General 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 signed a
peace agreement that brought to a halt the three years
of interethnic civil strife (the final agreement was
signed in Paris on 14 December 1995). The Dayton Agreement
retained Bosnia and Herzegovina's international boundaries
and created a joint multi-ethnic and democratic government.
This national government was charged with conducting
foreign, economic, 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 internal functions. 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 is to deter renewed hostilities. SFOR remains
in place at the January 2002 level of approximately
18,000 troops, though further reductions may take place
later in the year.
Area comparative:
Slightly smaller than West Virginia
Climate:
Hot summers and cold winters; areas of high elevation
have short, cool summers and long, severe winters; mild,
rainy winters along coast.
Terrain:
Mountains and valleys
Population: 3,964,388
Ethnic groups: Serb 31%, Bosniak 44%, Croat
17%, Yugoslav 5.5%, other 2.5% (1991)
Religions: Muslim 40%, Orthodox 31%, Roman
Catholic 15%, Protestant 4%, other 10%
Language: Croatian, Serbian, Bosnian
Government type: Emerging federal democratic
republic
Capital: Sarajevo
Legal system: Based on civil law system
Economic overview: Bosnia and Herzegovina
ranked next to The Former Yugoslav Republic of 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
has been greatly overstaffed, one reflection of the
socialist economic structure of Yugoslavia. TITO had
pushed the development of military industries in the
republic with the result that Bosnia hosted a large
share of Yugoslavia's defence plants. The bitter interethnic
warfare in Bosnia caused production to plummet by
80% from 1990 to 1995, unemployment to soar, and human
misery to multiply. 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
and 2001. GDP remains far below the 1990 level. Economic
data are of limited use because, although both entities
issue figures, national-level statistics are limited.
Moreover, official data do not capture the large share
of activity that occurs on the black market. The marka
- the national currency introduced in 1998 - is now
pegged to the euro, and the Central Bank of Bosnia
and Herzegovina has dramatically increased its reserve
holdings. Implementation of privatisation, 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. 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.
Communication/Telephone system: Telephone
and telegraph network needs modernization and expansion;
many urban areas are below average as contrasted with
services in other former Yugoslav republics.
Places of interest:
Travel Tips: There are still risks from occasional
localized political violence, unexploded landmines
and ordnance, carjacking and petty crime brought on
by the high unemployment rate. Use caution when traveling.
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