BiH is rapidly losing its most valuable resource – human capital

10.07.2021. / 16:00

BANJA LUKA – The current model of development of BiH is unsustainable in the long run, especially because the country is exposed to numerous risks that may interrupt activities in the direction of greater economic growth.

FOTO: Pixabay

This is stated in the latest report “Updated system diagnostics of the country”, which was done by the World Bank in BiH.

The document points out that BiH is sensitive to natural shocks and the current coronary virus pandemic, which is the most serious social and economic challenge since the global financial crisis.

The emergence of “kovida 19” is a test for the country’s health system, while measures to stop its spread result in economic slowdowns and jeopardize the economic security of many citizens, especially those with lower incomes.“, Warn the World Bank office in BiH.

According to World Bank experts, the expected economic slowdown and with it the potential loss of jobs will lead to an increase in poverty in BiH.

Although it is not yet clear what the final impact of the pandemic will be in the country, a strong coordinated institutional response is needed to limit its spread and to ensure that the social and economic disturbances caused by the pandemic do not last long.“, The report points out.

What is even more worrying, and what the experts who did a detailed analysis of the situation in BiH point out, are the demographic trends, due to which, as they point out, urgent action is needed.

BiH is rapidly losing its most valuable resource – human capital. One third of people from BiH live abroad, and thousands leave it every year in search of a better life. As young people and entire families leave the country, the remaining population ages rapidly, and low fertility rates indicate that this trend is likely to continue.“, Warn the World Bank in BiH.

People in BiH, as they say, are very talented and hard-working workers, but, unfortunately, that potential is often realized abroad.

Emigration from BiH is the largest in the region. Among those who left, 30 percent are young. Most are emigrants from two ends of the education spectrum, more precisely those with low education and higher education. Builders, mechanics and electricians are leaving in such large numbers that their lack is already being felt. On the other hand, many leave immediately after graduation, as well as experienced professionals, especially medical staff.“, It is stated in the report, where they remind that in 2016 alone, 80,000 citizens from BiH received work permits, as well as that currently there are more than 436,000 of them in Germany and Austria.

World Bank experts in BiH also point to shortcomings in the judicial system, where, as they stated, individuals have reduced access to justice, which negatively affects the business environment.

The complex institutional and procedural framework in BiH reduces the efficiency and fairness of the judiciary. Confidence in the independence of the judiciary is low and declining, and shortcomings in the judicial system significantly increase operating costs“, They say from the World Bank in BiH.


Source: Capital.ba – Informacija je capital by www.capital.ba.

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