The municipality's continued existence was seen as having a negative effect on the efforts of the newly established joint administration in Srebrenica to encourage the free return of refugees and displaced persons return to their homes of origin (a constitutional right). By cutting Srebrenica off from its economic hinterland, it hampered the town's chances of economic recovery and interfered with the creation of the "political, economic and social conditions conducive to the voluntary return and harmonious reintegration of refugees and displaced persons" called for by Annex 7 of the Dayton Peace Agreement.