Rural poverty in Bosnia and Herzegovina

The 1992-1995 war transformed Bosnia-Herzegovina from a medium-income country within the former Federal Republic of Yugoslavia to a poor country. It caused the loss of 100,000 - 250,000 lives and displaced nearly half the country’s pre-war population of 4.4 million. War damage is estimated at more than US$100 billion.

Despite the success of post-conflict rebuilding, the economy has not returned to its pre-war level. The country is now one of the poorest in Europe, yet the poverty situation in Bosnia is unique. Acute widespread poverty and high unemployment are a relatively recent phenomenon. Most Bosnians are literate and many are well educated. At present about 19.5 per cent of the population is poor and suffers serious shortages in almost all aspects of welfare. A further 30 per cent of the population is vulnerable to poverty in the event of an income shock. Many lack access to basic services such as safe drinking water.

The collapse of the former socialist system and the war that followed led to physical and socio-economic devastation and loss of employment. Rural people fled to urban areas for security and survival. When the war ended many returned to the countryside and to subsistence farming to escape poverty. At present about half of the rural population relies on agriculture for a livelihood. However, the lack of employment opportunities in rural areas is hindering economic revival and could lead to another exodus to cities and towns.

Who and where are Bosnia-Herzegovina’s rural poor people?

Poverty is widespread throughout the country but is more acute in rural regions, especially former front-line areas.

Women have been particularly affected by the breakdown of social cohesion and the downward spiral into poverty. Since the war, the number of households headed by women has increased to one in four. These households are at greater risk of poverty. Women lack access to land, skills training, finances and equipment. They are often denied participation in political decision-making even though they often assume responsibility for the survival of the family. Women make up only 35 per cent of employed Bosnians, and women who are employed face discrimination and receive lower wages.

Since the end of the war, Bosnia has become a country of transit and destination for women from eastern and central European countries who are forced or deceived into prostitution. Many vulnerable women and girls have been easy prey for those who traffic in women from these countries.

Why are Bosnia-Herzegovina’s rural people poor?

The widespread poverty in Bosnia-Herzegovina is largely an outcome of the war and the difficult transition of a former communist state to a market economy. The four-year war caused extensive damage and led to high unemployment. Farmers lost 50 to 60 per cent of their assets and 90 per cent of their livestock. Buildings were ruined and water and electrical power facilities destroyed.

Immediate reconstruction efforts after the war focused largely on urban areas. Despite the fact that many turned to farming to make a living after the war, in 2005 only half of the arable land was under cultivation, often because state-owned land was awaiting privatization or because most of the arable land is poorly irrigated, lacks flood protection or is infested with land mines.

There are other factors that contribute to rural poverty. Bosnia-Herzegovina has a limited resource base. Because of the mountainous topography and shallow soils, good agricultural land is scarce. The former Federal Republic of Yugoslavia had long neglected the smallholder farming sector. Farm holdings are limited, productivity levels are low and incomes from most farms are meagre. Although dairy farming is the main enterprise, the average number of dairy cows per farm is about two. At present most farmers are subsistence-oriented. The recovery of agriculture has been hindered by poor infrastructure, lack of access to support services and finance, and inadequate linkages to processing industries and markets.

Source: IFAD

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Bosnia and Herzegovina capital: Sarajevo GNI per capita: US$1,110 - 2,350 [more maps ...] Explore... Geography, agriculture and the economy Progress on the Millennium Development Goals: United Nations Development Group (UNDG) United Nations Statistics World Bank Statistics Total population (million), 2003: 4.1 Rural population density (people per km2), 2002: 231.4 Number of rural poor (million), 2003: 0.5 Rural population below the poverty line (%), 2001-02: 19.9 GNI per capita (US$), 2003: 1,530.0 Population living below $1 a day (%): .. Population living below $2 a day (%): .. Population living below the national poverty line (%), 2001-02: 19.5 Share of poorest 20% in national income or consumption (%), 2003: 14.2 Source: World Bank