History of the Federal Development Programming Institute

In compliance with a decision of the Assembly of the National Republic of Bosnia and Herzegovina in 1946, a development planning institution was established. It was called the Planning Committee and later on it was renamed Institute for Social Planning and Economic Research of the Republic of Bosnia and Herzegovina. The Institute was in charge of planning the development of the People's, later Socialist Republic Bosnia and Herzegovina, adoption of development plans – short-term, medium-term and long-term plans – which were adopted in sessions of the Assembly of the Socialist Republic of Bosnia and Herzegovina, as well as economic policy measures, which were adopted for every year. The Economic Institute was part of the Planning Institute, however, it later on became a separate state or social institution. The Assembly of the Republic adopted the Law on Planning, which was some sort of framework for the work of the Institute. Since at the level of the former SFRY, there was a Law on Underdeveloped Republics, the Assembly of the Socialist Republic of Bosnia and Herzegovina adopted a Law on Extremely Underdeveloped Municipalities which regulated the manner of financing and development of extremely underdeveloped municipalities in the Republic through the Fund on Development of Underdeveloped Municipalities as part of the Institute for Social Planning and Economic Research (became part of the Institute in 1975). One of the fundamental tasks of the Institute was monitoring of the implementation of annual development resolutions, and the Institute consisted of several sectors – for economy, social activities, economic relations and a special sector for national defence.

Until the beginning of 1950, the economy in former Yugoslavia, and thus also in its republics and regions, was characterised by all traits of the central planning system. The planning process was conceived as an important tool for direct and centralised economy management. During the initial phase of the post-war economic development, this system had quite an impact on the increase in the accumulation rate and concentration of investments and material and human resources for the purpose of a fundamental structural transformation of economy. Later on it became clear that a centralised system cannot ensure sufficient space for initiatives and other value-based economic criteria, so that at the end of 1940s and at the beginning of 1950s, five-year (medium-term) development plans started being designed. The first five-year plan focused on the period 1947-1951, and the second on the period 1957-1961 (there was no plan for the period 1951-1956), followed by the third plan (1961-1965), then 1965-1971, followed by 1971-1976, etc. Planning and programming, with a high level of autonomy, thus became a durable and stable element of the total economic and social development in Bosnia and Herzegovina.  

In the period 1963-1971, the director of the Institute was Izet Zubović, followed by Muhamed Hadžić, and in 1971, Nikola Stojanović was appointed director (Hasan Zolić was his assistant). Mensur Smajlović was appointed acting director after Stojanović. When in 1975 the Fund for Development of Underdeveloped Municipalities in Bosnia and Herzegovina became part of the Institute of the Republic of Bosnia and Herzegovina, the director of which was Luka Reljić, Reljić was first appointed deputy director, and then he was the director of the Institute during two terms of office. Just as Reljić, Dževad Derviškadić held the same function during two terms of office, and he held this position until the first multi-party elections in Bosnia and Herzegovina in 1990, when Ibrahim Čolakhodžić was appointed the director of the Institute.

All directors of the Institute, from its establishment until the war, were members of the Government, at that time the Executive Council of the Socialist Republic of Bosnia and Herzegovina. The directors that have been selected or appointed ever since the war, have not been members of the Government, but since 1996, they have been participating in the work or sessions of the Government. The last director of the Institute that participated in the work of the Government was Ibrahim Čolakhodžić, and at that time (1994-1996), the Prime Minister of the Government of the Federation of Bosnia and Herzegovina was Haris Silajdžić. After Čolakhodžić, no director of the Institute was member of the Government and none of them participated in the work or sessions of the Government of the Federation of Bosnia and Herzegovina.

During the war, in 1993, the Institute for Social Planning and Economic Research of the Republic of Bosnia and Herzegovina was renamed State Institute for Development Planning. During the war, the Institute, just as many other institutions, basically ceased to operate.

After the Dayton Peace Agreement, in March 1996, the State Institute was abolished and the Federal Development Programming Institute was established, which became the entity institution in charge of development planning and programming.

 Immediately after the war this institution was basically without a director, and during the Government of the Prime Minister Edhem Bičakčić (1996-2001), Mirsad Hromić was appointed director and he held this position until 2002. His deputy was Ante Gavran. In 2002, when Alija Behmen was the Prime Minister, Nešet Muminagić was appointed director (Đapan Ljubiša was deputy director). During the mandate of the Prime Minister Nedžad Branković, in March 2009, Ljubiša Đapan was appointed director of the Institute and has held this position ever since.

The overall multi-decade planned economic and social development of Bosnia and Herzegovina – both as a federal unit that was part of the former state – Yugoslavia – and an independent, sovereign state – Bosnia and Herzegovina – should thus be viewed from the perspective of the very important role of the Federal Development Programming Institute (previously Institute for Social Planning and Economic Research of the Republic of Bosnia and Herzegovina) when developing five-year plans, numerous factor analyses, conditions and possibilities for development of all economic and social segments (forestry, metallurgy, textile industry, agriculture, mining, chemical industry, etc.). While preparing such documents, the basis were goals specified in long-term programmes for the development of economic and social activities in ex Yugoslavia and Bosnia and Herzegovina.

As regards important activities conducted by the Institute over the past seven years, we would outline activities related to drafting of the Law on Development Planning and Management, Development Strategy and Social Inclusion Strategy for the whole territory of Bosnia and Herzegovina in the period 2010-2014, Decision on Strategic Planning, Manual for Strategic Planning, Decision on the Manner of Preparation, Impact Assessment and Selection of Policies in the Draft Procedure for Acts Proposed and Adopted by the Government of the Federation of Bosnia and Herzegovina and Federal Ministries, Manual for the Development of Public Policies for Civil Servants in Bosnia and Herzegovina, as well as documents Non-Observed (Shadow) Economy in the Federation of Bosnia and Herzegovina and Tax Reform for the Purpose of Investments and Employment.

For the purpose of an analysis and better understanding of economic processes in the Federation of Bosnia and Herzegovina, the Institute regularly compiles an annual report on development in the Federation, which provides insight into economy and social processes in the Federation of Bosnia and Herzegovina. In addition to this document, documents on macroeconomic indicators by cantons, on socio-economic indicators by municipalities in the Federation of Bosnia and Herzegovina and documents on economic freedoms in Bosnia and Herzegovina, competitiveness of Bosnia and Herzegovina and easiness of doing business in Bosnia and Herzegovina are also compiled on an annual basis.

The Institute also regularly prepares annual work programmes for the Government of the Federation of Bosnia and Herzegovina and annual reports on the work of the Government of the Federation of Bosnia and Herzegovina, as well as work programmes of the Government of Bosnia and Herzegovina for a term of office and prepares or participates in the preparation and/or implementation of projects with numerous international institutions (UNDP, USAID, DFID, SDC, etc.).

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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