Strategic Reserves Under Geopolitical Shock: Economic Diplomacy and Administrative Risk Governance in Decentralized States

The current fragmentation of the global order, accompanied by the collapse of multilateral trade mechanisms and protectionist export restrictions, has exposed decentralized states with complex constitutional structures to extreme material vulnerabilities. Directly building upon previous research on the operational framework of Bosnia and Herzegovina (BiH), this paper provides a structural governance and macroeconomic upgrade to the model of the Inter-Entity Legal Institute for Coordination and Joint Public Procurement (IELIC). The central focus of this research is the normative shaping and modus operandi of its internal body—the Specialized Unit for Ensuring the Continuity of Critical Supply Chains (SUCSSFC). Under conditions where global institutions like the World Trade Organization (WTO) are losing executive efficiency, the SUCSSFC acts as a depoliticized, technocratic tool based on the horizontal consensus of entity authorities, operating directly through the network of diplomatic and consular missions (DCMs). The financial and economic architecture of this solution rests on the institutional integration of special economic envoys within embassies, graduated risk-insulated bank guarantees, a “Golden Share” public–private partnership (PPP) model, and a self-executing mechanism of reciprocal cross-compensation to prevent internal political vetoes. Operational and public management agility is achieved through the introduction of distributed blockchain protocols, smart contracts, Internet of Things (IoT) telemetric validation, and a graduated 48-h mitigation window that optimally balances commercial feasibility with crisis urgency. System funding is secured without external borrowing, through a Multilateral Sovereign Trust Fund managed by a neutral international financial institution, with ring-fenced escrow accounts for crisis payments. This paper demonstrates that horizontal cooperative federalism, initially designed for the constitutional framework of BiH, offers a universal and internationally applicable model that can support food, energy, and pharmaceutical security through the diplomatic and consular network, without infringing upon the sovereign division of competencies.