Boosting economy

The difficult political situation and the legal vacuum pending the approval and implementation of new laws has not allowed a large scale economic relaunch.

Nevertheless, the reconstruction programme stimulated the sectors associated with it. The Commission is also supporting a whole series of specific projects: support for SMEs, the establishment of credit systems, programmes aimed at bringing qualified Bosnians back home to work on reconstruction, the stimulation of commercial relations between Bosnian companies and companies from the Member States, the encouragement of foreign investment in Bosnia-Herzegovina, partnerships between chambers of commerce etc.

Creating jobs

Returning refugees and displaced persons need to find work and reintegrate themselves into local life: the "village employment" programme allows them to do both. The European Commission takes on the wages of unskilled displaced persons or demobilised soldiers in municipalities, open to returning citizens. They are paid to clean up rivers, replant forests or carry out minor repairs to infrastructure. This has a direct, visible impact on host communities. This project managed by the United Nations Development Programme (UNDP) should employ a total of 142,000 people.

Kick-starting small businesses

One example is the "employment scheme" run by the "Mission Locale de Strasbourg" in the Sarajevo and Banja Luka regions. The idea is simple: the salaries of workers that a business wants to take on are paid over a short period. Material and equipment can also be funded to a tune of up to ECU 10.000. Up to now success stories include hairdressing salons, bee-keeping, wood cutting, bakeries, to name just a few. To date, 80% of the people paid through the employment grants have found permanent jobs at the end of the support period.

Encouraging foreign investment

On the Commission's initiative, a 10 million ECU insurance fund has been created to stimulate foreign investment in Bosnia-Herzegovina. Managed by the Multilateral Investment Guarantee Agency (MIGA), this fund is designed to cover the political risk involved in investment in this new country (mainly renewed hostilities and misgovernance).

Encouraging industrial development

Via its industrial development programme, the European Commission is mobilising the European private sector to stimulate its interest in the emerging market in Bosnia-Herzegovina. The aim is to reinforce the relations between Bosnian and European companies, and to provide technical assistance to Bosnian industrial firms in promising sectors such as the wood industry. The programme includes different aspects: the partnership between European and Bosnian Chambers of Commerce, increasing awareness amongst Bosnian entrepreneurs of the opportunities created by donors' aid programmes, assistance to the restructuration of the wood sector and technical assistance for women entrepreneurs in Bosnia-Herzegovina.

Providing access to credit

Credit and micro-credit systems can break the vicious circle that lead to unemployment and poverty. As long as there are no provisions for credit, the economy cannot develop. The European Commission is contributing to the creation of a new Bosnian commercial institution specialising in this type of credit ( DM10,000 to DM50,000). In addition to the urgency of giving Bosnian entrepreneurs the means to start their own businesses, the project is designed to prove to local banks that this kind of financial activity can be profitable.

Reviving agriculture

No less than 70% of the tractors in Bosnia-Herzegovina were destroyed during the war. To encourage people to return to rural areas and restart agricultural production, the Commission supplied machinery, seed and fertilisers to returning farmers. In parallel, the delivery of 560 Simmenthal heifers at the end of 1997 regenerated livestock numbers. To make the activities of Bosnian farmers autonomous and profitable, the Commission gives them technical assistance in developing an agricultural policy in line with the rules of a market economy.

Preparing Bosnian society for democracy

Educating voters

"Cast your vote according to your conscience." "Find out what the different candidates are proposing." "Do not let yourself be influenced by others." These were just some of the slogans used in a wide-ranging awareness campaign promoting the importance of voting for the future of the country. The voter education campaign was organised by the OSCE with the Commission's support. Particular efforts were made to reach young people via TV commercials, radio ads and posters produced by young Bosnian artists from both entities.

Supporting independent media

Everyone agrees that the media was a catalyst to the outbreak of hostilities in Bosnia-Herzegovina. Yet now, numerous initiatives to create free and independent media are flourishing. Considering that freedom of the media plays a crucial role in the process of democratisation, the EC has since 1994 developed a programme of assistance to independent media in the countries of former Yugoslavia. In its choice of media, the EC has opted for those that seek to foster understanding, trust and cooperation between the different communities in Bosnia and Herzegovina. The projects supported range from a journalism school in Sarajevo, to the setting up of an independent print house in Banja Luka and the purchase of paper and computer equipment for magazines. In order to allow as many people as possible to have access to independent sources of information before the elections in September 1996, the Commission made a substantial financial contribution to the independent OBN/TVIN television network, which covers a great part of Bosnia-Herzegovina.

Giving civil society a voice

In order to help recreate a civil society in this ravaged country, the European Commission in the framework of the European initiative for Democracy and the protection of Human rights, supports a large number of small projects aimed at breathing new life and energy into Bosnia Herzegovina's associative life, e.g. women's associations, associations promoting dialogue between the communities, and cultural initiatives. The Commission is also involved in the creation of the legal framework for Bosnian NGOs to develop their activities.

Reconnecting universities

The TEMPUS inter-university co-operation programme has now encouraged five universities representing the three Bosnian communities to work together. They decided to combine their efforts to overcome war damage and to improve the level of their teaching. The exchange programme's goal is to promote a new dialogue between the different communities and to modernise the Bosnian university system so that it is compatible with standards in the rest of Europe.

Defending human rights

Victims of human rights abuse can register a complaint with the human rights Ombudsperson - an institution created by the Dayton/Paris peace agreement and mainly financed by the Commission. This institution investigates and publishes its findings. For example, in 1996 the General Hospital at Brcko decided not to admit patients coming from the B-H Federation. The Ombudsperson recommended that this decision be overturned. The authorities complied with the recommendation.

In the framework of the European initiative for democracy and human rights, the European Commission supports several non-governmental organisations who dedicate their work to the protection of human rights.

Instilling respect for property rights

The Commission for real property claims (CRPC) created by the Dayton/Paris accords and financed by the European Commission has an enormous job to do. Its task is to verify property rights and determine the rightful ownership that existed before the war. The task is hugely complicated as many official documents have disappeared. The CRPC gathers all the information in a data base, delivers title deeds in resolved cases, and helps organisations in charge of rebuilding homes to identify the legal owners.