[Congressional Record Volume 150, Number 90 (Friday, June 25, 2004)]
[Extensions of Remarks]
[Pages E1291-E1292]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




         BALKAN ORGANIZATION FOR NATIONAL FINANCIAL DEVELOPMENT

                                 ______
                                 

                           HON. CHRIS CANNON

                                of utah

                    in the house of representatives

                         Friday, June 25, 2004

  Mr. CANNON. Mr. Speaker, I rise today to recognize the establishment 
of a new and innovative non-profit foundation whose sole objective is 
to rationalize and accelerate the transition of the Balkan countries to 
full market economies. The purpose behind the Balkan Organization for 
National Financial Development (BONAFIDE) is the promotion of U.S. 
investment in the region by facilitating the harmonization of the 
ethics, laws and regulations governing business, investment and the 
financial markets in these countries with those of the United States.
  History is clear, Mr. Speaker. The greatest speed, quality and 
durability of the transition to democracy in this culturally and 
politically complex region will not be achieved solely through 
diplomatic pressure and direct foreign assistance. Instead, this 
transition is best achieved through positive pressures developed within 
these economies through the positive participation our companies and 
institutions in legitimately participating in their growth.
  In the past, there was an accepted and established manner of 
conducting business and working with government in these countries that 
was, by most measures, corrupt. The reality is that the lack of laws 
promoted this weakness. Today, with anti-corruption laws in place, the 
lack of enforcement institutions and transparency are in some cases 
promoting the perpetuation of these practices. The situation is 
improving, but it is by no means where it needs to be. As I see it, we 
can sit on the sidelines and lament the corruption of the past and the 
present, or we can support constructive programs and look to the 
future.
  We can sit back and allow the other nations and their companies to 
participate in the tremendous economic potential in the region while 
imposing their own models of business ethics on these developing 
economies, or we can aggressively promote competitive U.S. investment 
and develop business ethics like ours. We need to help concentrated 
wealth achieved in a time when there was an absence of law transitioned 
into a framework of legitimate business. This is the purpose of the 
BONAFIDE organization.
  BONAFIDE is funded exclusively by business and industry in the 
Balkans, including companies and individuals from the banking, 
railroad, mining, petroleum, telecommunications, and agriculture 
industries, as well as individuals who see the clear benefits of a 
closer alignment with the United States and its economic principles and 
practices, such as leading financial institutions and corporations from 
the Republic of Serbia, Bosnia & Herzegovina, Republica Srpska and 
Bulgaria, as well as individuals who have come, not unscathed, through 
this period of vague law, such as Sorin Vintu of Romania. These 
companies and individuals are concerned that the concentration of 
investment from countries other than the U.S. will have the effect of 
stagnating reforms and, therefore, growth. They are now committed to 
the early adoption and implementation of regulatory and enforcement 
reforms and transparency in their countries on the U.S. model, not the 
German or Russian model.

  BONAFIDE, through its headquarters in Washington, will promote the 
accelerated harmonization of national laws, regulations and best 
business practices for the Balkans with those of the United States 
through an aggressive education exchange and cooperation program. 
BONAFIDE will facilitate collaborative

[[Page E1292]]

working visits of U.S. legislators and regulators with their 
counterparts in the region; between leaders of industry, financial 
services and law and their counterparts in the Balkans; and of academic 
leaders with government, business and educational institutions in these 
countries.
  Mr. Speaker, I welcome the establishment of this new organization and 
organizations like it and I strongly support the objectives they 
promote.

                          ____________________