BH Business Site

What is the BH business site like?

The unemployment rate in BiH is three times higher than the unemployment in EU member states, and five times higher when it comes to long-term unemployment. According to the data of the Agency for Statistics in BiH, the total number of unemployed persons in our country in 2013 was over 550 000. Such an unemployment rate is arguably one of the more serious problems of the society in BiH, since it exposes the population of BiH to poverty, inequality, social exclusion, psychological problems and the feeling of hopelessness, especially among youth.

The Institute for Youth Development KULT launched an initiative called “BH Business Site”, aiming to contribute to solving systemic problems in the employment sector in BiH; primarily the inadequate system for allocating budget incentives for programmes and active measures for fighting unemployment in BiH, as well as the inadequate tax collection system and high employer’s contributions which pose a burden to the economy, and present a hindrance to investments in development and creating new jobs.

Due to the volatility of the political scene and institutional instability, the social and political dialogue among key actors in the sector of labour and unemployment is lacking, causing systematic problems, instigating the growth of the unemployment rate. For precisely that reason, the primary intention of the Initiative is to provide a comprehensive, strategic approach to the employment sector in BiH, while involving a wide spectrum of actors from the business, public and civil sector, who will form into an active, functional, and regionally represented Network. Based on detailed analyses of the biggest inadequacies and problems in the area of unemployment in BiH, and the noted prioritised and burgeoning sectors of the economy, the Network’s work teams will create precise recommendations and guidelines for addressing every anomaly identified in the employment sector, and advocate the competent government institutions to adopt them.

We would like to see well founded and tailored advocacy efforts contribute to fostering a better business environment through improving the planning and allocation of economic incentives on all levels of government, followed by introducing tax reliefs for employers regarding the payment of value added tax and income tax on newly hired employees.

This project is being implemented within the Civil Society Sustainability Project in BiH, implemented by the Centres for Civil Initiatives (CCI) and the Civil Society Promotion Center (CPCD). The project is funded by the United States Agency for International Developmentand the Government of Great Britain.