Parliamentary Assembly of Bosnia and Herzegovina - Joint Commission on Human Rights,

Child Rights, Youth, Immigration, Refugees, Asylum and Ethics

International Day for Eradication of Poverty

Prepared by UN RC Office17 October, 2011

Sarajevo

United Nations BiH

Summary

• BiH BRIEF SOCIO-ECONOMIC OVERVIEW OVERVIEW • UN Development Assistance Framework (UNDAF)2010 – 2014

• 2011 UN ACTIVITIES ON POVERTY ERADICATION

Poverty in BiH

• UN and WB support key statistical research in capturing and understanding poverty issues in BiH – MICS, HBS, LFS

Population in BiH below national poverty line (%)

• Additional 20% at risk of poverty• Effect of crisis**: fall in household incomes by 4% would lead

to an increase of the poverty rate by two percentage points

Year Total Urban Rural

2001 19.5 13.8 19.9

2004 17.7 11.3 22.0

2007 14.0 8.2 17.8

*Multi Indicative Cluster Survey (MICS), Household Budget Survey (HBS), Labour Force Survey (LFS) – all three surveys due in 2011/ new data will be available early 2012** WB estimate

Most vulnerable to poverty and social exclusion

• Children: in particular from vulnerable households, living in rural areas, without parental care, with disabilities, Roma children and displaced children

• Youth: unemployed youth in 2009 48.7% - four times higher than EU• Persons with disabilities: 10-15% of population. Almost 2/3 of adults with

disabilities lives close to or below the poverty line and are subject to a range of inequalities.

• Roma: 50% of Roma children enrolled in primary and only 2% in secondary education. Only 3% of Roma have permanent employment. 27% of Roma live in households with per capita consumption below the equivalent of the PPP 2.15 USD

• Elderly: Every third elderly person in BiH is poor. The pension system in BiH covers 81% of persons older than 64 years. Average pension in FBiH in 2010 was 343 BAM and in the RS 320 BAM.

• Refugees and displaced: in BiH there are still 113,191 displaced persons, 8,600 of which still live in 160 collective centers

Economic trends…

• External debt doubled in 10 years

• GDP growth stalled due to crisis

Economic trends (cont’)…

• Low foreign direct investments…

• … decreasing development assistance

BiH fiscal deficits

High unemployment…• Employment continues to be extremely high…

• … among the highest rates in the world (13th out of 198 countries)

• Estimate for 2011 (ILO methodology) 23% (would still rank on 28th place between Dominica and Equatorial Guinea)

* Note of caution: in BiH transfers to households spending is hard to fully reconcile for lack of reliable data. However the general order of magnitude on spending is indicated in the chart above

Ineffective and costly social assistance

Education issues in BiH

• In 2009, only 14.8% of children are enrolled in preprimary education (90.1 % of four-year-olds in the EU-27 in 2008)

• 20,489 children of school age in 2009 were out of primary education

• Every fifth child in BiH does not attend secondary school• Enrollment in tertiary education in 2009 was 37% (vs. 71% in

Poland or 88% in Slovenia) • Only 11% of labor force in BiH has tertiary education (2007).

In EU, this average is 23.8%

2011 Economic Outlook

• 2011: recovery gathering pace, however• Growth projections from 2.2 - 3.0 percent• Economy remains fragile

• Return to robust growth requires:• Healthy financial sector (credit growth)• Sound public finances (fiscal consolidation)• Improved business and investment environment

• competitiveness of the economy• Reduced corruption• Rule of Law

• United Nations Development Assistance Framework (UNDAF) 2010-2014 adopted by Entity Governments and Council of Ministers in March, 2009. Started implementation January 1, 2010 – Priority sectors: local/rural development, social inclusion, environment/climate

change and justice/human security;– Support provided by 9 resident agencies (ILO, UNDP, UNESCO, UNFPA, UNHCR,

UNICEF, UN Women, UNV, WHO), 6 non-resident agencies (FAO, IFAD, UNEP, UNECE, UN-Habitat, UNIDO), WB, IOM and IOM;

• World Bank Country Partnership Strategy 2012-2015– Priority sectors: Competitiveness, Inclusiveness and Environmental Sustainability– 100 MUSD IDA credits, 150 MUSD IBRD loans, and possible additional grant financing

• Implemented in partnership with all levels of government in BiH;• Aligned with the EU integration process and state/entities priorities.

Total UNDAF allocation envisioned: USD 178,000,000 (2010-2014)Total WB allocation envisioned: USD 250,000,000 (2012-2015)

United Nations and Word Bank development assistance

2010 UN Sectors & Financial Overview

2010 Donor

Indicative Total Planned Budget per Outcome for

2010

Indicative Budget Delivery per

Outcome in 2010

Governance / Local Develop.

UN, EU, Swiss, Germany, Netherlands, Lichtenstein, Italy, Sweden, Norway, BIH

8,481,073 8,225,484 20%

Social InclusionUN, Netherlands, Spain, Norway, Swiss, Lichtenstein, Turkey, Sweden, USA, Slovenia, UK, EU, BIH

20,484,151 19,371,601 47%

Environment / Climate Change

UN, MP*, Spain, Netherlands, GEF**, Norway, France, EU, BIH 5,840,752 5,399,475 13%

Justice/Human Security

UN, GFATM***, EU, Spain, Belgium, Italy, Sweden 8,978,239 8,360,121 20%

TOTAL USD: 43,784,215 41,356,681 100%

*Multilateral Fund for Implementation of the Montreal Protocol**Global Environmental Fund***Global Fund to Fight Aids, Tuberculosis and Malaria

2011 UN Sectors & Financial Overview

2011 DonorIndicative Total

Planned Budget per Outcome for 2011

%

Governance/Local Development

UN, EU, Swiss, Lichenstein, Sweden, Netherlands, Norway, Austrian, BIH, UN

9,397,106 17%

Social Inclusion UN, Netherlands, Switzerland, EU, Spain, Turkey, BIH 17,481,446 32%

Environment Protection / Climate Change

UN, Spain, GEF, Austria, Finland, Sweden, Slovenia, MP, EU, France, BiH

7,482,181 15%

Justice / Human Security UN, GFATM, EU, Spain, Denmark, Sweden, Switzerland, Norway, UK, USAID, NATO PfP

20,923,809 36%

TOTAL USD 55,284,542

• Approx. 70% of amount goes directly to excluded groups

2011 UN Activities on Poverty Eradication

Sector: GOVERNANCE & LOCAL DEVELOPMENT

Annual Outcomes

• Facilitate rural economic, agricultural and infrastructural development and strengthen municipal governance and absorption capacities in line with the EU accession process.

• Support governments’ efforts in adopting socially inclusive standards in the social dialogue, policy development and policy implementation process.

• Strengthen governments’ capacities in adopting human rights-based measures and mechanisms for addressing citizens needs (focus on IDPs, refugees, migrants, women, children, Roma, etc.)

SECTOR TOTAL USD 9,397,106

Sector: SOCIAL INCLUSION

Annual Outcomes

• Assist governments in implementation of the revised Strategy for Implementation of Annex VII.

• Improve basic health, education, social protection, and child protection services.

• Increase youth employability and first time work experience opportunities for unemployed youth.

• Support development and implementation of evidence-based policies and protection systems targeting social inclusion of vulnerable groups (elderly, children, IDPs, returnees, women, Roma) and implementation of UN Conventions (Rights of People with Disabilities, Rights of the Children, etc).

SECTOR TOTAL USD 17,481,446

2011 UN Activities on Poverty Eradication