1. 1 PROGRESS ON INSTITUTION BUILDING Mr. Adnan Terzić, Prime Minister of Bosnia and Herzegovina International conference on development of Bosnia and Herzegovina CG Meeting on Bosnia and Herzegovina Sarajevo, September 22 and 23, 2004 REALIZING BOSNIA AND HERZEGOVINAS EUROPEAN POTENTIAL: FROM POST-CONFLICT TO PRE-ACCESSION

2. 2 COUNCIL OF MINISTERS OF BIH Ministry of Foreign Affairs Ministry of Foreign Trade and Economic Relations Ministry of Civil Affairs and Communications 1996 - 2

3. 3 Ministry for Human Rights and Refugees Ministry of Foreign Affairs Ministry of Foreign Trade and Economic Relations Ministry of Civil Affairs and Communications Ministry of Treasury of BiH Institutions Ministry for European Integrations 2000 - 3 COUNCIL OF MINISTERS OF BIH

4. 4 Ministry for Human Rights and Refugees Ministry of Foreign Affairs Ministry of Foreign Trade and Economic Relations Ministry of Finance and Treasury Ministry of Civil Affairs Ministry of Communications and Transport Ministry of Justice Ministry of Security 2002 - 4 COUNCIL OF MINISTERS OF BIH

5. 5 Ministry for Human Rights and Refugees Ministry of Foreign Affairs Ministry of Foreign Trade and Economic Relations Ministry of Finance and Treasury Ministry of Civil Affairs Ministry of Communications and Transport Ministry of Justice Ministry of Security Ministry of Defense 2003 - 5 COUNCIL OF MINISTERS OF BIH

6. 6 Secretariat General Board for Internal Affairs Board for Economic Issues 6 Directorate for European Integrations, completely functional COUNCIL OF MINISTERS OF BIH

7. 7 2000 Office for Public Audit established 2001 State Border Service (DGS) established; later on evaluated as one of better in the region 2000 - 2002 Treasury policies introduced on the State, entity, cantonal, and municipality levels 2003/4 Indirect Taxation Authority established 2003/4 BiH Attorney Office established 7 OTHER INSTITUTIONS

8. 8 BiH Veterinary Office Fitosanitary Protection Office Institute for Standardization of BiH Institute for Measures of BiH Institute for Intellectual property of BiH Acreditation Institute of BiH 8 IN THE PREVIOS PERIOD THE FOLLOWING INSTITUTIONS HAVE BEEN ESTABLISHED:

9. 9 BiH Agency for Statistics FBiH Institute for Statistics RS Institute for Statistics 9

10. 10 BiH Agency for Civil Service FBiH Agency for Civil Service RS Agency for Civil Service 10

11. 11 RULE OF LAW The following bodies have been established: High Judicial and Prosecutioral Council Court of BiH and BiH Constitutional Court operative, included in the budget 11

12. 12 COORDINATION OF VARIOUS LEVELS OF AUTHORITY IN BIH Coordination Board for European Integrations and Economic Development In total, 22 sessions have been held, while more than half (13 sessions) have been held in 2003 and 2004 Coordination Board for Cooperation between BiH Council of Ministers and Brcko District Coordination of Directorate for European Integrations 12

13. 13 BiH Ministry of Security BiH Interpol Office DGS State Agency for Investigation and Protection (SIPA) State Coordinator for Combating Human Trafficking 13 INSTITUTIONS FOR STRENGTHENING OF SECURITY AND FIGHTING ILLEGAL IMMIGRATION HAVE BEEN STRENGTHENED:

14. 14 PROCESS OF BUILDING INSTITUTIONS IS BEING INTENSIFIED CONSTANTLY 25 new institutions have been established on the state level since Dayton implementation of Mid-Term Development Strategy and prospects of signing Stabilization and Association Agreement require stregthening and building of 111 institutions a)Reform of Police b)Reform of System of Public Procurements c)Planning of Economic Development IMPORTANT REFORMS to follow are:

15. 15 IMPOSING LAWS AND DECISIONS BY THE HIGH REPRESENTATIVE IS BECOMING RARE 15 2002 2003 2004