That Crush at Kosovo’s Business Door? The Return of U.S. Heroes

By MATTHEW BRUNWASSER

 

PRISTINA, Kosovo — Prime Minister Hashim Thaci is in a bind. His country’s largest and most lucrative enterprise, the state telecommunications company, is up for sale. The jostling among buyers is intense. Narrowing the bidders has hardly helped.

 
The New York Times

 

One bid is from a fund founded by former Secretary of State Madeleine K. Albright. Lobbying for another was James W. Pardew, the Clinton-era special envoy to the Balkans. Both former diplomats are among the Americans who hold the status of heroes here for their roles in the 1999 intervention that separated Kosovo from Serbia and created one of the world’s newest states.
In a meeting with Mr. Pardew in October, the prime minister explained his “difficult position” in having to choose between the buyers, according to a memo leaked to the newspaper Zeri, “because whichever of the two bidders behind them wins, he will be seen by 2 million people to have betrayed the other one.”

So many former American officials have returned to Kosovo for business — in coal and telecommunications, or for lobbying and other lucrative government contracts — that it is hard to keep them from colliding.

They also include Wesley K. Clark, a retired Army general and the former supreme allied commander of NATO forces in Europe who ran the bombing campaign against the Serbian strongman Slobodan Milosevic; and Mark Tavlarides, who was legislative director at the Clinton White House’s National Security Council.

The State Department has no policy that forbids former diplomats from lobbying on behalf of nations where they served or returning to them for profit, beyond the one applying to federal employees as a whole, which prohibits senior officials from contacting agencies where they once worked for one year and bans all federal employees for life from advising on the same matters.
Kosovo is not the only nation where former officials have returned to conduct business — Iraq is another example — but it presents an extreme case, and perhaps a special ethical quandary, given the outsize American influence here. Pristina, the capital, may be the only city in the world where Bob Dole Street intersects Bill Clinton Boulevard.

Foreign policy experts say the practice of former officials’ returning for business is more common than acknowledged publicly. Privately, former officials concede the possibility of conflicts of interest and even the potential to influence American foreign policy as diplomats who traditionally made careers in public service now rotate more frequently to lucrative jobs in the private sector.

Asked for comment, former officials involved said their business dealings with the Kosovo government would benefit Kosovars by building a more prosperous economy. “We’re going to employ people, provide training, create exports and help the country grow and develop as a democracy,” said General Clark, who is chairman of Envidity, a Canadian energy company seeking to explore Kosovo’s lignite coal deposits and produce synthetic fuel.

Lawrence Lessig, a law professor and director of the Edmond J. Safra Center for Ethics at Harvard, said the appearance of “cashing in” risked undermining the prestige of the United States by clouding the humanitarian nature of the 1999 intervention, which was aimed at ending Serbian atrocities against Kosovars.

After the separation, Kosovo was an international protectorate run by thousands of officials from other countries and the United Nations serving as government representatives and private contractors. Four years of internationally “supervised independence” ended in September. About 6,000 peacekeepers remain.

The closeness of the ties between the state-builders and the state they built has made it easy for officials to change hats. Though the country is one of Europe’s poorest, there is still the potential for profit, particularly as the government privatizes critical assets.

A version of this article appeared in print on December 12, 2012, on page A1 of the New York edition with the headline: That Crush at Kosovo’s Business Door? The Return of U.S. Heroes.