This is our greatest leverage with Bosnian leaders, and it is the key to the progress we have achieved to date. Most Dayton-mandated national institutions and symbols are now in place, though state organizations are limited in their functions so far. The work of the three-member joint Presidency is showing promise, as demonstrated last week at the Stability Pact summit in Sarajevo. With little more than 2 weeks lead time and with nightmarish security and logistical obstacles to overcome, the three worked together to ensure that this summit of more than 40 world leaders went smoothly. With IPTF coordination, local police are undertaking increasingly professional criminal investigations, and police academies are now up and running in both entities to bring new trainees into the police force - a real milestone in police restructuring.
Economic reform is an area where progress has been slow.
But progress toward a functioning, market-based economy is inadequate. This is above all the fault of political leaders who remain committed to political control over economic activity, in order to guarantee their political party's continued dominance. They continue to block privatization and other reforms, and to maintain an economic and regulatory climate that discourages private investment, foreign or domestic. Accordingly, our efforts now will focus on pressing Bosnia's leaders to act decisively in the areas of economic restructuring, privatization and judicial reform in order to secure Bosnia's economic future. Finally, let me turn to our efforts to promote democratization in Serbia.