Government’s Key Priorities for the Improvement of the Business Environment
The FIC members underscored the key priorities that governments should set in order to improve the existing conditions for business development in BiH. As a number one priority, they stated the establishment of political stability and security. The second placed priority is to establish legal protection of investors with effective law enforcement practices that have either direct or indirect impact on the foreign investments. The third priority is to strengthen the rule of law. These results clearly justify the existence of the White Book and similar documents that point to the existing issues, along with the effective implementation, enforcement and transparent operation of the public institutions.
Recommendations for Cantons/Local Self-Government Units
94% of the surveyed companies believe that it is the most important to reduce bureaucracy at the local level and improve the efficiency of administration. 77% of investors would recommend cantons and municipalities to reduce para-fiscal charges; 58% believe that local governments should provide for qualified workforce, while 48% believe that more incentives should be introduced for investors, and 16% of them is of the opinion that additional incentives for employment should be introduced in order to attract more foreign investments into the local communities. Other recommendations are represented by 6%.
Main Reasons for the Inefficiency of the Administration
More than half of the FIC members (65%) believe that lack of qualified administration staff; bribery and corruption (61%); disharmonized regulations and procedures (58%) are top three reasons for the inefficiency of the administration in BiH. Non transparent employment is listed as the fourth reason, followed by the absence of performance evaluation of administrative staff, non-professional attitude and the lack of motivation of administrative staff.
*The figures given in the graphs above represent the mean weighted value of all responses for the given category, where ten points have been awarded if the category was designated as top priority and one point if the category was ranked as the last priority.
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