There will be no war, but such rhetoric is driving BiH to economic collapse – Sarajevo Times

the economy of Bosnia and Herzegovina (BiH) in recent years had not a stable environment, but the atmosphere has further deteriorated in recent months. The greatest consequences of the rhetoric of war and the invocation of this unfortunate concept are felt primarily by the commercial part of our society.

Link our country to the possibility of a worsening of the security situation, the outbreak of warsame on a theoretical level is particularly serious in the foreign media. It has become very common in recent months, and these articles greatly create the image of our country in the eyes of potential investors.

It is clear that economics and the rhetoric of war are concepts that can never go together, says Damir Becirovic, a thiseconomic analyst and the professor at the establishment of secondary education“International trade and ITabout the Academy » Tuzla.

“Ssecurity and predictabilityre essential for the economy.Capital is known to be a timid beast and at the slightest hint of danger, it backs off. This does not only mean the absence of an IDE (foreign over direct investment) who was weak in the pass few years, but also the “flight” of national capital, the withdrawal of depositsts, which in turn could destroy the entire financial system and lead the economy to collapse,” he noted.

Even ignoring the rhetoric of war, chronic political instability has catastrophic consequences for the economy.

“Political instability breeds uncertainty on the future, which affects the time horizon of society by reducing it. We see this clearly when it comes to authorities in Bosnia and Herzegovina who are myopic, with an increased share of current public expenditure in GDP and the absence of any vision for the future. All this implies a poor allocation of resources, where, for example, investing in research and development is an almost non-existent item and leads to a slowdown in production.growth in economic activity,” he said.

Isn’t it a fact that everyday we are witnessing the technological backwardness of our economy, but also of society as a whole, ” the asks the interlocutor.

“Without stabilizing the political situation, it is impossibleand expect productivity and revenue growth, and no fiscal policy measures ordecisions on minimum wages that were announced these days will fix that problem,” he concluded.

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