Politics take place in a framework of a parliamentary representative democracy, whereby executive power is exercised by the Council of Ministers of Bosnia and Herzegovina. Legislative power is vested in both the Council of Ministers and the Parliamentary Assembly of Bosnia and Herzegovina. Members of the Parliamentary Assembly are chosen according to a proportional representation (PR) system.

Bosnia and Herzegovina is a liberal democracy. It has several levels of political structuring, according to the Dayton Agreement. The most important of these levels is the division of the country into two entities: the Federation of Bosnia and Herzegovina and Republika Srpska. The Federation of Bosnia and Herzegovina covers 51% of Bosnia and Herzegovina’s total area, while Republika Srpska covers 49%. The entities, based largely on the territories held by the two warring sides at the time, were formally established by the Dayton Agreement in 1995 because of the tremendous changes in Bosnia and Herzegovina’s ethnic structure. Since 1996, the power of the entities relative to the State government has decreased significantly. Nonetheless, entities still have numerous powers to themselves.

The first general elections for the National Assembly were held on 24 March 2008. The chief contestants were the Bhutan Peace and Prosperity Party (DPT) led by Jigme Thinley and the People’s Democratic Party (PDP) led by Sangay Ngedup. The DPT won the elections, taking 45 out of 47 seats. Jigme Thinley served as Prime Minister from 2008 to 2013.

The People’s Democratic Party came to power in the 2013 elections. It won 32 seats and 54.88% of the vote. PDP leader Tshering Tobgay served as Prime Minister from 2013 to 2018.

Druk Nyamrup Tshogpa won the largest number of seats in the 2018 National Assembly Election, bringing Lotay Tshering to premiership and Druk Nyamrup Tshogpa into the government for the first time