The Federation of Bosnia and Herzegovina is one of the two entities that make up the country of Bosnia and Herzegovina, the other being the Republika Srpska. Established in 1994, it was created as part of the peace agreement to end the Bosnian War. The Federation is primarily composed of Bosniaks and Croats and has its own government and administrative structure. The Federation covers about 51% of the country's territory and is divided into ten cantons, each with its own local government. The capital of the Federation is Sarajevo, which also serves as the capital of Bosnia and Herzegovina. The Federation operates under a complex political system that reflects the country's ethnic diversity.