Why Will No One Invest in Bosnia and Herzegovina?
21 April 1999
Contents
Executive Summary
Introduction
Bosnia and Herzegovina's Economic Potential
The People
Hydroelectric Energy
Forestry and Furniture
Mineral Extraction and Processing
Food Processing
Animal Husbandry and Meat Processing
Hospitality and Tourism
The Impact of Donor Aid on the BIH Economy
Industrial Investment: only 2% of total PRP Expenditures
Sarajevo: 60 Million DM per month on living expenses alone
GDP Growth of -1%?
Foreign Investment to Date
Aluveneto
AES Cargo
Gluck Norm
Pilkington
Volkswagen
Coca-Cola
Prohigy
Plena
Meat Processing
Bosnia-Herzegovina's Economy: A Business Perspective
The Market
Infrastructure
Currencies
Commerical Banking System and Payments Bureaux
Privatisation
Business Regulations
Taxes
Judiciary
Corruption
Customs
Business Registration
Recommendations
Dismantle the Payments Bureaux
Make the Legal System Fairer to Firms
Reform Taxes
Institute Government-Business Dialogue
Create a Viable Commercial Banking System
Streamline Business Registration Procedures
Reform the Customs System and Increase Control over the Borders
Remove Barriers to Inter-Entity Trade
Proceed with Privatisation
Create a Viable Tax Administration
Conclusion