On 12 July 2007, a Memorandum of Understanding on the establishment of the Public Administration Reform Fund was signed in Sarajevo by representatives of the State and entity-level governments, and Donors who have committed to provide 4.5 million Euro. This is the first time there is such a joint financing agreement between donors and the government of BiH.

The signatories to the Memorandum were Dr. Nikola Spiric, President of the BiH Council of Ministers; Mr Nedzad Brankovic, Prime Minister of the Federation of BiH; Mr. Milorad Dodik, Prime Minister of Republika Srpska; Mr. Mirsad Dapo, Mayor of Brčko District and Mr. Dragan Vrankic, BiH Minister of Finance and Treasury. The signatories for the donors were Ambassador Dimitris Kourkoulas, Head of Delegation of the European Commission to BiH; H.E. Matthew Rycroft, UK Ambassador to BiH; H.E. Mr Karel Vosskuhler, Ambassador of the Netherlands to BiH and Mr. Anders Hedlund on behalf of the Embassy of Sweden.

The Memorandum was signed in the presence of Mr. Miroslav Lajcak, High Representative and EU Special Representative.

Dr. Spiric welcomed the donors for the new financial instrument and said he believes that Public Administration Reform will give good results and that the Strategy will be implemented so as to fulfil the aim of an effective and transparent Administration which is able to resolve the challenges it will meet on the road towards European integration. He added that joint meetings will be held regularly to agree the way forward.

Ambassador Kourkoulas, speaking on behalf of all the donors, expressed his pleasure that the High Representative and EU Special Representative was present to show support for this important reform, adding that they all count on his guidance to bring the process forward. He said that Public Administration reform is a key element in a democratic state and for good governance. This reform will have a direct impact on the life of all the citizens of BiH and is very important for the country’s European future. Without the reform process, he said, it will be impossible to adopt/implement the 100,000 pages of European Union legislation.

The funding will assist the Public Administration Reform Coordination Office with the design and implementation of a comprehensive nation-wide PAR strategy. Unlike most donor funds, these funds will be managed directly by the PAR Coordination Office, which will decide how to prioritise and implement the Strategy that was agreed and adopted at State and entity/district level. This gives the BiH government full ownership of the process and the Memorandum is a sign of the trust the donors have in the government’s capacity to move the process forward.

Public Administration Reform – a high priority for BiH’s European integration process –  aims are:

1.      Open government

2.      De-politicisation – separation between politics and administration; no political appointments. 

3.      Professionalisation of the civil service = ensuring a secure footing and impartiality; training of civil servants – performance orientation for the public sector

4.      Accountability and control – clearly defined administrative procedures and control over public funds.

5.      Overall strength of administrative and judiciary systems in applying and enforcing legal arrangements

The European Union has already committed over 8 Million Euro to Public Administration Reform in BiH, including training of civil servants and strengthening of the PAR Coordinator’s Office and the Civil Service Agency.