We appreciate greatly the European Commission's support of the OSCE's Economic Dimension as host of this important second preparatory seminar for the Ninth Economic Forum.  We also wish to thank the Romanian Chairmanship and the Office of the Coordinator for Economic and Environmental Activities for their contributions to this seminar.

This seminar's focus on the interaction of globalization and good governance in the public and private sectors is timely.  As economic prosperity in the 21st century becomes more and more linked to participation in the global economy, the need to combat corruption, promote good governance, and foster integrity in the private sector, have emerged as global concerns.  In fact, participants in the first preparatory seminar held in Almaty last November, agreed on the close interrelationship between transparency, good governance, and economic performance.  Indeed, U.S. companies often cite the lack of transparency and fairness in the commercial environment as key impediments to doing business in many transitional countries.   

No country can afford to ignore the ongoing need to address their citizens’ expectations for good governance.  Failure undermines the respect of citizens for their government and breeds suspicion and distrust.  Let’s be clear.  The stability of public institutions is undermined by corrupt insider deal making, bribery of public officials and criminal influence.  These factors impede democratic processes and distort efficiencies of markets, undermining economic growth and discouraging potential investors.

Just over a year ago, the Istanbul Summit Declaration underlined the importance of OSCE involvement in promoting good governance and fighting corruption.  The OSCE Parliamentary Assembly led this call to action and reinforced it with the Bucharest Declaration.  The Chairman's report to the 2000 Ministerial on OSCE Contributions to International Efforts to Combat Corruption defined the role that the OSCE can play to promote good governance.  Our task now is to seek concrete and practical ways to give substance to this important agenda.

Bilaterally, the U.S. government is supporting several initiatives both globally and regionally to improve the transparency of government processes and to strengthen the rule of law.  In Russia, for example, our bilateral business development committee is developing several joint projects to build the rule of law for business, including recent joint publication of a Handbook on Commercial Dispute Resolution in Russia development of Basic Guidelines for Codes of Business Conduct.

During the next several months, the U.S. Department of Commerce plans to develop a cooperative program for good governance and rule of law for business in several countries of Central Asia and Caucasus.  The program is designed as building blocks on which long term and sustainable initiatives could be developed and institutionalized over time, and that will serve the domestic and international business community.

In partnership with the private sector, international organizations, and NGOs, a set of Basic Guidelines for Codes of Business Conduct will be developed to promote good business practices and ethical behavior in commercial relations between private firms and government officials.  The Basic Guidelines will incorporate principles of the domestic business culture as well as general and widely accepted international business principles.  These guidelines could be used as a basis for individual enterprises to establish their own codes of business conduct which promote integrity, accountability and transparency for rule of law in business transactions.  Written codes of conduct and professional standards, even if adopted by only a handful of companies, can influence and alter certain behavior and attitudes over time.

Improving governance has been a key concern underlying the larger developmental assistance programs implemented by the United States in many transitional countries as well.  USAID has implemented judicial re-training and ethics programs, court administration reform and enforcement of judicial decisions, audit and accounting reform, privatization, banking and capital markets reform, legislative oversight, and small business development and micro-credit lending programs from Albania to Kazakhstan.  

Political party development, training for investigative journalists, independent labor unions, and organizational support to the larger non-governmental sector make up critical components of nearly every USAID program overseas.  For, good governance does not depend upon governments alone, but also on the strength and independence of civil society, and its ability to monitor compliance with government-led reforms.  In conjunction with the OECD, for example, USAID has supported an Anti-Corruption Network for Transition Economies, promoting the sharing of best practices among governments, NGOs, and donors via an informal website www.nobribes.org.

While bilateral programs go a long way to support good governance objectives, it is a bigger job than any one country can manage.  We must act together, multilaterally as well.  Within the OSCE, we stand ready to work with OSCE missions and institutions to see how we can support good governance and anti-corruption activities.

During the past year, the OSCE supported public information campaigns on corruption, the transparency of political party financing, and economic transition in Bosnia.  The Office of Democratic Institutions and Human Rights (ODIHR) and the Free Media Representative undertook other activities to support the rule of law and promote investigative journalism.   Another impressive initiative is the OSCE Yerevan Office’s anti-corruption efforts in cooperation with the government of Armenia.  These are positive examples of what can be done when the OSCE works cooperatively and creatively with a member state.  We should consider expanding our efforts in these and to other areas.  In this regard, the Department of State stands ready to provide $150,000 to support similar good governance and anti-corruption efforts proposed by OSCE field missions.

We believe all of us must offer tangible support to promote the central ideas being discussed at this seminar – that at the core of good governance, lie clearly understood rules, which are transparent, enforceable, and non-discriminatory.  These activities also support the findings and suggestions of the Chairman’s Report to the 2000 OSCE Ministerial on the role of the OSCE in international efforts to fight corruption and promote good governance.

We look forward to a lively exchange that will point the way for further productive OSCE work on good governance.  We welcome and support the upcoming meeting in Bucharest and a successful May meeting of the Economic Forum in Prague.