For over three years, public and academic discourse in Bosnia and Herzegovina (BiH) has highlighted the severe material vulnerabilities arising from the lack of functional strategic commodity reserves. This policy brief introduces a constitutional, legally sound, non-centralized mechanism to resolve this crisis: the Inter-Entity Legal Institute for Coordination and Joint Public Procurement (IELIC). Grounded strictly in Article III(5)(a) of the BiH Constitution, this framework circumvents the politically sensitive issue of the “transfer of competencies” by utilizing consensual horizontal agreements. Financial liquidity is secured by allocating 5% of the record-breaking indirect tax revenues from 2025 (12.17 billion BAM) and early 2026 surpluses. Furthermore, the brief outlines a comprehensive Public- Private Partnership (PPP) model to leverage private storage infrastructure, ensuring immediate food, medical, and energy security through an automated, needs-based distribution algorithm. By bypassing institutional deadlocks through contractual cooperation and public-private agility, this framework offers a replicable legal-governance model for supply chain resilience in highly decentralized or post-conflict states globally.
Key words: commodity reserves; fiscal policy; supply chain security; public-private law; constitutional law; Bosnia and Herzegovina.
