Economic Analysts in BiH Skeptical: Government's First Employment Incentive Will Not Yield Results

Economic analysts warn that the Government's plan to subsidize first employment in the Federation of BiH will not produce the expected results, and that there are better ways to spend the 20 million KM from taxpayers, which Prime Minister Fadil Novalić announces will cost this project.

The Federal Government announced that it has approved 20 million KM to the Federal Ministry of Development, Entrepreneurship and Crafts for implementing the policy of first employment and self-employment.

Economics expert Zlatko Hurtić warned for the Bosnian news agency Patria that – according to the experiences of people who have already participated in similar projects – the procedures for obtaining these subsidies are complicated, and that it is very difficult for entrepreneurs to find adequate staff at employment bureaus.

- A very small percentage are those who, after the end of state incentives, remained in those jobs, so it is very questionable how justified the Government's method of employment incentives will be – warned Hurtić.

He believes that the funds could be better used through the formation of a guarantee fund, which would enable entrepreneurs easier and more favorable access to capital.

Hurtić: A small number of people remain in jobs after the end of Government subsidies

Economics expert and former assistant to the state Minister of Finance Fuad Kasumović also does not expect a high percentage of employment after the Government's incentives, except that some young people will get the opportunity to complete their internship exam from this project.

- Young people who do not have internship experience find it difficult to find a job, so in that part the Government's plan will make sense, but no more than that – says Kasumović for Patria. He also agrees that it would have been better if the Government had invested the money in the economy, in terms of favorable loans to entrepreneurs, but obviously, he says, there is a lack of real ideas.