Regime Change and its Influence on Bosnian Economy After the First World War
Regime Change and its Influence on Bosnian Economy After the First World War

Summary/Abstract: The dissolution of the Habsburg Empire in 1918 brought tectonic changes in Bosnian economic life. System that was created over the period of 40 years vanished, and in its place came new order that made a long-lasting impact on economic and social life. One of the most significant changes occurred in agrarian legislature, with the so-called Agrarian reform, which saw a termination of feudal relations in agriculture, although at high cost for country which oversaw this reform. Moreover, big changes happened in the ownership of industrial enterprises, because by laws enacted immediately after the war, all property of citizens and countries that (previously) waged war against Serbia in the previous war, were confiscated and nationalized. Therefore, large industrial enterprises such as Zenica Steel works, Privileged state bank, Eisler and Ortlieb wood industry and many other companies changed their owners and entered an unstable period which prevented them from working as it was intended. Another big change was a change in currency, which impoverished many citizens. After the war Austro-Hungarian Krone was changed by Serbian dinar, but conversion was conducted in manner that was favourable to dinar owners, and henceforth people who had Krone savings and entered the new state lost considerable wealth. Changes that happened and are discussed in the Paper did not open possibilities for any new development. Yugoslav period of Bosnian history was the period of economic stagnation which is easy to prove just by comparison of statistic tables. The new authorities did not have capabilities to use the long-awaited freedom for any substantial advance of economy.

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