. Our Russian Regional Bulletin, produced in the Russian language, has the fastest rising circulation of any publication in our twenty years. Objectivity and honesty in reporting are hallmarks of these regional publications. EWI is deepening its work in the regions, particularly in Perm, Pskov and Kaliningrad as well as the Central District of Moscow. The first regional fiscal transparency study is being undertaken this summer. The EWI Moscow Centre has reached out and formed a strong network of experts. The Task Force on How America Should Respond to Putin's Russia is deeply engaged in its work including meetings with the President and the top leadership of Russia. Strategic as well as out-of-the-ordinary partnerships form the basis of EWI's work with Russia.

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  The New Power in Eurasia

  In the horrible aftermath of the Armenian earthquake of 1988, which left thousands dead and many more destitute, General Secretary Gorbachev rushed home following his speech at the United Nations in New York to console victims and implement rescue efforts. Glasnost' was already official policy in the USSR, and the General Secretary wanted to hear from the people. What he heard, however, came as a stunning surprise to ...more »

  In the horrible aftermath of the Armenian earthquake of 1988, which left thousands dead and many more destitute, General Secretary Gorbachev rushed home following his speech at the United Nations in New York to console victims and implement rescue efforts. Glasnost' was already official policy in the USSR, and the General Secretary wanted to hear from the people. What he heard, however, came as a stunning surprise to the last Soviet leader. In group interviews and open conversations, despite the fact loved ones were buried under rubble, electricity and water were out, and food was in short supply, the topic of just who had the right to administer Nagorno-Karabakh came up over and over. Gorbachev was bewildered, but these results of glasnost' should have served as a warning sign. The decline of Soviet institutional power did not of itself guarantee democracy, and in the tragic case of Armenia and Azerbaijan it meant war.

  Long before the Great Game described by Rudyard Kipling began between Britain and Russia for control of Central Asia, the region had been at the historic crossroads of the Eurasian continent. Marco Polo traversed it, the merchants of the Silk Road constructed its magnificent mosques and the Mongols ruled its vast expanses under the great Khans. To guarantee the prosperity of the diverse peoples who inhabit Central Asia, the Institute, which had worked with the region for a decade, launched what became known as the EWI Eurasia Strategy Group. This new effort proposed to formulate critical thinking and ultimately expand its geographic range to include China and Iran.

  Undeniably this is a crucial time for the future of Central Asia. The population is expanding while the economy is contracting. Absent greater moves toward stability and cooperation by all parties in Eurasia, the vast resources of this immense territory will become more of a curse than a blessing. The EWI Eurasia Strategy Group, chaired by Lord Douglas Hurd, launched a process upon which EWI went on to develop its work in the Caucasus and Central Asia. Today, plans for an EWI presence in Istanbul are in the making.

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  Getting to the Bottom of Things After 1000 Years - 1998

  In the Soviet Union, so the saying went, it was all about the plan! From 1929 to 1991 the USSR operated under the infamous command economy; Moscow gave orders and set plan targets and for a third of a century of Stalinist rule those targets were either fulfilled, falsified, or people vanished into the Gulag. Unsurprisingly, as a result of this morally and economically ruinous system, accurate economic information was ...more »

  In the Soviet Union, so the saying went, it was all about the plan! From 1929 to 1991 the USSR operated under the infamous command economy; Moscow gave orders and set plan targets and for a third of a century of Stalinist rule those targets were either fulfilled, falsified, or people vanished into the Gulag. Unsurprisingly, as a result of this morally and economically ruinous system, accurate economic information was nearly impossible to obtain. This dilemma held true for local factory foremen and the upper echelons of the Soviet leadership alike, as the narratives of KGB agents learning their country's real gross national product from Western intelligence sources have repeatedly demonstrated. Fiscal transparency was hard to come by, to say the least.

  Vladimir Putin's rise to power carries an opportunity to level the playing field, fight corruption and bring budgetary transparency. Russia needed a new mechanism to get to the bottom of its internal financial relations. The EastWest Institute's Moscow Centre conducted one of the most in-depth, comprehensive studies in the history of Russian finance. The Federal Budget and the Regions was produced by EWI in cooperation with a team from Russia's Ministry of Finance, the Central Bank and the Ministry of Federal Affairs and Nationalities. The report was grounded in the values of transparency and objectivity. Funded by the Russell Family Foundation and an anonymous family foundation in New York, The Federal Budget and the Regions analyzed the fiscal flows from Moscow to Russia's other 88 regions (excludes Chechnya where figures were not available) and vice versa. The study provided Russian economists and foreign investors, "a unique source of data for analysis and an inspiration... on the issue of Russia's center-region fiscal relations." The quality of the information gathered drew lofty praise from economists the world over.

  A full-length book version was published in English in the fall of 2000 entitled The Fiscal Structure of the Russian Federation and a second, more in-depth volume that analyzes figures from a five-year period shortly followed.

  Besides the influential fiscal transparency project, EWI has launched the Russian Regional Report, a weekly publication analyzing economic, political and business developments in Russia's 89 multi-ethnic and geographically diverse regions. In 1998, so as to secure the utmost quality of information and administrative analysis the Institute opened the EWI Moscow Centre. The Moscow Centre staff work to develop initiatives strengthening the management of the federal system, enhance the ability of the regions to influence federal policies, provide a neutral forum for Russians to explore Russian foreign policy and coordinate with leaders from the public and private sectors to develop new approaches to building a successful market economy.

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  Taking Sovereignty Seriously - 1997

  In EWI's Russia and the World: A New Deal, Alexei Arbatov and Dag Hartelius affirm, "Both Russia and its neighbors and partners need to realize that the Cold War is really over and that the Soviet Union will never reappear. The international community needs to see that a strong and prosperous Russia, if based firmly on democracy, would be to the benefit of all." Without question, one of the foremost foreign policy dilemmas ...more »

  In EWI's Russia and the World: A New Deal, Alexei Arbatov and Dag Hartelius affirm, "Both Russia and its neighbors and partners need to realize that the Cold War is really over and that the Soviet Union will never reappear. The international community needs to see that a strong and prosperous Russia, if based firmly on democracy, would be to the benefit of all."

  Without question, one of the foremost foreign policy dilemmas in the post-Soviet era is how to establish relationships with the Newly Independent States of the former Soviet Union. Despite the complexities of this very thorny matter, numerous government agencies and NGOs routinely split into one-dimensional "pro-Russian" or "anti-Russian" factions, the former disregarding the independence of the post-Soviet nations, the latter anxious to benefit from Russia's internal upheavals. Opting for a more mature, cooperative approach, EWI created programs to address these problems from a holistic perspective emphasizing that sovereignty is not a zero-sum game whereby one party automatically wins and another necessarily loses. One particularly important instrument in realizing this objective was the work of EWI's Kyiv Centre.

  The Institute's work in Ukraine is based upon the belief that the future of Ukraine as a sovereign, secure and economically healthy democracy is essential for the stability of Europe as a whole. Since independence Ukraine has faced a number of profound challenges, including complications with privatization, difficulties liberalizing the economy, constructing a positive national identity in a divided society and maintaining productive relations with Russia while deepening ties with the West. To solve these challenges EWI has been active in a number of carefully targeted projects supporting economic reform, consolidating democratic institutions, and encouraging the construction of positive foreign relations with both Russia and the West.

  Over the past decade EWI has worked extensively with the Verkhova Rada (Ukrainian Parliament) in their effort to secure Ukraine's admission to the Council of Europe. To come to terms with the challenges of privatization EWI organized a project in Kyiv which called for enhancing prospects for investment in Ukraine, along with the European Bank for Reconstruction and Development. Upon presenting its findings to the Ukrainian President, President Kuchma issued a decree hastening deregulation and creating more favorable conditions for the development of small and medium scale enterprises. In 1997, the Institute published Securing Sovereignty: Ukraine's First Five Years of Independence, improving analysis on Ukraine's progress in developing democracy, a market economy and deeper relations with its eastern and western neighbors. The combination of policies and values adopted by EWI towards both Russia and the Newly Independent States can benefit all parties involved. Whether it's the EWI EU-Ukraine Policy Forum or its work on Ukrainian-Russian relations engaging top policy-makers, EWI is dedicated to creating conditions for productive inter-state relations.

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  Prescribing Pluralism

  Balkan Ghosts author Robert D. Kaplan has described Romania, with some 23 million inhabitants, as "the fulcrum state of Europe." Romanians practice Eastern Orthodox Christianity, derive their linguistic roots from the West and have utilized both the Cyrillic and the Latin alphabets in the past two centuries. The end of the horrendous Ceaucescu dictatorship on Christmas Eve 1989 presented the outside world with painful ...more »

  Balkan Ghosts author Robert D. Kaplan has described Romania, with some 23 million inhabitants, as "the fulcrum state of Europe." Romanians practice Eastern Orthodox Christianity, derive their linguistic roots from the West and have utilized both the Cyrillic and the Latin alphabets in the past two centuries. The end of the horrendous Ceaucescu dictatorship on Christmas Eve 1989 presented the outside world with painful images of sorrow and anguish: orphans with HIV tethered to their beds, decaying chemical facilities posing risks to human health and a bleak, often degraded urban landscape. The need for action by Western institutions was immediate if Romania was to successfully manage the dual transition to free markets and a pluralistic democracy. To confront the social and political challenges in the post-communist era the EastWest Institute devised the Legislative Issues Service (LIS).

  The Legislative Issues Service operated out of the EWI Prague Centre, and helped to transform the performance of the Romanian parliament by developing the first professional staff. The EWI-sponsored LIS also provided significant contributions to parliaments in Bulgaria and Ukraine. EWI also worked to promote concerted associations between citizens and their elected representatives. Through public discussions on policy issues and the promotion of objective, non-partisan research and analysis, LIS aimed to legitimize democratic institutions and educate legislators on constitutional and legal concerns. In 1998, the project advised the Romanian government on its approach to pension reform adjustments, in addition to arranging public hearings in the Romanian parliament on pending legislation, a first in that country.

  A foremost achievement of the Legislative Issues Service came in 1996, when LIS assisted the Ukrainian Parliament (Verkhova Rada) in the adoption of Ukraine's first post-communist constitution. In professional development seminars organized by EWI in France and Spain, delegations of Ukrainian parliamentary leaders who served on the constitutional committee consulted Western legal experts on establishing proper balances of power between the various branches of government. Special efforts were made to include key legislators who were unsure of which direction to move. Within three months of these visits, the newly independent nation of Ukraine adopted its first free democratic constitution.

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  Bridging Ancient Divides - 1994

  Founded in the lush Tisza River valley by EWI in 1994, as the next step in developing the Carpathian Euro-region, the Carpathian Foundation assists local institutions and governments by encouraging democratization and sustainable economic development. The Foundation also promotes cross-border assistance programs and helps cement inner-ethnic partnerships. The Foundation operates out of its headquarters in Budapest, Hungary ...more »

  Founded in the lush Tisza River valley by EWI in 1994, as the next step in developing the Carpathian Euro-region, the Carpathian Foundation assists local institutions and governments by encouraging democratization and sustainable economic development. The Foundation also promotes cross-border assistance programs and helps cement inner-ethnic partnerships. The Foundation operates out of its headquarters in Budapest, Hungary and has regional offices in provincial towns in Poland, Romania, Slovakia, and Ukraine.

  In its first six years of operation, the Foundation gave out more than $3.2 million to over 450 local governments and nongovernmental organizations in response to their needs and requests. In the past few years, the organization has worked on a diverse number of issues, including local development of the NGO sector in Hungary, decentralizing the post-communist bureaucracy in Poland, promoting youth group activities in Romania, resolving environmental problems in Slovakia and sponsoring programs for social, cultural, and economic development in Ukraine. It is of significant credit to the Carpathian Foundation that it has achieved financial self-sufficiency, employs local staff, and exhibits a remarkable sense of camaraderie.

  The Carpathian Foundation presents the international community with a bold, proactive model for other troubled regions where long-term suspicions and hostilities have hindered peace, ethnic cooperation and economic progress. By ensuring a higher quality of life and a better standard of living for the inhabitants of the Carpathian Euro-region, the Foundation bestows hope to future generations for continuing peace and prosperity.

  EWI spun off the Carpathian Foundation on December 31, 1999. This is part of an on-going commitment by the EWI Board to build local capacities and spin-off successful centres so that EWI can move into other areas which need it the most. There are independent centres today in Budapest and Warsaw as well as the Carpathian Foundation in Kosice that were once EWI centres. This "greenhouse" practice is an important part of the EWI mission.

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  Stabilizing New Frontiers

  It began with an urgent phone call. Roman Kuzniar, then Director of Strategy and Policy Planning of the Ministry of Foreign Affairs in Poland, was attending an OSCE conference. The caller informed him that demonstrations had broken out in front of the Hungarian Embassy in Bucharest, and that the protests were in response to the new "secret accords" Roman had drafted between Poland and Hungary. These "secret accords" were ...more »

  It began with an urgent phone call. Roman Kuzniar, then Director of Strategy and Policy Planning of the Ministry of Foreign Affairs in Poland, was attending an OSCE conference. The caller informed him that demonstrations had broken out in front of the Hungarian Embassy in Bucharest, and that the protests were in response to the new "secret accords" Roman had drafted between Poland and Hungary. These "secret accords" were in actuality nothing more than an article in a scholarly journal promoting regional cooperation, but when a reporter published the article in the Hungarian press with additional commentary by media outlets in Budapest, a misperception was given that a tacit alliance had formed between Poland and Hungary to divide up the Carpathian Region, the mountainous border region of Ukraine, Slovakia, Poland, Hungary and Romania.

  The panicked feedback from some Romanian officials might seem curious in the West, but in a region whose borders have shifted to and fro over the centuries, often at the expense of minorities, such visceral reactions are not surprising. Out of this commotion and confusion, however, came an understanding that the post-socialist harmony was clearly fragile, and spontaneously Polish, Slovak, Hungarian, Ukrainian, and Romanian officials started serious discussions.

  By the late spring of 1992, EWI had already deployed staff in this border region and was serving as the Secretariat of the Carpathian Euroregion. That effort would later lead to a decision of the C.S. Mott Foundation to partner with EWI in creating the highly successful Carpathian Foundation.

  The Transfrontier Cooperation Programme (TFCP) operated on the EWI philosophy that lasting peace and stability will only become possible when democratic principles and values are actively promoted and have successfully taken root throughout the region. By encouraging local development and the building of transnational institutions, TFCP helped provide common visions and strategies to facilitate economic development, nurture future leaders, and initiate cross-border networks. By working with local governments and NGOs, TFCP demonstrated that in even the most troubled settings, quantitative and qualitative measures can be taken to ensure a respect for human rights and improve transnational cooperation. At that time, Kaliningrad-Lithuania- Poland and Pskov-Estonia-Latvia were focal points for TFCP, along with additional projects in the Balkans.

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  Not a Second to Spare

  The tale may well be apocryphal, but as an allegory it bears repeating. As the democratic revolutionaries led by Vaclav Havel gathered in the Magic Lantern Theater during the November Changes, they recognized that the collapse of the communist regime was as much about inferior economic planning as failed ideology. Well-stocked shelves and disposable consumer incomes would soon be demanded, and given that the economy was ...more »

  The tale may well be apocryphal, but as an allegory it bears repeating. As the democratic revolutionaries led by Vaclav Havel gathered in the Magic Lantern Theater during the November Changes, they recognized that the collapse of the communist regime was as much about inferior economic planning as failed ideology. Well-stocked shelves and disposable consumer incomes would soon be demanded, and given that the economy was going to get much worse before it got better, the revolutionaries sought out managers to handle the unstable transition. EWI's job in the 1990s was to help develop and network these very people.

  In times of extreme change, fortunes can be made overnight and careers explosively ignited. As Lenin himself stated, "Time compresses in revolution." Twenty-seven year old Prime Ministers and thirty-three year old enterprise bosses were not uncommon. As the post-communist transition process was evolving, many at EWI realized that there was a growing discrepancy between the "micro" and "macro" levels of democracy and market economy. Grass-root civic movements had few links to decision-makers at the national and international levels. Macro-economic improvements had little impact on the local economic conditions of average people. In this situation EWI focused on developing "bottom up" approaches to policy-making, empowering local people through community and regional development programs, and driven by local and regional needs. One interesting case was an EWI information technology project requested by Bulgarian Deputy Prime Minister Alexander Bozhkov.

  On the direct appeal of the government in Sofia and under the leadership of EWI economist Rado Petkov in New York, the Institute conducted a far-reaching investigation into the practices of American and Israeli corporate technology parks. These inquiries led to studytrips to Raleigh-Durham and numerous computer and software centers in California by a Bulgarian delegation. Following a year of work and raising capital, the outcome was the construction of a high technology incubator park in Sofia, employing and developing local computer programmers and software engineers. Other countries in the region have emulated the model. Four years later, one such young software company recruited EWI's Rado Petkov, a Bulgarian, to work in its New York office.

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  1990s »

  The Debt Bomb & the Collapsing Cores - 1992

  By the end of the 1980s, concerned businessmen and philanthropists were aware of a potential disaster looming on the horizon. The United States had been running enormous deficits for more than a decade and the cost to the Federal government was ballooning into the trillions of dollars. At precisely this time period the Cold War was ending, and debates about a Marshall Plan for Eastern Europe were beginning in earnest. ...more »

  By the end of the 1980s, concerned businessmen and philanthropists were aware of a potential disaster looming on the horizon. The United States had been running enormous deficits for more than a decade and the cost to the Federal government was ballooning into the trillions of dollars. At precisely this time period the Cold War was ending, and debates about a Marshall Plan for Eastern Europe were beginning in earnest. The debt issue was a dark cloud hanging over any significant economic initiatives. As some noted, the debt bomb may turn out to be more dangerous to the future of Europe than the atomic bomb.

  By early 1992, it was obvious that there would be no Marshall Plan for the East. Western governments were applying piecemeal solutions and high-priced consultants as an answer to hyperinflation and unemployment - notwithstanding that these were the same dynamics that brought down the Weimar government in Germany and the nascent democracies of Central-East Europe in the Thirties. EWI has been good at sensing high-leverage gaps where a modest investment can pay off with serious results. Our decision to open the EWI Banking and Financial Assistance Centre in Budapest was based on knowledge that hundreds of banks and financial institutions were passing into new hands but these senior managers often had no prior experience. Overwhelmed and unwilling to "come clean" with a younger generation of colleagues in the many banking seminars being offered by the West, these managers were in a quandry. EWI created an institution, financed and staffed largely by European and U.S. banks. After several years, most top managers have taken several EWI courses.

  The Budapest based Banking and Finance Assistance Centre, conceived by EWI Director Anthony Solomon, former President of the Federal Reserve Bank of New York, launched a series of targeted training seminars bringing bankers together from Eastern Europe and the West to educate the top managers on reforming and operating financial institutions. To better support financial sector reforms, EWI's Warsaw Centre published the International Task Force on Western Assistance to the Transition in the Czech and Slovak Federal Republic, Hungary and Poland, examining the assistance process to date, identifying strengths and weaknesses and making policy recommendations to improve Western aid. The first attention to long-term unemployment came from the EWI Prague Centre's publication Removing the Barriers: Strategies for Assisting the Long-term Unemployed, investigating global best practices relevant to Central Europe.

  Since the relative health of the commercial banking sector and capital markets would ultimately determine the development of civil society as a whole, the Institute together with the Harvard Business School faculty fashioned an exhaustive case study of the successes and shortcomings of the Czech economic transformation. Analyzing the policy failures leading to the Czech economic downturn of 1997, the assessments are commonly used by Czech and other regional policy makers in their efforts to determine choice points and consequences in transition economies.

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  The Huns in Reverse

  The earliest written records of Bardejov come from the yellow parchments found in the Ipatyiev Monastery dating back to 1241. The paved rectangular square and the cobblestone roads leading up to the magnificent ecclesiastical buildings are traced back to 1505, a building period where prosperous merchants laid the foundations of Bardejov's gothic and renaissance architecture. The exceptional Jewish Quarter, with its remarkable ...more »

  The earliest written records of Bardejov come from the yellow parchments found in the Ipatyiev Monastery dating back to 1241. The paved rectangular square and the cobblestone roads leading up to the magnificent ecclesiastical buildings are traced back to 1505, a building period where prosperous merchants laid the foundations of Bardejov's gothic and renaissance architecture. The exceptional Jewish Quarter, with its remarkable features such as a fantastic 18th Century synagogue helped earn the town the European Gold Medal Prize for Historic Preservation. Amazingly, those same welcoming cobblestone roads that have led thousands of visitors to the beautiful spa town of Bardejov over the centuries had also managed to survive the horrors of the 100 Years War, the Napoleonic Wars, Hitler's invasion, and Stalin's occupation.

  Over time, the EastWest Institute has earned the distinctive designation, "the Huns in reverse," moving West to East, dispensing freedom and prosperity wherever possible. In June 1991, the Institute held its 10th Annual Conference in Bardejov, where government leaders and representatives of international organizations met to discuss how the West might more effectively design and implement assistance programs to the new democracies of Eastern and Central Europe. In what was essentially billed as Eastern Europe's economic "coming out" party, the conference attracted a host of international dignitaries, including U.S. Vice President Dan Quayle, President Vaclav Havel of Czechoslovakia, President Arpad Goncz of Hungary and Prime Minister Jan Krzysztof Bielecki of Poland.

  The Mayor of Bardejov, Lubomir Skalos, simultaneously overjoyed and overwhelmed at the international spectacle in his hometown undoubtedly had his hands full dealing with a short supply of housing, an overwhelming security presence and the delicate structural design of the city's historic buildings. Hundreds of students pitched in as an all-volunteer work force. The conference was a remarkable triumph. U.S. dignitaries spoke of opening their markets to Czechoslovak exports and local participants discussed much-needed plans for greater regional cooperation in improving the economy and managing industrial trade barriers and tariffs.

  One distressing snag came with the arrival of U.S. Vice President Dan Quayle's Executive Office advance team, who apparently told the mayor that the cobblestone streets of Bardejov were going to be unearthed. Rumor had it that no one on the Executive advance team wanted to be responsible for photographs of the U.S. dignitary tripping over the grooves between the stones. Mayor Skalos, astonished and incredulous, balked. The Executive Office advance team quite adamantly insisted that this was a mandatory precaution. The mayor noted that these stones had survived Nazi and Soviet tanks and would not be unearthed for a Vice President no matter how friendly or powerful the country he represented. In the end, true to the style of EWI, there was a compromise, and a wooden ramp was built over the top of the ancient road. Bardejov's beautiful cobblestone streets thus remain untouched for all to see.

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  Truth and Love will Win over Lies and Hatred - 1990

  "Please don't talk about the good Soldier Schweik," implored Vladislav Hancil, the former head of the Czechoslovak Academy of Sciences. "I don't like this book, it's too painful for me...because it's so true. We Czechs, we're not fighters, but how could we be...between Germany and Russia? In spite of this, we do find ways to come out of dreadful situations all right." It didn't look like events were going to be "all ...more »

  "Please don't talk about the good Soldier Schweik," implored Vladislav Hancil, the former head of the Czechoslovak Academy of Sciences. "I don't like this book, it's too painful for me...because it's so true. We Czechs, we're not fighters, but how could we be...between Germany and Russia? In spite of this, we do find ways to come out of dreadful situations all right."

  It didn't look like events were going to be "all right" when, on the night of November 17, 1989, the Czechoslovak police assaulted a peaceful student demonstration. What began as a defiant stand by the communist government, however, quickly became a last stand as Czechoslovaks turned out en masse to protest the faltering regime. Chanting the slogan "Truth and love will win over lies and hatred," the people, led by Vaclav Havel and Civic Forum, brought down the government.

  In June of 1990 Stephen Heintz was in Czechoslovakia as an election observer and witnessed the initial jubilation as men and women carrying bouquets of flowers, tears streaming down their cheeks, voted with a clear conscience for the first time in their lives. Within a year Stephen was working for the Institute and heading the newly opened Prague Centre, a major training facility located in a villa outside the Czech capital. In those days, the Prague Centre was situated downtown, on the riverbank in the beautiful historic home of the Havel family, and Prague became the European headquarters and heartbeat of EWI on the continent. Thousands of community and national leaders were trained and scores of projects conducted from Prague throughout the region. The library where President Havel once wrote became EWI's conference facility, keeping up the spirit of open thought and dialogue.

  Ten years after the November Changes of 1989, the Prague Centre organized one of the most fascinating conferences since the end of the Cold War. In what Oxford historian Timothy Garton Ash noted was one of the exceptionally rare cases wherein "it really was true...that today's speakers need no introduction," Czech President Vaclav Havel and EWI hospitably received former Presidents George Bush, Mikhail Gorbachev, Lech Walesa, Helmut Kohl, former Prime Minister Margaret Thatcher, and the wife of the late President of France, Danielle Mitterrand. If the "10 Years After" Conference commemorated a remembrance of things past, other conferences would work toward the future. One such conference was certainly the Bardejov Conference of 1991 in Slovakia.

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