Bosnia and Herzegovina (BiH) can be rated two out of a possible five on the State Capture Index, which means that the power of political parties over institutions and public resources suppresses the interests of citizens and hampers the real functioning of the state, according to Transparency International BiH (TI BiH).
The Index, presented by TI in BiH on the occasion of International Anti-Corruption Day, measures key areas such as democratic processes (score of two), decision-making (2.5), accountability (2.5), and the way resources are distributed (1.5 – the lowest score).
It points to serious systemic weaknesses, particularly the dominance of the executive over the legislative branch, which should be exercising oversight over the work of the government. This finding also appears in the European Union’s (EU) progress report on BiH, which states that “political authorities have failed to address widespread corruption and have actively obstructed progress, resulting in prolonged stagnation and increasingly visible signs of state capture.”
“The analysis on which the Index is based shows that parties maintain their power by controlling resources and access to employment, thereby keeping institutions under control, which results in weakened democracy. This is reinforced by the lack of transparency in elections, leaving citizens unsure whether their vote actually decides anything or reflects what they voted for, while efforts to establish any system of accountability are systematically undermined. Such a situation allows political parties to use public resources, through public jobs and employment in the public sector, for the benefit of party networks rather than citizens,” TI BiH states.
They add that influence over the accountability system, primarily oversight institutions, prosecutorial bodies, and the judiciary, results in selective enforcement of the law, while impunity remains widespread in BiH.
“In addition, research shows that although the media are formally recognized as oversight actors in a democratic society, they operate in a narrowed space without real ability to fulfill their role in protecting the public interest and generating pressure for greater accountability. The phenomenon of a captured state can be described as a parallel universe, informal, operating alongside the official, institutional one. In this universe, parties dictate employment, manage companies, and decide on tenders and concessions; in short, they allocate resources. This rewards loyalty and maintains the system of state capture,” said Srdjan Blagovcanin, lead author of the research and a member of TI BiH.
Blagovcanin emphasized that the way out of such a situation must follow two key directions.
“It is necessary to limit the power of political parties through their democratization, but also to reduce the ‘spoils’ they control, by rationalizing the public sector, which is the source of their power,” he said, stressing that political leaders cannot be expected to voluntarily relinquish control over public resources, which is why change must come from outside their control, from citizens, the private sector, and civil society.”
Precisely because of these findings, part of the discussion at the conference “Power, Interests and the State: State Capture Index of BiH,” held with the support of Sweden and Denmark on December 9th, International Anti-Corruption Day, was dedicated to establishing an effective prevention system.
On this occasion, an initiative and proposals for a new Law on Conflict of Interest at the Federation of BiH (FBiH) level were presented. The law has not been implemented since 2013 and has been awaiting adoption for years. The proposals focus on establishing an independent body to implement the law, introducing a unified system for verifying asset declarations, and preventing private interests from influencing decision-making by public office holders.
“The lack of transparency at the core of this problem threatens to completely undermine our efforts, with serious consequences for citizens. Strengthening transparency and eradicating corruption are essential for BiH’s progress on its path toward European integration,” said Age Sandal Moller, the Danish ambassador to BiH, whose country, together with Sweden, supported the conference and the research.
Sara Lindegren, Deputy Ambassador of Sweden to BiH, highlighted that corruption remains one of the greatest threats to the country’s progress.
“The latest European Commission report sends a serious warning, corruption is increasing, and institutions are increasingly exposed to political influence,” she said, adding that the signs of state capture and the lack of progress in key areas, from the judiciary to public administration and election integrity, require urgent action,” TI BiH stated.
