Our country is also shaken by the economic crisis, but it seems that it is not strong enough for citizens to express rebellion through protests, let alone demand the resignation of politicians who are in power. But the truth is, a few days ago they were finally on the streets and raised their voices for the first time because of the huge inflation, low wages, and high prices of basic food and energy. But, the very next day, the streets are monotonous again, and they are quiet. The question is – why? Did they get better overnight or were they satisfied with crumbs, such as vouchers and one-off cash benefits?
The data show that the price level in May 2022, compared to the same period last year, is higher by as much as 14.4%. And that’s not all. Bosnia and Herzegovina (BiH), at least when it comes to inflation, is breaking infamous records in the region.
”Unfortunately, inflation is the highest in BiH compared to the entire region, probably because we did not have any proactive measures,” says Amila Pilav-Velic, a professor at the University of Sarajevo (UNSA), Faculty of Economics.
Instead of proactive, we got reactive measures. But not the long-lived ones. To begin with, let’s start with the Federation. Among other things, 100 BAM will be given to categories of the population that are particularly affected by inflation – pensioners, beneficiaries of veterans’ and disability protection rights, people with disabilities, and civilian victims of war. An aid package worth 500 BAM will be given to recipients of permanent and other material aid.
In the Republika Srpska (RS), too, pensioners and veterans will receive 100 BAM, they only increased the salaries of the elected. And that’s why there is dissatisfaction. Citizens say – that isn’t assistance but charity.
And, in the attack on the legal buying of elections in the RS, they did not forget about the youth either. Because – they are also the electorate. And that’s important, so they gave it to them too. Petty – 100 BAM. It seems – enough, so young people from the Federation are asking the Government for the same. For starters.
The profession says that this is not enough, just as all the previous measures are not, especially for the reason that this fall we can expect a new wave of price increases.
”We have to work on some systemic solutions, long-term sustainable solutions. First of all, I think that we must really work on increasing the minimum wage and that we must work on wage indexation. Of course, we must not ignore those who are in the office, we must not ignore pensioners, we must not forget children and women in labor,” explains Professor Pilav-Velic.
And we must not ignore employers who struggle with higher input prices. The Federation Government’s proposal that employers pay employees one-time support in the amount of the average net salary, and that in return they are exempted from paying contributions, is an additional blow to employers, says the profession.
Professor Pilav-Velic warns that it is necessary to talk about changes in the payment of taxes and contributions to salaries.
Otherwise, due to inflationary pressures, workers may be laid off. BiH is predominantly an import-oriented country, which is why it also has import inflation. And it also has enormous opportunities for its own agricultural production, which, as is known, it does not use enough. According to announcements, inflation will stabilize only at the beginning of next year. But the question is how the citizens will push through the following months and whether the politicians will leave them in the lurch – or maybe they will leave them.
