Each country that seeks EU membership needs to be ready to take the reform path in different areas, in BiH’s case not least in agriculture and rural development. With the IPA component intended for rural development of the candidate countries and potential candidates – Instrument for Pre-Accession Assistance in Rural Development (IPARD) – the EU gives these countries an opportunity to improve this area and bring it in line with EU standards. Unfortunately, BiH has not made the needed progress in preparing for IPARD.

Is BiH really committed to the improvement of rural development after delaying on an opportunity to strengthen this sector in the long run using 5 million Euros of EU money for this purpose? Due tolack of preparations in two projects in agriculture and rural development (that aimed to provide the structure for the eventual disbursement of grant assistance to farmers in BiH), the EU was forced to suspend these funds.

The adoption of a national rural development strategy – was also not yet reached. This means that BiH is one of the few countries that has a massive potential in this area but does not have a national strategy.In September, the EU-BiH IPA Monitoring Committee will meet to consider whether these projects should be terminated.

1 mill Euros under IPA 2012 budget planned to support the Agricultural census may also be at risk. Overall, administrative capacities and channels for co-ordination at all levels remain weak, and the co-ordination of policies and activities in the field of rural development, including support measures, are generally insufficient.

Should the two above mentioned projects be terminated, BiH is also on its way to losing the opportunity to benefit from tens of millions of Euros intended for the agriculture sector from a new IPA – IPA II – due to last from 2014 to 2020, and thus diminish development and progress for farmers in BiH.

All of this could have been avoided by the reaching a political agreement on the establishment of structures for the implementation of IPARD and in adopting a strategic rural development plan for the whole country.

There is a high importance played on rural development in BiH – 60% of its population are settled in rural areas. Small Entity budgets, inefficient administration and credit schemes for agriculture prevent this sector from increasing its productivity and competitiveness. The participation of civil society in this field is also very weak.
Achieving the goals will start from the moment when the stakeholders in BiH take concerted action towards meeting their obligations.