Unlocking Bosnia’s Diaspora: The Key to National Revival

Bosnia and Herzegovina, as highlighted in the World Bank’s International Mobility as a Development Strategy: Bosnia and Herzegovina Country Report (June 2024), has one of the highest emigration rates globally. The diaspora has become a vital economic lifeline, but its full potential remains untapped. Strengthening legal frameworks, fostering trust, and creating a supportive environment can help Bosnia better engage its global workforce to drive national development.

Bosnia and Herzegovina has long been a country of emigration, with nearly one in three Bosnians now living abroad. This staggering statistic, highlighted in the World Bank’s International Mobility as a Development Strategy: Bosnia and Herzegovina Country Report (June 2024), places the country among the highest globally for emigration rates, second only to Syria. Over the decades, the reasons behind this exodus have shifted, but the impact on the nation remains profound. While the diaspora has become a vital source of remittances and economic support, the full potential of these global citizens to drive development at home is yet to be fully realized.

The Evolving Nature of Emigration

In the 1990s, Bosnia and Herzegovina was a nation in turmoil, torn apart by conflict that forced hundreds of thousands to flee. By the time the Dayton Peace Agreement was signed in 1995, over 770,000 Bosnians had become refugees, representing more than half of the country's diaspora at the time. These early waves of emigration were driven by the urgent need for safety and security, with many finding refuge in neighboring countries or further afield in Europe, North America, and Australia.

As the conflict receded, economic factors began to play a more significant role in driving emigration. Bosnia and Herzegovina’s labor market, despite recent progress, continues to struggle with high unemployment and low wages. The employment rate stands at a mere 38 percent, significantly below the European Union average of 52 percent, while wages are a fraction of those in neighboring countries like Germany and Austria. This economic disparity, coupled with liberalized visa policies in EU countries, has continued to fuel the outflow of Bosnian workers, particularly to Germany, Slovenia, and Croatia.

Long-Term Impact and the Diaspora's Untapped Potential

For many Bosnians, emigration is not a temporary solution but a long-term reality. Statistics from the World Bank report reveal that five out of six emigrants remain abroad for at least ten years, with many choosing to settle permanently by acquiring foreign citizenship. This trend has significant implications for Bosnia and Herzegovina, as it not only reduces the country’s population but also depletes its workforce, particularly among those of prime working age.

Despite the challenges, the diaspora has proven to be a crucial lifeline for Bosnia and Herzegovina’s economy. Remittances sent by Bosnians abroad account for 10 percent of the country’s GDP, among the highest in Europe. These funds are vital for reducing poverty and supporting household consumption, particularly in a country where economic opportunities are limited.

However, the diaspora's contributions extend beyond just financial support. Many members of the Bosnian diaspora are eager to invest in their homeland, bringing with them valuable knowledge, skills, and global networks. Yet, despite their willingness, only a small fraction of this potential is being realized. Foreign Direct Investment (FDI) from the diaspora remains low, representing just 3.3 percent of GDP, and only a minority of those interested in investing do so.

Strengthening the Migration System and Engaging the Diaspora

Recognizing the importance of its global workforce, Bosnia and Herzegovina has taken steps to develop a more comprehensive migration system. Over the past few decades, the country has expanded its legislative framework and strengthened institutions to better manage migration and engage with the diaspora. Bilateral labor agreements, such as the one with Slovenia, have facilitated formal migration channels, ensuring that Bosnians working abroad receive support and services throughout their migration journey.

In addition to these structural improvements, several donor-funded programs have successfully channeled diaspora funds and know-how back into the country. For example, the USAID Diaspora Investment Program, which ran from 2017 to 2022, mobilized USD 22 million in diaspora investments through grants and technical assistance. The success of such programs highlights the potential for the diaspora to drive local economic development if given the right support and incentives.

However, there is still much more to be done. Bosnia and Herzegovina needs to further develop its legal and institutional frameworks, particularly at the national level, to create a more conducive environment for diaspora engagement. This includes establishing clear objectives, aligning them with national development strategies, and ensuring regular monitoring and evaluation to track progress.

Moreover, trust-building efforts are crucial, particularly in a country with a fragmented diaspora and historical grievances. By promoting cultural identity and providing political rights and services to the diaspora, Bosnia and Herzegovina can foster a two-way relationship that benefits both the emigrants and the country.

Bosnia and Herzegovina stands at a crossroads. With one of the largest diasporas in Europe and Central Asia, the country has a unique opportunity to harness this global workforce to drive its development. By creating a supportive environment for diaspora investment and engagement, and by building stronger ties with Bosnians abroad, the nation can transform emigration from a challenge into a powerful development strategy.