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How It Is Governed

The Settlement and the State It Made

By the OSCEBiH desk · How It Is Governed · 6 min read

Read next: Federation and Republika Srpska: How They Divide the Country

Photograph: Photo: belin dolushanov / Pexels

A peace agreement signed at a US air base in Ohio became, by default, the constitution of a country. Understanding Bosnia and Herzegovina begins here.

What Dayton Was and Was Not

In November 1995, after nearly four years of war, the delegations of Bosnia and Herzegovina, Croatia, and the Federal Republic of Yugoslavia gathered at Wright-Patterson Air Force Base near Dayton, Ohio, for three weeks of intensive negotiations brokered by the United States. The resulting General Framework Agreement for Peace in Bosnia and Herzegovina — universally known as the Dayton Agreement — was initialled on 21 November 1995 and formally signed in Paris on 14 December of the same year.

The agreement was an act of coercion as much as consent. The parties signed under sustained American pressure, and each left Dayton with grievances. Bosniaks, who had suffered the heaviest civilian losses of the war, accepted a partition they had resisted militarily. Bosnian Serb leaders — the Republika Srpska delegation led by Serbian President Slobodan Milošević because the RS leadership was under indictment or international pressure — received an entity that in its broad contours matched the territory seized during the war. Bosnian Croats obtained protections within the Federation entity they shared with Bosniaks.

What Dayton was not, by design or aspiration, was a finished constitutional settlement. Its architects intended it to stop the killing. The architecture it produced was a function of that priority, not of long-term state-building logic. The document that became the constitution of Bosnia and Herzegovina was appended to the peace agreement as Annex 4 — one of eleven annexes covering everything from arbitration of disputed territory to civilian implementation. This origins story has shaped everything that followed.

What Annex 4 Built

Annex 4 established a state of pronounced complexity. At its apex sits Bosnia and Herzegovina itself, possessing a small number of sovereign competencies: foreign policy, foreign trade, customs, monetary policy, immigration and asylum, and the obligations arising from international law. Everything not explicitly assigned to the state level is reserved to two entities — the Federation of Bosnia and Herzegovina and Republika Srpska — that hold the substantial share of governing power.

The Federation of Bosnia and Herzegovina, sometimes called the FBiH, covers roughly 51 percent of the country's territory and is itself divided into ten cantons, each with its own government and legislature. Republika Srpska, or RS, covers the remaining 49 percent and operates as a more centralised single-tier entity without a canton layer. The two entities have their own constitutions, presidents, governments, parliaments, police forces, and — until a prolonged international effort merged them in the mid-2000s — their own armies.

At the state level, Annex 4 created institutions deliberately designed to prevent any single ethnic group from dominating. The Presidency of Bosnia and Herzegovina is collective: three members, one Bosniak and one Croat elected from the territory of the Federation, and one Serb elected from the territory of Republika Srpska. Each member chairs the Presidency in rotation. The Parliamentary Assembly consists of two chambers — the House of Representatives and the House of Peoples — both with built-in ethnic-seat allocations that require a majority of each of the three constituent peoples to pass significant legislation. A minister from one people cannot be outvoted into irrelevance by a coalition of the other two; Annex 4 created what scholars of divided societies call a consociational system, in which power is shared across groups rather than exercised by a numerical majority.

The Constitutional Court sits at the apex of this structure, with a composition that reflects the same logic: four judges elected by the Federation's House of Representatives, two by Republika Srpska's National Assembly, and three by the President of the European Court of Human Rights — the last group being foreign nationals, a provision designed to supply a tie-breaking impartiality. The Court has jurisdiction over disputes between the entities, and between the entities and the state, and its rulings have on occasion forced significant constitutional changes at the entity level.

The Gap Between Design and Reality

The Dayton structure accomplished what it was built for: it ended the war, and it has held — no armed conflict has resumed in the thirty years since the signatures dried in Paris. That is not a minor achievement in a region where settlements have unravelled. But the constitutional design has produced governing pathologies that compound with time.

The most discussed is the ethnic-seat allocation problem exposed by the European Court of Human Rights in its 2009 ruling in Sejdić and Finci v. Bosnia and Herzegovina. Jakob Finci, a Bosnian citizen identifying as Jewish, and Dervo Sejdić, identifying as Roma, were ineligible to stand for the state Presidency or the House of Peoples because Annex 4's text limits those seats to the three constituent peoples: Bosniaks, Croats, and Serbs. The Court found this a violation of the European Convention on Human Rights. More than fifteen years later, Bosnia and Herzegovina has not amended its constitution to comply, largely because the changes required would alter the ethnic power-sharing arithmetic and no combination of political actors has been able to agree on a substitute.

A second structural problem is the relationship between the two entities and the state. Republika Srpska's political leadership has, with increasing intensity since the mid-2010s, challenged the legitimacy of state-level institutions and the powers accrued by the Office of the High Representative — the international post created by Dayton to oversee civilian implementation of the agreement. The High Representative holds the authority, under what is called the Bonn Powers (adopted in 1997, after Dayton itself), to impose laws and remove officials from office. This authority has been used dozens of times. It is not grounded in Annex 4 directly; it derives from subsequent international decisions. The co-existence of an internationally supervised state apparatus alongside entities that regard their own sovereignty as primary is among the deepest tensions Dayton left unresolved.

A third problem is simpler and more expensive: the sheer number of governments. Bosnia and Herzegovina supports a state-level government, two entity governments, ten cantonal governments in the Federation alone, and hundreds of municipal administrations. A country of roughly 3.2 million people — already shrinking through emigration — carries a public-sector overhead built for a constitutional theory, not for fiscal sustainability.

The Document as Living Constraint

Annex 4 is short by the standards of national constitutions — fewer than ten thousand words including amendments. Its brevity reflects its origins: it was written under time pressure to end a war, not to govern a peacetime polity. The gaps it left have been filled, imperfectly, by entity constitutions, international oversight, Constitutional Court decisions, and layers of subsequent legislation.

Understanding any specific feature of how Bosnia and Herzegovina works — its ten-canton structure within the Federation, its divergent wage and tax regimes, its contested infrastructure decisions — requires understanding Annex 4 first. The settlement is not background. It is the operating system.