Marat Terterov's Bosnia & Herzegovina's Business Environment (Gobal Market PDF

By Marat Terterov

Doing company with Bosnia & Herzegovina is the definitive consultant to funding possibilities and enterprise perform during this Balkan country. It offers an target evaluate of the commercial and funding weather, details on industry power in key sectors, and authoritative recommendation at the mechanics of making an investment in or doing enterprise during this hugely prompted state. even if nonetheless depending on overseas monetary reduction and UN peacekeeping forces, B&H is totally devoted to monetary reform and has started a gentle transformation to a marketplace economic system. even though the department of the economic climate among jurisdictions has made fiscal policy-making tricky, the financial system has recorded extraordinary development because the Nineteen Nineties. A significant financial institution has been arrange and a typical forex mounted to the Euro effectively introduced. For overseas traders B&H now offers a reliable and liberal surroundings for enterprise improvement and an incredible hyperlink among Western Europe and japanese Europe and the previous Yugoslavia.

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3 Bosnia and Herzegovina: The Banking System Zˇeljko Pehar, Raiffeisen Bank dd BiH Political and economic environment of the banking system The character and characteristics of the political, legal and economic system in Bosnia and Herzegovina during the 1990s derive from problems inherited from the former socio-economic environment, in particular by the longlasting war and post-war reconstruction that have caused delays in the transition processes in Bosnia and Herzegovina’s economy. Bosnia and Herzegovina is a complex state consisting of two entities: the Federation of Bosnia and Herzegovina (FBiH) and the Republic of Srpska (Republika Srpska (RS)).

Bosnia and Herzegovina: Historical and Political Background 15 Current political situation In January 2006, Bosnia began negotiations with the EU on the Stabilization and Association Agreement (SAA). Technical negotiations went well. However, one of the political criteria became the hottest political issue in Bosnia and Herzegovina, namely police reform. The transfer of police competences from the level of entities to the state level met widespread opposition in the Republic of Srpska. Its charismatic Prime Minister, Milorad Dodik, has opposed very fervently the suspension of the Ministry of Interior of the Republic of Srpska.

While Dodik favours a loose federation, Silajdzic advocates a centralized state. In 2006, there were very serious efforts to adopt a new constitution for Bosnia and Herzegovina. Silajdzic insisted on the abolishment of entity voting, which is guaranteed by the Dayton Accord. Many see the Dayton Accord as a guarantor of peace and stability in Bosnia and Herzegovina and therefore agree that entity voting, although it contains many shortcomings, should be maintained. Along these lines, the main Serbian parties and the Party for Democratic Action made an agreement on constitutional changes.

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