Sida's work in Bosnia and Herzegovina
Many challenges remain in Bosnia and Herzegovina 30 years after the war. In a country with one of the most complex political systems in the world, Sida is working to bring the country closer to EU membership - as a way to improve living conditions for all people in the country.
Sida’s support in Bosnia and Herzegovina 2023
Important thematic areas in Bosnia and Herzegovina
Why do Sida work in Bosnia and Herzegovina?
Economic development is slow
The country’s economic development is steady but slow. One sixth of the population (16.9%) lives below the national poverty line.1 Poverty is more prevalent in rural areas. Unemployment in the country is high, especially among young people.2
Continuing problems with discrimination
The country’s Roma minority is severely affected by both poverty and discrimination in areas such as education and health care.3 Women are discriminated against in the labour market and in political decision-making.4 People with disabilities often live in difficult conditions and LGBTI people face discrimination.
Many leave the country
Around 50 000 people leave the country every year, mainly because of difficulties in finding a good job and because of the negative trend of widespread corruption and ethnic divisions.5 If this trend continues, there is a risk that the population of the country will further decrease.
Examples of what Sida has contributed to
Sida's development cooperation in Bosnia and Herzegovina
In 1995, the Dayton Peace Agreement ended the four-year bloody war that led to the collapse of Yugoslavia. The effects of the war mean that the country has a long way to go before people can live in a well-functioning country that fulfills EU requirements. The challenges are many and the reforms required for EU membership are slow.
Sida’s development cooperation aims to contribute to moving the country towards EU membership, which is why Sida supports projects that strengthen human rights, gender equality and the country’s democratic development.
Political rhetoric has hardened in recent years, leading to increased political, geographical and ethnic tensions. The political system, resulting from the 1995 peace agreement, is complex. There are 14 governments at different levels and three heads of state – who need to coordinate and agree. The country is characterized by political gridlock, corruption and heavy bureaucracy that hinders reforms. Few people engage in politics and civil society because they feel they have no influence. Here are some examples of projects Sida supports to contribute to the country’s democratic development:
Sida is supporting several municipalities to strengthen accountability, empower citizens and develop better public services for citizens. Through the Local Councils (Mjesne Zajednice) project, the United Nations Development Programme (UNDP) creates forums for influence and impact between politicians and citizens and provides opportunities for people to hold those who make decisions at the municipal level accountable.
Sida provides support to independent media and investigative journalism, including the Centre for Investigative Reporting (CIN), which investigates and reports on corruption cases. Their reports on corruption in the construction of small hydropower plants have led politicians and citizens to recognize the problem and demand stricter regulation.
Sida supports women victims of violence through several women’s rights organisations. The organisations conduct advocacy work towards decision-makers to ensure that women who are victims of violence receive better protection. Their advocacy work has helped ensure that women who have been subjected to violence have the right to have someone they trust accompany them through the process when they report the violence.
Almost thirty years after the war, the country is grappling with the consequences of the war. In many ways, the country is stuck in a frozen conflict that prevents society from developing towards better social services, inclusion of all social groups and co-operation between different parts of the country. Sida supports work for peace and reconciliation. Here are some examples of projects that Sida supports:
Many people disappeared during the war in the former Yugoslavia in the 1990s. In Bosnia and Herzegovina, 30 000 people have gone missing as a result of the war. Through the International Commission for Missing Persons (ICMP), Sida supports efforts to identify missing persons. Around 23,000 people have been identified since then. The work of finding and identifying missing persons is difficult but important to ensure the right to truth for the relatives and to strengthen transitional justice.
The city of Mostar has been divided between ethnic groups since the war in the 1990s. By supporting the Mostar Rock School, which provides inclusive rock music education for young people from all ethnic backgrounds, young people have a place to be themselves. The Mostar Rock School is an alternative meeting place for those who want to see inclusive development in the city. Through rock music education, concerts and festivals, the organisation helps people who would otherwise not have met get to know each other.
Sida supports the Think Nature project, through the Civil Society Promotion Centre (CPCD), which has raised awareness on environmental issues among the population and helped to increase civil society’s influence over environmental protection in Bosnia and Herzegovina. Advocacy campaigns by environmental organisations in the city of Maglaj, for example, has led to the designation of two forest areas – Mokra Megara and Matinksi Vis – as nature reserves.
Sida, through the Stockholm Environment Institute (SEI), has supported the development of the first ever national environment and climate strategy. A number of actors and interest groups have participated in the work. Such as governments and institutions at different levels, as well as civil society and universities. The process has taken into account the perspectives of economically vulnerable people, equity and gender equality, resulting in a final document that lays a solid foundation for a just climate transition. The strategy is expected to be approved in 2023. Sida will also support the country’s implementation of the strategy.
Bosnia and Herzegovina’s economic growth comes from a variety of sectors and markets. Most companies are state-owned and it is difficult for many small and medium-sized enterprises (SME) to enter the market. Unemployment is high, especially among young people, women and the country’s ethnic minorities. Sida supports projects that contribute to greater economic justice and jobs with good working conditions. Here are some examples of projects that Sida supports:
Through the Small Business Act programme, Sida contributes to changing regulations and legislation in line with EU legislation. The aim is to gradually make it easier for small and medium-sized enterprises to work and create good working conditions. Among other things, the support has led to the introduction of SME strategies at different levels.
Through the Challenge to Change project, which provides financial support for innovative businesses that create employment, Sida’s support has led to the creation of 700 new jobs and the retention of 5,000 in the more than 190 innovative business ideas supported.
In cooperation with the United States Agency for International Development (USAID), Sida supports entrepreneurs who have migrated from Bosnia and Herzegovina to run businesses in the country and reinvest in their former home country. By making it easier for them to borrow money from banks, conditions are created for the companies to develop their business. The support has led to more small and medium-sized enterprises operating in the country, increased employment and economic development. Most companies that have taken loans through the guarantee have stated that the loans have been instrumental in their growth. 62 companies with a total of 1,700 employees are covered by the loan guarantee in 2023.
Sida supports the Mozaik Foundation, which enables young people who are unemployed to start their own businesses. This is done through an internet-based learning platform, internships and start-up grants. The support has contributed to the creation of over 140 micro-enterprises and the establishment of three service centers for entrepreneurs in the country.
- Poverty statistics Bosnia and Herzegovina on the World Bank website
- Unemployment statistics Bosnia and Herzegovina on the World Bank website
- Discrimination against Roma in Bosnia and Herzegovina 2023 on the Human Rights Watch (HRW) website
- World Economic Forum Gender Equality Index 2022
- Emigration Bosnia and Herzegovina Report 2022.pdf (europa.eu)
- Facts on carbon emissions in Bosnia and Herzegovina in 2022 on Human Rights Watch (HRW) website
Updated: May 16, 2023