Economic Development and Transition Aida Buljubasic,Sarajevo School of Science and Technology
Since the collapse of the former Yugoslavia in 1992, the countries of WesternBalkans, especially Bosnia and Herzegovina (BiH), have experienced massiveeconomic and political changes. Current constitutional structure is set up of twostate-like entities, the Federation of BiH (Federation), and the Republika Srpska(RS), and District Brcko. This means that BiH is highly decentralized; theFederation is further decentralized consisting of ten cantons.The complexity of political and organizational structures extends to the energy sector where the state-like entities own and oversee three electric powercompanies, an oil refinery, natural gas transmission and distribution utilities,and coal mines. District heating facilities fall under the responsibility of municipal (RS) and cantonal governments (Federation). This is a uniquearrangement that has emerged as a consequence of the complicated and complexpolitical situation.One of the main problems facing the energy sector in BiH today includes anunclear authority over energy issues, the absence of a long-term energy strategy on the state level, and the absence of energy statistics and laws. Based onavailable data, production and consumption of energy and the condition of energy infrastructure have not yet reached the pre-war level. With the existinglevel of energy intensity, more than 20 percent of the national GDP is spent onenergy, a clear indicator that significantly more attention has to be paid to energy efficiency.The main issue of BiH is the lack of legal and political basis and the will forefficient decision-making and for delegation of responsibilities for energy andenergy efficiency to different levels of government.
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