By virtue of a shared history and intense institutional and economic relations, Austria has close ties with Bosnia and Herzegovina (BiH). Since 1992, the multi-ethnic country in the Balkans has also been a priority country of Austrian Development Cooperation (ADC). Austria supports Bosnia and Herzegovina’s convergence with Europe along with that of other countries in the region. In June 2008, Bosnia and Herzegovina signed a Stabilisation and Association Agreement (SAA), which governs its relations with the EU. This provides for far-reaching political and economic cooperation and promotes integration with European institutions.

Building economic capacity

Despite national economic stability - at least before the dawn of the global economic resession - performance has only reached half the prewar level. One fifth of the population still lives below the poverty line. The priority development goals of Bosnia and Herzegovina itself are building economic capacity and setting up viable social, health and pension schemes.

Fostering a common identity

ADC helps strengthen Bosnia and Herzegovina’s multi-ethnic society. Cooperation between the Balkan state and Austria centres on promoting the private-sector and the educational system. The foremost concern in private-sector development is improving the environment for investors and promoting small and medium-sized enterprises. In education, stress is placed on strengthening the universities, for example by supporting the development of modern curricula, or encouraging local researchers to participate in EU research programmes.

Further cooperation

After many years of development cooperation with Bosnia and Herzegovina, it has become essential to support the state in its approximation to the European Union. The EU provides several instruments for this purpose. End of June 2011, the Austrian Development Cooperation closed its Coordination Office in Sarajevo and started to gradually withdraw from Bosnia and Herzegovina until 2013. In order to sustain the positive impacts and successes of Austria's assistance, a coordinated completion of current programmes and projects will of course be ensured. The cooperation in terms of business partnerships and cooperation with non-governmental organisations will continue.