Bojan Pečenica

FeaturedEmployment: Encouraging Youth to Stay in B&H

The company MAG-MAL from Skelani employed 8 workers through the Economic Empowerment of Youth project.

The company MAG-MAL from Skelani provides metal processing and plastic injection moulding for the regional and EU markets. Established in 2014, it has managed to achieve significant growth over the last two years, and with the support of the Economic Empowerment of Youth project, it was able to hire eight new employees from Srebrenica and the surrounding area. MAG-MAL is an example of how a company can successfully operate in a small community, boosting employment and economic development in places where young people struggle to find work.

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Four Knotty Issues for Tying & Strengthening the Humanitarian–Development Nexus FROM: MARTIN DIETZ, ZENEBE B. URAGUCHI

“We have to move quickly and intervene. Let’s save lives first. People have lost everything, and they need to survive.”

— A humanitarian worker during the typhoons of the Philippines in 2014

“The crisis is complex. Not only refugees but also host communities need support. And this requires not just handouts, but mid- to long-term strategies for livelihoods, reconstruction and governance.”

— A development practitioner during the Syrian crisis in Jordan in 2019

These two accounts depict isolated and differing views, and real dilemmas of how to respond to complex emergencies. Both seem to have separate objectives, engage mostly different partners and adopt different approaches.

In fact, the discussion on humanitarian-development nexus isn’t new, which dates back to the 1980s and the 1990s. What’s different now is the increased frequency and intensity of human-induced crises and natural calamities. This calls for coherent and joint action towards durable results.

We believe in the rationale for strengthening the nexus: the road to recovery requires concerted or coordinated efforts and people need extended support far more than immediate, life-saving support. This interest is genuine and timely, and that the divide isn’t too wide to bridge. However, it’s important that current debates and policy discussions among donors and actors should be matched by clear commitments and actions towards coherent strategies to break the cycle of crisis and respond effectively.

We propose four entry points to do the nexus effectively. But first let’s understand the reasons for the divide and why it matters…

Understanding the reasons for the divide

We think both humanitarian response and development work are important. Yet we also realize that the gap remains an issue and the search for effective ways of bridging the divide is more important than ever. But what makes us really struggle is answering the questions: Why has it taken so long? Or why has it often proven challenging and largely ineffective?

We think at the heart of the challenge has been a lack of shared conceptual frameworks and levels at which humanitarian and development actors operate. A shift has been difficult because of a major difference in culture between the two approaches. Humanitarian responders tend to see development as a cumbersome political process that’s unresponsive to saving lives and detached from reality.

For development practitioners, humanitarian responses may save lives, but with the risk of exacerbating dependency and creating donor fatigue because of increased costs and clear strategies for durable solutions.

The lack of shared frameworks has led to different interpretations of a common goal – leaving no one behind.

We also think that the above problem is connected to funding structures. Often humanitarian responses tend to be for a period of one to two years, after which funding substantially declines or stops. Even if there’s already an intention to connect relief assistance to recovery and beyond, resources don’t allow the transition. In some cases, there’s less tolerance to risks for innovative but “unmeasurable approaches” for linking short-term and long-terms initiatives.

Of course, we aren’t ignoring the operational reasons. The nexus isn’t about a linear and one-way transition from humanitarian phase to development phase. Among others, it requires working with local and regional partners. This means understanding causes of crises as well as incentives and capacities of actors. As we discuss below, having staff who’re capable to facilitate the transition becomes critical.

All these crucial elements are either ignored or aren’t taken seriously within discussions about the nexus.

But why should we be caring more?

Syria, Myanmar, Somalia, Yemen, Afghanistan, Iraq, South Sudan, Nepal, Ethiopia…. Imagine living in these countries: they recently experienced or are currently facing either human-induced crises or natural calamities. There’s been a clear trend in the nature of the crises in these and other countries – they’re getting complex, and displacements are prolonged. It isn’t just conflicts, but also natural calamities that’ve grown in frequency and intensity. A staggering 130 million people around the world are in need of humanitarian assistance to survive.

This means that the road to recovery requires concerted or coordinated efforts and people need extended support far more than immediate, life-saving support. For better and more durable results, the efforts need to go beyond the humanitarian-development divide. For example, focusing only on humanitarian assistance – through short-term or incremental measures – tends to balloon the volume, cost and length of the support with less clear vision and strategy for addressing root causes of protracted crises.

From our experiences of living and working in some of the fragile contexts, it’s simplistic to view humanitarian emergencies as short-term events. Often, crises are the result of structural and complex socio-economic and governance issues.

It’s also the case that development progress achieved so far can be slowed, good work being quickly unraveled, or even reversed because of crises and disasters. Put differently, shocks undermine development gains and block the path out of poverty and towards sustainable development.

On the flip side, development interventions that address root causes and are rightly facilitated have the likelihood of addressing, preventing or minimizing future crises. Strengthening resilience in crisis, post-crisis and fragile contexts calls for extended and appropriately designed initiatives.

What has reinforced the urgency for better interlinkages between humanitarian and development work was the Istanbul World Humanitarian Summit (WHS) in 2016 on the “New Way of Working”. In the Summit, there was a strong consensus on bridging the divide. With the shifting nature of crises, there’s a need for new ways of funding and delivering humanitarian assistance and long-term development.

Walking the talk: from here to where?

Based on our personal experiences from fragile countries and recent visits to Lebanon and Jordan on the Syrian crisis, we believe there’re comparative advantages that can come from both humanitarian and development initiatives. Below we summarize four entry points for collective outcomes that have the potential to reduce need, risk and vulnerability over multiple years and contribute to durable solutions. The emphasis is on consolidating the complementary aspects of humanitarian-development nexus.

Better understanding of the causes of protracted crises

In practice, this means joint analysis of needs, vulnerabilities, and risks, and of capacities. A coherent response requires a shared vision based on good data and risk-informed context and vulnerability analysis.

We aren’t suggesting doing analysis while people are exposed to danger or are dying. While responding to emergencies, there’re spaces for bringing in expertise to facilitate better understanding of the causes of protracted crises. It’s possible to do this during early stage of a crisis – or, in case of slow onset events, before a crisis occurs.

Before a crisis unfolds, there’re often signs of fragility and vulnerability. Irrespective of the focus – humanitarian or development – interventions aren’t just about people in crises, but also those who are vulnerable to crises. This’s why the Sustainable Development Goals (SDGs) set out not just to meet needs, but to reduce risks and vulnerabilities.

Facilitating operational coherence

Many implementing agencies have multi-mandates and do both humanitarian assistance and development projects even though these are done in less coordinated ways with less clear strategies of linkages. Operational coherence in practice means trying mutually reinforcing initiatives that reduce humanitarian need over the long term. This constitutes, for example, sharing of information and pooling of resources, as well as coordinated planning and implementation. A good example is the ESIP project in the Philippines.

A critical aspect of operational coherence is engaging and working with existing partners – not just implementing things directly by providing handouts to target groups. It’s important in both humanitarian and development programs that interventions are “market aware” – that is, institutions, and rules or norms including political, economic and social systems of governance of the relationships.

It’s all about working with relevant authorities, humanitarian agencies, civil society organizations, and private-sector actors. This’s well documented in the Minimum Economic Recovery Standards (MERS).  Another interesting example is the business case for “building back better” by MarketMakers project in Bosnia & Herzegovina during the 2014 floods.

Enhancing capacity to respond better

The above two points are easier said than done without having capable staff who are adept in and aware of working across humanitarian-development programs. One of the most important skills is consistently navigating complexity. And this’s one aspect of adaptive management.

Simply put, this means the ability to change strategies, plans and activities quickly in response to new information or signal to become more effective – with an appetite to take appropriate risks and make course-corrections. Linear, largely pre-planned initiatives are poorly suited to complex problems and contexts. For effectiveness, organizations need to invest in their staff to be “fit for protracted crises”. A major challenge is finding and keeping motivated and capable staff and shifting the culture and perspectives – for example, from the immediate “help” to recovery, building also on the resources that people bring with them – knowledge, skills and networks.

Knowing what works and what doesn’t and why

The starting point for an effective nexus is readiness to document good and not-so-good practices and embrace learning. Staying in our comfort zone isn’t an option, or in line with the age-old cliché to “think outside the box”.

In the end, what matters is improved performance of humanitarian-development initiatives that deliver long-term and large-scale results. As it stands, except for some guidelines (e.g. MERS) and activities, there’s a lack of strong evidence on successful humanitarian-development nexus examples. One practical way of filling the gap, in addition to the culture of learning, is having a right-sized and functional monitoring and evaluation system.

We hope to fill this gap with our growing experience…

Additional sources

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Systemic Change? What Are You Talking About? FROM: ZENEBE B. URAGUCHI

Two months ago, I was in Bosnia & Herzegovina, and I had an interesting exchange with Hana Imsirovic, Project Assistant of Moja Buducnost. A highly active participant in the political and economic spheres of the country, Hana was excited to join the Moja Buduconost project – to learn and contribute to employment and income opportunities of young people in Bosnia & Herzegovina.

Yet, what caught Hann off guard was what she heard from her colleagues and others involved in the project: systemic change! She recalls her first reaction: “it was too abstract for me. I couldn’t figure out what they were talking about…”

Hana reminded me of Elizabeth Mhangami, another development practitioner, that I met at the Market Systems Symposium in Cape Town in April 2018. You can read my exchange with Elizabeth here.

Hana’s and Elizabeth’s experiences are part of a development narrative in small projects in Bosnia & Herzegovina and Zimbabwe, respectively. Their inquiry and confusion echoes what happens at regional and global levels among practitioners applying systemic approach, also known as market systems development. There still seems to be a lack of good understanding of systemic change despite over a decade of rich experience of using the approach across different countries and contexts.

But why should we care about concepts like systemic change? Why don’t we just implement projects and support disadvantaged and excluded groups?

First, the lack of a common understanding has its own implications. For example, it “negatively influences how programs are funded and designed and also poses challenges to program monitoring and evaluation.” The concepts and terms that we use, argues Sarika Bansal, “shape the stories we construct of people and places, and ultimately, the policies and decisions we make.”

Second, the inability to clearly explain systemic change will more and more push the discussion to just about impacts – jobs, income, etc. – putting aside other essential elements that’re key to bringing about the impacts. As I saw in some instances, this may increase the tension between short-term and long-term results.

What’s systemic change anyway?

It’s clear that most projects struggle to define concretely what systemic change means and to find ways of supporting change. It’s ambiguous and difficult to grasp – “abstract in tone, polemical, and more concerned with diagnosing what is wrong than with offering concrete solutions.” Indeed, there’ve been a recognition of this challenge and several attempts to explain what systemic change is (and isn’t).

A quick assessment of available materials and experiences suggest three key aspects of systemic change.

1. It’s about sustainable and scalable impacts

A central feature of a systemic change is “that’s at least sustainable and large-scale impacts”. The change should be owned by actors, be it government agencies, private enterprises, civil society organizations… It should also have a wider and larger impact both in scope and quality. In other words, it goes beyond few farmers, young people, enterprises, municipalities…

I believe durable solutions that are more than islands of success are at the core of development challenges. And these challenges aren’t new; what has been lacking is an effective way of stimulating the changes.

The starting point for stimulating those kinds of changes is having a feasible and relevant vision by any development initiative. This requires taking stock of our current work and developing a realistic picture of how this will translate in the future once our initiatives or projects are over.

Let’s take an example from a governance or an advocacy system in agriculture. For pharmaceutical industries and millions of landless people in Bangladesh, medicinal herbs offer an opportunity for improved income. But governance of roadside and fallow land prevents better access and use for producing adequate and high-quality herbs. By addressing underperforming advocacy capacity, it was possible to create a coalition of local government bodies, enterprises and local communities to bring about lasting and large impacts. More local governments, more private enterprises, more local communities are involved in producing and processing additional species of medicinal herbs even after the end of the project.

The same can be said of the experience of the Indo Swiss Project Sikkim (ISPS) in India. Thirteen years after the end of the project – without any explicit claim of using a systemic approach (!), business among the 1,000 dairy farmers is thriving.

The point is what we do is less important than how we do it to improve inadequate, mismatched, or absent systems.

2. Change is about the dynamic structures of a system

Now this seems to be complicated. With the risk of oversimplification, what this means is the rules, norms, customs, practices, power dynamics, relationships and resource flows around a system, which can be in an education system, a governance system, a health system, etc.

What’s important is to understand what shapes the material conditions as well as behaviors or practices of people – individuals, businesses, public sector agencies, civil society organizations within a system.

Let’s take the serious challenge of creating decent jobs for millions of unemployed young people. Among others, labor market unresponsive and outdated curricula in the education system is one of the root causes. This might be a question of capacities or lack of awareness about the importance or possibility of bringing about changes. It’s also the case that young people don’t necessarily choose what to study, at least in most developing countries or countries in transition. Perceptions and norms of parents or communities shape what young people pursue (to study or work).

Another example is women empowerment. Often a strong narrative exists in countries that experience high level of gender inequality that defines women’s and men’s roles, and dictates responsibilities in households, markets and public life in their communities. Social norms shape and sometimes reinforce gender inequalities of power – that women can only receive information through their husbands and have little to contribute to decision making. In other words, both men and women don’t exist in isolation from surrounding informal rules and social norms – and these constitute a dynamic structure of the system the needs to be improved or changed.

3. Change requires enhancing processes  

An education, a health or an advocacy system isn’t static. All systems continuously evolve. Yet, this may not be in a positive or meaningful way mainly benefitting disadvantaged or excluded groups. In this line, Shawn Cunningham and Marcus Jenal argue that “rather than seeking to ‘make’ change happen,” development initiatives should focus on “creating access for all levels of the society to contribute to and shape this process”.

This raises the question of: why the education, health, advocacy, etc. systems in developing countries or countries in transition need projects (from outside) to come in and support durable and large-scale changes? Why do municipalities, universities, private companies, civil society organizations need others for changes to happen? The role of development projects in achieving systemic change should therefore be complementary and facilitative, and not as interventions that treat complex problems as simple input-output models.

Let’s take once again labor market systems. For creating employment opportunities, a project may contribute to introducing or improving (hence the term “innovation”) market functions that support private sector growth. It’s indeed target employers that possess the motivation, know-how, and resources to make changes to their business practices and secure more clients/customers and increase sales, revenues, and profits. These contributions by a project in enhancing processes can be referred to as “systemic changes”.

Beyond labels and jargons

“Our approach aims at bringing about catalytic change. We use innovative and disruptive ideas that stimulate crowding-in.” If you read this more than once and if it makes you say “huh?”, then you got my point.

I’m still unable to convincingly explain what I currently do to my ex-colleagues in Toyota Motors. Next week, I’ll once again be in Bosnia & Herzegovina and meet Hana. Her questions are a reminder of how most development approaches, including systemic approach, suffer from the deficit of clarity and shared understanding.

The good news is there’s a lot of progress in improving our understanding of the principles of systemic approach and their applications.

It’s important that we go beyond being obsessively concerned about concepts like systemic change, marketsfacilitation, etc. The point should rather be to understand what they mean (and don’t mean) and improve their application across different contexts.

In addition, systemic change doesn’t happen in a linear fashion. Development projects are becoming complex not because of size, cost and duration, or the challenge of integrating advances in technology. It’s mainly because the systems in which development work takes place are complex adaptive systems.

Successfully contributing to a systemic change will require an inclusive culture and collaborative environment, adequate investment, and human capital development strategy for creative minds and passion of people with a purpose.

Clear thinking is the basis of generating good ideas and making a difference, and of course telling good stories.

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Compelling Reasons Why I Should Appreciate Being Part of Other Countries’ Development Experiences FROM: ZENEBE B. URAGUCHI

My job takes me to different places. In addition to the opportunity to contribute to ideas, it offers me new perspectives and experiences. Ups, downs and sideways, my job brings me closer to people.

Development cooperation has increasingly been described as “global partnership” between different countries, not just between those with resources (human, financial etc.) to support and those that seek to get the support. Building a better world will require all us to be “empathetic, inventive, passionate, and above all, cooperative.”

Yet, effective global partnership in a messy world needs the recognition that solutions mainly (if not all) come from people within the countries that aspire to have better lives – through determining their dignity and security and through the use of their resources in a sustainable manner. This isn’t naïve but realistic and justifiable.

In hindsight, what has been compelling for me is the opportunity to be part of the development pathways of different countries which I (and you as well) shouldn’t take for granted.

But what does this mean? How does such experience happen and what does it signify regarding the changing nature of international development cooperation?

From “tyranny of experts” to genuine collaborators

In a highly interdependent world, I think seeking durable development solutions by just sending experts to help others in the “South” is no longer a workable option.

Let me start with one simple example: as Saleemul Huq argues, “when it comes to climate adaptation, [developing countries] have the greatest expertise and other countries may benefit from learning from what they have done.”

It isn’t just contextual knowledge that “locals in the South” are capable of and ready to contribute. The knowledge in these countries constitutes understanding the complexity of development challenges and proposing and carrying out durable solutions. In this case, their knowledge forms part of the global knowledge.

Here’s an example from Helvetas’ experience in Kyrgyzstan on the topic of decentralization. When Helvetas wanted to enter into partnership, national Kyrgyz organizations asked proof of expertise of Helvetas in the area before they decided to work together. This implies not simply the question of either the lack or availability of expertise, but also the genuine desire to collaborate and add values in which national actors seek to hold the steering wheel and decide with whom they want to enter into partnerships.

It’s also interesting to learn from the example of Grameen Bank of Bangladesh – how developed countries are adapting the microfinance model. With increasing inequality, people in developed countries are also falling into poverty. The establishment of Grameen Nippon in Japan demonstrated the importance of learning from others to address increasing inequality, especially among low-income earners and single-parent families.

There is no denying that development actors from the “North” have been important players within the international development architecture. In a rapidly changing and complex development landscape, their roles have evolved, which requires a renewed and strengthened collaboration with their partners in the Global South.

I believe the search for durable solutions through development partnership is shifting from the “we will help you” approach to “we contribute” and “we learn” from your experience. However, I don’t take this as an act of rebalancing the unequal relationships between Northern and Southern actors of development initiatives. Rather it’s about being part of this shift – in Kosovo, Moldova, Vietnam, Bangladesh, Ethiopia, Jordan, etc. – and understanding how local systems and regional contexts operate.

This, for me, is witnessing and experiencing an important course of development cooperation. This’s where more opportunities exist to participate in, contribute to and learn from such evolving development paths. Without the intention of playing with words (i.e. semantics aside), the shift is characterized not just by “transfer” but by “exchange” of knowledge, resources, technology, etc.

“South-South” and Triangular partnership  

Part of the learning from the development experiences of other countries is also how the North-South collaboration is broadening. South-South cooperation is an important case, which has been experimented for many decades. It’s about when two or more developing countries engage in individual and/or shared development objectives through exchanges of knowledge, skills, resources and technical know-how, and through regional and inter-regional collective actions.

Triangular partnership is the facilitation role that Norther Partners can take in South–South cooperation. This fits in well with one of the key principles of systemic approach – taking a facilitative role! As we go along, perhaps Northern development actors may need to relinquish a command-and-control approach – that is, not doing things by themselves and/or avoiding the temptation to tell others what to do.

Here’s a remarkable example that shows a clear leap from rhetoric to action. Through more than 40 years of collaboration with Switzerland, Nepalese engineershave become world experts in trail bridge construction. Since 2008, Nepalese engineers have been collaborating with their counterparts in Burundi, Ethiopia, Mozambique, Laos, Vietnam and elsewhere.

South-South collaboration isn’t a substitute to other forms of partnerships, nor is it a political and economic patronage. It’s a recognition of the growing expertise among developing countries and the need to facilitate peer-to-peer exchanges. It isn’t also new, but part of efforts that strengthen the different paths that development cooperation should and will take.

From mere appreciation to documenting and sharing

While I’m grateful for being part of the development experiences of different countries, it’s also important to document and share such a wonderful experience.

There’re a lot of people in the development community, including Helvetas, who have rich experience of being part of the development trajectories of different counties. Such experience, I believe, provides answers to the critical challenges that different countries face. But what bothers me is that most of our knowledge or experience is tacit. It’s only available to us and perhaps to a narrow circle of our colleagues.

Knowledge must be accessible. It’s our responsibility to tell the story of our shared experiences of working and exchanging with different countries and regions of the world.

I’ll be in Ethiopia in August and September 2019. I plan to see and document the collaboration between Nepalese and Ethiopian engineers. I hope this will deepen my experience of being part of others’ development paths and increase my understanding of development as a complex process.

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Diaspora communities as a driving force for development: is there a “business case”?

Dinka Majanovic, Almira Kadić, Katrin Rosenberg & Zenebe Uraguchi (MarketMakers project)

There is interest within diaspora communities in supporting the development of their “country of origin” beyond the transfer of remittances to their (extended) families. Globally, the number of people living outside their country of origin has almost tripled over the past 45 years — from 76 million to 250 million. In many countries, remittances contribute to keep national consumption afloat and represent up to a third of the Gross Domestic Products (GDP). Worldwide, remittances amount to around 445 Billion USD and hence triple the amount of Official Development Assistance (ODA).

However, the role that migrants can play in contributing to the development of their countries of origin – beyond sending remittances – has been short of its potential. More recently, however, diaspora engagement in a more facilitative manner is said to be an important and emerging area for contributing to development. In this blog post, we discuss if there is a business case supporting the claim.

Three reasons for championing diaspora engagement   

While many countries have recognised the potential of their diasporas to contribute to local development, diaspora engagement has also come more prominently on the radar of development cooperation.

First, diaspora communities are seen to serve as a vehicle for transferring resources, technology, knowledge and ideas to their home countries and thereby contribute to their economic and social development. There is indeed high potential for maximising the positive impact on creating jobs and income through financial investments, networks and skills of migrants/ diaspora communities in the countries of origin. Financial and skills flows from diaspora communities are often seen as the most tangible element of the nexus between migration and development. To fully reap this potential, it is key to have a conducive legal framework in place.

Second, compared to a typical foreign direct investment (FDI), diaspora investment has a special appeal. Investment decisions of diaspora communities are not entirely driven by financial gains; there is also an emotional attachment to the country of origin. Diaspora communities have the local knowledge/networks and higher motivation because of collective memory and the myth about the homeland, including the desire to “return home one day”.

A third reason considers diaspora investment as complementary or alternative source of financing for development due to the decline in development cooperation during the post-recession years and the recent rise of populism. Implementation of the Sustainable Development Goals (SDGs) faces a serious financing gap. To maximise the positive impacts of remittances, the SDGs directly aim at a) reducing remittances transfer costs to below 3% and b) better utilising the positive impacts of remittances on development.

An example from Bosnia and Herzegovina (BiH)

Successive waves of migration created a diaspora community from BiH representing a significant population in size, spread and depth. The current population of BiH is estimated to be 3.53 million. It is also estimated that there are about 2 million people from BiH living in more than 51 countries, constituting more than 55% of the population of BiH.[1] Over 95% of emigrants from BiH have acquired citizenship or residence permits in their host countries.

Engagement of diaspora community from BiH, mainly in economic terms, with their homeland, has been short of its potential. If diaspora engagement is relevant and that it offers untapped opportunities, why is this not already happening in BiH?

Contributions from a large number of BiH diaspora community are still limited to sending remittances – 1.5. Billion Euro of remittance is sent every year to BiH, making up 15% of the country’s gross domestic product (GDP).  Cash serves as a lifeline for households struggling to make ends meet. It is also a source of foreign currency for the BiH governments in addition to other capital inflows such as foreign direct investment, public debt or official development assistance. While remittances have supported economic growth, existing investment initiatives are limited to the wholesale sector (stores, bars, and cafés), real estate and tourism as well as agricultural activities.

Even if diaspora community members have business ideas that go beyond remittances, these are often carried out on ad hoc basis, relying many times on informal networks. “Migrant networks” support investment from the diaspora community to their country of origin. They are used to support capital flow as well as the provision of relevant information for investors. However, available information rarely supports tangible, commercially viable investment opportunities, costs and barriers to make informed decisions. Nevertheless, more recently coordinated and professional initiatives such as Restart or Nasa Perspektiva have started to offer professional services to potential investors from the diaspora.

Significant regulatory barriers (e.g. lengthy procedures, inadequate transparency of the governmental institutions, very low level of digitalisation of governmental services) and limited rule of law also seem to discourage potential diaspora investors. Policy makers and officials of BiH are enthusiastic about engaging the diaspora in a more formal manner and attract investments. The Department for Diaspora exists within in the Ministry for Human Rights and Refugees. On the Ministry’s proposal, the Council of Ministers adopted “Policy on cooperation with diaspora” in April 2017, which represents one of the main steps to operationalise and coordinate diaspora cooperation. Yet, in practice, cooperation among different institutions (including foreign missions in the receiving countries) and with the diaspora communities remains a challenge.[2]

Building the business case through addressing root causes

The above list of problems is more symptoms than root causes. The main reasons lie in the underperformance or the absence of services in coordination and information, research and advocacy. During the past few years, there have been several different initiatives supporting the engagement and collaboration between diaspora and local communities. Donors recognise the potential and have decided to invest in different projects, raising awareness about diaspora communities’ potential, supporting their engagement, and directing their initiatives towards conducive framework conditions.

One of the key challenges is effective coordination and communication among the different actors. Oftentimes, diaspora communities are not sufficiently networked and equipped to start a coordinated dialogue with the BiH’s government institutions. Investors also seem to have little confidence in government institutions’ interest or capacity to improve the regulatory and policy environment and thus avoid contact with officials and politicians mainly at the state level.

The problem also lies in the lack of effective mechanisms for exchange between private sector enterprises/investors and government institutions. At the international level where diaspora communities work and live, platforms for coordinating investment initiatives have only recently been set up and mostly focus on creating business linkages between interested enterprises in BiH and receiving countries. Activities focusing on supporting effective mechanism for the exchange of ideas and channels for initiating dialogue with government institutions in BiH and the respective Embassies is at very initial stages. This coordination is particularly important, as policymakers require reliable information on the demand and priorities of investors.

A realistic business case must start with relevant and up-to-date assessments that consider the incentives and capacities of different stakeholders (e.g. investors and other business partners). Diaspora communities may have less perceived risk than other typical investors; however, a much-perceived risk arises from a lack of good information about local business opportunities and corresponding legal requirements. This can be a significant obstacle to investment by even the most committed diaspora investors. There is either lack of research or the capacity to conduct good assessment highlighting opportunities and risks of potential sectors for investment. Ready-to-use information coming out of a good analysis of data is crucial and it shapes investment decision-making and informed actions.

The vision for a business case in BiH, therefore, may be an adequate and relevant system for information/research about investment opportunities, linkages and advocacy for increased engagement of the BiH diaspora community. The focus should be on supporting business-driven initiatives and solutions for the sustainable growth of entrepreneurs and businesses to create jobs or contribute to better incomes of citizens. These are some of the issues that youth employment initiatives in the Western Balkans try to tackle.

Diaspora communities, in general, are not “magic bullets” to solve complex development problems and are unlikely to alter structural constraints or reconstruct fragile states on their own. However, with a good understanding of the root causes and well-defined strategies, such initiatives may contribute to the long-term to economic development and progress on the path to EU accession.

Dinka Majanovic has over ten years of experience in economic development of Bosnia and Herzegovina through the creation and implementation of economic programmes, measures and projects. She worked on regulatory reform and development projects with the EU, USAID, SIDA, the World Bank and UNDP, advising both government institutions and the private sector on development and growth. Currently, she works as IT Sector and Policy Leader for the MarketMakers project implemented by a consortium of HELVETAS Swiss Intercooperation and Kolektiv ltd.

Almira Kadic is an economist with international working experience for a multinational private company, development projects and government. She works for MarketMakers, Youth Employment Project, implemented by Consortium HELVETAS Swiss Intercooperation and Kolektiv ltd. in Bosnia and Herzegovina, as Business Process Outsourcing Sector Leader.

Katrin Rosenberg has been a Senior Advisor for Migration and Development since 2016. Her career as a development professional started in 2005 and includes multi-country experience in South Asia, Latin America and Central Asia. Her thematic expertise comprises migration and development, governance, civil society, human rights and advocacy. Since 2011, Katrin’s thematic focus has been on migration. For three years, she led HELVETAS’ labour migration project in Sri Lanka. Besides her technical expertise, Katrin’s competencies include leadership, project cycle management, capitalisation, training and policy dialogue. She holds Masters degrees in International Affairs and Governance (University of St. Gallen) as well as in Development and Cooperation (ETH Zurich).

Zenebe Uraguchi is a development economist with multi-country experience working for a multinational private company, an international development bank and a research institute. He works with HELVETAS Swiss Intercooperation, based in Switzerland, as Programme Coordinator for Eastern Europe and Senior Advisor in market systems development.

Additional sources

[1] The Ministry of Human Rights and Refugees of BiH; BiH Agency for Statistics: Census of population households and dwellings in Bosnia and Herzegovina, 2013 Final results-June 2016; Marko Valenta and Sabrina P. Ramet, “Bosnian Migrants: An Introduction”, in Marko Valenta and Sabrina P. Ramet (eds.), The Bosnian Diaspora: Integration of Transnational Communities, Farnham, 2011.

[2]  Ministry for Human Rights and Refugees of Bosnia and Herzegovina, “Policy on cooperation with Diaspora“, April 2017,(http://www.mhrr.gov.ba/iseljenistvo/aktuelnosti/Politika%20o%20saradnji%20s%20iseljenistvom_usvojena.pdf) pp. 10-11

Source: http://blog.helvetas.org/diaspora-communities-as-a-driving-force-for-development-is-there-a-business-case/

MarketMakers (4)

Analysis of the potential for developing the Business process outsourcing industry

The MarketMakers project, supported by the Swiss Government, in cooperation with regional development agencies: SERDA, NERDA, EDA and REDAH, is conducting a data collection for the purpose of analyzing the potential for the development of the “Business Process Outsourcing” industry in Bosnia and Herzegovina. Secondary and primary data were collected from four city regions (including surrounding municipalities): Sarajevo, Tuzla, Mostar and Banja Luka.

The data from the enclosed documents provide an insight into economic, infrastructural and business data to potential investors who are considering starting a business or transfering a business to Bosnia and Herzegovina. The official sources of information that were used are shown in this survey.

We hereby inform all interested parties that through the contact form on the website of the project, they can request the data collected within this research: http://www.marketmakers.ba/stranica/25/pregled

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Start-ups: Young people from the Birač region see opportunities in IT

Over the past five years, many efforts have been made to support fruit production in the Birač region. As a result, this sector of the economy has experienced steady growth. That’s a good thing, as this is one of the only sources of income for many young people.

But what happens to those who face long-term unemployment? How does a lack of jobs and economic resources affect this population? Is leaving the region the only option they have, since agriculture is not a solution for everyone?

Visit Jajce-58

Start-ups: Three start-up companies launched in Jajce

Three start-up companies launched in Jajce, supported by the  Economic Empowerment of Youth project

Every day, we hear about young people who are leaving BiH in search of a better life. They’re fed up with the lack of jobs and opportunities. However, for three start-up companies from Jajce, supported through the Economic Empowerment of Youth project, this difficult economic situation was not an insurmountable obstacle, but rather a challenge they could overcome. Tired of waiting for things to change, they say it’s time for young people to take responsibility and do something!

Aida Klapuh, Josipa Miketa, and Adis Čagalj, like many young people in our country, have had periods of unemployment, have worked jobs unrelated to their education, and have experienced many disappointments. But these young people recognized opportunities others didn’t see and took the initiative to start their own businesses. Through the project, they were offered further education, as well as mentoring and financial support for the realisation of their business ventures.