GEOGRAFIJA I EKONOMIJA: MEĐUZAVISNOST I AUTARHIJA
GEOGRAPHY AND THE ECONOMY: NTERDEPENDENCE AND AUTARCHY

Summary/Abstract: Linking geography and the economy by means of regional market integration brings with it many advantages by enhancing the interdependence between smaller regions and reducing their tendencies to autarchy. The idea of economic integration in South-Eastern Europe is thus wholly justifiable, but achieving it will be impeded by the complex political climate and significant differences in the level of development reached by the various countries. The basic economic indicators for Bosnia and Herzegovina, such as per capital GDP, the unemployment rate, the structure of the economy, the import-export ratio and so on, are much worse than those of most transition countries, despite the considerable international aid the country has received. This is a direct result of the political partition of the country into two entities and the disintegration of the four former macro-regions. Average GDP per sq.km. is five times higher in the European Union countries than in those of the Stability Pact, which in turn is four times that of Bosnia and Herzegovina. This poses a real threat to our chances of soon becoming part of this integrative process. As a result, both assistance from the international community and also increased competitiveness on the part of Bosnia and Herzegovina’s commercial enterprises are required. Economic integration in Bosnia and Herzegovina, in the former Yugoslavia and in the South-Eastern European region as a whole can take place in parallel, even though the natural step to take is from smaller to larger regions. It is in the interest of all the new, independent states that emerged from the dissolution of Yugoslavia for the region to become more rapidly integrated economically, given their complementary resources and traditions and the absence of any language barriers.

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