Bulldozer Process

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• 1- Introduction
• 2- Bulldozer Initiative
• 3- Lessons learned

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BiH political overview stability - coexistence
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BiH economic overview On the road to better
climate

• Infrastructure mostly there
• 5 billion dollars spent on BiH
• Declining donor assistance
• GDP (KM 9B) 5,5 growth rate
• Current account deficit exports 1/3 imports
• Debt KM 5B
• 2002 FDI 120 2001
• Average salary KM 470

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Reform Does a conventional recipe work?
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An answer the Bulldozer initiative
Launched in November 2002 as a mechanism to
bulldoze away the roadblocks to a good business
climate
Two goals 1- Improve business climate by
enacting much needed reforms 2- Organize the
business community into an active lobby for
reform
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A business development methodology
Engaging the civil society Empowering the
constituency
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Growing regional competition
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Welcoming business climate?
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Can you follow these directions?
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Red tape - absurd fees
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Tend the tree
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Bulldozing through the maze
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Backtracking to origin of problem
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Phase I timeline
Bulldozer Committee 2nd Plenary Session Vetting
15 reforms
Bulldozer Committee 1st Plenary Session Vetting
8 reforms
Reform Enactment by 3 Parliaments
Bulldozer Committee 3rd Plenary Session Vetting
27 reforms
Bulldozer Committee 50 REFORMS PUBLISHED IN
PRESS
Joint Parliament Meeting in National Theatre
with BC
BC Public meeting ZENICA
BC Public meeting MOSTAR
BC presents 50 reforms to CoM, RS, FBiH in
JOINT GOVERNMENT SESSION
BC Public meeting BRCKO
BC Public meeting TUZLA
BC Public meeting ORASJE
BC Public meeting BANJA LUKA
HR meeting Young Entrepreneurs TRAVNIK
HR Press Conf. To Present BC 50 reforms
Jan 29
Feb 07
Feb 13
Feb 20
Feb 25
Mar 03
Mar 24
Dec 17
Nov 12
Feb 12
Jan 27
Jan 16
Apr 22
Mar 25
Mar 12
5 0 E C O N O M I C R E F
O R M S I N 1 5 0 D A Y S
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Submitting roadblocks
R01 Harmonization of LLC Minimum Capital
Requirement R06 Removing mandatory fee for
shelter in FBiH R20 Statewide amendments to
provisions on training and volunteer labor R24
Easing export of drugs and medicines from BiH
R28 Removing need for registration of foreign
representative office in both entities R35
Transform Chambers Membership in RS from
Compulsory to Voluntary R43 Easing collateral
transferability R47 Liberalization of Inter
Entity Transport Regulations for Helping Refugee
Return Tansportation
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Processing and filtering

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Participatory mechanism
PUBLIC MEETING
PLENARY SESSION
HANDING 50 REFORMS OVER
PUBLIC INFO CAMPAIGN
6 PARLIAMENTS IN 1 ROOM
PROTOCOLS FOR PROSPERITY
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Results
Phase I
Entrepreneurs
Politicians
50 economic reformsBelief in process Brand
recognitionDealing on details and
merits Breakthrough ethnic and political
divisionsPride and ownership
?
Protocol for prosperity
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Phase II
Unlocking local wealth
50 new reforms by Dec. 4th Declining role of OHR
(coordinating unit) IC loses veto
power Decentralized processing6 regional
committees1 specialized committee on
agricultureNational and local reforms Involvement
of trade unions Bulldozer counterpart in
governments Emergency reform units
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Phase II timeline
6 Regional Bulldozer Committees (BC)
Launched Herzegovina Northwest Northeast Central
Bosnia Sarajevo Region Banja Luka Region
50 reforms completed Handover to
Governments and Parliaments through Emergency
Reform Unit.
Local Public Outreach campaigns (TV and Radio
spots, media)
Creation of BC dialogue working groups
Public meetings with local authorities, trade
unions and NGOs
Governments and Parliaments sessions
All Phase II 50 Reforms Enacted
Agriculture and Natural Resources Committee
established
Bulldozer Phase II 1st Plenary Session Vetting
18 reforms
Bulldozer Phase II 3rd Plenary Session Vetting
17 reforms
Bulldozer Phase II 2nd Plenary Session Vetting
15 reforms
End of Bulldozer Phase I Signature
Protocols for Prosperity
Introduction to Parliaments and Governments
FBIH State RS
Governmental Emergency Reform Unit established
Presentation to Parliaments and Governments
FBIH State RS
Link with regional BCs and public outreach
July 29
Sept 4
Sept 20
Sept 25
June 14
June 4
Aug 1
July 4
Dec 4
Nov
Oct
UNLOCKING LOCAL WEALTH 50 NEW REFORMS THROUGH
DIALOGUE
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Lessons learned
Bottom-up reforms are a necessary complement to
top-down approach
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Lessons learned
Transition economy - Transition politics
Business
Politics
Com./Dictat./Fund.
Capitalism
Over-regulation
Deregulation
Political interests
Free-market
Institutions
Etat providence
Bulldozer started to create a sense of obligation
by politicians (and IC) to satisfy their
constituents
Bulldozer has emboldened people to come forward
with a recognizable voice and legitimacy
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Applicability to post-conflict/transitional
countries
Necessary conditions It Takes Three to Tango
Responsive Government
Business Community
Political will Capacity Leadership
Strong leadership that people believe is an
alternative to former system IC, third party,
mentor country
Would Bulldozer have worked without the High
Representative?
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Applicability of business development model
Business planning Development planning
Need - Appeal
Spill-over effect
Mechanism along value chain
-gt Step into vacuum -gt Tap into nascent
desire for people to see their ideas
materialize
-gt Consumer to consumer model -gt Business
to Media to Politicians to Unions to
Mayors to Citizens
-gt Organizational capacity building -gt Processing
mechanism -gt Repetitive process -gt Incentives
Could Bulldozer methodology work with other
issues and constituencies?
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More information?
www.ohr.int/ohr-dept/econ/bulldozer-initiative/ind
ex.asp Benjamin Herzberg Senior Business
Development Advisor Office of the High
Representative Emerika Bluma 1 71000
Sarajevo Bosnia and Herzegovina Tel [phone]
818 Fax [phone] email
benjamin.herzberg_at_ohr.int