Social cohesion and development is identified as one of the key areas of future Commission Assistance to Regional Development and Stabilisation (CARDS) to SE Europe in general and BiH in particular. It is expected that social development will play a role in strengthening of the state of BiH, smooth the progress of return, contribute to the development of a stable society and bring BiH closer to European standards. Lack of social development will eventually destabilise the peace process and jeopardise the stabilisation and association process.

Health, education, social protection and civil society are principal subsectors. However, ‘social cohesion and development’ is closely linked with other sectors, such as economic development (unemployment), labour market (vocational training), return and human rights.

Although progress has been made since Dayton Agreement was brokered in 1995, the situation remains fragile. Post-war emergency programmes have focused on reconstruction of infrastructure, e.g., health centres, hospitals and schools. Development-oriented TA has replaced the emergency programmes, yet a lot remains to be done.

A major problem is that ministerial competencies for the said sectors do exist only on entity level (for Federation: Cantonal!), which gives way to a fragmented system. It should be mentioned that return has been an additional burden across the sectors, draining further an already little efficient and effective and under-financed sector.

The health care system is still characterised by a poor financing system leading to inequity in health, shortage of basic services and supplies, such as drugs, and poor quality of services. Legislation is fragmented and strategic plans remain just drafts. In addition, some issues remain uncovered, such as psychosocial health, a striking phenomenon in country just recovering from a horrifying war, leaving a large part of the population with psychological scars. Co-operation between entities remains fragile, despite the inter-entity health co-ordinating group.

Previous and ongoing EC co-operation¹

The ECHO programme (1991 – 1999) supported a comprehensive Public Health TA Project (2,5 MEURO) in addition to a major and ambitious reconstruction programme.

The PHARE 1996 Emergency Assistance Programme (EAP – appr. 10.5 MEURO) covered the immediate post-war reconstruction of war-damaged infrastructure. The Laboratory for Quality Control of Drugs was equipped and received TA.

Under the PHARE 1997 programme (5.7 MEURO) support was given to Pharmaceutics Sector Development, Health Financing and Information Development, and Primary Health care and Human Resource management. In addition, two smaller (ongoing) projects provided TA to an integrated health care in Brcko and to the Laboratory for Quality Control of Drugs in Sarajevo.

In 2000 two main projects have been launched under the PHARE 1999 Programme (3.7 MEURO): TA to support Health Care Reform (2,45 MEURO) and TA to support Public and Environmental Health (1,45 MEURO).

Education shows a pattern similar to the health sector, although political obstructionism has been even more obvious. Numerous schools have been reconstructed and re-equipped. But quality often remains poor due to a lack of qualified teachers, overloaded curricula and poorly equipped schools. Most of all, political hard-liners pressing for segregated education is the most blatant obstruction for a global education reform following modern and European standards of quality education. If return is jeopardised by lack of access to health and social services, it is definitely severed by lack of access to proper education. As is the case for health, the fragmentation of the system due to far reaching cantonal authority is a clear drawback for good and comprehensive governance of the sector.

Apart from TEMPUS (10 MEURO since 1996) and EAP (reconstruction infrastructure & equipment – appr. 2 MEURO) EC assistance has focused mainly on vocational education and training.

The EC Obnova (1996) Vocational Training Programme (1.3 MEURO) targeted demobilised soldiers, returnees, war-widows and handicapped persons.

The PHARE 1997 Vocational Education and Training programme (3.4 MEURO) supported (1) Policy and strategy development, (2) curricula development, teacher training and networking/partnership with European vocational schools and (3) education and training measures for reintegration of refugees and other returnees. With Phare 1999 funds, this project has been extended until June 2001.

In November 2000 a major project, Technical Assistance to the Educational Reform (TAER), has been started up under the 1999 budget. This project will support (a) Education Reform in Primary, Secondary and Higher Education, (b) Institutional Development and (c) inclusion of the European dimension in the educational system.

Combined effects of the war & the transition to a market economy have led to increased poverty and exacerbated deficiencies of a social protection system that was primarily designed for a planned economy with guaranteed employment under the rules of a Welfare State providing universal social protection. A viable social protection system and labour market reforms are urgently needed. The number of vulnerable people, in particular among returnees and DPS, is extremely high and put the stabilisation process at stake. Recent measures by IMF and World Bank, as well as planned privatisation, will – on a short term – worsen the situation.

Apart from ECHO support shortly after the war, EC assistance has been very limited. Through Obnova 1999 about 2 MEURO has been allocated, including 1,5 MEURO for social infrastructure (Zetra Stadion). 0,4 MEURO was made available for social protection and safety nets, resulting in two framework contracts, i.e., (a) Establishment of a Master Sample Frame for Household Surveys and (b) TA to Strengthen Capacity of Community Services for Social Welfare. The household surveys is a multi-donor initiative to strengthen the State Statistical Institute and provide a basis for collecting crucial socio-economic data in BiH.

Since 1996 BiH has faced a difficult process of building up a sustainable civil society in BiH. BiH has no tradition in a third sector as such, as it did not exist in the previous system apart from some associations of citizens (trade unions, association of invalids and youth). The problem lies in changing the mentality of the public and the treatment of the emerging third and private sector by the government. A significant number of the local NGOs have taken a more definite shape and have provided important contributions to the establishment of a public opinion in BiH, recognition of the rule of law and ethnical tolerance over the last 5 years. Despite a continuous growth, the third sector still faces major problems, including financial viability, management and sustainability.

European Initiative for Democracy and Human Rights (EIDHR) Programme aims to support development of democracy and protection of human rights in countries of central and eastern Europe and of the former Yugoslavia. The EC has provided funds toward the development and strengthening of democracy and civil society and protection of human rights since 1996 for large and small-scale projects i.e. through macro and micro budget line. Projects are generally implemented by NGOs.

1 MEURO out of 5 MEURO allocated for Former Yugoslav Countries in 1996 is distributed in BiH for the macro projects that included support to youth centres and children workshops, rehabilitation and counselling programmes for refugees and victims of torture, independent media, institutional building, parliamentary practice. Additional amount of 0.55 MEURO was for 43 micro projects with the ceiling of 15.000 EURO per project.

In 1997 over 3 MEURO was allocated to the democracy and human rights programme that included a variety of macro projects and 0.45 MEURO was allocated for micro. 35 micro projects were funded during 1997 with a ceiling of 15.000 EURO per project.

During 1998 the EC has allocated a further 3.4 MEURO toward various macro democracy projects ranging from the promotion of inter-community relations to rehabilitation projects for victims of torture during the war. Originally planned allocation of 0.50 MEURO for micro project in 1998 has been cancelled due to obstacles met in implementing this project scheme.

The EC allocated 3.5 MEURO for the former Yugoslavia countries under the 1999 budget line for macro project. The list of the recommended projects include the 4 regional projects that applied to all countries in the region and 2 which direct target area is BiH. 0.23 MEURO is allocated for 1999 micro projects with increase of ceiling per project up to 50.000 Euro.

As announced in the 1999 guidelines for macro projects, the 1999 call for proposals can be used for 2000 funding. Numerous good projects remained unfounded under the 1999 funds but could be selected for 2000 funding.

8.750 Euro for the micro projects are planned to be allocated for Bosnia and Herzegovina.

The LIEN programme to help disadvantaged group is an initiative of the European Commission which follows on from the 1993 NGO programme to support non-governmental organisations working in the social sector. The main objective of the Lien programme is to stimulate initiative and to strengthen the capacity of non-governmental and non-profit organisations working in the social sector, in favour of disadvantaged groups of the population. The programme awards co-financing grants to NGOs working in the social sector.

0.45 MEURO was allocated for macro projects in BiH. The EC advisory board selected 4 for funding that fulfil the programme’s objectives.

Under the Essential Aid Programme, the first round of micro projects were financed under the title "EU’s NGO Programme for Social and Democratic Development in BiH" as a precursor to the Democracy and Lien programme which were not open to BiH participation by that time. Therefore, the Democracy, Human Rights and Lien projects were funded under the same micro project scheme with no distinguish among the project lines.

The EC allocated 0.50 MEURO for 1997 macro projects in BiH. 4 projects were selected for funding.

0.15 MEURO was allocated for micro projects. 13 were selected for funding fulfilling the programme’s objectives.

Phare Lien is merged with Phare Partnership programme into one new single programme for NGOs which is called ACCESS. This programme will be accessible only for 10 candidates countries of central and eastern Europe and not for countries of former Yugoslavia.

The Phare Partnership programme is an NGO co-financing initiative of the European Commission. It fits within the wider framework of the European Community (EC) Phare Programme which goal is to support process of economic and social reform in the Central and Eastern European countries (CEECs). The overall objective of the Partnership programme is to provide financial support for initiatives that encourage local economic and socio-economic development.

0.40 MEURO was allocated for macro projects in BiH. 3 were selected with the activities that support local and regional development, business and enterprise development, human resource development and training and socio-economic development.

No fund available for micro projects.

No projects were funded during the 1997 under the macro programme scheme, although the call for proposal was launched and number of proposals were sent to the EC Brussels for funding.

0.5 MEURO was allocated for micro projects. 4 projects were selected out of 24 received and are in process of contracting.

The Phare Partnership programme is merged with Phare LIEN programme into one new single programme for NGOs which is called ACCESS. This programme will be accessible only for 10 candidates countries of central and easter Europe and not for countries of former Yugoslavia.