Sustainable business development is best conflict prevention, say OSCE seminar participants

VIENNA, 17 November 2003 - The importance of small and medium-sized enterprises (SMEs) in transition economies and their role in economic development and employment is the topic of an international OSCE seminar that takes place in Armenia today and tomorrow.

"The SME sector plays a decisive role in job creation, flexibility and competitiveness of every economy", said Marcin Swiecicki, Co-ordinator of OSCE Economic and Environmental Activities and one of the key speakers at the event.

"Eliminating numerous disincentives to start and operate SMEs can and should be a profound step forward in economic policy that can be undertaken even by governments that might not be able to provide costly active support for SMEs", he said.

More than 120 representatives of the 55 OSCE participating States, international organizations, the business community, civil society, and the academic world gathered in Yerevan for the first preparatory seminar paving the way for next year's OSCE Economic Forum, which will be held in May 2004 in Prague.

In his opening address, Armenia's Minister of Trade and Economic Development, Karen Chshmaritian, stressed the role of SMEs in the reduction of unemployment and poverty, and highlighted the benefits of adopting international best practices.

Maximilian Burger-Scheidlin, Executive Director of the International Chamber of Commerce, stressed the role of SMEs and entrepreneurs in post-conflict rehabilitation, and said they were key players in the de-escalation of a conflict. "I do not know a single nation, where hot conflicts erupted in a fair and just pro-business environment. The best conflict prevention is positive, sustainable business development," he said.

David Smallbone, Head of the Centre for Enterprise and Economic Development Research at Middlesex University Business School, pointed out the importance of effective policies and stressed the need to overcome the "implementation gap" which still exists in many countries. He underlined that SME development contributed to a better social inclusion of women, ethnic minorities, young people, and other disadvantaged groups and offered a means of regenerating disadvantaged areas and communities.

The representative of the Netherlands Chairmanship of the OSCE, Frank van Beuningen, stressed that in the field of the Economic and Environmental Dimension the OSCE "should use its field missions to the maximum, because they are directly involved in creating security, in conflict prevention and rehabilitation".

Ambassador Ivan Naydenov, representing Bulgaria, which as incoming OSCE Chairmanship will chair the 2004 Economic Forum, expressed the commitment of his country to further strengthening and streamlining the OSCE activities in the economic and environmental dimension and underlined the relevance of the theme for next year's OSCE Economic Forum.

More information and speeches will be made available on the website of the Co-ordinator of OSCE Economic and Environmental Activities.