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A project by Office for Foreign Affairs

Promoting Inclusive Economic Development in Rural Areas of Herzegovina (RAST II)

Bosnia and Herzegovina remains one of the economically weakest countries in Europe. High unemployment, outward migration and limited local capacities continue to hamper development, particularly in rural areas. Since 2022, Liechtenstein has been supporting the RAST project, which is based on the Market Systems Development approach and aims to strengthen local value chains in the tourism, cultural and agricultural sectors.

With RAST II, this successful initiative is being deepened and continued with a stronger geographical focus. The project creates new economic opportunities in the municipalities of Konjic, Jablanica, Stolac and Trebinje, with particular emphasis on supporting women, young people and micro-enterprises that are often underrepresented in the labour market. Liechtenstein is supporting this second phase of the project with a contribution of CHF 560,000.

By combining infrastructure development, professional marketing, innovative business models and support for local administrations, the project creates long-term income opportunities and helps reduce migration pressure. The participating municipalities are also contributing their own financial resources, underscoring both local ownership and the project's prospects for success.

Project goals

Strengthening local economic systems through enhanced tourism- and agriculture-based value creation, particularly for the benefit of women and young people.

Creating sustainable income opportunities in rural municipalities to reduce unemployment and poverty.

Reducing migration pressure by fostering more attractive local economic structures and opportunities.

Building robust capacities within local institutions and encouraging greater ownership and responsibility by municipalities.

Project facts

Country and region:

Bosnia and Herzegovina

Project duration:

2026-2028

Total amount:

CHF 1'364’706

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