PRIVATIZATION (INVESTMENT) CATASTROPHE IN BOSNIA AND HERZEGOVINA
PRIVATIZATION (INVESTMENT) CATASTROPHE IN BOSNIA AND HERZEGOVINA

Summary/Abstract: The number of empirical surveys that deal with effects of privatization is great, especially when it comes to countries in transition. General conclusion of these surveys is that, depending on the methods and specific circumstances which they are conducted in, privatization can bring significant benefits, but can also be harmful. In this paper, we analyze the specific circumstances behind the process of privatization in Bosnia and Herzegovina at the end of 1990s and the beginning of 2000s. After that, we are reviewing the effects of mass privatization through the analysis of the performances of privatization investment funds. Factors such as net worth of fund assets, movement of fund stock prices, fund activities on the stock market, etc. are analyzed in the paper. The indicators are analyzed for the period 2001 – 2016. The conclusion is that privatization investment funds did not meet expectations and role in the process of privatization. Concentration of ownership and control over fund management associations enabled an exclusive profit to the owners of fund management associations, while fund shareholders and privatized companies remained without profit.

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