Bosnia-Herzegovina (BiH)

A decade after the signing of the Dayton Peace Agreement, which set down the constitutional framework establishing the state of Bosnia and Herzegovina and its two entities (the Republika Srpska and the Federation of Bosnia and Herzegovina), Bosnia-Herzegovina faces enormous political and economic challenges. Nearly 20% of the population are below the poverty line and another 30% are close to it.

Bosnia and Herzegovina is home to several ethnic groups of different religious and cultural identities, including Bosnian Muslims (officially known as Bosniaks), Serbs, Croats, and a small number of Roma. There is a significant concentration of poverty among ethnic minorities in Bosnia and Herzegovina such as the Roma.

Poverty rates for Roma range between four and ten times that of non-Roma, and Roma are subject to numerous livelihood insecurities (including poor education and health status, limited access to employment, and discrimination), which contribute to their high vulnerably and social exclusion.

Challenges to Bosnia and Herzegovina's development include:

• a weak central State;
• complex constitutional and administrative framework;
• and the legacy of ethnic conflict which has left the country divided.

For more information see:

• the political and economic situation in Bosnia and Herzegovina Foreign and Commonwealth Office (FCO) Bosnia-Herzegovina;
• Roma in Bosnia and Herzegovina, World Bank Roma;
• the legacy of ethnic conflict in Bosnia and Herzegovina, Human Rights Watch.

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DFID in Bosnia-Herzegovina

DFID has been active in Bosnia-Herzegovina since 1993. From then until 1996 humanitarian relief was provided through a Bosnia-based Emergency Task Force as well as through other international relief agencies. Following this, DFID's efforts have been focused on socio-economic development.

In addition DFID is supporting activities under the UK Government through theGlobal Conflict Prevention Pool (GCPP) and de-mining activities. Throughout, our approach has been based on working strategically with other donors and agencies, in particular the World Bank and EC.

In recent years DFID has committed £6 million to Bosnia-Herzegovina annually. In 2007-2008 DFID will provide an additional £4.5 million. Key programme objectives are to strengthen the capacity of the Bosnia-Herzegovina Government through support for:

• a donor coordination mechanism;
• institutionalising the Bosnia-Herzegovina Mid-Term Development Strategy (Poverty Reduction Strategy Paper) process;
• strengthening the budgetary process;
• civil service reform;
• economic, fiscal and social policy reform, including social and health insurance policy;
• support to the national justice sector reform strategy;
• strengthening Government statistical systems; and
• corporate restructuring.

DFID is supporting the development of poverty monitoring, focusing in particular on increasing levels of unemployment, and social policy planning and management.

DFID is focusing specifically on working with its donor partners towards ensuring that:

• European Union (EU) accession policies and programmes recognise and support the Government's economic and social development strategy, and

• that DFID and other donors agree and implement a common agenda for improved aid effectiveness in Bosnia and Herzegovina.

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Other Donors

More than €2.5 billion of European Community funds have been committed to Bosnia and Herzegovina since 1991, and the prospect of future EU accession is a major driver of reform in Bosnia-Herzegovina.

Since 2001 assistance of more than €300 million has been committed under the Community Assistance for Reconstruction, Development and Stabilisation (CARDS) programme, supporting Bosnia-Herzegovina's participation in the EU's Stabilisation and Association Process. DFID is a significant contributor to this, providing about 18% of EU aid resources overall.

The European Commission is currently developing new instruments for delivering assistance to the region for the 2007-13 period. The Instrument for Pre-Accession (IPA) should realise the principles of aid effectiveness as agreed by the Development Assistance Committee (DAC) members, and endeavour to deliver targeted assistance which supports the strategic priorities of the region.

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Links

• Millennium Development Goals DFID
• UNDP Millennium Development Goals Bosnia and Heregovina
• European Bank for Reconstruction and Development (EBRD) Bosnia and Herzegovina
• Organisation for Security and Co-ordination in Europe (OSCE) Bosnia and Herzegovina
• International Monetary Fund (IMF) Bosnia and Herzegovina
• United Nations Development Programme (UNDP) Bosnia and Herzegovina
• The World Bank Bosnia and Herzegovina

Last updated: 24 September 2007