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Economic Task Force Secretariat
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Conditions for 1999 Donors Conference
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Joint Statistics BulletinThe first Joint Statistical Bulletin, published by the BiH Statistics Agency (BiHAS), is available from: BiHAS, Fra Andela Zvizdovica 1, Unis Building, Sarajevo, Tel: 483-221 or 483-220. The cost is 30 KM. The Statistical Bulletin 1999 contains countrywide, aggregate data on various key sectors such as agriculture, forestry, construction, education, transport and communication. Economic Agreements Between BiH and CroatiaAs expected, a first meeting between the BiH delegation and the Croatian Ministry of Trade was organized in Zagreb on March 17 concerning a trade agreement between Croatia and Bosnia and Herzegovina. Minister Loncar could not join the delegation, but was kept fully informed of the meeting and its outcome. Croatian Minister Porges expressed the wish to see a free trade agreement (more than 80% of goods exempted from customs duties) signed between the two countries and stated that this would be Croatia's objective during negotiations. The BiH delegation took note of the Croatian position. Both delegations also agreed to set up sectoral working groups to address in parallel the different sections of the agreement. Political tensions in the RS and within the Federation have since prevented further work on drafting the agreement. The Special Relationship Agreement between the Federation and Croatia still must be ratified by the Federation parliament. This has been delayed due to political difficulties within the Federation and the absence of Parliamentary sessions. In the meantime, the annex to the Agreement on the Economy is being drafted by OHR and will be discussed further with both partners of the Federation before negotiations with Croatia. Economic and Political Situation in the RSIt is difficult to assess what influence the current political situation in the RS the turmoil created by the uncertainties about the present government, the Brcko award, the removal of Mr. Poplasen, and protests against NATO actions in Yugoslavia -- has had on the economy. While there is no clear freeze of the international community's (IC) assistance to the RS, the uncertainties about the political situation, as well as the present instability, are apparently contributing to a slow down in the progress of many projects. It should be noted, too, that the absence of the IC in the RS at a time (early summer) when projects are usually prepared and contracts signed could have a negative impact on the RS's ability to capture international reconstruction funds in 1999. There is no indication that RS companies which trade with Yugoslavia will not do so as a result of the NATO air strikes, although these companies may face supply, transport, or payment difficulties which could force them to stockpile goods. Additional payment difficulties are likely to occur, although the situation was already more or less blocked due to a recent Belgrade decision on the use of Payment Bureaus (SPP). The destruction of bridges in Yugoslavia (Novi Sad and Ilok/Backa Palanka) will force national and international north/south civilian traffic to use alternative roads, for example, through Belgrade or to Croatia at a later stage. This might increase the traffic on the Sava river bridges, as many RS imports were transiting through Yugoslavia, thereby adding to the pressure created by reconstruction work on these bridges. There might also be additional pressure on the old Raca bridge near Bijeljina. Payment Bureaus Reform UpdateGood progress was made in reform of the Payment Bureaus (PBs) in March. Amendments to the Federation Law on the Internal Payment System were prepared by the the Central Bank of Bosnia and Herzegovina (CBBH) and the International Advisory Group on Payment Bureaus (IMF, USAID, IMF, OHR, EC, CAFAO, US Treasury, and the World Bank). These amendments were forwarded to the Federation government. When the law is adopted, it will end the monopoly over domestic payments. In both the Federation and Republika Srpska, a Governing Board is to be established to oversee the process of dismantling and finally liquidating the PBs. There will be one Governing Board in each Entity. The Boards will have three members, nominated by the Prime Minister, the Minister of Finance, and the Banking Agency of the respective Entity. Starting March 15, a team coordinator and five experts (payment system, tax collection, treasury, accounting, and statistics) began work on a functional audit of the PBs. The purpose of the functional audit is to provide the detailed information needed to design and implement the transformation of the functions of the PBs to the appropriate (public and/or private) institutions. The team's analysis, a strategic plan and timetable for transforming BP functions will be presented to the International Advisory Group during the first week of May. |
Anti-Corruption Strategy ApprovedAt its March meeting, the Peace Implementation Council's Steering Board formally adopted the comprehensive anti-corruption strategy developed by OHR. The strategy has two levels: an overall systemic approach; and assistance to local authorities in the prosecution of major corruption, fraud and economic crime cases. The systemic approach utilizes four pillars to provide the tools necessary to identify and implement changes in the structure and procedures of government to eliminate or significantly reduce corrupt activities. The first pillar, which provides for public education and training, underpins every sector. The second pillar seeks to identify and eliminate the opportunities for corruption, thereby eliminating the problem at its source. The third pillar addresses government functions. By requiring transparency in all phases of governmental operations and by requiring financial reports, it creates an environment in which corruption cannot hide and makes government more accountable. The fourth pillar provides the legal standards and civil and criminal penalties for corruption not deterred by the other pillars. Under the strategy, the High Representative will take the lead in coordinating the IC's anti-corruption efforts. OHR will be contacting members of the IC to support individual program activities. As soon as the strategy is translated and presented to local authorities, copies of it will be available. Agricultural Task Force UpdateThe Agricultural Task Force (ATF) met March 31. The mission of the ATF, chaired by OHR, is co-ordination between the international community and local authorities on long-term rehabilitation and development of the agricultural sector. ATF has two components. The Steering Committee discusses agriculture initiatives and their sectoral effects. It is comprised of members from seven international organizations and both Ministries of Agriculture. The Open Forum is a dialogue session for all members of the international community interested in the agriculture sector. Topics discussed at the March Open Forum meeting included: the European Union/Phare program providing policy advice to the agriculture ministries; agriculture extension and education program initiatives; land registration initiatives; rural development; the status and projects of the UN Food and Agriculture Organization (FAO); and the sharing of efforts of the international community. The next Open Forum will be held April 28 at 15:45 in the Chamber of Commerce Auditorium. As IMG collects and distributes information on agriculture activities in BiH, all donors and implementing agencies with activities affecting agriculture are asked to submit this information to IMG. For more information, contact Herman Assen, OHR Agricultural Adviser.
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Further information concerning this publication, please contact:
Tiziana Pagano, IMG, +387 71 666 020, ptiziana@img.ba Sandra Stevens, OHR, +387 71 447 275, sandra.stevens@ohr.int This Newsletter is published under the authority of Carlos Westendorp, High Representative. Editor-in Chief: Didier Fau, Deputy High Representative for Economic |
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