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Economy / Bosnia-Herzegovina

Government Boycott Threatens Reforms

October 2007 | Risk Summary

Bosnian Serb political leaders have threatened to walk out of all central governmental posts unless High Representative Miroslav Lajcak revokes his earlier decision to simplify Bosnia's voting procedures. The international peace envoy has intervened in an effort to fast-track political decision-making, where reforms remain obstructed by ethnic tensions between the country's ethnic groups. While the current development further undermines the country's much-needed reform process in the short term, we believe that a firmer stance from the international envoy may provide a necessary break from the current political deadlock over the medium term.

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