UMCOR Bosnia and Herzegovina

Economic Development

Income Generation Activities

Income generation grants and subsidized loans are disbursed to members of minority returnee communities to enable them to make a sustained return to their pre-war communities. People, who would otherwise fail to qualify for a loan from a conventional source, such as a bank or a micro-credit organization, are able to acquire the financial means to set up small businesses, purchase equipment, machinery and tools, buy livestock or seed and generally create the means to support themselves and their families in their return. The grants and subsidized loans are awarded according to certain criteria and repayment varies according to the situation of each beneficiary. Some loans are repaid in-kind with either products or services to the community, while others are partially repaid in cash with minimal interest. Assistance is focused on vulnerable minority returnees, primarily in rural areas, with an emphasis on female beneficiaries, as well as vulnerable majority returnees or members of the domicile population.

Community Economic Action Strategies (CEAS)

The CEAS program targets underserved returnee communities that are eager to improve their situation through joint community economic action and market-oriented production.

When individual producers work together in a cooperative or an association, market opportunities increase. These formal organizations allow micro-producers to enter the market collectively, thereby reducing material and administrative costs and making themselves more attractive to potential buyers. These associations and cooperatives are known as CEAS partners. This program is seen as the second step to support income generation for members of returnee communities.

In 2003, UMCOR BiH facilitated the creation of six agricultural cooperatives and associations, producing milk, berries and medicinal herbs. During 2004, UMCOR will disburse 45 community grants to business, agriculture and returnee associations, cooperatives and other associations selected to become UMCOR partners. UMCOR continues to work with groups of interested individuals to form new associations or cooperatives and to provide training and other technical assistance.

In the long term, increased household income generated through such cooperatives and associations can increase the overall economic strength of the community, sustain returns and contribute to a stable multi-ethnic society.

Technical assistance to build LNGOs

Small grants were disbursed to 20 existing organizations in 2003. UMCOR provided both received training and technical assistance to improve the economic development of the beneficiaries and communities served by these organizations. The aim is to develop an organization's core skills and capabilities, including leadership, management, finance, fundraising, programs and evaluation, thereby assisting the organization to build its effectiveness and sustainability. This facilitates the identification of issues and helps groups to deal with them while providing the insights, knowledge and experience needed to solve problems and implement change. It is vitally important in BiH to transmit knowledge and experience to local NGOs that will enable them to become sustainable in their own right and continue development work long after international organizations have left.

The community organizations, small business associations and cooperatives assisted by UMCOR range from a women's association of greenhouse producers in Prijedor to an association of small businesses in Stolac which provides market linkage and advocacy support to returnee business people.

Updated May 2004