Bosnia & Herzegovina
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 initialed a peace agreement that brought to a halt three years of interethnic civil strife (the final agreement was signed in Paris on 14 December 1995). The Dayton Peace Accords retained Bosnia and Herzegovina's international boundaries and created a joint multi-ethnic and democratic government charged with conducting foreign, diplomatic, 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 most government functions. The Office of the High Representative (OHR) was established to oversee the implementation of the civilian aspects of the agreement. 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 was to deter renewed hostilities. European Union peacekeeping troops (EUFOR) replaced SFOR in December 2004; their mission is to maintain peace and stability throughout the country. EUFOR's mission changed from peacekeeping to civil policing in October 2007, with its presence reduced from nearly 7,000 to less than 2,500 troops.
Geography
Area: 51,129 sq. km, slightly smaller than West Virginia.
Cities: Capital--Sarajevo (est. pop 387,876); Banja Luka (220,407); Mostar (208,904); Tuzla (118,500); Bihac (49,544).
People
Nationalities: Bosniak (Muslim), Bosnian Croat, Bosnian Serb.
Population (July 2004 est.): 3.8 million (Note: all data dealing with population are subject to considerable error because of the dislocations caused by military action and ethnic cleansing. The most recent census was conducted in 1991.)
Population growth rate (2004 est.): 0.45%.
Ethnic groups: Bosniak 48.3%, Serb 34.0%, Croat 15.4%, others 2.3%. (Source: UNDP Human Development Report 2002--Bosnia-Herzegovina)
Religions: Muslim (40%); Orthodox (31%); Catholic (15%); Protestant (4%); other (10%).
Languages: Bosnian, Serbian, Croatian (formerly "Serbo-Croatian").
Education: Mandatory 8-9 years of primary school (depending on region), 3-4 years in secondary school (vocational/liberal arts), and 3-5 years in universities (depending on major). In Bosnia and Herzegovina, there are 1,089 primary schools with 350,000 students and 289 secondary schools with 162,000 students. The main public universities are in larger cities (Sarajevo, Mostar, Banja Luka, Tuzla, Bihac, Zenica) and there are a number of private institutions of higher education. Adult literacy rate--male 94.1%, female 78.0%.
Health: Infant mortality rate (2005 est.)--21.05 deaths/1,000 live births. Life expectancy (2005 est.)--male 70.09, female 75.8.
Work force (2001 est.): 1.026 million.
Economy
Nominal GDP (2007 Central Bank and IMF figures): $15.1 billion. (U.S.$1=1.43KM)
GDP real growth rate (2007 Central Bank figure): 6.8%.
Nominal GDP per capita: $3,939.
Inflation rate (2007 est.): 4.9%.
GDP (purchasing power parity):$30.49 billion
note: Bosnia has a large informal sector that could also be as much as 50% of official GDP (2008 est.)
GDP (official exchange rate):$19.36 billion (2008 est.)
GDP - real growth rate:5.5% (2008 est.)
GDP - per capita (PPP):$6,600 (2008 est.)
Natural resources: Hydropower, coal, iron ore, bauxite, manganese, forests, copper, chromium, lead, zinc, cobalt, nickel, clay, gypsum, salt, sand, forests.
Agriculture: Products--wheat, corn, fruits, vegetables, livestock.
Industry: Steel, aluminum, minerals, vehicle assembly, textiles, tobacco products, wooden furniture, explosives, munitions, aircraft repair, domestic appliances, oil refining.
Trade (2007 Central Bank figures): Exports--$4.2 billion. Imports--$9.9 billion.
The interethnic warfare in Bosnia and Herzegovina caused production to plummet by 80% from 1992 to 1995 and unemployment to soar. With an uneasy peace in place, output recovered in 1996-99 at high percentage rates from a low base; but output growth slowed in 2000-02. Part of the lag in output was made up in 2003-08 when GDP growth exceeded 5% per year. Banking reform accelerated in 2001 as all the Communist-era payments bureaus were shut down; foreign banks, primarily from Western Europe, now control most of the banking sector. The konvertibilna marka (convertible mark or BAM)- the national currency introduced in 1998 - is pegged to the euro, and confidence in the currency and the banking sector has increased. Bosnia's private sector is growing and foreign investment is slowly increasing, but government spending, at nearly 40% of adjusted GDP, remains high because of redundant government offices at the state, entity and municipal level. Implementing privatization, however, has been slow, particularly in the Federation where political division between ethnically-based political parties makes agreement on economic policy more difficult. A sizeable current account deficit and high unemployment rate remain the two most serious macroeconomic problems. Successful implementation of a value-added tax in 2006 provided a predictable source of revenue for the government and helped bring in gray market activity. National-level statistics have also improved over time but a large share of economic activity remains unofficial and unrecorded. Bosnia and Herzegovina became a full member of the Central European Free Trade Agreement in September 2007. Bosnia's economy has been largely sheltered from the global financial downtown although key economic indicators have worsened. Key exporters in the metal, automobile and wood processing industries have reported a worsening performance and have announced layoffs and output reductions.
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NewsThe worldwide chain of McDonald's fast food restaurants plans to invest around US $1 bn into developing its franchises in Europe next year, the Reuters newswire reported. At the same time, they will pay greater attention to developing countries. "The potential for growth in Central and Eastern Europe is huge. We have only opened 350 restaurants in Ukraine, Poland and Romania, which have a combined population of more than 100 million and flourishing economies", says Executive Director Ralf Alvarez. There are 63 McDonald's restaurants in Ukraine in 19 cities. The total amount of investments since they began operating in Ukraine (since 1997) exceeded US $100 mn. McDonald's Ukraine has around 5,000 employees across the country. Reuters Sep 2008
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