SARAJEVO, Dec 17 (Hina) - The international community's High Representative to Bosnia-Herzegovina on Tuesday reiterated that the country was facing a rampant economic crisis which could seriously threaten Bosnia's stability and all
efforts made so far in the implementation of the peace process.
SARAJEVO, Dec 17 (Hina) - The international community's High
Representative to Bosnia-Herzegovina on Tuesday reiterated that
the country was facing a rampant economic crisis which could
seriously threaten Bosnia's stability and all efforts made so far
in the implementation of the peace process. #L#
Paddy Ashdown, who gave a speech in the Bosnian House of
Representatives, told MPs that their country was practically on
life-support machines which he described as international
donations.
Those machines are being switched off one by one, the British
diplomat said adding that a real economic disaster was in the offing
if necessary reforms were not immediately launched.
He said that every year over a half billion euros was embezzled from
the two entity's budgets due to the non-existence of a single
customs and tax system.
Latest figures published by the statistical offices of the entities
- the Croat-Muslim federation and the Serb entity - show that in the
first ten months of this year, 5.7 billion convertible marks (about
three billion euros) flew out of the country. On the other hand
Bosnian companies managed to export goods worth only 1.5 billion
marks (EUR750 million).
Analysts assess that by the end of this year a deficit in trade could
go over seven billion marks. A wave of companies are likely to go in
the process of liquidation and this will result in an increase in
the country's unemployment.
The choice cannot be more fateful: economic reform or failure,
Ashdown warned.
He urged political parties, which won the last election, to set up
authorities at the entity and state levels as soon as possible and
start immediately carrying out measures aimed at the encouragement
of export and the simplification of conditions for foreign
investment.
The Briton said Bosnia was currently in such situation as it had
been in Hungary ten years ago and therefore he proposed the
Hungarian recipe as the best solution for the recovery of Bosnia's
society and economy.
(hina) ms sb