The implementation of the Dayton Accords of 1995 has focused the efforts of policymakers in Bosnia and Herzegovina, as well as the international community, on regional stabilization in the former Yugoslavia. With the end of the conflict in Kosovo, these efforts will continue to a larger extent. Within Bosnia and Herzegovina, relations with its neighbors of Croatia, Albania, and Serbia have been fairly stable since the signing of Dayton in 1995.
In the 3 years since the Dayton Accords were signed, over $4 billion in foreign aid has flown into Bosnia, about $800 million of it coming from SEED funds. As stated above, this support has been key to the growth and revitalization of the economy and infrastructure in the republic. However, most of this aid has been targeted at the Federation; the previous government of the RS was anti-Dayton and not assisted by the U.S. The election of the "Sloga" or "Unity" Coalition government, led by Prime Minister Dodik, has shifted the balance of power in the RS to a pro-Dayton stance and will result in an upsurge of funding to the RS from the international community.
In addition to SEED funding, USAID programs have been crucial to the redevelopment of Bosnia and Herzegovina. USAID has programing in the following areas: economic policy reform and restructuring; private sector development (the Business Development Program); infrastructure rebuilding; democratic reforms in the media, political process and elections, and rule of law/legal code formulation; and training programs for women and diplomats.
Disputes - international: disputes with Serbia over Serbian populated areas of Bosnia and Herzegovina
Illicit drugs: minor transit point for marijuana and opiate trafficking routes to Western Europe