Bosnia and Herzegovina : Investment Climate Assessment

The private enterprise sector in Bosnia and Herzegovina (BiH) has been expanding steadily, and estimates are that it presently contributes close to 50 percent of Gross Domestic Product (GDP). The BiH private enterprise sector initially developed following the privatization program starting in 1999. Under that program, the majority of state owned enterprises (SOEs) that were privatized were done so using the voucher privatization process. Under this procedure, vouchers were issued to all citizens over 18 years of age, these vouchers could be used to buy state owned properties or shares in SOEs. To promote an orderly process, privatization investment funds were created to help purchase such vouchers in exchange for citizens' shareholdings in the investment funds themselves. This process was also meant to develop the capital markets via the eventual trading of such shares. However, the process of voucher-to-share conversion, resulted in the new owners seldom having to invest their own capital in these voucher privatized enterprises. This was because the 'ownership transfer' was provided on a grant basis from the government to citizens. Because of this, new ownership became automatic, without incentives to put up additional capital to improve the businesses, leaving these enterprises performing below potential capacity. The government should consider implementing a pilot program of restructurings to attract new investor capital within a well organized framework using a methodology defined in advance. Finally, economic research shows that increased firm competitiveness, innovation, technological capability, and export potential have a strong correlation with foreign ownership.

Bibliographic Details

Main Author:	World Bank
Format:	Investment Climate Assessment (ICA) biblioteca
Language:	English en_US
Published:	Washington, DC 2008-06-10
Subjects:	ACCESS TO INFORMATION, ACCOUNTING, ACCOUNTS RECEIVABLE, ARREARS, ASSET BASE, ASSETS RATIO, AUDITS, BANK ACCOUNT, BANKING SECTOR, BANKRUPTCIES, BANKRUPTCY, BANKRUPTCY COURTS, BANKRUPTCY PROCEDURES, BARRIER, BARRIER TO ENTRY, BARRIERS TO INVESTMENT, BENEFICIARIES, BOOK MARKET, BOOK VALUE, BRANCH OFFICES, BUSINESS ENVIRONMENT, BUSINESS OPERATIONS, BUSINESS PERFORMANCE, BUSINESS REGULATIONS, BUSINESS RISK, CADASTRE, CADASTRES, CAPITAL BASE, CAPITAL GAINS, CAPITAL MARKETS, CAPITAL NEEDS, CASH FLOW, CLIENT COUNTRIES, COMMERCIAL BANK, CONTRACT ENFORCEMENT, CORPORATE GOVERNANCE, CORPORATE TAX, CORPORATE TAX RATES, CREDIT EXPANSION, CREDIT RISK, CREDITOR, CREDITOR CLAIMS, CREDITORS, CURRENCY, CURRENT ACCOUNT BALANCE, CURRENT ACCOUNT DEFICIT, DEBT LEVELS, DEBT OBLIGATIONS, DEBT RELIEF, DEBTS, DEEDS, DEFAULTERS, DEVELOPING ECONOMIES, DEVELOPMENT BANK, DISBURSEMENTS, DISPUTE RESOLUTION, DIVIDENDS, DOMESTIC DEBT, DOMESTIC INVESTORS, DUE DILIGENCE, ECONOMIC DEVELOPMENT, ECONOMIC REFORMS, ELECTRONIC SIGNATURES, EMERGING MARKETS, ENABLING ENVIRONMENT, ENTERPRISE CREDIT, ENTERPRISE PERFORMANCE, ENTERPRISE SECTOR, EQUIPMENT, EQUITY FUND, EQUITY FUNDS, EQUITY SWAPS, EXCHANGE RATE, EXISTING INFRASTRUCTURE, EXPENDITURES, EXTERNAL COMPETITIVENESS, EXTERNAL DEBT, EXTERNAL INVESTOR, EXTERNAL INVESTORS, EXTERNAL TRADE, FINANCIAL DISTRESS, FINANCIAL INFORMATION, FINANCIAL MARKETS, FINANCIAL SECTOR, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL SERVICES, FINANCIAL STATEMENT, FINANCIAL STATEMENTS, FIXED ASSETS, FOREIGN BANKS, FOREIGN DIRECT INVESTMENT, FOREIGN DIRECT INVESTMENTS, FOREIGN INVESTORS, FOREIGN MARKET, FOREIGN OWNERSHIP, FORGIVENESS, FREE TRADE, FUTURE PROSPECTS, GOVERNMENT DEBT, GOVERNMENT INVOLVEMENT, GOVERNMENT REVENUE, GOVERNMENT SUPPORT, GROSS DOMESTIC PRODUCT, HOLDING, INCOME, INCOME TAX, INDEBTEDNESS, INFLATION, INFORMAL ECONOMY, INSTITUTIONAL CAPACITIES, INSURANCE, INTERNATIONAL RESERVES, INVENTORY, INVESTMENT CLIMATE, INVESTMENT FUND, INVESTMENT FUNDS, INVESTMENT OPPORTUNITIES, INVESTMENT RATES, INVESTOR DEMAND, INVESTOR INCENTIVES, INVESTOR INTEREST, INVESTOR PARTICIPATION, ISSUANCE, JURISDICTIONS, LABOR MARKET, LABOR MARKETS, LAND OWNERSHIP, LEGAL FRAMEWORK, LEGAL FRAMEWORKS, LEVIES, LIQUIDATION, LIQUIDATIONS, LIQUIDITY, LIQUIDITY RISK, LOAN, LOCAL BANKS, LOCAL CAPITAL MARKETS, LOCAL GOVERNMENTS, MACROECONOMIC STABILITY, MARKET CONDITIONS, MARKET MECHANISMS, MARKET SHARE, MARKET VALUATIONS, MARKET VALUE, MARKET VALUES, MONETARY POLICIES, MUTUAL FUND, NONPERFORMING LOANS, OPERATIONAL EFFICIENCIES, OUTSIDE INVESTORS, PENSION, PENSION CONTRIBUTIONS, PENSION SYSTEM, PENSIONS, POLITICAL ECONOMY, PORTFOLIO, PORTFOLIO MANAGERS, POTENTIAL INVESTORS, PRIVATE INVESTMENT, PRIVATE INVESTOR, PRIVATE INVESTORS, PRIVATE SECTOR, PRIVATE SECTOR DEVELOPMENT, PRIVATE SECTOR GROWTH, PRIVATIZATION INVESTMENT, PRIVATIZATIONS, PUBLIC PENSION, PUBLIC POLICY, PUBLIC REGISTRY, RAPID GROWTH, REAL PROPERTY, RED TAPE, REFORM PROGRAM, REGISTRATION FEE, REGISTRATION LAWS, REGISTRATION PROCESS, REGISTRATION SYSTEM, REGISTRY OFFICE, REGULATORY BARRIERS, REGULATORY ENVIRONMENT, REGULATORY FRAMEWORK, REGULATORY INFRASTRUCTURE, REGULATORY REGIME, REGULATORY SYSTEM, RESERVE, RESERVES, RETURN, RETURN ON ASSETS, SAVINGS, SECURITIES, SECURITIES LAWS, SHAREHOLDER, SHAREHOLDERS, SMALL ENTERPRISES, SOLVENCY, STAMP DUTY, STATE ENTERPRISES, STOCK EXCHANGE, STOCK EXCHANGES, STOCK MARKET, STOCKS, SUSTAINABLE DEVELOPMENT, SUSTAINABLE GROWTH, TAX, TAX DEBT, TAX DEBTS, TAX POLICY, TAX RATE, TAX RATES, TRACK RECORD, TRADE BALANCE, TRADE REGIME, TRADE SECTOR, TRADING, TRADING VALUE, TRANSITION ECONOMIES, TRANSPARENCY, TRUSTEES, TURNOVER, UNEMPLOYMENT RATE, UNEMPLOYMENT RATES, UNSECURED CREDITORS, VALUATIONS, VOLATILITY, VOUCHER PRIVATIZATION, WAGE GROWTH, WAREHOUSE, WORKING CAPITAL,
Online Access:	http://documents.worldbank.org/curated/en/2008/06/10868877/bosnia-herzegovina-investment-climate-assessment http://hdl.handle.net/10986/7808
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