Since 1993, the World Bank Group has been a partner to Bosnia and Herzegovina, fostering a lasting collaboration. Bosnia and Herzegovina has witnessed the benefits of international development support, enabling it to achieve upper-middle-income status. Today, the World Bank Group and Bosnia and Herzegovina remain dedicated to advancing the economy, enhancing living standards, and supporting the country’s aspirations to join the European Union.
Bosnia and Herzegovina exited from the 1992-1995 war devastated and divided, with police and military checkpoints preventing even essential freedom of movement. By the end of 1995, Bosnia and Herzegovina's economic output had fallen to just 10-30 percent of pre-war levels. Gross domestic product (GDP) had collapsed to less than US$500 per capita. Most basic infrastructure was shattered, with more than 80 percent of the population receiving some form of food aid.
Over 100,000 lives were lost during this period. Two million people were displaced or became refugees—over half the pre-war population. Per-capita GDP fell by 75%, widespread job losses occurred, and most of the population fell into poverty.
In response to this catastrophe, the International Development Association (IDA) initiated 16 emergency operations to rebuild transport and energy infrastructure, healthcare, education facilities, and stimulate economic growth.
After the war, Bosnia and Herzegovina worked with international partners including the World Bank Group on an economic recovery plan focused on stabilizing macroeconomy, supporting market economy transition, rebuilding infrastructure for refugee returns, and normalizing international financial relations.
As part of post-war reconstruction efforts local communities collaborated with authorities and international partners to rebuild one of Bosnia's iconic landmarks: Stari Most in Mostar. Destroyed in November 1993 it was restored nearly a decade later symbolizing reconciliation bridging physical gaps across Neretva River as well as cultural divides left by conflict.
In recent years Bosnia has made significant strides in reform transitioning from low-income status seeking EU membership becoming IDA donor in 2023 supporting other nations' stability journeys.
The World Bank Group collaborates with Bosnia focusing on developing private sector for job creation improving public services efficiency enhancing resilience against climate shocks natural events.
In July 2022 Country Partnership Framework for 2022-2026 was endorsed addressing inclusive private sector employment sustainable service delivery climate change resilience including cross-cutting gender theme supporting vulnerable groups.
The partnership provides analysis advice financing for reform programs potentially accessing $750 million new lending from World Bank additionally International Finance Corporation aims attracting private capital key sectors using innovative advisory investment products supported guarantees Multilateral Investment Guarantee Agency (MIGA).
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