|
|
|
I. IntroductionThe Peace Implementation Council (PIC) held in Madrid (15-16 December 1998) expressed cautious optimism at the level of progress made in implementing the General Framework Agreement for peace in Bosnia and Herzegovina (GFAP). Establishment of political and economic institutions, passage of key laws, freedom of movement backed by the rightful sense of security, progress in economic reform to sustain a market-oriented economy and steps to a democratic society are examples of these accomplishments. Members of PIC concluded that the country had reached its limits of the maximum possible in international assistance but accepted the need to support the remainder of reforms, ensure that returns of displaced persons and refugees happen in an unequivocal manner, the nascent rule of law prevails and institutions support a civil society. Recognizing that reaching these goals and fully effecting the conclusions reached in Madrid have certain financial consequences, the members clearly identified numerous tasks that must be accomplished in order to consolidate peace. Structural reform is undoubtedly one of the most fundamental and difficult tasks to be carried out. The reform covers numerous fields and taken together, these form an integrated program in the core areas: reform of institutions (police) and democratization (media) to espouse a civil society; rule of law and human rights to buttress the judiciary and protect citizens; struggle against corruption and fiscal evasion; and economic reforms including the reorganization of the public sector to equip the country to meet the challenges of and benefit from a self-sustaining economy. As mentioned, these initiatives require considerable effort and substantial financial means. This means that there must be a shift in focus of the international community from physical reconstruction to structural reforms. The purpose of this document is to present key actions which need financial support to be successfully carried out in 1999. Projects and reforms are divided in the following areas:
We hope that this background document will facilitate the task of donors to meet political requirements expressed in Madrid. II. Key Reform Initiativesa) Institutions Reform and DemocratizationMedia : 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: Since 1994 it has been a major aim of the international community to have Mostar as a unified City again as it is a pivotal institutional factor in securing a functioning and effective Federation. This vision was reinforced at the Madrid PIC by offering preconditions for having Mostar as the Capital of the Federation. A requirement for this is ensuring that buildings are reconstructed for the use of joint City, Cantonal and Federation authorities who have managed until now to take up their duties despite the lack of facilities. However, the vision of Mostar as a unified and capital Federation city also obligates support for the new Cantonal judicial system and City airport which were finally launched in 1998 after protracted negotiations. It also offers the opportunity to use this regional economic center as a model platform in stimulating small and medium sized enterprises in order to reduce unemployment and encourage the development of the private-sector market economy.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.b) Rule of Law and Human RightsRule of Law - Judicial Reform : Without the rule of law and an independent and impartial judiciary, there can be no future for Bosnia and Herzegovina as a modern, prosperous European nation. The Peace Implementation Council in Madrid confirmed the establishment of the rule of law, in which all citizens have confidence, as a prerequisite for a lasting peace, and for a self-sustaining economy capable of attracting and retaining international and domestic investors. The Peace Implementation Council identified a program of judicial reform through which the building the rule of law in Bosnia and Herzegovina can be achieved, including: the creation of an independent, impartial and multi-ethnic judiciary; strengthening prosecution of organized crime, return-related violence, corruption and other serious criminality; rationalizing and reinforcing the institutions for human rights protection; better public information about the rights of citizens and legal assistance; developing and implementing an equitable mechanism to enforce legal rulings.Human Rights : Bosnia and Herzegovina will not be accepted as a modern, democratic European state until all its citizens enjoy full protection of their human rights, including freedom from discrimination. The work of the Annex 6 and 7 institutions must be sustained in 1999, during which a strategy must be developed for their eventual incorporation in the state budget or phasing out, as appropriate.BiH State Border Service : A major impediment to the establishment of an integrated Bosnia and Herzegovina is the absence of a viable national border police. Consequently, BiH lacks a key characteristic of the sovereignty, territorial integrity, political independence and international personality normally associated with sovereign nation-states. The BiH State Border Service will uphold the integrity of, perform surveillance on, and exercise control over the internationally recognized border of BiH. The Border Service will enforce the BiH Law on State Border Service, BiH Law on Immigration and Asylum, and ensure enforcement of relevant Cantonal and Entity laws as provided for in state-level legislation. The formation of the State Border Service will be an expensive proposition as the project will be unable to draw on BiH governmental institutions and infrastructure. The international community will have to assist in start-up costs for training, equipping, and supporting the new force, and may also have to extend its resources in order to advise and oversee the State Border Service.Local Police Reform & Development : Under Annex 11 of the General Framework Agreement for Peace, the UN International Police Task Force (IPTF) was established as part of the United Nations Mission in Bosnia and Herzegovina (UNMIBH) to train, advise and assist the local police in Bosnia and Herzegovina. Specifically, UN IPTF is assisting in restructuring, reforming and democratizing the local police in accordance with internationally recognized standards. A restructured, reformed and democratized police is one of several necessary conditions to establish the rule of law in Bosnia and Herzegovina. Projects focus on various aspects of the restructuring and reform agreements, including the renovation of police facilities, procurement and distribution of vehicles, specialized training, and the necessary equipment.c) Quick Reaction MechanismEven 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. 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. In view of the foregoing, the Peace Implementation Council requested donors to ensure that adequate funds are available to the High Representative to support initiatives in response to situations involving quick action. d) Economic ReformsThe Madrid PIC called for reforms to complete the transition of Bosnia and Herzegovina to a private market-based economy and to establish modern standards of governance to support the objective of sustained peace. The reforms outlined in the Madrid Declaration will require donor support for technical assistance over a wide range of initiatives. The activities proposed for donor funding reflect the highest priority items concluded in Madrid. Privatization : Bosnia and Herzegovina has made considerable progress in designing the privatization program, enacting the appropriate legislation and establishing key institutions. The major remaining task centers on strengthening capability for executing privatization and developing share trading and information systems.Macro-economic Framework and Self-sustaining Economy : Some progress has been registered in fiscal and banking sector reforms and other steps towards the formation of a market economy. The urgent outstanding tasks include financing for reform of the payments bureaus to support the emergence of an efficient market economy and assistance for establishing a deposit insurance agency.Public utilities : The most urgent task is the necessary reforms towards the establishment of a new regulatory framework and the development of institutional cooperation between the two Entities.Anti-corruption : Standards of public governance, accountability and oversight, public procurement, fall far short of modern standards. The initiatives focus on building up the public constituency for support and for detection of fraud. Certain initiatives are being financed already by donors; others are covered in the chapter on the judiciary and police.e) Reconstruction and Return Task ForceAccording to RRTF estimates, at least 120 000 refugees and displaced persons would be prepared to return immediately if conditions were created that would allow them to feel safe and build a future for themselves and future generation. If this quantum leap were made, further returns - possibly in the hundred of thousands - can be expected over the next 1-3 years. Without the initial push, however, a self sustaining flow of returns is inconceivable. The RRTF Plan for 1999 sets out the requirements for achieving a break-through in minority returns and creating the conditions for a self-sustaining flow. The funding requirements were identified in the RRTF 1999 Plan endorsed by the Madrid PIC as being of critical importance. The principal elements of the plan are Space(generating space for people to return to); Security (for individual returnees); and Sustainability (making it possible for returnees to build a future in their home areas). The amounts presented in this document are all expressed in EUR. The OHR nevertheless urges donors to use and promote the use of the Konvertibilnih Maraka (KM) for implementation of their programs. Contracts should be specified in KM; bank transfers and cash payments (in both entities of BiH, for contracts, salaries on any other purpose) should be in KM. |
| SUMMARY All amounts in EUR | TOTAL 309,160,403 EUR |
| INSTITUTIONAL REFORM AND DEMOCRATIZATION | subtotal | 46,660,684 |
|
| 16,936,730 | |
|
| 13,313,490 | |
|
| 16,410,464 | |
| RULE OF LAW AND HUMAN RIGHTS | subtotal | 50,252,961 |
| 3,205,483 | ||
| 10,375,696 | ||
| 10,753,966 | ||
| 25,917,816 | ||
| QUICK REACTION MECHANISM | subtotal | 5,000,000 |
| 5,000,000 | ||
| ECONOMIC REFORMS | subtotal | 34,864,700 |
| 16,774,410 | ||
| 13,908,022 | ||
| 1,855,890 | ||
| 2,326,378 | ||
| RETURN OF REFUGEES-RRTF | subtotal | 172,382,058 |
| Return of Refugees-RRTF | 172,382,058 | |
|
Exchange rate:
Note: Certain initiatives presented in this paper may appear in documents and appeals of other organizations. The "KM" abbreviation is used in this document instead of the international code for the Konvertibilnih Maraka, which is BAM. Remarks : this document has been prepared by the OHR, with the support of donor agencies and other organizations. For an improved coordination, the OHR would like to recommend that donors and implementing agencies provide the relevant information about their past, present and future programs or projects to the relevant databases operated by the IMG (International Management Group) and the World Bank. The PIMS database (Project Information Monitoring System, for reconstruction sectors) and RCM database (Reconstruction Contract Module, for non reconstruction sectors), managed by IMG, are available on the IMG Internet site : http://www.img.ba/index.htm
|
|