1 Title: Why is B&H stuck in the transition process and what „Compact for Growth and Jobs“ EU initiative may bring?

چکیده مقاله

Twenty years have passed since the transition process started in Bosnia and Herzegovina (B&H). However, the share of the private sector in B&H’s GDP is still very low, about 50 percent. Furthermore, B&H is one of the most difficult places to do business in Europe despite a well-educated labor force and proximity to the EU. High unemployment remains the most serious macroeconomic problem. B&H is now facing increased pressure to upgrade its economic policies. The business reform agenda remains crucial to the future economic development and the creation of private sector jobs. The economic reforms were proposed by the European Delegation in B&H. The areas needed to reform are explained in the document ‘Compact for Growth and Jobs’ that represent the base for the National Economic Reform Program. In this paper, we will describe a simple model that supports reforms in the private - business sector.

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