Vol. 17 No. 1 (2026): Regular Issue (In Progress)
Research Article

USAID Assistance to Economic Development of Bosnia and Herzegovina: Overview of Major Initiatives in Selected Sectors

PDF
Aida Avdić Marić
Independent Researcher, Bosnia and Herzegovina
Amina Sivac
University of Sarajevo, Faculty of Science, Department of Geography, Bosnia and Herzegovina
Boris Avdić
University of Sarajevo, Faculty of Science, Department of Geography, Bosnia and Herzegovina
Diaspora Invest spatial footprint: partner municipalities and beneficiary firms by municipality (Program period: 2017-2022).
DOI: https://doi.org/10.48088/ejg.a.avd.17.1.048.071
Categories

Published 2026-03-14

Keywords

  • Bosnia and Herzegovina,
  • USAID,
  • spatial disparities,
  • diaspora investments,
  • agriculture,
  • tourism,
  • energy policy
    • ...More
    Less

How to Cite

Avdić Marić, Aida, Amina Sivac, and Boris Avdić. 2026. “USAID Assistance to Economic Development of Bosnia and Herzegovina: Overview of Major Initiatives in Selected Sectors”. European Journal of Geography 17 (1):48-71. https://doi.org/10.48088/ejg.a.avd.17.1.048.071.

Copyright (c) 2026 Aida Avdić Marić, Amina Sivac, Boris Avdić

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

Received 2025-12-28
Accepted 2026-03-07
Published 2026-03-14

Abstract

Bosnia and Herzegovina, a Southeast European country and a European Union (EU) candidate state, is characterized by complex social, political and economic structures that influence its development trajectory. As a post-transition economy, it faces persistent structural challenges, including low economic growth and institutional fragmentation. The United States Agency for International Development (has been an important factor in supporting development through long-term programs, yet recent changes in the status of its operations have raised questions about the sustainability of its interventions and future economic dynamics. This paper examines the spatial distribution of selected USAID-funded economic projects in Bosnia and Herzegovina, focusing on diaspora investments, agriculture, tourism and energy policy. By analyzing program documentation and examining the spatial distribution of municipal-level participation, the study provides insights into the economic and geographic impact of USAID selected initiatives. The findings indicate an uneven territorial impact, with more frequent participation in municipalities with stronger institutional and economic capacity and more limited coverage in peripheral and structurally weaker areas. While the analyzed initiatives contributed to sectoral development and capacity-building, their uneven spatial concentration suggests potential territorial vulnerabilities over time. In this context, USAID’s engagement in Bosnia and Herzegovina has been economically, institutionally and geopolitically significant.

Highlights:

  • Recent USAID activities in Bosnia and Herzegovina had economic impact with spatial disparities.
  • Since 2020, key programs focus on agriculture, energy, tourism and diaspora investment.
  • Termination of USAID programs threatens many projects vital to local communities.

 

 

PDF

Downloads

Download data is not yet available.
Crossref
Scopus
Google Scholar
Europe PMC

References

  1. Ačić, M., & Grujić, M. (2022). The role of selected financial organizations in the reconstruction of Bosnia and Herze-govina after the Dayton Peace Agreement. Acta Politica Polonica, 53(1), 15–28. https://doi.org/10.18276/ap.2022.53-02
  2. Ateljević, A. M., & Popović, S. (2020). Effects of tourism development on the economy of Bosnia and Herzegovina. Acta Economica, 18(33), 131–146. https://doi.org/10.7251/ACE2033131A
  3. Auwal, A. R., Ishak, A. S., Saidu Musa, S., Musa, A., Saadu, A., & Riaz, A. (2025). The global implications of U.S. with-drawal from WHO and the USAID shutdown: Challenges and strategic policy considerations. Frontiers in Public Health, 13, Article 1589010. https://doi.org/10.3389/fpubh.2025.1589010
  4. Avdić, A., & Avdić, B. (2023). Center and periphery in Bosnia and Herzegovina – Social and spatial indicators of regional disparities. Folia Geographica, 65(2), 103–126.
  5. Avdić, B., Avdić, A., & Sivac, A. (2024). Demographic classification of municipalities and cities in Bosnia and Herzegovina - A synthetic regional approach. In N. Drešković, E. Hrelja, H. Gekić, & R. Mirić (Eds.), Demographic challenges in Bosnia and Herzegovina and the world (pp. 31–41). University of Sarajevo, Faculty of Science.
  6. Banda, A., Avdić, B., Avdić, A., & Korjenić, A. (2022). Tourism and depopulation in mountain regions of Bosnia and Her-zegovina: Case study of Bjelašnica and Vranica. Journal of Tourism and Hospitality Management, 8(8), 93–107. https://doi.org/10.35666/25662880.2022.8.93
  7. Banović, D., Gavrić, S., & Barreiro Mariño, M. (2021). Political system of Bosnia and Herzegovina: Institutions, actors, processes. Springer. https://doi.org/10.1007/978-3-030-54386-0
  8. Baydag, R. M. (2025). The political economy of aid giving: A literature review. Zeitschrift für Politikwissenschaft. https://doi.org/10.1007/s41358-025-00448-3
  9. Bjelić, J. (2020). Investment and economic growth: The example of Bosnia and Herzegovina. Acta Economica, 18(33), 21–41.
  10. BosniaTurizam.com. (2022, December 14). USAID Turizam podržao proglašenje prvih 14 najljepših sela Bosne i Herce-govine [USAID Turizam supported the designation of the first 14 most beautiful villages in Bosnia and Herze-govina]. https://bosniaturizam.com/usaid-turizam-podrzao-proglasenje-prvih-14-najljepsih-sela-bosne-i-hercegovine/
  11. Bouissou, J. (2025, March 28). Collapse of development aid puts international cooperation model on shaky ground. Le Monde. https://www.lemonde.fr/en/economy/article/2025/03/28/collapse-of-development-aid-puts-international-cooperation-model-on-shaky-ground_6739618_19.html
  12. Buchkovska, K. (2022). The USA development policy in the Balkans and the role of the USAID. Vizione, 39, 419.
  13. Capital.ba. (2024, December 22). USAID pokreće novi projekt podrške energetskom sektoru u BiH [USAID launches a new support project for the energy sector in Bosnia and Herzegovina]. https://capital.ba/usaid-pokrece-novi-projekt-podrske-energetskom-sektoru-u-bih/
  14. Caravani, M. (2025). The demise of USAID: a ‘revolution’ against the wretched of the earth. Journal of Poverty and Social Justice, 33(3), 347–354. https://doi.org/10.1332/17598273Y2025D000000049
  15. Central Bank of Bosnia and Herzegovina. (2011, August 26). Foreign direct investments in BH. https://www.cbbh.ba/press/ShowNews/777
  16. Central Bank of Bosnia and Herzegovina. (2024). Annual report 2023 [in Bosnian]. https://www.cbbh.ba/content/archive/36?lang=hr
  17. Central Bank of Bosnia and Herzegovina. (2024, August 19). Foreign direct investments for BH in 2023 amounted to KM 1.89 billion. https://www.cbbh.ba/press/ShowNews/1597?lang=en
  18. Cheeseman, N., Swedlund, H. J., & O’Brien-Udry, C. (2024). Foreign aid withdrawals and suspensions: Why, when and are they effective? World Development, 178, 106571. https://doi.org/10.1016/j.worlddev.2024.106571
  19. Congressional Research Service. (2025). Bosnia and Herzegovina: Background and U.S. policy (IF10261). https://crsreports.congress.gov/product/pdf/IF/IF10261
  20. Dreher, A., Lang, V., & Reinsberg, B. (2024). Aid effectiveness and donor motives. World Development, 176, 106501. https://doi.org/10.1016/j.worlddev.2023.106501
  21. Dušková, L., Šafaříková, S., Komlossyová, E. Š., Avdić, A., Avdić, B., & Nováková, T. (2025). Between practicality and politics: Factors of sub-national aid allocation in Bosnia and Herzegovina. Journal of International Development. https://doi.org/10.1002/jid.70053
  22. Energetski samit u Bosni i Hercegovini. (2024). Energetski samit u Bosni i Hercegovini 2024 [Energy Summit in Bosnia and Herzegovina 2024]. https://energetskisamit.ba
  23. European Commission. (2017). Bosnia and Herzegovina local development strategies (IPA 2016/037889.07). https://enlargement.ec.europa.eu/system/files/201702/ipa_2016_37889_7_bih_local_development_strategies.pdf
  24. European External Action Service. (2024). EU & Bosnia and Herzegovina: Key facts and figures 2024 [Fact sheet]. https://www.eeas.europa.eu/sites/default/files/documents/2024/EU-Bosnia-factsheet-2024.pdf
  25. Fang, T., & Wells, A. (2022). Diaspora economics (IZA Discussion Paper No. 15334). Institute of Labor Economics (IZA). https://docs.iza.org/dp15334.pdf
  26. Fokus.ba. (2024, December 19). USAID pokreće novi projekt podrške energetskom sektoru u BiH, odnosi se i na Južnu interkonekciju [USAID launches a new support project for the energy sector in Bosnia and Herzegovina, including the Southern Interconnection]. https://www.fokus.ba/vijesti/bih/usaid-pokrece-novi-projekt-podrske-energetskom-sektoru-u-bih-odnosi-se-i-na-juznu-interkonekciju/3385896
  27. Foundation for European Progressive Studies, Karl-Renner-Institut & CeSPI. (2024). External influences in the Western Balkans: Where are we at? [Policy brief]. Foundation for European Progressive Studies. https://feps-europe.eu/
  28. Gekić, H., Bidžan-Gekić, A., Drešković, N., Mirić, R., & Reményi, P. (2022). The geography of Bosnia and Herzegovina: Between East and West. Springer. https://doi.org/10.1007/978-3-030-98523-3
  29. Hake, M., & Radzyner, A. (2019). Western Balkans: Growing economic ties with Turkey, Russia and China (BOFIT Policy Brief No. 1/2019). Bank of Finland Institute for Emerging Economies (BOFIT). https://urn.fi/URN:NBN:fi:bof-201902151067
  30. Halilović, H., Hasić, J., Karabegović, D., Karamehić-Muratović, A., & Oruč, N. (2018). Mapping the Bosnian-Herzegovinian diaspora (BiH migrants in Australia, Austria, Denmark, Germany, Italy, Netherlands, Slovenia, Sweden, Switzerland, and the United States of America): Utilizing the socio-economic potential of the diaspora for development of BiH. Ministry of Human Rights and Refugees of Bosnia and Herzegovina. https://www.mhrr.gov.ba/PDF/MAPPING%20BIH%20DIASPORA%20REPORT.pdf
  31. International Organization for Migration (IOM). (2021). Bosnia and Herzegovina migration response: Situation report 13–19 December 2021. https://bih.iom.int/sites/g/files/tmzbdl1076/files/documents/iom-bih-external-sitrep_new-format_13-19-dec.pdf
  32. Klix.ba. (2025, February 4). USAID od 2020. do 2024. godine utrošio više od 400 miliona dolara za projekte u BiH [USAID spent more than 400 million dollars on projects in Bosnia and Herzegovina from 2020 to 2024]. https://www.klix.ba/vijesti/bih/usaid-od-2020-do-2024-godine-utrosio-vise-od-400-miliona-dolara-za-projekte-u-bih/250204067
  33. Larsen, H. B. L. (2020). The Western Balkans between the EU, NATO, Russia and China (CSS Analyses in Security Policy No. 263). Center for Security Studies (CSS), ETH Zürich. https://css.ethz.ch/content/dam/ethz/special-interest/gess/cis/center-for-securities-studies/pdfs/CSSAnalyze263-EN.pdf
  34. Marić, I., & Avdić Marić, A. (2025). Mapping islands of transport exclusion in Bosnia and Herzegovina. Geodetski glas-nik, 59(56), 26–49. https://doi.org/10.58817/2233-1786.2025.59.56.26
  35. Ministry of Foreign Trade and Economic Relations of Bosnia and Herzegovina. (2022). Framework Energy Strategy of Bosnia and Herzegovina until 2035. https://www.mvteo.gov.ba/data/Home/Dokumenti/Energetika/19042022_Framework_Energy_Strategy_of_BiH_until_2035_ENG_FINAL.pdf
  36. Moll, N. (2013). Fragmented memories in a fragmented country: Memory competition and political identity-building in today’s Bosnia and Herzegovina. Nationalities Papers, 41(6), 910–935. https://doi.org/10.1080/00905992.2013.768220
  37. Narodna skupština Republike Srpske. (2015). Prostorni plan Republike Srpske do 2025. godine: Tekstualni dio [Spatial plan of Republika Srpska until 2025: Textual part] (Službeni glasnik Republike Srpske, br. 15/15).
  38. NBC News. (2025, February 3). Donald Trump, Elon Musk and the U.S. losing a key tool of global power. NBC News. https://www.nbcnews.com/news/world/donald-trump-elon-musk-usaid-soft-power-china-russia-rcna189756
  39. OECD. (2009). Sector specific sources of competitiveness in the Western Balkans: Recommendations for a regional investment strategy. OECD Publishing. https://www.oecd.org/content/dam/oecd/en/publications/reports/2009/05/sector-specific-sources-of-competitiveness-in-the-western-balkans_g1gh9ee8/9789264055698-en.pdf
  40. OECD. (2021). Competitiveness in South East Europe 2021: Bosnia and Herzegovina [Two-pager]. OECD South East Europe Regional Programme. https://www.oecd.org/content/dam/oecd/en/about/programmes/grc/grc-see/OECD_CO2021_Two-Pager_BOSNIA-HERZEGOVINA.pdf
  41. OECD. (2025). Public administration in Bosnia and Herzegovina 2024: Assessment against the Principles of Public Ad-ministration (SIGMA Monitoring Reports). OECD Publishing. https://doi.org/10.1787/969426b5-en
  42. Opršal, Z., Nováková, T., Harmáček, J., Pánek, J., & Avdić, B. (2025a). Foreign aid in a divided country: Subnational aid allocations in post-conflict Bosnia and Herzegovina. World Development, 195, 107138. https://doi.org/10.1016/j.worlddev.2025.107138
  43. Opršal, Z., Nováková, T., Harmáček, J., Pánek, J., Avdić, A., & Banda, A. (2025b). Political and ethnic biases? The alloca-tion of foreign aid from Central European donors at the municipality level in Bosnia & Hercegovina (2005–2020). Europe-Asia Studies, 77(6), 919–954. https://doi.org/10.1080/09668136.2025.2516654
  44. Peštek, A., Lazović-Pita, L., & Abdić, A. (2021). FDI in Bosnia & Herzegovina. In J. I. Deichmann (Ed.), Foreign direct in-vestment in the successor states of Yugoslavia: A comparative economic geography 25 years later (pp. 109–139). Springer. https://doi.org/10.1007/978-3-030-55739-3_5
  45. Pham, T. H. H. (2025). The geopolitics of foreign aid. Review of Development Economics, 29(4), 2379–2396. https://doi.org/10.1111/rode.13230
  46. Politico. (2025, February 25). USAID freeze fuels fears of Russian influence in Eastern Europe. https://www.politico.eu/article/usaid-freeze-russia-influence-eastern-europe-georgia-ukraine-moldova-belarus-ngo-media/
  47. Raos, V. (2010). Politike teritorijalnosti u BIH [Territorial policies in Bosnia and Herzegovina]. Političke analize, 1(4), 6 –10. https://hrcak.srce.hr/102754
  48. Sarajevo Times. (2021, August 283). BiH without a chance to become a member of the WTO for 22 years now. https://sarajevotimes.com/bih-without-a-chance-to-become-a-member-of-the-wto-for-22-years-now/
  49. Sarnyai, C. M., Pap, T., & Bózsó, P. (2017). West Balkan satellite states of the soft empire of the EU. Security Dialogues, 8(1–2), 11–30. https://doi.org/10.47054/SD171-20011s
  50. Shopov, V. (2025, November 4). Eyes wide shut: How to read China’s playbook in the Western Balkans [Policy brief]. European Council on Foreign Relations. https://ecfr.eu/publication/eyes-wide-shut-how-to-read-chinas-playbook-in-the-western-balkans
  51. Šiljak, D., & Nielsen, K. L. (2023). Institutions and integration (im)maturity: The case of Bosnia and Herzegovina. Society and Economy, 45(2), 136–155. https://doi.org/10.1556/204.2022.00020
  52. Stanicek, B., & Russell, M. (2022). Russia’s influence in the Western Balkans (PE 733.523) [At a glance]. European Par-liamentary Research Service. https://www.europarl.europa.eu/RegData/etudes/ATAG/2022/733523/EPRS_ATA(2022)733523_EN.pdf
  53. Statista. (2024). Socioeconomic indicators: Bosnia and Herzegovina. Retrieved February 1, 2025, from https://www.statista.com/outlook/co/socioeconomic-indicators/bosnia-and-herzegovina
  54. Šušić, I., Stojanović-Trivanović, M., & Šušić, M. (2017). Foreign direct investments and their impact on the economic development of Bosnia and Herzegovina. IOP Conference Series: Materials Science and Engineering, 200(1), 012019. https://doi.org/10.1088/1757-899X/200/1/012019
  55. Teixeira, A. A. C., & Queirós, A. S. S. (2016). Economic growth, human capital and structural change: A dynamic panel data analysis. Research Policy, 45(8), 1636–1648. https://doi.org/10.1016/j.respol.2016.04.006
  56. Trading Economics. (2023). Bosnia and Herzegovina GDP. Retrieved February 4, 2025, from https://tradingeconomics.com/bosnia-and-herzegovina/gdp
  57. U.S. Department of State & U.S. Agency for International Development. (2022). Joint strategic plan: Fiscal years 2022–2026. https://www.state.gov/wp-content/uploads/2022/03/Final-State-USAID-FY-2022-2026-Joint-Strategic-Plan_29MAR2022.pdf
  58. United States Agency for International Development. (2012). USAID/Bosnia and Herzegovina country development cooperation strategy 2012–2016. https://www.donormapping.ba/Content/OpenAttachment?id=9fb8b398-94aa-47d2-ab6c-8c70d4728b41&lang=en&utm_source=chatgpt.com
  59. United Nations Development Programme. (2023). Bosnia and Herzegovina’s Human Development Index and ranking. Retrieved February 4, 2025, from https://data.undp.org/countries-and-territories/BIH
  60. United States Agency for International Development. (2017). History: Bosnia and Herzegovina. https://2012-2017.usaid.gov/bosnia-and-herzegovina/history
  61. United States Agency for International Development. (2020). Bosnia and Herzegovina. https://2017-2020.usaid.gov/bosnia
  62. USAID MEASURE-BiH. (2018). Final evaluation report: FARMA II [Final evaluation report]. https://www.measurebih.com/uimages/FARMA20II20Final20Evaluation20Report2C20revised.pdf
  63. USAID MEASURE-BiH. (2019). Diaspora Invest evaluation final report [Final evaluation report]. https://www.measurebih.com/uimages/DIASPORA20INVEST20EVALUATION20Final20Report.pdf
  64. USAID MEASURE-BiH. (2023). Final evaluation report: Energy Policy Activity (EPA) [Final evaluation report]. https://www.measurebih.com/uimages/EPA_Evaluation_Final_Report.pdf
  65. USAID MEASURE-BiH. (2024). Performance evaluation: TURIZAM – Final report [Performance evaluation report]. https://measurebih.com/uimages/USAID-MII-Performance_Evaluation_Turizam-Final_Report_2024.pdf
  66. USAID Monitoring and Evaluation Support Activity. (2023). Reconciliation assessment report. United States Agency for International Development. https://www.measurebih.com/uimages/USAID-MII-Reconciliation-Assessment-Report.pdf
  67. Williams, N. (2018). Mobilising diaspora to promote homeland investment: The progress of policy in post-conflict econ-omies. Environment and Planning C: Politics and Space, 36(7), 1256–1279. https://doi.org/10.1177/2399654417752684
  68. World Bank, & European Bank for Reconstruction and Development. (1996). Bosnia and Herzegovina: The priority re-construction program – Sectoral projects and programs. Retrieved February 10, 2025, from https://documents1.worldbank.org/curated/en/393941538244498335/pdf/Bosnia-and-Herzegovina-the-priority-reconstruction-program-sectoral-projects-and-programs.pdf
  69. World Bank. (2024). Bosnia and Herzegovina. Retrieved February 12, 2025, from https://www.worldbank.org/ext/en/country/bosniaandherzegovina
  70. Yağcı, S., & Lopez, P. (2024). U.S. development assistance, democratization and state-building in Bosnia and Herze-govina. Environment-Behaviour Proceedings Journal, 9(SI22), 289–295. https://doi.org/10.21834/e-bpj.v9iSI22.5877