KARAKTERISTIKE POSLIJERATNOG RAZVOJA U BIH
CHARACTERISTICS OF POST-WAR DEVELOPMENT IN BIH

Summary/Abstract: Bosnia and Herzegovina possesses considerable underused development potential, including marked natural and historical advantages in certain sectors and branches of the economy, particularly agricultural production. These could be highly attractive for loans by both domestic and foreign creditors with available funds. Increased capital investment in the BiH economy would accelerate its revival and expansion, which would also be in the interests of the economies of other countries both in Europe and beyond. Economic prosperity in BiH would increase employment, encourage and accelerate the return of refugees, and halt the further brain drain of the young and qualified. This would reinforce the subjective factor of progress, accelerate socio-economic transition, and enhance productivity, general welfare and the standard of living. Within economic policy, the monetary and credit component has a major stimulative role, provided it is adequately regulated. A more rapid growth in money supply from simultaneous growth in domestic product would contribute to stable development in BiH. At the same time, however, it would have to be promptly compensated for by increased supply of new securities. This would require the additional volume of money and credit supply to be explicitly directed to the production of goods and services for which there is insufficient market demand, which in turn would require greater and better planned activity on the part of commercial banks, with the Central Bank of Bosnia and Herzegovina having a regulatory function.

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