The World Bank has been instrumental in guiding Bosnia and Herzegovina (BiH) towards significant reforms in its health, education, and public administration sectors from 2018 to 2023. These changes aim to enhance the efficiency, effectiveness, and quality of public services for all citizens. They also seek to bolster economic development and accelerate the country's accession to the European Union (EU).
One of the major outcomes of this partnership is a comprehensive health sector reform currently being implemented by BiH authorities with support from the World Bank. This reform is expected to improve service quality and financial sustainability within the health sector, leading to better health outcomes.
In the education sector, the World Bank has equipped BiH authorities with essential tools, capacity building resources, and knowledge. This support has facilitated improvements in education services and introduced innovative approaches to workforce management.
The Government of Republika Srpska developed a clear roadmap for digital transformation of public services following a thorough e-Government assessment by the World Bank. Additionally, a unique public sector labor market study identified weaknesses in employment practices and opportunities for improvement through better human resources and wage management.
The World Bank’s recommendations have been utilized by authorities to strengthen critical public administration functions for EU accession. The country was granted EU candidate status in December 2022.
Despite overcoming numerous setbacks over recent decades and achieving upper middle-income status, BiH faces challenges due to its highly decentralized governance structure embedded in its post-war constitution. This structure contributes to political instability and hinders progress on much-needed structural reforms.
The World Bank worked with BiH authorities to strengthen public performance and enhance service quality through improved public employment data and rebalancing staffing levels within the public sector. In response to evolving priorities during the COVID-19 pandemic, focus shifted towards digitalization of government operations for sustained service delivery.
The project was financed by the European Union (EU) through a Single Donor Trust Fund amounting to €3.1 million, which was fully received by the World Bank.
Looking ahead, the project has demonstrated that even in a country with a complex history and constitutional arrangements like BiH, small interventions across sectors can drive incremental change and showcase potential for development. The World Bank will continue using its convening power and financial incentives to work with authorities and development partners to ensure sustained implementation of these reforms.