Economic Development of the Federation BiH - Multisectoral Consultations for the Creation of the Development Strategy of the Federation BiH 2021 – 2027

Sarajevo, October 29, 2019- Today the first of four workshops was held, related to multisectoral consultations on the development plan of the Federation of BiH in the fields of economy, society, sustainable infrastructure and space, as well as good and inclusive governance. The outcome of the consultations shall be proposals for measures and priorities for the implementation of the objectives, to became a part of the Federation of BiH Development Strategy 2021-2027.

Economic development was the topic of today's workshop, the discussion was based on the analysis of the situation in the fields of industry, creative industry and smart specialization; SME development, entrepreneurship and crafts; agriculture and food production, rural development and tourism. Discussed were priorities and development goals, as well as the measures needed to achieve them.

Economic experts say that the conditions for achieving high and sustainable growth of the Federation of Bosnia and Herzegovina, based on the experience of the countries which in the post-World War II period have achieved economic miracles (average GDP growth rate of at least 7% per year for a period of at least 25 years) are:

             Improvement of intellectual and human capital (education and training, research and development),

             Involvement in the international economy (import of ideas and technology transfer on the one hand, and export of products and services on the other),

             makroekonomic stability (low budget deficit and low inflation),

             high savings and investmant rates (diversified financial institutions and instruments, foreign direct investments), and

             a determined and capable government (political stability, maintainance of contracts and property rights, etc).

The wealth of a nation lies in the minds of its people, in their innovation and creativity skills. Neither natural resources, or geographical location are not crucial as knowledge to create. The drivers of economic development of the Federation of BiH should be value chains and smart, innovative, creative and digital cities/regions. Cities/regions should recognize their leaders of the private sector development and support them with active measures, especially in the field of public and private partnerships, and thus to achieve the establishment and development of value chains, and subsequently clusters of production.

The discussion on mentioned above was led by professors Vjekoslav Domljan, Nedim Čelebić and Zdenko Klepić,  along with Mesud Ramić and Ivica Sivrić, encouraging representatives of key economic development actors (Government of the Federation of BiH, Federal and Cantonal Ministries, Chaimbers of Commerce,...) to agree and propose measures, priorities and goals of the Federation of BiH development.

FBiH in numbers

Indicator 2014 2013 2012 2011
Unemployment rate - poll 29,5 28,6 28,3 25,6
Unemployment rate - administrative 48,5 48,2 48,1 45,0
GDP in mil. KM 16.150 15.150 15.250 16.850
Inflation in % 2,0 2,5 3,6 1,2
The most developed canton in FBiH KS KS ZHK ZDK
Average net wage in FBiH 825 820 819 798
Natural increase in FBiH -580 150 -208 -350

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