Echoes of Donors' Conference

All Satisfied, Waiting for Money

AIM Banja Luka, 25 May, 1999

After the donors' conference for Bosnia & Herzegovina, its politicians sighed with relief. Nothing so bad but it might have been worse - those who are fond of proverbs might say. Thanks to the unexpected generosity of the donors, out of one billion three hundred million of the announced aid, B&H will receive one billion and 52 million.

Marko Asanin, minister of civilian affairs and communications in B&H Council of Ministers, having returned from Brussels specified that the earmarked funds were intended for reconstruction and construction of vital infrastructure facilities. "When Republika Srpska is concerned, there is a possibility that it will get additional funds due to the damage its economy is suffering because of NATO attacks against the Federal Republic of Yugoslavia", says Asanin. Prime minister Milorad Dodik declared that on account of the damage caused by NATO intervention in FRY, B&H would receive 70 million dollars, 50 per cent of which would go to RS. Speaking of the allocated funds, Dodik stressed that the funds had not strictly been earmarked and that RS needed to elaborate projects with the donors in order to implement them as soon as possible. "That is the reason why the government of RS will in the forthcoming period intensify contacts with 45 donor countries and 30 international organizations which participated at the donors' conference, in order to create a favourable situation for RS", says prime minister Dodik. For Dodik, this donors' conference was the last significant opportunity of the international community to set right the earlier imbalance in distribution of funds which prevented RS to play a more active role in reconstruction. "Out of the total of the proposed funds at four previous conferences for B&H, 549 million dollars or 11.52 per cent were directed to RS, and out of that sum only one third was actually implemented", Dodik claims.

Svetozar Mihajlovic, co-chairman in B&H Council of Ministers, believes that RS, due to the crisis in FRY and the inflicted damage, should get more donors' funds. "The donors did not specifically condition realization of the donations, but RS is expected to continue democratic processes", says Mihajlovic, adding that this also refers to B&H Federation. Both Asanin and Mihajlovic stress that at the conference special attention was devoted to RS and that support was once more offered to the cabinet of prime minister Dodik.

American envoy for B&H Robert Gelbard also strongly advocated offering financial support to revitalization of the budget of RS, but he conditioned allocation of new aid with increased transparency of the policy of the government of RS concerning return of the displaced population and operation of the joint institutions. Prime minister Dodik on the other hand warned that there were still retrograde forces present in RS which tended to rule the people by fear of other nations and which tended to pursue the policy of isolationism under the pretext of protection of national interests. "With such forces we are still fighting a political internal battle", Dodik concluded. As a guest of TV BN in Bijeljina, chairman of the National Assembly of RS Petar Djokic stressed that it would not be simple to carry out all the programs, because there would be political demands to realize the approved. It is not clear what political demands Djokic had in mind but it appears that there is still no difference between the undertaken obligations and politics.

High Representative for B&H Carlos Westendorp declared that all the presents to B&H had not been given randomly. Each donation is conditioned at least by three strict criteria: return of refugees and displaced persons, reforms in all spheres, and moderateness and cooperation between the entities and their political leaders. One of the priority conditions will be reform of the economic, judicial and police system. A significant part of the Brussels donations, as it was hinted, will be allocated for disentanglement of the Mostar tangle and establishment of the district of Brcko, which the authorities of RS are treating as any other city in it and as its integral part.

The international community has made it clear what it is offering and what it expects in return. Only cooperativeness of B&H authorities can accelerate actual reception of the promised aid. Considerable amount of strength and good will will be necessary for that. Between absolute absence of cooperativeness which was attributed to the previous government from Pale due to which RS was deprived of significant financial means and political support, and excessive cooperativeness which is attributed to Dodik's cabinet, nobody in RS has found the right middle. "And I agree that the present tempo cannot and should not be slowed down or the price which will have to be paid will be much higher", declared High Representative of B&H Carlos Westendorp in Brussels and expressed concern because of "dramatic financial situation in RS".

Westendorp is right in his assessment. The total damage done to the economy of RS is enormous. Minister of industry and technology in the government of RS Djuradj Banjac confirmed that it reached the sum of about 700 million marks. Economic enterprises, as Banjac said, suffer damage of about two million marks a day. Due to such situation and lack of business deals, machines had to be turned off in many industrial enterprises, and the workers were sent on forced leave. This destiny has already befallen about 30 thousand industrial workers, and since consequences are felt in other spheres too, it is to be expected that 50 thousand out of the total of 180 thousand employed persons in RS will be left without their jobs.

The economy of RS still largely depends on the economy of FRY, which will be an almost insurmountable obstacle to its future rehabilitation. When one knows that the political situation is also greatly conditioned by that in FRY, it becomes clear why the donors in Brussels were generous because unstable B&H, both entities inclusive, is not at all acceptable. It will be bad, however, if the sum of earmarked donations is going to be considered a success in itself and if a habit is created to live off them, and nothing is done to move B&H from the worst but one developed country in Europe.

Mladen Milosavljevic

(AIM)