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Bosnia-Herzegovina Defence and Security Report Q1 2011

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No. of Pages : 83
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Report Summary

Bosnia’s October 3 elections to national, entity and cantonal parliaments, to the three-member national presidency (one Bosniak, one Serb, one Croat) and the presidency of the RS gave a patchwork of results. Separatist Milorad Dodik and his SNSD party hung on to power in the RS and at national representative level, Croat parties supporting the creation of a third, Croat, entity, did well, while nationalist incumbent Haris Silajdzic lost the Bosniak place on the national presidency to the more moderate, but still Bosniaksupported and nationalist-leaning Alija Izetbegtovic. The results in Croat and Serb areas were in favour of parties supporting splitting the country further and moving it further away from the Western ideal of a united – if devolved – and pluralistic country, in which more powers would be vested at national level.

As of late 2010, it is hard to second-guess how Bosnia’s future will take shape over the coming years. The country is in a state of hiatus (even greater than the one that it is already in, some would say) while its economy stagnates and concerns of rising ethnic tensions are unalloyed. Analysts are divided over what they think the future holds. The most common view is that the country will remain divided into two entities and struggle slowly towards EU membership, which should bring some form of normalisation However, a new war can be regarded as an unlikely scenario at present, particularly after the elections showed a waning in support for hardline nationalism among Bosniaks. Reports of a rise in Isalmic extremism and even moderate political Islam in Bosnia, meanwhile, are greatly exaggerated, according to an October report by Balkan Insight, though other articles have suggested that foreign money may be helping indoctrinate young Bosniaks, and the authorities had a highly-publicised clampdown on a village supposedly infiltrated by Wahhabists in early 2010.

Furthermore, in the immediate aftermath of the elections, there were few signs of the protests promised by the RS opposition against Dodik and the SNSD’s allegedly authoritarian and corrupt rule. Party officials have gone on the record as saying that the regime could be changed ‘by the streets’, and some even suggest that armed conflict is possible between SNSD supporters and those of the opposition. For the time being, however, while popular dissatisfaction against Dodik has risen and is increasingly vocal, it is peaceful.

If two more likely and immediate threats to internal security can be identified, they are small-scale outbreaks of ethnic violence and reprisals thereafter; and the rise of violence linked to organised crime. An October 2010 report in Business New Europe reported Drew Sullivan, a Sarajevo-based journalist, as saying that Bosnia runs the serious risk of becoming a European Mexico if lawlessness spreads. The country is already believed to be a major conduit for smuggling heroin, people and cigarettes, with organised crime figures said to be linked to some politicians. With weak central rule and the security services easy to buy off, or complicit, this may indeed be as serious a risk for Bosnia, and Europe, as frozen conflict."

Table Of Contents

Executive Summary  5
SWOT Analysis  6
Bosnia & Herzegovina Security SWOT  6
Bosnia & Herzegovina Defence Industry SWOT  7
Political SWOT Analysis  8
Economic SWOT Analysis  9
Business Environment SWOT Analysis  10
Global Political Outlook  11
Global Hotspots  12
Latin America: More Of The Same  20
Western Europe  21
Central Europe  22
South Eastern Europe  23
Russia And The Former Soviet Union  23
Middle East: Mostly The Same Old Challenges  25
Sub-Saharan Africa: Definitive Elections Pending  27
Asia: Accommodating A More Powerful China  28
Wild Cards  30
Global Security Outlook  32
Central And Eastern Europe Overview  38
Security Risk Ratings  44
BMI’s Security Ratings  44

Table: Europe Security Risk Ratings  44

Table: Europe State Terrorism Vulnerability To Terrorism Index  45

Bosnia & Herzegovina’s Security Risk Rating  46
City Terrorism Rating  48

Table: BMI’s Central & Eastern Europe And Central Asia City Terrorism Index  49

Security Overview  51
Internal Security Situation  51
Landmines 55
Latest Developments  55
External Security Situation  58
Latest Developments  59
Armed Forces And Government Spending  60
Armed Forces  60
Defence Reforms  60
International Deployments  62

Table: Foreign Deployments in 2006  62

Market Overview  63
Arms Trade Overview  64
Imports  65

Table: Imports Of Military Equipment To Bosnia, 2004  65

Exports  66

Table: Exports Of Military Equipment From Bosnia, 2004  66

Industry Trends And Developments  67
Procurement Trends And Developments  68
Industry Forecast Scenario  70

Table: Bosnia’s Armed Forces 2002-2008 70

Table: Bosnia’s Available Manpower For Military Services 2008-2015  70

Key Risks To BMI’s Forecast Scenario  71

Table: Defence Expenditure, 2008-2015  72

Table: Bosnia’s Defence Exports 2008-2015  73

Table: Bosnia’s Defence Imports 2008-2015  74

Table: Bosnia’s Trade Balance2008-2015  75

Macroeconomic Forecast  75

Table: Bosnia-Herzegovina - Economic Activity  78

BMI Methodology  79
How We Generate Our Industry Forecasts  79
Defence Industry  79
City Terrorism Rating  81

Table: Methodology  82

Sources  83

List of Table

Table: Europe Security Risk Ratings  44
Table: Europe State Terrorism Vulnerability To Terrorism Index  45
Table: BMI's Central & Eastern Europe And Central Asia City Terrorism Index  49
Table: Foreign Deployments in 2006  62
Table: Imports Of Military Equipment To Bosnia, 2004  65
Table: Exports Of Military Equipment From Bosnia, 2004  66
Table: Bosnia's Armed Forces 2002-2008 70
Table: Bosnia's Available Manpower For Military Services 2008-2015  70
Table: Defence Expenditure, 2008-2015  72
Table: Bosnia's Defence Exports 2008-2015  73
Table: Bosnia's Defence Imports 2008-2015  74
Table: Bosnia's Trade Balance2008-2015  75
Table: Bosnia-Herzegovina - Economic Activity  78
Table: Methodology  82
 

Bosnia-Herzegovina Defence and Security Report Q1 2011

Published By: Business Monitor International
 

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