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Bosnia and Herzegovina

 Flag of Bosnia and Herzegovina

Last reviewed: 22 September 2009

Country information

Map of Bosnia and Herzegovina

Area: 51,200 sq km (19,970 sq mi)
Population: 4.0m (July 2005 estimate)
Capital City: Sarajevo
Peoples: Bosniak (Muslim), Croat, Serb, Others
Languages: Bosnian, Croatian, Serbian
Religions: Islam (Bosniaks), Roman Catholicism (Croats) and Orthodox (Serbs)
Currency: KM, Convertible Mark, pegged to the Euro
Main political structures: State-level Government/Parliament, two Entity-level Governments/Parliaments – see below.
Major political parties:
State-level Government: Coalition consists of Party for Democratic Action (SDA) and Party for BiH (SBiH) (Bosniak); Party of Independent Social Democrats (SNSD)  (Bosnian Serb) and Croatian Democratic Union of Bosnia and Herzegovina (HDZ BiH) and Croatian Democratic Union 1990 (HDZ-1990)  (Bosnian Croat).
Opposition: Social Democratic Party (SDP) (multi-ethnic), Party of Democratic Progress (PDP) and Serbian Democratic Party (SDS) (Bosnian Serb).
Federation of BiH Government: Party for Democratic Action (SDA), Party for BiH (SBiH), Croatian Democratic Union of BiH (HDZ-BiH), Croatian Democratic Union of BiH-1990 (HDZ-1990),  Party of Independent Social Democrats (SNSD).
Republika Srpska Government: Coalition consists of Party of Independent Social Democrats (SNSD), Socialist Party of RS (SPRS), Democratic People’s Union (DNS), and Party for Democratic Action (SDA).
Head of State: Tripartite Presidency (with rotating chair) consisting of Zeljko Komsic (Bosnian Croat - SDP, Chair until March 2010), Haris Silajdzic (Bosniak – SBiH), Nobojsa Radmanovic (Bosnian Serb SNSD). 
Federation of BiH: Borjana Kristo (Bosnian Croat - HDZ BiH)
Republika Srpska: Igor Radojicic - Acting President (Bosnian Serb - SNSD)
Prime Ministers: State Level; Nikola Spiric (Bosnian Serb - SNSD).
Federation of BiH: Mr Mustafa Mujezinovic (Bosniak - SDA).
Republika Srpska: Milorad Dodik (Bosnian Serb – SNSD).
Foreign Minister: Sven Alkalaj (Other (Jewish) - SBiH)
Membership of International Institutions: United Nations (UN), Organisation for Co-operation and Security in Europe (OSCE), Council of Europe.

ECONOMY

Basic Economic Facts

GDP: US $15.139 billion (2007, World Bank)
GDP per capita: US $3,808 (IMF World Economic Outlook April 2007)
Real GDP growth in 2008: 5.5% (IMF World Economic Outlook April 2009)
Unemployment Level: 23.4% approx. (Labour Force Survey 2008)

Developments since independence

Since 1995, GDP has more than tripled and merchandise exports have increased tenfold. However, economic growth has yet to reach pre-war levels and around 20% of the population continue to live below the poverty line and approximately 30% are near it. Progress on structural reforms has been uneven. The banking sector has been largely privatized and modernized, and other financial sector reforms have been well advanced. Yet privatization of other state-owned companies has occurred at a slow pace, and the private sector’s contribution to GDP is still lower than in most other countries in the region. Early attempts at privatization have resulted in diluted ownership and weak governance, and large-company divestiture has been painfully slow. The business environment is not investor-friendly. BiH must begin to attract significant levels of foreign direct investment if it is to boost its GDP growth.

Recent economic performance


Today, BiH's economic growth continues to be generated largely by post-war reconstruction funded by external aid.  The macro-economic situation remains weak but stable, underpinned by a fully convertible currency (the Bosnian Mark (BAM), which has a fixed parity with the Euro), low single digit inflation and relatively tight fiscal policies supported by the IMF. Post-war growth rates of 30% had stabilised at around 5% before the global economic downturn.  With its official GDP of US$3,808 per capita in 2007, BiH falls into the category of lower middle-income countries. Approximately 62% of this comes from the service sector, 29% from industry and 9% from agriculture.

Despite the improvements, the pace of economic reform in BiH needs to be accelerated. Foreign Direct Investment - although increasing - is still hindered by excessive layers of bureaucracy, political interference and corruption. BiH is currently ranked as 119th in IFC’s ‘Doing Business 2010’ report. Over the coming period, priority areas for the BiH State and Entity Governments, with support from the international community, will include the creation of a Single Economic Space to include both Entities, tighter control over public finances and the removal of barriers to investment.

Further information about BiH’s economy can be found at UK Trade & Investment Country Profile: BiH.

HISTORY

Longer Historical Perspective

The Kingdom of Serbs, Croats, and Slovenes was formed in 1918 in the aftermath of the First World War and changed its official title to Yugoslavia in 1929. Following the Second World War, communist Partisan Leader, Marshall Tito, took control of the country and ruled it for the next 40 years. Although presiding over a communist regime, Marshall Tito successfully steered his own path between East and West and was a founder member of the Non Aligned Movement of countries in the United Nations.

Recent History

Following Tito's death in 1980 Yugoslavia began slowly to disintegrate in a process that culminated in the Balkans wars of the early 1990s. Slovenia, Croatia and Republic of Macedonia declared their independence in 1991, BiH in 1992. The remaining republics Serbia and Montenegro declared a new Federal Republic of Yugoslavia in 1992 and, under Slobodan Milosevic, undertook military interventions to achieve the integration of ethnic Serbs into 'Greater Serbia'. The policy was ultimately unsuccessful and prompted a co-ordinated military response from the United Nations and the international community, primarily in BiH, which eventually led to the Dayton Agreement of 1995. This agreement determined the external borders and constitutional structure, which BiH operates under today. In 2006 Montenegro declared independence from Serbia, and Kosovo declared independence in early 2008.

INTERNATIONAL RELATIONS

BiH's Relations with Neighbours

BiH’s relationship with Croatia has changed substantially since the death of Croatian President Franjo Tudjman in January 2000. The two countries have reached further agreements on refugee return across the BiH/Croatia border, and have reduced Croatia's subsidies to the Bosnian Croat army, which now are also more transparent. In December 2000, the two countries signed a Free Trade Agreement, which was implemented almost immediately.

BiH's relations with Serbia have improved significantly since the collapse of the Milosevic regime, with diplomatic relations being established on 15 December 2000. During the BiH chairmanship of the South East European Co-operation Process (SEECP) in 2003-2004, the Foreign Ministers of the Former Yugoslavia met with their wider South East European counterparts to reinforce commitment to good-neighbourly relations, stability, security and co-operation in South Eastern Europe.

The October 2006 election campaign in BiH saw a public strengthening of ties between the Republika Srpska and Serbia, culminating in the signing of a revised Special Parallel Relations Agreement on 26 September 2007 in Banja Luka although both sides stressed that the agreement in no way undermined the sovereignty, territorial integrity or political independence of BiH.

However, there remain potential tensions in BiH’s relations with Serbia. On 26 February 2007, the International Court of Justice (ICJ), the principal judicial organ of the United Nations, pronounced its judgment on the case filed by BiH against Serbia in March 1993, claiming violations of the UN Genocide Convention during the 1992-1995 Bosnian War.  The ICJ found that Serbia had not committed genocide through its organs or persons and had not conspired to commit genocide, nor incited the commission of genocide. However the court ruled that Serbia did not use its influence to prevent the genocide of Bosnian Muslims in Srebrenica in July 1995, and that Serbia's leaders had failed to comply with their international obligations to punish those who carried out the massacre - calling for the immediate transfer of Ratko Mladic and Radovan Karadzic to the International Criminal Tribunal for the former Yugoslavia (ICTY). Members of the international community called upon both countries to respect the judgement and react constructively.

On the 17 February 2008 Kosovo declared independence from Serbia, BiH has not recognised Kosovo as an independent nation. In February and March 2008 there were a number of demonstrations in the RS protesting Kosovo independence and on 21 February 2008 RS PM Dodik appeared at a demonstration in Belgrade to underline the RS’s solidarity with the Serbian people. In addition, following Kosovo independence there has been an increase in anti-Dayton rhetoric and secessionist threats in the RS; on 21 February 2008 the Republika Srpska National Assembly (RSNA) passed a resolution linking the position of the RS in BiH to that of Kosovo in Serbia and describing the circumstances under which the RS would be entitled to secede.

BiH's RELATIONS WITH THE INTERNATIONAL COMMUNITY

The Peace Implementation Council (PIC)

Some 40 nations and several international organisations including the United Nations, NATO, and the Organisation for Security and Co-operation in Europe (OSCE), met in London in December 1995 to consider how best to monitor and carry forward compliance with the Dayton Peace Agreement. This group became known as the Peace Implementation Council (PIC).  The PIC concluded that work on the military aspects of Dayton (e.g. demobilisation and separation of forces) could be conducted through existing structures, such as NATO. But the civilian elements of Dayton, including the introduction of a new constitution and the holding of elections, required the creation of new administrative machinery. Hence, a 'High Representative' was appointed to lead and co-ordinate the civilian implementation programme, supported by the PIC.

Role of the EU

EU Special Representative Office (EUSR)

As BiH moves towards EU integration, the EU has in principle decided to increase its presence in BiH. Following closure of the OHR, a reinforced EUSR office will play a lead co-ordinating role for the International Community. The future EUSR is likely to play a central part in co-ordinating meetings of the international community and engaging with BiH counterparts in order to maintain peace and stability and facilitate the reform process.  

EU Force (EUFOR)

The EU authorised a European Security Defence Policy (ESDP) mission known as EUFOR, Operation Althea, to take over from the outgoing NATO Stabilisation Force (SFOR). The mission began on 1 January 2005 and was initially led by British Commander, Major General Leakey, who was replaced by the Italian General Chiarini in December 2005. The current Commander is the Italian Major General Stefano Castagnotto who took over command in December 2008.

EUFOR is tasked with maintaining a safe and secure environment in BiH, assisting the local authorities in the fight against organised crime and supporting the work of the ICTY.

After an extended period of stability, significant improvement in local law enforcement capacity and the peaceful conduct of the October elections, the EU took a decision in principle on 11 December 2006 to begin the process of reducing EUFOR from a large dispersed force structure to a smaller centralised one. On 27 February 2007, the EU Political and Security Committee gave final approval to reduce force levels from approximately 6000 to 2500 troops. This EU decision was based on unanimous military advice regarding the stable security situation in BiH.

This reduction in force levels will allow BiH to take more control of its own affairs. In  2007, the UK’s  contingent to EUFOR reduced significantly when the last British battalion left Banja Luka. The UK now contributes a small number of seconded officers to EUFOR headquarters in Sarajevo.  

Stabilisation and Association Agreement (SAA)

The EU's stated aim in South East Europe is to create a zone of peace and stability through full implementation of the Dayton Peace Agreement and economic renewal. Following the 1999 Kosovo crisis, the EU offered the prospect of new Stabilisation and Association Agreements (SAAs) between the EU and Bosnia and Herzegovina, Croatia, Macedonia, Albania and the Federal Republic of Yugoslavia (FRY – now Serbia and Montenegro). These could eventually lead to EU membership, once all necessary criteria have been met.

In September 2002 Commissioner Chris Patten declared that the 'EU Road Map' - a first tranche of reforms designed to begin the process of preparing BiH for an SAA and European accession - was 'essentially complete'. The next step was the Feasibility Study, published by the Commission in November 2003. The study outlined sixteen areas in which BiH had to show significant progress before the Commission could recommend the opening of SAA negotiations. The areas included the Rule of Law, standardisation of taxation, customs and trade issues and legislation and standards.

Following significant progress by BiH in all sixteen areas identified by the Feasibility Study, the Commission recommended the opening of SAA negotiations on 21 October 2005. The General Affairs and External Relations Council (GAERC) approved this recommendation on 21 November 2005, the tenth anniversary of the initialling of the Dayton Peace Agreement. This marked the first steps towards contractual relations with the EU and BiH.

On 4 December 2007 BiH initialled her SAA with the EU.  Signature was dependent on BiH making sufficient progress in four areas: police restructuring, the implementation of public broadcasting and public administration reforms, and on full co-operation with the ICTY.

On 16 April 2008 the European Commission recommended signature of BiH’s SAA with the EU, following the passage of police reform legislation in BiH parliament. Signature took place on 16 June 2008.

Police Reform

BiH’s SAA negotiations were opened in October 2005 on the basis of a provisional policing agreement with support from all the major political parties in BiH. This agreed to establish a Directorate for Police Restructuring, that was tasked to prepare detailed proposals by 30 September in line with the three general principles set by the European Commission; all budgetary and legislative matters to be handled at the state level; no political interference in policing; policing regions to be determined by technical criteria. However the work of the policing directorate stalled in the lead up to the October 2006 elections, largely because of opposition from the Republika Srpska, and the deadline was missed.

The Police Reform Directorate submitted a plan at the end of December 2006.  Negotiations between political parties based on this report opened on 16 February 2007. After some progress, negotiations took a turn for the worse in April 2007 and the RS government called for a new process, as well as a referendum on a future model on 11 April. Subsequent political discussions yielded no significant agreement.   When he assumed office, HR Lajcak made police reform a top priority, facilitating discussion between the parties and he put forward a proposal for agreement in September. However, both Bosniak and Bosnian Serb parties rejected Lajcak’s paper. On 28 October 2007 governing party leaders signed the Mostar Declaration, setting out their desire to see police reform in line with the three EU principles and intention to take this and other issues forward. On 30 November party leaders agreed on a plan for implementation of the Mostar Declaration. On the 16 April the BiH parliament passed police reform legislation based on the Mostar Declaration. HR Lajcak and Brigadier-General Coppola, the Head of the EUPM, assessed this legislation to be sufficient to allow for SAA signature.

The European Union Police Mission (EUPM)

The EUPM is now continuing the work of the UN International Police Task Force by supporting the establishment of an apolitical, effective Bosnian police force. Through a mixture of monitoring and mentoring, the mission aims to establish best European and international practice. The UK contributes to the EUPM through police and civilian secondments. The Mission is working to improve the capacity of the Bosnian police to tackle organised crime and, in particular, all forms of trafficking. The current EUPM mandate came into effect on 1 January 2006, and focuses on supporting the fight against organised crime and implementing the restructuring of BiH’s police forces. EUPM will continue to work closely with other EU actors on the ground, including EUFOR, the EUSR and the Commission, to ensure effective co-operation. At the Political and Security Committee (PSC) meeting on 8 May 2007 the Member States PSC Representatives agreed to the extension of the mandate until the end of 2009.

BiH’s RELATIONS WITH THE UK

Diplomatic Representation

The UK established diplomatic relations with BiH in 1992 and currently has an Embassy in Sarajevo and an Embassy Office in Banja Luka.

Cultural Relations with the UK

There are approximately 7000 Bosnians resident in the UK. The Bosnian Institute holds regular lectures and seminars on Bosnian cultural issues. The Bosnian Institute can be contacted at 14/16 St Mark's Road, London W11 1RQ or Boosnian Institute website  or email bosinst@globalnet.co.uk.  

The British Council has been operating in BiH since 1996 as the UK’s principal international cultural relations agency. It is based in Sarajevo with English language centres around the country. The British Council can be contacted at British Council website.

RECENT VISITS

Inward

The HR/EUSR Valentin Inzko visited the London on 13 May and met with the Foreign Secretary, David Miliband, in the Foreign and Commonwealth Office and with Minister of Europe, Caroline Flint, in the House of Commons. The meetings covered a number of topics including the importance that the 5 objectives and 2 conditions set by the PIC are met in full before OHR closure. Both the Foreign Secretary and Caroline Flint expressed their concern over the lack of reform progress within BiH at the moment.

The HR/EUSR Valentin Inzko visited UK on 30 April and met with senior officials of the FCO, including the Political Director Sir Mark Lyall-Grant.

Mr Selmo Cikotic, Minister of Defence of BiH participated at the Wilton Park Conference “NATO at 60” in January 2009.

Dr. Haris Silajdzic, the Bosniak member of the BiH Tripartite Presidency visited London on 4 December 2008. During the visit, HE Silajdzic met with Caroline Flint, Minister for Europe at the Foreign and Commonwealth Office and senior officials.

The BiH Parliamentary Commission for Defence and Security visited the UK from  24 until 28 November 2008 and received briefings at the House of Commons, from the Defence Select Committee and Foreign Affairs Select Committee. The Parliamentary Commission also had meetings and briefings with the Ministry of Defence, Foreign and Commonwealth Office and Home Office in London.

Former High Representative/EU Special Representative Miroslav Lajcak visited London on 3 November 2008. HR Lajcak visited the Foreign and Commonwealth Office where he met with Caroline Flint, MP, Minister for Europe and a number of senior officials. At these meetings, HR Lajcak’s interlocutors’ emphasised UK support for the OHR ahead of the forthcoming Peace Implementation Council Steering Board meeting in November. HR Lajcak also gave a lecture at the London School of Economics, University of London in the course of the visit.

Former High Representative/EU Special Representative Miroslav Lajcak Visited London on 3 September 2008. He had meetings with various Government Departments, including the Ministry of Defence, Cabinet Office and Foreign and Commonwealth Office. HR Lajcak met with the Rt Hon Bob Ainsworth, Minister for Armed Forces, where they discussed the future of the EUFOR mission OpAlthea in BiH. HR Lajcak had meetings in the Foreign and Commonwealth Office with the Rt Hon David Miliband, Foreign Secretary, and Jim Murphy, MP, Minister for Europe. HR Lajcak also had meetings with a number of senior officials. HR Lajcak discussed with his FCO interlocutors the forthcoming November Peace Implementation Steering Board Meeting (PIC SB). They also discussed the 2 conditions and 5 objectives, set at the February PIC SB, for closing the Office of the High Representative and Transitioning to the EU Special Representative.

H.E. President Haris Silajdzic, the then chair of the Bosnian Presidency visited London on 23 July 2008. He had meetings in the Foreign and Commonwealth Office with the Rt Hon David Miliband, Foreign Secretary and Sir Mark Lyall-Grant, Political Director General. In the meeting, Silajdzic’s interlocutors welcomed the capture of the indicted war criminal Radovan Karadzic and stressed that this should move the region away from past divisions. They also welcomed signature of the SAA and underlined the need for restraint from nationalistic rhetoric at the October Municipal elections in BiH.

RS National Assembly Speaker Mr Igor Radojicic visited London on 16 June 2008 and had meetings at the Foreign and Commonwealth Office with Anthony Smith Director of European Political Affairs. Anthony Smith expressed the UK support of SAA signature and expressed the need for further constructive reform to build momentum on EU integration. Anthony Smith also underlined the need for the OHR to remain open until the 5 objectives and 2 conditions had been fulfilled.

Outward

Baroness Taylor of Bolton, Parliamentary Under-Secretary of State, visited Bosnia and Herzegovina between 13 and 15 September 2009.  During her visit she met with Valentin Inzko, High Representative / EU Special Representative to BiH, BiH Presidency members, Foreign Minister Sven Alkalaj Defence Minister Selmo Cikotic and representatives of international organisations.  Baroness Taylor also visited the Peace Support Operations Training Centre and the UK Armed Forces Memorial Stone to the 52 British troops killed during the 1992-1995 war, where she laid a wreath.

Baroness Kinnock, Minister for Europe, visited Sarajevo between 16 and 17 July 2009.  During her visit, she met with Valentin Inzko, High Representative / EU Special Representative to BiH, BiH Presidency members, key political party leaders, representatives of international organisations and key BiH donors.  She also paid a visit to the International Commission on Missing Persons (ICMP).  This was Baroness Kinnock’s first official visit to the region as Minister for Europe.

Jack McConnell, the Prime Minister’s Special Representative for Conflict Resolution Mechanisms, visited Sarajevo 1-3 February 2009. During the visit, he met with Selmo Cikotic the Bosnian Defense Minister and Sven Alkalaj, Bosnian Foreign Minister. He also met with several senior members of the international community in BiH including from the EU Police Mission and NATO. The visit was used to express the UK’s strong support of the International Organisations working in BiH along with BiH’s Euro-Atlantic aspirations.


David Miliband, Secretary of State for Foreign and Commonwealth Affairs, visited Sarajevo on the 10 November 2008. The Foreign Secretary met with High Representative Lajcak, the BiH Presidency, the BiH Prime Minister, the BiH Foreign Minister and leading representatives of the six major Bosnian political parties. The Foreign Secretary expressed the UK’s strong support for BiH’s Euro-Atlantic aspirations and urged local politicians to make the reforms necessary to allow for OHR closure and further EU/NATO integration.

A delegation from the British Inter Parliamentary Union, led by John Austin, MP, visited BiH from 31st March to 4th April 2008. This was a reciprocity visit as the BiH IPU delegation visited London in June 2006. The UK IPU delegation visited Sarajevo, Banja Luka and Mostar and had several political meetings with BiH parliamentarian and officials. During the visit, the UK IPU delegation gave several press statements in which they encouraged local political actors to undertake the reforms necessary to allow BiH to progress further along the EU track. The Head of British Delegation, John Austin, stated that BiH belonged in Europe and that BiH. Mr Austin was quoted saying that British parliamentarians encourage BiH parliamentarians should continue to work with the OHR to enable BiH to move towards future EU membership.

Jim Murphy, the Minister for Europe, visited Sarajevo on 18-20 March 2008. Mr Murphy met the three members of the Presidency, Haris Silajdzic (Bosniak, SBiH), Zeljko Komsic (Croat, SDP) and Nebojsa Radmanovic (Serb, SNSD), Prime Minister Nikola Spiric (Serb, SNSD), Foreign Minister Sven Alkalaj (Jewish, SBiH) and other party leaders, Sulejman Tihic (Bosniak, SDA), Dragan Covic (Croat, HDZ), Bozo Ljubic (Croat, HDZ 1990), Zlatko Lagumdzija (Croat, SDP). He also met with key members of the international community in BiH, including High Representative/EUSR Lajcak, the head of the EU Police Mission, the NATO Commander in BiH, and the deputy Commander of EUFOR. He visited two HMG-funded projects: the International Commission for Missing Persons and the Peace Support Operations Training Centre. Mr Murphy reiterated the UK’s commitment to BiH’s European perspective and urged all parties to refocus on the necessary reforms to allow for further Euro-Atlantic integration, including police reform in line with the EU’s three principles.

For more details of the visit see Mr Murphy’s blog: http://blogs.fco.gov.uk/blogs/jim_murphy/

GEOGRAPHY

BiH has borders with Serbia to the East, Montenegro to the South East, Croatia to the North and West, and a 12 kilometre coastline on the Adriatic Sea. Its landscape varies from high altitude central mountains to arable land in the north and Mediterranean vineyards in the south, with most of the major towns being located in valleys. Climatically, Bosnian summers last from May to September and are warm and humid whilst winters tend to be foggy and snowy and last from November to February. Autumn and Spring are usually short.

TRADE AND INVESTMENT

Trade and Investment with the UK

UK/BiH trade has been steadily growing over the last few years, albeit from a low base. British exports to BiH in 2008 amounted to £ 20.5 million, mostly of manufactured items, machinery, road vehicles, scientific and office equipment and chemicals. BiH exports to Britain in 2008 amounted to £ 22.5 million, mostly of metal working machinery, chemical materials, plastics, essential oils and furniture.

In 2003 the British and BiH governments signed a bilateral Agreement on the Promotion and Protection of Investments, to support private sector investment between the two countries.

The number of UK companies represented in BiH is relatively small: about 30 directly and about 80 through local agents. Other UK companies, particularly in the service sector, have a presence in BiH for the duration of specific contracts. Leading UK companies in BiH include: GlaxoSmithKline, AstraZeneca, Unilever, BAT, and JCB. Main UK investors in BiH are: ArcelorMittal Zenica (steel production), Altima Partners (beer production), Energy Financing Team (Power trading and power generation), Dempson Packaging (paper packaging), Salford UK Ltd (milk processing) and Caterham Herbs (lavender).

There is an ECGD cash cover for BiH, which is subject to security CILC or equivalent. ECGD might consider interest support for local costs.

The British Embassy in Sarajevo co-ordinates the British Business Club, an informal group of companies in BiH with UK commercial interests.  The Club meets for business networking, and has a quarterly eNewsletter. For further details please visit the British Embassy website at http://ukinbih.fco.gov.uk/en.

UK Development Assistance

The UK has provided bilateral aid totalling some £86.5m since 1996. In 2008-2009, £4 million was disbursed through the DFID bilateral programme. Much of our work is focused on capacity building at the centre of government in public administration, public finance and social inclusion reforms. We have developed joint programmes with other donors (e.g. EU, Sweden and the Netherlands), in Public Administration Reform (PAR) and aid co-ordination. We also support a number of initiatives through the Conflict Prevention Pool (CCP). Its objective is to reduce the causes of instability and potential conflict by enhancing the effectiveness of the state and assisting the transformation of the political culture. In addition to the above, the UK finances its share of multilateral funding for the EU aid programme to BiH.

For further information see DFID's website - Department for International Development (DFID)

POLITICS

Elections

General elections were held in BiH on 1 October 2006. The OSCE confirmed that they were generally conducted in line with international standards with no major incidents. Voter turnout was reported at 54.48%, approximately 235,000 more people than voted in the 2004 elections. The next national elections are scheduled for October 2010.

The previous Prime Minister, Haris Silajdzic (SBiH) won the race for the Bosniak slot of the Tripartite Presidency by a wide margin, with 41% of the vote. Nebojsa Radmanovic (SNSD) won the Serb slot with 55% and Zeljko Komsic (SDP) was elected for the Croat seat on the Presidency with 14% of the vote. 

At state-level, the SDA (predominantly Bosniak) led by Sulejman Tihic, have the largest representation in the BiH House of Representatives (9 seats). Other big winners, who have all made notable gains on the 2002 elections, include SBiH (Bosniak) with 8 seats (+2) and SNSD (Serb) with 7 seats (+4). HDZ 1990, the Bosnian Croat party gained 2 seats, but HDZ are still the largest Croat party overall with 3 seats (despite a loss of –2). Parties with notable losses include the Bosnian Serb parties PDP, who now have 1 seat (-1) and SDS with 3 seats (-2). 

On 4 January 2007 a state-level coalition government was formed. It consisted of SDA and SBiH (Bosniak), SNSD and PDP (Bosnian Serb) and HDZ, HDZ 1990 and NSRzB (Bosnian Croat). Nikola Spiric (SNSD – Bosnian Serb) was appointed as state level Prime Minister. The Bosnian Parliament confirmed the new state level Council of Ministers on 9 February and the majority of Ministers took up office on 12 February. The only exception to this was Defence Minister Selmo Cikotic, who took up his position on 23 April once the necessary three years had passed since his retirement from the military. 

On 1 November 2007, PM Spiric resigned in protest over former High Representative Lajcak’s changes to the procedures of the Council of Ministers. Following resolution of this standoff Spiric was reconfirmed as Prime Minister.

Municipal elections for mayors and municipal assembly posts were held across BiH on 5 October 2008. The elections were seen to have been conducted in a fair and orderly way in line with international standards. Voter turnout was reported at approximately 55% across the country. Of all the parties, the Party of Independent Social Democrats (SNSD) did particularly well winning 39 of the municipalities in the RS and 3 in the Federation. The Serbian Democratic Party (SDS) struggled, losing half of their Mayors returning only 16 Mayors out of 33. The Party for Democratic Action (SDA) emerged as the strongest Bosniak party while the Croatian Democratic Union of Bosnia and Herzegovina (HDZ BiH) emerged as the strongest Croat party.

After a split of the SNSD and PDP coalition at entity level in February 2009, the PDP then withdrew from the ruling state level coalition as well. Mladen Ivanic, PDP leader resigned as the Speaker of the BiH House of Peoples. The remaining two PDP officials within the BiH Council of Ministers, also left their posts in April.

High Representative/EU Special Representative (EUSR)

On 26 March 2009, former Austrian Ambassador to Slovenia, Dr Valentin Inzko succeeded Dr Miroslav Lajcak as the double-hatted High Representative and EU Special Representative to BiH. He has extensive experience in the Balkans having served as Austria’s first Ambassador to BiH post the 1992-1995 conflict.

Closure of the Office of the High Representative (OHR)

At its meeting in February 2008, the Bosnia Peace Implementation Council Steering Board (PIC SB) agreed to maintain the OHR and Bonn Powers. While the security situation in BiH remains stable, the PIC SB noted with concern ongoing political instability; a lack of progress on key reforms; and continued challenges to the Dayton Peace Agreement. Closure of the OHR will now depend on the achievement of five conditions and two objectives. Key amongst these is the need for a positive assessment by the PIC SB of the political and security situation in BiH, based on full compliance with Dayton.

The international community remains committed to the transfer of authority to the Bosnian authorities as soon as conditions allow.

Constitutional Reform

Bosnian political leaders signed a commitment to pursue constitutional reform in Washington on 21 November 2005. Discussions had been ongoing, facilitated by the international community, with the goal of improving the functionality of BiH institutions. The leaders of the largest political parties agreed to a constitutional reform package on 18 March 2006, which would have established a rotating Presidency with a single President and two Vice Presidents (as opposed to the previous, tripartite structure); built a more effective Parliament and enhanced the protection of human rights. This would have been an important first step for improving the functionality of BiH’s government. However, the agreement was blocked in the BiH House of Representatives on 26 April 2006, largely due to opposition from SBiH and HDZ-1990. Constitutional reform remains crucially important for BiH and progress on this issue will requirement compromise by all political parties.

Military Reform

One of the successes of recent years has been military reform. In 2005 agreement was reached on a package of defence reforms that would establish a NATO compatible single military force. Implementation has been underway since January 2006. The Presidency approved detailed proposals for the new Armed Forces of Bosnia and Herzegovina on 5 July 2006, which enabled BiH to begin the process of forming a single NATO compatible military force.

Taking into account progress made so far, BiH, along with Montenegro and Serbia, was invited to join NATO’s Partnership for Peace (PfP) and the Euro-Atlantic Partnership Council on 29 November 2006 at the Riga Summit of NATO Heads of State and Government. The then Chairman of the BiH Presidency, Nebojsa Radmanovic, signed the Framework Document of the Partnership for Peace at  NATO Headquarters in Brussels on 14 December 2006. PfP is an important step on the path to closer integration with NATO and seeks to promote defence reform, increase stability, diminish threats to peace and build strengthened security relationships between individual Partner countries and NATO.

BiH was granted Intensified Dialogue (ID) at the NATO Summit in Bucharest on 2-4 March 2008. ID is a further step forward towards NATO accession, and the BiH MoD awaits a Membership Action Plan as the next important step in the NATO accession process.

HUMAN RIGHTS

Srebrenica Memorial

On 31 March 2003, the burial of 580 victims of the Srebrenica genocide took place in the purpose-built Potocari Cemetery outside Srebrenica. This was the first stage in the establishment of a larger memorial that aims to provide solace for the victims' families and increase awareness of the terrible events that took place at Srebrenica, in which at least 8,000 people were killed.  In July 2005 the then Foreign Secretary Jack Straw, and other senior figures from the international community and the region, attended commemorations to mark the tenth anniversary of the massacre.  

British experts from the Imperial War Museum worked with NGOs in BiH to develop the memorial at the Potocari site, which was opened on 11 July 2007.  

Refugee Returns

Substantial progress has been made in helping refugees and displaced people to return home. Statistics from the UN High Commissioner for Refugees (UNHCR) indicate that by February 2006 over 1 million refugees and internally displaced persons had returned to their pre-war places of origin. While this is encouraging, around 50,000 refugees from BiH remain in Croatia, Serbia and Montenegro, and almost 200,000 are still internally displaced within BiH. Incidents of return-related violence are rare, but do still occur. Returnees continue to face a lack of education facilities, unresolved property issues and poor economic prospects. The failure to bring to justice all war crimes indictees has also reduced confidence in the return process.

War Crimes

During the last two years there has been significant progress in arresting persons indicted by the International Criminal Tribunal for the Former Yugoslavia (ICTY). Zdravko Tolimir was arrested on 31 May 2007 and Vlastimir Djordjevic was arrested on 17 June 2007. On 12 December 2007 Dragomir Milosevic was found guilty by the ICTY of war crimes on counts of murder, terror and inhumane acts; he has been sentenced to 33 years imprisonment. Dragomir Milosevic was the commander of the Sarajevo-Romanija Corps (SRK), which laid siege to Sarajevo for approximately 15 months during the 1992-1995 conflict. The SRK carried out a campaign of shelling and sniping resulting in injury and death to many civilian citizens of Sarajevo.

On 11 June 2008, Serbian authorities arrested Stojan Zupljanin on the outskirts of Belgrade. Zupljanin is charged with genocide, crimes against humanity, violations of the laws and customs of war and breaches of the Geneva Conventions. He has now been transferred to The Hague, where he awaits trial.

On 21 July 2008, Serbian authorities in Belgrade arrested Radovan Karadzic, the former President of the Republika Srpska. He is charged with genocide; crimes against humanity; violations of the laws or customs of war and grave breaches of the Geneva conventions of 1949. Karadzic was transferred to The Hague on the 29 July 2008 for trial. On the 30 August Karadzic refused to enter a plea, the court entered a plea of not guilty on his behalf.

Further details of the indictments against both Stojan Zupljanin and Radovan Karadzic can be found on the ICTY website: www.un.org/icty.

The continued presence at large of ICTY indictees – most notably the Bosnian Serb Ratko Mladic - represents an obstacle to lasting stability, reconciliation and prosperity in BiH and the wider region.

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Bosnia and Herzegovina, Sarajevo, British Embassy

Address:

British Embassy
Tina Ujevica 8: HMA, Chancery, MoD, Political and Press sections
Petrakijina 11: Visa, Consular, Management, Commercial and DFID
Sarajevo, Bosnia and Herzegovina

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Bosnia and Herzegovina, Banja Luka, British Embassy Office


Bosnia and Herzegovina