This is a response article to another article written by Mario Munta from Public Policy, published in issue 46 under the title: "On EU’s dependence on Russian oil and gas - How a small member state could save the day: Croatia’s golden opportunity."
If you missed it, you can read it here!
In the last issue of the CEU Weekly, it was argued that Croatia is the right solution for the EU’s energy crisis. While I am not knowledgeable enough on energy policy to know whether Croatia really has the capacity to save the day, I am certain that another quick fix for the Croatian economy, this time in the form of fossil fuels instead of the usual privatizations of public and natural resources, is not the right solution for Croatia.
Europe is frightened by the possible energy crisis erupting from the conflict with Russia and the author of the article titled “On EU’s dependence on Russian oil and gas - How a small member state could save the day: Croatia’s golden opportunity” points out three factors which make the current situation desirable for Croatia.
Firstly, Croatia’s comparative advantage in location allows access to both Western and Eastern Europe and importing oil from the Maghreb through the ports of Rijeka and Pula. While the author rightly points out that these routes would present a much more secure option for Europe, it would be anything but safe for Croatia. The geographical location makes Adriatic tempting for oil transport, but other geographical and nautical features make it extremely vulnerable to oil spills: its semi-closed nature and circular currents make a spill anywhere in the Adriatic capable of impacting the entire system.
The author’s second argument suggests an opportunity for economic prosperity and help with the increasingly depressing unemployment rate. This ties directly into his third and final point about the “political and opportunist notions,” benefiting the Croatian people, and realizing this opportunity to “set the economy in motion and increase the importance of Croatia internationally.” He also mentions the importance of “framing the project” to ensure ”social acceptance”. The sad reality is that when it comes to large-scale projects in Croatia, it is unlikely that the benefit will reach anyone beyond the elites making the big decisions, and the magnates in control of oil resources. There would be very little going to employees of local holding areas and shipping platforms, and I will leave you to judge whether these projects benefit the unemployed masses by employing them at a minimum salary of 405 € gross per month. Even more worrying is the fact that the “framing” of the project will not be necessary at all if the government continues to behave in the same manner as it has so far when it comes to the Adriatic’s energy potential. Plans for the initiation of off shore drilling for natural gas and oil in the Adriatic by 2015 did not include any public debate. While not caring much for social acceptance, the government has definitely found political will and initiative for the project of exploiting what could be the most valuable national resource. This resulted in the 2D seismic acquisition survey of the Adriatic in January 2014 and the tenders for the exploration and exploitation of hydrocarbons opening in Zagreb on April 2. All this was accomplished with zero public debate. I will not waste time on explaining the Adriatic’s environmental, economic, and sentimental importance, but it is easy to understand why a public debate on such an issue is mandatory.
If we are to really break out of the “bandwagoning” as our “primary modus vivendi in today’s world order,” let us then break on to a more enlightened side. The author celebrates Croatian Research and Development potential, yet remains trapped in the world of fossil fuels. Croatia has shown great potential in green technology and energy conservation development such as: electric vehicles like Visiobike¹ and the high performance electric vehicle Rimac², green wooden homes, rent-a-roof solar energy production concepts³ and more. While the development of this sector may not sound as sexy as talk of the high geopolitics of energy, it can tap into domestic capacity for clean energy innovation, orient Croatia towards a less carbon dependent future, and help avoid the catastrophic aftermath of an oil spill. This is the innovation that we should be focusing on: socially and environmentally conscious, fair and forward thinking, and innovative enough to start changing the global energy paradigm. Katarina Kušić, IRES Alumna, Croatia
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