This report highlights deficiencies andindicates priorities for a prospective national transportstrategy and action plan for further consideration by keystakeholders. The overall objective should be thedevelopment of a transport system, and an institutionalframework, that facilitates rather than constrains, economicdevelopment in Bosnia and Herzegovina. A strong transportsystem contributes to economic growth by reducing theeconomic distance to markets by expanding opportunities fortrade, by improving the competitiveness of nationallocations for production and distribution, and byfacilitating mobility for a country s citizens; whileminimizing the social and environmental costs of thetransport sector. The report concludes by recommendingactions that aim to improve the institutional framework,improve the sustainability of the transport sector,facilitate broad based economic growth, and mitigate thesocial and environmental detriments associated withtransport. Specific policy recommendations are presented toaccomplish these conclusions.