Bosnia and Herzegovina is a democratic state, which operates in accordance with the constitution and law and based on free and democratic elections. Bosnia and Herzegovina consists of two entities: the Federation of Bosnia and Herzegovina and Republika Srpska (hereinafter referred to as "entities") and Brčko District of BiH. Federation of Bosnia and Herzegovina consists of 10 cantons.
The highest legislative body in BiH is Parliamentary Assembly of BiH composed of House of Representatives and House of Peoples. House of Representatives has 42 members, of which two-thirds are elected from the Federation of Bosnia and Herzegovina and one-third from the territory of Republika Srpska. The House of Peoples has 15 delegates, two-thirds from the Federation of Bosnia and Herzegovina (five Croats and five Bosnians) and one-third from Republika Srpska (five Serbs).
The Presidency of Bosnia and Herzegovina has the function of the collective head of state, and it consists of three members: one Bosnian, one Croat and one Serb. The members of the Presidency are elected through direct elections. Representatives of Croats and Bosnians are elected from the territory of the Federation of Bosnia and Herzegovina, whereas Serb representatives are elected from the territory of the Republic of Srpska. The members of the Presidency are elected for a term of four years. Chairman of the Presidency rotates every eight months.
The Council of Ministers is the executive authority of Bosnia and Herzegovina. The Council of Ministers has the Chairman and ministers. BiH Presidency appoints the Chairman of the Council of Ministers, and the Parliamentary Assembly of BiH elects his or her cabinet, i.e. ministers. The Council of Ministers has a nine ministries: Ministry of Foreign Affairs, Ministry of Foreign Trade and Economic Relations, Ministry of Finance and Treasury, Ministry of Communications and Transport, Ministry of Civil Affairs, Ministry for Human Rights and Refugees, Ministry of Justice, Ministry of Security and the Ministry of Defence. The mandate of the Council of Ministers is 4 years.
The Council of Ministers has its permanent bodies: General Secretariat, Economic Directorate, Internal Politics Directorate, Directorate for European Integration of Bosnia and Herzegovina and Bureau for Legal Matters. Composition of the Council of Ministers reflects the current parliamentary majority, and it is accountable to the Parliamentary Assembly of BiH for its work.
Federation of Bosnia and Herzegovina and Republika Srpska are entities with their own constitutions, which must be in compliance with the Constitution of Bosnia and Herzegovina. Republika Srpska is centralized and has one government, whereas the Federation of BiH government is decentralized. In addition to the Government of the Federation of BiH there are ten cantonal governments. The Federation of Bosnia and Herzegovina consists of ten cantons (which are further divided into municipalities, in terms of administration), including:
1. Una-Sana canton
2. Posavina canton
3. Tuzla canton
4. Zenica-Doboj canton
5. Bosnia-Podrinje canton
6. Central Bosnia canton
7. Herzegovina-Neretva canton
8. West Herzegovina canton
9. Sarajevo canton and
10. Canton 10 (Herzegbosnia canton).
The cantons of the Federation of Bosnia and Herzegovina are administratively further divided into cities and municipalities