AUGUST 2005 EMBASSY OF SWEDEN, BELGRADE OFFICE FOR COOPERATION IN PRISTINA. Sida Annual Report Kosovo

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AUGUST 2005 EMBASSY OF SWEDEN, BELGRADE OFFICE FOR COOPERATION IN PRISTINA Sida Annual Report 2004 Kosovo

Content List of Abbreviations...3 1. Summary...4 2. Strategic Country Development Trends... 5 3. Swedish Development Cooperation...7 3.1 Strategic Assessment and Considerations...7 3.2 Overall Country Portfolio Review...9 3.3 Sector-wise Analysis...11 4. Administrative Issues...15 Appendix A...16 Appendix B...17 1

Published by Sida 2005 Department for Europe Author: Embassy of Sweden, Belgrade Office for Cooperation in Pristina Printed by Edita Communication AB, 2005 Art. no.: SIDA4828en This publication can be downloaded/ordered from www.sida.se/publications 2

List of Abbreviations CHwB DH EU FAO GDP IC IOM KCA KCS KEAP NGO OIK ORC PISG SME SOK SPPS SRSG STM UNHCR UNIFEM UNMIK Cultural Heritage without Borders District Heating European Union Food and Agriculture Organization Gross Domestic Product International Community International Organization for Migration Kosovo Cadastre Agency Kosovo Correctional Service Kosovo Environmental Action Plan Non-Governmental Organization Ombudsperson Institution in Kosovo Office of Returns and Communities Provisional Institutions of Self-Government Small and Medium Enterprises Statistical Office of Kosovo Swedish Prison and Probation Service Special Representative of the Secretary General Standards Tracking Mechanism United Nations High Commission for Refugees United Nations Development Fund for Women United Nations Interim Administration Mission in Kosovo 3

1. Summary 2004 has been a difficult year for Kosovo. The riots in March hampered progress in society at large and the implementation of the Kosovo Standards have been rather slow. Nevertheless, a European Partnership was signed during the year and reasonably fair elections during fall were followed by more active efforts to implement the short-term priorities set out in the partnership. The aims of the Swedish development cooperation with Kosovo are closely connected to those of the IC in general as well as with the Kosovo Standards and the European Partnership. The results of the Swedish development cooperation have in general been according to plans. One negative deviation was the minority returns programme, which was strongly affected by the March unrest. A positive achievement has been the active role that Sweden has played in improving donor coordination and promoting increased national ownership in development processes. Furthermore, Sweden has kept a high profile and been very active in promoting gender equality and increasing environmental considerations in Kosovo. At the end of the strategy period it can be concluded that the Swedish development cooperation with Kosovo has been generally relevant and important. However, lack of concentration of the programme has been a shortcoming a fact that has been taken into account in the planning process for the coming strategy period 2005-2006. 4

2. Strategic Country Development Trends The main political development in Kosovo during 2004 included a couple of major political events. Initiated already in November 2003, the Kosovo Standards Implementation Plan was launched, paving the way for a process and mechanism to review progress by mid-2005 to determine if discussions can start on Kosovo s future status. In March 2004, ethnically motivated violence left 19 persons dead, more than 900 persons wounded, and about 730 houses and 36 churches damaged or destroyed. More than 4100 people from the minority communities had to flee their homes. This violence became a painful reminder of continued political instability in Kosovo. A new SRSG, Mr Soren Jessen Petersen, was welcomed to Kosovo in August. Elections were held in October, and despite the almost total boycott of Serbian voters, a new government was formed mainly consisting of the LDK and AAK political parties, where Dr Ibrahim Rugova remained President and Mr Ramush Haradinaj became new Prime Minister. Kosovo continued its efforts to further integrate with EU-structures. Several STM-meetings were held. The European Commission presented a report on the general development in Kosovo and highlighted areas where substantial progress must be made for Kosovo to achieve further integration. A special European Partnership was established, which identifies short and medium term priorities for Kosovo in the European Integration process. The short term priorities mainly consisted of reaching the Kosovo Standards, while more long term priorities put additional focus on democracy and human rights, further institutional capacity building, rule of law and economic development. The post-war and post-communistic reform process in Kosovo mainly consists, in the short term, of reaching and implementing the Kosovo Standards. Several laws must be adopted and specific programmes must be implemented in order for the Kosovo society to start moving towards a multi-ethnic democracy with a functioning market economy. But the Standards process is only a beginning, where much greater reforms are needed in the long run, especially in order to join European structures. The implementation of Standards was very slow during most parts of 2004, but with the new government in place, the pace started to pick up drastically. Even though reasonably fair and democratic elections have been held, Kosovo is still far from having effective democratic and good governance. Widespread corruption still hampers democratic and economic development and even though respect for human rights has 5

increased in general, the situation in many areas remains troublesome. Within capacity building of the PISG, initiatives have been taken and coordination is now being prioritised, both by the new government, UN- MIK and several donors. With lack of reliable and accurate statistics, it is difficult to analyse the status and various trends of the socio-economic development and poverty situation in Kosovo. However, the estimated GDP per capita, USD 790 in 2003, is the lowest in the Balkans. The high growth rates since the conflict can almost entirely be traced to foreign donor assistance and remittances from abroad, rather than domestic value-added output. There is a very low level of manufacturing industry and exports cover only 3.7% of the imports. Unemployment rates ranges between 38-50%. A recent poverty study done by the World Bank claims that income poverty is widespread, 37% living with less that 1,42 Euro per day, and 15% living in extreme poverty with less than 0.93 Euro per day. The groups most at risk for poverty are children, elderly, female-headed households, disabled, ethnic minorities and unemployed. Education outcomes have improved but overall level of education is still low. Exposure to environmental health risks is high and lack of personal safety is still an important issue. 6

3. Swedish Development Cooperation 3.1 Strategic Assessment and Considerations Despite constant changes on the political scene and in the institutional structure in Kosovo, the Swedish development strategy has still been relevant towards the development needs of Kosovo. The overall aims and objectives of the Swedish development cooperation during the Strategy period 2002-04, of promoting democratic development, lasting peace in the region, return of refugees and a socially and ecologically sustainable market economy, are the same objectives that are shared by the international community and the local government, shown in the Kosovo Standards, STM-process and European Partnership. The Swedish development support is balanced between on the one hand increasingly supporting capacity building in public institutions in order to prepare Kosovo for further European Integration, while at the same time also supporting refugee returns, sustainable economic development, human rights and democracy in order for Kosovo to improve its general development and to decrease poverty as well as to meet the Copenhagen criteria. The chosen areas of development cooperation have in general been relevant, even though one could argue that too many sectors were chosen. There has been a lack of concentration to fewer sectors, which has resulted in a rather unfocused and broad Swedish development support. This is important to consider in future strategic choices ahead. The general decrease in infrastructure, reconstruction and humanitarian support during 2004 is well motivated considering the importance of shifting the support towards building democratic institutions and promoting a sustainable economic development. Some reports argue that the reconstruction and humanitarian phase is over in Kosovo, but this is only partly true. There are still huge needs of reconstruction and of improving the infrastructure in Kosovo. There is currently a gap between decreased donations in this area on the one hand, and lack of access to international financial institutions for Kosovo and limited private investment on the other hand. Regarding the humanitarian situation, the quick decrease in foreign donations in this area has happened before local social institutions and services are in place or being effective enough. This affects the poorest people who today lack enough support in Kosovo. Both the issue of access to international capital markets and improving the business climate as well needed investments in the social sectors, are crucial strategic issues to be addressed in the future development for Kosovo. 7

One area of development cooperation that was especially affected during 2004 was the minority returns. The violence in March that especially targeted minority population seriously affected the process of minority returns. The figures from UNHCR for individual returns, which were going up each year before, went down 40% compared to 2003. Any large scale returns of minorities presently living in Serbia and Montenegro is highly unlikely. The security situation is considered too bad, there are few job opportunities and social services are very poor. The violence in March 2004 risked the whole return process for minorities, but the voluntary return is still ongoing, albeit on a lower level. These realities should affect the strategic choices of continued support in the area of minority returns. Two of the main areas of both Swedish development support and policy dialogue, has been gender equality and environment. Within gender issues, the screening of the movie Lilja 4-ever created much attention and debate in the Kosovo society about trafficking and women s rights. Another important event was the adoption by the Kosovo Government of a National Action Plan for Gender Equality, launched by UNIFEM. Sweden will be the major donor to fund the implementation of this plan. Together with the ongoing support to local women organisations, through Kvinna till Kvinna, Sweden is a major actor and donor in the area of supporting gender equality in Kosovo. Environment has been another priority area. Even though volumes of contributions have remained low, the support which has targeted the strategies and policies of environment has been of great importance for Kosovo. With Swedish support, a Strategy for Sustainable Development and Environment in Kosovo has been adopted by the Government and Assembly of Kosovo. Right now, ongoing support is helping to produce a more detailed and action-oriented Kosovo Environmental Action Plan (KEAP). The process includes capacity building efforts and involvement of several local stakeholders. The outcome will both help Kosovo embarking on a more ecological sustainable economic development and facilitate its road towards European integration and meeting European standards. The Swedish support to public administration has been focused on the areas of statistics (Statistical Office of Kosovo), cadastre (Kosovo Cadastre Agency) and financial management in municipalities (Ministry of Finance and Economy). The support to the Ministry of Finance and Economy is considered as highly successful and very needed for both the Treasury and financial management in Kosovo. The support to SOK and KCA has targeted crucial and requested areas of economic statistics and property rights registers. However, due to rather low absorption capacity within these institutions, the capacity building programmes have not achieved sufficient results, even if the situation in SOK and KCA has improved considerably over the past couple of years and progress continues to be made. The general problems of supporting the Public Administration involve low absorption capacity and low sustainability (mainly due to low salary levels). It is also rather donor crowded since almost all donors are shifting their support towards capacity building for Public Administration. Sweden will for the future look into supporting particularly the two new Ministries of Local Government and Minorities and Returns. The support in areas of Rule of Law, democracy and human rights, environment and natural resources has mostly gone as expected. Within the area of human rights and civil society support it is crucial that civil society organisations become stronger advocates of human rights in so- 8

ciety and push for political changes. The area of Rule of Law is another donor crowded area and with the reserved responsibility of UNMIK there is little local ownership in the Police and Justice sector. Sweden has however identified two priority areas for support, the Ombudsperson and the Correctional service. In the area of economic development support, Sweden has continued to support micro credits to rural areas. The programme is successful and reaches out to people who cannot get bank loans and who wants to start small-scale businesses. The Swedish support to economic statistics and financial management in municipalities is also very supportive to the economic development in Kosovo. Many donors are now looking into supporting the agriculture sector, which is identified as a key area for economic development, local production and import substitution. However, it is another donor crowded area and it is questionable whether Sweden should also enter that sector. Key issues for dialogue and partnership include improving donor coordination in general. On the field level the donor coordination is quite effective, but there is a lack of a common locally owned national development agenda and of strategic coordination between donors. Sweden is being active to initiate both official and informal donor meetings. Sweden is also in the front row of the discussions of a National Development Plan for Kosovo. Other areas of dialogue include gender and environment, where Sweden has a high reputation and visibility. Also the cultural support, restoration of Kullas, has given Sweden credit. Swedish support to the area of Statistics is well known, while forestry and cadastre/property rights/spatial planning are both new potential areas for stronger policy dialogue and partnership. Energy is an area where Sweden due to active engagement and earlier development support has high credibility in the policy dialogue. 3.2 Overall Country Portfolio Review The effectiveness and sustainability of the programmes depends on many variables. It depends on the programmes set-up but it also depends on the receivers ability to absorb the support. Local ownership is important for sustainability as well as political stability and a conducive environment for development. In Kosovo the effectiveness and sustainability of development support is seriously hampered by lack of absorption capacity, limited local ownership and an unstable political situation. Without the future status of Kosovo solved and without clear, coordinated and comprehensive development plans, there is limitation of the impact of development support. Most of the Swedish development programmes have reached their goals and objectives set out in the project documents. However, the outcome on the development in society as a whole is not equally apparent in some sectors. The low level of salaries and high turn-over of staff in Public Administration is a clear problem for effective capacity building efforts and sustainability of contributions. Sweden is working hard to find the right methods to support most effectively. During the reporting period, efforts have been made to concentrate the development programmes to less and bigger contributions, with engagement in fewer sectors. Support to the infrastructure and reconstruction is being phased out. Projects within the humanitarian aid programmes have almost all ended. Efforts are being made to start discussions with other donors about entering more of programme support. Even though Kosovo is not ready yet for that kind of large-scale programmes, due to lack of National Development Plans and problems 9

with absorption capacity and local ownership, there is a common understanding among the major donors that we must start moving towards programme support rather than smaller project support. Sweden is gradually focusing its development cooperation programme on two major tracks, Democracy and Good Governance, as well as Sustainable Economic Development. The overall plan, according to the Strategy for development cooperation, is to disburse about 100 MSEK annually to Kosovo. In 2003 the disbursement was about 120 MSEK, but as some programmes were being phased out and there were quite long starting-up periods for some new and planned projects, the disbursements in 2004 only reached about 70 MSEK. It was mainly in the sectors of Public Administration, where long processes of evaluation, donor harmonisation and low capacity to develop new project proposals, led to less disbursements than planned. Also in the area of economic and private sector development, there are quite long processes to identify where support should go. Several projects in these areas are being planned with possible disbursements starting during 2005. The Swedish development cooperation is well coordinated and complementary with the EU support to Kosovo. The short-term priorities of the European Partnership are implementation of the Kosovo Standards. Sweden supports the development in several of the key Standards. Swedish support to the implementation of the Action Plan for Gender Equality, minority media and building a stronger civil society are all pointed out in the Standard Functioning of democratic institutions. Swedish support to anti-corruption programmes (channelled through Council of Europe), and capacity building in the prison and penitentiary system are pointed out in the Standard Rule of Law. Continued support goes to supporting minority returns, which is part of the Standard Sustainable returns and rights of communities and their members. Within the Standard of Economy Sweden plans to further support micro-credits to rural areas, as well as to support job-creating activities for small and medium enterprises. A specified action point in the Standards is support to the Statistical Office of Kosovo where Sweden plans to continue its extensive support of capacity building, especially in the area of economic statistics. Within the standard of Property rights Sweden plans to continue its support to the Kosovo Cadastre Agency of institutional capacity building as well as further support to establish a functional property rights register. Regarding the additional complementary priorities in the European Partnership, within the area of Management of Public Finances Sweden has for three years supported an extensive programme of Basic Accounting and Financial Management and introduction of Free-Balance on municipal level. In the area of Sector policies Environment, Sweden plans to continue its support to produce and building capacities for an Environmental Strategy for Kosovo, and in particular a comprehensive Kosovo Environmental Action Plan. Regarding the medium-term priorities in the European Partnership, Sweden plans to continue its earlier support in the areas of Democracy and Rule of Law. Within the area of Human Rights and Protection of Minorities the planned Swedish support of local capacity building within the Ombudsperson Institution is targeted to ensure the viability of the institution. To improve the Economic Situation in Kosovo Sweden shall seek to support a sustainable economic development and focus on the economic development of the rural areas. To support the build-up of a market economy and structural reforms, the financial sector as well as 10

accounting systems will be viewed carefully for possible support. In the area of Sector policies Environment, Sweden plans to pay special attention to finance parts of the implementation of the Kosovo Environment Action Plan. Continued support to secure a sustainable management of the forestry is also planned for. 3.3 Sector-wise Analysis Within the area of Administrative Support, contributions have been given to the Statistical Office of Kosovo (SOK), to the Ministry of Finance and Economy for financial management systems in the municipalities of Kosovo and to the Kosovo Cadastre Agency (KCA). Despite challenges facing public institutions outlined above, improvements are noticeable. During the year, a detailed dialogue process with SOK was carried out which resulted in a slight adjustment of the methodology towards the placement of a long-term adviser in order to ensure a more reliable absorption capacity. A new project that would focus on economic statistics is in the process of formulation, which is expected to be a major contributor to the capacity required for the upcoming census. With regard to the Financial Management Systems, Swedish support was to be concluded at the end of 2004. However, due to delays in implementing technical features, the project could not be completed as planned, and a no-cost extension has been approved. For KCA, all deliveries for the project Production of Digital Cadastral Plans are made with good results. The project Development and Implementation of Immovable Property Right Register ended in June due to some delays from the international company contracted to develop the technical system. During 2004, assessments have been made of the possibility of supporting Kosovo Cadastral Agency on a submitted Project for Development of Land Administration in Kosovo for the next three years. Development of the Infrastructure in Kosovo has been accepted as of greatest importance to achieve higher levels of economic growth. Swedish support has been given to the District Heating, including support to the DH companies, management programmes and the regulatory agency. During the year 2004 Sweden supported the development of a plan for the railway organization, resulting in recommendations that will support the commercial feasibility of the organization. The near-term future possibilities of support for railway will be centred on implementing a gender equality plan in the railway organization, and continuing support to the regulatory agency for furthering the development of a sustainable operating environment. Support in the infrastructure sector is being phased out. Swedish support to Business Development has been exclusively focused on supporting the development of the access to credit in the rural areas. Swedish support has resulted in the creation of the second largest microfinance organization, and the only one with a specific focus on the rural areas. Future Swedish support to this organization is under consideration in order to ensure the long-term sustainability of the organization. Under consideration is also wider sectoral support to the SME environment and to the financial sector. The sector Rule of Law, ongoing and planned support goes to the Ombudsperson, the Correctional Service, anti-corruption programmes and anti-trafficking. The planned support to the Ombudsperson Institution (OIK) is based on a feasibility study done in the spring 2004, resulting in a project document regarding ways to strengthen the capacity of local staff. The plans are to start supporting the OIK in 2005 through 11

the Council of Europe. There are many donors in the area of Correctional Service, but the development of alternatives to prison detention is neglected. A pioneer work with Probation Service has started, but has been met with some resistance. The Swedish Prison and Probation Service, SPPS, made a study visit in early 2004, followed by a LFA seminar in November in order to prepare for a co-operation between the SPPS and the Kosovo Correctional Service, KCS, on the development of a Probation Service. The government has adopted a Plan of Action on how to implement the Strategy against Corruption and the Anti-Corruption law. Sweden supports the implementation of anti-corruption plans through a regional programme carried out by Council of Europe (PACO IMPACT). The support to trafficked victims in 2004 has been carried out through a regional project by IOM and by direct support to a women s shelter in Pristina. Trafficking seems to be on the increase and it is today probable that Kosovo is the regional centre for the trade in human beings. Trafficking of nationals inside Kosovo has increased. The work of criminal organisations is partly made possible thanks to the corruption among officials at all levels and poor performances by the weak police services and border control. A successful awareness campaign about trafficking was conducted through screenings of the Swedish film Lilja 4-Ever at different fora, followed by panel discussions. Video copies of the film have been, and will continue to be lent to local NGOs and international organisations for screenings in smaller groups. The support to Democracy and Human Rights and the civil society has mainly been channelled through three Swedish umbrella-organisations and reached some 25 local NGOs working with media, women s empowerment, children s rights, democracy values etc. Two of these organisations have field staff in Kosovo, which strengthens the knowledge of the organisations and increases the quality of the support. The outcome of the support has so far been in line with the plans. Kvinna till Kvinna put special efforts on a campaign to encourage women to vote in the general elections and on lobbying for the National Plan of Action for Gender Equality. After long preparations, an agreement was signed between Sida and UNIFEM at the end of the year regarding support to the implementation of this National Plan of Action. Through the Swedish NGO Cultural Heritage without Borders, CHwB, support has been given to the preservation of cultural heritage, mainly capacity building for professionals and renovation of a traditional Kulla house and urban environment in Isniq and Decan. CHwB has gained confidence and respect and succeeds in making authorities interested and aware of the cultural heritage in Kosovo. Support to the civil society is still important in building up a democratic society as a balance to the authorities. Media is comparably free in Kosovo, and most of the daily newspapers are self-supporting, why this support should be phased out. Many donors are leaving Kosovo, which puts stress on the NGOs and on the remaining donors. Sida is working out strict guidelines for how to continue the support to the civil society. More than half of Kosovo s population is under the age of 25 and Kosovo has large problems with poor access to social and health services, proper schooling and professional training. The social sector and special attention to youth is important for the future of Kosovo and Sweden has during the year started to look into this area through a regional study on the social sector. The Integrated Area Programmes have according to the Strategy for Kosovo (2002-2004) been phased out for the majority population, but 12

support for ethnic minorities has been maintained. The International Community and UNMIK has put the minority return process high on the agenda and established ORC (Office of Returns and Communities) within UNMIK to guide and coordinate returns and to raise funds for return reconstruction. A study was done that pointed out that Sida should continue its support for minority returns in Kosovo, despite severe political problems and lack of proper pre-conditions for returns. During 2004, the programmes of Lutheran World Federation ended but the support continued to Erikshjälpen who built and/or rehabilitated 60 houses. When the families inhabited their houses Erikshjälpen distributed self sustainability packages to the poorest families, according to their needs. Some families got cows, tools (depending from the activity), motor cultivators (small tractors) etc. Because of the March events most of the Serbs decided not to return as planned, which lead to more returns from other minority groups, such as Ashkalija, Roma and Bosniacs. Continued support for minority returns is planned for 2005. The most important Swedish support in the Environment sector goes to the development of a Kosovo Environment Action Plan (KEAP). By supporting the KEAP, this will assist in better decision making and streamlining of environment expenditures. It is a process-oriented project with many stakeholders aiming at strengthening intra-sectorial contacts. The project is in line with the EU Stabilization and Association process, which demands action leading up to compliance with EU Standards (the acquis). The KEAP aims to establish a realistic framework and time schedule for achieving such standards. The primary objectives are likely to be met by KEAP and are of high interest in the Ministry of Environment. Many will have the opportunity to participate in the process, but political reasons, lack of recourses and interest may lead to less participation. The Kosovo government is young and weak which could make the project sustainability uncertain. But nevertheless the project will increase understanding of the environmental aspects of Kosovo development. An evaluation of the Environment Remediation Project in Gracanica has been undertaken during June-December 2004 and a request has been made for a continued support. In the area of Natural Resources, the project Support to Forestry Education and Training in Kosovo has started. The project is addressing the most immediate training requirements for the Forest Sector. The project should improve capability in managing and utilizing forest resources in a cost efficient manner, aiming at a prosperous and sustainable forest sector giving substantial contribution to the Kosovo economy and to employment. Currently the Forest Institutions are in place but they will remain weak for many years and also factors such as unstable economic and political situation results in difficulties in attracting serious investors and resource persons. The complementary support to the FAO project Implementing a Forest Sector Development Program in Kosovo aim to strengthen the institutional set up of the Kosovo forestry sector and to promote the implementation of the forestry development work. During 2004 the project has already started to give inputs on completing the administrative directives of implementing the new Forest Law, and developing strategies for implementing the legislation. Actions were focused on assisting Ministry of Agriculture, Forestry and Rural Development on reducing illegal logging and improvement of forest management and preparing for parliamentary approval of the new law on hunting of wildlife and drafting directives for the new law. The uncertain future political status of Kosovo is affecting the privatisation processes, while 13

restricted travelling and complicated legal procedures are affecting the project negatively. Project activities such as the reorganisation of the Socially Owned Enterprises, the adoption of new laws and regulations and the implementation of the Kosovo Forest Agency new structure was also negatively affected by political uncertainty. The design flexibility of the project will however provide opportunities to refocus to alternative activities if a problem becomes severe. 14

4. Administrative Issues The Liaison Office of Sweden in Pristina is an integrated office, with staff for political reporting, migration and development cooperation. The administrative resources for the development team are satisfactory. By the end of the year, the Bilateral Associate Expert left the office and his duties have been divided among the national programme officers. The team now consists of one Coordinator, one Programme Officer from Sweden, two National Programme Officers, and one Assistant Programme Officer. Three other local assistants that support the Liaison Office as a whole, are also partly supporting work within the development cooperation. In relation to the amount of development support given to Kosovo, this labour force is on an appropriate level. However, the Assistant Programme Officer is also handling some projects on her own, which occasionally puts her on the same level as Programme Officer. This is an issue that must be looked into for the future. But as the development cooperation is aiming to become more focused, acting in fewer sectors, three programme officers should be enough. 15

Appendix A Kosovo: Disbursed 2004 (Total: 52 216 465) 9,2% 0,3% 5,8% 1,2% 26,1% Democracy Human rights Information & communication 11,7% 0,4% 5,2% 0,4% Infrastructure and urban development Natural resources Pollution, other environmental protection Public administration Social sectors The legal system 39,7% Other Sector SEK % Democracy 612 498 1,2 Human rights 13 656 517 26,1 Information & communication 189 126 0,4 Infrastructure and urban development 20 749 354 39,7 Natural resources 2 706 774 5,2 Pollution, other environmental protection 227 226 0,4 Public administration 6 108 707 11,7 Social sectors 4 768 833 9,2 The legal system 173 935 0,3 Other 3 023 496 5,8 Grand Total 52 216 465 100 16

Appendix B Regional Western Balkans: Disbursed 2004 (Total 103 195 507) 10,3% 0,06% Democracy 6% 0,2% 8,5% 7,1% 0,1% 37,84% Education Financial sector Health care Human rights Information & communication Natural resources Public administration Research 14,8% 9,7% 1,3% 4,1% Social sector The legal system Other Sector SEK % Democracy 39 048 000 37,84 Education 1 375 000 1,3 Financial sector 4 231 658 4,1 Health care 10 000 000 9,7 Human rights 15 309 818 14,8 Information & communication 140 358 0,1 Natural resources 7 173 513 7,1 Public administration 8 802 068 8,5 Research 210 629 0,2 Social sector 6 248 586 6 The legal system 10 586 792 10,3 Other 69 086 0,06 Grand Total 103 195 507 100 17

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Halving poverty by 2015 is one of the greatest challenges of our time, requiring cooperation and sustainability. The partner countries are responsible for their own development. Sida provides resources and develops knowledge and expertise, making the world a richer place. SWEDISH INTERNATIONAL DEVELOPMENT COOPERATION AGENCY SE-105 25 Stockholm Sweden Phone: +46 (0)8 698 50 00 Fax: +46 (0)8 698 56 15 sida@sida.se, www.sida.se