Lessons from transitional economies’ failures: Why is B&H a transitional (non) success story?

Mehmed Ganic, Sahrudin Sarajcic, Sead Omerhodzic


Bosnia and Herzegovina (B&H) is faced with many challenges on its path of economic prosperity and suffers from many disappointments and setbacks of transition process. The social and economic activities have deteriorated and changed over time and B&H has passed through different political and economic changes. This paper aims to introduce the debate about the weakness of transitional model in order to explain the process of shift with the decline in production and demand, which increasingly affects the difficult socio-economic status of its citizens. The current concept of economic growth is based on consumption of private and public borrowing, as well as the increasing imports has been proven to be unsustainable. Accordingly, it provides a critical review of the effects that the current transition model left on the development of B&H. A comparative analysis of the characteristic of various important macroeconomic variables and graphical representations of the collected statistical data, on which it formulates proposals for overcoming the current situation in B&H, will be given.


transition process; macroeconomic indicators; economic development in B&H

Full Text:



Aristidis Bitzenis: The Balkans: Foreign Direct Investment and EU Accession, Ashgate Publishing Limited, Surrey, England 2009, pp. 21- 22.

Bjelić , P. (2013). New Approach in International Trade Analysis Due to to In- ternational Factor Movements, Zbornik radova Ekonomskog fakulteta Beograd, pp. 17-29.

Bošnjak, M. (2011).Rezultati i izazovi ekonomskih reformi u Srbiji u tranzicion-

om period 2001-2008 godina, Ministarstvo inansija Srbije, Beograd.

Bukvić, R. Morgentauov plan i Vašingtonski konsenzus: ima li razvojnog izlaza za zemlje u tranziciji, Zbornik Kriza i razvoj, Institut društvenih nauka, Beograd, 2010, str. 328–334.

Carlin, Wendy, John Van Reenen, and Toby Wolfe (1995). Enterprise Restructur- ing in Early Transition: the case study evidence from Central and Eastern Europe Economics of Transition, 3, pp. 427-458.

De Melo, Martha, CevdetDenizer, and Alan Gelb (1996). From Plan to Market: Patterns of Transition. World Bank, Washington, D.C.

EBRD, (2012). Integration across borders, Transition report 2012.

European Commission, (2013). Key igures on the enlargement countries, Eu- ropean Union, Eurostat. http://epp.eurostat.ec.europa.eu/portal/page/portal/eu- rostat/home/

EBRD 2013: Transition Report 2013. Stuck in Transition. London

Ganić, M. “Neoliberalizam nije pravi lijek”, Magazine Banke u BiH, 01/12/2001 Ganić, M. Liberalizam (ni)jepravorješenje, Magazine Banke u BiH, 01/03/2002

Hodžić, K. (2009), Bosankohercegovačke institucionalne

zapriječenosti rješavanja nezaposlenosti i moguće deblokade u periodu trajanja

i izlaza iz krize, Zbornik radova, Ekonomski fakultet Tuzla.

Genov, N. and Totev, S. (2001). The Development of the Balkan Region, Ash- gate Publishing Limited, Hampshire, England, p. 5

IMF (2014). Bosnia and Herzegovina: Fifth Review under the Stand-By Ar- rangement and Request for Waivers of Applicability and Extension and Augmen- tation of the Arrangement. Country Report No. 14/39

IMF, (2013), World economic outlook : Transitions and tensions, International Monetary Fund | October 2013.

Marčetić, M. and Olivera, Đ. (2012).Analiza duga R Srbije i njegove metod- ološke odrednice, Časopis za ekonomiju i tržišne komunikacije, Godina II, broj II.

McKinley , T. (2004), The Macroeconomics of Transition: The Comparative Ex- perience of Seven Transition Economies, Initiative for Policy Dialogue -Working papers, Columbia University.

World Bank / International Financial Corporation (2012). „Doing Business Re- port 2013: Smarter Regulations for Small and Medium- Size Enterprises.“2012.

Rowthorn, R. & Coutts, K. (October 2013) De-industrialisation and the balance of payments in advanced economies , Faculty of Economics, Cambridge Uni- versity.

Tomaš, R. 2013: Causes of Slow and Ineficient Transition of Economy of Bos- nia and Herzegovina. Poslovna Izvrsnost Zagreb, god.VII (2013) BR.

The World Economic Forum (WEF), The Global Competitiveness Report (2008, 2009, 2010, 2011, 2012, 2013).

World Bank, Bosna i Hercegovina od oporavka do održivog rasta, Washington

D. C., (1997.).

World Development Indicators (2013).Published by World Bank Publications.

World Bank, Washington, D.C.(2002). Transition –The First Ten Years: Analysis and Lesson or Eastern Europe and the Former Soviet Union. World Bank, Wash-

ington D.C.

DOI: http://dx.doi.org/10.21533/isjss.v1i0.3


  • There are currently no refbacks.

Copyright (c) 2015 Mehmed Ganic, Sahrudin Sarajcic, Sead Omerhodzic

Inquiry - Sarajevo Journal of Social Sciences is currently Indexed/Abstracted.