USAID. BUR. FOR POLICY AND PROGRAM COORDINATION. CENTER FOR DEVELOPMENT INFORMATION AND EVALUATION (CDIE)
This study examines how USAID and other donors are trying to help reconcile ethnic conflicts in Bosnia Herzegovina and, to a lesser extent, Croatia -- two countries that suffered vicious ethnic conflict after declaring their independence from Yugoslavia earlier this decade.
Augenbraun, Eliene|Feld, Karl · 1999

Abstract
It describes the ethnic situations before the 1991-95 wars of Yugoslav secession and analyzes the approaches that have succeeded since in reaching across the current ethnic divisions, particularly at the community level. The study focuses on three broad categories of projects and programs: private sector reactivation through support to microenterprises and small businesses, financial intermediaries, business associations, and basic utilities and infrastructure; support for alternative, i.e., politically independent media; and civil society and NGO strengthening. One general fact emerged clearly from the study: all ethnic factions in the communities of Bosnia Herzegovina and Croatia have a strong and active desire for an enduring peace. Specific lessons learned are as follows: (1) Small private business organizations, financial intermediaries, professional associations, and businesses that have an integrated leadership and organizational structure promote interethnic cooperation. Ethnically blind business behavior promotes cooperation between factions. Building associations, companies, or linkages that promote trade, commerce, or marketing with other associations -- particularly across ethnic geographic boundaries -- help break down restrictions on trade and communications. Removing factional leaders from the situational, geographic, and political conditions can also help break down barriers. (2) The economic viability and income potential of enterprises is linked directly to their success in attracting and retaining interethnic members. Having boards made up of various ethnic factions helps ensure that each group's interests will be represented. Production chains that rely on various ethnic minorities create permanent links between ethnic groups, as long as the enterprises are successful. (3) A long-term media strategy that promotes open and credible alternative sources of news must concentrate on building democratic, sustainable media with professional journalists. Permanent communication networks are essential for initiating and maintaining linkages, especially those channels that cannot be controlled by outside political forces. (4) A highly nationalistic, strongly separatist political leadership is one of the greatest obstacles to reconciliation, at both the community and national levels. The establishment of ethnically based states from the former Yugoslavia and strong nationalistic political leadership has led to political and economic interests that are rooted in the continued separation. These leaders create barriers through control of policy, regulations, and laws. More importantly, control by these leaders extends down to cities, towns, and even the village level. (Author abstract, modified)
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USAID DEC