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 Home->Introduction and Background Information

What types of support are being provided?

Donors have been highly responsive to the needs of the Region and their support is tailored to each country to take account of the phase that each country is passing through. For example, donor support for reconstruction and reform in Bosnia and Herzegovina peaked in the years after the Dayton Agreement of 1995 and already much had been achieved by 1999, and reconstruction needs were on a downward trend. In Albania and FRY Macedonia on the other hand, the Kosovo crisis caused immediate and dramatic budget support needs and humanitarian needs which the donors were generally able to come up with. Kosovo, another example, had substantial needs in 1999 and 2000 but already as budget systems were being put into place and reconstruction needs being filled, demand and supply has been on a downward trend.

Within the envelope of overall assistance to the region ( in the order of €6-7.2 billion until 2005), donors have started to focus increasingly on medium term reconstruction and development assistance, as the needs for humanitarian assistance and budgetary/balance of payments support have diminished. 

In general, donors recognize that economic development, social inclusion and regional stability in South East Europe hinge on the strengthening of institutions, governance and a lowering in the level of corruption. In the table below, the breakdown of donor assistance to the region shows that considerable investments are being made both in the social sectors and in government and institution building. By far the largest amount of assistance, however, is being directed towards the development of infrastructure (eg. roads, railways, electric power, and water) which is crucial for economic growth in the region. In addition, donors are active in supporting private and financial sector development, to encourage the expansion of output and trade as well as the development of sound banking facilities on which Small and Medium Sized Enterprises (SMEs) depend. 


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