Foreign Aid in Bosnia 2003-2013

Has it reduced poverty?

Bosnian War 1992-95

Fall of Communism

Three sides

Over 100,000 deaths

Internal partition of the state

Massive infrastructural damage

Bosnia: Socio-economic Picture

Large mineral resources

Over $5 billion in FDI (2003-2011)

GDP per capita: $8300 (2012)

Economy weaker than in 1991

19.5% classified as „poor‟

Women and rural dwellers vulnerable

Classed with High Human Dev (81st)

Percentage of population below poverty line (UNDP)

0

5

10

15

20

25

30

Entities

FBiH

RS

Who Aids Bosnia?: Bilateral

EU: largest (€100m annually*)

USA: civil society, market oriented economic growth ($1.5b)

Sweden, Germany, Norway, Japan, Italy, Switzerland

Total: $8 billion

Who Aids Bosnia?: Multilateral

UNDP: environment, water, youth, employment ($25m)

Unicef: immunizations, children with disabilities

World Bank, IMF

International NGOs: GAVI, IDA, YBI, Amnesty International, USIP, Save the Children, CARE, Red Cross

Foreign Assistance Disbursements by Fiscal Year

0

5

10

15

20

25

30

35

2009 2010 2011 2012 2013

Disbursements (US$)

Disbursements

(US$)

Category Disbursement Details,2013

0

2

4

6

8

10

12

US$ Millions

US$ Millions

Eradicate poverty and hunger

Promote business, monitor budgets

Improved education

Primary to Secondary transition

Gender equality

Education system

Improve health

Technical and medical aid to hospitals

Environmental Sustainability

Creation of EPA, better laws, land-use policy

Justice sector reform

Donating to initiatives

Stability in the banking sector

Financial and technical assistance

Fiscal policy reform

Energy sector reform

Playing a lead donor role

Election monitoring

Supporting local government

Lobbying efforts and local civil initiatives

Provides training and technical assistance in;

Youth program development,

Conflict management,

Youth civic engagement,

Helping youths find employment,

Repairing public buildings and playgrounds, and

Promoting youth-led environmental initiatives.

Aid Successes

Strengthening and modernization of public administration systems

Strengthening of State institutions

Centralised defence command and control structures

Roads, power supply, telecommunications, water supplies, health and education infrastructure back to near pre-war levels

“Growth fuelled by substantial donor aid” (IMF)

Areas of little success

Little development of the entrepreneurial sector

Poor structural reforms

High levels of corruption

Child mortality still short of MDGs

60% leakage in water supply

Low monthly wages

Ranks very low of Global Competitiveness indices (WEF)

Infant Mortality Rate

0

5

10

15

20

25

(deaths/1,000 live births)

Infant mortality rate (deaths/1,000 live births)

Literacy Rate

98.9

99

99.1

99.2

99.3

99.4

99.5

99.6

99.7

99.8

99.9

2000 2008 2010 2012

% OF PEOPLE AGES 15-24

LITERACY RATE - % OF PEOPLE AGES 15-24

Poverty rate (World Bank)

0

5

10

15

20

25

2000 2004 2007

% of Population

% of Population

GDP per capitaWorld Bank (US$ in millions)

0.00

2,000.00

4,000.00

6,000.00

8,000.00

10,000.00

12,000.00

14,000.00

16,000.00

2003 2006 2009 2012

Croatia

Bosnia

Serbia

Conclusion

No way of knowing what rates would be like without the massive international aid donated

Infant Mortality and Poverty rates have (by most accounts) decreased

GDP per capita is rising

I conclude that the injection of aid probably has had a positive effect, certainly has not had a noticeable negative effect

Opinion remains divided