This study has been developed in the framework of the research programme led by
the International Labour Organization (ILO) and the Graduate Institute of International
Studies in Geneva on “Strengthening employment and related socio-economic dimensions
in response to crises.” It is a case-study of Local Economic Development (LED) projects’
ability to address the challenges of war-affected communities.
This study reviews the demographic, social and economic environment of LED
projects in eastern Slavonia (more specifically in Vukovar-Sirmium County), based on a
desk survey of existing knowledge and data sources. It also looks at the linkages between
reconciliation projects in war-affected communities and LED efforts, based on two
UNDP204/UNOPS205/ILO-led projects in the area. Key analytical outcomes, formulated as
nine lessons learnt, and six key recommendations, are identified. These outcomes can be
summarized as the absence of a tangible connection between LED programmes and
community-reconciliation processes in the region: these two processes have been
following parallel courses. It is found that LED projects in this war-affected area of Croatia
have focused on financial schemes and technical assistance components geared toward
developing networks of local economic stakeholders and particularly entrepreneurs. Such
an effort has proved to be extremely valuable in the economic recovery and development
of the territory. Yet this remains insufficient in post-conflict contexts, where community
reconciliation is an essential element of sustainable development, as demonstrated in the
case of the Vukovar-Sirmium county.
Based on such findings, six key recommendations are provided to strengthen the
complementarity and mutual positive externalities of LED and community-reconciliation
processes in post-conflict territories.