Guest Blogger Charge d’Affaires Nicholas M. Hill on US Embassy to Sarajevo Blog:
Last year we called on political leaders to create the pre-conditions for business investment and economic growth in Bosnia and Herzegovina. The areas we highlighted remain crucial: 1) Making Business Start-ups Simple; 2) Reducing Tax and Contribution Levels; 3) Modernizing Labor Laws; 4) Resolving Commercial Disputes Quickly; and 5) Fighting Corruption. But all too often, with political drama going on every day and the election season coming soon, it is easy to lose focus on why dealing with these business and economic issues is important – to allow the private sector to flourish and improve employment opportunities for all citizens, especially youth.
Although it is disappointing that BiH is still the most difficult place to do business in the region according to the World Bank’s Doing Business indicator, I was pleased to see recent progress in both entities to improve the business climate. Following through on this progress and on the business-friendly recommendations above has the potential to pay off in terms of new jobs and greater prosperity.
Now is the time to act. The Federation Government approved five business-focused laws which are now before the Federation Parliament for review. If passed, these laws could significantly improve the investment climate in that entity this year. And they can also unlock assistance in the form of a new World Bank Development Policy Loan. Like the Federation, the Republika Srpska has been working to implement new government programs to spur economic growth. As of September, a set of regulations to reduce expenses and simplify procedures for new company registrations came into force. Furthermore, the RS one-stop-shop for business registration became fully operational in December. Enabling online e-registration in 2014, as currently planned, will further simplify the business-registration process.
These positive steps in the Federation and the RS reflect what businesses have been asking for. Several of these improvements, if successfully implemented, would address deficiencies noted by the BiH Foreign Investors Council’s 2013/2014 White Book. We encourage leaders to focus on the real challenges faced by BiH and its citizens, particularly the economy, by passing these laws in the Federation Parliament now and continuing work to make doing business easier in the RS. BiH’s citizens literally cannot afford for their leaders to let political drama distract from what is really important – improving the economic situation, creating job opportunities, and building a more prosperous society.
(Source: US Embassy Sarajevo)
