Tomović: BiH politicians from another planet, they ruined the economy and national relations

SARAJEVO, (Patria) - Businessman and prominent social worker Milisav Tomović spoke at a Circle 99 session about the economic collapse of BiH, especially RS, which is more dangerous than any fears of each other. Tomović touched upon the possible introduction of sanctions against RS, stating that it would have unforeseeable consequences. We present his introductory speech in its entirety.

Today we live in a chaotic world and time. It is an era of crisis of neoliberal capitalism, serious climate change, major migrations, and a crisis of democracy in which the big and powerful find it difficult to agree, and where 80% of global capital, and thus the concentration of power, is in the hands of 3% of people. The big and powerful are playing geopolitical and geostrategic games without a vision for the future development of the world, while the small and underdeveloped have no say and usually suffer.

In the current situation of the global energy crisis, which threatens a global economic crisis greater than in 2008, politicians in developed countries are trying to find ways to protect their own economies and finances, already weakened by the pandemic. What are our politicians doing during this time? They present data on economic growth and recovery, optimal debt, work on reforms, serious commitment to the path towards the EU, reducing unemployment, increasing average wages... and divert our attention, through mutual conflicts, from real life to the supposed defense of national interests.

What is the real state of our economy and finances? How many people actually live in BiH today? How many employees work in the economy that supports a huge administrative apparatus, and how many are employed in administration? How many working-age people are left in the country after emigration? How much are we indebted and for what terms? What is the concept for overcoming the current crisis? No one is providing answers to these questions. What will this new crisis bring us – we cannot even assume.

After the latest tensions, the world and the EU are also considering sanctions that would further hit the economy of BiH, and especially the economy and citizens in RS. If economic sanctions were imposed on the Republika Srpska entity, it would have unforeseeable consequences for the collapse of the already weak economy, both of RS and of the entire BiH, and would increase the emigration of the working-age population. This would only strengthen destructive forces of isolation and division, affect all peoples of this country, and lead the entire BiH into further economic and population collapse.

Even without that, according to World Bank assessments published in May this year, Bosnia and Herzegovina is in the most severe recession in the last 25 years. At the same time, due to the delay in adopting laws to prevent money laundering and terrorist financing, the country is at risk of being placed on the so-called black list of EU financial regulatory agencies, which would prevent international transactions.

Europe and the world have already stepped into a deep energy crisis due to large and unexpected shortages of energy sources. The prices of gasoline and other petroleum products are rising day by day, and with them the prices of goods and services. This will create conditions for long-term and serious inflation. This situation is complicated by the increasing pressure on national governments to accelerate the transition to cleaner energy due to climate change.

As if we live on another planet, instead of preparing for the upcoming crisis, the representatives of the peoples in BiH are having empty discussions about the election law, constitutional changes, and the protection of national interests.

Before the major economic crisis of 2008, I pointed out the upcoming negative trends several times. The current government claimed that it was not a danger, but an opportunity for the underdeveloped to recover and develop faster. I constantly warned about the consequences of excessive debt and the devastating impact of current policies on upcoming negative demographic trends in the country... Today we are facing the consequences. This energy crisis will not bypass us either, and with such governments at all levels, we are neither economically nor professionally prepared to face it.

Our problem is not just the current political instability. Such a state is irrational, and institutions are inefficient. We have a large and inefficient administrative apparatus at all levels, bribery, corruption, a lack of responsible and qualified labor, illegal competition from the black market and the gray economy, insufficient interest from the competent state, entity, and local community bodies... all that constitutes the business environment and which, instead of stubborn policies, the authorities of this country and entity should seriously address. What serious foreign investors can we expect when even conscientious and responsible domestic businessmen are struggling to survive here. What can we expect in the upcoming economic crisis?

Future policies must find ways to restore everything that the war and post-war policies have destroyed and to create a favorable overall social environment that will enable economic recovery, attract investors, and gradually bring our people back from abroad, concluded Tomović.