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This paper considers the role of the IMF and the World Bank in economic policy-making in post-war Bosnia, after the signing of the Dayton Agreement. The author reviews the political economic and social constraints on policy, the relations between the international financial institutions and the authorities in the region, assesses Bosnia’s debt situation, and the problems caused by donor delays in disbursement of funds and the imposition of political conditionality. The viability of current economic policies are discussed, and also their social impact. The complexity of the economic and political situation in Bosnia means that there are no simple answers, and whatever course of action is chosen is likely to raise as many problems as it resolves. Throughout the paper, the author identifies some of the dilemmas facing economic policy-makers.

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