On the initiative of the Minister for European Integration, Dragan Mikerevic, the Principal Deputy High Representative (PDHR), Donald Hays, and the French and Yugoslav Co-Chairs of the Stability Pact’s Initiative on Social Cohesion, Oliver Villey and Jela Bacovic, temporarily representing the FRY, met with the Entity and State Ministers responsible for health, pensions, welfare system, employment, refugee return and war veterans yesterday in Sarajevo.

Discussions focused on reform of the social sector, which will have important implications for the most vulnerable groups in society, that have support form the international community in BiH. The participants agreed that reforms should not be delayed and lessons learned from similar reforms in this sector, from amongst others, the European Union, were considered. These reforms are an urgent issue, particularly now, when international aid to BiH is decreasing.

The participants also agreed there is a need to be transparent about the content of the reform, which would lead to a more efficient and accountable welfare system, and include:

• increased communication and co-operation amongst welfare institutions and governments at Canton, Entity and State level,

• transparent collection and disbursement of public funds,

• thorough reform of the administrative structure,

• improved management techniques and better engagement of personnel

• harmonisation of legislative frameworks

The financial sustainability of the welfare system is dependent on these reforms.

The participants acknowledged that the social sector is an Entity competency, however, Minister Mikerevic, Ambassador Hays, and the Stability Pact’s representative’s were concerned that Bosnia and Herzegovina, when competing with other states for support to alleviate the financial constraints of reforms, may miss opportunities because of the lack of co-ordination from the Entities.

In October this year the Stability Pact for South-Eastern Europe will hold discussions on regional welfare reform in Bucharest. The "Social Cohesion Initiative" will be based on the lessons learnt by other countries in the region, which have advanced much further in this process than BiH, and include a donor component. The proactive involvement of the BiH authorities in this initiative could enhance and support all activities focused on providing a sustainable social safety net for BiH’s citizens that is linked to available resources. A regional approach to the question of welfare reform will also ensure that refugees and returnees do not fall between the cracks of an inappropriate legislative framework.

The participants at yesterday’s meeting agreed that whenever reforms and projects will be implemented in this sector emphasis should be put on an unbiased public information campaign to explain the aims and achievements of these reforms. The campaign will have the aim of ensuring that those effected, directly and indirectly, will understand the reforms necessary, and will have the opportunity to present their views on the proposed reforms. It is important the beneficiaries take ownership of this issue by interacting with the authorities and becoming a vocal counterpart.

Both PDHR Hays and Minister Mikerevic are pleased that the Entity representatives agreed at yesterday’s meeting that the main priority of their ministries is the welfare of the social groups that they represent. A modern, sustainable and accountable welfare system is essential if the Entities are to be able to continue to provide protection to BiH’s many vulnerable members of society in the current harsh economic climate. The proactive involvement of the authorities in the Social Cohesion Initiative would enhance and support all activities focused to ameliorate the life of each common citizen through granting them access to an adequate social care system.