Serbia vs. Bosnia and Herzegovina

The Kingdom of Serbs, Croats, and Slovenes was formed in 1918; its name was changed to Yugoslavia in 1929. Communist Partisans resisted the Axis occupation and division of Yugoslavia from 1941 to 1945 and fought nationalist opponents and collaborators as well. The military and political movement headed by Josip Broz "TITO" (Partisans) took full control of Yugoslavia when their domestic rivals and the occupiers were defeated in 1945. Although communists, TITO and his successors (Tito died in 1980) managed to steer their own path between the Warsaw Pact nations and the West for the next four and a half decades. In 1989, Slobodan MILOSEVIC became president of the Republic of Serbia and his ultranationalist calls for Serbian domination led to the violent breakup of Yugoslavia along ethnic lines. In 1991, Croatia, Slovenia, and Macedonia declared independence, followed by Bosnia in 1992. The remaining republics of Serbia and Montenegro declared a new Federal Republic of Yugoslavia (FRY) in April 1992 and under MILOSEVIC's leadership, Serbia led various military campaigns to unite ethnic Serbs in neighboring republics into a "Greater Serbia." These actions ultimately failed and, after international intervention, led to the signing of the Dayton Peace Accords in 1995.

MILOSEVIC retained control over Serbia and eventually became president of the FRY in 1997. In 1998, an ethnic Albanian insurgency in the formerly autonomous Serbian province of Kosovo provoked a Serbian counterinsurgency campaign that resulted in massacres and massive expulsions of ethnic Albanians living in Kosovo. The MILOSEVIC government's rejection of a proposed international settlement led to NATO's bombing of Serbia in the spring of 1999. Serbian military and police forces withdrew from Kosovo in June 1999, and the UN Security Council authorized an interim UN administration and a NATO-led security force in Kosovo. FRY elections in late 2000 led to the ouster of MILOSEVIC and the installation of democratic government. In 2003, the FRY became the State Union of Serbia and Montenegro, a loose federation of the two republics. Widespread violence predominantly targeting ethnic Serbs in Kosovo in March 2004 led to more intense calls to address Kosovo's status, and the UN began facilitating status talks in 2006. In June 2006, Montenegro seceded from the federation and declared itself an independent nation. Serbia subsequently gave notice that it was the successor state to the union of Serbia and Montenegro.

In February 2008, after nearly two years of inconclusive negotiations, Kosovo declared itself independent of Serbia - an action Serbia refuses to recognize. At Serbia's request, the UN General Assembly (UNGA) in October 2008 sought an advisory opinion from the International Court of Justice (ICJ) on whether Kosovo's unilateral declaration of independence was in accordance with international law. In a ruling considered unfavorable to Serbia, the ICJ issued an advisory opinion in July 2010 stating that international law did not prohibit declarations of independence. In late 2010, Serbia agreed to an EU-drafted UNGA Resolution acknowledging the ICJ's decision and calling for a new round of talks between Serbia and Kosovo, this time on practical issues rather than Kosovo's status. Serbia and Kosovo signed the first agreement of principles governing the normalization of relations between the two countries in April 2013 and are in the process of implementing its provisions. In 2015, Serbia and Kosovo reached four additional agreements within the EU-led Brussels Dialogue framework. These included agreements on the Community of Serb-Majority Municipalities; telecommunications; energy production and distribution; and freedom of movement. President Aleksandar VUCIC has promoted an ambitious goal of Serbia joining the EU by 2025. Under his leadership as prime minister, in 2014 Serbia opened formal negotiations for accession.

Bosnia and Herzegovina declared sovereignty in October 1991 and 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 ended 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 multiethnic and democratic government charged with conducting foreign, diplomatic, and fiscal policy. Also recognized was a second tier of government composed of two entities roughly equal in size: the predominantly Bosniak-Bosnian Croat Federation of Bosnia and Herzegovina and the predominantly Bosnian Serb-led Republika Srpska (RS). The Federation and RS governments are responsible for overseeing most government functions. Additionally, the Dayton Accords established the Office of the High Representative to oversee the implementation of the civilian aspects of the agreement. The Peace Implementation Council at its conference in Bonn in 1997 also gave the High Representative the authority to impose legislation and remove officials, the so-called "Bonn Powers." An original NATO-led international peacekeeping force (IFOR) of 60,000 troops assembled in 1995 was succeeded over time by a smaller, NATO-led Stabilization Force (SFOR). In 2004, European Union peacekeeping troops (EUFOR) replaced SFOR. Currently, EUFOR deploys around 600 troops in theater in a security assistance and training capacity.

119 municipalities (opstine, singular - opstina) and 26 cities (gradovi, singular - grad)

municipalities: Ada*, Aleksandrovac, Aleksinac, Alibunar*, Apatin*, Arandelovac, Arilje, Babusnica, Bac*, Backa Palanka*, Backa Topola*, Backi Petrovac*, Bajina Basta, Batocina, Becej*, Bela Crkva*, Bela Palanka, Beocin*, Blace, Bogatic, Bojnik, Boljevac, Bor, Bosilegrad, Brus, Bujanovac, Cajetina, Cicevac, Coka*, Crna Trava, Cuprija, Despotovac, Dimitrov, Doljevac, Gadzin Han, Golubac, Gornji Milanovac, Indija*, Irig*, Ivanjica, Kanjiza*, Kladovo, Knic, Knjazevac, Koceljeva, Kosjeric, Kovacica*, Kovin*, Krupanj, Kucevo, Kula*, Kursumlija, Lajkovac, Lapovo, Lebane, Ljig, Ljubovija, Lucani, Majdanpek, Mali Idos*, Mali Zvornik, Malo Crnice, Medveda, Merosina, Mionica, Negotin, Nova Crnja*, Nova Varos, Novi Becej*, Novi Knezevac*, Odzaci*, Opovo*, Osecina, Paracin, Pecinci*, Petrovac na Mlavi, Plandiste*, Pozega, Presevo, Priboj, Prijepolje, Prokuplje, Raca, Raska, Razanj, Rekovac, Ruma*, Secanj*, Senta*, Sid*, Sjenica, Smederevska Palanka, Sokobanja, Srbobran*, Sremski Karlovci*, Stara Pazova*, Surdulica, Svilajnac, Svrljig, Temerin*, Titel*, Topola, Trgoviste, Trstenik, Tutin, Ub, Varvarin, Velika Plana, Veliko Gradiste, Vladicin Han, Vladimirci, Vlasotince, Vrbas*, Vrnjacka Banja, Zabalj*, Zabari, Zagubica, Zitiste*, Zitorada;

cities: Beograd, Cacak, Jagodina, Kikinda*, Kragujevac, Kraljevo, Krusevac, Leskovac, Loznica, Nis, Novi Pazar, Novi Sad*, Pancevo*, Pirot, Pozarevac, Sabac, Smederevo, Sombor*, Sremska Mitrovica*, Subotica*, Uzice, Valjevo, Vranje, Vrsac*, Zajecar, Zrenjanin*

Serbia has a transitional economy largely dominated by market forces, but the state sector remains significant in certain areas. The economy relies on manufacturing and exports, driven largely by foreign investment. MILOSEVIC-era mismanagement of the economy, an extended period of international economic sanctions, civil war, and the damage to Yugoslavia's infrastructure and industry during the NATO airstrikes in 1999 left the economy worse off than it was in 1990. In 2015, Serbia's GDP was 27.5% below where it was in 1989.

After former Federal Yugoslav President MILOSEVIC was ousted in September 2000, the Democratic Opposition of Serbia (DOS) coalition government implemented stabilization measures and embarked on a market reform program. Serbia renewed its membership in the IMF in December 2000 and rejoined the World Bank and the European Bank for Reconstruction and Development. Serbia has made progress in trade liberalization and enterprise restructuring and privatization, but many large enterprises - including the power utilities, telecommunications company, natural gas company, and others - remain state-owned. Serbia has made some progress towards EU membership, gaining candidate status in March 2012. In January 2014, Serbia's EU accession talks officially opened and, as of December 2017, Serbia had opened 12 negotiating chapters including one on foreign trade. Serbia's negotiations with the WTO are advanced, with the country's complete ban on the trade and cultivation of agricultural biotechnology products representing the primary remaining obstacle to accession. Serbia maintains a three-year Stand-by Arrangement with the IMF worth approximately $1.3 billion that is scheduled to end in February 2018. The government has shown progress implementing economic reforms, such as fiscal consolidation, privatization, and reducing public spending.

Unemployment in Serbia, while relatively low (16% in 2017) compared with its Balkan neighbors, remains significantly above the European average. Serbia is slowly implementing structural economic reforms needed to ensure the country's long-term prosperity. Serbia reduced its budget deficit to 1.7% of GDP and its public debt to 71% of GDP in 2017. Public debt had more than doubled between 2008 and 2015. Serbia's concerns about inflation and exchange-rate stability preclude the use of expansionary monetary policy.

Major economic challenges ahead include: stagnant household incomes; the need for private sector job creation; structural reforms of state-owned companies; strategic public sector reforms; and the need for new foreign direct investment. Other serious longer-term challenges include an inefficient judicial system, high levels of corruption, and an aging population. Factors favorable to Serbia's economic growth include the economic reforms it is undergoing as part of its EU accession process and IMF agreement, its strategic location, a relatively inexpensive and skilled labor force, and free trade agreements with the EU, Russia, Turkey, and countries that are members of the Central European Free Trade Agreement.

Bosnia and Herzegovina has a transitional economy with limited market reforms. The economy relies heavily on the export of metals, energy, textiles, and furniture as well as on remittances and foreign aid. A highly decentralized government hampers economic policy coordination and reform, while excessive bureaucracy and a segmented market discourage foreign investment. The economy is among the least competitive in the region. Foreign banks, primarily from Austria and Italy, control much of the banking sector, though the largest bank is a private domestic one. The konvertibilna marka (convertible mark) - the national currency introduced in 1998 - is pegged to the euro through a currency board arrangement, which has maintained confidence in the currency and has facilitated reliable trade links with European partners. Bosnia and Herzegovina became a full member of the Central European Free Trade Agreement in September 2007. In 2016, Bosnia began a three-year IMF loan program, but it has struggled to meet the economic reform benchmarks required to receive all funding installments.

Bosnia and Herzegovina's private sector is growing slowly, but foreign investment dropped sharply after 2007 and remains low. High unemployment remains the most serious macroeconomic problem. Successful implementation of a value-added tax in 2006 provided a steady source of revenue for the government and helped rein in gray-market activity, though public perceptions of government corruption and misuse of taxpayer money has encouraged a large informal economy to persist. National-level statistics have improved over time, but a large share of economic activity remains unofficial and unrecorded.

Bosnia and Herzegovina's top economic priorities are: acceleration of integration into the EU; strengthening the fiscal system; public administration reform; World Trade Organization membership; and securing economic growth by fostering a dynamic, competitive private sector.

Serbia's integration with the EU helped regulator reforms and promotion of telecom; EU development loans for broadband to rural areas; pandemic spurred use of mobile data and other services; wireless service is available through multiple providers; national coverage is growing rapidly; best telecom services are centered in urban centers; 4G/LTE mobile network launched; 5G tests ongoing with Ericsson and Huawei (2021)

Bosnia-Herzegovina aims for national LTE coverage through integration with European Union (EU); roaming agreements with EU and Balkan neighbors; fixed-line broadband is underdeveloped, investments in mobile upgrades facilitate broadband connectivity to a greater extent than in Europe; DSL and cable are the main platforms for fixed-line connectivity while fiber broadband has a small market presence; operators support broadband in rural areas where fixed-line infrastructure is insufficient; LTE services under test licenses; 5G awaits market maturity; importer of broadcasting equipment from China (2021)

Serbia with several other states protest the US and other states' recognition of Kosovo's declaration of its status as a sovereign and independent state in February 2008; ethnic Serbian municipalities along Kosovo's northern border challenge final status of Kosovo-Serbia boundary; several thousand NATO-led Kosovo Force peacekeepers under UN Interim Administration Mission in Kosovo authority continue to keep the peace within Kosovo between the ethnic Albanian majority and the Serb minority in Kosovo; Serbia delimited about half of the boundary with Bosnia and Herzegovina, but sections along the Drina River remain in dispute

Serbia delimited about half of the boundary with Bosnia and Herzegovina, but sections along the Drina River remain in dispute