Oslobođenje: The public institutions in Bosnia and Herzegovina are ponderous and inefficient, the business environment improves itself, but the economy is still in a strong growth. This is how were seen in 2008. by the European bank for Reconstruction and Development (EBRD), which will today (Thursday) in Sarajevo present the report on transition in last year which has been related to our country.
The analytics of the EBRD have given us an average grade 2.78 by applying the scale from 1 to 4.33. It can be said that we did pretty well. But, the bank thinks that this grade could and must be even better. Precondition to it, as it has been stated in report, is a continuation of constitutional reforms, which is of a vital significance for creating the more efficient country, long-lasting prosperity and social cohesion.
The banking sector has in 2007. continued its strengthening, but in the first quarter of 2008. the total profitability of banks has been reduced, while the price of financing was increased – it is a grade of the EBRD on financial sector in BiH. To the question, when speaking of this sector, what can we expect in the next period, a possible answer is that the monetary board will remain representing a vital stronghold for creating the policy, but the fiscal pressures will remain to be strong. Their solving will require political leadership and readiness for cooperation on all levels.
Despite of the fact that the quality of business environment has been improved, it is in relation to the rest of the countries in region the most problematic because of the bureaucracy and the problems during the registration of company, getting the licenses and corruption, so it all must be removed. The bank has noticed that in 2008. has come to worsening of the fiscal situation, “especially in the Federation of BiH, which has had the problems with liquidity”. Despite of the fact that there are conditions for coordinated approach to the fiscal policy, it has not been applied in total.
In the part of report on structured reforms, especially liberalization and privatization, it has been concluded that BiH has achieved the progress in strengthening the formal connections with the European Union and integration into the regional trading structures. When speaking of privatization, it still goes “slowly even though during the last year some signs of the progress in some areas have been visible”. The conclusion of this report is that a privatization of the company Aluminij from Mostar still remains at the dead point. As a reason to it the analytics claim that the agreement between the government and selected buyer around the price of long-lasting supplying by the electricity has not been achieved. The transitional outlooks and risks, as a special part of report, contain more encouragements than analyses of condition. They are generally convenient, under the condition to keep the stability in country and region.
“In the middle-lasting period there can be expected the rates of growth of approximately 6% as a result of strong activities of the private sector and continued development of small and middle companies”, is one of the grades presented here. But, at the end the analytics of the EBRD claim that BiH cannot get closer to the European integrations without creating the more efficient country.
The report will be presented in Sarajevo by the main economist of the EBRD, Peter Sanfej, and because of that fact this document and mentioned event attract the attention of the economic and academic publicity, and little less of the representatives of government, which is understandable in respect to the fact that the biggest part of critical grades goes to their consciousness.