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UMCOR Bosnia and Herzegovina

BiH News

Joint Advocacy Statement on Funding for Bosnia and Herzegovina

21 March 2003

Signed by

UMCOR NGO
World Vision

As representatives of the major US international PVOs in Bosnia and Herzegovina we feel that we must express our serious concern to the United States Congress and all those involved with the United States allocation of foreign humanitarian and development funding at the highly significant reduction in United States assistance for reconstruction, sustainability and development aid in Bosnia and Herzegovina.

Bosnia and Herzegovina faces a serious crisis: 2002 saw the last year of funding from the US State department via the Bureau of Populations, Refugees and Migration (BPRM). The USAID budget has been substantially reduced, and last year, Bosnia and Herzegovina was also passed over on the USDA list of target countries for PL 480 assistance. There are many unresolved issues on the horizon such as the potential mass return to Bosnia and Herzegovina of up to 160,000 Bosnian Serb refugees currently in Serbia and Montenegro. There is under-funding through every sector in the country - the consequences for future stability and development are serious.

We recognise that a transition must be made at some point from an aid driven to a self-sufficient economy and with United States assistance this transition is already well underway: exports are up, imports are down, displaced minorities are returning in increasing numbers and the rule of law is taking effect in ever greater areas of this beleaguered country. However, Bosnia and Herzegovina is developing at different rates dependant upon geopolitical and demographic factors which means it is essential that humanitarian assistance levels be maintained to respond to the continuing emergencies, which threaten to destabilize the peace process and the Dayton Peace Accords, which the United States brokered in 1995. We feel that it is important the correct assistance is given to build up a viable economy and United States Government funding has supported many excellent interventions in this area.

However, there remains much to be done. The problems of Bosnia and Herzegovina must be viewed in a regional context and the problems and actions of its neighbors impact directly on it. Serbia and Montenegro are taking strides to arrive at a durable solution for the 320,000 refugees currently within its borders (including 160,000 from Bosnia and Herzegovina). Three years ago a decrease in assistance to returnees caused an upsurge in return numbers, desperate returnees had no shelter, food or economic opportunity – in this case a crisis was averted by swift intervention on the part of NGOs, the UN and donors such as the US Government. Some of the measures now proposed such as the withdrawal of refugee status to Bosnian Serbs currently in Serbia and Montenegro will result in even larger refugee flows returning to devastated and economically depressed areas within Bosnia and Herzegovina only this time the support mechanisms will not be there. The affect of this return when combined with a lack of governmental social support and simmering resentment from the recent war could very well have tragic results. An overburdening of already stretched state resources and increased competition for scarce job opportunities could easily lead to renewed ethnic tensions, inter ethnic conflict and a breakdown in security in this strategically important part of Europe. This would reverse all the progress towards stability achieved since the Dayton Peace Accords for which the US and its partners worked so hard.

As the High Representative (OHR) Paddy Ashdown emphasized in his New Year address: "We must replace the prospect of economic collapse with the prospect of economic viability and prosperity." Unfortunately the prospect of economic collapse with all the inherent instability is still a real one.

The 2003 US proposed aid budget has been reduced by 6 million USD from 2002; next year will likely see proposals for further cuts. US humanitarian structures such as the aforementioned USAID, USDA and BPRM are either ceasing to work with PVOs in Bosnia and Herzegovina or are scaling back hugely.

The United States has invested much of its energy and resources in Bosnia and Herzegovina to bring it from the depths of fratricidal war to its current state of a developing peace. It is vital for the stability of this emerging regional democracy in an increasingly unstable world that the US retains rather than relinquishes its role of leading the aid efforts. We therefore urge the United States Government to increase its funding for PVO aid efforts in the fiscal years 2003 and 2004 through the existing US based assistance structures or new initiatives.

The Government of Bosnia and Herzegovina, the United Nations and the European Union are already shouldering their part of the burden. We feel that it is equally important that the US is seen by the rest of the world also to continue to assist the transition and ensuring that Bosnia and Herzegovina one day takes it's rightful place among the stable, pluralistic and prosperous members of the international community.