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BASIC INFORMATION

Full Country Name:
Bosnia and Herzegovina


Country Profile:

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 (Serbian)
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:Federation of BiH: Coalition consists ofParty for Democratic Action (SDA), Party for BiH (SBiH), , Croatian Democratic Union of BiH (HDZ-BiH), Croatian Democratic Union of BiH-1990 (HDZ-1990), Croatian Democratic Union 1990 (HDZ-1990), Party of Independent Social Democrats (SNSD)Republika Srpska: Coalition consists of Party of Independent Social Democrats (SNSD), Party of Democratic Progress (PDP), Socialist Party of RS (SPRS), Democratic People’s Union (DNS) Party for Democratic Action (SDA)
Government: Coalition consists of Party for Democratic Action (SDA) and Party for BiH (SBiH) (Bosniak); Party of Independent Social Democrats (SNSD) and Party of Democratic Progress (PDP) (Bosnian Serb) and Croatian Democratic Union of Bosnia and Herzegovina (HDZ BiH), Croatian Democratic Union 1990 (HDZ-1990) and People’s Party Through Work for a Better Future (NSRzB), (Bosnian Croat).
Head of State: State Level - Tripartite Presidency consisting of Nebojsa Radmanovic (Bosnian Serb Chair – SNSD, until June 2007), Haris Silajdzic (Bosniak - SBiH) and Zeljko Komsic (Bosnian Croat, SDP). Rotating chair Federation of BiH – Borjana Kristo (Bosnian Croat – HDZ BiH). Republika Srpska – Milan Jelic (Bosnian Serb – SNSD)
Prime Ministers:State Level – Nikola Spiric (Bosnian Serb – SNSD). Federation of BiH – Nedzad Brankovic (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

GEOGRAPHY

(BiH) has borders with to the East, to the South East, 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.

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 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 began slowly to disintegrate in a process that culminated in the Balkans wars of the early 1990s. , and Republic of Macedonia declared their independence in 1991, in 1992. The remaining republics and declared a new 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 , which eventually led to the Dayton Agreement of 1995. This agreement fixed internal borders in the Western Balkans along lines that still exist today.

POLITICS

Recent Political Developments

Dr Christian Schwarz-Schilling, High Representative and EU Special Representative, meets Geoff Hoon, Minister for Europe in London, February 2007.

Dr Christian Schwarz-Schilling, High Representative and EU Special Representative, meets Geoff Hoon, Minister for Europe in London, February 2007.

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 and Herzegovinian 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); build a more effective Parliament and enhance the protection of human rights. This would have been an important first step for on the process of reform towards a more functional state, European integration and better human rights. Unfortunately the agreement was blockedin the BiH House of Representatives on 26 April 2006, largely due to opposition from SBiH and HDZ-1990. Constitutional reform remains a priority for . We hope that negotiations will resume in the coming months.

High Representative/EU Special Representative

In December 2005 the Peace Implementation Council (PIC) appointed Dr. Christian Schwarz-Schilling to succeed Lord Ashdown as the international community's High Representative. Dr. Schwarz-Schilling, who then became both High Representative and EU Special Representative on 1 February 2006, was previously German Minister for Post and Telecommunications, and has lengthy experience of mediation in . He announced on 23 January 2007 that he would not be seeking a renewal of his mandates beyond June 2007. It will be for the PIC to decide in due course who his successor should be.

At its meeting on 26-27 February, the PIC decided that the closure of the OHR, which was scheduled for June 2007, should be delayed. While the security situation in BiH remains stable, the PIC noted with concern the recent increase in nationalist politics (particularly in the 2006 October election campaign but also subsequently) which directly challenged the Dayton Peace Agreement.

The OHR will therefore remain in place and continue to carry out its mandate under the Dayton Peace Agreement with the aim of closure by 30 June 2008. The PIC Steering Board will review the situation when it meets in October 2007 and February 2008. Extending the OHR will ensure the international community can continue to safeguard progress in BiH and facilitate its further political development. However, the international community remains committed to the transfer of authority to the Bosnian authorities as soon as conditions allow.

Elections

Municipal elections for mayoral and municipal assembly posts were held across on 2 October 2004. These were the first elections to be entirely funded and organised by the BiH authorities, and the OSCE declared that they were fair and in line with international standards. There was a turnout of approximately 46%, and no significant change to the political picture in .

General elections were held in on 1 October 2006. They were the first to be organised entirely by ’s own institutions since the war. The OSCE confirmed that they were generally conducted in line with international standards with no major incidents. Voter turnout was reported at only 54.48%. However, a new passive voter registration system masks the positive development that approximately 235,000 more people voted than in the 2004 elections.

Wartime 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 votes.

At State level the SDA (predominantly Bosniak) lead 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 the HDZ 1990 are still the largest Croat party overall with 3 seats (despite a loss of –2). Other 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 consists of SDA and SBiH (Bosniak), SNSD and PDP (Bosnian Serb) and HDZ, HDZ 1990 and NSRzB (Bosnian Croat). Nikola Spiric (SNSD – Bosnian Serb) was confirmed 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.

Military Reform

One of the key successes of recent years has been the extent of military reform in BiH. Good progress has been made on this issue, particularly during the appointment of Nikola Radovanovic as the State-level Defence Minister from March 2004 to October 2006. 2005 brought agreement on a further package of defence reform, which agreed to establish a NATO compatible single military force, which was implemented with effect from 1 January 2006. The Presidency approved the detailed proposals for the new Armed Forces of Bosnia and 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 and , 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. Nebojsa Radmanovic, the current Chairman of the BiH Presidency, signed the Framework Document of the Partnership for Peace at the NATO Headquarters in Brussels on 14 December 2006.

The Riga communique reaffirmed that BiH must fully co-operate with the International Criminal Tribunal for the Former Yugoslavia (ICTY) and that. NATO would closely monitor their efforts in this regard. 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.

Basic Economic Facts

GDP: US $7.0 billion (2003, World Bank)
GDP per capita: US $1837.202 (2003, IMF)
GDP growth: 2.7% (2003, World Bank)
Aid per capita: US $130.1 (2003, World Bank)

Further information about Bosnia and Herzegovina's economy can be found at UK Trade & Investment Country Profile: Bosnia and Herzegovina.

The BiH Economy has a number of serious problems, with 18% of the population below the poverty line and another 30% close to it. Public expenditures are excessively high and revenue collection remains insufficient. Privatisation moves far too slowly. Capital inflows from the international community are sharply dropping off. Domestic and international investment is low, burdened by an overly bureaucratic business regulatory framework and parallel structures in the two Entities.

VAT was introduced in Bosnia Herzegovina on 1 January 2006. This was an important step in generating revenue for the newly formed state-level institutions.

INTERNATIONAL RELATIONS

's Relations with Neighbours

's relationship with 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 Bosnia and Herzegovina/Croatia border, and have reduced '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.

's relations with 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 , culminating in the signing of a revised Special Parallel Relations Agreement on 26 September 2006 in Banja Luka. However, 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 . On 26 February 2007, the International Court of Justice (ICJ), the principal judicial organ of the United Nations, announced its judgment on the case filed by BiH against in March 1993, claiming violations of the UN Genocide Convention during the 1992-1995 Bosnian War. The ICJ found that 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. Members of the international community called upon both countries to respect the judgment and react constructively.

'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

EUSR Office

As BiH moves towards EU integration, the EU has in principle decided to increase its presence in BiH. Following the planned closure of the OHR in June 2008, a reinforced EUSR office will play a lead co-ordinating role for the International Community. The future EU Special Representative 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.

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 begun on 1 January 2005 and was initially lead by British Commander, Major General Leakey, who was replaced by the Italian General Chiarini in December 2005.The current Commander, Rear Admiral Hans-Jochen Witthauer from Germany took over on 5 December 2006.

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 International Criminal Tribunal for the Former Yugoslavia (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, the EU Political and Security Committee gave final approval to reduce force levels from approximately 6000 troops to 2500. 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. The 600 British troops (principally from the Welsh Guards) who are currently deployed in BiH will therefore not need to be replaced and will shortly return to the .

Stabilisation and Association Agreement (SAA)

The European Union'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 Bosnia 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 had to show significant progress before the Commission could recommend the opening of SAA negotiations. The areas include 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 the Feasibility Study, the Commission recommended the opening of SAA negotiations on 21 October 2005. The General Affairs and External Relations Council (GAERC) approved to this recommendation on 21 November 2005, the tenth anniversary of the initially of the Dayton Peace Agreement. This marked the first steps towards contractual relations with the EU and BiH.

BiH completed technical negotiations on the SAA on 15 December 2006, but will be unable to conclude their SAA until they meet previously agreed political conditions. In particular, progress is needed in four key areas: police restructuring, the implementation of public broadcasting and public administration reforms, and on full co-operation with the International Criminal Tribunal for the Former Yugoslavia (ICTY).

Police reform

’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 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 on the basis of 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. Since then, there has been some political discussion of how to move forwards, but no significant agreement.

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 contributes extensively to the EUPM through police and civilian secondments. The Mission is working to improve the capacity of the Bosnian police to tackle serious crime and, in particular, all forms of human 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 ’s police forces. EUPM will continue to work closely with other EU actors on the ground, including EUFOR, the EU Special Representative and the Commission, to ensure effective co-operation.
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