The General Framework Agreement for Peace (GFAP) directs the OSCE "to lay the foundation for representative government and ensure the progressive achievement of democratic goals throughout BiH" under Annex 3. The OSCE works in conjunction with all levels of government to aid the smooth transition of Bosnia and Herzegovina to a stable and democratic state.

Within this mandate, the OSCE Democratization Department focuses its efforts on assisting the authorities of BiH to develop democratic structures that are transparent, open and responsive to the needs of citizens. To this end, the Democratization Department works with both government and citizens to advance the overall reform process in BiH.

This is accomplished through the creation of an environment conducive to greater government-citizen interaction and communication. The Department works with government to eliminate legal and regulatory obstacles to citizen participation in the decision making process, and to put in place new mechanisms to encourage participatory decision making. The Department also works with citizens to facilitate their communication and cooperation with government within the decision making and overall reform process currently underway in BiH.

Within the International Community, the OSCE is recognized as one of the leading agency for promoting democratic development in BiH. This is reflected in the OSCE’s significant in assisting local authorities with the reform of the legislative framework of local self governance in BiH. In recent years, the Mission has been actively involved in the development of several laws - including FBiH and RS laws on local self-government, laws on the freedom of access to information, and legislation related to the allocation of public revenues - to help facilitate the development of transparent and responsive local governments. Currently the OSCE is assisting all levels of governments to harmonize and implement laws which have been passed in order to move reforms forward. The overall reform of local self-government is a permanent request of citizens and one of the CoE’s post-accession conditions for the country and it is clearly marked as an important step on BiH’s road toward European integration.

The Mission’s Democratization Department provides support at the municipal level through the Local First initiative and to State Parliament through the Parliamentary Support Programme.