Bosnia and Herzegovina : Country Economic Memorandum

This Country Economic Memorandum (CEM) takes stock of economic developments in Bosnia and Herzegovina (BH) since the end of the 1995 war, and, discusses potential sources of high, sustained growth that BH could exploit, as European Union integration advances. The report formulates policy recommendat...

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Main Author:	World Bank
Format:	Country Economic Memorandum
Language:	English en_US
Published:	Washington, DC 2012
Subjects:	ADEQUATE SAFETY NETS ADMINISTRATIVE ARRANGEMENTS ADMINISTRATIVE FRAMEWORK AGRICULTURE ANTI-COMPETITIVE PRACTICES APPAREL APPAREL INDUSTRY BANKING SUPERVISION BANKRUPTCY BANKRUPTCY LAWS BARRIERS TO ENTRY BILATERAL FREE TRADE AGREEMENTS BORDER TRADE BRAIN DRAIN BUSINESS ENVIRONMENT CAPITAL MARKETS COMMERCIAL BANKS COMPETITION POLICY COMPETITIVE MARKET COMPETITIVE MARKETS COMPETITIVE PRESSURES COMPETITIVENESS CONSENSUS CONSOLIDATION CORPORATE GOVERNANCE CORRUPTION COURT SYSTEM CPI CROWDING OUT CURRENCY CURRENT ACCOUNT CURRENT ACCOUNT BALANCE CURRENT ACCOUNT DEFICIT DEBT DECISION - MAKING DEPOSITS DEVELOPMENT STRATEGY DOMESTIC COMPETITION DOMESTIC MARKET ECONOMIC GROWTH ECONOMIC TRENDS EMPLOYMENT EMPLOYMENT GENERATION ENTERPRISE REFORM ENTERPRISE RESTRUCTURING EXCHANGE RATE EXCHANGE RATE POLICY EXCHANGE RATES EXPORT PERFORMANCE EXPORTS EXTERNAL DEBT RATIOS EXTERNAL FINANCING FINANCIAL INSTITUTIONS FINANCIAL SECTOR FISCAL FISCAL COSTS FISCAL DEFICIT FISCAL POLICY FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN RESERVES FOREIGN TRADE FORESTRY FORMAL EMPLOYMENT FREE TRADE GDP GLOBAL MARKETS GOVERNMENT INTERVENTION GOVERNMENT SECTOR GOVERNMENT SPENDING HUMAN CAPITAL HUMAN RESOURCES IMPORTS INDUSTRIAL POLICY INDUSTRIAL PRODUCTION INFLATION INFORMAL ECONOMY INFORMAL SECTOR INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL REFORMS INTEREST RATES INTERNATIONAL TRADE INTERNATIONAL TRADE POLICY INVESTMENT CLIMATE INVESTMENT SPENDING LABOR FORCE LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET INSTITUTIONS LABOR MARKET POLICIES LABOR MARKETS LABOR PRODUCTIVITY LABOR SUPPLY LEGAL SYSTEM LEGISLATION LEVEL PLAYING FIELD LIQUIDATION MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MACROECONOMIC STABILITY MARKET DISCIPLINE MARKET LIBERALIZATION MARKET SHARE MINIMUM WAGE MONETARY POLICY NATIONALS NET INFLOWS POLICY UNCERTAINTY POLITICAL APPOINTMENTS POLITICAL ECONOMY PRIVATIZATION PRODUCTIVITY PROFIT SEEKING PROFITABILITY PROPERTY RIGHTS PROTECTIONISM PROTECTIONIST POLICIES PUBLIC ADMINISTRATION PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC FINANCE PUBLIC SECTOR PUBLIC SERVICES RATIONALIZATION REAL EXCHANGE RATE REAL GDP REGULATORY FRAMEWORK RESERVE REQUIREMENTS SAVINGS SAVINGS RATES SOCIAL CAPITAL SOCIAL PROGRAMS SOFT BUDGET CONSTRAINTS STATE-OWNED ENTERPRISES TARIFF RATES TARIFF SCHEDULE TAX ADMINISTRATION TAX AUTHORITIES TAX AUTHORITY TAX RATES TAXATION TRADE DATA TRADE FACILITATION TRADE PERFORMANCE TRADE POLICIES TRADE REGIME TRANSITION ECONOMIES UNEMPLOYMENT UNEMPLOYMENT RATE UNSKILLED LABOR WAGE DISTRIBUTION WAGES WORKING CAPITAL WORLD MARKETS
Online Access:	http://documents.worldbank.org/curated/en/2005/05/6085193/bosnia-herzegovina-country-economic-memorandum http://hdl.handle.net/10986/8676

id	okr-10986-8676
recordtype	oai_dc
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ADEQUATE SAFETY NETS ADMINISTRATIVE ARRANGEMENTS ADMINISTRATIVE FRAMEWORK AGRICULTURE ANTI-COMPETITIVE PRACTICES APPAREL APPAREL INDUSTRY BANKING SUPERVISION BANKRUPTCY BANKRUPTCY LAWS BARRIERS TO ENTRY BILATERAL FREE TRADE AGREEMENTS BORDER TRADE BRAIN DRAIN BUSINESS ENVIRONMENT CAPITAL MARKETS COMMERCIAL BANKS COMPETITION POLICY COMPETITIVE MARKET COMPETITIVE MARKETS COMPETITIVE PRESSURES COMPETITIVENESS CONSENSUS CONSOLIDATION CORPORATE GOVERNANCE CORRUPTION COURT SYSTEM CPI CROWDING OUT CURRENCY CURRENT ACCOUNT CURRENT ACCOUNT BALANCE CURRENT ACCOUNT DEFICIT DEBT DECISION - MAKING DEPOSITS DEVELOPMENT STRATEGY DOMESTIC COMPETITION DOMESTIC MARKET ECONOMIC GROWTH ECONOMIC TRENDS EMPLOYMENT EMPLOYMENT GENERATION ENTERPRISE REFORM ENTERPRISE RESTRUCTURING EXCHANGE RATE EXCHANGE RATE POLICY EXCHANGE RATES EXPORT PERFORMANCE EXPORTS EXTERNAL DEBT RATIOS EXTERNAL FINANCING FINANCIAL INSTITUTIONS FINANCIAL SECTOR FISCAL FISCAL COSTS FISCAL DEFICIT FISCAL POLICY FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN RESERVES FOREIGN TRADE FORESTRY FORMAL EMPLOYMENT FREE TRADE GDP GLOBAL MARKETS GOVERNMENT INTERVENTION GOVERNMENT SECTOR GOVERNMENT SPENDING HUMAN CAPITAL HUMAN RESOURCES IMPORTS INDUSTRIAL POLICY INDUSTRIAL PRODUCTION INFLATION INFORMAL ECONOMY INFORMAL SECTOR INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL REFORMS INTEREST RATES INTERNATIONAL TRADE INTERNATIONAL TRADE POLICY INVESTMENT CLIMATE INVESTMENT SPENDING LABOR FORCE LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET INSTITUTIONS LABOR MARKET POLICIES LABOR MARKETS LABOR PRODUCTIVITY LABOR SUPPLY LEGAL SYSTEM LEGISLATION LEVEL PLAYING FIELD LIQUIDATION MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MACROECONOMIC STABILITY MARKET DISCIPLINE MARKET LIBERALIZATION MARKET SHARE MINIMUM WAGE MONETARY POLICY NATIONALS NET INFLOWS POLICY UNCERTAINTY POLITICAL APPOINTMENTS POLITICAL ECONOMY PRIVATIZATION PRODUCTIVITY PROFIT SEEKING PROFITABILITY PROPERTY RIGHTS PROTECTIONISM PROTECTIONIST POLICIES PUBLIC ADMINISTRATION PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC FINANCE PUBLIC SECTOR PUBLIC SERVICES RATIONALIZATION REAL EXCHANGE RATE REAL GDP REGULATORY FRAMEWORK RESERVE REQUIREMENTS SAVINGS SAVINGS RATES SOCIAL CAPITAL SOCIAL PROGRAMS SOFT BUDGET CONSTRAINTS STATE-OWNED ENTERPRISES TARIFF RATES TARIFF SCHEDULE TAX ADMINISTRATION TAX AUTHORITIES TAX AUTHORITY TAX RATES TAXATION TRADE DATA TRADE FACILITATION TRADE PERFORMANCE TRADE POLICIES TRADE REGIME TRANSITION ECONOMIES UNEMPLOYMENT UNEMPLOYMENT RATE UNSKILLED LABOR WAGE DISTRIBUTION WAGES WORKING CAPITAL WORLD MARKETS
spellingShingle	ADEQUATE SAFETY NETS ADMINISTRATIVE ARRANGEMENTS ADMINISTRATIVE FRAMEWORK AGRICULTURE ANTI-COMPETITIVE PRACTICES APPAREL APPAREL INDUSTRY BANKING SUPERVISION BANKRUPTCY BANKRUPTCY LAWS BARRIERS TO ENTRY BILATERAL FREE TRADE AGREEMENTS BORDER TRADE BRAIN DRAIN BUSINESS ENVIRONMENT CAPITAL MARKETS COMMERCIAL BANKS COMPETITION POLICY COMPETITIVE MARKET COMPETITIVE MARKETS COMPETITIVE PRESSURES COMPETITIVENESS CONSENSUS CONSOLIDATION CORPORATE GOVERNANCE CORRUPTION COURT SYSTEM CPI CROWDING OUT CURRENCY CURRENT ACCOUNT CURRENT ACCOUNT BALANCE CURRENT ACCOUNT DEFICIT DEBT DECISION - MAKING DEPOSITS DEVELOPMENT STRATEGY DOMESTIC COMPETITION DOMESTIC MARKET ECONOMIC GROWTH ECONOMIC TRENDS EMPLOYMENT EMPLOYMENT GENERATION ENTERPRISE REFORM ENTERPRISE RESTRUCTURING EXCHANGE RATE EXCHANGE RATE POLICY EXCHANGE RATES EXPORT PERFORMANCE EXPORTS EXTERNAL DEBT RATIOS EXTERNAL FINANCING FINANCIAL INSTITUTIONS FINANCIAL SECTOR FISCAL FISCAL COSTS FISCAL DEFICIT FISCAL POLICY FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN RESERVES FOREIGN TRADE FORESTRY FORMAL EMPLOYMENT FREE TRADE GDP GLOBAL MARKETS GOVERNMENT INTERVENTION GOVERNMENT SECTOR GOVERNMENT SPENDING HUMAN CAPITAL HUMAN RESOURCES IMPORTS INDUSTRIAL POLICY INDUSTRIAL PRODUCTION INFLATION INFORMAL ECONOMY INFORMAL SECTOR INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL REFORMS INTEREST RATES INTERNATIONAL TRADE INTERNATIONAL TRADE POLICY INVESTMENT CLIMATE INVESTMENT SPENDING LABOR FORCE LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET INSTITUTIONS LABOR MARKET POLICIES LABOR MARKETS LABOR PRODUCTIVITY LABOR SUPPLY LEGAL SYSTEM LEGISLATION LEVEL PLAYING FIELD LIQUIDATION MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MACROECONOMIC STABILITY MARKET DISCIPLINE MARKET LIBERALIZATION MARKET SHARE MINIMUM WAGE MONETARY POLICY NATIONALS NET INFLOWS POLICY UNCERTAINTY POLITICAL APPOINTMENTS POLITICAL ECONOMY PRIVATIZATION PRODUCTIVITY PROFIT SEEKING PROFITABILITY PROPERTY RIGHTS PROTECTIONISM PROTECTIONIST POLICIES PUBLIC ADMINISTRATION PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC FINANCE PUBLIC SECTOR PUBLIC SERVICES RATIONALIZATION REAL EXCHANGE RATE REAL GDP REGULATORY FRAMEWORK RESERVE REQUIREMENTS SAVINGS SAVINGS RATES SOCIAL CAPITAL SOCIAL PROGRAMS SOFT BUDGET CONSTRAINTS STATE-OWNED ENTERPRISES TARIFF RATES TARIFF SCHEDULE TAX ADMINISTRATION TAX AUTHORITIES TAX AUTHORITY TAX RATES TAXATION TRADE DATA TRADE FACILITATION TRADE PERFORMANCE TRADE POLICIES TRADE REGIME TRANSITION ECONOMIES UNEMPLOYMENT UNEMPLOYMENT RATE UNSKILLED LABOR WAGE DISTRIBUTION WAGES WORKING CAPITAL WORLD MARKETS World Bank Bosnia and Herzegovina : Country Economic Memorandum
geographic_facet	Europe and Central Asia Europe Bosnia and Herzegovina
description	This Country Economic Memorandum (CEM) takes stock of economic developments in Bosnia and Herzegovina (BH) since the end of the 1995 war, and, discusses potential sources of high, sustained growth that BH could exploit, as European Union integration advances. The report formulates policy recommendations that would help maximize the potential of the country's economy to achieve higher real GDP growth, and increased job generation. In doing so, the CEM focuses on four priority policy areas: macroeconomic management, international trade policy, business environment and enterprise reform, and, labor market policies. The report conveys the need to significantly build human capital, strengthen the institutional framework, particularly focusing on social sectors, and, develop infrastructure. Despite the country's recent macroeconomic stability, there are still uneven structural policies, and a largely unfinished agenda. The single most important macroeconomic imbalance is the persistent current account deficit. The analysis presented in this report suggests that it is the result of low domestic savings rates, rather than high investment. The rate of investment is not above the average for transition economies, whereas the share of domestic savings that can finance it is particularly low. The need for higher domestic savings raises the question of the adequacy of BH's current fiscal policy stance to serve economic growth. In the area of trade, the recent sluggish performance can hardly be attributed to a policy stance that has pursued liberalization and integration. The real constraints to a more dynamic export performance lie in the business environment and investment climate. The challenges of broad-based enterprise reforms essentially center around two main issues a) removal of structural barriers to the creation, and functioning of competitive markets; and, b) establishment of rules, procedures and related institutions that create incentives to facilitate business transactions. Challenges in the labor market are numerous: unemployment is high and rising, and, jobs being created are scarce, mainly in the informal sector. The report provides several recommendations, among which some suggest the need for changes in privatization regulations, of increased labor market flexibility, of fundamental changes in corporate ownership rules, as well as in the rules for privatization of investment funds, and most importantly, for adequate sequencing of reforms and improved governance.
format	Economic & Sector Work :: Country Economic Memorandum
author	World Bank
author_facet	World Bank
author_sort	World Bank
title	Bosnia and Herzegovina : Country Economic Memorandum
title_short	Bosnia and Herzegovina : Country Economic Memorandum
title_full	Bosnia and Herzegovina : Country Economic Memorandum
title_fullStr	Bosnia and Herzegovina : Country Economic Memorandum
title_full_unstemmed	Bosnia and Herzegovina : Country Economic Memorandum
title_sort	bosnia and herzegovina : country economic memorandum
publisher	Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2005/05/6085193/bosnia-herzegovina-country-economic-memorandum http://hdl.handle.net/10986/8676
_version_	1764405189567053824
spelling	okr-10986-86762021-04-23T14:02:39Z Bosnia and Herzegovina : Country Economic Memorandum World Bank ADEQUATE SAFETY NETS ADMINISTRATIVE ARRANGEMENTS ADMINISTRATIVE FRAMEWORK AGRICULTURE ANTI-COMPETITIVE PRACTICES APPAREL APPAREL INDUSTRY BANKING SUPERVISION BANKRUPTCY BANKRUPTCY LAWS BARRIERS TO ENTRY BILATERAL FREE TRADE AGREEMENTS BORDER TRADE BRAIN DRAIN BUSINESS ENVIRONMENT CAPITAL MARKETS COMMERCIAL BANKS COMPETITION POLICY COMPETITIVE MARKET COMPETITIVE MARKETS COMPETITIVE PRESSURES COMPETITIVENESS CONSENSUS CONSOLIDATION CORPORATE GOVERNANCE CORRUPTION COURT SYSTEM CPI CROWDING OUT CURRENCY CURRENT ACCOUNT CURRENT ACCOUNT BALANCE CURRENT ACCOUNT DEFICIT DEBT DECISION - MAKING DEPOSITS DEVELOPMENT STRATEGY DOMESTIC COMPETITION DOMESTIC MARKET ECONOMIC GROWTH ECONOMIC TRENDS EMPLOYMENT EMPLOYMENT GENERATION ENTERPRISE REFORM ENTERPRISE RESTRUCTURING EXCHANGE RATE EXCHANGE RATE POLICY EXCHANGE RATES EXPORT PERFORMANCE EXPORTS EXTERNAL DEBT RATIOS EXTERNAL FINANCING FINANCIAL INSTITUTIONS FINANCIAL SECTOR FISCAL FISCAL COSTS FISCAL DEFICIT FISCAL POLICY FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN INVESTORS FOREIGN RESERVES FOREIGN TRADE FORESTRY FORMAL EMPLOYMENT FREE TRADE GDP GLOBAL MARKETS GOVERNMENT INTERVENTION GOVERNMENT SECTOR GOVERNMENT SPENDING HUMAN CAPITAL HUMAN RESOURCES IMPORTS INDUSTRIAL POLICY INDUSTRIAL PRODUCTION INFLATION INFORMAL ECONOMY INFORMAL SECTOR INSTITUTIONAL ARRANGEMENTS INSTITUTIONAL REFORMS INTEREST RATES INTERNATIONAL TRADE INTERNATIONAL TRADE POLICY INVESTMENT CLIMATE INVESTMENT SPENDING LABOR FORCE LABOR MARKET LABOR MARKET FLEXIBILITY LABOR MARKET INSTITUTIONS LABOR MARKET POLICIES LABOR MARKETS LABOR PRODUCTIVITY LABOR SUPPLY LEGAL SYSTEM LEGISLATION LEVEL PLAYING FIELD LIQUIDATION MACROECONOMIC MANAGEMENT MACROECONOMIC POLICY MACROECONOMIC STABILITY MARKET DISCIPLINE MARKET LIBERALIZATION MARKET SHARE MINIMUM WAGE MONETARY POLICY NATIONALS NET INFLOWS POLICY UNCERTAINTY POLITICAL APPOINTMENTS POLITICAL ECONOMY PRIVATIZATION PRODUCTIVITY PROFIT SEEKING PROFITABILITY PROPERTY RIGHTS PROTECTIONISM PROTECTIONIST POLICIES PUBLIC ADMINISTRATION PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC FINANCE PUBLIC SECTOR PUBLIC SERVICES RATIONALIZATION REAL EXCHANGE RATE REAL GDP REGULATORY FRAMEWORK RESERVE REQUIREMENTS SAVINGS SAVINGS RATES SOCIAL CAPITAL SOCIAL PROGRAMS SOFT BUDGET CONSTRAINTS STATE-OWNED ENTERPRISES TARIFF RATES TARIFF SCHEDULE TAX ADMINISTRATION TAX AUTHORITIES TAX AUTHORITY TAX RATES TAXATION TRADE DATA TRADE FACILITATION TRADE PERFORMANCE TRADE POLICIES TRADE REGIME TRANSITION ECONOMIES UNEMPLOYMENT UNEMPLOYMENT RATE UNSKILLED LABOR WAGE DISTRIBUTION WAGES WORKING CAPITAL WORLD MARKETS This Country Economic Memorandum (CEM) takes stock of economic developments in Bosnia and Herzegovina (BH) since the end of the 1995 war, and, discusses potential sources of high, sustained growth that BH could exploit, as European Union integration advances. The report formulates policy recommendations that would help maximize the potential of the country's economy to achieve higher real GDP growth, and increased job generation. In doing so, the CEM focuses on four priority policy areas: macroeconomic management, international trade policy, business environment and enterprise reform, and, labor market policies. The report conveys the need to significantly build human capital, strengthen the institutional framework, particularly focusing on social sectors, and, develop infrastructure. Despite the country's recent macroeconomic stability, there are still uneven structural policies, and a largely unfinished agenda. The single most important macroeconomic imbalance is the persistent current account deficit. The analysis presented in this report suggests that it is the result of low domestic savings rates, rather than high investment. The rate of investment is not above the average for transition economies, whereas the share of domestic savings that can finance it is particularly low. The need for higher domestic savings raises the question of the adequacy of BH's current fiscal policy stance to serve economic growth. In the area of trade, the recent sluggish performance can hardly be attributed to a policy stance that has pursued liberalization and integration. The real constraints to a more dynamic export performance lie in the business environment and investment climate. The challenges of broad-based enterprise reforms essentially center around two main issues a) removal of structural barriers to the creation, and functioning of competitive markets; and, b) establishment of rules, procedures and related institutions that create incentives to facilitate business transactions. Challenges in the labor market are numerous: unemployment is high and rising, and, jobs being created are scarce, mainly in the informal sector. The report provides several recommendations, among which some suggest the need for changes in privatization regulations, of increased labor market flexibility, of fundamental changes in corporate ownership rules, as well as in the rules for privatization of investment funds, and most importantly, for adequate sequencing of reforms and improved governance. 2012-06-21T17:59:21Z 2012-06-21T17:59:21Z 2005-05 http://documents.worldbank.org/curated/en/2005/05/6085193/bosnia-herzegovina-country-economic-memorandum http://hdl.handle.net/10986/8676 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Washington, DC Economic & Sector Work :: Country Economic Memorandum Economic & Sector Work Europe and Central Asia Europe Bosnia and Herzegovina

Bosnia and Herzegovina : Country Economic Memorandum

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