The Western Balkans’ highly strategic location and entrepreneurial workforce are some of the assets that could help the region take advantage of the Fourth Industrial Revolution and take its destiny into its own hands, said Martina Larkin of the Economic Forum global in a statement to EURACTIV.com. interview.
Martina Larkin is Head of Europe and Eurasia and a member of the Executive Committee of the World Economic Forum.
She spoke to EURACTIV’s Sarantis Michalopoulos ahead of the strategic dialogue on the Western Balkans, which will begin in Sofia on the sidelines of the EU summit on May 17.
According to the WEF, the main objective is to bring together regional government heads and international and local business leaders to advance economic integration and transformation by focusing on three key areas: deepening trade ties, engaging a new generation of leaders and develop a digital ecosystem to enable the fourth industrial revolution.
What do you think public-private partnerships should focus on? Is there a specific roadmap? In which sector does the region have common potential?
Since we convened Western Balkan leaders in Davos for our annual meeting, it has become clear that there is a desire to work together to bring greater stability to the region and resolve longer-term issues. We are very happy to support this dynamic. The role of the private sector is crucial to advancing any cooperation and public-private partnerships to advance growth and investment will be a key topic on Thursday’s agenda. One of the obvious cross-border issues is that of connecting transport infrastructure: this has the potential to deepen integration and cooperation through trade and is also an area in which the private sector can play an active role .
You recently spoke on “external pressures”. Is there a political justification behind this decision? Do you think such a project could diminish Russia’s influence in the region in the long term? And why now?
This dialogue aims to help the region achieve stability and lay the foundations for sustainable and inclusive growth. This stability is necessary to ensure that the region’s economies are competitive in the event of EU membership, but above all it is about giving the region more control over its destiny. This will only be possible by tackling deep-rooted structural problems such as long-term unemployment, weak institutions, corruption and organized crime that continue to plague the region.
Are the leaders of these countries determined to move the project forward?
What I find most encouraging about the dialogue we are engaging in is that it is largely driven by the region’s leaders themselves. After first coming together at our annual meeting in 2018, we are now at the stage where we can begin to turn words into action. To this end, we will focus on the main points of the agenda; scaling up trade and investment through public-private partnership, empowering the next generation of leaders and creating a digital ecosystem to enable the region to compete in the fourth industrial revolution.
How could this initiative combat the growing corruption in most of these countries?
Last year, the World Economic Forum conducted a survey of 31,000 millennials from 180 countries, making it, we believe, the most diverse survey of young people in the world. For me, the striking finding of this study is that today’s youth view government accountability and corruption as their country’s top concern. The Western Balkans are part of this global movement and I find it very encouraging that enabling the next generation of leaders is among the three agenda items of our dialogue. Of course, this is just the beginning; the region’s leaders will be judged on their achievements, but I am very happy that this issue is at the heart of the debate.
Knowing that the EU itself cannot stop the brain drain of its own youth, how will you achieve this for the Western Balkans?
The Western Balkans have many strengths, including a very strategic location and an entrepreneurial workforce. I actually think they are well positioned to take advantage of the Fourth Industrial Revolution, in the same way that the Baltic States were able to rapidly grow their economies thanks to the Internet economy in the 1990s. Small economies often have l he advantage of being able to make big changes with more agility than larger ones.
Can this project speed up the accession process of these countries to the EU?
There is of course a political will in Brussels for the Six of the Western Balkans to join the Union. Many of the initiatives that we hope will arise from this project will help these economies strengthen their competitiveness so that they can prosper after accession. But we are focused on the long term; the structural reforms that the region must undertake are essential, whatever path it takes. EU membership, if it comes to pass, will not result in significant gains for the region unless it is able to compete and maintain its human capital endowments.
What is your main fear regarding the implementation of the project?
We have seen great momentum since our Annual Meeting in January: it will be essential to maintain these high energy levels and make progress, which is entirely possible. The World Economic Forum is the platform for discussion, but the impact must be generated within the region. We have great support from the region, but also from key partners, for example Vice-President Mogherini and (Austrian) Chancellor Kurz, who will join the meeting alongside Prime Minister Borissov, and I believe there is a real will to succeed: as an international organization with a mandate to improve the world through public-private cooperation, we are ready to help our partners during this transformation process.
