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IFAD’s first two projects in Bosnia and Herzegovina responded to the need for emergency assistance in a country devastated by war. Once that need diminished, IFAD’s third project marked a transition from immediate relief and rehabilitation to long-term sustainable development, helping stimulate growth in farming-related and non-agricultural rural businesses. The project gave special attention to youth and to women, who with training and microfinance services, were able to kick-start small businesses that are benefiting their communities.

Bosnia and Herzegovina -- As a single mother, Ljubica Rados was struggling to earn enough to support herself and her children. She lives in the municipality of Gornji Vakuf - Uskoplje, an area that is famous for its forest vegetation. With some past experience as a retailer, she decided to use her experience in the trading business to set up her own business collecting and trading forest products. She was taking on a major responsibility, but she soon found people to work with, gained their trust and began to build up her business. In 2000 she registered her company, Flores, which specializes in medicinal herbs and mushrooms for export.

Bosnia and Herzegovina, Republic of Srpska -- Kalinovik is a small town in the Bosnian Serb Republic of Srpska within Bosnia and Herzegovina. Once a prosperous Austro-Hungarian military stronghold, it is now a poor rural municipality on the country’s border, with a population of only 2,500. It has little to offer its inhabitants in the way of leisure pursuits. There are no cinemas, beauty salons or theatres. Many people have left in search of better lives elsewhere.

For many of those who farmed before the war in what has now become Bosnia-Herzegovina, there was little incentive to return to their homes after the conflict ended. With farms and farm equipment damaged or destroyed and animals lost, there was simply no means to make a living and support families. Through the IFAD Small Farm Reconstruction and Development Project small-scale farmers and labourers, most of whom were displaced during the war, have received small livestock packages to help them restart meat and dairy production.

USAID has supported the rebuilding process in Bosnia-Herzegovina with a variety of activities. One project is specifically directed toward providing small grants and loans to the most economically disadvantaged of the returnees. Depending on a recipient's circumstances, the loans are either repayable in kind, or in part with a low interest rate.