Office of the High Representative Documents


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

Quick Reaction Mechanism 5,000,000

Background

Past experience has repeatedly shown that even peerless planning cannot predict unforeseen events which need appropriate and quick reaction. The success of such actions often depends upon the availability of financial help in form of a grant or a short term loan. In 1998, "quick action" from the OHR was instrumental in implementing a number of key and effective actions including the start-up operations of Mostar airport, introduction of new license plates, enabling the Commission on Human Rights to be more effective, carrying out the reform of media, and establishment of the railway corporation. Recently, the OHR was informed about two sites of ammunitions in Sarajevo suburbs that are totally open to the public and present a real threat to the civilian population, in particular, children. The cost to store the ammunition in a safe place is around 100,000 EUR. These sites continue to be exposed to pedestrians and pose a serious hazard. On the other hand, the license plate has been a real success story, allowing people to move freely with the rightful sense of security. It has also bolstered trade.

Often the amount of funds needed to succeed in unforeseen situations is limited. But without appropriate funding, opportunities could be missed or situations might deteriorate to a point of hopelessness. Norms of internal procedures constrain donors to disburse funds unless these have been allocated previously. It is, therefore, imperative that the High Representative be provided with a mechanism that allows him to react promptly to unexpected situation on behalf of the international community.

Madrid Commitments, Objectives

Concerned with the inability of the High Representative to respond swiftly and urgently to unforeseen financial needs arising from sudden political developments on the ground, without having to refer back to capitals, the Council requested donors to ensure that adequate funds are available to the High Representative to support initiatives in response to situations involving quick action.

Secure funds to allow the High Representative to buttress unplanned events.

Present situation - progress to date

There is no such mechanism at present (apart form the "Portuguese Fund" but its scope is limited).

The OHR proposes to donors to use one of the following ways to participate in this mechanism:

  1. transfer funds to OHR budget with a veto/control on disbursement;

  2. earmark in their 1999 budget an allocation which could be initiated by the High Representative and implemented by the donor or its agency;

  3. transfer to a partner (such as IMG) a budget for OHR Quick Reaction Mechanism (QRM). Disbursement from this partner would be initiated at the request of the High Representative.

Each donor could also allocate the funds under the QRM to a particular sector (e.g., economic reform, humanitarian aid, common institutions).

Contacts - Leading Agencies

For OHR email addresses and other contact information, please click the Contacts heading.

OHR: Didier Fau, Deputy High Representative for Economic Matters
Antoine Dubas, Economic Department, Paul Banerjee, Economic Department

Funding needs

Additional information, Remarks: -

Office of the High Representative