The war caused the displacement or exodus of half the population of Bosnia-Herzegovina, about 2 million people. At the height of the crisis, the European Union was sheltering more than 750,000 refugees from ex-Yugoslavia, the majority of whom were from Bosnia-Herzegovina. Peace and stability cannot be guaranteed until refugees (outside the country) and displaced persons (inside the country) can return home.

To date, for obvious political and security reasons, refugees have returned to regions where people of their own ethnic origin are in the majority. A huge challenge lies ahead: the return to regions where they will be in the minority. It was clear from the start of the Commission's activities that it would not be sufficient to simply repair roofs and houses for the refugees to return. They would only come back if there were guarantees of safety, employment prospects, healthcare, schools for their children and quite simply the right to move about freely without hindrance from boundary lines or the risk of mine explosions.

An integrated approach

Although the improvement in infrastructures has contributed in a general way to encouraging the return of refugees, the rehabilitation and reconstruction of houses goes hand in hand with a whole series of measures to improve living conditions. This not only applies for returning refugees but also for the communities to which they are returning, so as to avoid tensions between the two groups. The Commission has therefore financed numerous housing projects together with the rebuilding of health centres and schools, and projects to revive small businesses. The Commission's privileged partners in this type of project are NGOs. Because of their good field knowledge and the direct contact they have with municipalities, they can identify the rightful owners of houses that are to be rebuilt. Through personal contacts with families, they prevent tensions by proposing solutions which benefit both returnees and host communities.

ECHO (The EC Humanitarian Office) and DG IA at the Commission have adopted a complementary approach for all projects aimed at encouraging the return; ECHO concentrates on displaced persons in rural areas while DG IA finances larger scale projects in urban areas. The two Commission services play an active role in the Return and Reconstruction Task Force run by the Office of the High Representative.

1998: a crucial year

"Easy returns" are over. Those who were able to return to unoccupied or slightly damaged houses have already done so. Most who have yet to return come from areas where they will be in the minority and/or where their homes are already occupied by other displaced families. Finding a solution is more and more complex. Displaced families have to be re-housed before refugees can be brought back. The owners of each house have to be properly identified. It has to be made clear whether families whose homes are to be rebuilt actually intend to live in them. Problems are solved almost on a case by case basis. That's why the NGO approach is the most efficient one. The Commission for Real Property Claims (CRPC), an institution created by Dayton and largely supported by the Commission assists the work of the NGOs by studying title deeds.

"The return of refugees and displaced persons is at the very heart of the problems persisting in Bosnia and Herzegovina. It is both a hope, the hope of a return to normal life, and a threat, the threat of social tensions and unrest. It is thus our duty to work together on eliminating the threat and turning the growing hope into reality."

Herman De Lange, Principal Advisor to the European Commission, in charge of Reconstruction in Bosnia-Herzegovina, at the 4th Donor Conference, 7th and 8th May 1998 in Brussels.

The Commission boosts efforts

For the return of refugees,1998 will be crucial. The efforts of the international community to re-establish decent living conditions and get the economy back on its feet are beginning to bear fruit. Recent favourable political developments in Republika Srpska are encouraging. To give a boost to the return, at the end of January 1998, the Commission invited a large number of NGOs to submit proposals for projects focused on refugee return. Projects worth more than one hundred million ECU have just been approved. They will start very quickly so as to take advantage of the reconstruction season.

The response was far greater than expected: not less than 200 projects were submitted. After due appraisal, 24 projects representing an amount of 65 million ECU were selected. The contracts were signed on 2 April 1998 in Sarajevo and the NGOs are already getting down to the task ahead. For example, Hilfswerk Austria is preparing the return of displaced persons in the North of Bosnia. Their return will result in 300 houses being freed up, which will enable refugees abroad to return home.

The need for loans

In the two and half years since the end of the war, the European Commission has repaired 13,000 homes, enabling 50,000 people to return to their homes. That is considerable, but it is far from being enough. The reconstruction efforts are continuing, but all the needs cannot be satisfied. That is why the Commission is in the process of setting up a system of reconstruction loans, which will be available on very favourable terms to those who want to borrow to rebuild their homes.