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Bosnia and Herzegovina

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   Bosna i Hercegovina
   Босна и Херцеговина
   Bosnia and Herzegovina

   Flag of Bosnia and Herzegovina Coat of arms of Bosnia and Herzegovina
   Flag                           Coat of arms
   Motto: none
   Anthem: " Intermeco"
   Location of Bosnia and Herzegovina
   Capital
   (and largest city) Sarajevo
   43°52′N 18°25′E
   Official languages Bosnian, Croatian, Serbian
   Government Republic
    - Presidency members Haris Silajdžić^1 ( Bosniak)
   Nebojša Radmanović ^( Serb)
   Željko Komšić ^( Croat)
    - Chairman of the Council of Ministers Adnan Terzić
   Independence from Yugoslavia
    - Recognized 6 April 1992
   Area
    - Total 51,197 km² ( 128th)
   19,767 sq mi
    - Water (%) negligible
   Population
    - July 2006 estimate 4,498,976^2 ( 127th^3)
    - 1991 census 4,377,033^
    - Density 76/km² ( 116th^3)
   197/sq mi
   GDP ( PPP) 2006 estimate
    - Total $24.33 billion ( 100th)
    - Per capita $6,159 ( 94th)
   HDI  (2006) 0.800 (high) ( 62nd)
   Currency Convertible mark ( BAM^4)
   Time zone CET ( UTC+1)
    - Summer ( DST) CEST ( UTC+2)
   Internet TLD .ba
   Calling code +387
   ^1 Current chairman of three-member rotating presidency.
   ^2 Population estimate from CIA World Factbook  . Other estimates are
   about 500,000 lower.
   ^3 Rank based on 2005 UN estimate of de facto population
   ^4 The euro is also widely accepted; the Croatian kuna ( HRK) also
   accepted in Croat-dominated areas of the Herzegovina region.

   Bosnia and Herzegovina, also known as the Republic of Bosnia and
   Herzegovina is a country on the Balkan peninsula of southern Europe
   with an area of 51,129 km² (19,741 square miles), and an estimated
   population of around four million people. It is known in the country's
   official languages as Bosna i Hercegovina or Босна и Херцеговина (in
   the Latin and Cyrillic alphabets respectively), although the name is
   commonly abbreviated to Bosnia, BIH', 'BiH or БиХ.

   The country is a homeland to three ethnic " constituent peoples":
   Bosniaks, Serbs and Croats. Regardless of ethnicity, a citizen of
   Bosnia and Herzegovina is often identified in English as a Bosnian. The
   country is decentralized and is administratively divided into two
   "entities", the Federation of Bosnia and Herzegovina and the Republika
   Srpska.

   Bordered by Croatia to the north, west and south, Serbia to the east,
   and Montenegro to the south, Bosnia and Herzegovina is landlocked,
   except for 20 km of the Adriatic Sea coastline, centered around the
   town of Neum. The interior of the country is heavily mountainous and
   divided by various rivers, most of which are nonnavigable. The nation's
   capital and largest city is Sarajevo.

   Formerly one of the six federal units constituting the Socialist
   Federal Republic of Yugoslavia, Bosnia and Herzegovina gained its
   independence during the Yugoslav wars of the 1990s. As a result of the
   Dayton Accords it is currently administered in a supervisory role by a
   High Representative selected by the Peace Implementaton Council. More
   recently the country has acquired many central institutions (such as
   ministry of defense, state court etc.) as it takes the jurisdiction
   back from its entities.

   Bosnia itself is the chief geographic region of the modern state, with
   a moderate continental climate, consisting of hot summers and cold,
   snowy winters. Herzegovina is the southern tip of the country, known
   for its starkly Mediterranean climate and topography. It was included
   first as the official name of the then Ottoman province official name
   in the mid-nineteenth century.

Etymology

   The first preserved mention of the name "Bosnia" lies in the De
   Administrando Imperio, a politico-geographical handbook written by
   Byzantine emperor Constantine VII in 958. The Chronicle of the Priest
   of Duklja from 1172- 1196 also names Bosnia, and references an earlier
   source from the year 753. The exact meaning and origin of the word is
   unclear. The most popular theory holds that Bosnia comes from the name
   of the Bosna river around which it has been historically based.
   Philologist Anton Mayer proposed a connection with the Indo-European
   root bos or bogh, meaning "running water". Certain Roman sources
   similarly mention Bathinus flumen, or the Illyrian word Bosona, both of
   which would mean "running water" as well. Other theories involve the
   rare Latin term Bosina, meaning boundary, and possible Slavic origins.

   The origins of the word "Herzegovina" can be identified with more
   precision and certainty. During the Early Middle Ages the region was
   known as Hum or Zahumlje, named after the Zachlumoi tribe of Slavs
   which inhabited it. In the 1440s, the region was ruled by powerful
   nobleman Stjepan Vukčić Kosača. In a document sent to Friedrich III on
   January 20, 1448, Stjepan Vukčić Kosača called himself Herzog of Saint
   Sava, lord of Hum and Primorje, great duke of the Bosnian kingdom
   (Herzog means duke in German) and so the lands he controlled would
   later become known as Herzog's lands or Herzegovina.

History

Pre-Slavic period

   Bosnia has been inhabited at least since Neolithic times. In the early
   Bronze Age, the Neolithic population was replaced by more warlike
   Indo-European tribes known as the Illyres or Illyrians. Celtic
   migrations in the 4th century BC and 3rd century BC displaced many
   Illyrian tribes from their former lands, but some Celtic and Illyrian
   tribes mixed. Concrete historical evidence for this period is scarce,
   but overall it appears that the region was populated by a number of
   different peoples speaking distinct languages. Conflict between the
   Illyrians and Romans started in 229 BC, but Rome would not complete its
   annexation of the region until 9 AD. In the Roman period,
   Latin-speaking settlers from all over the Roman empire settled among
   the Illyrians and Roman soldiers were encouraged to retire in the
   region.

   Christianity had already arrived in the region by the end of the 1st
   century, and numerous artifacts and objects from the time testify to
   this. Following events from the years 337 and 395 when the Empire
   split, Dalmatia and Pannonia were included in the Western Roman Empire.
   The region was conquered by the Ostrogoths in 455, and further
   exchanged hands between the Alans and Huns in the years to follow. By
   the 6th century, Emperor Justinian had re-conquered the area for the
   Byzantine Empire. The Slavs, a migratory people from northeastern
   Europe, were subjugated by the Avars in the 6th century, and together
   they invaded the Eastern Roman Empire in the 6th and 7th centuries,
   settling in what is now Bosnia and Herzegovina and the surrounding
   lands. The Serbs and Croats came in a second wave, invited by Emperor
   Heraclius to drive the Avars from Dalmatia.

Medieval Bosnia

   Bosnia in 10th century Bosnian state during Ban Kulin 1180-1204 Bosnian
   state during king Tvrtko 1353-1391 Borders of Bosnian state in second
   part of 15th century Bosnia and Herzegovina in second part of 19th
   century
   Enlarge
   Bosnia in 10th century
   Bosnian state during Ban Kulin 1180-1204
   Bosnian state during king Tvrtko 1353-1391
   Borders of Bosnian state in second part of 15th century
   Bosnia and Herzegovina in second part of 19th century

   Modern knowledge of the political situation in the west Balkans during
   the Dark Ages is patchy and confusing. Upon their arrival, the Slavs
   brought with them a tribal social structure, which probably fell apart
   and gave way to Feudalism only with Frankish penetration into the
   region in the late 9th century (Bosnia probably originated as one such
   pre-feudal Slavic entity). It was also around this time that the south
   Slavs were Christianized. Bosnia, due to its geographic position and
   terrain, was probably one of the last areas to go through this process,
   which presumably originated from the urban centers along the Dalmatian
   coast. The kingdoms of Serbia and Croatia split control of Bosnia and
   Herzegovina in the 9th and 10th century, but by the High Middle Ages
   political circumstance led to the area being contested between the
   Kingdom of Hungary and the Byzantine Empire. Following another shift of
   power between the two in the late 12th century, Bosnia found itself
   outside the control of both and emerged as an independent state under
   the rule of local bans.

   The first notable Bosnian monarch, Ban Kulin, presided over nearly
   three decades of peace and stability during which he strengthened the
   country's economy through treaties with Dubrovnik and Venice. His rule
   also marked the start of a controversy with the Bosnian Church, an
   indigenous Christian sect considered heretical by both the Roman
   Catholic and Eastern Orthodox churches. In response to Hungarian
   attempts to use church politics regarding the issue as a way to reclaim
   sovereignty over Bosnia, Kulin held a council of local church leaders
   to renounce the heresy in 1203. Despite this, Hungarian ambitions
   remained unchanged long after Kulin's death in 1204, waning only after
   an unsuccessful invasion in 1254.

   Bosnian history from then until the early 14th century was marked by
   the power struggle between the Šubić and Kotromanić families. This
   conflict came to an end in 1322, when Stjepan II Kotromanić became ban.
   By the time of his death in 1353, he had succeeded in annexing
   territories to the north and west, as well as Zahumlje and parts of
   Dalmatia. He was succeeded by his nephew Tvrtko who, following a
   prolonged struggle with nobility and inter-family strife, gained full
   control of the country in 1367. Under Tvrtko, Bosnia grew in both size
   and power, finally becoming an independent kingdom in 1377 when he was
   crowned in Mile near Visoko. Following his death in 1391 however,
   Bosnia fell into a long period of decline. The Ottoman Empire had
   already started its conquest of Europe and posed a major threat to the
   Balkans throughout the first half of the 15th century. Finally, after
   decades of political and social instability, Bosnia officially fell in
   1463. Herzegovina would follow in 1482, with a Hungarian-backed
   reinstated "Bosnian Kingdom" being the last to succumb in 1527.

Ottoman era

   The Ottoman province of Bosnia in 17th century.
   Enlarge
   The Ottoman province of Bosnia in 17th century.

   The Ottoman conquest of Bosnia marked a new era in the country's
   history and introduced tremendous changes in the political and cultural
   landscape of the region. Although the kingdom had been crushed and its
   high nobility executed, the Ottomans nonetheless allowed for the
   preservation of Bosnia's identity by incorporating it as an integral
   province of the Ottoman Empire with its historical name and territorial
   integrity - a unique case among subjugated states in the Balkans.
   Within this sandžak (and eventual vilayet) of Bosnia, the Ottomans
   introduced a number of key changes in the territory's socio-political
   administration; including a new landholding system, a reorganization of
   administrative units, and a complex system of social differentiation by
   class and religious affiliation.

   The four centuries of Ottoman rule also had a drastic impact on
   Bosnia's population make-up, which changed several times as a result of
   the empire's conquests, frequent wars with European powers, migrations,
   and epidemics. A native Slavic-speaking Muslim community emerged and
   eventually became the largest of the ethno-religious groups (mainly as
   a result of a gradually rising number of conversions to Islam), while a
   significant number of Sephardi Jews arrived following their expulsion
   from Spain in the late 15th century. The Bosnian Christian communities
   also experienced major changes. The Bosnian Franciscans (and the
   Catholic population as a whole) were protected by official imperial
   decree, although on the ground these guarantees were often disregarded
   and their numbers dwindled. The Orthodox community in Bosnia, initially
   confined to Herzegovina and Podrinje, spread throughout the country
   during this period and went on to experience relative prosperity until
   the 19th century. Meanwhile, the schismatic Bosnian Church disappeared
   altogether.

   As the Ottoman Empire thrived and expanded into Central Europe, Bosnia
   was relieved of the pressures of being a frontier province and
   experienced a prolonged period of general welfare and prosperity. A
   number of cities, such as Sarajevo and Mostar, were established and
   grew into major regional centers of trade and urban culture. Within
   these cities, various Sultans and governors financed the construction
   of many important works of Bosnian architecture (such as the Stari most
   and Gazi Husrev-beg's Mosque). Furthermore, numerous Bosnians played
   influential roles in the Ottoman Empire's cultural and political
   history during this time. Bosnian soldiers formed a large component of
   the Ottoman ranks in the battles of Mohács and Krbava field, two
   decisive military victories, while numerous other Bosnians rose through
   the ranks of the Ottoman military bureaucracy to occupy the highest
   positions of power in the Empire, including admirals, generals, and
   grand viziers. Many Bosnians also made a lasting impression on Ottoman
   culture, emerging as mystics, scholars, and celebrated poets in the
   Turkish, Arabic, and Persian languages.

   However, by the late 17th century the Empire's military misfortunes
   caught up with the country, and the conclusion of the Great Turkish War
   with the treaty of Karlowitz in 1699 once again made Bosnia the
   Empire's westernmost province. The following hundred years were marked
   by further military failures, numerous revolts within Bosnia, and
   several outbursts of plague. The Porte's efforts at modernizing the
   Ottoman state were met with great hostility in Bosnia, where local
   aristocrats stood to lose much through the proposed reforms. This,
   combined with frustrations over political concessions to nascent
   Christian states in the east, culminated in a famous (albeit ultimately
   unsuccessful) revolt by Husein Gradaščević in 1831. Related rebellions
   would be extinguished by 1850, but the situation continued to
   deteriorate. Later agrarian unrest eventually sparked the Herzegovinian
   rebellion, a widespread peasant uprising, in 1875. The conflict rapidly
   spread and came to involve several Balkan states and Great Powers,
   which eventually forced the Ottomans to cede administration of the
   country to Austria-Hungary through the treaty of Berlin in 1878.

Austro-Hungarian rule

   Though an Austro-Hungarian occupying force quickly subjugated initial
   armed resistance upon take-over, tensions remained in certain parts of
   the country (particularly Herzegovina) and a mass emigration of
   predominantly Muslim dissidents occurred. However, a state of relative
   stability was reached soon enough and Austro-Hungarian authorities were
   able to embark on a number of social and administrative reforms which
   intended to make Bosnia and Herzegovina into a "model colony". With the
   aim of establishing the province as a stable political model that would
   help dissipate rising South Slav nationalism, Habsburg rule did much to
   codify laws, to introduce new political practices, and generally to
   provide for modernization.

   Although successful economically, Austro-Hungarian policy - which
   focused on advocating the ideal of a pluralist and multi-confessional
   Bosnian nation (largely favored by the Muslims) - failed to curb the
   rising tides of nationalism. The concept of Croat and Serb nationhood
   had already spread to Bosnia and Herzegovina's Catholics and Orthodox
   communities from neighboring Croatia and Serbia in the mid 19th
   century, and was too well-entrenched to allow for the wide-spread
   acceptance of a parallel idea of Bosnian nationhood. By the latter half
   of the 1910s, nationalism was an integral factor of Bosnian politics,
   with national political parties corresponding to the three groups
   dominating elections.

   The idea of a unified South Slavic state (typically expected to be
   spear-headed by independent Serbia) became a popular political ideology
   in the region at this time, including in Bosnia and Herzegovina. The
   Austro-Hungarian government's decision to formally annex
   Bosnia-Herzegovina in 1908 (see Bosnian Crisis) added to a sense of
   urgency among these nationalists. The political tensions caused by all
   this culminated on June 28, 1914, when Serb nationalist youth Gavrilo
   Princip assassinated the heir to the Austro-Hungarian throne, Archduke
   Franz Ferdinand, in Sarajevo; an event that proved to be the spark that
   set off World War I. Although some Bosnians died serving in the armies
   of the various warring states, Bosnia and Herzegovina itself managed to
   escape the conflict relatively unscathed.

The first Yugoslavia

   Following the war, Bosnia was incorporated into the South Slav kingdom
   of Serbs, Croats and Slovenes (soon renamed Yugoslavia). Political life
   in Bosnia at this time was marked by two major trends: social and
   economic unrest over property redistribution, and formation of several
   political parties that frequently changed coalitions and alliances with
   parties in other Yugoslav regions. The dominant ideological conflict of
   the Yugoslav state, between Croatian regionalism and Serbian
   centralization, was approached differently by Bosnia's major ethnic
   groups and was dependent on the overall political atmosphere. Although
   the initial split of the country into 33 oblasts erased the presence of
   traditional geographic entities from the map, the efforts of Bosnian
   politicians such as Mehmed Spaho ensured that the six oblasts carved up
   from Bosnia and Herzegovina corresponded to the six sanjaks from
   Ottoman times and, thus, matched the country's traditional boundary as
   a whole.

   The establishment of the Kingdom of Yugoslavia in 1929, however,
   brought the redrawing of administrative regions into banates that
   purposely avoided all historical and ethnic lines, removing any trace
   of a Bosnian entity. Serbo-Croat tensions over the structuring of the
   Yugoslav state continued, with the concept of a separate Bosnian
   division receiving little or no consideration. The famous Cvetković-
   Maček agreement that created the Croatian banate in 1939 encouraged
   what was essentially a partition of Bosnia between Croatia and Serbia.
   However, outside political circumstances forced Yugoslav politicians to
   shift their attention to the rising threat posed by Adolf Hitler's Nazi
   Germany. Following a period that saw attempts at appeasement, the
   signing of the Tripartite Treaty, and a coup d'état, Yugoslavia was
   finally invaded by Germany on April 6, 1941.

World War II

   A Monument commemorating the Battle of Sutjeska in eastern B&H.
   Enlarge
   A Monument commemorating the Battle of Sutjeska in eastern B&H.

   Once the kingdom of Yugoslavia was conquered by Nazi forces in World
   War II, all of Bosnia was ceded to the Nazi-puppet state of Croatia.
   The Nazi rule over Bosnia led to widespread persecution of Jewish,
   Serbian and Gypsy civilians. The Jewish population was nearly
   exterminated and roughly 750,000 Serbs died as a result of genocide
   perpetrated by the Croatian Ustasha. Many Serbs in the area took up
   arms and joined the Chetniks; a Serb nationalist and royalist
   resistance movement that conducted guerrilla warfare against the Nazis.

   Starting in 1941, Yugoslav communists under the leadership of Josip
   Broz Tito organized their own multi-ethnic resistance group, the
   partisans, who fought against both Axis and Chetnik forces. On November
   25, 1943 the Anti-Fascist Council of National Liberation of Yugoslavia
   with Tito at its helm held a founding conference in Jajce where Bosnia
   and Herzegovina was reestablished as a republic within the Yugoslavian
   federation in its Ottoman borders. Military success eventually prompted
   the Allies to support the Partisans, and the end of the war resulted in
   the establishment of the Socialist Federal Republic of Yugoslavia, with
   the constitution of 1946 officially making Bosnia and Herzegovina one
   of six constituent republics in the new state.

Socialist Yugoslavia

   Because of its central geographic position within the Yugoslavian
   federation, post-war Bosnia was strategically selected as a base for
   the development of the military defense industry. This contributed to a
   large concentration of arms and military personnel in Bosnia; a
   significant factor in the war that followed the break-up of Yugoslavia
   in the 1990s. However, Bosnia's existence within Yugoslavia, for the
   large part, was peaceful and prosperous. Being one of the poorer
   republics in the early 1950s it quickly recovered economically, taking
   advantage of its extensive natural resources to stimulate industrial
   development. The Yugoslavian communist doctrine of " brotherhood and
   unity" particularly suited Bosnia's diverse and multi-ethnic society
   that, because of such an imposed system of tolerance, thrived
   culturally and socially.

   Though considered a political backwater of the federation for much of
   the 50s and 60s, the 70s saw the ascension of a strong Bosnian
   political elite fueled in part by Tito's leadership in the non-aligned
   movement and Bosnian Muslims serving in Yugoslavia's diplomatic corps.
   While working within the communist system, politicians such as Džemal
   Bijedić, Branko Mikulić and Hamdija Pozderac reinforced and protected
   the sovereignty of Bosnia and Herzegovina Their efforts proved key
   during the turbulent period following Tito's death in 1980, and are
   today considered some of the early steps towards Bosnian independence.
   However, the republic hardly escaped the increasingly nationalistic
   climate of the time unscathed. With the fall of communism and the start
   of the break-up of Yugoslavia, the old communist doctrine of tolerance
   began to lose its potency, creating an opportunity for nationalist
   elements in the society to spread their influence.

The Bosnian War

   Situation on the ground in the closing days of the war.
   Enlarge
   Situation on the ground in the closing days of the war.

   The 1990 parliamentary elections led to a national assembly dominated
   by three ethnically-based parties, which had formed a loose coalition
   to oust the communists from power. Croatia and Slovenia's subsequent
   declarations of independence and the warfare that ensued placed Bosnia
   and Herzegovina and its three constituent peoples in an awkward
   position. A significant split soon developed on the issue of whether to
   stay with the Yugoslav federation (overwhelmingly favored among Serbs)
   or seek independence (overwhelmingly favored among Bosniaks and
   Croats). A declaration of sovereignty in October of 1991 was followed
   by a referendum for independence from Yugoslavia in February and March
   1992 boycotted by the great majority of Bosnian Serbs. With a voter
   turnout of 64%, 99.4% of which voted in favour of the proposal, Bosnia
   and Herzegovina became an independent state. Following a tense period
   of escalating tensions and sporadic military incidents, open warfare
   began in Sarajevo on April 6.

   International recognition of Bosnia and Herzegovina increased
   diplomatic pressure for the Yugoslav People's Army (JNA) to withdraw
   from the republic's territory which they officially did, however, in
   fact, the Bosnian Serb members of JNA simply changed insignia, formed
   the Army of Republika Srpska, and continued fighting. Armed and
   equipped from JNA stockpiles in Bosnia, supported by volunteers and
   various paramilitary forces from Serbia, and receiving extensive
   humanitarian, logistical and financial support from the Federal
   Republic of Yugoslavia, Republika Srpska's offensives in 1992 managed
   to place much of the country under its control. By 1993, when an armed
   conflict erupted between the Sarajevo government and the Croat statelet
   of Herzeg-Bosnia, about 70% of the country was controlled by Republika
   Srpska.

   In March 1994, the signing of the Washington accords between the
   leaders of the republican government and Herzeg-Bosnia led to the
   creation of a joint Bosniak-Croat Federation of Bosnia and Herzegovina.
   This, along with international outrage at Serb war crimes and
   atrocities (most notably the genocidal killing of more than 8,000
   Bosniak males in Srebrenica in July, 1995), eventually turned the tide
   of war. The signing of the Dayton Agreement in Dayton, Ohio by the
   presidents of Bosnia and Herzegovina ( Alija Izetbegović), Croatia (
   Franjo Tuđman), and Yugoslavia ( Slobodan Milošević) brought a halt to
   the fighting, roughly establishing the basic structure of the
   present-day state. The most recent research places the number of
   victims at around 100,000–110,000 killed (civilians and military), and
   1.8 million displaced.

Politics and government

   The system of government established by the Dayton Accord is an example
   of consociationalism, as representation is by elites who represent the
   country's three major groups, with each having a guaranteed share of
   power. The Chair of the Presidency of Bosnia and Herzegovina rotates
   among three members ( Bosniak, Serb, Croat), each elected as the Chair
   for an 8-month term within their 4-year term as a member. The three
   members of the Presidency are elected directly by the people
   (Federation votes for the Bosniak/Croat, Republika Srpska for the
   Serb). The Chair of the Council of Ministers is nominated by the
   Presidency and approved by the House of Representatives. He or she is
   then responsible for appointing a Foreign Minister, Minister of Foreign
   Trade, and others as appropriate.

   The Parliamentary Assembly is the lawmaking body in Bosnia and
   Herzegovina. It consists of two houses: the House of Peoples and the
   House of Representatives. The House of Peoples includes 15 delegates,
   two-thirds of which come from the Federation (5 Croat and 5 Bosniaks)
   and one-third from the Republika Srpska (5 Serbs). The House of
   Representatives is composed of 42 Members, two-thirds elected from the
   Federation and one-third elected from the Republika Srpska.

   The Constitutional Court of Bosnia and Herzegovina is the supreme,
   final arbiter of legal matters. It is composed of nine members: four
   members are selected by the House of Representatives of the Federation,
   two by the Assembly of the Republika Srpska, and three by the President
   of the European Court of Human Rights after consultation with the
   Presidency.

Administrative divisions

   Bosnia & Herzegovina comprises the Federation of Bosnia & Herzegovina
   (FBiH), the Republika Srpska (RS), and the Brčko District (BD).
   Enlarge
   Bosnia & Herzegovina comprises the Federation of Bosnia & Herzegovina
   (FBiH), the Republika Srpska (RS), and the Brčko District (BD).
   The FBiH consists of ten cantons.
   Enlarge
   The FBiH consists of ten cantons.
   Bosnia & Herzegovina is further split into 137 municipalities.
   Enlarge
   Bosnia & Herzegovina is further split into 137 municipalities.

   Bosnia and Herzegovina has several levels of political structuring
   under the federal government level. Most important of these levels is
   the division of the country into two entities: Republika Srpska and the
   Federation of Bosnia and Herzegovina. The Federation of Bosnia and
   Herzegovina covers some 51% of Bosnia and Herzegovina's total area,
   while Republika Srpska covers around 49%. The entities, based largely
   on the territories held by the two warring sides at the time, were
   formally established by the Dayton peace agreement in 1995 due to the
   tremendous changes in Bosnia and Herzegovina's ethnic structure. Since
   1996 the power of the entities relative to the federal government has
   decreased significantly. Nonetheless, entities still have numerous
   powers to themselves. The Brčko federal district in the north of the
   country was created in 2000 out of land from both entities. It
   officially belongs to both, but is governed by neither, and functions
   under a decentralized system of local government. The Brčko district
   has been praised for maintaining a multiethnic population and a level
   of prosperity significantly above the national average.

   The third level of Bosnia and Herzegovina's political subdivision is
   manifested in cantons. They are unique to the Federation of Bosnia and
   Herzegovina entity, which consists of ten of them. All of them have
   their own cantonal government, which is under the law of the Federation
   as a whole. Some cantons are ethnically mixed and have special laws
   implemented to ensure the equality of all constituent peoples.

   The fourth level of political division in Bosnia and Herzegovina are
   the municipalities. The country consists of 137 municipalities, of
   which 74 are in the Federation of Bosnia and Herzegovina and 63 in
   Republika Srpska. Municiaplities also have their own local government,
   and are typically based around the most significant city or place in
   the region. As such, many municipalities have a long tradition and
   history with their present boundaries. Some others, however, were only
   created following the recent war after traditional municipalities were
   split by the IEBL. Each canton in the Federation of Bosnia and
   Herzegovina consists of several municipalities, with the municipalities
   themselves further divided into local communities.

   Besides entities, cantons, and municipalities, Bosnia and Herzegovina
   also has four "official" cities. These are: Banja Luka, Mostar,
   Sarajevo, and East Sarajevo. The territory and government of the cities
   of Banja Luka and Mostar corresponds to the municipalities of the same
   name, while the cities of Sarajevo and East Sarajevo officially consist
   of several municipalities. Cities have their own city government whose
   power is in between that of the municipalities and cantons (or entity,
   in the case of Republika Srpska).

Geography

   Map of Bosnia and Herzegovina
   Map of Bosnia and Herzegovina
   Red flower from central Bosnia
   Enlarge
   Red flower from central Bosnia
   Mountains in Bosnia, view of mountain Kik (right mountain) which is
   1,000 m (3,280 ft) and Rance (Suvi Vrh) to the left 1,432 m (4,698 ft)
   Enlarge
   Mountains in Bosnia, view of mountain Kik (right mountain) which is
   1,000 m (3,280  ft) and Rance (Suvi Vrh) to the left 1,432 m (4,698 ft)

   Bosnia is located in the western Balkans, bordering Croatia (932km) to
   the north and south-west, Serbia (302km) to the east, and Montenegro
   (225km) to the southeast. The country is mostly mountainous,
   encompassing the central Dinaric Alps. The northeastern parts reach
   into the Pannonian basin, while in the south it borders the Adriatic.
   The country has only 20 kilometres (12 mi) of coastline, around the
   town of Neum in the Herzegovina-Neretva Canton, although it's enclosed
   within Croatian territory and territorial waters. Neum has many hotels
   and an is important tourism destination.

   The country's name comes from the two regions Bosnia and Herzegovina,
   which have a very vaguely defined border between them. Bosnia occupies
   the northern areas which are roughly four fifths of the entire country,
   while Herzegovina occupies the rest in the south part of the country.

   The major cities are the capital Sarajevo, Banja Luka in the northwest
   region known as Bosanska Krajina, Bijeljina and Tuzla in the northeast,
   Zenica in the central part of Bosnia and Mostar, the capital of
   Herzegovina.

   The south part of Bosnia has Mediterranean climate and a great deal of
   agriculture. Central Bosnia is the most mountainous part of Bosnia
   featuring predominate mountains Vlasic, Cvrsnica, and Prenj. Eastern
   Bosnia also features mountains like Trebevic, Jahorina, Igman,
   Bjelasnica and Treskavica. It was here that the Olympic games were held
   in 1984.

   Eastern Bosnia is heavily forested along the river Drina, and overall
   close to 50% of Bosnia and Herzegovina is forested. Most forest areas
   are in Central, Eastern and Western parts of Bosnia. Northern Bosnia
   contains very fertile agricultural land along the river Sava and the
   corresponding area is heavily farmed. This farmland is a part of the
   Parapannonian Plain stretching into neighbouring Croatia and Serbia.
   The river Sava and corresponding Posavina river basin hold the cities
   of Brcko, Bosanski Samac, Bosanski Brod and Bosanska Gradiska.

   The northwest part of Bosnia is called Bosanska Krajina and holds the
   cities of Banja Luka, Sanski Most, Cazin, Velika Kladisa and Bihać.
   Kozara National Park is in this forested region.

   There are 7 major rivers in the Republic of Bosnia and Herzegovina: The
   Una river in the northwest part of Bosnia flows along the northern and
   western border of Bosnia and Croatia and through the Bosnian city of
   Bihac. It is a very beautiful river and popular for rafting and
   adventure sports.

   The Sana flows through the city of Sanski Most and is a tributary of
   the river Sava in the north.

   The Vrbas flows through the cities of Gornji Vakuf - Uskoplje, Bugojno,
   Jajce and Banja Luka and reaches the river Sava in the north. The Vrbas
   flows through the central part of Bosnia and flows outwards to the
   North.

   The River Bosna is the longest river in Bosnia and is fully contained
   within the country as it stretches from its source near Sarajevo to the
   river Sava in the north.

   The Drina flows through the eastern part of Bosnia, at many places in
   the border between Bosnia and Serbia. The Drina flows through the
   cities of Foca, Gorazde and Visegrad.

   The Neretva river is a large river in Central and Southern Bosnia,
   flowing from Jablanica south to the Adriatic Sea. The river is famous
   as it flows through the famous city of Mostar.

   The Sava river is the largest river in Bosnia and Herzegovina but not
   the largest river that is flowing through Bosnia and Herzegovina. The
   Sava river flows through Serbia, Bosnia and Herzegovina and Croatia.
   Sava is making a natural border between Bosnia and Herzegovina and
   Croatia and towns like Brcko, Bosanski Samac, Bosanska Gradiska lies on
   the river.

Economy

   Bosnia faces the dual problem of rebuilding a war-torn country and
   introducing market reforms to its former centrally planned economy. One
   legacy of the previous era is a greatly overstaffed military industry;
   under former dictator Josip Broz Tito, military industries were
   promoted in the republic, resulting in the development of a large share
   of Yugoslavia's defense plants but fewer commercially viable firms.

   For the most part in Bosnia's history, agriculture has been based on
   privately-owned small and inefficient farms, and food has traditionally
   been a net import for the republic.

   When it was a part of Yugoslavia, Bosnia and Herzegovina financed many
   large construction projects throughout that country. The Highway
   "Bratstvo i jedinstvo", a pan-Yugoslavian project, which linked
   Ljubljana (Slovenia) - Zagreb (Croatia) - Belgrade (Serbia) - Skopje
   (Macedonia), was financed by Bosnia and Herzegovina, despite the lack
   of direct benefit to that region. The funneling of capital to that
   project resulted in an increase in unemployment and a decrease in
   production in the region.

   The war in the 1990s caused a dramatic change in the Bosnian economy.
   Production fell to 6%, GDP fell 75% and the destruction of physical
   infrastructure created massive economic trauma. While much of the
   production capacity has been restored, the Bosnian economy still faces
   considerable difficulties. Figures show GDP and per capita income
   increased 10% from 2003 to 2004; this and Bosnia's shrinking national
   debt are positive trends, but high unemployment and a large trade
   deficit remain cause for concern.
   Legal tender coins from Bosnia-Herzegovina
   Enlarge
   Legal tender coins from Bosnia-Herzegovina

   The national currency is the Bosnia and Herzegovina convertible mark
   (BAM), which is fixed to the Euro (€1 = KM1.95583) and is therefore
   very stable. Yearly inflation is the lowest in comparison to other
   countries that were formerly part of Yugoslavia. The inflation rate was
   1.9% in 2004, and international debt was $3.1 billion (2005 est);
   making it the smallest amount of debt owed from the former Yugoslav
   countries (Serbia and Montenegro's international debt is $15.43 billion
   (2005 est), while Croatia is at $29.28 billion (2005 est)). Real GDP
   growth rate was 5% for 2004 according to the Bosnian Central Bank of
   BiH and Statistical Office of Bosnia and Herzegovina.

   Bosnia and Herzegovina has one of the best income equality rankings in
   the world, ranked eighth among the world's 193 nations.

   Overall investment value ( 1994- 2002):
     * 1994- 97: 39,563,000 KM
     * 1998: 55,750,000 KM
     * 1999: 154,067,000 KM
     * 2000: 147,214,000 KM
     * 2001: 130,172,000 KM
     * 2002: 321,446,000 KM
     * Total ( 1994- 2002): 805,013,000 KM

   It is important to note the 247% spike in 2002 from the preceding year,
   illumating an ever growing interest and sense of stability. Foreign
   investors have come to trust in their investments in Bosnia and
   Herzegovina.

   The largest foreign investments (1996 - 2006) in the country have come
   from:
     * Croatia (308.444.000 €)
     * Austria (279.533.000 €)
     * Lithuania (252.395.000 €)
     * Slovenia (236.532.000 €)
     * Netherlands (204.889.000 €)
     * Germany (130.984.000 €)

   Foreign investments by sector:
     * 55.5% Manufacturing
     * 16.5% Banking
     * 8.6% Services
     * 6.2% Trade
     * 0.9% Transport
     * 0,7% Tourism

Tourism

   BiH has been a top performer in recent years in terms of tourism
   development; tourist arrivals have grown by an average of 24% annually
   from 1995 to 2000 (360,758 in 2002). According to an estimation of the
   World Tourism Organization, BiH will have the third highest tourism
   growth rate in the world between 1995 and 2020. The major sending
   countries in 2002 have been Serbia, Montenegro, Croatia, Slovenia,
   Germany, Italy, United States, Poland, United Kingdom, Austria, and
   Spain.
     * Visit: Hidden Bosnia — places and trips.

Demographics

   Ethnic map of Bosnia and Herzegovina, 2006 municipality data (est.).
   Bosnian Serbs - blue, Bosnian Croats - red, Bosniaks - green.
   Enlarge
   Ethnic map of Bosnia and Herzegovina, 2006 municipality data (est.).
   Bosnian Serbs - blue, Bosnian Croats - red, Bosniaks - green.

   Large population migrations during the Yugoslav wars in the 1990s have
   caused a large demographic shift in the country. No census has been
   taken since 1991, and none is planned for the near future due to
   political disagreements. Since censuses are the only statistical,
   inclusive, and objective way to analyze demographics, almost all of the
   post-war data is simply an estimate. Most sources, however, estimate
   the population at roughly 4 million (representing a decrease of 350,000
   since 1991).
   Ethnic composition of Bosnia & Herzegovina in 1991 (local community
   data).
   Enlarge
   Ethnic composition of Bosnia & Herzegovina in 1991 (local community
   data).

   According to the 1991 census, Bosnia and Herzegovina had a population
   of 4,354,911. Ethnically, 43.7% were Bosniaks, 31.3% Serbs, and 17.3%
   Croats, with 5.5% declaring themselves Yugoslavs.

   According to 2000 data from the CIA World Factbook, Bosnia and
   Herzegovina is ethnically 48% Bosniak, 37.1% Serb, 14.3% Croat, 0.6%
   Other.

   It is believed by some that Bosniaks now have an outright majority in
   Bosnia and Herzegovina, although that is speculation, as no census has
   been conducted for over 15 years.
   Ethnic composition of Bosnia & Herzegovina in 1991 (municipality data).
   Enlarge
   Ethnic composition of Bosnia & Herzegovina in 1991 (municipality data).

   There is a strong correlation between ethnic identity and religion in
   Bosnia and Herzegovina. as is shown by the fact that 90% of Bosniaks
   are Muslims whilst 93% of Serbs are Orthodox Christians. Tensions
   between the three constitutional peoples remain high in BiH and often
   provoke political disagreements. Each of the three peoples are
   influential to roughly a same degree in Bosnia with Bosniaks being the
   most numerous, Serbs having their own entity, and Croats, though
   politically marginalized, being the strongest economically.

   In Bosnia and Herzegovina Islam is the largest single religion with an
   estimated 48% being Muslim. The second largest religion in Bosnia and
   Herzegovina is Serb Orthodox Christianity, accounting for an estimated
   37%, and the third largest religion in Bosnia and Herzegovina is Roman
   Catholicism, with 14% being Catholics.

Education

   As part of the former Socialist Federal Republic of Yugoslavia, Bosnia
   enjoyed a highly-developed educational system. This system not only
   encouraged study and higher education, but it also respected academic
   achievements. Two of Bosnia’s natives were awarded Nobel Prizes from
   this era: Vladimir Prelog, for chemistry in 1975, and Ivo Andrić, for
   literature in 1961; ex-Yugoslavia had three Nobel Prize winners all
   together, the third was Lavoslav Ružička from Croatia. This
   concentration of talent is remarkable in a country whose total
   population was severely depleted due to the diaspora of individuals
   fleeing during the recent war years. Bosnian college students abroad
   are good and recognized students; most of them attend universities in
   North America, Australia, and other European countries.

   The recent war created a “brain drain” and resulted in many Bosnians
   working in high-tech, academic and professional occupations in North
   America, Europe, and Australia. Such situation is viewed as an economic
   opportunity for building a vibrant economy in today’s Bosnia. However,
   only few of Bosnia’s diaspora are returning to Bosnia and Herzegovina
   with their experience, western education and exposure to modern
   business practices. Most still lack professional incentives to justify
   widespread and permanent return to their homeland.

   Bosnia’s current educational system—with seven universities, one in
   every major city, plus satellite campuses—continues to turn out
   highly-educated graduates in math, science and literature. However,
   they have not been modernized in last 15 years due to the war and
   various political and economic reasons and as a result do not meet
   Western educational standards which are part of criteria for EU
   membership. The need for reform of the current Bosnian education system
   is generally acknowledged although specific methods for its change have
   still not been formulated.

Sport

   Bosnia and Herzegovina has produced many good sports stars. Many of
   them were famous in the Yugoslav national teams before Bosnia and
   Herzegovina's independence.

   The Yugoslav national basketball team, which medaled in every world
   championship from 1963 through 1990, has included Bosnian stars like
   Drazen Dalipagic and Mirza Delibasic. Other internationally famous
   players from Bosnia and Herzegovina include Zoran Savic, Vladimir
   Radmanovic, Zoran Planinic and Aleksandar Nikolic. Bosnia and
   Herzegovina regularly qualifies for the European Championship in
   Basketball.

   In football, Bosnia and Herzegovina has not qualified for a big
   championship yet. Mirsad Hibic, Elvir Bolic, Elvir Baljic, Mirsad
   Bešlija, Meho Kodro, Sergej Barbarez, and Hasan Salihamidzic are famous
   Bosnian football players who have played for the Bosnia and Herzegovina
   national football team. The former Yugoslav national football team
   included famous Bosnian players, such as Josip Katalinski, Dusan
   Bajevic, Ivica Osim, Safet Susic, and Mirsad Fazlagic.

   Bosnia and Herzegovina is the current world champion in paralympic
   volleyball. One thing that makes the players so respected is the fact
   that they lost their legs in the War of 1992-1995.

   Bosnian national teams face a struggle to get all the best players born
   in the country to play for them. Many players born in Bosnia and
   Herzegovina choose to play for other countries due to their ethnic
   identification and also because of higher salaries offered by other
   teams. For example Mario Stanic and Mile Mitic were both born in
   Bosnia, but choose to play for Croatia and Serbia respectively.

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