1999 PHARE AND OBNOVA
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5  OBJECTIVES AND GUIDING PRINCIPLES

5.1  GENERAL OBJECTIVES

The main objectives of the EC assistance schemes for Bosnia and Herzegovina in the short and medium term are to help: (1) consolidate the peace process and foster inter-entity co-operation, (2) ethnic reconciliation and the return to their homes of origin of refugees and displaced persons, (3) establish functioning institutions and a viable democracy, (4) lay the foundations for sustainable economic recovery and growth and (5) bring Bosnia and Herzegovina closer to EU standards and principles.

Considered a year of transition from a phase of "reconstruction" to that of "stabilisation and consolidation", 1999 will see a mix of "classic" refugee return schemes and more ambitious measures addressing the institutional and socio-economical context. In particular, the shift from systematic grant aid to more market oriented assistance mechanisms (e.g. credit schemes) will be emphasised.


5.2 GUIDING PRINCIPLES

The selection of sectors retained for funding under the Phare and Obnova schemes for 1999 is made on the basis of several criteria:

a)  the Commission is to support the process laid down in the Dayton/Paris Peace Agreements and discussed at the Peace Implementation Conferences under the guidance of the OHR;

b)  the assistance provided to Bosnia and Herzegovina must be consistent with the objectives and general principles of the EU's regional approach for South-Eastern Europe in accordance with the Council conclusions, accompanied by regular assessment on compliance with these principles by the European Commission;

c)  with regards to Refugee return, EC assistance must comply with the Action Plans as prepared by the RRTF and the OHR;

d)  Bosnia and Herzegovina should both at State and entity levels comply with the basic conditionality principles - full commitment of all parties should be expected to political stability, human rights, safe environment for refugee return, market economy and regional co-operation;

e)  in addition, the authorities should be committed to the necessary reforms and policy measures, notably in the sectors where the EC will offer support (specific sector conditionality), and make available adequate means for the implementation of programmes (including a continuity in personnel and the payment of acceptable salaries for public officials) notably by reducing army related expenditures;

f)  maximum co-ordination is to be secured with the ECHO activities, in particular in sectors such as refugee return or where ECHO is planning to phase out (eg health);

g)  the definition of programmes should guarantee their sustainability and viability after the withdrawal of EC assistance. Phasing out strategies should be included in the initial designs.


5.3  REQUIREMENTS FOR SUCCESS OF THE PROGRAMMES

A number of additional elements have been considered in project identification.

a)  maximum donor coordination to avoid duplications or cross-conditionalities and maximise impact through complemetarity;

b)  consistency with in-country developments and taking into consideration of the absorption capacity at all levels;

c)  lessons drawn from past EC assistance, in particular where implementation has been particularly slow due to bad project identification or shortcomings in the related sectors;

d)  continuation of existing actions where positive results have already been obtained or where the indicators of such an outcome are good, and where additional assistance is required;

e)  concentration on a limited number of sectors in order to maximise impact and to make efficient use of available resources, in particular personnel required for implementation and monitoring;

f)  well advanced project preparation and design before commitment of funds in order to speed up the contracting and disbursement of funds.

1999 PHARE AND OBNOVA - Table of Contents  |  Next: Proposed programme orientations


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