Dubel Mykhaylo, Ph.D. in International Economic Relations, Senior Lecturer of the Department of Political Science and Public Administration, Vasyl’ Stus Donetsk National University, Vinnytsia, Ukraine

ORCID ID: 0000-0003-2229-0419
e-mail: m.dubel@ donnu.edu.ua

The Role of Financial Instruments of International Assistance in the Post-War Reconstruction of the Territories of Bosnia

Abstract. Introduction. For domestic scholars, the issue of post-war reconstruction is among the most relevant. To conduct predictive research, it is possible to analyze foreign cases, including the experience of Bosnia’s reconstruction.

Purpose. The purpose of this article is to determine the role of financial instruments of international aid in Bosnia’s post-war reconstruction.

Results. Post-conflict reconstruction, supported by international donor assistance, contributed to accelerating Bosnia’s economic growth and reducing poverty. Between 1996 and 1999, international assistance averaged 26 percent of GDP. The partnership between Bosnia and Herzegovina and the World Bank played a crucial role in the country’s recovery and development. Once it was recognized that each sector required a different type and level of support, the decision was made to finance multiple projects in various sectors rather than one large project, and to seek donors to co-finance operations. Through sixteen emergency initiatives, the World Bank made significant efforts to launch reconstruction without waiting for financial normalization or Bank membership.

Conclusions. The findings of this study may be used to shape a vision for Ukraine’s post-war reconstruction. Implementation of the recovery strategy should begin while the war is still ongoing. Most importantly, the strategy should build on the strengths of the existing private sector, industries, and production structures, while expanding domestic sources of growth. Ukraine should consider a targeted foreign direct investment policy aimed at attracting investment in the manufacturing sector, where the country already possesses human capital capable of enhancing competitiveness. The implementation of active industrial and other policies requires strong institutional support and adequate state capacity.

Keywords: post-war reconstruction; financial instruments; international aid; territorial development management; World Bank; Bosnia; economic policy; foreign experience.

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