“The fact that 88% of youth want to leave the Una-Sana Canton is a clear indicator that they don’t have a good life in this country – said Jasmin Beši?, Executive Director of the Institute for Youth Development KULT during the Business Forum “Unburdening the Economy to Create Jobs”, held in Biha?, on March 7, 2018.
One of the messages from the Forum was the only way to keep youth in this country is improving the economy, making it easier to launch businesses and reducing the taxes and fees burdening business owners.
“This country and the economy can’t function without youth, because they’re the ones who generate funds for the budget and build the country. We have to do everything in our power to make it easier for them to find jobs, start their own business and create an environment they will want to live in. Youth leaving is not the problem, it’s the consequence of problems that have piled up over the years.” – said Jasmin Beši?, Executive Director of the Institute for Youth Development KULT.
The participants – business owners, government representatives, representatives of NGOs and the academia – discussed the burdens hindering the growth and development of the economy in FBiH, and in the Una-Sana Canton in particular, options for addressing them, and initiatives and activities implemented as economic reforms.
The Forum also galvanized discussions on employment and self-employment programs, especially for youth, and the opportunities and obstacles in the process of launching a business. It included a presentation of an analysis of budget incentives for boosting the economy for 2012-2015, and the initiative of BiH business owners to introduce the VAT cash accounting scheme.
“The Una-Sana Canton is making every effort to improve employment rates and the our citizens’ standard of living, especially young people’s. We implemented a series of measures, adopted a Youth Strategy of the USC, and we are willing to take steps to prevent youth from leaving, which is a burning issue in the whole country, not just this canton.” – said Husein Roši?, Prime Minister of the Government of Una-Sana Canton.
During the Forum, the participants presented examples of good practice, showcasing youth who launched and are managing their own business, and talked about problems that must be solved in order to create a more business-friendly environment.
“I launched a company and I’m fighting to stay in business. I’m disappointed that myself and other entrepreneurs don’t have the support of this country and the system. We’re not expecting financial support, but I have to say that we don’t even get advice or any benefits when launching our business.” – said Elvedin Veli?, founder of Agro Veli? d.o.o. from Velika Kladuša.
The Business Forum is intended for business owners and dedicated to issues relating to the economy. It was organized by the Institute for Youth Development KULT and the Ministry of Economy of the Una-Sana Canton.
The Business Forum was organized by the Institute for Youth Development KULT, as one of the activities of the “BH Business Site” initiative implemented by the Institute for Youth Development KULT since 2014, within the Civil Society Sustainability Project (CSSP) managed by the Centers for Civic Initiatives (CCI) and the Civil Society Promotion Center (CPCD), and supported by the United States Agency for International Development (USAID).
Previous business forums were held in Tešanj, Bijeljina, Neum and Tuzla.
The next Business Forum “Unburdening the Economy to Create Jobs” will be held on March 7, 2018 in Biha?.
The Forum, intended for business owners and dedicated to the economy, is organized by the Institute for Youth Development KULT and the Ministry of Economy of the Una-Sana Canton.
The Forum can be attended by business owners, young entrepreneurs, representatives of the government, the academic and NGO sectors and all those who believe they can help improve the BiH economy.
The goal of the forum is to discuss the burdens limiting the growth and development of the economy in FBiH, particularly in the Una-Sana Canton, how they can be addressed, the initiatives and activities intended to encourage employment and self-employment (particularly of youth) and opportunities and obstacles in launching businesses. We will identify problems limiting the growth and development of the economy in Bosnia and Herzegovina, and try to offer concrete solution.
The Forum will include a presentation of research into the allocation of budget incentives for improving the economy between 2012 and 2015, and the initiative of BiH business owners to introduce the VAT cash accounting scheme. These topics will be discussed by representatives of competent institutions, eminent experts in the field of economy, business environment and employment, owners of successful businesses and young entrepreneurs. Participants will engage in a constructive dialogue on how to improve the business environment and employment opportunities in BiH.
Applications are submitted online through http://mladi.org/myURL/1y, and the number of participants is limited. Participants whose application was accepted will be provided with the agenda at least three days before the event.
The Business Forum is organized by the Institute for Youth Development KULT, as one of the activities of the “BH Business Site” initiative implemented by the Institute for Youth Development KULT since 2014, within the Civil Society Sustainability Project (CSSP) managed by the Centers for Civic Initiatives (CCI) and the Civil Society Promotion Center (CPCD), and supported by the United States Agency for International Development (USAID).
Previous business forums were held in Tešanj, Bijeljina, Neum and Tuzla.
BY: M.Sc. Ajka Rov?anin, Institute for Youth Development KULT
The Report on Social Inclusion of BiH for 2016, published recently y the Directorate for Economic Planning of the Council of Ministers of BiH, states that employment is one of the basic conditions of social inclusion. The BiH labor market was rated as one with “high levels of inactivity, unemployment and long term unemployment” for the period spanning the past decade. There are some mildly encouraging data about a decrease in unemployment and an increase in employment in 2016 and 2017, dampened by the growing trend of employment abroad, i.e. economic migration.
The lack of work, economic and socio-cultural space results in social exclusion. Not participating on the labor marker is detrimental to an individual’s economic status and can lead to poverty and social isolation. Youth are particularly vulnerable to this. The European Union is aware of this problem, which is why their goals include addressing youth social exclusion, in addition to improving the youth employment rate, providing high-quality education, equality, and training that will allow them to participate on the labor market.
What does the BiH labor market look like though? Does it encourage youth to participate and work? Does it take into consideration all the specific features of that populations segment? Is it accessible or it just a path to other countries’ labor markets? How does a regulated labor market contribute to the sustainability, growth and development of the real sector? Unfortunately, domestic economic and demographic data shows that the BiH labor market is not youth friendly, and is becoming increasingly unfriendly to the general population as well.
The World Economic Forum developed a very interesting approach to evaluating the efficiency of the labor market, and published the data for each individual country in their annual Global Competitiveness Report, along with other 11 components of competitiveness. The efficiency of the labor market is evaluated by using 10 indicators. In 2017, BiH was ranked at 123 out of 137 countries (rated with 3.49 out of 7).
The quality of cooperation between employers and employees was rated as 3.76 out of 7, flexibility of employers in setting salary amounts was rated as high, with 5.46 out of 7. The existing regulations allow employers some flexibility in employing and firing employees (3.33). In terms of severance pay, BiH is ranked very low (123rd out of 137 countries). The ratio of salary and productivity was rated with 3.05. Current competencies of employees in management positions was rated with 2.98.
The capacity of BiH to retain highly qualified workforce is very low (1.80), which places it at the bottom of the list (135th place). The capacity to attract and select foreign highly qualified workforce is also low (1.59, i.e. 136th place). The ratio of men and women in the workforce places BiH as 109th. It is therefore clear that the labor market can be made a lot friendlier to job seekers. When it comes to salary taxes and its effect on policies intended to generate jobs, BiH is rated 2.95. These indicators discourage youth from starting their own business and employing others. With additional burdens, such as having to pay VAT by the 10th day of the month, numerous parafiscal taxes, other fees, etc.
BY: Mr.Sc. Ajka Baru?i?, Institute for Youth Development KULT
