By Frank T. Csongos
Washington, 21 Dec (RFE/RL)
The international human rights monitor, Freedom House, says individual liberties made
major gains around the globe in
1998. But it says freedom suffered a setback in Russia.
In its annual survey on the state of freedom in the world�s countries, Freedom House
said today that despite financial
turmoil and persistent civil strife in several countries, it found the highest number of
free countries on record - 88
countries representing 46 percent of the world total.
The survey found 53 countries - or 28 percent of the world total - partly free, with some
abridgments of rights and weak
enforcement of the rule of law. The survey also said that 50 countries - or 26 percent of
the world total - are NOT free
and suffer from systematic human rights violations.
The study said democracy and freedom are the dominant trends in most parts of the world.
It said that the major
exceptions are the former Soviet Union, Africa and the Middle East.
The group lists Russia as a country where freedom suffered a serious setback in 1998.
The study said: �The assassination of democracy advocate Galina Staravoitova was the most
tragic development in a
bad year for Russian reformers. With President (Boris) Yeltsin enfeebled, a coalition of
neo-Communists and hardline
nationalists gained increased influence, and succeeded in bringing down a reformist
government. A new government,
dominated by former Communists, made little progress in stemming corruption or reviving
the economy.�
Among the 13 countries to receive Freedom House�s worst rating for political rights and
civil liberties, three were under
the domination of communist parties: Cuba, North Korea and Vietnam. Others in this
category include Afghanistan,
Burma, Equatorial Guinea, Iraq, Libya, Saudi Arabia, Somalia, Sudan, Syria and
Turkmenistan.
The survey said there are no democracies or free societies within the Arab world and few
in other predominantly Muslim
societies. It said Israel was the only free country in the Middle East.
Freedom House was established in 1941 to promote liberty and democracy around the world.
It evaluates human rights
conditions, sponsors public education campaigns, organizes programs to promote democracy
and free market reforms
and provides support for free media, the rule of law and effective local government.
The nonprofit organization, which is based in Washington and New York, is chaired by Bette
Bao Lord. Among its board
of directors are many prominent Americans such as former U.S. National Security Advisers
Zbigniew Brzezinski and
Anthony Lake and former United Nations Ambassador Jeanne Kirkpatrick.
The study says the worst-rated territory as far as freedom is concerned is the Serb
province of Kosovo, which is largely
ethnic Albanian.
Freedom House president Adrian Karatnycky said some of the most dramatic gains for freedom
were in large and
influential countries. He said India had moved from �partly free� to �free� status,
while Nigeria and Indonesia had
moved from �not free� to �partly free�.
Karatnycky, coordinator of the survey, said the detonation of nuclear devices by India and
Pakistan this year was a
jolting reminder of the menace still posed by weapons of mass destruction.
He said: �Other reasons to worry included Iraq�s determination to rebuild its nuclear,
chemical and biological arsenal,
North Korea�s nuclear saber rattling, and the role of Russian scientists in the
development of weapons for Iran and other
states.�
The survey said that in Central and Eastern Europe and the former USSR, there are growing
signs of regional division. It
said that in Central Europe and parts of Eastern Europe, along with the Baltic states,
democracy and freedom prevail
and great progress has been seen in the construction of free market economies. But, it
said, in the former Soviet Union,
progress toward open societies has stalled or failed.
The survey also said Slovakia moved from partly free to the free category this year.
Here is a partial list of countries:
Afghanistan - Not Free
Albania - Partly Free
Armenia - Partly Free
Azerbaijan - Partly Free
Belarus - Not Free
Bosnia-Herzegovia - Partly Free
Bulgaria - Free
China - Not Free
Croatia - Partly Free
Cuba - Not Free
Czech Republic - Free
Estonia - Free
Georgia - Partly Free
Hungary - Free
Iran - Not Free
Iraq - Not Free
Kazakhstan - Not Free
Kyrgyz Republic - Partly Free
Latvia - Free
Lithuania - Free
Macedonia - Partly Free
Moldova - Partly Free
Poland - Free
Romania - Free
Russia - Partly Free
Slovakia - Free
Slovenia - Free
Tajikistan - Not Free
Turkmenistan - Not Free
Ukraine - Partly Free
Uzbekistan - Not Free
Yugoslavia (Serbia and Montenegro) - Not Free
The survey said that Nagorno-Karabakh, Abkhazia, Transdniester and Chechnya, which it
described as disputed lands,
are all in the �not free� category.
by Jean-Louis Doublet
NEW YORK, Dec 23 (AFP)
The euro�s debut will create a virtual transatlantic money market, tempting Americans to
invest in Europe and Europeans
to adopt US-type investment strategies.
�Eleven sub-scale capital markets will be consolidated into a single market as important
as the dollar market. This leap
in scale will accelerate the movement of European finance from a bank-centric model to a
more dynamic market-centric
model,� said Kevin Mellyn, of Mercer Management, a US consulting firm.
�Europe is waiting to explode. It is the US in 1968. By the end of the decade, every
European will be invested in
equities,� predicted Tania Zouikin, CEO and chief investment officer of BatteryMarch
Financial Management, a
subsidiary of Legg Mason.
US investors, starting to feel cramped in their domestic market but distrusting the
hazards of emerging markets, are
waiting for the euro in order to increase their holdings in European stocks and bonds.
Even before the euro�s arrival, their transactions in European Union (EU) stocks between
1985 and 1997 shot up from
19.4 billion dollars to 740.4 billion dollars a year. From 1988 to mid-1997, the assets of
US institutional investors soared
from 48 billion to 200 billion dollars.
The euro will reinforce the trend as risks shrink, making for greater fluidity of
transfers among the 11 countries that
share the single currency, and creating a bond market, both public and private, 20 percent
larger than that of the United
States.
At the same time, European investors are expected to change their habits and turn to
investments in stocks and bonds,
which can be more profitable than traditional savings.
In the bond market, US brokerage house Salomon Smith Barney predicts a �securitization of
European savings� as
happened in the United States.
Corporate and private debt will be transformed into negotiable stocks on markets with a
choice of rates that vary
according to risk.
�Asset-backed securities and corporate bonds should loom large on that menu of new
opportunities, though it will take
several years for that menu to build up,� said Graham Bishop of Salomon Smith Barney.
But Kevin Mellyn predicted that �Europe is going to remain more hostile to markets than
we do. But economics are
going to rule.�&127;
Added Tania Zouikin: �It is hard to think that US companies can go to the French market
to offer portfolio investments
in English.�
American Express, well-established in Europe, in January will offer products drawn up in
euros to the French, the
Germans and the British.
�We�ve had real high interest rates since the 70s and that has become a disincentive to
invest in equities,� said Zouikin.
But for companies as well as for states the ease with which capital flows from one country
to another will force them to
submit to market discipline as the national factor loses its importance.
�The existence of very large and liquid capital markets may well have profound political
implications for the European
Union. Institutional investors � such as pension and life insurance funds � may
neither be, nor feel themselves to be,
restricted to securities offered by their own governments,� said Graham Bishop.
He predicts the different states will compete among themselves and with a proliferation of
non-governmental issuers,
such as regional administrations and companies, representing a new credit opportunity for
the economy.
PARIS, Dec 23 (AFP)
The move towards closer union in Europe started in 1951. Here is a list of the major
dates:
April 18, 1951: Six European states � Belgium, France, Germany, Italy, Luxembourg, the
Netherlands � sign the
Treaty of Paris creating the European Coal and Steel Community (ECSC).
March 25, 1957: ECSC members sign the treaties of Rome creating the European Economic
Community (the EEC or
Common Market) and the European Atomic Energy Community (EAEC).
January 5, 1958: The treaties of Rome take effect establishing the new European
institutions including the Council of
Ministers, the European Commission or executive body, and the European parliamentary
assembly.
July 30, 1961: The Common Agriculture Policy (CAP) takes effect guaranteeing price
supports to ensure a fair standard
of living for European farmers and protecting them against outside competition.
July 6, 1965: France recalls its permanent representative to the EEC after the six member
states failed to reach
agreement on financing for the CAP.
January 29, 1966: After a six-month absence, France again takes up its seat on the Council
of Ministers after getting
other members to maintain the rule that voting must be unanimous when the vital interests
of a member state are
involved.
July 1, 1968: The six members do away with trade barriers among their states and adopt a
common customs tariff policy
for merchandise coming from outside the EEC.
January 1, 1973: Britain, Denmark and Ireland join the EEC. Norway, which had signed a
membership treaty, pulls out
after Norwegians reject EEC membership in a national referendum.
March 13, 1979: The European Monetary System (EMS) takes effect.
June 7-10, 1979: Members of the European Parliament are directly elected by voters in
their home states for the first
time.
January 1, 1981: Greece enters the EEC, bringing membership to 10 states.
January 1, 1986: Spain and Portugal enter the EEC, making 12 members.
February 7, 1992: The Maastricht Treaty is signed, replacing the EEC with the European
Union to enhance political and
economic union and planning for the launch of a single European currency on January 1,
1999 at the latest.
January 1, 1993: The single European market takes effect.
November 1, 1993: The Maastricht Treaty on European Union takes effect.
January 1, 1995: Austria, Finland and Sweden join the European Union, bringing membership
to the current 15 states.
March 26, 1995: The Schengen accord on open borders takes effect, lifting border controls
among states that have
signed the accord and boosting cooperation among police and courts.
October 2, 1997: The Treaty of Amsterdam is signed, broadening European Union.
December 13, 1997: The 15-member European Union launches the process to enlarge membership
to include 10
Eastern European states and Cyprus.
March 25, 1998: The European Commission formally recommends 11 EU members to take part in
the launch of the
euro in 1999: Austria, Belgium, Finland, France, Germany, Ireland, Italy, Luxembourg,
Netherlands, Portugal and Spain.
January 1, 1999: The new single European currency, the euro, is to be launched on
wholesale financial markets at the
start of a three-year transition for businesses before it becomes legal tender on January
1, 2002.
PARIS, Dec 23 (AFP)
The single European currency that will come into effect on January 1 is far from being the
first example of a European
currency union.
A single coinage accepted as tender across a wide range of territory was established in
Roman times, and regional
currency unions have marked European history at several stages.
Key dates in the advance to the euro:
30 B.C.: Emperor Augustus reforms the Roman monetary system using new, almost pure gold
and silver coins.
284 A.D.: Emperor Diocletian reforms the coinage in a bid to overcome chronic inflation
and sets up a single currency,
establishing a primitive gold standard.
752: Pepin the Short of France, the father of Charlemagne, introduces the denier, a new
silver coin that remains
Europe�s standard currency for the rest of the Middle Ages. It also serves as a model
for the English penny issued a few
years later.
925: Athelstan ousts the Danes and unites the whole of England, finally establishing a
single national currency.
1250: Italian city-states corner the gold trade with North Africa. Genoa, Florence and
Venice mint their own gold coins,
which are widely used and imitated elsewhere. Around the same time, Italian banking
families promote the widespread
use of bills of exchange, creating a continental banking network.
1460-onwards: Principalities in Italy, Switzerland and Germany issue heavier silver coins,
one type of which, the silver
thaler, becomes world famous a few centuries later as the �dollar�.
1861: France, Belgium, Italy, Switzerland and Greece form a Latin Monetary Union in which
the gold and silver coins of
each country are declared legal tender throughout the union, which survived into the
1920�s. United Germany and Italy
also adopt single-coinage systems.
1872: Denmark, Norway and Sweden establish the Scandinavian Monetary Union, setting up a
common coinage. The
union is effectively dissolved by Sweden in 1924.
1979: The European Monetary System comes into force as a method of linking individual
currencies within fixed limits
of fluctuation, and the European Currency Unit is introduced as a unit of European
Community bookkeeping.
March 1998: The European Commission recommends the launch of a single currency called the
euro on January 1,
1999 by 11 countries: Austria, Belgium, Britian, Finland, France, Germany, Italy,
Luxembourg, the Netherlands,
Portugal and Spain. Individual currencies in these countries are to be phased out on
January 1, 2002.