The Republic of Srpska is situated in the central part of Balkan Peninsula (South-East Europe) within the borders of ex-Yugoslavia. It covers an area of 25.053 sq. km. The territory is grouped in two main regions, North-Western part of Srpska (consisting of Banja Luka Krajina region and Posavina region), and Eastern part of Srpska (consisting of Semberija and Majevica region, Drina region, Sarajevo and Romanija region and Herzegovina region). Some 55% of its territory is covered by forest mountains, and the highest peak is Maglic (Herzegovina region) at the altitude of 2.350 m above sea level. The climate in general is the continental one with long snowy winters and dry hot summers, with the exception to the Herzegovina region which enjoys the benefits of the Mediterranean climate.
The capital of the Republic is the city of Serb Sarajevo (Pale - pop. 95.000) the main administrative center and the seat of the Government. The main business center is Banja Luka (pop. 218.436) in the North- Western part of the country, with well developed agriculture, industry and services sector. The main airport is located there, and it is connected with the other parts of the country by rail and roads. Bijeljina (pop. 105.057) is situated in the North-East part of the country, only 8 km from the border with the Federal Republic of Yugoslavia (Serbia and Montenegro). It is a well-developed agricultural and trading center.
Formerly a part of the Kingdom of Yugoslavia and later on of the Socialist Federal Republic of Yugoslavia, this region had a specific status in development. The general direction was towards the development of energy exploitation, metallurgy and industry. However, the territory of the Republic has a very good potential for development, especially given its well-educated population and the structure of the economy in which all the sectors are represented. The natural beauty of the country can be compared to the one of Switzerland or Austria, and the natural resources provide a good basis for future development.
The currency of Srpska is Yugoslav dinar (1 Din=100 para). The exchange rate is 3.3YUD=1DM. Republic of Srpska decided to enter into monetary union with FR Yugoslavia and this process has been under way for more than 24 months. Yugoslav dinar has been stabilized under the Program of the Governor of the Yugoslav Central Bank, Mr. Avramovic, and the government of the Republic is respecting it strictly in order to preserve the value of the currency. There is no plan at the moment to create the currency of the Republic itself.
The population of the Republic of Srpska is estimated to be in the region of 1.391.000 of which approximately 95% are of Serb ethnic origin and the remaining 5% are mainly Croats and Muslims. The population density is 55,5 persons per square kilometer. The official language is Serb, but the population is familiar with the German language due to the great number of people working in Germany, and with English which is the main foreign language taught in schools. Some 50.000 residents of the Republic work abroad, mainly in EU countries (Germany, France, Austria, Sweden).
The Constitution protects political pluralism, human rights and private property in the Republic. The Constitution provides Parliamentary form of government with a unicameral legislative assembly by which the executive, legislative and judicial powers are exercised by separate and independent bodies.
The Republic is represented, home and abroad, by the President of the Republic and the two vice-presidents. The President is the supreme commander of the armed forces and nominates the Prime Minister to the National Assembly. He is also authorized to raise any questions of national importance in the Assembly and to proclaim laws and regulations adopted by the Assembly. The President of the Republic is elected for a 5-year term in direct elections.
The executive branch consists of the Prime Minister and the Cabinet, appointed by the National Assembly out of the majority party or a coalition in the Assembly. There are 16 Ministries: Agriculture, Forestry and Waterworks, Commerce and Tourism, Civil Construction and Urban Planning, Defense, Energy and Industry, Education, Culture and Science, Finance, Foreign Affairs, Health,Welfare and Labour, Information, Interior, Justice, Religion, Transport and Telecommunication and War Veteran Protection.
The legislative branch is comprised of the House of Representatives (82 members), whose members are elected for a four-year term under the voting system of simple proportional representation. There is a multiparty system with a Serbian Democratic Party (center), Serbian Renewal Movement (right), Reformist Alliance (left) and the Party of Democratic Changes (left) represented at the moment in the Assembly. Recently several other political parties were established such as Radical Party (right) and Socialist Party (left). There are 28 political parties in the register of 1996.
The administration of justice is entrusted to a separate and independent judiciary consisting of the Basic and District Courts, Supreme Court and the Constitutional Court. The Constitutional court adjudicates exclusively on all constitutional law matters and recourse for the annulment of administrative acts. The Supreme court is the highest appellation court in the Republic.