REGIONAL DISPARITY ASSESSMENT

United Nations Development Programme Bosnia and Herzegovina

Regional Disparity Assessment Context

• Significant progress has been made in BiH over the past years:

• Stability, despite occasional political disagreement• Constant high GDP up until the recent global economic

crisis • Banking system one of the best in Southeast Europe• Inflation in the single digits

• Problems nonetheless do exist:• Common, such as lack of efficiency of the institutions

in creating a positive business environment• Specific, such as return and its impact on poverty rate

Regional Disparity Assessment Context

• Evident differences in the quality of livelihoods, high & unequally distributed unemployment of particular interest for UNDP.

• Understanding disparities in order to enable the targeting of policies and activities at those areas where they are most needed.

• No study focused on the regional disparities in the country as a whole has been produced to date in BiH in one place.

Regional Disparity AssessmentRegions and Indicators

• Disparities between 17 regions (10 cantons in FBiH, 6 statistical territorial units in RS and Brcko District) and 142 municipalities in BiH

• Original or adjusted LAEKEN indicators + UNDP specifics

• Out of available 43 set of indicators, 19 extrapolated as common for all regions and 5 for all municipalities

• Calculation with BiH value as 100

Regional Disparity AssessmentIndicators

Regional ranking Municipal Ranking

1. Employment rate (%)2. ILO Employment rate (%)3. Unemployment rate (%)4. ILO Unemployment rate (%)5. GDP per capita (KM)6. Salary-monthly average (KM)7. Consumer Basket Cost (KM)8. Relative Poverty rate (%)9. Poverty gap (%)10. No. of doctors per 1000 11. Total no. of students per 1000 12. No. of registered travel cars per 1000 13. Four member HHs without any income (%)14. Four member HHs with one income (%)15. Four member HHs with two + incomes (%)16. No. of hospital beds per 1000 17. No. of displaced persons per 100018. Households with potable water (%)19. Households with sewerage system (%)

1. Net salary (Ø 2008)2. Employment rate (%) 3. Unemployment rate (%) 4. Total no. of students in all levels of education per 1000 5. No. of population to one doctor

Regional Disparity Assessment Sources

• Labour Force Survey 2008 (9,261 households)• Household Budget Survey 2007 (7,468

Households)• Other publications produced by entity and state

agencies for statistics• UNDP documents (Early Warning System)• World Bank publication • Eurostat

Regional Disparity Assessment How to Present Findings

• Seven Chapters: 1. Demography, 2. Education, Access to Utilities (Electricity, Water

and Sewage), 3. Quality of Life, 4. Standard of Living, 5. Transport Infrastructure and Health Employment, 6. Economic Disparity, Income and Poverty, 7. Social Inclusion and Vulnerable Groups• Executive Summary with the disparities on the

basis of the extrapolated indicators.

Regional Disparity Assessment Results

• Classification of regions from the most to the least developed.

• Classification of municipalities on sufficiently developed, underdeveloped and extremely underdeveloped.

• Identification of overall deficiencies (e.g. sewage infrastructure, number of doctors, low education among unemployed – app. 94% with no more than secondary school)

• Identification of extent to which these problems are present in specific regions (e.g. Posavina with 62.4% of unemployed with primary school)

Local Development Programme

Results• 49% of municipalities, mostly rural, underdeveloped

or extremely underdeveloped, many of them small and self-unsustainable.

• Poverty from 5.2% to 37% (average 18.6%)

• Poverty Gap from 18.8% to 39.4% (average 26.2%)

• Unemployment Rate (ILO standards) from 14.7% to 38.8% (average 23.4%)

• Widening gap between urban and rural areas

Regional Disparity Assessment

Regions Average Rank Based on 19 Indicators

Final Ranking

Sarajevo 3.53 1Neretva 4.61 2East Sarajevo 6.05 3Banja Luka 7.68 4Central Bosnia 9.00 5Zenica Doboj 9.00 5Tuzla 9.11 7Foca 9.34 8West Herzegovina 9.50 9Trebinje 9.68 10Brcko District 9.68 10Doboj 9.71 12Bijeljina 10.32 13Posavina 10.53 14Bosnian Podrinje 10.61 15Una Sana 12.03 16Canton 10 12.65 17

Regional Disparity Assessment

Regional Disparity Assessment

Regional Disparity Assessment

UNDP Strategy• 4-year programme (2011-2014) designed to assist

local authorities and businesses to tap development potentials.

• Programme pursues a multi-dimensional approach to tackle obstacles to development challenges from multiple angles: governance, SME development, energy and environment, social inclusion and government absorption capacities

• To be implemented through a regional approach

and five regional offices with the focus at the underdeveloped and extremely underdeveloped municipalities.

Regional Disparity Assessment

Final Conclusion

• RDA is a preliminary assessment aimed at initiating a process that might lead to the production of a more comprehensive assessment of the regional disparities in BiH.

Regional Disparity Assessment

Contact:

Nedim Catovic, Programme Analyst, Rural and Regional Development Cluster, UNDPBiH, Email: ncatovic@undp.ba

THANK YOU!