UPFBiH – IMF: Reforms Needed to Prevent Grey Economy, Improve Labour Market

(Patria) - The only chance for the progress of Bosnia and Herzegovina is the accelerated development of the real sector, and in this regard, it is necessary to implement structural reforms as soon as possible that will improve the business environment and attract foreign investors, it was highlighted at the meeting of representatives of the Employers' Association of the Federation of Bosnia and Herzegovina with a delegation from the International Monetary Fund led by Alina Iancu, Head of the IMF Mission for BiH.

Adnan Smailbegović, President of UPFBiH, presented the key activities undertaken by the Association with the aim of reducing the burden of labour costs and improving the business environment.

“UPFBiH has timely prepared proposals for amendments to around 40 regulations aimed at improving the business environment in FBiH and BiH in general. From the new authorities at all levels, we are seeking a reduction in labour costs and the implementation of a set of measures aimed at retaining workers in BiH, as well as liberalizing the labour market. For employers, the adoption of a set of legal solutions that should contribute to the development and attraction of foreign investments in BiH is also a priority. We insist on adopting measures that will eliminate the grey market, which has become serious unfair competition for legal businesses, as a significant number of workers are employed precisely in the grey market,” Smailbegović emphasized.

He also emphasized the employers' insistence on introducing dual education in FBiH and aligning educational policy with the needs of the labour market as soon as possible.

The meeting discussed the need for reform of the health and social security system, as the common assessment is that the model applied in BiH is not good, it encourages the grey economy, obscures the picture of the labour market situation, complicates planning...

UPFBiH expects practical recommendations for the new authorities, as well as concrete support in strengthening capacities for the development of small and medium-sized enterprises and generally improving the business environment in BiH.