For employment growth a key factor is to open new and develop existing companies. Activating potentials of diaspora, relieving the economy and restructuring state owned enterprises are among the most efficient measures for this purpose. FBiH has to focus on removing obstacles and creating opportunities for connecting with diaspora and opening new business entities with capital of diaspora.
Since the BIH economy is the least competitive in Europe, only significant relieving of the economy will bring growth of tax competitiveness, and thereby growth of total competitiveness of the economy. Relieving the economy would be done according to a neutral principle, thereby the public revenues from direct taxes based on labour contribution reduction would be compensated by taxes which do not burden the economy.
The economic growth and employment growth, which would result from reduction of salary burden, would bring significant growth of public revenues in the future. Public enterprises are one of engines for development of each economy. Micro, small and medium enterprises branch from them and in that way they contribute to economic growth through the growth of a number of private firms and sustainable operation of the existing ones. It is necessary to restructure public enterprises based on the principle of corporative management which is applied in developed countries. It is required to distance them from the influence of political parties in power and to provide them with identical conditions and manner of business operations like in private companies.
Related measures:
- Relieve the economy by reducing fiscal burden on labour,
- Encourage linking with BiH diaspora,
- Support transparency, restructuring and privatization of enterprises with an ownership share of the state.