KAKO IZ ZAMKE SREDNJEG DOHOTKA – VITALAN RACIONALNI INTERES BOSANSKOHERCEGOVAČKOG DRUŠTVA
HOW TO PULL OUT FROM THE TRAP OF MEDIUM INCOME – A VITAL RATIONAL INTEREST OF BIH SOCIETY

Author(s): Vjekoslav Domljan
Subject(s): National Economy, Labor relations, Transformation Period (1990 - 2010), Present Times (2010 - today), Socio-Economic Research
Published by: Akademija Nauka i Umjetnosti Bosne i Hercegovine
Keywords: knowledge; city-regions; reindustrialization; value chains;
Summary/Abstract: After 20 post-war years, Bosnia and Herzegovina is in the “medium income trap”. It does not want to go toward the low-income countries, as employees and citizens will not accept low wages and low living standards. At the same time, employees do not have the knowledge to produce sophisticated products, and yet only these provide high income and high salaries. Bosnia and Herzegovina is a place of bad living (dystopia). This is because there is no vision, no strategy, and no development policy. The vision should be: high income country by 2035. The strategy should be to raise the economy to the path of growth of at least 7% per year. This paper explains why it is difficult to transform the existing circulus vitiosus of BiH economy and society into a circulus virtuosis. It argues that there are no essential agents of change that are able to raise the question of vital rational interest. Vital rational interest requires the emergence of statesmen who would put knowledge, education, innovation and entrepreneurship on the agenda of politics, as key elements of reform – policy ingredients without which it is not possible to achieve high employment.

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