After massive reconstruction following the war in Bosnia and Herzegovina (BiH) war, the international community continues to play a key role in supporting the country’s progress and stability. Developing jointly funded projects with other donors is a powerful way for USAID to further its development goals and multiply the impact of U.S. foreign assistance. This labor-intensive process requires dialogue and a strong understanding of a donor’s development philosophy, program modalities, and capacity. Such challenges have proved well worth the effort in BiH.
To date, USAID/BiH has leveraged more than $90 million from other donor countries, including the Netherlands, Norway, Germany, Sweden, and the Czech Republic. USAID/BiH use three main types of donor partnerships: (1) donor resources transferred to a USAID-managed project; (2) parallel funding to a shared effort managed separately; and (3) USAID funding to a project managed by another donor. These collaborations have created strong models for USAID to replicate worldwide. USAID/BiH has also begun implementing funds through government-to-government (G2G) mechanisms.
USAID/BiH innovative partnerships include:
Fighting Trafficking in Persons in BiH
$300,000 G2G with the BiH Ministry of Security
To assist BiH in returning to Tier 1 in the U.S. State Department’s annual Trafficking in Persons Report, USAID pledged $300,000 in direct funding to the BiH Ministry of Security to strengthen the fight against trafficking in persons. Cooperation with the ministry represents the first ever G2G agreement with BiH.
$20 million total: $10 million each USAID and Sida
USAID and the Swedish International Development Cooperation Agency (Sida) designed and awarded the GOLD activity to help generate new investments, employment and growth of private enterprises in selected localities in BiH. GOLD is augmented by a parallel G2G Incentive Fund that is available to local authorities as direct assistance to implement economic development reforms.
$35 million total: $21 million USAID; $14 million Sida
USAID designed two projects to improve the competitiveness of small and medium-size enterprises in the agricultural, wood, metal, and tourism sectors: Fostering Agricultural Markets Activity (FARMA) and Fostering Interventions for Rapid Market Advancement (FIRMA). Additional FARMA activities are implemented in cooperation with the Czech Development Agency through USAID’s Emerging Donor Challenge Fund.
USAID and Sida loan guarantees unlock $40 million in credits
An initiative between USAID/BiH and Sida—collaboration through USAID’s DCA loan guarantee program—is the first-ever global partnership between USAID and Sida for loan guarantees. USAID-Sida funding will lead to significant levels of credit guarantees for productive enterprises, with the potential for tremendous impact on economic growth.
$3.25 million UNDP; $4 million GIZ
The 3E program is an example of donor collaboration through parallel funding and implementation. The project promotes energy efficient technologies by developing demonstration projects in buildings that are co-funded by public and private counterparts. The project is implemented in coordination with the UN Development Program and the German Agency for International Cooperation (GIZ).
For more information:
Ela Challenger, Deputy Director
USAID/BiH Program Office
Tel: +387 (0) 33 704 211
Last updated: September 19, 2014