Sarajevo/Brussels, 6 May 2025 – Human development progress is slowing down at an alarming rate, according to the 2025 Human Development Report released today by the United Nations Development Programme (UNDP). Titled "A Matter of Choice: People and Possibilities in the Age of Artificial Intelligence", the report reveals the smallest increase in global Human Development Index (HDI) values since 1990, excluding the 2020-2021 crisis years.

Instead of rebounding from recent global shocks, progress has stagnated across all regions, with widening inequalities between low and very high HDI countries. This marks the fourth consecutive year of increasing disparity, reversing decades of narrowing gaps.

“For decades, we have been on track to reach a very high human development world by 2030, but this deceleration signals a very real threat to global progress,” said UNDP Administrator Achim Steiner. “If 2024’s sluggish progress becomes the ‘new normal’, that 2030 milestone could slip by decades – making our world less secure, more divided, and more vulnerable to economic and ecological shocks.”

The report also highlights the rapid expansion of Artificial Intelligence (AI), showing that 60 percent of people globally expect it to improve job opportunities—even as half believe it could significantly change or replace their current work. AI is seen as a potential tool to reignite human development—but only if approached through inclusive, human-centered policies.

Bosnia and Herzegovina: Progress with Caveats

Bosnia and Herzegovina has reached a significant milestone by entering the “very high human development” category, with a Human Development Index (HDI) value of 0.804 in 2023. The country now ranks 74th globally—up six places from the previous year. This progress reflects steady gains in life expectancy, access to education, and income over the past two decades.

Yet, beneath these headline figures, deep structural challenges persist.

Gender inequality continues to limit inclusive development. Women’s labor force participation remains at just 39.4 percent, and their Gross National Income per capita is only 53.7 percent of that of men. The HDI for women (0.789) lags behind that of men (0.816), and women hold just 22 percent of seats in the parliaments. These disparities translate into a 15.7 percent loss in potential human development, driven by unequal access to economic opportunities, political participation, and social protection systems.

Environmental sustainability presents another major concern. Bosnia and Herzegovina’s Planetary Pressures–Adjusted HDI (PHDI) drops to 0.680, due to high levels of CO₂ emissions and resource consumption. This indicates a 15.4% loss in human development, highlighting that current development gains come at a significant environmental cost, undermining long-term resilience.

Amid these challenges, Bosnia and Herzegovina also faces limited access to traditional development pathways. Export-led growth and large-scale industrial job creation—once engines of progress—are increasingly constrained by global shifts, economic pressures, and demographic change.

Still, the report highlights a path forward—centered on people, possibilities, and inclusive innovation.

Digital transformation initiatives are already showing how targeted investments can expand access and unlock human potential. Developed jointly by UNDP and our domestic and international partners, tools such as the eCitizen platform, now active in 37 cities and municipalities, are strengthening transparency and civic participation by allowing citizens to track decisions, submit requests, and receive alerts from local governments. More than 11,500 people are active users.

Mobile platforms like e-Porodilja and e-Award have simplified access to administrative services and social benefits, particularly for rural and underserved communities.

These examples point to a broader truth: digital technologies, when accessible and people-centered, can help close gaps in governance, opportunity, and sustainability. They offer Bosnia and Herzegovina new ways to deliver services, unlock economic potential, and engage citizens more effectively.

Bosnia and Herzegovina needs to strategically position itself in the era of Artificial Intelligence to protect and advance recent human development gains. Globally, nearly one in five HDR survey respondents report already using AI, and even in lower-HDI countries, two-thirds anticipate using it in education, healthcare, or work within the next year. But access alone is not enough—the real divide will depend on how effectively AI is used. For Bosnia and Herzegovina, this underscores the importance of accelerating the digital transition and developing coordinated strategies to apply AI across the public sector, private industry, and academia to strengthen resilience and competitiveness.

This is where the Human Development Report’s central message resonates most clearly: human development is not predetermined- it is a matter of choice.

For Bosnia and Herzegovina, the choices ahead involve tackling structural inequalities, accelerating the green transition, closing digital divides, and ensuring that technology serves people—not the other way around.

By investing in inclusive, future-ready systems and empowering communities to lead change, the country can not only preserve its recent gains but also build a foundation for sustained, equitable, and climate-resilient development.

The recommendations of the Human Development Report closely align with the work already underway by UNDP in Bosnia and Herzegovina. From helping governments, small businesses, and schools adopt digital tools that complement rather than replace human work, to engaging citizens and communities in policy design and social innovation—people are at the center of our digital efforts. We are investing in capabilities that matter today and tomorrow: supporting STEM education, promoting digital literacy, and helping launch the region’s first AI-focused university degree. Bosnia and Herzegovina’s socio-economic competitiveness will increasingly depend on how well its people—especially younger generations—are prepared for the age of AI and emerging technologies. Building on this, UNDP’s new Country Programme for Bosnia and Herzegovina 2026–2030 puts innovation and digital transformation at the heart of our support—serving as accelerators to help the country tackle its key development challenges and advance the Sustainable Development Goals for the benefit of all, especially the most vulnerable.

The 2025 Human Development Report is available at:

https://hdr.undp.org/content/human-development-report-2025

Bosnia and Herzegovina related data

https://hdr.undp.org/data-center/specific-country-data#/countries/BIH