Bosnia and Herzegovina faces both chronic and acute governance crises in 2021 and the governance structures developed in Bosnia and Herzegovina since 1995 are not efficient. The country is still in multiple transitional processes and faces various development challenges such as limited economic growth, high unemployment, growing poverty and socioeconomic inequality. BiH is in a perpetual status quo, in which the government does not respond to the deep and long-term needs of its citizens. These chronic and persistent challenges are exacerbated by the current burden of the Covid-19 pandemic with extreme pressure on municipal budgets.

The municipal level which is both closest to citizens and also responsible for many of the most tangible services used by citizens is often seen as having the most potential for impact. This is because local governments have a certain degree of autonomy, decision-making power and resources, and are generally more open to policy reforms and more efficient than higher government levels. From a structural perspective, this potential remains unrealised due to the lack of communications and cooperation among governments and concrete policy programs focused on citizens’ needs.