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page 11

  issue 107 link
january 2005   

 

croatia: the indirect impact of EU trade liberalization

“What about the costs? What about the pollution caused by environmental exploitation? We too often see that these costs are being socialized, while the benefits are being privatized…”
Ricardo Navarro, former Friends of the Earth International Chair, at the Nature for Sale Conference, 2004

During the past decade Croatia has undergone a dramatic change in its governance system. The privatization process has created major challenges for the Croatian government as they adjust to the loss of the control measures and mechanisms they were accustomed to. As a result of these changes, they rely strongly on environmental groups to maintain a certain level of public control over the environment and environmental protection.

Its ambition to become a member of the EU means Croatia has had to change its own legislation to bring it in line with EU law, but the results are not always positive. For example, Croatia is required to open up important sectors of its economy to privatization, including the water sector. There are serious risks to the uncontrolled privatization of water and other natural resources. Croatian NGOs have been questioning the secret take-over of a wastewater treatment facility for Zagreb city by the German company RWE. They argue that the Croatian government itself should fulfil its responsibility to provide affordable water and sanitation services to the people, and protect the environment.

In the old communist system the State had full responsibility for the management of natural resources. While this regretfully did not always produce the best outcome, there was at least the basic presumption that natural resources management should benefit society as a whole. Now that resources are increasingly being privatized, resource management is solely for corporate profit. The exploitation of gravel near Zagreb, for example, has a huge negative impact on the environment and local communities but compensation from the companies for the use of these sorts of public mineral resources is not yet being passed on.

A plan to expand the transport of oil over the Adriatic Sea represents another example of the threats from deregulation and privatization. The Adriatic Coastline is an important natural asset for the Croatian people - the tourism sector in that region alone generates some 2 billion dollars per year. However, a major expansion of an oil terminal in the North of the Adriatic Sea is planned, allowing Russian oil to flow via pipelines all the way to Croatia. The risks are twofold: ballast water from oil tankers will be a major cause of environmental degradation, while an oil spill would mean disaster for the Croatian environment, biodiversity, the economy, and the Croatian people as a whole.

more information:
Green Action/Friends of the Earth Croatia

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