One of the two entities of Bosnia and Herzegovina (BiH), formed in 1995 as a result of the Dayton Accords, which put an end to the Bosnian war. The capital is the city of Sarajevo. The entity occupies 51% of the territory of BiH, which is home to about 62.6% of the country's population. The dominant ethnic group is Bosniak (80%). Croats make up 14%, and Serbs - 4.4%. Ethnic groups differ religiously.
Politico-institutional design of Bosnia and Herzegovina features decentralization and ethnic segmentation. The party system of BiH is comprised of a collection of ethnic parties. According to the Dayton Agreement, the FBiH, along with another entity (Republika Srpska), has exclusive powers in the field of defence and the organization of the armed forces. Under the FBiH government purview are issues of the development and implementation of economic, fiscal and monetary, as well as energy policy.
Decentralization is also characteristic of FBiH. It consists of ten cantons: five Bosniac, three Croatian, and two with an ethnically mixed population. The FBiH public authorities are formed on the principle of proportional representation of three ethnic groups - Bosniaks, Croats, and Serbs. However, since there is no separate ethnicity vote in the elections, it is possible that a representative of one ethnic group can be nominated from a political party of another ethnic group. In the FBiH, the conflict associated with Croatian demands for the allocation of the Croatian entity recurs periodically.