Srebrenica Regional Recovery Programme (SRRP) Economic Development Component 2004 Guy Dionne, Economic Development Coordinator Mokhtar Ahdouga, Deputy Economic Development Coordinator

SRRP Response … Local Government Local Government Economic Development Economic Development Three-years, multi-sector programme based on four pillars: Three-years, multi-sector programme based on four pillars: Civil Society Civil Society Infrastructure Infrastructure Due to the specifics of the region, GENDER is identified as a cross-cutting issue of particular importance. Due to the specifics of the region, GENDER is identified as a cross-cutting issue of particular importance.

Problem Statement Demand-deficient unemployment Demand-deficient unemployment As the regional economy moved into recession, consumer demand has fallen. As the regional economy moved into recession, consumer demand has fallen. Many firms were unable to sell their outputs. Many firms were unable to sell their outputs. Cut back on production Cut back on production Cut back on the amount of labour they employ. Cut back on the amount of labour they employ. Some firms shut down operation. Some firms shut down operation.

SRRP Economic Development Response … Overall Objective: To create conditions for sustainable economic growth for sustainable economic growth aimed at reducing poverty. aimed at reducing poverty.

SRRP Economic Development Response … The Economic Development ComponentThe Economic Development Component commits itself to four economic sectors commits itself to four economic sectors in designing and in designing and implementing implementing microenterprise projects: microenterprise projects: MicrofinanceMicrofinance Business Development ServicesBusiness Development Services AgricultureAgriculture Sustainable Use of EnvironmentSustainable Use of Environment

Economic Development Activities Microfinance: 1. 1.Portfolio Management 2. 2.Supervision 3. 3.Capitalization 4. 4.Technical Feedback 5. 5.Microcredit Training to Municipal Authorities TARGET BENEFICIARIES: Women micro-entrepreneurs

Economic Development Activities Business Development Services: 1. 1.Incubator Start-up 2. 2.Accounting Training 3. 3.Financial Management Training 4. 4.Youth enterprise coaching 5. 5.Asset Recapitalization Grants 6. 6.Clusters of Growth Identification TARGET BENEFICIARIES: Micro, Small and Medium Enterprises

Economic Development Activities Agriculture: 1. 1.Sub-sector Appraisal 2. 2.Technical Training 3. 3.Targeted input supplies Grants 4. 4.Farming Accounting 5. 5.Financial Modelling 6. 6.Support to Associations/ cooperatives 7. 7.Marketing TARGET BENEFICIARIES: Micro, Small Agricultural Producers

Economic Development Activities Sustainable Use of the Environment: 1. 1.Environmental Awareness Training 2. 2.Municipal Forestry Conservation and Enforcement Reform 3. 3.Tree Plantation 4. 4.River Protection 5. 5.Regional Waste Disposal Site Creation TARGET BENEFICIARIES: Citizens, Entrepreneurs & Agricultural Producers

Beneficiary Target & Budget Allocation 2004 Microfinance $ 161, Business Development Services Business Development Services $ 506, Agriculture $ 304,000 1,029 Sustainable Use of Environment $ 45, Total $ 1,016,000 2,115

Economic development (ED) or Social Welfare??? Prerequisites of a ED Programme Focus your design instead of stating or make-up pretty.Focus your design instead of stating or make-up pretty. Adequate Timeframe.Adequate Timeframe. Sufficient funding available at start-up.Sufficient funding available at start-up. Integrated approach that will leave the EDP to structure itself before draining out funds.Integrated approach that will leave the EDP to structure itself before draining out funds. Various blend of clients from all social classes.Various blend of clients from all social classes. Balancing Political and Economic objectives.Balancing Political and Economic objectives. Balancing short and long-term objectives.Balancing short and long-term objectives. Policy Feedback Marketing Channels Ancillary Services Inclusion of the poor and multiplier effect targeting to other client segments Poorest of the poor and Income Generation

Inefficient Good Will and Without Social Welfare (SW) Missing both Development and SW Adhoc funding without strategy.Adhoc funding without strategy. Short-term objectives.Short-term objectives. Limited time and funding for execution.Limited time and funding for execution. Lack of ownership of programme.Lack of ownership of programme. Un-enhanced capacity of the state and pro-poor policy vacuums.Un-enhanced capacity of the state and pro-poor policy vacuums. Underserved aging population.Underserved aging population. Political objectives.Political objectives. Ethnic segregation of donor funded activities avoiding tackling poverty vicious circles.Ethnic segregation of donor funded activities avoiding tackling poverty vicious circles. Great NGOs and Agencies With impeded social welfare social welfarereforms Time goes on Assets depletion Greater Poverty to tackle InflexiblePro-poor Donor Funding Agenda

Where do we stand?  Economic Development  Social Welfare  Critical Mass served  Deep rooted solutions  Executed wished list