Between Practicality and Politics: Factors of Sub‐National Aid Allocation in Bosnia and Herzegovina

ABSTRACT Bosnia and Herzegovina represents a unique case of aid recipient for its complex history and administrative and political divisions. Yet, little is known about how foreign aid is allocated to local recipients. This qualitative study uncovers factors shaping sub‐national aid allocation in Bosnia and Herzegovina, highlighting donors' and recipients' perspectives on allocation decision‐making in this postconflict, posttransitional context. The study identifies five interacting factors: (i) capable performers, (ii) avoiding uneven development of the country, (iii) leaving a significant footprint, (iv) wider strategies and principles and a rather subsidiary factor of (v) helping where the need is perceived. They encompass practical considerations of recipients' capabilities and needs, aid effectiveness principles, donors' preferences and political notions of enhancing collaboration between state entities and balanced development. The article provides the basis for studying the effects of local aid distribution on regional disparities, as these proved to prompt political contestations.