---

Time to Make Good on Pledges, World Bank tells Donor Nations By Jude Webber FLORENCE, Italy, June 13 (Reuters) - The World Bank said on Thursday it would urge international donors to Bosnia to pay out promised aid money to make sure there is a visible peace dividend before national elections due this autumn. The international community has pledged $1.8 billion for reconstruction in 1996, but the World Bank said in a report for a meeting of nations and organisations charged with overseeing Bosnia's peace that not all the cash had been firmly committed. "Several key donors have not committed all or part of their funds,'' the World Bank said in the report, which it will present on Friday to the meeting in the central Italian city of Florence. A copy was released in advance. "Timing is everything. Assistance must be front-loaded to ensure a visible 'peace dividend' before the elections... "Donor commitments to support the (government's) priority reconstruction programme are needed now.'' Under the Dayton deal which ended war in Bosnia, elections are due to be held by September 14. The Florence meeting was expected to set that as the poll date despite fears that not all conditions were in place to ensure a free and fair procedure. The Bosnian government, with the support of the European Commission, the World Bank and the European Bank for Reconstruction and Development, worked out a $5.1 billion three-to-four year plan which was endorsed by donors in December to start repairing the estimated $50 billion war damage. "About 20 percent of 1996 pledges are still unconfirmed or uncommitted," the World Bank said. The World Bank said the peace dividend could lead to a considerable economic benefit. "With the reconstruction programme now under way, 1996 growth rates could reach around 35-40 percent," it said."Assuming growth averages about 10 percent per year between 1998-2000, GDP could recover to close to two-thirds of its pre-war level by the year 2000." It said per capita income was around $1,900 before the 43-month war in Bosnia. The World Bank said it had committed $160 million towards seven projects, covering infrastructure, agriculture and small businesses, water and sewage projets, transport, heating, eductation and the rehabilitation of war victims. It plans to support eight more, including power projects, landmine clearing, housing, hospital and public works. Bosnia, now a member of the International Monetary Fund, has struck a deal with the World Bank which consolidates its outstanding principal and interest arrears into a new 30-year loan and reduces debt-servicing charges.But the Bank called for further steps to kick-start Bosnia's economy. "Normalisation of relations with other creditors -- and in particular with the Paris and London Clubs -- is now of critical importance," it said. It also urged donors to think ahead now: "Since reconstruction in Bosnia will require sustained commitment, donors need to think ahead, already now, to their reconstruction pledges for 1997 and beyond."

Bosnian Reconstruction at a Glance The World Bank
The World Bank The World Bank’s Homepage
Bosnian/Balkan Reconstruction U.S. Department of Commerce
Bosnian Reconstruction Guide Republic of Bosnia and Herzegovina

Berserkistan is a world news service of Michael Linder Productions, Inc.
©1995-1996, All Rights Reserved