Check against delivery UNITED NATIONS CONFERENCE ON HUMAN SETTLEMENTS HABITAT II STATEMENT BY PROF. JURE RADIC VICE PRIME MINISTER AND MINISTER OF DEVELOPMENT AND RECONSTRUCTION OF THE REPUBLIC OF CROATIA Istanbul, June 13, 1996 Mr. President, Excellencies, Ladies and Gentlemen, It is a special privilege to have the opportunity to address this gathering, and to express our deepest gratitude to the organisers for the successful preparation of the Conference, and for the hospitality extended here in Istanbul. I would also like to thank all the participants, and through you your governments and peoples, for everything you have done in supporting Croatia during the crucial time when it was fighting off aggressors and establishing itself as an independent force in inter-state relations. During the four years of Serbian and Yugoslav aggression that affected almost one third of the national territory, the Republic of Croatia suffered direct war damages estimated at 26.2 billion USD, 10,512 soldiers and civilians were killed - 264 of them were children, 31,123 people were wounded, and about 700,000 people were displaced. Croatia still cares for about 200,000 displaced persons, together with the same number of refugees from neighbouring Bosnia and Herzegovina. Only the cost of taking care for displaced persons and refugees over the last four years amounted to 1.3 billion USD, while foreign help for this purpose totalled only 105 million USD. The damages from the losses in production, unrealised gains and other indirect damages caused by the war are much greater. Just as an illustration, annual unrealised gains in tourism can be expressed in billions of dollars. Cultural and natural heritage has not been spared from the war destruction either. On the contrary, it has often been deliberately targeted, like the City of Dubrovnik and Plitvice National Park, which are on the UNESCO World Heritage List, as well as hundreds of other cultural monuments. Croatia also suffered almost half a century of communist rule and two decades of the Yugoslav monarchy. During that time, any economic or infrastructural development of the country was slowed down and prevented, and most of Croatian earnings was directed into development of other parts of former Yugoslavia. However, that time is behind us now, the war destruction is also a matter of the past, and the time of hurried and thorough reconstruction and development has started in Croatia. Based on our experience, we believe it our obligation on this occasion to warn the international community of the detrimental effects that war activities have on human settlements. We want to stress the problems that a war torn country has to face during reconstruction of war destroyed settlements and re-establishment of life in these settlements. We have to warn that it is necessary to do everything possible, even on an international level, to prevent war and its consequences. However, we also want to point out the necessity for international co-operation and help in the rehabilitation of the consequences of war, the reconstruction of war torn regions, and the return of life in reconstructed settlements. For the reconstruction of settlements in Croatia, priority has been given to the reconstruction of homes, which was made possible only after liberation. Last year, 5,000 houses were reconstructed with budgetary funds, and this year 20,000 more are planned, and a further 20,000 more for the next year. Along with the housing reconstruction programme, the economy of the damaged regions should be rehabilitated, with special attention given to small family businesses, private enterpreneurship, small plants in. agriculture, industry, and crafts, etc. However, the reintegration of Eastern Slavonia is still ahead of us, along with the destroyed city of Vukovar. Before the war the city had almost 45,000 inhabitants. During the war it has been almost completely destroyed, and will require complex and comprehensive reconstruction. An expert basis for its revitalisation has been prepared, and the programme for the International Reconstruction Project for Vukovar is being prepared in co-operation with UNCHS. At present, the region of Eastern Slavonia is under international transitional management, whose primary tasks include enabling the return of the displaced population, aiding in the social rehabilitation and reintegration of the area into the national system, as well as aiding in comprehensive reconstruction. The Republic of Croatia became involved in UNCHS-HABITAT activities in late 1993. It was a time when the country, struck by brutal destruction, started rehabilitation of grave consequences that the population had suffered, a time when comprehensive reconstruction was started, a time when 1/4 of the national territory was still under temporary occupation. Up till now, UNCHS has led three missions to Croatia, in 1993, 1995, and 1996. The impression of the UNCHS Mission during their last visit in May of this year was very illustrative, for it expressed their delight with the picture of Croatia as a large construction site, as opposed to the picture of a ruin-filled country in 1993. An expert meeting on "Revitalisation of Settlements in the Framework of Post-war reconstruction" was organised in April this year, with UNCHS support. Specific experience gathered in the reconstruction of war-destroyed settlements and cities in Croatia and Bosnia and Herzegovina was elaborated on during the meeting. The Ministry of Development and Reconstruction has worked out and is implementing numerous reconstruction programmes. Reconstruction of entire settlements is under way, with 60 settlements already completed, and further 240 in progress. International expert experience has been used for all the activities, but considerable personal experience has been acquired that can be used in other countries faced with the same predicament. Organised reconstruction process has cut down prices by 1/3, so that good quality and inexpensive houses are being built (approximately 327 USD per m2, with equipment). The fact that the process of transition to a market economy in Croatia is simultaneous with the reconstruction process makes the overall process extremely complex. Extensive transformation in housing, and housing fund and settlement management sectors are being dealt with within the process. In dealing with this problem, experiences of the countries with advanced market economies are widely used. We would like to emphasise the utmost importance attached to international co-operation and aid, especially in the rehabilitation of destroyed settlements and cities. Great human and material suffering require large funds, longer rehabilitation period, and expert experience in the planning and implementation of development projects. On the other hand, the displaced should return to their homes as quickly as possible. Systematic and co-ordinated international co-operation and aid can be very useful in the implementation of our plans for steady development of settlements and their reconstruction. The Republic of Croatia has the resources to maximally participate in and profit from such co- operation. Our task is also to continue large environmental projects, especially those concerning the collection and treatment of sewage waters. This is particularly true for the Adriatic coast, which is one of the environmentally safest and cleanest coastlines in Europe. In order to keep the Adriatic clean, some large potentially hazardous industrial complexes have already been closed down, such as the Bakar Cokery, and the Sibenik Ferroalloys Plant. Ladies and Gentlemen, Allow me to congratulate UNCHS for the successful organisation of this highly important international conference. I would also like to thank you on recognising our problems and cooperating with our country. We believe that the outcome of this Conference will substantially contribute to the development of human settlements. I would also like to extend our gratitude to our kind hosts from Turkey and the City of Istanbul, for their kind hospitality. Our time here will always remain a nice memory. Thank you very much, Mr. President.