Overview Bosnia and Herzegovina

Show region East-Central and Southeast Europe

The October 2018 general elections marked the end of two years of almost complete stagnation in implementing reforms and pursuing Euro-Atlantic integration. This stalemate was accompanied and enabled by heightened ethno-nationalist rhetoric.

BiH authorities in 2015 for the first time committed themselves to a comprehensive policy of fiscal sustainability. Fiscal stabilization measures continued throughout 2017 and 2018. However, ahead of the general elections, the Republika Srpska National Assembly amended the labor tax legislation and increased public sector wages, which risks undoing the effects of previous reforms.

The uniquely complex and fragmented division of government functions leads to overlapping services, and inefficiencies are exacerbated by poor coordination and even poorer cooperation between different levels of government at both the policy-making and implementation stages. The functioning of state-level bodies is frequently stymied by political disagreement.

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