Economic Dependence as a Threat to Sovereignty: How Serbia and Croatia Shape the Destiny of BiH

Written by: Rasim Belko @rasimbelko

Once upon a time there was a country, very old in spirit and identity, just emerging in terminology. Burned. Killed. Plowed with artillery and tools. Soaked in blood. Yet it survived, bloody and divided. No, it is not called Ukraine.

Because, who in Ukraine today would think, let alone propose to Volodymyr Zelenskyy, to end the war by making Russia a co-owner of their companies? Or for someone to propose that ten or twenty years after the war this becomes a reality? I believe Zelenskyy would rather take his own life than accept such an idea.

In Bosnia and Herzegovina, this is reality. And in this text, I will deal a little with economic projections or flows. For the story we are telling, this is the least important, and even less important are the stories about jobs, business, or globalism.

The presence of Serbia and Croatia in the ownership structures of public, and especially strategic, companies in Bosnia and Herzegovina represents a significant challenge not only from an economic but also from a political aspect. Through the prism of historical relations, regional hegemonic aspirations, and current political dynamics, it is clear that ownership of key resources has profound consequences for the sovereignty and stability of BiH.

Economic Influence as an Instrument of Policy

Serbia and Croatia achieve a significant presence in sectors such as energy, telecommunications, and industry in BiH. This influence goes beyond purely market interests – it becomes a tool for controlling key flows of capital and resources in the country. The energy sector is the most obvious example. Through ownership stakes in companies that manage infrastructure or supply, neighboring countries directly influence the stability of BiH's energy system, as well as political decisions related to international agreements and projects such as gas pipelines or electricity grids.

Similar is the case with the presence of Serbian and Croatian banks in BiH, which enables direct influence on capital flows and control of the financial system. When ownership is centralized in the hands of foreign states with long-term political interests, economic interests become inseparable from political strategy, opening space for blackmail or pressure on the authorities.

Political Implications and Regional Hegemony

The political dimension of this economic dominance is even more alarming. Serbia and Croatia are not ordinary neighboring countries – their history of relations towards BiH is marked by aspirations for territorial and political subjugation. Serbia, through the concept of the "Serbian world," promotes political and economic homogenization of the space where Serbs live, while Croatia uses its EU membership status to dictate the dynamics of BiH's European integration and achieve economic dominance.

Strategic ownership thus becomes an extension of political hegemony. Serbia uses economic ties to include BiH in initiatives like the "Open Balkan," which de facto promote Serbian dominance over regional markets. Croatia, on the other hand, actively blocks projects that could position BiH as a competitor, such as the construction of a liquefied natural gas terminal or the modernization of transport routes.

Historical Parallels and Contemporary Challenges

History teaches us that economic dependence often leads to political subordination. In the case of BiH, ownership of public companies in the hands of neighboring states can limit its ability to act on key political issues, including territorial integrity, internal stability, and international policy.

Examples are already present. Croatia used the construction of the Pelješac Bridge to further strengthen control over the Adriatic, ignoring BiH's interests. Serbia, through its resources in the RS entity, supports secessionist narratives and destabilizes the state, using so-called special and parallel ties between the RS and Serbia to achieve its political goals.

Strategies for Protecting Economic Sovereignty

Bosnia and Herzegovina must redefine its approach to foreign ownership in public and strategic sectors. The first step is to establish stricter legal regulations that will limit the concentration of ownership by foreign actors in key industries. In parallel, it is necessary to strategically support the development of domestic companies, with political will and coordinated economic policy.

Strengthening cooperation with countries that have no political pretensions towards BiH, such as Slovenia or other EU members with neutral interests, can offer an alternative to dependence on Serbia and Croatia. At the same time, BiH must build institutional capacities to protect its interests in international forums, using EU and UN mechanisms for equal relations with its neighbors.

The presence of Serbia and Croatia in the ownership structures of key companies in BiH is not just an economic issue – it is a political problem with serious consequences for the sovereignty and security of the state. Without a clear response, BiH risks becoming an economic colony of its neighbors, thereby further strengthening their hegemonic aspirations.

It is time for the authorities in BiH to stand decisively and clearly before this challenge, putting the interests of the state ahead of particular political and economic calculations.