Overview

This regional initiative aims to provide the Governments of South East Europe, the donor community involved in the region, and in particular the World Bank with the capacity to carry out social analyses, promote institution building, and launch pilot projects to address inter-ethnic tensions and social cohesion issues in South East Europe. 

Background

The donors' previous post-conflict experience in the Balkans provides important lessons not only for addressing infrastructure reconstruction issues, but also for identifying the remaining gaps in the complex process of social and economic reconstruction. In particular, as pointed out by the World Bank OED (Operations Evaluation Department) report on Bosnia, although the Bank delivered an effective "first wave" of reconstruction projects to the country, in the future its role should focus less on "bricks and mortar" and more on institutions and social capital.

To emphasize this point, in a recent address President Wolfensohn pointed out that "the traditional reconstruction tasks of restoring infrastructure, the hardware, seems in some cases of a lesser order than addressing the software of reconstruction: the minds of the people affected by war. Addressing the emotional scars, the economic marginalization and uprooting of people can be the most challenging part of building peace." Accordingly, in the transition from emergency reconstruction to post-war development, it is absolutely essential to complete the process of reintegration of war veterans and displaced persons, contribute to civilians' disarmament and inter-ethnic reconciliation, and to address vulnerability issues.

It is increasingly recognized that, as part of the strategy to support the peaceful reconstruction and development of the South East European region, a special emphasis is needed on reduction of ethnic tensions, improvement of the integration of vulnerable groups and groups affected by war and conflicts.

Internally displaced children, Mitrovica-Kosovo

Economic growth, improvement in the delivery of social programs and the perspective of a stronger partnership with the European Union will certainly play a very important role to stabilize the region but will have to be accompanied by specific policies and programs at the national and regional level to support more cohesive societies. The Social Development Initiative for South East Europe (SDI for SEE) provides a stronger focus on these issues among Governments and civil society of SEE countries and among the donor community supporting them. It helps to support the design of specific policies and activities aimed at improving social cohesion through very concrete analysis, local capacity building and pilot programs.

An initiative in the framework of the Stability Pact for SEE

The initiative is an integral part of the activities carried out under the Stability Pact. The Stability Pact assigns specific responsibilities to the European Commission and the World Bank. In particular, under the Stability Pact, the World Bank and the European Commission are given a special mandate to coordinate a comprehensive regional approach (Art. 41) to development in the region. The SDI for SEE supports this process by providing the focus on social cohesion and integration of marginal or excluded groups, within the framework of the Social Cohesion Initiative of the table on Economic Reconstruction, Development and Cooperation (Table 2,) and linkages with the table on Democratization and Human Rights (Table 1). Issues related to social cohesion can not be disconnected from human rights even if the main emphasis is on local institutions and access to resources and economic opportunities.

The initiative is managed by the World Bank in close collaboration with other institutions involved in the Stability Pact, and in particular, the Council of Europe. The initiative focuses on Serbia and Montenegro, Kosovo, Albania, Bosnia-Herzegovina, Croatia, the FYR of Macedonia, with some linkages to Bulgaria and Romania. A multi-donor steering committee oversees the implementation of the Initiative and provides guidance on the type of analysis and pilot projects to be implemented. The initiative will involve, in a major way, the academic community and development practitioners from SEE, but will also involve institutions from EU member countries and other countries involved in the Stability Pact.

Objective

The main objective of the Social Development Initiative for South East Europe is to jump-start the design of policies and programs that (i) support social cohesion through the improved integration of ethnic minorities, marginal groups and groups affected by war, and (ii) that reduce social tensions at the country and regional level. Advice to SEE governments and donors is provided in this process.

Justification and Management of the Initiative

The World Bank increasingly recognizes the need to act not just in post-conflict situations but also in conflict prevention, in an attempt to reduce the risk of conflict. The new Operational Policy on Development Assistance and Conflict, currently under preparation, broadens the Bank's mandate beyond post-conflict situations to assist countries at risk of conflict, countries in conflict or engaged in hostilities, as well as post-conflict countries. At the same time, there is an increasing awareness, within the UN, the World Bank and other agencies that differential access to resources on the basis of ethnic, religious or linguistic affiliation is a structural factor making conflicts more likely to occur. In SEE, analysis related to conflict risk and ways in which tensions can be decreased between various ethnic and social groups, and measures to encourage the integration of marginal groups and groups affected by conflict require additional resources than what is available in the framework of country programs.

From an operational standpoint, the World Bank has become increasingly engaged over the past years in responding to the Balkan crisis through Emergency Projects and Post Conflict Grants for countries in South East Europe, and through a Transitional Support Strategy for Kosovo, among other initiatives under preparation. Some grants, in particular the Macedonia and Croatia Post Conflict Grants, are supporting the transition between emergency needs and medium-term social development goals, such as the peaceful integration of different communities into the broader social fabric.

Another important aspect is the focus on sub-regional approaches, beyond a country-by-country activities. The SEE aims at interconnecting countries in a fragile balance. The recent conflicts in Yugoslavia have shown not only its impact on neighboring countries, but also the potential danger in bordering areas where ethnic Diaspora live near the border of a kin state, i.e. the Albanian minorities in Macedonia, Montenegro and Serbia, the Hungarian minority in Vojvodina, the Serbian community in Croatia's Knin-Sibenik and Zadar counties, etc. In addition, the Balkan region still has many refugees and very vulnerable minority groups, such as the Romas. Many activities under the initiative, studies and pilot projects are therefore regional activities, to complement the limited resources the World Bank and SEE countries have to carry out regional programs.

Italy's Development Cooperation has been the primary donor and active partner of the Social Development Initiative for SEE, in partnership with the World Bank Social Development Group and the Post Conflict Fund, due a common emphasis on cross-sectoral approaches and on the social foundations of the peace and development process. Other European donors, i.e. DFID, the Swiss Agency for Development and Cooperation, and private foundations have also expressed interest in the initiative.

Institutional Arrangements

The initiative is managed by the Social Development Group -- part of the Bank's Europe Environmentally and Socially Sustainable Division. The Initiative is overseen by a steering committee of participating donors. The Committee meets at least once a year to discuss the yearly program and the results of the performed activities. In the World Bank, a committee representing the Country Directors of the concerned countries as well as the Sector Directors and Sector Managers most concerned with social cohesion issues are advising the team managing the initiative and deciding on the specific work program.

Bosnia-Herzegovina

Formal counterparts at governmental level in participating SEE countries are relevant ministries such as Construction and Reconstruction, Economic Coordination and Trade, Labor and Social Policy, Youth, or Councils of Ministers, depending on the specific activities to be carried out. SDI for SEE officially consults Government in each beneficiary country prior to start up.

The initiative is being implemented in collaboration with the Directorate General III-Social Cohesion of the Council of Europe and the CoE Development Bank. The pilot projects prepared under the initiative are designed in a way that facilitates their expansion, if successful, as full fledged projects to be funded by the World Bank, the Development Bank of the Council of Europe or other interested donor institutions.

Periodic regional "working gatherings" with official counterparts, donors, practitioners and specialists will be held on specific issues (i.e. youth, women's empowerment, refugees, etc.) with the objective of helping to design pilot activities on the basis of lessons from concrete experiences. Periodic meetings with donors will also be organized to review the overall progress.

The field activities supported by the initiative are implemented in close collaboration with local partners that have the responsibility to carry out specific analysis or manage pilot projects. Field offices of UN agencies, and in particular, UNICEF are key partners; International research centers and NGOs are also becoming actively involved. Examples of local partners are local NGOs with a regional outreach and/or with established relations with more than one ethnic group, such as the Albanian Youth Council, University of Tirana Faculty of Sociologyand School of Social Work, the Federation of Roma organizations and the Albanian League of Women in Macedonia. The International Network for Europe and the Balkans, the University of London School of Slavonic and East European Studies, as well as other international think tanks and peace groups, are among the non-governmental international partners there are.

Reporting

A progress report every year will inform donors, the Stability Pact for South East Europe and the World Bank management on the implementation of pilot activities and the progress of the studies, and will discuss the impact of the Initiative on policies and national programs in the region.

Business Plan and Projected Budget
The overall cost of the Initiative for 4 years is estimated at US$ 10 million.

The start up activities were financed in FY 2000/2001 with US$ 160,000 support from the World Bank, and funding from the Italian Government of US$ 700,000. In March 2001, Italy has also committed additional resources of USD 1,000,000 for the Regional Applied Social Research and Social Policy Network. The focus of the network will be capacity building in the field of Social Research and Social Policy in Serbia and Montenegro and Kosovo).

The World Bank has made available US$ 5.5 million through a post conflict grant and IDA lending to launch pilot projects in different countries.

The Initiative will unfold over four years. Resource allocation and final selection of activities is being undertaken by the Steering Group in consultation with donors and relevant SEE Governments and donor representatives.

Annex 1: Regional Youth Component

Annex 2: Regional Applied Social Research and Social Policy Network