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Local communities represent the level of Government where citizens are given the most important rights and obligations that are in the Constitution and the laws available. The aim of this study is the assessment of the economic position of the local community in the financial system of the Republic of Srpska and, accordingly, opportunities for these communities to support and improve the standard of living of its inhabitants. The analysis conducted in this paper show show significant limitations in this respect. Modification of existing models of funding local communities is essential if we want to strengthen their economic function. That attitude is based the basic hypothesis of this work. The survey is based on a more elementary and secondary methods of social science.


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