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THE ECONOMY AND INFRASTRUCTURE

Economic Overview: The war has severely damaged the economy of B-H. Much industry, including farming, has ceased to function or been destroyed. Even before the war, B-H was a net importer of food. Many communities during the war have relied on the UN and other nongovernmental organizations (NGOs) to feed them.

The official currency is the Bosnian dinar, which was revalued in late 1994, but its circulation is still limited. The German mark circulates more extensively and is the only accepted means of payment for many merchants. The Croatian kuna circulates in areas controlled by Bosnian Croats. Within the Serbian Republic, the Serbian Republic dinar and Yugoslav dinar have circulated, albeit with multiple re-valuations between 1992 and 1994.

With extensive damage to industry and infrastructure, recovery from the war will take years. An international conference was scheduled for December 1995 to organize international contributions to aid reconstruction.Urban Centers:

Operational Movement: Movement by road may be difficult because of the nature of the terrain and damage to surfaced roads and bridges. Two primary all-weather routes lead into central B-H from the south: from the coast at Ploce up the Neretva Valley to Sarajevo, and from the coast at Split via Livno and Kupres to Bugojno. During the war, travel in much of the country was dangerous due to road blocks and general disorder. The situation in Federation territory has improved somewhat since 1994. Seizure of unprotected vehicles and goods was a constant problem, especially in Serb-occupied areas but also in areas of the Federation.

Railroads used to connect Ploce, Mostar, and Sarajevo, and from there to Belgrade and Zagreb via Banja Luka. Recently efforts have begun to reopen the route from Ploce to Mostar and Sarajevo. A section of the line between Zenica and Kakanj, north of Sarajevo, is operational for local traffic. There is bus service, albeit at times irregular, between many urban areas.

Because of the war, movement in and between the major towns and cities has been restricted. Before the 12 October 1995 cease-fire, Sarajevo was subject to artillery and mortar fire, as well as sniping. Mostar, Tuzla, Zenica and other towns and cities were subject to occasional mortar fire. Conditions in most areas varied according to the state of hostilities, with the least affected those sections of Herzegovina south and west of Mostar.

Roads: In 1991, B-H had a total of 21,168 km of roads. Of these, 11,436 km were paved, 8,146 km were unpaved gravel, and 1,586 km were unimproved earth. War damage, lack of repair, and use by heavy military and civilian vehicles have caused significant deterioration since 1991. Limited repair and improvement has been carried out by UN forces.

Ports: B-H has a short stretch of coastline on the Adriatic at Neum. There are no port facilities. An agreement with Croatia provides for Bosnian use of port facilities at Ploce.

Railways: As written earlier, most of the railway in B-H is nonoperational.

Airports: Since 1992, Sarajevo Airport has been controlled by UN forces. When land access routes have been cut off, it serves as the sole access for humnitarian aid to Sarajevo. Planes flying into Sarajevo have been primarily C-130 and IL-76 military transports, the latter on loan to the UN from Ukraine. There have been occasions when aircraft have come under antiaircraft fire. The last civil flights into Sarajevo were in April 1992. In recent years, the primary air service into Sarajevo has by military aircraft contracted to the UN.

Natural Resources: The earliest traces of mining in B-H, notably iron ore, date to the centuries before the Roman conquest, and silver was especially important for Medieval Bosnia. There are reserves of coal, iron, bauxite, manganese, copper, chromium, lead, and zinc . However, most mining has been stopped by the war. Many mines have been damaged. Timber and wood products are an important resource. Bosnia is rich in hydro-electric potential, which was exploited to produce about 18 billion kWh before the war. The manmade lake at Jablanica is for this purpose. Several hydro-electric plants are still in use or are currently under repair. Oil and gas must be imported.

Traditional Industries: Before the war, Bosnian industry included steel production, oil refining, and manufacturing including vehicle assembly, textiles, tobacco products, wooden furniture, and domestic appliances . About 40 percent of former Yugoslavia's armaments, including tank and aircraft assembly, were produced in Bosnia. A small proportion of this industry is still in operation. Older forms of industry, including hand-production of copperware and and other handicrafts, including work in gold and silver, continues to some small degree in Sarajevo and elsewhere.

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