In December 1995, the Dayton Peace agreement was signed, putting an end to the war in Bosnia, that started more than three years before. The agreement led to the creation of a new sovereign State, Bosnia and Herzegovina (BiH), with a dual structure, and with a Serbian majority, covering 49% of the State Territory; and the Federation of BiH, where the Muslims and Croats are living. Since then, the International Community has been exceptionally active. Many programmes have been launched under the protection of the United Nations, the World Bank, the OSCE and the European Union (member Stated and European Community). However, the situation is still problematic because of the economic situation. The European Union has a special role to play in Bosnia, not only because of the failure of its foreign policy during the war in Yugoslavia and its consequences, but also because Bosnia is the key country in the Balkans, whose stability has serious consequences on the European Union itself.
[...] Projects were identified within the framework of the billion “Priority Reconstruction and Recovery Programme” developed through the joint efforts of the World Bank, the EU and other agencies was a year of emergency and interventions which were designed to respond to the immediate post-war situation. The Phare Essential Aid Programme focusing primarily on imports, provided critical assistance to kick start reconstruction. In 1998 independent experts evaluated the procurement component of the EAP and it was concluded that impact could have been stronger with improved management, sufficient staff and more technical expertise”[6]. In 1996, Phare and Obnova also funded projects in the areas of return, basic infrastructure, housing, institution building, economic regeneration and civil society development. [...]
[...] Moreover, systematic economic coordination and monitoring has to emerge. It means giving a genuine role to play to National Economic Institutions, and we will try to explain how the EU has, in that field, a special role to play. Foreign Investment is still low because such a fragmentation of the country (10 cantons municipalities special district) has enormous economic and social costs. It discourages investors, and jeopardises labour mobility (also because of ethnic hatred). Even if a certain economic stability (growth, inflation) has been reached, there are serious doubts on the capacity of Bosnia to suffer an external shock. [...]
[...] There are obviously costs and benefits for the EU, and also for Bosnia. It's interesting to concentrate on these points. What are the questions we are going to raise in this paper? It is about the consequences of the EU policy in Bosnia. I'd like to state the problem this way: The EU is obviously contributing to the economic development of Bosnia. However, putting an emphasis on what Bosnia is nowadays, my point is to question whether this is a sustainable policy. [...]
[...] Let us now focus on the CARDS programme in order to question it. Our main interrogation lays in the appropriateness of this support programme in Bosnia. Why is, for instance, the EU only acting in soft security fields, such as building bridges or schools, and not investing thousands of in the creation of a single Bosnian army?[9] Why not orienting aid towards more political programmes? My point is not to describe you all the projects supported by CARDS but to question the sustainability of the policy. [...]
[...] For the EU, could we say that, as Development is "trade not aid", conflict resolution is "aid, not political involvement"? Additional questions to raise would be about the whole question of development in a long term perspective The present situation in BiH as a weakness for sustainable economic development 2. The CARDS regulation, how it works, how much it costs 3. The consequences of the EU Policy and limits of EU aid 4. Proposals for another strategy (country strategy assistance) 5. The whole question of development 1. [...]
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