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Bosnia and Herzegovina

FY 2001 Program Description and Activity Data Sheets

>> Regional Overview >> Bosnia and Herzegovina Overview

FY 2001 Program

U.S. priorities in 2000 and 2001 focus on maintaining Bosnia's movement towards a market economy, continued support for democratic reform, and support for minority refugee returns. Recent political changes in the Republic of Croatia may have a positive impact on the continuing reform process in Bosnia-Herzegovina; i.e., make it easier to work in predominantly Croat cantons with greater success. However, the political situation in Croatia is not likely to have a significant effect on USAID’s programming for Bosnia. USAID will adjust its Bosnia program in keeping with anticipated reductions in funding levels.

Substantial funds have been invested in building the framework for a market driven economy, often in the face of opposition or outright hostility from Bosnia’s current political leaders, who will benefit least from the success of these activities. Staying the course is critical. Bosnia will not survive without a functioning economy. Democracy is another area where it is important to stay the course. Many of the efforts of the international community to move the peace process forward are circumvented by local officials who seek to protect their own privileged sources of income and their ethnic communities at the expense of others. Ordinary Bosnians are becoming more and more frustrated by the increasingly evident, poor leadership of the nationalistic parties and their inability to provide political and social direction. Minority refugee and IDP numbers are increasing dramatically. Support for these people who are returning to areas where they are not the majority ethnic group is also critical in order to realize the dream of a return to a peaceful, multi-ethnic Bosnia. In all cases, Bosnians will be active managers and participants.

FY 2000 will be the last year for the Municipal Infrastructure and Services (MIS) program. While the program was highly successful in promoting economic reactivation and forging a return to normalcy, it is time to bring work in large-scale infrastructure to an end. The follow-on, Community Reintegration and Stabilization Program will come on line in FY 2001. The program will focus primarily on facilitating minority returns. However, it will also support some of the remaining infrastructure needs of Brcko to achieve an integrated district managed by a multi-ethnic staff. Community Infrastructure Repair Projects (CIRPs) will continue under this program as well, but focused exclusively on minority returns. Finally support for reform of the water and electricity sector will continue under this program.

The Business Development Program (BDP) will continue producing results in economic revitalization and refugee return. In FY 2001, the BDP program will continue to provide liquidity to the economy through the provision of loans to commercially viable private enterprises. Strong growth in loan demand is anticipated in FY 2001 as newly privatized companies with new management and business plans seek credit. In FY 2001, USAID will continue supporting the development of a sustainable market economy to ensure that Bosnia rejoins the European and global economy and attracts foreign investment. Technical assistance will focus on the final steps needed for the reform of the payments systems; strengthening of the banking sector (including direct assistance to selected commercial banks); the establishment of market institutions in a context of good corporate governance, a business confederation; and continued work on making Bosnia's public accounting and taxation systems more transparent and compliant with global standards. Success in these areas should help Bosnia move away from international donor finance and become reliant on private foreign and domestic investment to sustain economic growth. This portfolio is critical to market reform and making Bosnia self-sufficient

Democracy assistance in FY 2001 will continue to focus on strengthening independent media. The program will focus on those media outlets that have the greatest chance of becoming commercially viable and self-sufficient. Civil society activities will continue institution-building support for advocacy-oriented Bosnian NGOs that represent citizen views, initiatives, and projects. Governance activities will focus on legislative strengthening, and making parliament more accessible to citizens. Support for creation of a functioning and efficient Brcko district administration will finish at the end of FY 2001. Rule of law programs will continue to support courts, particularly through the provision of much needed training on civil and criminal legislation. Support for lawyers’ and judges’ associations will focus on capacity building with an eye to eventual self-sufficiency. Support for Bosnian management of the electoral process is slated to end in mid-2001.

All of the activities in the portfolio promote access, transparency and accountability. This "across the board" approach sends a strong message that corruption must be combated every day and will not be tolerated.


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ACTIVITY DATA SHEET

PROGRAM: Bosnia and Herzegovina
TITLE: Recovery from Crisis, 168-031
PLANNED FY 2000 OBLIGATION AND FUNDING SOURCE: $100,000,000 SEED
PROPOSED FY 2001 OBLIGATIONS AND FUNDING SOURCE: $90,000,000 SEED
STATUS: Continuing
INITIAL OBLIGATION: FY 1996 ESTIMATED COMPLETION DATE: FY 2002

Summary: This U.S. assistance program is striving for a stable, post-war Bosnia with a functioning and dynamic free-market economy, and a democratic society. Because of the broad nature of this objective, the beneficiaries include all residents of Bosnia and Herzegovina. More specifically, the Business Development Program benefits enterprise loan recipients and employees, the commercial banking sector. The Municipal Infrastructure and Services program has benefited over 1,500,000 Bosnians through repaired basic utility and other community services. Economic technical assistance programs directly benefit Ministries of Finance in the Federation and Republika Srpska (RS), the Central Bank, the Federation and RS banking agencies, business associations, local business consulting firms, private entrepreneurs and firms. Democracy assistance directly benefits political parties, voters, civic groups, Parliament, independent television, radio and newspapers, and media audiences.

Key Results: USAID activities are focused on four major results: (1) Restoring private sector productive capacity to restart production quickly and create immediate, self-sustaining employment; (2) Providing essential basic services to minority populations returning to their homes; (3) Establishing a policy and institutional framework conducive to the emergence of a market economy, by supporting rapid privatization, critical macroeconomic reforms, sound fiscal policies, and a viable banking system; and (4) Strengthening democratic institutions that promote a multi-ethnic society and political pluralism, by fostering an independent media, free and fair elections, a responsive and transparent government, citizen advocacy, and a professional, independent judiciary.

Performance and Prospects:

Economic Recovery: USAID's Business Development Program (BDP) provides quick-disbursing loans (average loan size $316,000) to private Bosnian businesses, enabling them to restart and expand production quickly and create immediate employment. Bosnian banks serve as agents, identifying viable enterprises, transferring funds to the borrower, monitoring loan implementation, and ensuring loan collections. An expert on-site team of U.S. bankers performs the final credit analysis and makes recommendations to USAID for decision. The program also offers business consulting services to improve financial management, marketing, strategic planning and manufacturing skills.

The BDP has made a major contribution to private sector reactivation in the form of 425 loans worth over $133 million, as of November 1999, primarily in the U.S. stabilization forces’ (U.S.-SFOR’s) sector, Sarajevo, Central Bosnia, and Western Repbulika Srpska. The majority of financing has been provided in the manufacturing, construction, wood products, processed food and agribusiness sectors. These loans provide employment to close to 18,000 Bosnians, including women, returning refugees and demobilized soldiers of all ethnic groups, contributing to the rapid improvement in employment rates in the Federation and increasingly in the Republika Srpska. Thousands more have found work in related business ventures (suppliers, vendors). A related bank-training program has introduced American bank lending and management concepts to more than 2,600 bankers, over 50% of whom are women. The present emphasis is on in-bank training in specific credit-related areas and is being provided to the 16 BDP agent banks.

The USAID Business Consulting program, working in partnership with the Business Finance loan operations has conducted over nearly 600 diagnostic reviews of potential borrowers. All loan recipients are regularly monitored and receive technical assistance focused on performance improvement in areas of strategic planning, financial management, marketing and manufacturing process improvement. As with any lending operation, BDP does experience delinquency and default when some borrowers reach the larger principal repayment stage. When a borrower falls behind, the program institutes an intensive "recovery" effort to help the company adjust its business plan to changing markets and to get back on track with loan payments. If the recovery intervention fails, or if the borrower is not willing to repay the loan, USAID institutes foreclosure and related court proceedings against the company in default. As of November 30, 1999 proceedings had been initiated against 60 companies.

According to data collected on 329 companies participating in the BDP, it is estimated that productivity of these enterprises increased about 30% between 1998 and 1999. In most of these firms, sales doubled in the first year of the loan with smaller but substantial (over 60%) increases occurring in the second and third years.

Minority Returns Support: USAID's Municipal Infrastructure and Services (MIS) program is meeting essential basic service needs in support of minority refugee returns and economic recovery, primarily in the U.S.-SFOR’s sector, Central Bosnia, Herzegovina Canton and Western Republika Srpska. Through this program, Bosnian contractors are repairing municipal electricity distribution systems, resurfacing roads, repairing bridges and municipal water systems, and rebuilding local schools and health facilities. Funds are also being used for a related Community Infrastructure Repair Program (CIRP), being implemented in partnership with local officials and SFOR troops in both the Federation and Republika Srpska. CIRP projects are designed to provide short-term employment while implementing high-impact community activities.

Over 212 projects worth $173 million are underway or completed in the energy, water, transportation, health, and education sectors. Construction activities have created more than 9,500 short-term jobs and some 17,000 people will be permanently employed working in reconstructed facilities or through the use of refurbished infrastructure. Over 500 CIRPs worth $32 million have been completed or are underway. In addition, over 18,500 children are attending schools repaired under MIS and approximately 25% of Bosnia's population are benefiting from USAID-repaired power systems.

The MIS program is extremely flexible and is able to support both refugee returns sponsored by the international community, as well as to respond to spontaneous returns. Well over 46,000 minority returnees were assisted through the MIS project in 1999.

USAID developed institutional strengthening activities for the water and electricity sectors. These are the sectors that have received the largest investment under the MIS program. The activities focus on making public utilities self-sustainable and able to operate within European Union (EU) standards. Technical assistance was provided in the fields of cost recovery, management, accounting and preparation of laws governing public utilities operations. All USAID institutional strengthening activities complement reforms being undertaken by the World Bank, EU and OHR at the entity and state level with corresponding institutional reform and organizational development goals, as well as privatization of public utilities at the municipal level.

Continuing its support for the Brcko arbitral decision, USAID reconstructed power lines, roads, water systems and schools in the Brcko Independent District. In addition, USAID reconstructed several high visibility projects that benefit all three ethnic groups in the District. These include a downtown market place and a public bus station. Since 1996, MIS has invested approximately $13.5 million in infrastructure and technical assistance in Brcko. Under its institutional strengthening activity, USAID is assisting in the establishment of a unified district water authority from three formerly ethnically divided water companies. The institutional strengthening assistance complements another USAID activity in Brcko, the provision of technical assistance to help in the formation of the new district government.

MIS projects in the Federation and the RS demonstrate the tangible benefits for municipalities that support the Dayton Accords. Before undertaking MIS projects, each municipality must sign a Memorandum of Understanding which publicly confirms the municipality's commitment to Dayton, such as freedom of movement for refugees and the surrender of publicly indicted war criminals. Municipalities that refuse to sign do not receive assistance. Any subsequent violations of terms prevent further USAID-funded assistance.

Economic Reform: Since 1996, the United States has implemented a comprehensive economic policy reform agenda to accelerate Bosnia's transition to a market economy in the context of post-war reconstruction. USAID continues to be the leader in supporting key financial and economic institutions implementing macroeconomic policy at the state level as well as in both entities. Technical assistance is provided in a range of critical areas for Bosnia's economic transformation and for the fight against corruption, such as abolition of the communist-era payments bureaus, public sector accounting reform, privatization, commercial law, banking reform, capital markets and corporate governance. The objective is to provide sound guidance to decision-makers at all levels of government to undertake defined responsibilities, smoothly transfer economic functions to the private sector, and regulate the new market economy fairly and transparently.

USAID advisors continued to help the Federation Banking Agency (FBA) and its counterpart in the RS, the Republika Srpska Banking Agency (RSBA). New professional FBA and RSBA staff have been trained in key areas such as bank supervision, audit, and asset/liability management, supervisory policies and procedures, as well as in anti-corruption (e.g., white collar crime, money laundering, and ethics). USAID training and technical assistance has enabled the agencies to examine all of the Federation banks and RS banks. Bank inspections are leading to the closure of problem banks as the sector is reformed. The FBA has used several types of reinforcement actions including monetary penalties. Functioning and effective banking supervision agencies have increased public confidence in the banking system. In another important achievement, the FBA has been self-financed since October 1998, operating on revenues generated through bank examination fees. The RSBA is expected to become self-financing in the next two-years.

USAID took the lead in the international community’s technical assistance and intervention in the abolition of the payment bureaus (PBs), a Yugoslav hold over which controls most economic transactions. Ethnic interest groups at the regional and entity levels largely control the PBs. Breaking their monopoly will lead to independent, objective and transparent financial transactions. The provision of financial services formerly provided by the PBs is a critical step in the development of a market oriented banking system. Since February 1999, USAID has been the chair of the International Advisory Group responsible for this effort. As a result of this undertaking, new corporate governance boards overseeing the dismantling of the PBs have been established in the two entities and relevant legislation has been introduced to remove the PB monopoly over payment services. For the first time, commercial banks are free to provide such services.

USAID technical assistance is helping Bosnian authorities implement a comprehensive privatization program and re-orient current commercial and non-banking financial laws towards a market economy. Key laws and amendments passed in the Federation in FY 1999 include the Law on Commercial Enterprises and amendments to the Law on Opening Balance Sheet of Enterprises and Banks, Law on Securities Commission and Law on Securities. USAID advisors prepared detailed regulations and instructions on methodology for preparing balance sheets, tender process for large companies, acceleration of land titling and public offering of shares. All were approved. In the Republika Srpska (RS), USAID advisors worked with the Directorate for Privatization. Privatization related laws that passed in the RS include the Law on Methodology of Opening Balance Sheet Preparation in Course of Privatization of State Capital in Banks, the Methodology of Valuation of Capital in Enterprises, and the Rules for Auction and Dutch Auction. As a result of USAID assistance, the first legal, small-scale privatization transactions took place with small enterprises, municipal business premises, company assets and apartments being sold via auctions, tenders, and direct sales. As of December 6, 1999 total privatization sales value stood at KM 39,698,793 (approximately $21.5 million) in privatization claims and cash combined. In the RS, USAID assistance allowed privatization to start with a small pilot cash auction of small enterprises. In both entities, public education efforts focused on advising difficult-to-reach displaced persons and refugees where and how to participate. Preparations for large sale privatization are moving forward well in the RS. Unfortunately, in the Federation, two major problems seemed resistant to improvement in moving along the large-scale privatization process: the formation of a Mostar canton agency and enterprise preparation. With no signs of improvements or change in political will to support large-scale privatization, in December 1999 USAID suspended privatization assistance to the Federation. If the Federation makes substantial progress in fulfilling past privatization obligations, consideration will be given to restarting the assistance.

During the reporting period, USAID technical assistance helped both entities adopt international accounting standards. The adoption and implementation of these standards helps Bosnia to be more competitive internationally and will also help to attract foreign investment. A comprehensive training program is underway in the Federation. Training will take place in the RS next year. A Share registry and a Securities Commission were established in the Federation, including procedures and regulations for overseeing investment funds and joint stock companies. Two conferences on privatization investment funds attracted domestic and foreign investor interest and advanced understanding of capital market operations for a much larger audience.

USAID-funded Treasury advisors have provided significant technical assistance and policy advice in the areas of budget, fiscal reform, tax policy and administration, external debt, and bank privatization/restructuring. The integrated USAID-U.S. Treasury activities in the PBs reform area included assistance in the creation of new treasuries at both state and entity levels and the initiation of a new project on public sector accounting reform at the end of fiscal year 1999. USAID has worked with other donors on the development of a tax administration modernization initiative (currently under discussion).

Democratic Reform: The United States is working to build strong enduring democratic institutions in a just and multi-ethnic society. The USAID-funded democratic reform agenda gives top priority to achieving the following results: (1) viable and independent media offering consistent, objective, and balanced information to all citizens; (2) free and fair elections with a pluralistic party structure and high voter participation; (3) a pro-democratic political leadership governing in response to a vibrant civil society; and (4) a professional and independent judiciary operating in an environment governed by the rule of law.

Continued manipulation of information flow by nationalist political leaders and the lack of an effective regulatory environment remain major impediments to enabling independent media in Bosnia to thrive. Throughout 1999, USAID continued its two-pronged approach to developing the local media through assistance to broadcast media and assistance to print outlets.

A comprehensive package of assistance focused on building the skills of seven independent television and five radio stations. In June 1999, USAID, through Internews, provided technical assistance to 86 TV and radio stations from both the Federation and the RS on the chartering of the Association of Electronic Media. In one of the few open ballots held anywhere in Bosnia, the entire membership voted for a board of directors resulting in fair representation of Bosniak, Serb and Croat broadcasters, along with equitable representation of radio and television organizations. All Support for East European Democracy (SEED)-supported production companies were profitable at the conclusion of their production season with breathing room to start next season’s production. Seven local independent TV stations were supported in producing in-depth reports based on professional investigative journalism. Nine reports were produced which are scheduled to be broadcast in FY 2000. The aim of the reports was to inform the public and allow them to become more involved in the political process by demanding accountability from elected officials. In order to satisfy increasing needs for training in the area of news production, Internews produced illustrative videotape materials in the local language. The Open Broadcast network’s (OBN) news and information programming continues to be praised for its impartiality. USAID advisors are working with OBN management on a business plan to help improve the network’s commercial potential.

In the print media area, assistance was focused on improving the quality of ONASA, the independent news wire service. Hardware improvements and the installation of sophisticated software have made ONASA an agency as advanced and competitive as any of its size elsewhere in Europe. In order to establish ONASA as a countrywide news Agency, USAID helped it to expand to Banja Luka and to increase the production of stories in the RS. An in-house training program for journalists also increased the quality of the news service, resulting in noticeably higher-quality reporting on business, economic, cultural and social issues.

One of the greatest challenges to developing independent and viable media is the evident lack of management skills and financial capital of the local media outlets. This, in turn, creates a destructive "donor dependency". To address this problem, USAID provided in-house training and seminars and participant training for print media managers with an aim to creating newspapers as viable business concerns. Through this training, ONASA and Dani, a weekly magazine, adopted viable business plans. Republika Srpska (RS) newspaper, Nezavisne Novine, increased its advertising revenue to more than $50,000 in just eight months. The Federation weekly magazine, Start, and the RS weekly magazine, Panorama, created a joint promotional campaign which gave them more credibility across entities and increased their classified advertising.

Municipal elections originally scheduled for September 1999 were postponed to April 2000 making 1999 the first year since the signing of the peace accords that there was no election. The absence of elections provided the citizens and political leaders with a needed respite from seemingly nonstop electoral competition. This allowed political parties, with USAID assistance, to focus on important party building activities.

USAID, through National Democratic Institute (NDI), assisted the most democratically oriented political parties to begin to position themselves strategically in order to consolidate their electoral gains and have a greater impact. USAID provided them with training in message development, media relations voter contact, strategic planning and volunteer recruitment. These parties are beginning to see their futures in terms of the entire territory of Bosnia rather than the more narrowly defined two entities. Activities continued to focus on the moderate Sloga coalition and the Democratic Party of Bijeljina in the RS, and the Social Democratic Party and the New Croat Initiative in the Federation. Approximately 350 individuals from 200 separate municipal party branches in the Federation alone benefited from each of the training cycles. Party branches in nearly all areas of the RS were covered, but particular attention was paid to developing political skills in the Eastern RS branches of Sloga. USAID also supported the training of elected representatives in the Federation and RS legislatures on their roles and responsibilities in a multiparty democracy. USAID assistance in this area serves to promote accountability of the elected members of Parliament to their respective political parties and constituents, and to develop their capacity to legislate.

In 1999, USAID began a new technical support program with the Organization for Security and Cooperation in Europe. (OSCE), focusing on the important transition in the administration of elections to Bosnian professionals and institutions. USAID, through IFES, provided expert advice on the drafting of the permanent election law and provided various electoral models to help the drafting process. The new draft election law was made public by the OSCE and was forwarded to the Parliament on October 1999. SEED assistance was also instrumental in the OSCE’s public education effort on the new election law, including developing a strategy for parliamentary acceptance of the law.

In 1999 USAID, through ABA CEELI, continued support to cantonal courts in order to establish unified internal court rules for all ten Federation cantonal courts. In summer 1999, USAID, in cooperation with the OSCE, organized a study tour to Sweden where representatives of the Ministries of Justice and judges from both entities improved their knowledge of internal court rules and effective trial management. The judges have formed an inter-entity committee and offered an impressive list of recommendations and comments in the field of judicial reform.

Civic education plays a vital role in encouraging increased citizen participation in the political process. Through an extensive rural education network approximately 40,000 citizens in rural areas were provided with basic information on privatization, thereby increasing transparency, inclusiveness, and understanding of a complex and sensitive topic. USAID also supported work at the community level by assisting communities to identify, prioritize, and meet their needs through local government. Community groups were assisted to dialogue with elected local officials and over 200 separate community initiatives were undertaken, more than a quarter of which resulted in successful completion and positive response from local officials. USAID also supported more than 30 training events in cities on both sides of the inter-entity boundary line which were conducted successfully for nearly 550 human rights advocates, judges, prosecutors, labor inspectors and NGO and union representatives from all three ethnic groups.

Cross-Cutting Activities: Since 1995, USAID's participant training program has sent well over 500 (35% women) mid and senior level officials, business leaders, and citizen activists from both entities to the United States and third countries for intensive short-term training. Training topics have ranged from privatization to external debt to media development. Each training program is designed to directly complement USAID activities in support of economic growth and reform, infrastructure rehabilitation, and democracy building in Bosnia. Participants are recruited and selected competitively from the professional and functional levels identified as critical to effecting change in institutions with which USAID is working.

Today, there are at least 280 national NGOs operating in Bosnia, many of which are now providing the trauma counseling and humanitarian assistance once handled by the international NGO community. The skill and experience of NGOs in promoting community development while meeting priority construction needs is a valuable asset.

Since 1996, CARE has received $4.0 million from USAID for its EDUCATE project. In 1999, CARE reconstructed a transformer station and installed new power lines in Vrtoce, an area that is seeing minority returns. CARE also built a new 200-student kindergarten in the city of Bihac.

Save the Children implements a program in Bosnia to establish community based pre-schools and provide training for local teachers. Since 1995, 440 sites have been opened and over 21,400 children enrolled. Approximately 60% of these sites are now self-sustainable. In 1999, Save the Children facilitated the formation of 92 playgroups at 47 sites in 22 municipalities.

Other Donors Programs: The Municipal Infrastructure and Services program is closely coordinated with the infrastructure rehabilitation efforts of the World Bank, the European Union (EU), and other multi or bilateral organizations. The MIS program also works very closely with the EU, Office of the High Representative, and World Bank in promoting institutional sector reform in the water and energy sectors. In both sectors, donor unity plays a major role in encouraging reforms to make the sectors eligible for much-needed loans and eventual utility privatization. USAID’s Business Development Program complements other donor commercial lending programs. USAID's economic advisors actively coordinate with the International Monetary Fund, the European Bank for Reconstruction and Development, and World Bank to ensure a common donor approach on promoting critical reforms. USAID's leadership of the Private Sector Development Task Force (formerly the Industry Sector Task Force) has helped maintain the necessary momentum to get privatization underway in Bosnia. The Task Force is currently formalizing a new initiative to establish an employer confederation and produced a comprehensive list of impediments to private sector development with the aim of reducing or eliminating them. USAID’s leads the international community’s efforts to transform the payment bureaus, and has been able to leverage other donor funds and resources for this major undertaking. In the democracy arena, USAID works closely with other donors, primarily the OSCE, the Office of the High Representative, the EU, Council of Europe, other bilateral, and private organizations, in efforts to support independent media, political party development, judicial reform, and civil society building.

Principal Contractors, Grantees, or Agencies: USAID implements activities under this objective through private, U.S. and local companies such as: the Ralph M. Parsons Company and local construction firms; U.S. consulting firms such as the Price-Waterhouse-Coopers, East/West Management Institute, Overseas Strategic Consulting, Deloitte-Touche-Tohmatsu and the Barents Group; U.S.-based and local NGOs, such as the International Foundation for Election Systems, NDI, the American Bar Association, Internews, International Research and Exchanges Board, American ORT (the Democracy Network program implementer), CARE, and Save the Children. Other U.S. agencies implement complementary programs under Support for East European Democracy (SEED) Act auspices; e.g., the Treasury Department, State Department, U.S. Trade and Development Agency, U.S. Department of Justice, and the Bureau of Public Diplomacy

Selected Performance Measures: Due to the special nature of this program, USAID does not apply the Agency’s usual, measurement methodology for tracking program performance and progress. For instance, annual targets are not established although information on selected indicators is collected as a means to provide periodic reports throughout the year on U.S. assistance to Bosnia. In previous Congressional Presentations, the following were identified as among those selected indicators.

Real GDP growth.

Unemployment rate.

Number of jobs created through USAID programs.

Number of BDP Agent banks taking on own lending.

Number of residents provided with repaired infrastructure and restored services.

Number of residents returning to their communities.

Financial system providing financing to private entrepreneurs.

Private sector investment in industry.

Number and effectiveness of local NGOs promoting citizen concerns.

Public confidence in the courts.

Self-generated revenue of cantons and municipalities.

Political party platforms are communicated to citizens and reflect citizen input.

Key USAID contributions are demonstrated in two indicators from this list: "number of jobs created through USAID programs," and "number and effectiveness of local NGOs."

Indicator 1996 1997 1998 1999

Number of jobs created through USAID programs:

Municipal Infrastructure

Short-term jobs*

1,982 4,565 3,707 3,770

Direct beneficiaries

310,000 290,000 388,000 300,000

Minority beneficiaries**

--

--

70,000

57,000

Effectiveness of local NGOs promoting citizen concerns (NGO Sustainability Index rating)***

-- -- 5.6 5.3

__

*In a difficult, data collection environment such as Bosnia’s, figures are constantly being updated and revised. For this reason, there may be some small variation between the figures reported here and those reported in earlier years. The figures reported here are calendar year figures. For purposes of this report, a short-term job is assumed to be three months of employment.

**Data on the number of ethnic minority returnees benefiting from the Municipal Infrastructure and Services Program were not maintained until 1998.

***USAID uses the NGO Sustainability Index as a proxy for improved NGO effectiveness. On a scale of one to seven, one is the best rating, and seven is the worst. The 1998 and 1999 ratings are not strictly comparable as the 1999 rating contains more variables than the 1998 rating.

U.S. Finance Table

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Last Updated on: February 01, 2001