Bosnia and Herzegovina
Global Development Bosnia and Herzegovina at Red Yellow Blue (RYB)
Contemporary Development Of Creative Industries In Bosnia And Herzegovina
By Rahman Nurković
The article consists of three basic parts. In the first, the concept of post-socialist urban settlements and the position of creative industries in them are presented. In the second, examples of the development of creative actions of cities are given. In the third, the role of local policy in the development of new creative industries in Bosnia and Herzegovina is critically analysed, emphasising some of its shortcomings and drawing up recommendations for future policy measures. In Bosnia and Herzegovina, contemporary ideas of the development of the creative industries started to develop at the end of 2001 with the use of the technology of the developed countries of the world.
Bosnia and Herzegovina has a transitional economy with limited market reforms. The economy relies heavily on the export of metals, energy, textiles, and furniture as well as on remittances and foreign aid. A highly decentralized government hampers economic policy coordination and reform, while excessive bureaucracy and a segmented market discourage foreign investment. The economy is among the least competitive in the region. Foreign banks, primarily from Austria and Italy, control much of the banking sector, though the largest bank is a private domestic one. The konvertibilna marka (convertible mark) – the national currency introduced in 1998 – is pegged to the euro through a currency board arrangement, which has maintained confidence in the currency and has facilitated reliable trade links with European partners. Bosnia and Herzegovina became a full member of the Central European Free Trade Agreement in September 2007. In 2016, Bosnia began a three-year IMF loan program, but it has struggled to meet the economic reform benchmarks required to receive all funding installments.
Bosnia and Herzegovina’s private sector is growing slowly, but foreign investment dropped sharply after 2007 and remains low. High unemployment remains the most serious macroeconomic problem. Successful implementation of a value-added tax in 2006 provided a steady source of revenue for the government and helped rein in gray-market activity, though public perceptions of government corruption and misuse of taxpayer money has encouraged a large informal economy to persist. National-level statistics have improved over time, but a large share of economic activity remains unofficial and unrecorded.
Bosnia and Herzegovina’s top economic priorities are: acceleration of integration into the EU; strengthening the fiscal system; public administration reform; World Trade Organization membership; and securing economic growth by fostering a dynamic, competitive private sector.