Bosnia and Herzegovina

Bosnia and Herzegovina is a country on the Balkan peninsula of South Eastern Europe with an area of 51,129 square kilometres (19,741 sq mi). Bordered by Croatia to the north, west and south, Serbia to the east, and Montenegro to the south, Bosnia and Herzegovina is almost landlocked, except for 26 kilometres of the Adriatic Sea coastline, centered around the town of Neum. The interior of the country is mountainous in the center and south, hilly in the northwest, and flat in the northeast. It is the largest geographic region of the modern state with moderate continental climate, marked by hot summers and cold, snowy winters. Smaller Herzegovina is the southern tip of the country, with Mediterranean climate and topography. Bosnia and Herzegovina's natural resources are highly abundant.

The country is home to three ethnic "constituent peoples": Bosniaks, the most numerous population group of Bosnia, with Serbs in second and Croats in third. Regardless of ethnicity, a citizen of Bosnia and Herzegovina is often identified in English as a Bosnian. In Bosnia, the distinction between a Bosnian and a Herzegovinian is maintained as a regional, rather than an ethnic distinction. The country is politically decentralized and comprises two governing entities, the Federation of Bosnia and Herzegovina and Republika Srpska, with District Brčko as a de facto third entity.

Formerly one of the six federal units constituting the Socialist Federal Republic of Yugoslavia, Bosnia and Herzegovina gained its independence during the Yugoslav wars of the 1990s. Bosnia and Herzegovina can be described as a federal democratic republic that is transforming its economy into a market-oriented system, and it is a potential candidate for membership in the European Union and NATO. Additionally, Bosnia and Herzegovina is a founding member of the Mediterranean Union upon its establishment on July 13, 2008.

Geography

Bosnia is located in the western Balkans, bordering Croatia (932 km) to the north and south-west, Serbia (302 km) to the east, and Montenegro(225 km) to the southeast. The country is mostly mountainous, encompassing the central Dinaric Alps. The northeastern parts reach into the Pannonian basin, while in the south it borders the Adriatic. The country has only 20 kilometers (12 mi) of coastline, around the town of Neum in the Herzegovina-Neretva Canton, although surrounded by Croatian peninsulas it is possible to get to the middle of the Adriatic from Neum. Although the city is surrounded by Croatian peninsulas, by United Nations law, Bosnia has a right of passage to the outer sea. Neum has many hotels and is an important tourism destination.

The country's name comes from the two regions Bosnia and Herzegovina, which have a very vaguely defined border between them. Bosnia occupies the northern areas which are roughly four fifths of the entire country, while Herzegovina occupies the rest in the south part of the country.

The major cities are the capital Sarajevo, Banja Luka in the northwest region known as Bosanska Krajina, Bijeljina and Tuzla in the northeast, Zenica and Doboj in the central part of Bosnia and Mostar, the capital of Herzegovina.

The south part of Bosnia has Mediterranean climate and a great deal of agriculture. Central Bosnia is the most mountainous part of Bosnia featuring predominate mountains Vlašić, Čvrsnica, and Prenj. Eastern Bosnia also features mountains like Trebević, Jahorina, Igman, Bjelašnica and Treskavica. It was here that the 1984 Winter Olympics were held.

Eastern Bosnia is heavily forested along the river Drina, and overall close to 50% of Bosnia and Herzegovina is forested. Most forest areas are in Central, Eastern and Western parts of Bosnia. Northern Bosnia contains very fertile agricultural land along the river Sava and the corresponding area is heavily farmed. This farmland is a part of the Parapannonian Plain stretching into neighboring Croatia and Serbia. The river Sava and corresponding Posavina river basin hold the cities of Brčko, Bosanski Šamac, Bosanski Brod and Bosanska Gradiška.

The northwest part of Bosnia is called Bosanska Krajina and holds the cities of Banja Luka, Prijedor, Sanski Most, Cazin, Velika Kladuša and Bihać. Kozara National Park is in this forested region.

Government and politics

Bosnia and Herzegovina has several levels of political structuring under the federal government level. Most important of these levels is the division of the country into two entities: Republika Srpska and the Federation of Bosnia and Herzegovina. The Federation of Bosnia and Herzegovina covers some 51% of Bosnia and Herzegovina's total area, while Republika Srpska covers around 49%. The entities, based largely on the territories held by the two warring sides at the time, were formally established by the Dayton peace agreement in 1995 due to the tremendous changes in Bosnia and Herzegovina's ethnic structure. Since 1996 the power of the entities relative to the federal government has decreased significantly. Nonetheless, entities still have numerous powers to themselves. The Brcko district in the north of the country was created in 2000 out of land from both entities. It officially belongs to both, but is governed by neither, and functions under a decentralized system of local government. The Brčko district has been praised for maintaining a multiethnic population and a level of prosperity significantly above the national average.

The third level of Bosnia and Herzegovina's political subdivision is manifested in cantons. They are unique to the Federation of Bosnia and Herzegovina which consists of ten of them. All of them have their own cantonal government, which is under the law of the Federation as a whole. Some cantons are ethnically mixed and have special laws implemented to ensure the equality of all constituent peoples.

The fourth level of political division in Bosnia and Herzegovina is the municipalities. The Federation of Bosnia and Herzegovina is divided in 74 municipalities, and Republika Srpska in 63. Municipalities also have their own local government, and are typically based around the most significant city or place in their territory. As such, many municipalities have a long tradition and history with their present boundaries. Some others, however, were only created following the recent war after traditional municipalities were split by the IEBL. Each canton in the Federation of Bosnia and Herzegovina consists of several municipalities, which are divided into local communities.

Besides entities, cantons, and municipalities, Bosnia and Herzegovina also has four "official" cities. These are: Banja Luka, Mostar, Sarajevo, and East Sarajevo. The territory and government of the cities of Banja Luka and Mostar corresponds to the municipalities of the same name, while the cities of Sarajevo and East Sarajevo officially consist of several municipalities. Cities have their own city government whose power is in between that of the municipalities and cantons (or the entity, in the case of Republika Srpska).

As a result of the Dayton Accords, the civilian peace implementation is supervised by the High Representative for Bosnia and Herzegovina selected by the Peace Implementation Council. The High Representative has many governmental and legislative powers, including the dismissal of elected and non-elected officials. More recently, several central institutions have been established (such as defense ministry, security ministry, state court, indirect taxation service etc.) in the process of transferring part of the jurisdiction from the entities to the state.

The representation of the government of Bosnia and Herzegovina is by elites who represent the country's three major groups, with each having a guaranteed share of power.

The Chair of the Presidency of Bosnia and Herzegovina rotates among three members (Bosniak, Serb, Croat), each elected as the Chair for an eight-month term within their four-year term as a member. The three members of the Presidency are elected directly by the people (Federation votes for the Bosniak/Croat, Republika Srpska for the Serb).

The Chair of the Council of Ministers is nominated by the Presidency and approved by the House of Representatives. He or she is then responsible for appointing a Foreign Minister, Minister of Foreign Trade, and others as appropriate.

The Parliamentary Assembly is the lawmaking body in Bosnia and Herzegovina. It consists of two houses: the House of Peoples and the House of Representatives. The House of Peoples includes 15 delegates, two-thirds of which come from the Federation (5 Croat and 5 Bosniaks) and one-third from the Republika Srpska (5 Serbs). The House of Representatives is composed of 42 Members, two-thirds elected from the Federation and one-third elected from the Republika Srpska.

The Constitutional Court of Bosnia and Herzegovina is the supreme, final arbiter of legal matters. It is composed of nine members: four members are selected by the House of Representatives of the Federation,two by the Assembly of the Republika Srpska, and three by the President of the European Court of Human Rights after consultation with the Presidency.

However, the highest political authority in the country is the High Representative in Bosnia and Herzegovina, the chief executive officer for the international civilian presence in the country. Since 1995, the High Representative has been able to bypass the elected parliamentary assembly, and since 1997 has been able to remove elected officials. The methods selected by the High Representative have been criticized as undemocratic. International supervision is to end when the country is deemed politically and democratically stable and self-sustaining.

Foreign relations

EU integration is one of the main political objectives of Bosnia and Herzegovina. The Stabilisation and Association Process (SAP) is the EU's policy framework. Countries participating in the SAP have been offered the possibility to become, once they fulfill the necessary conditions, Member States of the EU. Bosnia and Herzegovina is therefore a potential candidate country for EU accession. The implementation of the Dayton Accords of 1995 has focused the efforts of policymakers in Bosnia and Herzegovina, as well as the international community, on regional stabilization in the countries-successors of the former Yugoslavia. Within Bosnia and Herzegovina, relations with its neighbors of Croatia, Serbia and Montenegro have been fairly stable since the signing of the Dayton Agreement in 1995.

Demographics

Bosnia is home to three ethnic "constituent peoples": Bosniaks, Serbs and Croats. Tensions between the three constitutional peoples remain high and often provoke political disagreements. A Y-chromosome haplogroups study published in 2005 found that "three main groups of Bosnia-Herzegovina, in spite of some quantitative differences, share a large fraction of the same ancient gene pool distinctive for the Balkan area".

According to the 1991 census, Bosnia and Herzegovina had a population of 4,377,033. Ethnically, 1,902,956 (43%) were Bosniak, 1,366,104 (31%) Serbs, and 760,852 (17%) Croats, with 242,682 (6%) Yugoslavs. The remaining 2% of the population - numbering 104,439 - consisted of various other ethnicities. According to 2000 data from the CIA World Factbook, Bosnia's largest ethnic groups are Bosniaks (48%), Serbs (37%) and Croats (14%). There is a strong correlation between ethnic identity and religion in Bosnia and Herzegovina, Muslims constitute 45% of the population, Serb Orthodox 36%, Roman Catholics 15%, and other groups, including Jews and Protestants, 4%.

Large population migrations during the Yugoslav wars in the 1990s have caused a large demographic shift in the country. No census has been taken since 1991, and none is planned for the near future due to political disagreements. Since censuses are the only statistical, inclusive, and objective way to analyze demographics, almost all of the post-war data is simply an estimate. Most sources, however, estimate the population at roughly 4 million (representing a decrease of 350,000 since 1991).

Economy

Bosnia faces the dual problem of rebuilding a war-torn country and introducing market reforms to its formerly centrally-planned economy. One legacy of the previous era is a greatly overstaffed military industry; under former leader Josip Broz Tito, military industries were promoted in the republic, resulting in the development of a large share of Yugoslavia's defense plants but fewer commercially viable firms.

For the most of Bosnia's history, agriculture has been based on small and inefficient privately-owned farms; food has traditionally been a net import for the republic.

The war in the 1990s caused a dramatic change in the Bosnian economy. GDP fell 75% and the destruction of physical infrastructure devastated the economy. While much of the production capacity has been restored, the Bosnian economy still faces considerable difficulties. Figures show GDP and per capita income increased 10% from 2003 to 2004; this and Bosnia's shrinking national debt being positive trends, but high unemployment and a large trade deficit remain cause for concern.

The national currency is the Euro-pegged Convertible Mark (BAM), controlled by a currency board. Annual inflation is the lowest relative to other countries in the region at 1.9% in 2004. The international debt was $3.1 billion (2005 est) - the smallest amount of debt owed of all the former Yugoslav republics. Real GDP growth rate was 5% for 2004 according to the Bosnian Central Bank of BiH and Statistical Office of Bosnia and Herzegovina.

Infrastructure

The Bosnian communications market was completely liberalised in January 2006. Three fixed-line incumbent operators offer services although each offers services predominantly in a particular region of the country. After years of stagnant growth, Internet penetration is on the rise, with broadband services such as cable and ADSL experiencing a surge in popularity. Mobile services are offered by three network operators, which unlike their fixed-line counterparts, offer services on a national level. Mobile data services are available, including high-speed EDGE services. This report offers a concise overview of Bosnia’s telecom sector, covering the regulatory environment, major players and market developments, while offering a wealth of performance and financial statistics.

Tourism

According to an estimation of the World Tourism Organization, Bosnia and Herzegovina will have the third highest tourism growth rate in the world between 1995 and 2020.

Tourism in Sarajevo is chiefly focused on historical, religious, and cultural aspects (see Sites of interest in Sarajevo). Bosnia has also become an increasingly popular skiing and Ecotourism destination.