By World Bank, Wei Ding, Christine Wallich
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Extra info for Bosnia and Herzegovina: toward economic recovery
Compliance with the military aspects of the accords has been good. Despite initial difficulties and inclement winter conditions, NATO's Implementation Forces were deployed on the ground. The withdrawal of the three parties' forces behind a zone of separation took place close to schedule, as did the removal of heavy weapons. Most prisoners have been exchanged and the demobilization of soldiers is under way. Progress has been slower on the civilian side. This is to be expected given the complexity of the tasks to be achieved: the organization of free and fair elections, protection of human rights, establishment of a fair and effective police force, building of democratic and pluralistic institutions, return of displaced persons and refugees, and provision of humanitarian and reconstruction assistance.
This policy not only reduces government expenditure, therefore reducing taxing requirements, it also allows for more active citizen participation in the management of public services. Well-designed social pricing mechanisms that address the needs of the poor (such as lifeline pricing, in-kind transfers, or cash transfers) should be an integral part of this cost recovery policy. Intergovernmental Grants and Revenue Redistribution. Whatever design is eventually adopted, some imbalance between revenue and expenditure within fiscal units is inevitable.
To keep the process of building the Federation on track, a two-day summit was held in Rome in mid-February at which the presidents of Bosnia-Herzegovina, the Republic of Croatia, and the Federal Republic of Yugoslavia reaffirmed their commitment to the Dayton-Paris peace agreement. On March 18, 1996, another agreement between the three parties reaffirmed their intention to implement the peace agreement and committed themselves to specific measures for realizing that objective. The war has shattered the economy and severely curtailed productive activity.
Bosnia and Herzegovina: toward economic recovery by World Bank, Wei Ding, Christine Wallich