The sustainable forest management concept contains the essence of the sustainable development paradigm - meeting the current needs of society without compromising the needs of future generations. The strategic commitment of the Faculty of Forestry University of Sarajevo is aimed at quality education of forestry experts, conducting innovative research and the most intensive cooperation with the economy. The methodological approach in this paper is based on a critical analysis of the scope of the educational-research process at the Faculty of Forestry University of Sarajevo, and the potentials of sustainable forest management in BiH, to determine to what extent higher education and research on environmental, sociological and economic aspects of forest management can affect positive changes in BiH society. Apart from identifying the benefits of forest ecosystems in the context of contributing to sustainable development, the research on the attitudes of teaching staff related to the contribution of the educational-research process to general goals of sustainable development from the 2030 Agenda was conducted. The results of this paper show that the concept of sustainable forest management, as it is realized in educational-research process at the Faculty of Forestry University of Sarajevo, has significant potential to contribute to sustainable development in BiH. This contribution is reflected in biodiversity conservation, mitigation of climate change, carbon storage, prevention of natural disasters, impact on the stability of water and soil, energy supply from renewable sources, continuous economic growth, socially responsible production and consumption, job security, development of rural and urban areas as well as maintaining and improving the psychophysical health of the population. Based on the obtained results, it can be concluded that sustainable forest management, grounded on scientific postulates, understanding of diversity of forest ecosystem services and dynamics in society's requirements towards forests, multidisciplinary and cross-sectoral cooperation, can be an important factor of sustainable development in BiH.

Climate change is recognized as a global threat that negatively impacts biodiversity and forest resources. The use of existing indicators for sustainable forest management (SFM) related to biodiversity and climate change, as well as the development of new indicators, will help assess how forest management practices impact biodiversity enhancement and climate change mitigation. A Pan-European set of criteria and indicators has been developed as a policy instrument for monitoring, evaluating, and reporting on the progress in implementing SFM. In Bosnia and Herzegovina and Western Balkans in general, the Pan-European set of criteria and indicators is an insufficiently researched topic and there is a lack of scientific research conducted regarding their development and implementation. Through the analysis of the current situation in forestry of the Federation of Bosnia and Herzegovina (FBiH), regarding the compliance and importance of the Pan-European criteria for SFM, this paper aims to explain how the international process of development and application of the Pan-European criteria for SFM can contribute to the improvement of the situation in forestry and the creation of a consistent forest policy in FBiH. The survey among forestry professionals (n=360), from the public forest administration and public forest companies in FBiH, included the sets of questions related to socio-demographic characteristics, assessment of compliance and importance of six criteria of SFM. Research results revealed that forestry professionals are mainly males, on average 41 years old, with 13 years of working experience. The majority of forestry professionals in FBiH are not familiar with Pan-European criteria for SFM, and have a low level of their understanding. On average, forestry professionals indicated that the Pan-European criteria for SFM were of high importance, while compliance with current forest management activities were rated lower on average. The large differences between responses regarding the average rating of compliance and importance of the Pan-European criteria for SFM indicate their low level of implementation in FBiH forest management activities. Accordingly, the results indicate that there is a need to organize educational lifelong learning programs in FBiH forestry sector, involving forestry professionals and other interested parties, to generate knowledge related to the Pan-European criteria for SFM and the concept of SFM in general.

UDK: 630*9:502.1(234.422 Vranica) Nature conservation and sustainable management of forest resources become more important in Bosnia and Herzegovina, driven by the accession process toward the European Union as well as other international processes directed toward responsible management of forest resources. The forest certification has been widely adopted in the forestry sector and it implies meeting the sustainable forest management standard, whereas identification and proper management of high conservation value forests are one of the basic requirements. The NATURA 2000 ecological network is to become an important driver of reforms in the field of nature protection and forestry sector, due to the designation of new sites in forest area, which are under the responsibility of forestry institutions. This paper illustrates the scientific understanding of identification and management processes related to high conservation value forests that were proposed within potential NATURA 2000 habitats. The paper is based on analysis of main guiding principles for site designation and the role of the cross-sectoral approach applied identification and management of sites with high conservation value attributes. The case study research design was selected focusing on the Vranica Mountain due to recent activities implemented in this site. The in-depth face-to-face interviewing was used to collect qualitative data containing the key stakeholders' attitudes regarding the harmonization of NATURA 2000 habitats with the high conservation value forests – (HCVF), as well as the involvement of stakeholders in the processes of cross-sectoral cooperation. Results of this paper can be useful for the key forest and nature protection policy-makers, as well as to those responsible for managing of protected areas, or other stakeholders directly or indirectly involved in the process of identification and management of HCVFs and NATURA 2000 sites. Harmonisation of guiding principles and cross-sectoral cooperation during the identification and management of HCVFs and NATURA 2000 forest habitats enables the proper implementation of conservation and management measures based on sustainable forest management activities.

A company that handles natural resources such as forests is a complex economic entity. In addition to economic performance at annual level, the biological component of sustainable forest management should also be considered. It is therefore extremely important to achieve efficient business performance. Financial analysis is a process of determining important business and financial characteristics of a company from accounting data. It is characterized by a wide use of financial reports and various financial indicators key figures. The paper presents business indicators of the main state-owned forest companies in selected countries of South East Europe (Croatia, Slovenia, Serbia, Bosnia and Herzegovina, and North Macedonia) using the method of comparative analysis based on financial reports (such as balance sheet and income statement). In countries where there are more than one state-owned forest companies, they were selected according to their importance for forest management and business results (share of forests, number of employees, profit and annual felling). The research results show the revenue and expenditure of the selected companies and profitability indicators such as return on equity (ROE) and return on assets (ROA). According to the annual business reports for 2017 and 2018, the company Croatian Forests Ltd. has the highest number of employees (7787 in 2018). The highest ratio ROA (32.17) and ROE (39.82) were achieved in the Slovenian state forestry company in 2017, which was founded in 2016. For 2018, the best results are achieved in the Slovenian Forest Company (SiDG), while the weakest results are achieved in the State Forest Company in North Macedonia. The profit per employee decreased in 2018 for most companies, but most significantly in North Macedonia, where it was four times lower. On the basis of the comparative analysis presented, all companies have a positive cost-benefit ratio, but longterm planning of forest management should follow biological and economic regulations to be competitive on the free market.

Forest resources in Bosnia and Herzegovina present rich sites of various non-wood forest products. In the concept of sustainable use of forest resources and assurance the economic, environmental and social effects, non-wood forest products have great importance, especially in the strategic commitments of rural development. However, information on the potentials of non-wood forest products in Bosnia and Herzegovina is very scant, whereas institutional and procedural framework relevant to this sector is underdeveloped. In this paper value chain analysis of non-wood forest products in Bosnia and Herzegovina have been carried out in order to identify the participants in the value chain, their mutual relations, and the analysis of organizational and institutional issues that affect the economic aspects of certain stages of the value chain. Survey method was used for primary data collection in the Federation of Bosnia and Herzegovina, where the relevant information from participants in the chain of non-wood forest products has been obtained. The study included a sample of 156 collectors, who had continuity in the collection and delivery, and 18 companies engaged in purchasing, processing and distribution, which have agreed to participate in the research. For data processing and interpretation of the results classical methods of analysis, synthesis, induction, deduction and comparison, and statistical methods of trend analysis were used. Technique of SWOT analysis was used in order to identify the positive and negative factors, as the basis for defining the strategic direction of non-wood forest products sector development. The obtained results indicate on the presence of numerous problems in the value chain. The share of individual groups of non-wood forest products in the analyzed period is: 50% of berries, 40% of medicinal and aromatic plants and 10% of mushrooms. The average annual growth rate of purchased and processed amounts of medicinal and aromatic plants was 17%, 28% of forest berries, and

UDK: 630*9(497.6 Unsko-sanski kanton)“2003/2013“ Investments in forest sector represent an important issue that is regulated by legislation. Legislative framework that regulate forest sector in the Federation of Bosnia and Herzegovina has been changing recently - from the Law on Forests of the Federation of Bosnia and Herzegovina (2002 – 2009), Forest Regulation of the Federation of Bosnia and Herzegovina (2009 – 2012) and finally cantonal Laws on Forests (2012 to date). Cantonal laws currently represent the only valid legislative documents that regulate forest sector in the Federation of Bosnia and Herzegovina. This paper analyse the investments in the public forests at the territory of Una-Sana Canton, managed by forest management enterprises "Unsko-sanske šume", within the period 2003-2013 in dependence of the valid legislative frameworks. Having in mind the various regulations that prescribed the financing of the biological investments, scope and structure of the performed activities together with the amount of invested funds have varied between particular periods. The biggest share in total investments to forest sector belongs to the silvicultural measures (66%) and forest road construction (17%). The analysis included the trend of realised biological investments and invested funds. It reveals the mutual incompatibility that causes the differences in unit costs of biological investments in various periods. This implies the need for creation and implementation of unique methodology for cost calculation respecting the basic principles of econometrics. Conducted analysis indicated that previous legislative frameworks did not prescribe appropriate financing model. One should bare in mind this fact during the prescription of new financing model in the ongoing proposal of new Law on Forests of the Federation of Bosnia and Herzegovina.

UDK: 630*93:712.2(1-751.2)(497.6 Una) Protected areas have significant role in protection of biodiversity, social and cultural values followed by improvement of life standard of local population. As a country with economy in transition, Bosnia and Herzegovina is trying to follow globally increasing trends in nature protection. Yet, Bosnia and Herzegovina belongs to the group of countries that have difficulties to meet European criteria for minimal percentage of protected areas. Although in the last two decades numerous initiatives for proclamation of protected areas have been launched, the percentage of protected areas is still far from the European average. Establishment of new protected areas is often followed with certain misunderstandings between interest groups, lack of participation, transparency and involvement of all interest groups. The concept of cross-sectoral cooperation imply interaction between different interest groups in specific area characterized by efforts, cooperation and responsibility in order to accomplish joint consensus about the improvement of management of natural resources. This paper is focusing on the concept of cross-sectoral cooperation through the analysis of its implementation in management of National park "Una", as the youngest proclaimed National park in Bosnia and Herzegovina. The attitudes of interest groups related to cross-sectoral cooperation will be discussed together with proposal of several activities for improvement of cross-sectoral cooperation in National park "Una". Results could be useful for key decision makers in nature protection sector and institutions responsible for management of protected areas to recognize importance of cross-sectoral cooperation and promote its implementation and everyday practice.

UDK: 630*93:630*68(497.6) Illegal logging and related trade represent one of the most important forest-related issues at international policy scene. In 2002, the European Union had initiated establishment of regional initiatives on preventing trade of illegally harvested wood, well known as FLEGT process. Other important segment of European Union efforts is adoption of legally-binding Regulation No. 995/2010 - EU Timber Regulation (EUTR) that prohibits import of illegally harvested wood and their products into EU. Bosnia-Herzegovina is country with economy in transition and with relatively slow progress toward EU integration process, while rising of awareness on need for prevention and combat with illegal activities and corruption represent one of the mayor challenges for its society. This paper analyse forestry professionals’ awareness of the EU Timber Regulation in the Federation of Bosnia-Herzegovina as precondition for planning further steps on improving human and institutional capacities in forest sector to prevent and combat with illegal activities. In order to conduct the analysis of forestry professionals’ awareness on EUTR, survey was conducted among currently employed forestry professionals in forest sector of the FB-H. Results revealed that employed forestry professionals in the FB-H have different level of awareness on EUTR. Therefore, creation and consistent implementation of informational forest policy instruments are needed in order to increase capacities of forestry professionals related to elements of EUTR implementation process. Efforts on prevention and combat with illegal activities in forest sector should involve implementation of mix of forest policy instruments directed toward harmonization of forest policy in the FB-H with EUTR requirements based on active participation of forestry professionals that are aware of EUTR implementation process and its potential influences on forest and wood-processing sectors of the FB-H.

SUMMARY For the last 20 years, economic development of Bosnia and Herzegovina has been based on utilization of natural resources. Such trend resulted with increased pressure on natural resources. On the other hand, changing demands of the society toward natural resources call for a more active and resolute efforts in terms of nature protection, increasing consumption of renewable energy etc., thus demanding for implementation of new, participatory and adaptive approach to natural resource management. Concept that implies active participation of all stakeholders, establishes rules for responsibility-sharing and strives to create procedures for addressing various interests over forest resources is known as forest governance. Model Forest concept represents one of the modes of forest governance. It is an inclusive, participative and a transparent concept that promotes collaboration among stakeholders with diverse interests over specific landscape. Taking into consideration abovementioned changing demands over natural resources in Bosnia and Herzegovina, implementation of this concept could lead to a more sustainable and socially responsible management of natural resources. Therefore, purpose of this paper is to point out various aspects of implementation of this concept. Consequently, main achievement of this paper is to identify existing support and willingness for implementation of this concept by diverse stakeholders in Tesanj Municipality, as a pilot case study in Bosnia and Herzegovina. Implementation of Model Forest in Bosnia and Herzegovina, as innovative concept of natural resource management, could lead to membership in Mediterranean Model Forest Network as well as International Model Forest Network. Involvement in such international initiatives assures continuous improvement of natural resource management directed toward fulfilment of

UDK 630*6:630*43(497.6 Prozor-Rama)          630*43:630*6(497.6 Prozor-Rama Despite of the significant activities on the forest fires prevention, number of forest fires is constantly growing worldwide causing tremendous direct and indirect damages. Direct damages are referring to the losses on timber and other forest products, fire fighting and remediation costs as well as costs of fire sites restoration. Indirect damages are referring to the negative impacts of forest fires on various ecosystem services and overall conditions of environment. Despite of the fact that indirect damages could be far greater than direct ones, in most of the cases in Bosnia- Herzegovina, they are not included in the assessment of the damages and methodology for their calculation is not developed yet. The goal of this paper is to conduct the economic valorisation of direct and indirect damages from forest fires at the territory of Prozor-Rama municipality in 10-years period in which the scope and frequency of the forest fires were determined. The methodology that is used in this paper is developed by European experts on assessment of socio-economic damages from forest fires in Europe (PETTENELLA et al, 2008). Formula for calculation of damages of some functions and values of forests are partially modified due to the specific conditions of forest management practice and characteristics of forest stands, while some of them were excluded from assessment since they required additional research for their valuation. Calculated values of the damages are 11 times greater than those that are presented in the Register of the damages from forest fires of the Public Forest Enterprise „Šume Herceg-Bosne“. Modified method could be a sound basis for development of methodology for assessment of the damages from forest fires and total economic valuation of forest ecosystems in Bosnia-Herzegovina.

UDK 630*68(497.6)          630*9(497.6) In order to define functional model of governing of forest resources in F B-H, as well as efficient and effective organizational model of the forest enterprises, qualitative research has been conducted for the purposes of this paper. Through direct interviewing of all key forest policy decision makers in F B-H, opinions and attitudes about these questions were collected. Based on analysis of interest groups importance as well as influence and involvement in the process of creation of the functional forest governing model in F B-H - functional governing model has been proposed with clear emphasis of advantages concerning present model. Principles of sustainable governing and management of forest resources, assurance of participative approach in the process of decision making and transparency were basis for definition of functional governing model for management of forest resources. For provision of optimal model of organization of forest sector in F B-H, it has been crucial to define ecological, sociological, economical and other criteria, that user of forest resources should respect. The optimal number of organizational units, which manage forest resource on the territory of F B-H, depends from the achievement of the established criteria and real capacities for establishment of the enterprise. This would lead to further decentralization in management of forest resources in F B-H; that would have its positive effects.

Background and purpose: Caused by appearance of new stakeholders and diversification of their interests towards forests, different forest-related conflicts emerged worldwide. As a country with economy in transition and relatively young democracy, Bosnia-Herzegovina might be suitable for understanding the roots, actors and varieties of these conflicts. This paper deals with the most frequent forest-related conflicts, main actors involved as well as undertaken actions in order to manage them in Bosnia-Herzegovina. Materials and methods: The theoretical framework is based on the Conflict Management Progress Triangle consisting of three dimensions of conflict: substance, process and relations. As particular focus in this paper is given to conflicts between forestry and wood-processing industry, the primary parties in this study were public forestry companies and wood processing companies. For the purpose of this survey a special questionnaire has been designed. The survey population included the most important actors of forest and wood-processing industry as follows: ministries of forestry, nature protection and physical planning at all levels, managers/owners of wood-processing companies, managers of public forest companies and public forest administration, representatives of the most important environmental NGOs and professional associations, managers of protected areas and water management authorities, heads of forest research institutions, economy of chambers and international institutions. In total 136 questionnaires were collected, out of which 68 respondents identified conflicts between forestry and wood-processing industry as the most important ones. Discussion and conclusions: The results show that the main causes of these conflicts are: differences in demand and supply of wood assortments, way of selling of wood assortments (including quantities and delivery dynamics) as well as wood assortments prices. As the most prominent action among the undertaken ones to manage the conflicts, the respondents underlined adoption of criteria for transparent selling of wood assortments. The results of this paper might be useful for both, public forest companies and wood-processing companies. Timely identification and implementation of possible solutions in order to overcome the most pronounced conflicts would increase competitive advantages for both sides.

UDK 630*92:519.237.8(497.6) According to FAO, the total forest area in Bosnia-Herzegovina amounts 2.709.769 ha or 53,4% of overall state territory. While the total area of private forests is 523.437 ha, private forest ownership is characterized by huge number of small-scale and fragmented individual estates. The aim of this research is to examine how the groups of private forest owners can be created with different clustering methods, regarding different criteria. The data presented in this paper are obtained from PRIFORT project (Research into the Organizations of Private Forest Owners Associations in the Western Balkan Region). Results show that private forest owners in Bosnia- Herzegovina can be grouped in three clusters by using different clustering methods, based on criteria defined in advance. Significant differences in willingness of private forest owners (PFO) to join to their interest associations are noticed for identified clusters. From forest policy aspect, the clusters gathering homogenous groups of private forest owners should be treated by different policy instruments (regulatory, economical or informational) in order to ensure better contribution of private forests to overall economical, ecological and social outcomes expected from forests as the most important natural resources in Bosnia-Herzegovina.

This paper deals with the forestry production cost analyses realised in Federation of B&H. The results of research point out on high differences of production costs between individual forest enterprises, caused by various ways of cost calculation, as well as by various production conditions. Therefore, the data obtained from enterprises are not comparable in whole, and as such, the data could not be used as the bases for calculation of an objective forestry production cost. To effect the activity based costing (e.g. activity of silviculture or forest utilization) is of particular importance. The used methodology is based on traditional costing, which is appropriate only for calculating direct costs, and not adequate to determine overhead (indirect) costs. Regarding these costing methods for calculating costs in forest enterprises, their performed forest activities are not appropriately valued. Today, as overhead costs are of considerable importance, the demand for more accurate costing methods has increased in the field of forest management. ABC (Activity Based Costing) method is a new dimension of cost analysis to record costs for each forest activities, towards objective forest management cost production determined. At the same time, it reveals the necessary costs for each activity, assures the proper layout of overhead costs to the forest activities. On the base of the defined forest activities for realization of forest management goals, as well as forest production capacities, we could understand the forest enterprises ability to achieve the goals and also to pay rent for using forest resources.