Bosnia and Herzegovina’s political institutions remain shaped by the 1990s conflict, although although society has drifted away from a post-conflict mindset. The leadership of Republika Srpska repeatedly challenges the legitimacy of state institutions and threatens secession, putting pressure on the rule of law. These actions were countered by interventions of the Office of the High Representative and judicial proceedings.
Economic transformation moves slowly but steadily. Moderate growth, a resilient labor market and strong monetary stability supported socioeconomic development despite inflationary pressures linked to the COVID-19 pandemic and the war in Ukraine. Structural weaknesses, including administrative barriers, regulatory fragmentation and an oversized public sector, continue to constrain private sector development.
Governance remains constrained by entrenched patronage networks across all major parties, weakening institutional effectiveness and restraining reform implementation. Nonetheless, improved legislative output, partial fulfillment of key EU priorities and intensified international engagement contributed to the opening of EU accession talks in March 2024.
