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The Economy of Bosnia and Herzegovina since Bosnia and Herzegovina's declaration of sovereignty in October 1991 and the declaration of independence from the former Yugoslavia on 3 March 1992.
Overview
For the most part, agriculture has been in private hands, but farms have been small and inefficient, and food has traditionally been a net import for the republic.
The centrally planned economy has resulted in some legacies in the economy. Industry is greatly overstaffed, reflecting the rigidity of the planned economy. Under Josip Broz Tito, military industries were pushed in the republic; Bosnia hosted a large share of Yugoslavia's defence plants for military reasons. Bosnia was in the center of former Yugoslavia. People throughout Bosnia and Herzegovina did not have much interest in those military installations because that was property of the JNA and all taxes and profits from those companies went to Belgrade. Two major export civilian companies in former Yugoslavia had their headquarters in a very dynamic town in that country in those times, the capital Sarajevo; 'UNIS' holding and 'Energoinvest' holding. A planned economy is an economic system in which economic decisions are made by centralized planners, who determine what sorts of goods and services to produce, and how they are to be priced and allocated. ...
Marshal Josip Broz Tito Josip Broz Tito (ЈоÑип Броз Тито) â–¶ (help· info) (May 7, (originally May 25th on the official birth certificate) 1892 – May 4, 1980) was the leader of Yugoslavia between the end of World War II and his death in 1980. ...
In the former Yugoslavia, Bosnia and Herzegovina financed many huge projects in other former Yugoslav republics. For example, the highway 'Bratstvo i jedinstvo', Ljubljana (Slovenia) - Zagreb (Croatia) - Belgrade (Serbia) - Skoplje (Macedonia). Not one single kilometer of that highway were planned or constructed in Bosnia and Herzegovina; construction of the town in Belgrade (Serbia) so-called 'New Belgrade'; Kosovo financing; the railway Belgrade - Bar in Serbia and Montenegro are all examples.
Of course during the former Yugoslavia economy was communist and was a centrally planned economy from Belgrade, without free market laws. So Bosnia and Herzegovina was mostly a donor republic in former Yugoslavia in money and other ways. The money during former Yugoslavia times went in one direction, out of Bosnia and Herzegovina, to Belgrade or sometimes to Zagreb and Ljubljana. In 1984 Bosnia and Herzegovina and the capital Sarajevo were host of the XIV Winter Olympic Games or first Olympic Games in history which were finished with profit. Communism - Wikipedia /**/ @import /w/skins-1. ...
Three years of War (1992-1995) destroyed the economy and infrastructure in Bosnia, causing unemployment to soar, as well as causing the death of about 100,000 people and displacing half of the population. This is a history of Bosnia and Herzegovina. ...
Dorothea Langes Migrant Mother depicts destitute pea pickers in California during the Great Depression. ...
Bosnia has been facing a dual challenge: not only must the nation recover from the war, but it also has to finish the transition from socialism to capitalism. Socialism is an ideology with the core belief that society should exist within an environment where not-for-profit popular collectives control the means of power, and therefore the means of production. ...
Wikiquote has a collection of quotations related to: Capitalism Capitalism has been defined in various ways. ...
With an uneasy peace in place, output recovered in 1996-98 at high percentage rates on a low base; but output growth slowed appreciably in 1999, and GDP remains far below the 1990 level.
Economic data are of limited use because, although both entities issue figures, national-level statistics are not available. Moreover, official data do not capture the large share of activity that occurs on the black market. The Grey market is a notable source of income for Bosnian traders. Political divisions of Bosnia and Herzegovina: Categories: Bosnia and Herzegovina | Politics of Bosnia and Herzegovina | Lists of subnational entities | Bosnia and Herzegovina geography stubs ...
The underground market is the part of economic activity involving illegal dealings, typically the buying and selling of merchandise illegally. ...
The grey market (in U.S. spelling, gray market) refers to the flow of goods through distribution channels other than those authorized or intended by the manufacturer or producer. ...
A Central Bank of Bosnia and Herzegovina was established in late 1997, successful debt negotiations were held with the London Club in December 1997 and with the Paris Club in October 1998, and a new currency, the Convertible Mark, was introduced in mid-1998. In 1999, the Convertible Mark gained wider acceptance, and the Central Bank dramatically increased its reserve holdings. An informal group of private creditors on the international stage. ...
The Paris Club is an informal group of financial officials from 19 of the worlds richest countries, which provides financial services such as debt restructuring, debt relief, and debt cancellation to indebted countries and their creditors. ...
A 50,00 konvertibilnih maraka (Federation of BiH) banknote A 0,50 KM (Republic of Srpska) banknote The Convertible Mark (Bonsian and Croatian: konvertibilna marka, Serbian: конвертибилна марка), (ISO 4217:BAM) is the currency of Bosnia and Herzegovina. ...
Due to Bosnia's strict currency board regime, inflation has remained low in the Federation and RS. Federation of BiH shaded red Official languages Bosnian, Croatian, Serbian Capital Sarajevo Area – Total – % water 26,110 km² n/a Population – Total (2002) – Density 2,318,972 88/km² Ethnic groups (2002) Bosniaks: 72,9% Croats: 21,8% Serbs: 4,4% and others: 1,0% President Niko LozanÄić Time...
Official language Serbian, Bosnian and Croatian Official script Cyrillic alphabet, Latin alphabet Capital de jure Sarajevo de facto Banja Luka Area – Total – % water 24,811 km² n/a Population – Total (2005) – Density 1,411,000 60/km² Ethnic groups (2005 est. ...
The country receives substantial amounts of reconstruction assistance and humanitarian aid from the international community. Support for Eastern European Democracy (SEED) assistance accounts for 20%-25% of economic growth in Bosnia. Humanitarian aid is assistance given to people in distress by individuals, organisations, or governments to relieve suffering. ...
Accumulated GDP growth for various countries. ...
However, growth has been uneven throughout the post-war period, with the Federation outpacing the RS. According to World Bank estimates, GDP growth was 62% in the Federation and 25% in the RS in 1996, 35% in the Federation and flat in the RS in 1997, and continued growth in the Federation in 1998.
After the last Serbian aggression on Bosnia and Herzegovina (1992-1995), Bosnia and Herzegovina received smaller international aid than for example Serbia and Montenegro. Sarajevo city, received also smaller international aid than Belgrade even though Sarajevo was under siege for three years. Most international aid was spend on mostly corrupt international forces (OHR, UN and aid organisations and etc.) based in Bosnia and Herzegovina. A minor part of that international aid was received by people in B&H who needed aid.
Movement has been slow, but considerable progress has been made in economic reform since peace was re-established in the republic. Banking reform lagged, as did the implementation of privatization. Many companies (mainly factories) that were privatized faced massive problems, causing the owners to reduce salaries and deny the workers their salaries. Combined with persistent inter-ethnic problems in the country, for many workers this meant that they had a useless job, getting payed perhaps after two three or even six months late only for one month, but one which they clinged on to. They don't want to leave the job because they think someone from another nationality will then get it. The privatized factories are now owned mostly by Germans and foreigners, who used webcams to monitor the workers. One example of all this is the Alloy factory in [Jajce] which produces wheels for cars, sold in Germany or other EU members. For other uses, see Bank (disambiguation). ...
Privatization (sometimes privatisation, denationalization, or, especially in India, disinvestment) is the process of transferring property, from public ownership to private ownership and/or transferring the management of a service or activity from the government to the private sector. ...
The tourism sector has been recovering and helping the economy altogether in the process, with popular winter skiing destinations as well as summer countryside tourism. An estimated 500,000 tourists visit Bosnia and Herzegovina every year and contribute much of the foreign currency in the country. Of particular note is the diaspora population which often returns home during the summer months, bringing in an increase in retail sales and food service industry. Tourist redirects here; for the album by Athlete, see Tourist (album) Tourism is the act of travel for the purpose of recreation, and the provision of services for this act. ...
Look up Diaspora in Wiktionary, the free dictionary The term diaspora (Ancient Greek διασποÏά, a scattering or sowing of seeds) is used (without capitalization) to refer to any people or ethnic population forced or induced to leave their traditional ethnic homelands; being dispersed throughout other parts of the world, and the...
Political corruption is one of the more acute problems in Bosnia and Herzegovina, and the main one that accounts for low amount of tax money used for the population, due to government inefficiency and corruption, especially at the lowest levels. In broad terms, political corruption is the misuse of public (governmental) power for illegitimate, usually secret, private advantage. ...
Bosnia has been preparing for an era of declining international assistance. Bosnia's most immediate task remains economic revitalization to create jobs and income. In order to do this the workers need to form unions and demand their payment or similar. The owners need to pay the salaries all months the full salary agreed upon. Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business. ...
The Bosnian government plans to issue an international tender for the construction of the 350 km long Corridor 5c in Bosnia and Herzegovina which will passes along the route Budapest-Osijek-Sarajevo-Ploce. The highway along this corridor is the most significant roadway in B&H and the shortest communication route between Middle Europe and the Adriatic. The routing of the road passes through the central part of the country in the North-South direction from Donji Svilaj to the border of B&H, north from the port of Ploce, following the rivers Bosna and Neretva. More than 50% of the total population and the economic activity of Bosnia and Herzegovina lies within the zone of influence along this route.
Project documentation for that highway is ready, so in January 2006, the Bosnian government will issue an international tender for construction of the highway Corridor 5C using a DBFOT system (Design, Build, Finance, Operate, Transfer). Using this system, the concessionaire secures finance, bears all business risks and upon expiration of the concession period, transfers the highway to the state of Bosnia and Herzegovina. The estimated cost for the construction of the highway is 2.5 billion EUR.
Statistical indicators From the CIA World Factbook 2004 World Factbook 2004 cover The World Factbook is an annual publication by the Central Intelligence Agency of the United States with basic almanac-style information about the various countries of the world. ...
GDP: purchasing power parity - $24.39 billion (24.39 G$) (2003 est.) The billion its equivalents in other languages refer to one of two different numbers, depending on whether the writer is using the long or short scale. ...
GDP - real growth rate: 3.8% (2003 est.)
GDP - per capita: purchasing power parity - $6,100 (2003 est.)
GDP - composition by sector:
agriculture: 13%
industry: 40.9%
services: 46.1% (2001 est.)
Population below poverty line: NA% (2003 est.)
Household income or consumption by percentage share:
lowest 10%: NA%
highest 10%: NA%
Inflation rate (consumer prices): 3.5% (2002 est.)
Labour force: 1.026 million (2001)
Labour force - by occupation: agriculture NA%, industry NA%, services NA%
Unemployment rate: 40% (2002 est.)
Budget:
revenues: $1.9 billion
expenditures: $2.2 billion, including capital expenditures of $NA (1999 est.)
Industries: steel, coal, iron ore, lead, zinc, manganese, bauxite, vehicle assembly, textiles, tobacco products, wooden furniture, tank and aircraft assembly, domestic appliances, oil refining (2001)
Industrial production growth rate: 5.5% (2003 est.)
Electricity - production: 9.979 TWh (1998)
Electricity - production by source:
fossil fuel: 53.5%
hydro: 46.5%
nuclear: 0%
other: 0% (2001)
Electricity - consumption: 8.116 TWh (2001)
Electricity - exports: 2.569 TWh (2001)
Electricity - imports: 1.405 TWh (2001)
Oil - production: 0 barrel/day (2001 est.)
Oil - consumption: 20,000 barrel/day (3,000 m³/d) 2001
Natural gas - production: 0 m³ (2001 est.)
Natural gas - consumption: 300 million m³ (2001 est.)
Natural gas - exports: 0 m³ (2001 est.)
Natural gas - imports: 300 million m³ (2001 est.)
Agriculture - products: wheat, corn, fruits, vegetables; livestock
Exports: $1.28 billion f.o.b. (2003 est.)
Exports - commodities: metals, clothing, wood products
Exports - partners: Italy 31.4%, Croatia 17.8%, Germany 13%, Austria 10%, Slovenia 7.1%, Greece 4.2% (2002)
Imports: $4.7 billion f.o.b. (2003 est.)
Imports - commodities: machinery and equipment, chemicals, fuels, foodstuffs
Imports - partners: Croatia 22.8%, Slovenia 15.3%, Germany 13.7%, Italy 12.6%, Hungary 7.6%, Austria 7.4% (2002)
Debt - external: $2.8 billion (2001)
Economic aid - recipient: $650 million (2001 est.)
Currency: 1 konvertibilna marka (KM/BAM) = 100 konvertibilnih pfenniga A 50,00 konvertibilnih maraka (Federation of BiH) banknote A 0,50 KM (Republic of Srpska) banknote The Convertible Mark (Bonsian and Croatian: konvertibilna marka, Serbian: конвертибилна марка), (ISO 4217:BAM) is the currency of Bosnia and Herzegovina. ...
The pfennig was a small German coin valued at 1/100 of a Deutsche Mark and other German currencies with the name Mark. ...
Exchange rates: convertible marks per US$1 - 1.73 (2003), 1.73 (2002), 2.19 (2001), 2.12 (2000), 1.84 (1999)
Fiscal year: calendar year
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