Chief
of State: Chairman of the Presidency Sulejman TIHIC
(chairman since 28 February 2006; presidency member since
5 October 2002 - Bosniak) Head of Government: Chairman
of the Council of Ministers Adnan TERZIC (since 20 December
2002) Government Type: emerging federal
democratic republic
Population Demographics
Population:
4,498,976 (July 2006 est.) Languages: Bosnian, Croatian,
Serbian Religion: Muslim 40%, Orthodox
31%, Roman Catholic 15%, other 14% Life Expectancy: 78
Economic Information
Currency:
marka (BAM) GDP(per capita): $6,800 (2005
est.) Overview: Bosnia and Herzegovina
ranked next to Macedonia as the poorest republic in
the old Yugoslav federation. Although agriculture is
almost all in private hands, farms are small and inefficient,
and the republic traditionally is a net importer of
food. Industry remains greatly overstaffed, a holdover
from the socialist economic structure of Yugoslavia.
TITO had pushed the development of military industries
in the republic with the result that Bosnia was saddled
with a host of industrial firms with little commercial
potential. The interethnic warfare in Bosnia caused
production to plummet by 80% from 1992 to 1995 and unemployment
to soar. With an uneasy peace in place, output recovered
in 1996-99 at high percentage rates from a low base;
but output growth slowed in 2000-02. Part of the lag
in output was made up in 2003-05. National-level statistics
are limited and do not capture the large share of black
market activity. The konvertibilna marka (convertible
mark or BAM)- the national currency introduced in 1998
- is pegged to the euro, and confidence in the currency
and the banking sector has increased. Implementation
of privatization, however, has been slow, and local
entities only reluctantly support national-level institutions.
Banking reform accelerated in 2001 as all the Communist-era
payments bureaus were shut down; foreign banks, primarily
from Western Europe, now control most of the banking
sector. A sizeable current account deficit and high
unemployment rate remain the two most serious economic
problems. The country receives substantial amounts of
reconstruction assistance and humanitarian aid from
the international community but will have to prepare
for an era of declining assistance.
Background:
Bosnia and Herzegovina's declaration of sovereignty
in October 1991 was followed by a declaration of independence
from the former Yugoslavia on 3 March 1992 after a referendum
boycotted by ethnic Serbs. The Bosnian Serbs - supported
by neighboring Serbia and Montenegro - responded with
armed resistance aimed at partitioning the republic
along ethnic lines and joining Serb-held areas to form
a "Greater Serbia." In March 1994, Bosniaks
and Croats reduced the number of warring factions from
three to two by signing an agreement creating a joint
Bosniak/Croat Federation of Bosnia and Herzegovina.
On 21 November 1995, in Dayton, Ohio, the warring parties
initialed a peace agreement that brought to a halt three
years of interethnic civil strife (the final agreement
was signed in Paris on 14 December 1995). The Dayton
Peace Accords retained Bosnia and Herzegovina's international
boundaries and created a joint multi-ethnic and democratic
government charged with conducting foreign, diplomatic,
and fiscal policy. Also recognized was a second tier
of government comprised of two entities roughly equal
in size: the Bosniak/Croat Federation of Bosnia and
Herzegovina and the Bosnian Serb-led Republika Srpska
(RS). The Federation and RS governments were charged
with overseeing most government functions. The Office
of the High Representative (OHR) was established to
oversee the implementation of the civilian aspects of
the agreement. In 1995-96, a NATO-led international
peacekeeping force (IFOR) of 60,000 troops served in
Bosnia to implement and monitor the military aspects
of the agreement. IFOR was succeeded by a smaller, NATO-led
Stabilization Force (SFOR) whose mission was to deter
renewed hostilities. European Union peacekeeping troops
(EUFOR) replaced SFOR in December 2004; their mission
is to maintain peace and stability throughout the country.
Independence Day: 1 March 1992
(from Yugoslavia; referendum for independence was completed
1 March 1992; independence was declared 3 March 1992)
Capital City: Sarajevo Administrative divisions: 2
first-order administrative divisions and 1 internationally
supervised district* - Brcko district (Brcko Distrikt)*,
the Bosniak/Croat Federation of Bosnia and Herzegovina
(Federacija Bosna i Hercegovina) and the Bosnian Serb-led
Republika Srpska; note - Brcko district is in northeastern
Bosnia and is an administrative unit under the sovereignty
of Bosnia and Herzegovina; the district remains under
international supervision
