Bosnia and Herzegovina - World Bank.doc

DRAFT Bosnia and Herzegovina Local Level Institutions and Social Capital Study Vol. 1 World Bank, ECSSD June 2002  Table of Contents Acknowledgments i Acronyms and Abbreviations ii Executive Summary and Key Findings iii Introduction 1 Conceptual and Policy Context 1 Current World Bank Work on Bosnia-Herzegovina 3 Study’s Operational Definition of Social Capital 3 Specific Objectives of the Study 4 Methodology 4 Organization of the Study 6 Part I. Interpersonal Trust, Social Cleavages and Formal Institutions 9 A. Decline and Changes in Interpersonal Trust 9 Main Changes in Micro-Level of Social Capital 9 Invitations and Material Assistance as Indicators of Social Capital 11 Informal Practices of Material Assistance and Co-operation 14 Links Between Micro-Level and Macro-Level of Social Capital 17 B. Social Cleavages and Population Movements 18 Main Social Cleavages in Bosnia-Herzegovina 18 Population Movement and Local Social Cleavages 21 Socio-Economic Dimensions of Local Social Cleavages 24 Interpretations of Local Social Cleavages and Impact 27 Recognition of Conflicting Interests and Practical Compromises 29 C. Social Cleavages and Social Welfare System 31 Ethnic and Statutory Fragmentation of the Social Welfare System 31 Withering of the Comprehensive Social Safety Net 33 Institutional Fragmentation and Financial Exhaustion 35 Role of Local Level Institutions in Social Policy Implementation 40 Limits of Social Policy in a Context of Massive Poverty and Unemployment 41 D. Fragmentation of Local-Level Institutions 42 Impact of War on Local Level Institutions 42 Persistence of Parallel Municipal Institutions After the War 43 Parochialism as an Obstacle to Inst