The administrative division of Bosnia and Herzegovina consists of two entities of equal status: the Republic of Srpska (49% of the total territory of Bosnia and Herzegovina) and the Federation of Bosnia and Herzegovina (51% of the total territory of Bosnia and Herzegovina), along with the Brčko District, which is a separate administrative unit under the sovereignty of the institutions of Bosnia and Herzegovina.

Entities, as administrative units, have a high level of autonomy and possess their own president, parliament, government, and judiciary. They have jurisdiction over civil administration, healthcare, education, police, urban planning, and many other areas, while foreign policy, defense, border control, elections, foreign trade, fiscal and monetary policies, and certain other areas fall under the jurisdiction of the state level. 

The city of Prijedor is a territorial unit of local self-government within the entity of the Republic of Srpska, inside Bosnia and Herzegovina. According to the level of development of local self-government units (LSGs) in the Republic of Srpska, the city of Prijedor is classified as a developed LSG.

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