The Marka (BAM or KM), also known as the convertible mark, is the official currency of Bosnia. In 1995, Bosnia signed the Dayton Peace Accord, which divided Bosnia into a Serb Zone and a Muslim-Croat zone (also known as the Federated zone). When the new government took over, they issued a new currency, the Bosnian Convertible Marka, and tied it to the German Mark. Recently, the German Mark ceased to exist and the Marka became its own independent currency, giving the Bosnian people a renewed sense of confidence in their currency and their economy.
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What does it look like?
Bosnia is an emerging federal democratic republic with two administrative divisions and one internationally supervised district. The government consists of three branches: executive, legislative, and judicial. The executive branch is composed of three Chairmen of the Presidency: a Bosniak, Croat, and a Serb. The three members of the presidency are elected by popular vote to serve a four-year term. One member rules the country and the chairmanship rotates every eight months during the presidency. The legislative branch is a bicameral Parliamentary Assembly that consists of the National House of Representatives with 42 seats elected by proportional representation, 28 seats from the Federation of Bosnia and 14 seats from members elected by popular vote to serve four-year terms. The House of Peoples consists of 15 seats divided into 5 Bosniak, 5 Croat, and 5 Serb. The judicial branch is the BiH Constitutional Court, which consists of nine members, four who are selected by the Bosniak/Croat Federation's House of Representatives, two by the Reublika Srpska's National Assembly, and three non-Bosnian members are selected by the President of the European Court of Human Rights. There is also a BiH State Court, which consists of nine judges and three divisions: administrative, appellate and criminal. There are also a number of lower courts, which are composed of 10 cantonal courts and 5 municipal courts.
- Prominent Figures: The president of Bosnia is Niko Lozancic who has been in office since January 27, 2003. The vice presidents for Bosnia are Sahbaz Dzihanovic and Desnica Radivojevic. The country's bank is the National Bank of Bosnia, led by Chairman Alexander Zsolnai.
Tourism is a major part of Bosnia's economy. About 500,000 tourists visit Bosnia every year. The tourists help circulate foreign currency in the country. Bosnians that often return home from abroad during summer months contribute to an increase in the retail sales and food service industries.
Political corruption accounts for most of the problems in Bosnia and is a major economic factor as well. Most of the corruption occurs on the lower levels of the government. Much of the tax money is supposedly not used for the right reasons. Very little tax money is used for the good of the general population.
Key Economic Factors
Presently, Bosnia is fairly economically sound. This would not be possible without the help of both international assistance and the establishment of economic institutions and reforms. Over the years, Bosnia has not always fared well economically. From 1992 to 1995, Bosnia hosted a large share of Yugoslavia's defense plants, which destroyed Bosnia's economy and infrastructure. This caused unemployment to increase tremendously and production to drop an astounding 80%.