If the BiH authorities carry out the necessary reforms, citizens could soon see an improvement in living standards, said Nemat Shafik, the Deputy Director of the International Monetary Fund (IMF).
In an interview with ‘’Dnevni Avaz’’, he commented, among other things, on the current implementation of the arrangements with the IMF.
‘’The new economic program in BiH, which was passed in September, has started well. The first revision was concluded in December, and that was made possible because the government’s budget for 2013 was adopted on time. During this next period, the challenge will be to maintain this very strong dynamic of policy measure’’, said Shafik.
She said that reform of the business environment is one of the most important that BiH has to implement in the next period.
‘’The authorities need to understand that it is necessary for BiH to make the country an attractive place for investment, which would create new jobs. There is also a need for faster progress. The opening of new companies and business management should be easier. Education and training should be better aligned with the needs of the private sector. Also, it should be easier for companies to fill jobs and adjust wages according to changes in the economic environment, while still respecting the rights of workers. In many countries such reforms are created through dialogue between the government, employers and unions. During a time of economic crisis that often leads to concessions to workers in terms of wages, and in turn obliges employers to invest and create new and quality jobs in the future. It is important that this type of social dialogue, based on mutual respect, apply in BiH’’, said Shafik.
When asked by journalists whether the BiH government is strong enough to implement necessary reforms, Shafik answered:
‘’There has to be a space in which the private sector can bring growth and new jobs that are necessary in BiH. It is the same for the budget, where a space has to be created for public investment that would support growth and new jobs. In order to do this, it cannot bypass the difficult issue of reform of the pension system. The important thing is to make sure that government benefits, including pension, are geared towards the protection of people in BiH who need it the most. Authorities are aware of this challenge, but to tackle these problems, require strong cooperation and political will in BiH.
