Next to Macedonia, Bosnia and Herzegovina was the poorest republic in the old Yugoslav Federation. For the most part, agriculture has been in private hands, but farms have been small and inefficient, and food has traditionally been a net import for the republic. The centrally planned economy has resulted in some legacies in the economy.
Industry is greatly overstaffed, reflecting the rigidity of the planned economy.
Economic data are of limited use because, although both entities issue figures, national-level statistics are not available. Moreover, official data do not capture the large share of activity that occurs on the black market. Implementation of privatization, however, faltered in both areas. Banking reform is also lagging. The country receives substantial amounts of reconstruction assistance and humanitarian aid from the international community but will have to prepare for an era of declining assistance.