Bosnia and Herzegovina: From food assistance to economic development strategies

Problems… Causes of poverty The most obvious: WAR Devastation of physical, social and human capital But also simultaneous: Misused transition towards democracy Transition from centrally-controlled to market economy Transition from violent conflict to peace

Evolution of programmatic approach As the country priorities changes, ABDs evolved…  Short-term employment programmes  Return and reconstruction programmes  Community and rural development programmes  Integrated ABD programmes

Short-term employment programs Provision of wages for public work on local infrastructure repairs: + Appropriate for immediate post-conflict environment (fast, create positive atmosphere) + Injection of cash into economy + Substitutes inefficient social welfare systems - Very short-term effects - Targeted local effects, very limited policy influence - Require high budgets

Return and reconstruction programs Provision of food assistance, seeds, tools and small machinery through grants: + Support sustainability of return + Reach the most vulnerable + Compensate inefficient social services - Very short-term effects - Limited number of beneficiaries - Grant based = not always financially viable

Community and rural development programs Focused on expanding economic opportunities though: 1) Direct interventions (rural micro-credits, Guarantee Fund for rural loans) (rural micro-credits, Guarantee Fund for rural loans) 2) Building local capacities (Community dev. work, TA for local government) (Community dev. work, TA for local government) + More comprehensive and integrated approach + Only economically viable ideas get supported - Effects of strategies depend of available local capacities - Hard to ensure influence beyond programme’s life time

Srebrenica Regional Recovery Programme ABD programme Three municipalities: Srebrenica, Bratunac and Milici (Eastern Bosnia). - Area of close to 1,100 km2 - Population: around inhabitants Target groups: -Population as whole -Special focus on returnees and female-headed household

Problem Statement Huge demographic changes 86,485 inhabitants before the war 45,000 inhabitants today Important percentage of female headed households Devastated public and private infrastructure Disruption in the life of rural communities resulting in the absence of leadership and social cohesion

SRRP Overall objective… Promotion of: a. socio-economic recovery b. multiethnic communities c. strengthened local government structures. To be attained through: a. improved municipal management systems, planning capacities and service delivery ; b. Enhanced municipal-level capacities in infrastructure development planning and implementation of related projects; c. Reduced poverty through increased income levels for the poor.

Programme Background Information Incepted in September 2002 Incepted in September 2002 Initial timeframe of three years Initial timeframe of three years First and second phases completed First and second phases completed Decision by UNDP BiH to go on with the third phase Decision by UNDP BiH to go on with the third phase Programme to run until 30. November 2013 Programme to run until 30. November 2013 Initial budget: USD 12.3 million Initial budget: USD 12.3 million Current total budget: USD 24 million Current total budget: USD 24 million

Methodology –First Phase Five interrelated components: a. economic development b. Infrastructure c. local government d. civil society e. gender Strong involvement of local authorities and local civil society organizations Introduction of consultative mechanisms

Methodology –Second Phase Three main fields of interventions: a. Public and social services, b. Infrastructure c. Economic development All programme initiatives incorporate consultative and “learning by doing“ mechanisms interventions used as incentives to improve participatory governance, generate growth and increase municipal revenues. Participatory governance used to ensure equality, ownership and sustainability of planned interventions

SRRP –Third Phase Timeframe: 4 years Methodology: Similar as for the second phase but with Increased emphasis on knowledge transfer; and Increased emphasis on knowledge transfer; and Progressive transfer of implementation responsibilities to the municipal authorities. Progressive transfer of implementation responsibilities to the municipal authorities.

Achievements Strong and true involvement of local institutions and citizens in the planning and implementation. Strong local desire for: strengthened local capacities strengthened local capacities equality in the allocation of resources equality in the allocation of resources Local authorities participated in the implementation with close to EUR 1,500,000 in parallel funding

Achievements Better Local Governance Improved public services and provision of social services: Upgraded information systems and technology Upgraded information systems and technology Establishment of municipal front offices providing basic services Establishment of municipal front offices providing basic services More than 1,000 people, especially returnees, living in rural areas in Srebrenica are benefiting from a Mobile Out-patient Clinic.

Achievements in Economic Development More than 6,500 people have been directly affected through various economic development activities: Regional business cluster -mapping exercise Regional business cluster -mapping exercise Agricultural activities (milk road, berry farming, etc) Agricultural activities (milk road, berry farming, etc) Increased access to finance (fiscal incentive grants to existing businesses) Increased access to finance (fiscal incentive grants to existing businesses) Improved business development services, working with the Srebrenica Business Centre (SBC) More than 17,500 people have benefited from improved infrastructure with the reconstruction of rural roads, water supply systems and power grids.