By World Bank
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Extra info for Bosnia and Herzegovina: from recovery to sustainable growth
Most of them were heavily damaged during the conflict, and some have been broken into constituent enterprises. Prewar productivity of these firms was some 40-60 percent of productivity relative to Western European competitors. These firms relied on cheap labor and large-scale subsidies to compensate for their inefficiency. It is generally neither feasible nor desirable to reconstitute them to their original structures. However, in some cases, it might be feasible to initiate some up-front organizational restructuring of some constituent enterprises when that would facilitate restarting production and exports and eventual privatization.
1 Average Monthly Net Wage in Bosniac Area, Dec. 1991-Oct. 6 Tariffs for Local Calls 95 Page vii PREFACE Bosnia and Herzegovina has experienced its first year of peace and the beginnings of political, economic, and social recovery. While life is still difficult for many Bosnian families, the reconstruction effort has already borne significant fruit. Economic growth in 1996 has reached 50 percent, and unemployment, although painfully high at over 50 percent, has declined from its postwar high of 90 percent.
Donor-financed technical assistance could also be used to strengthen the policies, procedures, management, and systems of viable private and socially-owned banks. Provided adequate supervision and controls would be in place, line of credit resources could also be used. Improving the Legal, Regulatory, and Institutional Environment Improvements in the legal, regulatory, and institutional environment are essential to developing a market-based banking system and a competitive economy. These improvements include legislation establishing the State Central Bank and Entity banking supervision agencies and laying out commercial banking guidelines in both Entities.
Bosnia and Herzegovina: from recovery to sustainable growth by World Bank