Funding requirements & Follow-up of the Declaration of the Peace Implementation Council Madrid, 15-16 December 1998 Information Meeting Brussels, 2 February 1999 AN UPDATE FIFTH DONORS' PLEDGING CONFERENCE FOR BOSNIA AND HERZEGOVINA, Brussels, 20, 21 May 1999 Institutional Reform and Democratization 46,660,684 EUR Overall objective Media: The establishment of a free, pluralistic, multi-ethnic and professional media throughout BiH with strong public and commercial sectors, promoting co-existence and reconciliation among ethnic communities remains a crucial part of the peace process as a whole. Public ignorance and misunderstanding continue to frustrate our efforts in almost all areas of our work; notably in areas such as refugee return, the privatization process and human rights. Much was done last year to restructure the media in line with best western democratic practice. The consolidation of this success, combined with the necessary media regulation and complaints procedure through the IMC, will be vital to our program for 1999. Alongside an accountable legislative, transparent executive and independent judiciary a free media forms the essential Fourth Estate of a stable democracy. The media has an essential role to play in the encouragement of economic activity, particularly in the encouragement of small and medium size enterprises which will be a recurring theme for 1999. The establishment of viable internal markets, product placement and the encouragement of foreign investors is also a vital media activity, as is the provision of general economic information to business and the general public. Common Institutions: The Madrid Declaration affirmed that weak cooperation and a fragile relationship between the entities need to be braced by strong and effective common institutions. It also acknowledged the efforts of and the various concrete steps by the Office of the High Representative to strengthen the institutions. These include imminent restructuring of the Council of Ministers as well as the Ministry of Foreign Affairs. The on-going process to relocate all of the State institutions in Marijin Dvor building is a positive sign. Financial viability of State institutions is fundamental. Attempts by the OHR to ensure that the financial support from the entities flow to the State provides financial independence, albeit partial. Despite the progress, various initiatives are still needed to reinforce the common institutions and include strengthening of the Constitutional Court, creation and functioning of Supreme Audit Institutions to introduce external audit mechanisms, and establishment of a State Treasury to improve budgeting practices. Mostar and Canton 7: The war devastated the Mostar region. Most industrial facilities were damaged and unemployment remains excessively high. Economic revitalization remains a key challenge as small and medium-sized private enterprises prepare to compete in market-oriented economy. These difficulties are further exacerbated by serious political differences. The objectives to revitalize the region address both economic, social and political problems. These include a functioning airport, committed by the international community; promoting the role of the judiciary; and improving the inadequate physical facilities for the City, Cantonal and Federation government institutions. Brcko: The OHR will request that donors establish a Brcko Trust Fund to support additional initiatives needed to implement the arbitration decision. The Brcko Trust Fund, and the program planning and technical expertise required to implement it, would be managed in partnership between OHR and donors. The Fund would be used to help meet the costs of managing tax and legal system reform, improving the business environment, building transparent and honest self-government, promoting economic development aimed at a self-sustaining economy in Brcko, and nurturing community development, reconciliation, and democratic practices and leadership. Initiatives to Implement Madrid Commitments Media Public Service Broadcasting: The restructuring of RTV BiH to form a Federation TV service and a national Public Service Broadcasting Corporation under Annex 9 (Public Corporations) and the removal of direct party political control from all media - in particular publicly funded media Independent Media Commission: The now firmly established IMC will work to regulate the electronic media, building the legal and regulatory framework to institute media standards consistent with best international practice. It will also take the lead with the establishment of a press complaints council and work to ensure media independence and the raising of journalistic and broadcasting standards. OBN: OBN remains the only independent cross-Entity television broadcaster and as such is a vital conduit for free information. Support for this project is vital in consolidating open and pluralistic media and should be sustained until such time as public service broadcasting is legally and financially secure and firmly established. Public Information Campaign: The Madrid document sets out an ambitious program for 1999, particularly with regard to refugee returns, judicial reform, and reinforcement of the rule of law, as well as economic reforms and privatization and the development of a permanent elections regime and law. The Madrid document notes under each of these sections the imperative for public information campaigns to support the operational activities. Overarching these campaigns the Office of the High representative wishes to conduct a general strategy to promote reconciliation. Training for Journalists: The Madrid document urges donors to focus assistance on training and education for journalists, including aid for permanent training centers established by the international community. Common Institutions Constitutional Court of Bosnia and Herzegovina: The limited financial resources of the State cannot satisfy the full funding necessary to cover expenses for salaries and operating expenditures. State Treasury: An integrated institution at the State level is needed to improve budget preparation, standardization of budgetary procedures and analysis, centralization of the payroll and fiscal coordination. Supreme Audit Institutions: The lack of a comprehensive audit mechanism is indeed a serious obstacle to accountability of public funds. A robust institution responsible for and mandated to monitor governments' revenues will rectify this situation. Marijin Dvor Building - BiH State Institutions: The Renovation of the Marijin Dvor State Building will reinforce the common institutions as the offices will no longer be scattered. Standing Committee on Military Matters (SCMM): The Madrid Declaration called for the Presidency and the Entities to work during 1999 for the establishment of a common security policy leading progressively to a State dimension to defense and recommended that the SCMM be strengthened. Mostar and Canton 7 Brcko Trust Fund: The Trust Fund will support additional initiatives needed to implement the arbitration decision Mostar airport: The Interim Mostar Airport Authority (IMAA), was created under the Arbitration Decision of 16 March 1998 by the High Representative to open the Mostar airport for the civilian air traffic, following a one-year period during which the Croat and the Bosniac officials of Mostar could not agree on the modes for the opening. The international community should continue to support the Airport until it becomes viable. Implementation of an integrated Judiciary in canton 7: Canton 7 is the only canton in the Federation which has not yet established a functioning cantonal judiciary in accordance within the provisions of the appropriate legal framework. Most municipal courts do not have adequate facilities or no facilities at all. These institutions also lack the necessary furniture and equipment. Pilot Study on land registry in Mostar: UNMIBH Judicial System Assessment Program (JSAP) in Mostar recommends that a pilot program be developed to establish a property and land registry in the area for the modernization of the land registration system. This pilot program could be a basis to develop and improve property and land registers in other parts of BiH. Economic revitalization in canton 7 - Mostar area: The war devastated most industrial facilities. Most economic activity is currently concentrated in trade, construction and catering and high unemployment prevails. The aim now is to promote medium and small size enterprises. Joint City Administration, Cantonal & Federal institutions buildings in Mostar: A major aim of the international community is to have Mostar as a unified City again. A joint City Administration and a joint Cantonal Government will be instrumental in achieving this goal. This however requires buildings to accommodate these institutions. Present situation - progress to date: Independent Media Commission established as media regulatory body. Code of practice for broadcasters enacted and licensing procedures begun. Public service broadcasting reform launched at both Entity-founded television networks Boards of Governors for RTV BiH and SRT chosen in a transparent way, and comprise no elected officials New public service statutes and charters adopted for RTV BiH and SRT Inflammatory rhetoric reduced after SFOR intervention; permits removal of direct political control of SRT Expansion of commercial media sector produces more pluralistic media climate OBN going from strength to strength with improved programming and increased geographical coverage General improvement in accuracy and balance of reporting The Constitutional Court, established in March 1997, is operating but faces depletion of professional due to low salary levels. In absence of a Treasury and Audit Mechanisms, the budgetary process at the State level is severely limited and lacks transparency. In April and May 1999, the BiH Council of Ministers created working groups on both projects. The initial rehabilitation of the Marijin Dvor building has provided limited amount of offices for the State institutions. Standing Committee on military Matters was established in September 1997. The Secretariat, composed of military advisors representing the three peoples, meets once a week. Mostar airport: The international community urged that the airport be operational but this requires financial commitment as long as the airport is not self-sustaining. Prior to the war, the airport was profitable. Implementation of an integrated Judiciary in canton 7: Funding requirements are being developed. Pilot Study on land registry in Mostar: This will be key to modernization of the land registration system. Economic revitalization in canton 7 - Mostar area: The Mostar region suffered from the consequences of the war. The adverse economic impact has not reversed and the situation continues to be bleak. Joint City, Cantonal & Federal institutions buildings in Mostar: OHR has reached some progress, politically, in abolishing parallel structures and in forming joint institutions.

Office of the High Representative