BOSNIA’S PRECARIOUS ECONOMY: Still not open for Business (ICG Balkans Report N° 115)
BOSNIA’S PRECARIOUS ECONOMY: Still not open for Business (ICG Balkans Report N° 115)

Author(s): Author Not Specified
Subject(s): National Economy, Economic policy, International relations/trade
Published by: ICG International Crisis Group
Summary/Abstract: The spurt of growth that came with post-war reconstruction is now faltering. The numbers of people unemployed and/or living in poverty are rising. Tax and customs evasion remains rife, undermining the power and legitimacy of governments whose coffers are often empty and need regular replenishment by donors. The debt caused by budget deficits is mortgaging Bosnia’s future. Smugglers and traffickers in goods and people easily and regularly violate Bosnia’s stillporous borders. The black economy remains predominant in Republika Srpska (RS), and is relatively widespread in the Federation as well. The privatisation of strategic enterprises – which should be a major engine of growth – has yet to take place. Increasing numbers of young and educated Bosnians are queuing in front of Western consulates seeking a way to a better future outside the country. Those already living abroad show no sign of returning. Three hundred and forty strikes in 2000, numerous demonstrations over the late or non-payment of pensions, and frequent roadblocks set up by dissatisfied workers testify to a deep economic crisis and simmering social unrest.

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