DONJI LAPAC STRUGGLES AHEAD

C O N F I D E N T I A L SECTION 01 OF 02 ZAGREB 000862 SIPDIS USAID/E&E FOR ACONVERY DEPT FOR EUR/SCE-MNARDI AND INR-RNASH E.O. 12958: DECL: 04/14/2013 TAGS: PGOV PHUM PREF PHUM PREF HR HRPGOV SUBJECT: DONJI LAPAC STRUGGLES AHEAD CLASSIFIED BY: POLOFF MITCH BENEDICT FOR REASONS 1.5 (A) AND (B) SUMMARY -------------- CONFIDENTIAL PAGE 02 ZAGREB 00862 01 OF 02 180844Z ¶1. (SBU) REFUGEE RETURNS, RECONSTRUCTION, AND ETHNIC RELATIONS DOMINATED A RECENT VISIT TO DONJI LAPAC, A MUNICIPALITY OF 3,400 NEAR CROATIA'S WESTERN BORDER WITH BOSNIA. SEVERELY AFFECTED BY THE WAR, BOTH IN TERMS OF DISPLACEMENT OF THE POPULATION AND DESTRUCTION OF INFRASTRUCTURE, THE MUNICIPALITY IS BEGINNING TO SHOW SOME SIGNS OF RENEWAL. THE CHALLENGE WILL BE FOR THE COMMUNITY TO MAINTAIN REALISTIC EXPECTATIONS WHILE AT THE SAME TIME EXPANDING AVENUES FOR CONSTRUCTIVE PARTICIPATION IN LOCAL GOVERNMENT DECISION-MAKING. SEVERELY AFFECTED BY THE WAR -------------- ¶2. (SBU) DONJI LAPAC SUFFERED MIGHTILY IN 1995, THOUGH NOT APPARENTLY IN THE FIGHTING TO RETAKE THE TOWN. IT WAS IN THE DAYS IMMEDIATELY FOLLOWING THE REASSERTION OF CROATIAN CONTROL THAT MANY OF THE SERB-OWNED HOUSES WERE DAMAGED OR DESTROYED. NEARLY EIGHT YEARS LATER SIGNS OF THE WAR REMAIN LARGELY UNCHANGED -- OF 614 DAMAGED OR DESTROYED HOUSES ONLY 54 HAVE BEEN REBUILT. MANY HOMES STILL BEAR ON THEIR WALLS A HAND PAINTED SIGN OF THE TIME -- "DON'T BURN, RIJEKA POLICE" -- INFORMING CROATS OF THE VARIOUS POLICE UNITS THAT WERE EITHER OCCUPYING OR USING THE HOUSES. THE CENTER OF THE TOWN CONSISTS MOSTLY OF BOMBED OUT OR DESTROYED BUILDINGS. THERE ARE NO STORES OR RESTAURANTS, AND THE ONE FORMER HOTEL IS BOARDED UP. ¶3. (SBU) THE TOWN OF DONJI LAPAC DID NOT HAVE A CHURCH OF ANY CREED PRIOR TO THE WAR. THE MUNICIPALITY HAD A TOTAL POPULATION OF 4,600 IN THE 1991 CENSUS, 4,460 OF WHOM WERE CONFIDENTIAL PAGE 03 ZAGREB 00862 01 OF 02 180844Z SERBS. CROATS MADE UP LESS THAN ONE PERCENT OF THE POPULATION. ALMOST ALL THE SERBS FLED THE REGION IN AUGUST 1995 DURING OPERATION STORM. THE GOC THEN INVITED BOSNIAN CROATS AND CROATS FROM OTHER PARTS OF CROATIA (SO-CALLED "SETTLERS") TO INHABIT THE AREA. EVENTUALLY 178 BOSNIAN CROATS AND 254 CROAT SETTLERS ACCEPTED THE GOVERNMENT'S OFFER AND TOOK UP RESIDENCY. HOUSES AND APARTMENTS VACATED BY SERBS WERE OCCUPIED, AND MANY OF THESE WERE OCCUPIED ILLEGALLY -- THAT IS, WITHOUT OFFICIAL DECISIONS GRANTING TEMPORARY OCCUPANCY. TODAY APPROXIMATELY 2,800 SERBS AND 450 CROATS RESIDE IN THE MUNICIPALITY. ¶4. (C) ACCORDING TO MILAN DJUKIC, THE MAYOR, 45 PRIVATELY OWNED HOMES STILL HAVE "TEMPORARY OCCUPANTS," AND NO HOMES HAVE BEEN RETURNED TO THEIR RIGHTFUL OWNERS. HE SAID OF THESE, APPROXIMATELY 35 ARE OCCUPIED BY BOSNIAN CROATS WHO OWN HOMES IN BOSNIA, YET REMAIN IN CROATIA BECAUSE THEY EITHER CANNOT OR WILL NOT RETURN TO BOSNIA. THE MAYOR STRESSED THAT RESTITUTION OF PROPERTY TO SERBS CANNOT BE DEALT WITH UNTIL THE SITUATION OF BOSNIAN CROATS IS RESOLVED. HOWEVER, DJUKIC THEN SAID "TO PREVENT SERBS FROM RETURNING" IS THE POLICY OF THE GOVERNMENT. HE FURTHER ACCUSED THE GOVERNMENT WITH "CONTINUING A POLICY OF ETHNIC CLEANSING OF THE POPULATION." DJUKIC WAS NOT ABLE TO SQUARE HIS INFLAMMATORY ACCUSATIONS AGAINST THE GOVERNMENT WITH HIS CLAIM THAT THE SERB POPULATION OF DONJI LAPAC CONTINUES TO INCREASE, AND WILL AGAIN LIKELY REACH NEARLY 100 PERCENT. THE MUNICIPALITY -------------- CONFIDENTIAL PAGE 04 ZAGREB 00862 01 OF 02 180844Z ¶5. (SBU) DONJI LAPAC MUNICIPALITY IS IN LIKA, CLOSE TO THE BOSNIAN BORDER, OVER THREE HOURS SOUTH OF ZAGREB BY CAR. VERY POOR ROADS EFFECTIVELY ISOLATE THE REGION, WHICH IN WINTER MONTHS CAN BE COMPLETELY CUT OFF FROM THE REST OF CROATIA. THE REGION WAS ORIENTED TRADITIONALLY TOWARD BIHAC IN BOSNIA, WHICH IS LESS THAN 20 MILES TO THE NORTH. LIKE OTHER TOWNS AND MUNICIPALITIES IN THE WAR-AFFECTED AREAS, UNEMPLOYMENT IS A MAJOR PROBLEM. OUTSIDE SMALL-SCALE FAMILY RUN AGRICULTURE, THERE ARE ALMOST NO JOBS OTHER THAN GOVERNMENT JOBS. HOWEVER, THOSE JOBS ARE RARELY OPEN TO SERBS OR RETURNEES. THERE IS NOT A SINGLE SERB ON THE POLICE FORCE OF 60 OFFICERS. ONLY TWO OF THE 30 EMPLOYEES OF LOCAL GOVERNMENT ADMINISTRATION ARE SERBS. DJUKIC TOLD US THERE ARE NO SERB TEACHERS IN THE SCHOOL, ALTHOUGH LATER WE WERE TOLD THAT TWO PART-TIME TEACHERS COME CONDUCT SERBIAN LANGUAGE CLASSES. ¶6. (C) ALL NGOS AGREED THAT PEOPLE FEEL DISAPPOINTED WITH THE MUNICIPAL GOVERNMENT. THERE ARE NO MEANINGFUL AVENUES FOR PUBLIC PARTICIPATION IN THE GOVERNANCE OF THE MUNICIPALITY, AND VERY LITTLE HAPPENS WITHOUT THE MAYOR'S EXPRESSED APPROVAL OR PARTICIPATION. A YOUNG WOMAN WITH A SOCIAL SERVICE NGO SAID THE CURRENT GOVERNANCE STRUCTURE REMINDED HER OF HOW IT WAS UNDER SOCIALISM. THERE IS NO TRANSPARENCY. "THINGS ARE BOUGHT AND SOLD, OR SOMETHING IS RECONSTRUCTED, CONFIDENTIAL CONFIDENTIAL PTQ1018 PAGE 01 ZAGREB 00862 02 OF 02 180845Z ACTION EUR-00 INFO LOG-00 NP-00 AID-00 AMAD-00 CIAE-00 INL-00 DODE-00 SRPP-00 DS-00 EB-00 OIGO-00 FBIE-00 VC-00 TEDE-00 INR-00 IO-00 L-00 VCE-00 AC-01 NSAE-00 NSCE-00 OIC-02 OMB-01 OPIC-01 PA-00 PM-00 PRS-00 ACE-00 P-00 SCT-00 SP-00 IRM-00 STR-00 TRSE-00 USIE-00 ECA-00 PMB-00 DSCC-00 PRM-00 DRL-01 G-00 NFAT-00 SAS-00 SWCI-00 /006W -------------- 57D095 180845Z /38 R 180842Z APR 03 FM AMEMBASSY ZAGREB TO SECSTATE WASHDC 9983 INFO EASTERN EUROPEAN COUNTRIES COLLECTIVE C O N F I D E N T I A L SECTION 02 OF 02 ZAGREB 000862 SIPDIS USAID/E&E FOR ACONVERY DEPT FOR EUR/SCE-MNARDI AND INR-RNASH E.O. 12958: DECL: 04/14/2013 TAGS: PGOV PHUM PREF PHUM PREF HR HRPGOV SUBJECT: DONJI LAPAC STRUGGLES AHEAD AND NO ONE KNOWS HOW, OR WHY, OR WHERE THE MONEY COMES FROM." ACCORDING TO THE NGOS WE SPOKE WITH, THERE IS NO KNOWLEDGE OF THE MUNICIPAL BUDGET, OR HOW DECISIONS ARE BEING MADE. THERE HAVE BEEN NO SPORT, CULTURAL OR OTHER PUBLIC EVENTS UNDER THE MAYOR. THE PROGRAM FOR THE ANNUAL "MUNICIPAL DAY" CONFIDENTIAL PAGE 02 ZAGREB 00862 02 OF 02 180845Z WAS ANNOUNCED SUDDENLY WHEN NGOS RECEIVED INVITATIONS TO ATTEND. AS FAR AS THEY KNEW THERE WERE NO MEETINGS OR OPEN DISCUSSIONS HELD IN ADVANCE TO DEVELOP THE PROGRAM. ONE NGO TOLD US THAT THEY WAITED NEARLY A YEAR TO GET A MEETING WITH THE MAYOR, WHOSE OFFICE IS A STONE'S THROW AWAY. ECONOMIC DEVELOPMENTS -------------- ¶7. (SBU) SOME RAYS OF HOPE EXIST ON THE ECONOMIC FRONT. AGRICULTURE WAS THE MAINSTAY OF THE REGION, AND EFFORTS ARE UNDERWAY TO REVITALIZE THIS SECTOR. MOST FARMERS RAISED LIVESTOCK -- CATTLE, SHEEP, AND HORSES -- AND SOME SMALL-SCALE DAIRY ACTIVITY HAS RESTARTED. PLANS ARE AT THE FEASIBILITY STAGE FOR A LARGE-SCALE POULTRY-PROCESSING PLAN, WHICH WOULD RELY ON LOCAL FARMERS FOR SUPPLY OF CHICKENS. HOWEVER, ACCESS TO FINANCING REMAINS A HUGE OBSTACLE. DUE TO DESTRUCTION OR LOSS OF LAND RECORDS IN THE WAR, FEW FARMERS ARE ABLE TO PROVE OWNERSHIP OF LAND, THE ONLY REAL COLLATERAL THEY HAVE TO NEGOTIATE FOR A LOAN. ZAMIR.NET, A USAID FUNDED NGO PROVIDING INTERNET ACCESS AND TRAINING, ARE WORKING MORE AND MORE WITH YOUNG PEOPLE ON JOB SEARCH SKILLS AND TECHNIQUES, AND THEY ARE TEACHING LOCAL BUSINESSMEN WEB MARKETING SKILLS. ACCORDING TO ZAMIR.NET, EXPECTATIONS ARE HIGH, AND YOUNG PEOPLE IN PARTICULAR WANT TO ACQUIRE COMPUTER SKILLS SO THAT THEY CAN COMPETE FOR NEW JOBS. COMMENT -------------- ¶8. (C) IN PART DUE TO CONCERNS ABOUT THE MAYOR'S OPENNESS TO CONFIDENTIAL PAGE 03 ZAGREB 00862 02 OF 02 180845Z INVOLVING REPRESENTATIVES OF ALL CITIZENS IN THE GOVERNANCE OF THE COMMUNITY, USAID HAS ALLOWED ITS PARTNERSHIP AGREEMENT WITH THE MUNICIPALITY TO LAPSE. DONJI LAPAC FACES THE SAME PROBLEMS CONFRONTING MANY OTHER WAR-AFFECTED AREAS -- ISOLATION, DEPOPULATION, SEVERE UNEMPLOYMENT, LACK OF HOUSING, AND OBSOLETE, DAMAGED OR DESTROYED INFRASTRUCTURE -- PROBLEMS THAT ARE BEYOND THE CAPABILITY OF ONE MAN TO SOLVE, AND WOULD BENEFIT FROM THE CONSTRUCTIVE ENGAGEMENT OF THE BROADER COMMUNITY. "WEB MARKETING FOR BUSINESSMEN" MAY NOT BE THE ANSWER AT THIS POINT IN TIME, BUT WHILE IT MAY SEEM FANCIFUL, IT DOES INDICATE AT LEAST SOME PEOPLE ARE HOPEFUL ABOUT THE FUTURE. THE CHALLENGE IN THE NEAR TERM WILL BE TO MEET AT LEAST MINIMALLY SOME OF THE EXPECTATIONS OF THE COMMUNITY IN TERMS OF JOBS AND OPPORTUNITIES. ROSSIN CONFIDENTIAL >