BONN INTERNATIONAL CENTER FOR CONVERSION INTERNATIONALES KONVERSIONSZENTRUM BONN brief 34 Defense Reform and Conversion in Albania, Macedonia and Croatia brief 34 Contents List of Acronyms and Abbreviations 4 Executive Summary 6 About the author Acknowledgements 7 Tobias Pietz Introduction 8 Researcher, Bonn International Center Albania 10 for Conversion (BICC), Germany Defense Reform 10 Defense Conversion 15 Conclusions 20 Macedonia 23 Defense Reform 23 Defense Conversion 29 Conclusions 34 Croatia 36 Defense Reform 36 Defense Conversion 39 Conclusions 46 Overall Conclusions 47 List of Interviewed Persons 50 Annex 52 Endnotes 68 Responsible at DCAF: Marc Remillard, Program Manager for Demobilization and Retraining Editing: Elvan Isikozlu Cover: NATO photos. Macedonian soldiers patrolling along the border with Kosovo. 2 B I C C BONN INTERNATIONAL CENTER FOR CONVERSION INTERNATIONALES KONVERSIONSZENTRUM BONN brief 34 Defense Reform and Conversion in Albania, Macedonia and Croatia Tobias Pietz with Marc Remillard B I C C 3 brief 34 List of Acronyms and Abbreviations AAA Albanian Atlantic Association AAF Albanian Armed Forces ANP Annual National Program ARM Armed Forced of Macedonia BA&H Booz, Allen and Hamilton CAF Croatian Armed Forces CARDS Community Assistance for Reconstruction, Development and Stabilization COSS Council for Oversight of the Security Services DP Democratic Party of Albania DPA Democratic Party of the Albanians DUI Democratic Union for Integration EAPC Euro-Atlantic Partnership Council EPD Economy and Privatization Directorate ESDP European Security and Defense Policy EU European Union ICTY International Crime Tribunal for the Former Yugoslavia IOM International Organization for Migration JNA Army of the Federal Republic of Yugoslavia JNSC Joint National Security Committee LEPEZA (spectra) Macedonian Resettlement Project LTDP Long Term Development Plan MAP Membership Action Plan MAPE Multinational Advisory Police Force MOPO Ministry of Public Order MPRI Military Professional Resources Inc. NACC North Atlantic Cooperation Council NAMRA National Association of the Military in Reserve NCO Non-Commissioned Offi cer NDC National Demilitarization Center NLA National Liberation Army PARP Planning and Review Process PCC Prague Capabilities Commitment PDP Party for Democratic Prosperity PG Partnership Goals PMC Private Military Company RASDP Reintegration Assistance for Separated Defense Personnel SAA Stabilization and Association Agreements SAIC Science Applications International Corporation SAP Stabilization and Association Process 4 B I C C acronyms SDR Strategic Defense Review SDSM Social Democratic Union of Macedonia SP Socialist Party of Albania SP Stability Pact for South- Eastern Europe SPECTRA Separated Personnel Care and Transition Program TDF Territorial Defense Forces TRADOC Training and Doctrine Command UNEP United Nations Environment Program WEU Western European Union The Geneva Centre for the Democratic Control of Armed Forces (DCAF) was established in October 2000 on the initiative of the Swiss government. The Centre encourages and supports states and non-state governed institutions in their efforts to strengthen democratic and civilian control of armed and security forces, and promotes international cooperation in this fi eld, initially targeting the Euro-Atlantic regions. To implement these objectives, the Centre: collects information, undertakes research and engages in networking activities in order to identify problems, to estab- lish lessons learned and to propose the best practices in the fi eld of democratic control of armed forces and civil-mili- tary relations; provides its expertise and support to all interested parties, in particular governments, parliaments, military authorities, international organizations, non-governmental organizations, academic circles. Geneva Centre for the Democratic Control of Armed Forces (DCAF) Rue de Chantepoulet 11 P. O. Box 1360 CH-1211 Geneva 1, Switzerland Tel: +41 (0)22 741 77 00 Fax: +41 (0)22 741 77 05 E-mail: [email protected] URL: http://www.dcaf.ch B I C C 5 brief 34 Executive Summary Albania, Macedonia and Croatia subordinate. The relations between Regarding the concrete programs are entering a phase of defense the main security players, such as the which are currently implemented restructuring that most Eastern Parliament, the President, the Prime for the reintegration of redundant European countries have already Minister, and the Defense Minister personnel, only Croatia’s SPECTRA surpassed. A suffi cient degree of demonstrate contradictions between program can be judged as successful stability has been established in the defense laws and everyday practice. by the author, while all the other Western Balkans following the wars Very few NGOs are involved in programs are either defi cient or have and domestic unrest of the 1990s, in security and defense matters, as they just entered the implementation which reform processes and potential mostly repeat the stereotypical goal of phase with very modest outcomes. disarmament was brought to a halt. NATO integration without providing The lack of available funding and This brief deals with the military reform civilian expert input. Additionally, qualifi ed expertise for the preparation and the defense conversion process in the legacy of the communist past and implementation of reintegration the aforementioned countries. Among continues to perpetuate a culture of programs delayed the start of the the issues covered are the adoption and secrecy and infl uences civil-military LEPEZA program in Macedonia. implementation of strategic-doctrinal relations in Albania, Macedonia and At the same time, the inability of the documents, and the modernization Croatia. MoD in Albania to offer a realistic and downsizing of armed forces, reintegration program has forced it to including the reintegration measures The fi ndings of this brief further focus on improving pension benefi ts for redundant personnel and the show that the defense reform for ex-military men, despite the fact arrangements for sale and conversion process in the Western Balkans is that funding capabilities to implement of military bases. complex. This is because it involves the pension law for ex-offi cers is rather not only the improvement of civilian minimal. The current goal of defense reforms and democratic oversight and the in Albania, Macedonia and Croatia modernization of the armed forces The conversion of military sites consists mainly of establishing small, and the Ministries of Defense, but also remains vague in all three countries. modern, effective, deployable and the adaptation of the armed forces State offi cials often equate the term interoperable professional armies. to the new global, regional and local with the transfer or sale of military With the adoption of strategic strategic environment. Yet public property and equipment, or a documents, legal frameworks, and with opinion in Albania, Macedonia and modernization or income generation, the downsizing of personnel already Croatia associates defense reforms but not necessarily with benefi ts to in an advanced stage, the essential more with the closure of military sites, individuals, local communities or yardsticks of defense have been met. loss of employment and a decline in regions. At times, the modernization This brief concludes that the reforms living standards for former military of military bases for new operational have been guided primarily by external personnel. Despite achievements in the tasks is also referred to as conversion. actors, namely by NATO, foreign defense reform process, the Western As a rule, the national MoDs are Private Military Companies (PMC) and Balkan countries have achieved the institutions that are responsible bilateral support by the US and various differing degrees of success regarding for implementing and controlling EU countries. NATO’s infl uence has the restructuring of their armed the conversion of military property. played a particularly formative role, as forces, the reintegration of redundant Consequently, sale or renting is used as reforms are one of its priority issues, military personnel, and the conversion the main “conversion model” with the carried out through various programs of military sites for civilian purposes. main purpose being to generate funds. and activities. All three countries The reintegration of ex-military men Such a money-making approach may in consider these reforms as a test of into civilian life remains a secondary part explain the lack of transparency in their capability and willingness to problem, as it is not an integral part the process, and why the MoDs cannot adopt and implement the rules and of defense reform. The issue does be seen as impartial brokers. standards of NATO as well as a step not seem to be a priority for NATO towards potential EU membership in or PMC either, leaving it up to weak To improve the overall performance of the future. national institutions that act under the conversion activities of the three huge fi nancial constraints and with countries, this study recommends to: Theoretically, defense reform should limited integration possibilities of help adjust national institutions to national economies and labor markets. Increase transparency in all NATO standards in civil-military An exception to this is the strong, planned and currently undertaken relations as well. This brief argues fi nancial and structural involvement conversion activities, but that the role of national institutions of the International Organization especially within the process of in guiding the reforms remains rather for Migration (IOM) in the Croatian the transfer and sale of military reintegration process. bases, sites and assets. The model 6 B I C C summary of an independent agency for Acknowledgements conversion would guarantee more transparency and streamline The author would like to thank his bureaucratic procedures. colleagues at BICC for their support, particularly Andreas Heinemann-Grü- Avoid duplication of structures der for his continuous and substantial and efforts but use synergies such input into the study; Elvan Isikozlu for as the integration of IOM into the her language editing and proof-reading; set-up of the SPECTRA program, Michael Brzoska for providing helpful which could be used for other comments; and Svenja Bends and Kaska activities in defense conversion Moraht for the layout and publishing of as well. Moreover, NGOs this study. should be involved in making the process more cost-effi cient, At our partner organization for this study and, in the case of retraining – the Geneva Center for the Democratic and resettlement, to have civilian Control of the Armed Forces (DCAF) partners on board for reintegrating – the author would like to thank Marc ex-military into society and the Remillard for his comments and coope- economy. ration. Moreover, Fréderique Jaquemin from NATO's Economic Directorate Drop high expectations for profi ts was very supportive and arranged mee- from transfers and sales. They tings with NATO personnel involved in are not likely to materialize. The military reform in the Western Balkans. environmental issues in particular Appreciation goes to the NATO Expert could backfi re on the planned Team on Defense Conversion for pro- sales. An option to attract new viding a cooperative atmosphere on our funds in times of low donor mission to Croatia in spring 2005. interest for military reform is to request fi nancial support for the Numerous people were supportive in clean up of polluted military sites. the three countries of this study, as well Though this presents no fi nancial as important sources of information. gain in the defense budget, it In Croatia, main thanks go to Zvonko presents a positive benefi t to Popovic and his SPECTRA team in communities. particular for always being available and eager to help, as well as Gregoire Increase and institutionalize the Goodstein and his team from the IOM RASDP Project. In Albania, Arben Gjata exchange of experiences in the was indispensable for the verifi cation region on defense reform and of the data and for providing detailed concrete conversion projects. explanations of the defense and security Structures like the new Defense issues in his country. In Macedonia, Dane Conversion Cell at RACVIAC can Taleski was an invaluable resource on provide important support for this political and military matters. purpose. Nevertheless, it goes without saying Provide the message that no social that only the author is responsible for benefi ts automatically result from the views expressed in this study. a military career, but rather that each soldier has a civilian identity and personal responsibility to society. B I C C 7 brief 34 Introduction Defense reform, the restructuring consists in establishing small, modern, process of military reform. This of armed forces, NATO effective, deployable and interoperable feedback could then be used to integration and defense conversion are professional armies as opposed to formulate lessons learned to better the common issues for the Western Balkan conscript-based forces. national processes of each country countries. International organizations, analyzed in this study. such as the Stability Pact for South More specifi cally, this study analyzes Eastern Europe (SP) and NATO, think the developments, achievements, and In discussing various elements of tanks, NGOs, and private companies shortcomings of defense reform and the defense reform four aspects are are trying to respond to a growing defense conversion in Albania, Croatia presented: fi rst, the strategic planning, demand by national governments and Macedonia. The study attempts e.g., those documents necessary to for fi nancial help and expertise to single out the main factors that develop a conceptual orientation of to cope with the implications and infl uence military reform and defense the whole defense reform; second, consequences of military reforms and conversion. It is based on information the implementation process; third, the defense conversion.1 Similar to other gathered during fi eld trips to all three characteristics of armed forces to be areas of post-socialist transition and countries in March and April of 2005, achieved by the reform; and fourth, transformation, the Western Balkan and to NATO in December 2005. basic principles for executing the states are entering a phase which most Albania, Croatia, and Macedonia were process. This will include the security Eastern European countries have selected to complete a series of studies and defense strategy, the fi nancial already passed with varying degrees issued jointly by the Geneva Center aspects of the process as well as the of success. A suffi cient degree of for the Democratic Control of the strategic defense review. stability has been established in this Armed Forces (DCAF) and the Bonn region following the wars and domestic International Center for Conversion Defense conversion is seen by national unrest of the 1990s, in which reform (BICC) covering almost all Western and international actors as an integral processes and potential disarmament Balkan countries.3 part of a comprehensive Defense and was brought to a halt. Euro-Atlantic Security Sector Reform process in integration is becoming a likely The text of the following study the Western Balkans.4 Conversion has prospect for a growing number of has three country chapters and been described as the transformation states in the region while old threat an overarching conclusion with and re-use of various kinds of perceptions are slowly changing. recommendations. Each country military assets for civilian purposes.5 Judging by the recent strategic defense chapter begins with a general Therefore, activities like retraining and and security papers published in description of the state of the military resettlement of redundant military the region, military reforms and the reform, the status of Euro-Atlantic personnel, and redevelopment, clean- resulting conversion needs are gaining integration, and the degree of progress up of environmental contamination, importance in all Western Balkan in establishing functioning civil-military and rehabilitation of military bases all countries. relations. The main subchapters are the fall within the realm of conversion. analysis of policies, plans and activities However, with regard to the defense This study deals with military reform in the fi eld of military reforms and conversion in the Western Balkan and the defense conversion process the two most relevant fi elds of states—namely in Croatia, Albania and in general. Among the issues covered defense conversion: the retraining and Macedonia—national and international are the adoption and implementation resettlement of discharged military actors involved are using differing of strategic-doctrinal documents, and personnel and military base conversion. defi nitions of and approaches to this the modernization and downsizing concept of conversion, often following of armed forces.2 Part of the The criteria chosen to measure the slightly diverging agendas. The concept implementation of these goals is the achievements and shortcomings try to of defense conversion itself remains build-up of an appropriate defense answer the following key questions: vague, but it is mostly understood as planning system, an adequate and how realistic is the process of reform referring to downsizing, resettlement affordable resource allocation, a proper planning (realism)? How effi cient and reintegration of military personnel, and effi cient budgetary system, a clear, is the institutional framework of the conversion of military bases and transparent and effi cient procurement reform (effi ciency)? How suffi cient property as well as the conversion process, human management systems, are the fi nancial and human resources of defense industries. State offi cials appropriate social programs to deal (suffi ciency of resources)? What is the often equate the term with the transfer with the adverse effects of the reform, role of external support for reforms or sale of military property and public communication strategies, and (external support)? By applying equipment; with modernization or an effi cient decision-making system. these indicators the author aims to income generation; but not necessarily The ultimate goal of these reforms provide feedback on achievements with the benefi ts to individuals, local and shortcomings of military reforms communities and regions. Sometimes and defense conversion and to make the modernization of military bases for recommendations on managing the 8 B I C C introduction new operational tasks is also referred the defense reform in the Western secure governmental and parliamentary to as conversion. The Ministries of Balkans presents a huge challenge for support for suffi cient resources. Given Defense of the three countries under all countries concerned and is a test the importance of a coordinated inter- study show similar expectations of their capability and willingness to agency approach, the reform process and visions of defense conversion adopt and implement the rules and should also be designed as a national as those of other Balkan countries standards of NATO. However, it is project. such as Serbia and Montenegro.6 For understandable that the armed forces these countries, defense conversion is of the Western Balkan countries The defense reform process in the expected to provide funding for the are psychologically and linguistically Western Balkans is complex. It modernization of military bases or unprepared to immediately start co- involves the improvement of civilian overall military reform. operating with NATO. and democratic oversight, the modernization of the armed forces However, experience shows that it is Although reform needs are perceived and the Ministries of Defense, the unrealistic to see defense conversion differently in the individual countries, adaptation of the armed forces to as a means of generating major funds “NATO members usually refer to three the new global, regional and local for defense reform.7 Savings through ‘baskets’ of ideas of defense reform”:11 strategic environment—rendering downsizing are only moderate and the the armed forces capable to deal with direct income from the sale of assets 1) Defense restructuring and reform of the new kinds of security threats is markedly reduced by the costs of defense management practices and and confl icts—and the capability for environmental clean-up. As such, institutions; international interoperability to help the profi ts of conversion for society solve crises and cope with terrorist are often not directly measurable in 2) Development of defense capabili- threats.13 This presents a huge burden fi nancial terms, but are rather of a ties required to meet both new and not only for the defense sector alone, general nature: a cleaner environment, traditional defense-related challen- but also for the environment and additional and improved infrastructure ges; and society as a whole. for local communities, and more housing, etc. Similar to the way the 3) Action that will increase the coun- Peace Dividend did not materialize as tries’ ability to contribute to NATO- had been hoped, the profi ts of defense led crisis response operations. conversion in the Western Balkan Those involved in NATO’s PfP countries are unlikely to meet the program and respective activities optimistic expectations currently held with the partner countries in the in the regional Ministries of Defense.8 Western Balkans have interoperabili- ty with NATO forces as their prime The defense reforms in the Western objective. Defense conversion is Balkans have been primarily driven by therefore a function of the overall the involvement of NATO. NATO’s goal of modernizing defense and outreach has played an indispensable military related strategies, structures role in the region and reforms are one and equipment.12 Interoperability in of its priority issues, carried out in possible future joint operations is particular through various programs the prime objective for NATO, and such as the Euro-Atlantic Partnership this is likely to remain so in the near Council (EAPC), the Partnership future. for Peace (PfP), the Membership Action Plans (MAP), and the Planning Whatever the underlying conception and Review Process (PARP). These of “conversion”, the reform process programs are considered as “a vehicle should be guided by basic principles. to promote essentially the same vision Any reform must be accompanied by of defense reform, depending on each strong political support, and should be Partner’s needs”.9 NATO through carefully planned and adaptable during its PfP and MAP is among the main the course of implementation. Defense promoters of defense reform in the reform requires a clear understanding Euro-Atlantic area.10 In particular, of the security environment, the capability to anticipate and translate threats and challenges into adequate force plans as a part of an overall strategic assessment, and the ability to B I C C 9 brief 34 Albania 14 Defense Reform support for closer cooperation with their military service but had chosen NATO. Consequently, the Albanian to remain in the AAF were to make Albania has not experienced an government holds the opinion that up the future professional army. Plans overt interstate confl ict or frontier the Albanian Armed Forces (AAF) foresaw a force strength of 14,500 change during the past decade, but have to be downsized, professionalized active duty personnel in peacetime, rather a spell of internal disorder in and modernized in order to be with an additional 2,000 civilians. They 1997, which required a brief NATO compatible with other armies in also authorized 20,000 soldiers in military intervention (“Operation NATO. Therefore, almost all changes reserve formations.24 Alba”). This was sparked by the within the AAF are the result of the collapse of the pyramid investment goal of NATO membership, including However, in mid-2003, due to a schemes that were initiated in the early the revised draft of the Military reassessment of security threats and 1990s, and many people lost their Strategy (2004) labeled as “Strategy affordable resources, the Albanian life savings as a result. This situation of NATO-integration”. This fact has Assembly authorized a further gave rise to widespread public unrest generated some criticism in Albania downsizing from 31,000 to 16,500 in March 1997, during which 1,300 that the real mission of the AAF is to until 2010. In fact, the revised Strategy army stores were looted by the general meet the NATO military standards of 2004 no longer mentions the population. During this turmoil, it as soon as possible.18 However, the strength of the reserve, but rather is reported that over 550,000 SALW Military Strategy sees the main mission states: “the AAF’s active component and about 900 million rounds of of the AAF as providing combat will be supported by an appropriate ammunition were taken from military readiness for defense; monitoring and and reasonable Reserve Force.”25 This depots. The government lost control surveillance of Albania’s sea, air, and decision was based not only on fi scal over most of the country and the land territorial space; participating in realities and a mission analysis, but environment became highly insecure. humanitarian assistance and disaster also on the desire to meet NATO relief operations; fi ghting terrorism; criteria for membership. A former During the civil unrest the army and participating in peace support high-ranking defense offi cial claimed was also disintegrated. However, operations.19 that the current personnel strength of the process of defense restructuring the AAF was something controversial, was not so much infl uenced by The AAF has been undergoing estimating them to be at around 12,000 events in the security environment transformation since 1992. Albania’s – 13,000 as of March 2005.26 NATO as by “…frequent changes of armed force structure until the year offi cials revealed the intriguing fact defense policy, a lack of any realistic 2000 comprised 5 divisions/32 that the AAF has reached the number resource management system, and a brigades with no engineers, logistic of 16,500 by this year, almost 5 years tendency to develop plans for force or civil protection structures. The ahead of the original plan.27 structures that try to save the jobs main aim of AAF restructuring, of the existing offi cer corps.”15 Basic which is planned to be completed According to the Military Strategy, strategic documents, like the National by 2010, is to achieve a smaller but the AAF is restructured into 5 Security Strategy and the Defense more capable force with appropriate Commands: Land Forces, Air Forces, Policy, were adopted in Albania fi nancial resources.20 In 2000, the Navy Forces, Training and Doctrine, only in February 2000, the Military Albanian government put forward a and Logistic Support Command. Strategy in August 2002, while the plan with two stages: to fi rst transform According to the revised Military White Book is still pending to be the AAF into smaller, more effi cient Strategy, the Land Forces are based passed through parliament.16 These forces during 2000-2004, and then to mainly in Zall Herr, Vau i Dejes, documents describe plans for the modernize them during 2005-2009. Poshnje and Yzberisht. They consist implementation of the reform process The AAF had to be downsized from of a Rapid Reaction Brigade, the up to 2010 in a more realistic manner, 43,000 to 31,000 troops.21 In 2002, Engineer Brigade, a Commando compared to previous plans. The Albania launched a 10-year defense Regiment, and a Communication Military Strategy set three main goals reform strategy sponsored by the US Battalion. Five Reserve Infantry for the defense reform, namely “…to Department of Defense in order to Brigades are subordinated to Land develop a professional army, reducing trim down and thoroughly modernize Forces Command. The Air Forces are the number of conscripts and increase the AAF.22 The Military Strategy of based mainly in Tirana (Rinas) and defense budget per 0.1 per cent of 2002 mandated the AAF’s strength Farka, as well in two reserve bases GDP annually till 2010.”17 to be at 18,00023, 70% of which have (Kuçove, Gjader). They consist of one to be professional soldiers, and 30% multi-purpose helicopter Regiment, Since NATO’s “Operation Alba”, conscripts. Conscripts that ended fi xed-wing surveillance aircraft, there has been international support an air defense brigade and troop for security improvements, and there School. Navy Forces consist of two is widespread public and political Naval Districts (Durres and Vlora), a 10 B I C C