Bosnia and Herzegovina is politically decentralized with one national, two entities, one district, ten cantonal, and 147 local governments, each with significant autonomy. This structure blocks national policy consensus, enabling ruling ethno-nationalist parties to stay in power through patronage, clientelism, and corruption. The fragmented system reduces transparency and limits citizen access, with public administration divided across 80 institutions, making coordination almost impossible. As a result, socio-economic rights have significantly deteriorated. Mismanagement and inefficiencies worsen these problems, trapping the state in a cycle of dysfunction. 

BiH is struggling with both inflationary pressures and limited growth. The cost-of-living crisis, driven by global inflationary trends, hit vulnerable populations the hardest, increasing demand for the services provided by civil society organizations (CSOs). The lack of a coherent economic strategy from the government further strained the capacity of CSOs to meet these growing needs.

Bosnia and Herzegovina’s EU integration journey in 2023 was marked by both milestones and regression. The European Union granted the country candidate status in December 2022, a significant step forward in its long-term goal of EU membership. However, progress on meeting the 14 key priorities set by the European Commission remained slow, with reforms in areas such as the judiciary, public administration, and the fight against corruption lagging. Civil society has been at the forefront of advocating for these reforms, but their efforts have been hampered by limited political will and bureaucratic inertia. The European Commission’s annual report on Bosnia and Herzegovina, published in October 2023, highlighted these challenges, noting that while some progress had been made, much work remains to align with EU standards. Civil society organizations in Bosnia and Herzegovina have united around the “Civil Society Declaration: We Want to Move Forward to the EU!”. In a joint request addressed to local authorities and the international community, 118 organizations expressed their determination and readiness to join the European Union. They emphasize that opening negotiations is crucial for the country’s future and its European path.

In this complex and evolving context, the role of civil society in Bosnia and Herzegovina remains indispensable. This report provides an in-depth analysis of the state of civil society in 2023, highlighting the challenges faced, the progress made, and the critical areas where further efforts are needed. As Bosnia and Herzegovina continues toward greater stability, prosperity, and integration with the European Union, the contributions of civil society will be crucial in shaping the country’s future.

The state of the enabling environment in BiH is partially supportive for CSOs. The legal and regulatory environment provides certain freedoms, such as the ability to register and operate without excessive interference, and the capacity to receive foreign funding without major restrictions. However, challenges remain, including the complications regarding peaceful assembling, somewhat increased government interference, and freedom of expression related repercussions (such as the defamation law. Furthermore, the regulations differ in different parts of the country. Related to this, CSOs face hardship in terms of unclear taxation rules and restrictions stalling their financial sustainability. Inspections and fines indicate a level of scrutiny that some organizations find excessive. The key challenges for the future involve addressing differences between the three main laws for CSOs, regulatory inconsistencies and enhancing the autonomy of CSOs to engage in economic activities without fear of unreasonable penalties. Additionally, improving the legal framework to ensure clearer guidelines for the operation of CSOs and reducing bureaucratic hurdles will be crucial for fostering a more supportive environment and enhancing the civil society sector’s work. 

The framework supporting the financial viability and sustainability of CSOs is diverse but complex, and it is assessed as more of a disabling than partially enabling environment. The state provides funding through intricate mechanisms at different government levels, with recent initiatives like the Draft Law on Financing NGOs FBiH and a forthcoming Strategy for the Development of the Non-Governmental Sector aiming to enhance support. However, funding processes often lack transparency, and access to both financial and non-financial resources remain challenging for CSOs. While human resource regulations ensure that CSOs are treated equitably with other employers, practical issues such as limited credit access and inadequate employment incentives persist. Volunteering is legally regulated but hindered by administrative burdens and infrequent incentives. Civic education is integrated into the curriculum, but actual youth participation in decision-making is limited. Overall, while frameworks and policies exist to support CSOs, there is a pressing need for greater transparency, improved support mechanisms, and more robust civic engagement to strengthen the sector’s sustainability and impact.

The state of the government-CSO relationship is between disabling and partially enabling environment, and it depends on the area of cooperation. At the state level, cooperation with the civil sector has been formalized through the Agreements on Cooperation from 2007 and 2017. These agreements have facilitated the development of cooperation, including interactions with civil society. The Advisory Body of the Council of Ministers of BiH for cooperation with NGOs, while partially functional, has worked on implementing planned activities but without public consultation with CSOs during 2023. The Advisory Body has been appointed in the working group for the Strategy for the Development of an Enabling Environment for Civil Society 2024-2028 in BiH. The involvement of organizations in the preparation, development, and adoption of strategic documents and laws remains sporadic and insufficient. Although a functional mechanism exists at the state level, such mechanisms are absent at other levels. The rulebook for public participation was revised in 2023, leading to some improvements, such as clearer responsibilities for consultation leaders and a reinforced obligation to publish consultation reports. Changes also include the possibility of adopting documents without a consultation procedure, which could present new challenges in the future. Amendments to the Law on Freedom of Access to Information have introduced obstacles for organizations, particularly affecting the appeals process and other provisions related to information availability. Cooperation in the provision of services has remained unchanged from previous years and has been evaluated as unprofessional, inconsistent, and lacking in administrative, qualitative, and financial aspects.