Bosnia and Herzegovina:

From food assistance to economic development

strategies

Problems…

Causes of povertyThe most obvious: WARDevastation of physical, social and human capital

But also simultaneous: Misused transition towards democracy Transition from centrally-controlled to market economyTransition 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)2) Building local capacities

(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 ProgrammeABD programme

Three municipalities: Srebrenica, Bratunac and Milici (Eastern Bosnia). Area of close to 1,100 km2 Population: around 45 000 inhabitants

Target groups:-Population as whole-Special focus on returnees and female-headed household

Problem Statement

Huge demographic changes86,485 inhabitants before the war45,000 inhabitants today

Important percentage of female headed householdsDevastated public and private infrastructureDisruption 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 communitiesc. 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• Initial timeframe of three years• First and second phases completed• Decision by UNDP BiH to go on with the third

phase• Programme to run until 30. November 2013• Initial budget: USD 12.3 million• Current total budget: USD 24 million

Methodology –First Phase

Five interrelated components: a. economic developmentb. Infrastructurec. local governmentd. civil society e. genderStrong involvement of local authorities and local civil society organizationsIntroduction of consultative mechanisms

Methodology –Second Phase

Three main fields of interventions: a. Public and social services,b. Infrastructurec. Economic development

All programme initiatives incorporate consultative and “learning by doing“ mechanismsinterventions 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 yearsMethodology: Similar as for the second phase but with• Increased emphasis on knowledge transfer; and• 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• 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• 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• Agricultural activities (milk road, berry farming, etc)• 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.