Srebrenica Regional Srebrenica Regional Recovery Programme Recovery Programme

(SRRP)(SRRP)

Economic Development Economic Development ComponentComponent

20042004Guy Dionne, Guy Dionne,

Economic Development CoordinatorEconomic Development Coordinator

Mokhtar Ahdouga, Mokhtar Ahdouga,

Deputy Economic Development CoordinatorDeputy Economic Development Coordinator

SRRP Response …SRRP Response …

Local Local GovernmentGovernment

Economic Economic DevelopmentDevelopment

Three-years, multi-sector Three-years, multi-sector programme based on four pillars:programme based on four pillars:

Civil SocietyCivil Society InfrastructureInfrastructure

Due to the specifics of the region, Due to the specifics of the region, GENDER is identified as a cross-GENDER is identified as a cross-cutting issue of particular cutting issue of particular importance.importance.

Problem StatementProblem Statement

• Demand-deficient unemployment Demand-deficient unemployment

• As the regional economy moved into recession, As the regional economy moved into recession, consumer demand has fallen. consumer demand has fallen.

• Many firms were unable to sell their outputs.Many firms were unable to sell their outputs.

• Cut back on production Cut back on production

• Cut back on the amount of labour they employ.Cut back on the amount of labour they employ.

• Some firms shut down operation.Some firms shut down operation.

SRRP Economic SRRP Economic Development Response Development Response

……

Overall Objective:Overall Objective:

To create conditions To create conditions

for sustainable economic growthfor sustainable economic growth

aimed at reducing poverty.aimed at reducing poverty.

SRRP Economic SRRP Economic Development Response Development Response

……

•The Economic Development ComponentThe Economic Development Component• commits itself to commits itself to four economic sectorsfour economic sectors• in designing and in designing and • implementing implementing • microenterprise projects:microenterprise projects:

•MicrofinanceMicrofinance

•Business Development Business Development ServicesServices  

•AgricultureAgriculture

•Sustainable Use of Sustainable Use of EnvironmentEnvironment

Economic Development Economic Development ActivitiesActivities

Microfinance:1. Portfolio Management2. Supervision3. Capitalization4. Technical Feedback5. Microcredit Training to Municipal Authorities

TARGET BENEFICIARIES:TARGET BENEFICIARIES:

Women micro-entrepreneursWomen micro-entrepreneurs

Economic Development Economic Development ActivitiesActivities

Business Development Services:

1. Incubator Start-up2. Accounting Training3. Financial Management Training4. Youth enterprise coaching5. Asset Recapitalization Grants6. Clusters of Growth Identification

TARGET BENEFICIARIES:TARGET BENEFICIARIES:

Micro, Small and Medium Micro, Small and Medium EnterprisesEnterprises

Economic Development Economic Development ActivitiesActivities

Agriculture:1. Sub-sector Appraisal2. Technical Training3. Targeted input supplies Grants4. Farming Accounting5. Financial Modelling6. Support to Associations/ cooperatives7. Marketing

TARGET BENEFICIARIES:TARGET BENEFICIARIES:

Micro, Small Agricultural Micro, Small Agricultural ProducersProducers

Economic Development Economic Development ActivitiesActivities

Sustainable Use of the Environment:

1. Environmental Awareness Training2. Municipal Forestry Conservation and Enforcement

Reform3. Tree Plantation4. River Protection5. Regional Waste Disposal Site Creation

TARGET BENEFICIARIES:TARGET BENEFICIARIES:Citizens, Entrepreneurs & Citizens, Entrepreneurs &

Agricultural ProducersAgricultural Producers

Beneficiary Target Beneficiary Target & Budget Allocation & Budget Allocation

20042004

MicrofinanceMicrofinance $ 161,000$ 161,000 248248

Business Development Business Development Services Services 

$ 506,000$ 506,000 678678

AgricultureAgriculture $ 304,000$ 304,000 1,0291,029

Sustainable Use of Sustainable Use of EnvironmentEnvironment

$ 45,000$ 45,000 160160

TotalTotal $ $ 1,016,0001,016,000

2,1152,115

Economic development Economic development (ED) or (ED) or

Social Welfare???Social Welfare???

Prerequisites of a ED Prerequisites of a ED ProgrammeProgramme

• Focus your design instead of Focus your design instead of stating or make-up pretty.stating or make-up pretty.

• Adequate Timeframe.Adequate Timeframe.• Sufficient funding available Sufficient funding available

at start-up.at start-up.• Integrated approach that will Integrated approach that will

leave the EDP to structure leave the EDP to structure itself before draining out itself before draining out funds.funds.

• Various blend of clients from Various blend of clients from all social classes.all social classes.

• Balancing Political and Balancing Political and Economic objectives.Economic objectives.

• Balancing short and long-Balancing short and long-term objectives.term objectives.

Policy FeedbackPolicy FeedbackMarketing ChannelsMarketing ChannelsAncillary ServicesAncillary Services

Inclusion of the poor and Inclusion of the poor and multiplier effect targeting multiplier effect targeting to other client segmentsto other client segments

Poorest of the poor Poorest of the poor and Income Generationand Income Generation

Inefficient Good Will and Inefficient Good Will and Without Social Welfare Without Social Welfare

(SW)(SW)

Missing both Development Missing both Development and SWand SW

• Adhoc funding without Adhoc funding without strategy.strategy.

• Short-term objectives.Short-term objectives.• Limited time and funding for Limited time and funding for

execution.execution.• Lack of ownership of Lack of ownership of

programme.programme.• Un-enhanced capacity of the Un-enhanced capacity of the

state and pro-poor policy state and pro-poor policy vacuums.vacuums.

• Underserved aging population.Underserved aging population.• Political objectives.Political objectives.• Ethnic segregation of donor Ethnic segregation of donor

funded activities avoiding funded activities avoiding tackling poverty vicious circles.tackling poverty vicious circles.

Great NGOs Great NGOs and Agenciesand AgenciesWith impededWith impeded social welfaresocial welfare

reformsreforms

Time goes onTime goes onAssets depletionAssets depletionGreater PovertyGreater Poverty

to tackleto tackle

InflexibleInflexiblePro-poorPro-poor

Donor FundingDonor FundingAgendaAgenda

Where do we stand?Where do we stand?

Economic Economic DevelopmentDevelopment

Social WelfareSocial Welfare

Critical Mass servedCritical Mass served

Deep rooted solutionsDeep rooted solutions

Executed wished listExecuted wished list