Despite this, authorities are not shy to talk about the progress the former Yugoslav republic has made since the 1992-1995 war when the country was awash with blood.

"What we have seen is a decade of successful reconstruction and development ... maybe unique in the way it was done," the World Bank country manager for Bosnia, Dirk Reinermann, told AFP.

By the end of Bosnia's three-and-a-half year war, an estimated 200,000 people had been killed and 2.2 million of the country's four million people were left without homes.

In the immediate months after the peace agreement was reached in Dayton, Ohio on November 21 in 1995, Bosnia's jobless rate stood at between 70 and 80 percent, with most people depending on some form of aid.

Ten years and 5.1 billion dollars in foreign aid later, the Bosnian economy has reached its pre-war levels with per capita gross domestic product (GDP) at 1,100 dollars (935 euros).

This year, Bosnia is heading for between five and six percent economic growth, while its currency, the Convertible Mark (KM), is stable and the inflation is among the lowest in the region.

"The amount of foreign direct investment has grown steadily over the years and we expect this trend to continue," Jasna Krivosic Prsic, of Bosnia's foreign investment promotion agency, told AFP.

In the first four months of the year, Bosnia attracted more than 137 million euros (161 million dollars) in foreign investment, about four times more than in 1996 and 1997 combined.

Nevertheless, the positive statistical indicators are not mirrored by the living standards of Bosnian people.

The lack of proper work and a decent income remains a serious problem in the country, with 18 percent of the population living below the poverty line.

The average monthly salary stands at 25O euros (293 dollars), which is hardly sufficient to cover the costs of the basic market basket.

"Because of the war and the post-war period Bosnia has lost just about a decade compared to others," Reinermann said.

The weight of a decentralised and inefficient government still weighs heavily on the Bosnian economy, with 50 percent of GDP used for public spending.

Dayton split the country into two entities -- the Serb-run Republika Srpska and the Muslim-Croat Federation -- each with its own government and parliament. A weak central government links the two.

Bosnia has a huge current account deficit of some 17 percent and imports three times more than it exports.

While official statistics show unemployment to be at 40 percent, analysis taking into account the grey economy indicates it is much lower, but still a worrying 20 percent.

The grey economy is believed to be worth more than 40 percent of GDP, but the authorities are hoping to bring most of it into the open with introduction next year of a 17 percent value added tax.

Last year, the country adopted a mid-term development strategy aimed at reducing poverty by 20 percent by 2007.

"Initially some said it resembled a wish-list more than a strategy, but the implementation is proceeding well," the head of the Bosnian government's Economic Policy Planning Unit, Azemina Vukovic, told AFP.

"The reforms are obviously taking place: Bosnia has made major improvements both in terms of macro-economic framework and different industrial and social sectors."

Vukovic stresses the structure of exports has shifted from raw materials to semi-products while imports include food, tools and equipment.

Last year, Republika Srpska and the Muslim-Croat Federation recorded industrial growth of nine and 14 percent respectively.

At a donor conference held in Sarajevo last year, international benefactors promised some 1.5 billion dollars (1.28 billion euros) needed to fully implement the strategy.

"Weaknesses are there all around and we are all aware of them, but if you look at the pace of the increase of capacity, it is actually quite satisfactory," Reinermann said.