Mining and mining-related activities make up the bulk of Bosnia and Herzegovina's industry. Steel production, vehicle assembly, textiles, tobacco products, wooden furniture, and domestic appliances are also important industries. Industrial capacity, largely damaged or shut down in 1995 because of the civil war, has increased. In 1998, industrial production grew an estimated 35%. Nevertheless, this figure remains lower than the pre-1992 rate, and in 2001, output stood only about half its prewar level. In the Republika Srpska, the Serb Democratic Party controls every significant production facility, government department, and state institution. Privatization began in 1999, but as of 2001, only 7 of 138 strategic enterprises had been sold. Large gains were made in the export of clothing, furniture, and leather goods in 2001. The construction sector in 2002 held promise for growth, as projects to improve infrastructure were underway.
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