Geopolitical and economic changes in the balkan countries

Geopolitical and Economic Changes in the Balkan Countries Geopolitical and Economic Changes in the Balkan Countries NICHOLAS V GIANARIS Westport, Connecticut London Library of Congress Cataloging-in-Publication Data Gianaris, Nicholas V Geopolitical and economic changes in the Balkan countries / Nicholas V Gianaris p cm Includes bibliographical references (p ) and index ISBN 0–275–95541–9 (alk paper) Balkan Peninsula—Economic conditions Balkan Peninsula— Ethnic relations Balkan Peninsula—Social conditions Balkan Peninsula—Politics and government Balkan Peninsula— Relations—European Union countries European Union countries— Relations—Balkan Peninsula I Title HC401.G49 1996 330.94′4—dc20 95–52997 British Library Cataloguing in Publication Data is available Copyright  1996 by Nicholas V Gianaris All rights reserved No portion of this book may be reproduced, by any process or technique, without the express written consent of the publisher Library of Congress Catalog Card Number: 95–52997 ISBN: 0–275–95541–9 First published in 1996 Praeger Publishers, 88 Post Road West, Westport, CT 06881 An imprint of Greenwood Publishing Group, Inc Printed in the United States of America The paper used in this book complies with the Permanent Paper Standard issued by the National Information Standards Organization (Z39.48–1984) 10 To the suffering peoples of the Balkans Contents Illustrations ix Preface xi Introduction A Historical Perspective 13 Hellas (Greece) 35 Turkey 61 The Former Yugoslavia 83 Other Balkan Countries: Albania, Bulgaria, and Romania 107 Economic Growth, Foreign Trade, and International Relations 127 Balkan and European Cooperation 157 Notes 189 Bibliography 205 Index 215 Illustrations TABLES 7.1 Economic Indicators of the Balkan Countries, 1994 132 7.2 Sectoral Distribution of GDP, Growth, Inflation, Investment, and Government Budgets for Balkan Countries, 1994 132 7.3 Foreign Trade, Current Account Balances, International Reserves, and Foreign Debt of the Balkan Countries, 1994 (billion current U.S dollars) 143 8.1 Economic Indicators of the EU (European Union) Countries, 1994 164 FIGURES 3.1 Money Supply (M1) and Velocity of Money (GDP/M1) for Greece 57 4.1 Money Supply (M1) and Velocity of Money (GDP/M1) for Turkey 79 6.1 Money Supply (M1) and Velocity of Money (GDP/M1) for Romania 124 Index Abdul Hamid II, Sultan, 28–29, 73 Achaean League, 2, 14, 16 Achaeans, 2, 13, 14, 35 Adrianople, Greece, 68 Aegean Islands, 17, 38, 39 Aegean Sea, 134 Aegina, 14 Aeoleans, 1, 35 Agapiou AE, 58 Agno, 58 Agrarian Party, 113 Alaric I, King, 18 Alawites, 78–79 Albania: Balkan cooperation and, 160; Comecom and, 179; drug traffic and, 111; early inhabitants of, 19–20; economic history of, 109– 10; economic model of, 127; economic reforms by, 7; European Union and, 179, 180, 181; foreign trade and, 58, 110–11, 131, 179; GNP and, 131; Greece and, 4, 58; highway construction and, 59; Italian investment in, 108; Kosovo and, 100; minorities in, 3; Muslim conversions and, 103; Ottoman rule and, 21, 27, 107; political history of, 107–9; privatization and, 111; World War II and, 32, 89, 90, 108–9 Albania Labor Party (ALP), 109 Albanian League, 107 Albkrom state enterprise, 111 Albpunndimpeks, 58 Alexander, King, 88 Alexander of Battenburg, King, 28 Alexander the Great, 2–3, 14, 15–16, 38, 66, 105, 133 Alexandroupolis, Greece, 58, 59 Algiers, 29 Alia, Ramiz, 110 Alpha Finance, 59–60 Alps, Aluminium de Greece, 54 Ambelakia enterprise, 41 American International Group, 116 Amoco Romania Petroleum Company, 123 216 Amyntas, King, 2–3 Anatolia, 47–48, 61, 65–66, 149 Andov, Stojan, 105 Anglo-Levantine Company, 158 Anti-Fascist Council for the Liberation of Yugoslavia (AVNOY), 90 Antonescu, Ion, 121–22 Aratus, 14 Aristotle, 3, 5, 15, 36, 162 Armenia/Armenians, 25, 28, 58, 61, 62, 66, 73–75 Armenian Soviet Socialist Republic, 74 Arta, Greece, 147 Ataturk, Kemal, 48, 49, 63, 71–72 Athenaiki Zythopia AE, 58 Athens, Greece: Byzantium and, 39; as civilization center, 14, 36; decline of, 37; Ottoman expansion and, 40; post liberation years and, 44; Tito and, 91; Venetian attack on, 22; World War II and, 52 Athens-Patras highway, 179 Athens Stock Exchange, 56 Athinaiki Hartopiia, 56 Atlantic Club of Bulgaria, 118 Attica, Greece, 38, 44 Augustus, Emperor, 17 Austria, 23, 28, 30, 85–86, 101, 163 Automobile Dacia, 125 Avars, 18, 19, 84 Azerbaijan, 58 Balkan economic change: agriculture and, 129; Balkan cooperation and, 9–10; country comparisons and, 8; debt and, 142–43; foreign aid and, 146–47; foreign investment and, 144–47; foreign trade and, 7–8, 131, 137, 138–39, 142–44; future expectations and, 131; future studies and, 10–11; growth rates and, 128–30; inflation and unemploy- Index ment and, 128; intraregional trade and, 137–38, 139–42; political changes and, 5–6; private versus public sector and, 128; reform measures for, 6–7; regional cooperation and, 129, 131; Salonika and, 133–37; sector trend and, 130–31; transition problems and, 5–6, 161–62; water transportation network and, 134–35 See also specific countries Balkan Entente, 89, 121, 159 Balkan-European cooperation: Balkan common market and, 162; debt problems and, 185–86; foreign investment and, 184, 187; Germany and, 159; historical trends and, 157–61; monetary policy and, 184; trade deficits and, 184–86 See also European Union (EU) Balkan Federation, 158–59 Balkan history: ancient times and, 13– 16; Balkan cooperation and, 157– 61; Byzantine period and, 3, 18–20; early inhabitants and, 1–2, 8; economic cultural developments and, 2–3; geographic complexity and, 5; minorities problem and, 3–5; Ottoman occupation and, 21–26; postliberation years and, 26–33; Romans and, 3, 16– 18; superpower neighbors and, 1– 2, 9, 10, 157–58; World War I and, 30–31; World War II and, 32– 33 See also specific countries Balkan Pact, 96 Balkan Wars, 46 Bank of Credit, 59 Bank of Greece, 50 Baring of Britain, 117 Basic Organization of Associated Labor (BOAL), 97 Index Bayar, Celal, 81 Belgium, 163 Belgrade, Yugoslavia, 89, 134 Benkovski, George, 112 Berisha, Sali, 4, 110 Berlin-Baghdad Railway, 72 Bessarabia, 23, 26, 28, 31, 121, 122 Bey, Enver, 71 Bhutto, Benazir, 154 Biosol AE, 59 Boeotia, Greece, 44 Bolshevik Revolution, 30 Bolsheviks, 47, 48, 90 Boris, King, 113, 114 Boris III, King, 30 Bosnia and Herzegovina: civil war in, 5, 103, 151–52; Croatia and, 156; history of, 103; Muslim conversions and, 103; peace agreement and, 156; postliberation years and, 27; self-management system in, 97; territorial determination and, 98, 100; Treaty of Berlin and, 28; U.S policy in, 153–54 Botev, Khristo, 112 Bottling Hellenic Company, 58 Braila, Romania, 27 Britain: Albania and, 107, 109; Cyprus and, 73, 80–81; electricity production and, 56; European Union and, 163, 164; expansion by, 29; Greece and, 41, 44, 51–52, 159; Ottoman Empire and, 25; Russia and, 28; Turkey and, 158, 159; World War II and, 32, 33; Yugoslavia and, 93 Brown, Ronald, 104 Brown and Root Civil, 59 Broz, Josip See Tito, Marshal Bucharest, Romania, 27 Bugras, Bulgaria, 58 Bukovina, 23, 30, 31, 122 217 Bulgaria: Albania and, 109; Balkan cooperation and, 159, 160; Comecom and, 179; debt by, 142; economic history of, 112–15; economic reforms by, 6–7, 115– 17; European Union and, 179, 180, 181; foreign investment in, 58, 116–17, 131; foreign trade and, 131, 179; future expectations and, 118–19; FYROM and, 105; GNP/GDP and, 131; Greece and, 4, 50, 58; highway construction and, 59; industrial growth in, 130; intraregional trade and, 142; minorities in, 4–5; political history of, 111–14; population migration and, 4, 19; postliberation years and, 27–28; postwar economic growth and, 130; privatization and, 117–18; Russian influence on, 28; social reforms in, 113; territorial grievances and, 31; U.S aid to, 154; World War I and, 30– 31; World War II and, 33, 89, 114; Yugoslavia and, 89–90 Bulgarian Organization of Privatization, 117 Bulgarian Socialist Party, 118 Cantacugenus, John, 68 Capodistrias, Ionanis, 43 Capodistrias, Joannes, 158 Caracalla, Emperor, 18 Caramanlis, Constance, 54–55, 81 Caretaking Committee for the Partisans (ETA), 51 Carol I, King, 119 Carol II, King, 120 Carpathian Mountains, 5, 17 Castriota, George, 21 Catherine, Empress, 23, 24 Ceausescu, Nicolae, 122 Central Cooperative Union, 116 218 Chemiport-Bilimport Company, 146 Chernobyl, Russia, 183 Chevron, 111 Chios, Greece, 40, 49 Christianity, 18, 19, 40–41, 42, 68, 69–70, 103, 149 Churchill, Winston, 33, 46–47, 48, 51, 52, 91 Ciller, Tansu, 78, 154 Circassians, Classical Age, 14 Coca-Cola Bottlers Sofia Ltd., 116– 17 Coca-Cola Company, 111 Comecom, 179 Commercial Bank of Hellas, 59 Commercial Treaty of 1934, 89 Committee for the Coordination of the Europort of Salonika (CCES), 135 Committee of Union and Progress, 70–71 Common Agricultural Policy (CAP), 163, 172 Common Market, 11 Commonwealth of Independent States (CIS), 11, 75, 182 Communist Party (Bulgaria), 114–15 Communist Party (Greece), 51 Company for Economic Development of Albania, 108 Constantine, Emperor, 17, 18 Constantine I, King, 46 Constantine II, King, 53 Constantinople, Turkey: Abdul Hamid II and, 28; Byzantine Empire and, 18, 20, 39, 40, 67; Greek emigration from, 81; Ottoman expansion and, 21, 68; World War I and, 47 Constantinople Agreement, 47 Corinth, Greece, 38, 44 Council of Europe, 78 Index Council of Mutual Economic Assistance (CMEA), 179 Crete, 13, 28, 29, 40, 45, 73 Crevenkovski, Stevo, 153 Crispi, Francesco, 109, 158 Croatia/Croats: Byzantine influence on, 84; economic resources of, 101; history of, 101; political climate of, 101; post-Ottoman years and, 86; Serb conflict and, 5, 97– 98, 101–2, 151, 152, 155–56; World War II and, 90 Croatian Peasant Party, 88 Crusades, 20, 21, 40 Cuza, Prince Alexander, 26–27 Cyprus: Britain and, 28, 29, 45, 73; European Union and, 173, 176; Greco-Turkish conflict over, 80– 82, 149, 183; independence of, 45; U.S aid and, 148 Cyril, 19, 39 Cyrus, King, 66 Czech and Slovak Republics, 181 Dacia, 16 Dalmatia, 15, 22, 101 Danube–Black Sea Canal, 147 Danube River, 16, 18, 134 Declaration of Corfu, 87 Defense and Industrial Cooperation Agreement (DICA), 147–48 Delos, 17 Delta AE, 58, 59 Demirel, Suleiman, 78 Democratic Union Party, Denmark, 163 Desdner Bank, 118 Deukmejian, George, 75 Dimitrov, Georgi, 114, 116 Djilas, Miholovan, 90 Dolanc, Stane, 94 Dondukov-Korsakov, Alexander, 112 Dorians, 2, 13, 35, 66, 105 Index Doronjski, Stevan, 94 Dracula, 22–23 Dresdner Bank, 118, 125 Dromeas AE, 58 Dushan, Stephen, 19, 85, 99 Eagleberger, Lawrence, 153–54 Eastern Orthodox Church, 19 Ecevit, Bulent, 76 Economic Cooperation Administration, 93 Efe, Yoruk Ali, 48 Egnatia highway, 3, 59, 178–79 Egnatia Odos, 59 Egypt, 29 Elcabel Company, 117 Elci, Serafettin, 76–77 Eleusis Shipyards, 59 Eltos Company, 117 Enterprise Funds, 154 Ephesus, Turkey, 67 Epirus, Greece, 45 Erbakam, Necmettin, 65 Erga AE, 58 Erhak-Malatya, Turkey, 147 Euromerchant Balkan Funds, 117 Euromerchant Bank, 117 European Assembly, 74 European Bank for Reconstruction and Development (BERD), 117, 118 European Commission (EC), 55, 59, 60 European Currency Unit (Euro), 147, 163, 167 European Investment Bank, 59, 177 European Monetary System (EMS), 166–67 European Union (EU): agricultural policy by, 163–64, 170; Albania and, 179, 180, 181; balance of payments and, 167–68; Balkan trade and, 147; Bosnian conflict and, 219 154; Bulgaria and, 118, 179, 180, 181; CIS and, 182; concessions by, 8; Croatia and, 102; decisionmaking bodies and, 165; democratic principles and, 165–66; Egnatia highway and, 59; electricity production and, 56; expansion of, 163, 181–82; formation of, 163; future expectations and, 180– 84; Greece and, 54–55, 56, 57, 60, 168–72, 178, 182–83; international financial sector and, 166; intrabloc trade and, 167; labor mobility and, 165, 172, 173, 174, 175, 176–77; monetary policy and, 163, 166–67; revenue of, 166; Romania and, 179, 180, 181; short-term drawbacks and, 180; success of, 165; transportation sector and, 170, 171; Turkey and, 79– 80, 82, 171–77, 182–83; United States and, 155; water transportation network and, 134; Yugoslavia and, 96, 97, 154, 177–78, 180–81 European Union–Yugoslavia Joint Committee, 177 Evren, Kenan, 65 Export-Import Bank, 93 Federal Cypriot Republic, 149 La federation balkanique, 159 Ferdinand, Archduke Francis, 46, 151 Ferdinand, King, 30, 112, 120 Ferdinand, Prince, 28 Fidas AE, 58 Finland, 163 Finno-Tatar race, 19 Former Yugoslav Republic of Macedonia (FYROM), 3, 4, 104–5, 152– 53, 154, 155 Fourlis AE, 58 France, 29, 40, 93, 107, 116, 163 Frederika, Queen, 53 220 French Revolution, 24, 25, 85, 119, 158 French-Romanian Bank, 146 French-Yugoslavian Bank, 146 Front for National Salvation, 122–23 Gagauz, Galati, Romania, 27 Garashanin, Illya, 158 Gatic AE, 58 Genoese, 20, 40 Gentos-Krietary, 58 George, Lloyd, 47, 48 George I, King, 46 George II, King, 50, 52, 89 Georgia, 58 Germany: Balkan common market and, 162; Balkan dependence on, 159; Chernobyl disaster and, 183– 184; drug trade and, 111; electricity production and, 56; European Union and, 163, 164; Romania and, 121, 123; World War I and, 30, 46–47, 101 See also World War II Gheorghiu-Dej, Gheorghe, 122 Giotis AE, 58, 59 Gligorov, Kiro, 4, 105 Global Finance of Greece, 117 Golden Age, 14–15, 35 Goths, 17, 18, 103, 133 Greco-Roman period, 16 Greco-Turkish war, 63 Greece/Greeks: Albania and, 4, 107; Balkan cooperation and, 160, 186– 87; Balkan Entente and, 159; Britain and, 159; budget deficit of, 44, 131; Bulgaria and, 114, 117, 118; Byzantine period and, 39–40; civil war in, 52; cultural influence by, 69; Cyprus conflict and, 81–82, 149; debt by, 142; defense spending by, 182, 183; democratic tran- Index sition by, 36; early inhabitants of, 14, 35–36; economic cultural development in, 36; economic reforms in, 54; economic system of, 127; educational expenditures in, 131; European Union and, 56, 57, 60, 163, 168–72, 178, 182–83; exports by, 45, 131, 169; foreign investment in, 131, 145; foreign trade and, 138, 142; FYROM conflict with, 152–53; geographic position of, 150; GNP/GDP and, 131; Golden Age and, 14–15; industrialization process and, 138; industrial sector and, 171; intraregional trade and, 58–60, 141, 142; Ottoman occupation and, 24–25, 40–42; peasant life in, 44–45; Persian invaders and, 15–16; population migration and, 49; population of, 4; postliberation years and, 28, 30, 42–46; post–World War I period and, 49–50; post–World War II period and, 52–54, 149; privatization and, 56–57; Roman rule and, 38–39, 123; Skopja and, 98; stabilization and development period of, 54–57; tax system and, 36– 37; territorial grievances and, 31; tourism and, 136–37, 171; trade expansion by, 38; trade routes and, 178–79; Turkey and, 47–49, 149, 173, 174, 182–83; U.S relations with, 147–48; World War I and, 30, 46–48; World War II and, 32, 50–52, 89, 108; Yugoslavia and, 96 Greek Auto-Assembly Industry, 56 Greek National Democratic League (EDES), 51 Greek Orthodox religion, 103 Greek Phanariots, 23, 24 Greek Transit Zone, 134 Index Group of Seven, 116 Groza, Petru, 122 Gypsies, Hellas See Greece/Greeks Hellenic Heteria, 59 Hemingway, Ernest, 74 Herakleon, 40 Herodotus, 2, 15 Herzegovina See Bosnia and Herzegovina Hittites, 61, 65–66 Hohenzollem, Charles, 27 Holbrooke, Richard, 153 Homer, 2, 40, 54, 66 Homeric Age, 14 Homeric civilizations, 35 Horton, George, 48 Hoxha, Enver, 108, 109 Hungary, 101, 103, 181 Hurrians, 61 Hussein, Sadam, 76, 78 Igoumenitsa, Greece, 59, 178 Iliad, 66 Iliescu, Ion, 122–23 Illyrians: Albanians and, 20; ancient Greece and, 13, 15; Croatia and, 101; as early Balkan inhabitants, 1; Macedonia and, 105; population migration and, 19; Roman rule and, 16, 18; Thracians and, 2; Yugoslavia and, 83 Inbros, 47 Indian Ocean, 15 Industrial Revolution, 29, 62 Industrial TR, 58 Inonu, Ismet, 63, 72 Insirlik, Turkey, 147 Intercontinental Hotels Corporation, 145 Internal Macedonian Revolutionary Organization (IMRO), 113 221 International Bank of Central Europe, 146 International Finance Corporation, 117 International Monetary Fund (IMF), 64, 125, 179 Intracom AE, 58 Ionescu, Ion, 125 Ionian Islands, 22, 45, 68 Ionians, 1, 14, 35, 61 Iorga, Nicholae, 120, 157 Iran, 76, 103 Iran-Iraq war, 150 Iraq, 76, 77, 150 Ireland, 163, 164 Iron Guards, 120 Islam, 3, 21, 103, 149, 150 Islamic Welfare Party, 65 Istanbul, Turkey See Constantinople, Turkey Italy: Albania and, 107, 108; electricity production and, 56; European Union and, 163, 164; Greece and, 50; Romania and, 121; Turco-Italian war and, 29–30; World War II and, 33; Yugoslavia and, 89 See also Roman Empire Ivan II, King, 19 Izetbegovic, Alija, 103, 152, 154, 156 Izmit, Turkey, 147 Jefferson, Thomas, Jews, 25 Johnson, Lyndon, 81 Justinian, King, 84 Kalavrypa, Greece, 51 Karadzic, Radovan, 151 Karavelov, Lyuben, 112, 158 Kardelj, Edvard, 90, 94 Kassandros, King, 133 Kavala, Greece, 45, 147 Kemal, Mustapha, 62–63, 71 222 Khrushchev, Nikita, 93 Kingdom of the Serbs, 101 Kissinger, Henry, 152, 153 Kogalniceanu, Michael, 26 Kolettis, Ioannis, 43 Kolisevski, Lazar, 94 Kolokotrones, Theodore, 24, 43 Kopelouzos-Balkan Car Impex Company, 146 Korean War, 63–64 Korlou, Turkey, 147 Kosovo, 3, 29, 95, 97, 100 Kozluduy, Bulgaria, 116 Kurds, 61, 65, 66, 75–78, 150 Lavrion, Greece, 37, 38 Laws, 36 League of Nations, 107 Lenin, Vladimir, 46 Lewis, Bernard, 73 Lippmann, Walter, 52 Ljubljana, Slovenia, 102 Lloyds of London, 116 Lupesco, Magda, 120 Luxembourg, 163 Lydia/Lydians, 14, 61, 66 Maastricht Agreement, 55, 167–68 Macedonia/Makednoi: ancient Greece and, 15–16, 35; Bulgaria and, 28; civil unrest in, 29; early Balkan inhabitants and, 1, 14; FYROM and, 3, 4, 5, 152–53, 154, 155; Greek expansion and, 45; political control of, 86; population migration and, 2; Salonika and, 86, 133, 135; territorial determination and, 91, 98; Treaty of Berlin and, 73 Machine Export Industry, 146 Magura Colea, 124 Magyars, 84 Major, John, 181 Index Makarios III, Archbishop, 81, 82 Market Petra, 58 Markezinis, Spyros, 54 Marshall, Alfred, 174 Marshall Plan, 92, 148 Mavrocordatos, Alexander, 23, 43 Mechaniki AE, 58 Mehmet V, Sultan, 47 Mehmet VI, Sultan, 46 Meksi, Alexander, 110 Menderes, Adnan, 63 Metaxas, John, 50 Methodius, 19, 39 Michael, King, 122 Michael the Brave, 112 Midas, King, 66 Mihajlovich, Draza, 90 Miletus, Greece, 35–36 Milosevic, Slobodan, 99, 156 Mimikos AE, 58, 59 Minoans, 13 Misko AE, 58 Mitsotakis, C., 55 Mitsubishi, 145 Mitterrand, Francois, 181 Mohammed II, Sultan, 21–22 Moldavia, 22, 23, 26 Mongolians, 18, 19, 20, 21 Montenegrins, 107 Montenegro, 97, 99–100 Morea, 22, 23 Morosini, Francesco, 22 Moscow Conference, 33, 91 Multifibre Arrangement of 1976, 177 Murad II, Sultan, 21 Mussolini, Benito, 50 Mycanaeans, 13, 35 Napoleon, 101 National Federation of Mayors, 154– 55 National Liberation Committees, 90 Index National Liberation Front (Albania), 108–9 National Liberation Front (Greece), 51–52 National Liberation Movement, 90 National Peasant Party, 31 National Popular Liberation Army (ELAS), 51–52 National Unity Party, 55 Neorion, Greece, 56–57 Neoset AE, 58, 59 Netherlands, 163 New Democracy, 54–55 Niarchos, Stavros, 59 Nicholas I, King, 99 Nikas AE, 58 Nippon Steel Corporation, 145 Noell-KRC, 60 North Atlantic Treaty Organization (NATO): and American troops, 104; Bulgaria and, 118; Greece and, 53, 147, 182; Romania and, 122; Serb conflict and, 151, 153, 154, 156; Turkey and, 53, 65, 147, 150, 182; U.S involvement in, 155 Novorossiyisk, Russia, 58 Obrenovich, Milosh, 24 Ocal, Abdurrahman, 77 Oglu, Pasvan, 23 Olympic Airlines, 55 Omonia, Operation Manna, 52 "Organic Statutes,” 23 Organization of Government Property, 123 Organization of Telecommunications of Hellas (OTE), 56 Ortakoy, Turkey, 147 Otto, King, 43–44 Ottoman Empire: administration of, 22; Albania and, 21, 28, 107; Athens and, 40; Britain and, 25, 158; 223 Bulgaria and, 111–12; Constantinople and, 21, 68; Cyprus and, 149; expansion of, 21, 68; Greece and, 23–25, 40–42; industrial revolution and, 25, 26; liberation wars and, 23–25; modern Turkey and, 150; religion and, 68; Romania and, 22–23; Salonika and, 68, 69; taxation and, 69–70; trade and, 21– 22, 25, 69; Venetians and, 22; wealth distribution and, 68–69; Yugoslavia and, 84–85, 86 Ozal, Turgut, 151 Pangalos, Theodore, 49 Pan-Hellenic Socialist Movement (PASOK), 55, 56 Panoyot Volvo Company, 117 Papadopoulos, George, 53 Papanastassiou, Alexander, 49, 159 Papandreou, A., 55 Papandreou, George, 52 Papoulias, Karolos, 153 Parthenon, 22 Pasha, Ali, 23, 24 Pashsich, Nichola, 87, 88 Patras, Greece, 178 Paul I, King, 52 Pavelic, Ante, 90 Peace Accords, Dayton, Ohio, 104 Peasant’s Party, 30–31 Pekor AE, 58 Pelasgians, Peloponnesian War, 37 Peloponnesus, Greece, 13, 40, 44, 68 Pentilicus, Mount, 38 People’s Republic of China, 109 Peraticos Group, 59 Pericles, 14 Persia, 15–16 Petrovich, George, 24 Petzetakis A E., 57 Pheraios, Rhigas, 158 224 Philike Hetairia, 24 Philip II, King, 2–3, 15, 38, 105, 133 Philopoemen, 14 Phrygians, 61, 66 Piraeus, Greece, 38, 50 Piraiki-Patraiki, 56 Pitsos AE, 58 Pizza Hut, 125 Plastchin Company, 117 Plastiras, Nicholas, 49, 50 Plato, 5, 15, 36–37 Poland, 181 Pomaks, Poros Conference, 44 Portugal, 163, 164 Princip, Garvrilo, 151 Prive, Ltd., 58 PSA Peugeot Citroën, 125 Public Power Corporation (PPC), 55, 60 Radical Party, 88 Radich, Stefan, 88, 158 Rakovski, George, 112, 158 Rankovich, Alexander, 90 Red Army, 114 Republican People’s Party, 63 Rhallis, G., 54–55 Rhine River, 134 Ribar, Ivan, 90 Roman Catholicism, 19, 103 Roman Empire: administration of, 17–18; Balkan decline and, 3; expansion of, 16; Greece and, 38– 39; Romania and, 16–17; trade and, 17; Turkey and, 67–68; Yugoslavia and, 83–84 Romania: agricultural reforms in, 31; Balkan cooperation and, 159, 160; Comecom and, 179; cultural history of, 119; debt by, 142; economic history of, 119–21; economic reforms by, 6–7; educa- Index tional expenditures in, 131; European Union and, 179, 180, 181; foreign investment in, 123, 125, 131, 145–46; foreign trade by, 142, 179; GNP/GDP and, 131; Greece and, 58, 59; Hohenzollem reign and, 27; industrial growth in, 130; minorities in, 5; monetary policy and, 123; Ottoman rule and, 21–23; peasant uprisings in, 27; political history of, 121–23; postwar economic growth and, 130; privatization and, 123–25; territorial grievances and, 31; U.S aid to, 154–55; World War I and, 30, 31; World War II and, 33, 121– 22 Romanus IV, King, 21 Rompetrol SA, 123 Roosevelt, Franklin D., 33, 91 Russia: Bosnian conflict and, 154; Britain and, 26; Bulgaria and, 112, 115, 116, 118; Constantinople Agreement and, 47; Germany and, 29; Greece and, 44, 58; postliberation years and, 28; Romania and, 23; Tito and, 92–93; Turkey and, 48; World War I and, 30; World War II and, 33; Yalta Conference and, 91 Russian Revolution, 71 Russo-Turkish Treaty of Jassy, 25 Russo-Turkish War, 103 Salonika, Greece: early history of, 38–39, 133; environmental concerns and, 136; foreign investment in, 54; future expectations and, 133; land transportation and, 134– 35; Ottoman rule and, 40, 68, 69; as trade center, 135–36; water transportation network and, 134– 35; World War II and, 89 Index Sampson, Nikos, 82 Samuel Montague, 59–60 Sarajevo, Bosnia, 103, 151 Sarakatsani, Sato AE, 58, 59 Saudi Arabia, 103 Scaramaga, Greece, 56–57 Seka AE, 59 Seljuk Turks, 21, 67, 75 Serbia/Serbs: civil war and, 5, 98, 103, 151–52; Croats and, 155–56; cultural influences on, 84, 99; early history of, 98–99; FYROM and, 4; independence of, 24; Kosovo and, 3; Macedonia and, 91; Ottoman expansion and, 85; population migration and, 30; population of, 97, 98; post-Ottoman period and, 87; self-management system and, 97, 99; territorial grievances and, 31, 98, 99; World War I and, 30 Serbian Christian Orthodox church, Serbian Socialist Party, 99 Shahu, Mehmed, 109–10 Shaw, Ezel Kural, 73 Shite Muslims, 150 Sicily, 17 Skopja, 98 Slavonia, 102 Slavs, 18–19, 25, 83, 84, 101, 103, 105 Slovenia/Slovenes, 84, 86, 97, 98, 101–2 Smyrna, Greece, 35–36, 47, 48, 74, 81 Socialist Republic of Macedonia, 91 Socrates, 127 Souda Bay, Crete, 147 South Slav Kingdom, 87–88, 99 Soviet Union: Albania and, 109; Balkan aid and, 146; Bulgaria and, 114; Comecom and, 179; Romania and, 122; Turkey and, 48, 148; 225 World War II aftermath and, 92; Yugoslavia and, 96 Spain, 36, 163, 164 Sparta, Greece, 37 Spartans, 13 Stalin, Joseph, 33, 52, 92, 122 Stambuliski, Alexander, 30–31, 113 Stambulov, Stefan, 112 Star Foods, 59 State Organization of Privatization of Croatia, 102 State Railroad Company, 63 Suez Canal, 29 Sulina, Romania, 27 Sunni Islam, 78–79 Sweden, 163 Switzerland, 111 Teheran Conference, 32–33, 122 Temenids, Tenedos, 47 Teresa, Mother, 109 Thebes, Greece, 38, 44 Themistocles, 14 Thessaly Greece, 25, 45 Thrace/Thracians: Anatolia and, 61, 66; Byzantine Empire and, 18; Croatia and, 101; cultural characteristics of, 2; Dorians and, 13; early Balkan settlement and, 1–2, 13, 15, 83, 101; Greece and, 45, 47; Roman rule and, 16–17; Salonika development and, 133 Thraki AE, 58, 59 Tiberius, King, 105 Tito, Marshal, 4, 52, 53, 90–95, 152, 153 Titulescu, Nicolai, 49, 159 Toynbee, Arnold, 73 Trajan, Emperor, 16 Transylvania, 22, 23, 27, 31, 121, 122 Treaty of Berlin, 28, 73, 80, 112 226 Treaty of Bucharest, 30 Treaty of Lausanne, 45, 48–49, 62 Treaty of London, 30, 107 Treaty of Neuilly, 30, 113 Treaty of Paris, 28, 177 Treaty of Rome, 163, 165, 167 Treaty of San Stefano, 28 Treaty of Sevres, 45, 47, 48, 62, 76 Treaty of Versailles, 30 Tricoupis, Charilos, 45, 158 Troy, 35, 66 Truman Doctrine, 52, 65, 92 Trumbich, Ante, 87 Tudjman, Franjo, 102, 155–56 Tunis, 29 Turco-Italian war, 29–30 Turkey: agriculture in, 176; Armenian tragedy and, 73–75; Balkan cooperation and, 96, 159, 160; Bosnia and, 103; Britain and, 159; Croatia and, 101; Cyprus and, 80– 82, 149; debt by, 142; defense spending by, 182, 183; early inhabitants of, 61, 65–66; economic reforms by, 71–72, 64; economic system of, 127; “emergence” years and, 63; establishment of modern, 70–72; ethnic migrations and, 4; European Union and, 79–80, 82, 163, 172–77, 182–83; foreign investment in, 62, 145; foreign trade and, 62, 138, 142, 173–75; geographic position of, 61, 150; Greece and, 46–49, 173, 174, 182– 83; highway construction and, 59; human rights and, 78–79; industrialization process and, 138; Industrial Revolution and, 62; intraregional trade and, 141, 142; Kemal’s reforms and, 62–63; Kurdish conflict and, 75–78; minorities in, 65; pipeline and, 58; population explosion in, 150; post– Index World War II period and, 63–64, 130, 149–50; Roman/Byzantine period and, 62, 67–68; Romania and, 123; Russia and, 48; social unrest in, 65; Soviet Union and, 148; split personality of, 64–65; U.S relations with, 147, 148; World War I and, 46–48, 62; World War II and, 63, 72 See also Ottoman Empire Turkish Workers Party, 76 Tzanetakis, S., 55 Ukraine, 58, 183 Union of Democratic Forces, 118 Union Tekstile, 58 United All-Greece Youth Organization (EPON), 51 United Nations, 74, 149–50, 151, 152, 153, 154 United Nations Development Program, 134 United Nations General Assembly, 74 United Nations Security Council, 151 United States: Albania and, 110; Armenians and, 74–75; Balkan aid and, 146; Balkan conflicts and, 102; Bosnia conflict and, 153–54; Bulgaria and, 154; Cyprus and, 81, 82; debt assistance by, 148; European Union and, 155; Greece and, 52, 53, 54, 147–48; public financing and, 37; Romania and, 27, 154–55; Turkey and, 65, 147, 148, 150, 174; World War I and, 30; Yugoslavia and, 93, 96 U.S.–Iraq war, 150 Vance, Cyrus, 102, 153 Van Der Brooks, Hans, 59 Varship, 58 Venetians, 20, 21, 22, 40, 101 Index Venizelos, Eleutherios, 46, 47–48, 49, 50, 63 Vlachs, 84 Vlad III, Prince, 22–23 Voice of America (VOA), 148 Vojvodina, 5, 97, 100 Vukmanovich, Svetozar, 90 Walachia, 22, 23, 26, 30 Warsaw Pact, 122 Wastelands: Historical Truths (Tudjman), 156 Welfare Party, 79 Wilson, Woodrow, 30, 47, 107 World Bank, 125, 147 World War I, 30–31, 46–47, 62, 88, 101 World War II: Albania and, 108–9; Balkan alliances and, 32; British and, 33; Bulgaria and, 113–14; Greece and, 50–52; peace treaties and, 33; Romania and, 121–22; Turkey and, 63, 72; Yugoslavia and, 89–91 Xenophon, 66 Yalta Conference, 33, 91 Young Turks, 29, 62, 70–71, 107 Ypsilanti, Alexander, 24, 158 Yugoslavia (former): agriculture and, 86; Albania and, 107, 110; Austrian Empire and, 85–86; Balkan 227 cooperation and, 159, 160; Bulgaria and, 114; Byzantine Empire and, 84; Comecom and, 179; debt by, 87, 142; decentralization and, 94; early inhabitants of, 83–84; economic model of, 127; economic reforms by, 7, 91–93; European Union and, 177–78, 180–81; foreign aid to, 93; foreign relations and, 95; foreign trade and, 131, 177–78, 179; GNP/GDP and, 131; government rotation and, 95–96; Greece and, 52, 53, 96; industrial development in, 87, 88–89, 130; interwar years and, 87–89; intraregional trade and, 141; Napoleon’s rule and, 85; Ottoman Empire and, 84–85, 86; postwar years and, 91– 95; present situation and, 97–100; Roman expansion and, 83–84; selfmanagement system and, 96–97; Serb conflict and, 151, 152; split of, 153–54; World War I and, 88; World War II era and, 32, 89–91 See also names of former provinces Zervas, Napoleón, 51 Zhelev, Zhelyu, 118 Zhivkov, Todor, 115 Zimmermann, Warren, 154 Zogu, Ahmed, 107–8, 109 Zolotas, X., 55 About the Author NICHOLAS V GIANARIS is Professor of Economics at Fordham University Dr Gianaris is the author of nine books with Praeger, including Modern Capitalism: Privatization, Employee Ownership, and Industrial Democracy (1996), The European Community, Eastern Europe, and Russia: Economic and Political Changes (1994), Contemporary Economic Systems: A Regional and Country Approach (1993), and The European Community and the United States: Economic Relations (1991) Three other books deal with Greece and the Balkan area ... affected the process of development in the area It also points out that the complex terrain, the struggle against invasions, and the political and economic instability within the region have hindered... role of interest and prices in the Balkan economies support the free market mechanism Such a development and the growing cooperation make the economic systems of the Balkan countries increasingly... culture, radiating over the neighboring areas, influenced the mainlanders of the southern Balkan Peninsula, the Achaeans, from the Hellenic race, who came in successive waves from the Alps and central