Economic Forum in Sarajevo: BiH must maintain currency stability, no experimenting with CBBH

The Economic Forum of Bosnia and Herzegovina opened today in Sarajevo, bringing together representatives of government, business, and academia, with the common goal of improving the economic and business environment in BiH, writes Patria.

Speakers emphasized the importance of focusing on the economy as a driver of development.

Mladen Ivanić, member of the BiH Presidency and professor at the Faculty of Economics in Banja Luka, stated that BiH has a stable currency and it is crucial for it to remain so without making "political experiments with the Central Bank of BiH".

- The ultimate consequence would be inflation and currency instability. We must not experiment with printing money, as it would lead to inflation – said Ivanić.

The EU Special Representative in BiH, Lars Gunnar Wigemark, also stated that printing money that would jeopardize currency stability is unacceptable.

During the forum, it was highlighted that changes in the public sector are needed and that the focus should be on creating an environment for investments.

- When I talk about investments, I don't just mean foreign, but also domestic. There will be no foreign investment without domestic investment and until domestic investors achieve significant profit. Only when domestic investors do this will foreign investors come – said Ivanić.

The Chairman of the Council of Ministers of BiH, Denis Zvizdić, addressed the attendees, stating that the Council of Ministers of Bosnia and Herzegovina is committed to dynamic economic development and the prosperity of our country, i.e., to efficient and sustainable management of natural and human resources with the aim of accelerating the economic development of Bosnia and Herzegovina, improving the business environment to further encourage domestic and attract foreign investors, in order to solve the key macroeconomic problem we are currently facing in a condensed period – through the creation of new jobs – and to open up prospects for young people to link their knowledge and skills, and their ambitions, to BiH.

The Forum's question is: Will the reforms in 2017 ensure a more favorable economic environment? Zvizdić stated that reforms must be implemented professionally and integrally, must be based on the best practices and the EU acquis communautaire, and must have a planned dynamic that will allow for phased adjustment and adaptation of the business community and state administration to new, more efficient, and professional standards and procedures that will be established.

- This includes, among other things, preserving macroeconomic stability, strengthening competitiveness, improving the functioning of the labor market, enhancing the business environment, and creating optimal – administrative and financial – conditions for the development of small and medium-sized enterprises and the creation of new jobs, as well as structural reforms of the education, healthcare, and pension sectors.

It is necessary to strengthen the productivity and competitiveness of the domestic economy through solutions that will lead to a reduction in tax and non-tax burdens on businesses, especially in the area of contributions, by improving the business climate, particularly in the segment of greater investment protection, by increasing labor market mobility, reducing the informal economy, as well as other forms of unfair competition.

The organizer of the forum is the Faculty of Economics at the University of Sarajevo, and the participants are representatives of the business and academic communities who, through dialogue and exchange of opinions, should arrive at quality solutions and recommendations for the economic progress of BiH.