In 1991, the political landscape of Yugoslavia was fracturing, leading to declarations of independence by various republics. Amid this backdrop, the Croatian population in Bosnia and Herzegovina asserted their need for a more autonomous governance structure, culminating in the formation of the Autonomous Croatian Community of Herzeg-Bosnia. This declaration was both a response to rising nationalist sentiments and a strategy to secure political representation for Croats in Bosnia, especially as they felt marginalized amidst the rapidly changing political dynamics driven by ethnic affiliations.

The leaders of this movement sought to create an administrative framework that would focus on the needs and rights of the Croat population in the region. By establishing this autonomous community, the leadership aimed to provide a counterbalance to the influence of the Bosniak and Serb populations, who also sought to establish their governance structures in the wake of the disintegration of Yugoslavia. The proclamation was seen as a foundational step towards greater autonomy, eventually leading to discussions of republic status in 1993.

The declaration was marked by significant support from the Croatian government, which was keen on expanding its influence in Bosnia and Herzegovina. This local governance structure allowed Croatian leaders to solidify power and consolidate resources, serving as a basis for future conflicts and negotiations over territory and governance during the Bosnian War. The establishment of the Autonomous Croatian Community set an important precedent for the ensuing complexities of statehood and autonomy in post-war Balkans.