12 10 3494 Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3444 Title A name given to the resource SOCIAL SELF-ESTEEM AND EFL Author Author Aydogan, Hakan Akbarov, Azamat Abstract A summary of the resource. This study has been an attempt to investigate the learning styles and strategies, word learning strategies and social self-esteem of students in EFL classes at Intermediate level in the Sarajevo International Colleges in Vraca and Ilıdža in Sarajevo, Bosnia-Hercegovina. For this purpose, 100 students at two colleges have been applied a questionnaire containing various vocabulary learning strategies and their learning preferences, styles and social self-esteems have been examined. SPINO instrument (PANAS - Positive and Negative Affective Schedule, SOSA scales Social Self-Esteem Scale, The Learning Style Inventory (LSI 2011), and Inventory for Vocabulary Learning Strategies were used to carry out the implementation part of our study. In order to collect the data, this study was based on a design including quantitative data analysis by using questionnaires. The study intends to describe an experience connected to the systematic use of vocabulary learning activities connected with the learning styles to enhance students’ self- esteem and thus, promote language learning. The correlations between active learning strategies, emotional states and social self-esteem have been significant and positive. In our study, it has been concluded that vocabulary learning strategies produce positive emotions and there is a positive correlation between these two variables.Positive emotions and higher social self-esteem give rise to more usage of different learning strategies. As teachers, we are in a constant search to work on the social-emotional development of students. By developing a feeling of social self-esteem in what they learn lexically, they build self-acceptance and trust through expanding their vocabulary knowledge. The content relates real life situations to their own feelings, beliefs, needs, values and experiences. It is worth mentioning the fact that the students were observed to get in touch with the positive qualities of themselves with self-esteem and introspection, learning unknown words emphasizing selfdiscovery and their own strengths concretely. The results of learning styles identification instruments showed that learning styles of students can be diagnosed quite reliably. The research proved that students can learn better when they are taught through the certain methods that reflect their specific learning styles. In this paper we are discussing the pedagogical implications of this work and offering a model for the EFL teachers to manage this field in their work. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed PE English https://omeka.ibu.edu.ba/files/original/2e3f08fa2df733c5db8714670a84f351.pdf a4579d547e3860dc15829c2df629e230 PDF Text Text Journal of Economic and Social Studies The Monetisation of Assets through Concession and Applicability in the Sector of Energy in Bosnia and Herzegovina Izet Bajrambašić Ministry of the Transport and Communication of Bosnia and Herzegovina Bosnia and Herzegovina bajrambasic.izet@bih.net.ba Abstract: Financial effects of monetisation through concession in the sector of energy in Bosnia and Herzegovina (B&H) may well increase the level of domestic investments, production, exports, employment and general economic growth, without additional higher borrowings and loss of ownership in these strategically important industries. These new financial opportunities are necessary for faster economic development of the country, especially in the transitional period, as this development process is a great challenge in modern world economy. It requires significant commitment and coordinated efforts of the public and private sector. The case study of Terminal Kakanj Power Plant (KPP) presented in this paper show that it is possible to implement monetization of assets through concession in the energy sector in B&H. Keywords: Monetization, Concession, Development, Financial Effects, Energy Sector JEL Classification: O16, H54 Article History Submitted:15 May 2015 Resubmitted:11 August 2015 Resubmitted: 23 October 2015 Accepted: 4 December 2015 http://dx.doi.org/10.14706/JECO SS16612 The empirical results provide evidence of positive correlations between monetisation through concession process and economic development in B&H or other transition and development countries. Volume 6 Number 1 Spring 2015 43 �Izet Bajrambašić Introduction Due to the lack of investment funds the economies of many countries are often in unfavorable and seemingly hopeless situations, where incomes are insufficient for necessary new investment, which slows the growth of capital and production and finally results in slowing of the income growth. Such economic situation is very difficult and depressing, and the way out of this situation is not easy and requires adequate knowledge and hard work. One of the possible way-outs is through new investments, which can change and direct a vicious circle of this situation towards the revival and development of the economy and overall society. The question is how to acquire new investments, i.e. how to ensure the necessary funds for this purpose? In this regard, the governments have an important task, especially in providing funds, which is not easy. Public infrastructure in many countries, because of their high value, may be the basis for new investments, because this potential can be exploited so that the existing resources and assets available in the network industries can provide fresh money. This can be achieved by monetization of assets through concessions. The government’s funding source of increased importance is the "monetization" or insuring the cash flow from existing public assets. Revenues made by the monetization may be used for: new infrastructure funds directly, or for other purposes. On the other hand, this process is a good opportunity for the government to gain the capacity of new technologies, increase production and exports, achieve stability in the energy system, and to avoid possible risks of worn out and technologically obsolete capacities or losses, etc. A new concession management structures, in partnership with the public sector, with an agreed concession fee, receive infrastructure to manage, which in long-term involves: investment, exploitation, maintenance, sale of services and all other that is related to the specific activity and agreement. The process of monetization has to take in account large interests of stakeholders, this is especially true for the public sector, concessionaires, financial institutions and service users. Their interests are different, but they are strongly connected to each other. The implemented project which presented in this paper (page 4.) and experiences of countries show different interests of stakeholders and main reason for 44 Journal of Economic and Social Studies �The Monetisation of Assets through Concession and Applicability in the Sector of Energy in Bosnia and Herzegovina monetization through concessions in network industries. These practical examples of projects and results of research presented in book “Achievement in Finance of Infrastructure, PFI/PPP”, Izet Bajrambasic, 2004, (chapter: “Participants and the interest of the participants in the PPP Projects”) give very clear explanation of stakeholders different interests. The interests of the public sector are: new financial resources, continuous provision of public services, faster development of infrastructure and economy, allocation of risks, safety in the delivery of public services, quality of services, market competition and others. Interests of concessionaires are: long-term investments, an increase in the volume of business, applying experience and knowledge in the field of work, protection of property and copyright, freedom of financial transfers and alike. The interests of financial institutions are: long-term borrowings, safety in money return (guarantees for the return of money) and to ensure the priorities of payments compared to other costs in the operational work of the concessionaire. The interests of service users are: to have developed network industry (infrastructure) and services, to have adequate service quality and price, to have the option of investing in these industries and alike. Interests of all stakeholders must be met, achieved and to be sustainable for a longer period of time, because it is the greatest guarantee for the success of the project. This is often politically more acceptable option than the full privatization, since the government can exercise control of public property operators, and at the end of a long-term concession contract assets are returned to public ownership. This shows that there are political, economic and financial reasons for the monetization of assets through concessions, and therefore it is important to research and study this financial instrument in B&H. According to result of the case study presented in this paper, it is clear that there are great opportunities for the application of this model in the energy sector in B&H. The study was conducted on the most complex production facility of KPP, Public Enterprise Elektroprivreda (PEEP). It is possible to apply monetization of public assets through concessions, where the government would remain the owner and the Volume 6 Number 1 Spring 2016 45 �Izet Bajrambašić concessionaire would operatively manage an independent enterprise KPP. Such an approach will greatly enhance and accelerate investment in the energy sector, while at the same time create new opportunities for the implementation of other planned investments, such as revitalization of the relevant coal mines. Literature review and experience of other countries One of the important segments of economic development is investing in infrastructure. Infrastructure of a country is understood as the fundamental service foundation of the economy, society and overall development. It is well known that, for the development of the economy, the adequate services are necessary, including transport, electric power, telecommunications, water and waste water etc. Larger investment in this sector produces higher market demand, and it implies that there is an increase in production, which enhances employment and gross domestic product. These economic relations and results are particularly significant for developing and transition countries, which in this process see a good opportunity for economic and social progress. Large number of authors in economic literature confirms the need to invest for faster economic growth, and great contribution to that is provided by international trade and free movement of capital. The capital investments depend on many factors including the accumulation and savings. The amount of capital determines the volume of domestic product and domestic product determines the amount of savings and investment. On this way domestic product determines the amount of accumulated capital (Blanchard, 2005). This cycle is very important for each economy and expected capital increase. Public infrastructure investments in network industries have large investment share and capital increase. It was pointed out that the investments are planned according to the assessment of expected cost and benefit, and that relationship, including amortization which significantly affects the level of investment. Assessing of investment, interest and risks are important factors that are taken into account, because refund depends on that. It is especially important to examine this in public investment, due to the mostly high investment volume and long-term financial burden, which is not easy for public sector. Public investments are specific and require special analysis and calculation of costs and benefits, but not for an 46 Journal of Economic and Social Studies �The Monetisation of Assets through Concession and Applicability in the Sector of Energy in Bosnia and Herzegovina individual or a small group, but for all potential users and entire society. The realization of these efforts is not simple because financial resources for these investments determine plans and possibilities. For this analysis, the state employs large teams in order to prove the need and cost effectiveness of investment (Mankiw, 2004). Government support is mostly expected in terms of new investments and ensuring the funding. The main problems arise when the accumulation is not sufficient, and credit debts are not possible or are at risk. This can be partially avoided, because it is possible to obtain funding in other ways, beside from own accumulation and no debt. One of these ways is partnership to private sector with different possibilities to invest. Financing and development of infrastructure on the basis of the Private Finance Initiative (PFI) and the Public Private Partnership (PPP) means introducing the private sector into financing and management of public services and physical infrastructure aimed to increase financial possibilities, improve the quality of public sector, develop infrastructure and introduce the business principle into the public sector. The partnership of the public and private sector in the PFI/PPP systems is, with the common interest, directed towards long-term contracts for sustainability of the relationship and the infrastructure system (Bajrambasic, 2004). Monetization of assets through concession is one of the PPP models, which is very relevant in recent years. “An increasingly important source of government financing is from the monetization, or securitization of cash from existing public assets. This is often a more politically acceptable option than outright privatization, since the government can exercise a degree of control over the asset operator, and at the end of the long-term contract the assets will revert back into public ownership. The proceeds from such transaction can be used to fund new infrastructure directly, or for other purposes” (Colchester, 2005). This is why the public sector increasingly desires private investment in public assets. A finance market is open and private investments have no restrictions and all investment forms are available: bonds, option, futures, derivatives, real estate and even fine artwork ... (Armstrong III, 2004). Relate to this large possibilities of private investment, the public sector may have to prepare an attractive project if they would like to have private investment in public infrastructure. Volume 6 Number 1 Spring 2016 47 �Izet Bajrambašić It is not easy, but practice has shown that many countries need partnerships to private sectors and monetization of assets through concession. There are many cases of this monetization model around the world. The experiences of other countries in terms of monetization through concessions in network industries are positive, and reasons and interests for these processes are various. Examples of projects in the USA and South East Europe region are listed below. • The first concession in the USA for already constructed infrastructure facility was awarded in 2005 for the Chicago Skyway Bridge, which was built in 1958. The bridge is 12 km long, and the annual number of vehicles is around 19 mils. The annual income from the collection is approximately $ 45 mils. The bridge was operated (operations and maintenance) by the City of Chicago Department of Streets and Sanitation for more than 50 years. The concession was awarded to the Sky Concession Company, LLC for 99 years, and the company paid $ 1.83 mil. In this case the government justified concession by the fact that they need funding for new infrastructure projects in Chicago, and that this was the easiest way to get fresh money. (http://www.chicagoskyway.org/) • Indiana is the first US state, which monetized the road Indiana Toll Road by collection through concession for a period of 75 years, with the offered value of $ 3.85 bn. The concession was awarded to Spanish investor Macquarie Infrastructure Group and Cintra. Analyst Richard Beales (Financial Times, 2006) claims that this example could open the door for other financial constrained countries to invite private investors to roads and bridges for resources/assets that are traditionally owned and operated by state and local governments. This is monetization through concessions of previously constructed motorways. The state of Indiana has constructed this motorway much earlier with its own funds and loans and it has already been used for a fee. The reason for such move by the government was financial problems and high maintenance costs, as a result of the infrastructure management by the state.(http://www.governing.com/topics/mgmt/indiana-toll-road-modelprivatization.html) 48 Journal of Economic and Social Studies �The Monetisation of Assets through Concession and Applicability in the Sector of Energy in Bosnia and Herzegovina • Road Alligator Alley was constructed in 1964 with two lanes, and enhanced with two more lanes, which financed from the bonds issued. The owner and operator was a state-owned company Florida DOT. Due to the high costs and financial needs, it was decided that the road will be given under concession. In this concession, revenue collection did not follow the growth of operating costs (management and maintenance) of the road, and transformation was done through the concessions, as in the case of Indiana Pay Toll. (http://inthepublicinterest.org/case/proposed-privatization-alligator-alley) • The Government of Macedonia in 2008 awarded concession to the Turkish company TepeAkfen Ventures (TAV) for two airports in Macedonia: Alexander the Great - Skopje and St. Paul -Ohrid. The concession period is over 20 years, and mandatory total investment is Euro 200 mil and the annual concession fee to the Government of Macedonia is Euro 30 to 40 mil. The government made this decision due to the need of large investments and large debts for airports. All these investments and debts were transferred to the concessionaire by the transformation.(http://www.mtc.gov.mk) • The Government of Montenegro in 2008 decided that the Port of Bar is not to be privatized but to carry out the restructuring, and that the port should be given under concession. After restructuring, concession agreements to 30 years were signed, at an annual fixed concession fee in the amount of Euro 27,500 and a variable fee of 1.5% of the annual income of the concessionaire. The essential decision of the Government is that the infrastructure remains in state ownership as a national interest, and that it can be given under concession. The Government’s stake of the operating companies can be sold as well, because it is not of the national interest. Therefore, the Government of Montenegro sold majority stake in operating companies related to the port of Bar. This project combines the privatization in the part of the operational work and monetization via concessions in the part of infrastructure. (http://www.minsaob.gov.me) • The Republic of Croatia Government in 2011 awarded concession for Zagreb Airport to the French consortium Zagreb Airport International Company (AIC) for 30 years to construct new passenger terminal and for management of existing and newly constructed terminal and associated infrastructure. Within three years’ period the ZAIC should construct a terminal for the capacity of five Volume 6 Number 1 Spring 2016 49 �Izet Bajrambašić million passengers per year, the total capital investment in the first phase amount to Euro 236 mil., with an additional Euro 88 mil for regular maintenance. (http://www.mmpi.hr) The ratio of ownership is not changed: 55% of the state, 35% of the city of Zagreb, 5% of Velika Gorica and 5% of Zagreb County. The topic of this paper is very specific and it request research methodology which covers comprehensive area and specific research parts. Research methodology of this paper is descriptive in next article. Methodology The overall aim of this study was to research applicability for the monetization of assets through concession in the energy sector in Bosnia and Herzegovina. In particular, the focus of this study is to solve the problem of finance and risk in investing in public infrastructure, and exploring the possibility to establish a new financial resource based on the existing public assets. Research methodology of this paper covers the process of the whole research activity and essentially is the core component of the research paper itself. It includes the following parts: descriptive microeconomic and investment status of the countries, generally; investment and concession approach in theory and practice; the primary and secondary data capture methods; case study of the monetization of KPP including mathematic operation (BCR, NPV, IRR, Payback method) and graphic presentation; discussion and results and conclusion with recommendations. The contents of this research process were used in order to determine the basis and assumptions for this paper and achieve the overall aim of the study. In order to provide the appropriate data, case study and analysis to evidence an acceptable solution for the current finance problem, the most appropriate methods for this paper is the data collection method and analysis including case study method. There are four main action areas recommended to cover all activities: data capture, case study, data analysis and result. Data captured from different resources: internal and external. Internal data used for this paper are from: books, laws, studies, magazines, etc. (specified on the end of this 50 Journal of Economic and Social Studies �The Monetisation of Assets through Concession and Applicability in the Sector of Energy in Bosnia and Herzegovina paper). External data used are from: business plan, annual business report, technical and finance studies, investment plan and the internet, etc. (specified on the end of this paper). Case study prepared base on technical and finance studies, published information, experience of other countries and author's knowledge and experience. Data analysis is done as narrative description and through result of the case study. The case study presented main results to achieve the overall aim of the study. Macroeconomic aspects and assumptions of the study have been described only partially to the extent necessary, and which is linked to the developing countries and transition economies. This aspect is not presented comprehensively, because it is a specific topic of the paper. The information captured on needs and financial status of these countries clearly indicates the urgency for investing, but also a great debt and significant difficulties in repaying debts. Additionally, these countries need new investment and fresh money for economic development. An analytical approach was used for the main part of the study, and an example of possible way to address these issues in B&H and other countries in the region was presented. Strategic plans for the development of the energy sector in B&H have not been agreed or operationally synchronized. However, it is known that for planned investment the accumulation of enterprises is nowhere near enough, and other forms of investing and plan implementation are considered. A key unresolved question is: which investment models should be applied and which funding sources should be used to develop production capacity. Investment programs and technical study, which are still valid, were used as the basis for new investment model, and they were prepared for the traditional method of implementation based on finance borrowing. Predicted method of implementation was faced with serious financial difficulties, and the project stalled. Besides traditional modes of investment, it is necessary to consider other known forms as well. Technical and financial data from the mentioned documents have been used to model the monetization through concessions as a basis for investment, business plans and calculation in the concession period of 30 years. Volume 6 Number 1 Spring 2016 51 �Izet Bajrambašić The presented case study is related to monetization through concession of KPP, which is belonging to the Public Enterprise Elektroprivreda B&H (PEEP). Previous business analysis and planned investments of KPP are the basis for assessing the operations in the concession period, which is analytically, with investment dynamics, presented in the following four separately business periods: 2015-2019; 2020-2026; 2027-2032 and 2033-2045. These analytical business periods are operating in continuity, varying according to the level and type of investment, and different business results. This analytical approach enables to calculate the profit and net profit, with included cost of concession fees, as well as net present value, which is essential for the analysis of concession relations between government and the concessionaire, and the evaluation of overall management transformation of KPP. Case study: Monetization of KPP KPP capacities developed in stages, based on the large deposits of coal in this area, from the initial 32 MW in1947 to 578 MW of total installed capacity, concluding with block 7 from 1988. In addition to production and selling of electricity KPP produces and sells thermal energy, slag and ash. Financial operations of KPP is not individually stated and publicly disclosed, but it is a part of overall PEEP business, which is a certain limitation for analysis. However, there is more data on the operations, such as: production volume, costs and resources of business, so it is possible to calculate the basic business elements and indicators. New investments in KPP are given in a separate document Investment Program 2010 (Technical Study). Current operations and planned investments provide the necessary data for evaluation of possibilities of KPP monetization through concession, and therefore in the continuation of the text separate analysis of these two important segments are listed. Business data of KPP Known elements of KPP business for 2010 are: total costs (207.878 mil KM i), total assets (964.630 mil KM), number of employees (663), total production (1,831 GWh) and investments (56.041milKM). Other elements of business are not known, but elements of PEEP business operations are known. 52 Journal of Economic and Social Studies �The Monetisation of Assets through Concession and Applicability in the Sector of Energy in Bosnia and Herzegovina Detailed and systemized PEEP business results from 2009 and 2010 are suitable for calculation of the missing elements of KPP business for 2010. KPP participation in electricity production in total production of PEEP can serve as a key to calculate the total revenue of KPP. The volume of PEEP production in 2009 is 6926.50 GWh, out of which KPP produced 1907.97 GWh. In 2010 PEEP production volume was 7181.40 GWh, out of which KPP produced 1831.00 GWh. Participation of KPP in total production of PEEP in 2009 is 27.55 %, and in 2010 amounts 25.50 %. Basic calculated elements of KPP business statement, as "independent company" for 2010 would be as shown in the following Table 1. Table 1: Basic calculated elements of KPP business statement Description Amount (mil KM) Total revenue 235.000 Total costs 210.590 Profit before tax 24.409 Tax 10% 2.440 Netprofit 21.968 Number of employees 663 Source: Authors’ own work and Anual Business Statement of the KPP 2009 Analysis of recent investments in KPP Significant investments in existing capacity in PEEP are completed in the previous period. PEEP has invested 1.056 million KM in the development by 2010, and planned investment for the period 2011 to 2015 is 970 million KM, and for the period 2016 to 2020.811 million KM. The first investments according to the overall KPP plan are related to the construction of Block 8, for which the preliminary Design and Environmental Study have been completed. Block 8 (300 MW) is the first block in the gradual transition to the new technology. Continuity of replacing the existing installation is planned for a longer period, so that full energy stability is achieved in 2030, with the planned installation of Block 9 (300 MW). Volume 6 Number 1 Spring 2016 53 �Izet Bajrambašić The completion of construction and commissioning of the regular operation of new block 8 in power plant Kakanj is planned (the traditional construction approach) for 2018 (Investment Program). The study envisages total investment and required work resources as well as operating costs. The total investment in fixed assets (Block 8) at constant prices amounts to 945.267 mil KM. Table 2: Business and Investment Forecast in Concession Period Description Contracted concession fee Total Profit Tax 10% Total Netprofit Total discounted value Operative capacity(MW) Operative capacity (block) 2015.-2019. - Business period (mil. KM) 2020.-2026. 2027.-2032. 140.000 130.000 Total 2033.-2045. 390.000 660.000 136.445 163.688 176.666 645.671 1.122.470 13.645 16.366 17.666 64.571 112.248 122.800 147.322 159.000 581.100 1,010.222 97.645 74.573 49.149 88.405 309.772 450 340+300 600 600 _ 5,6 and 7 6 ,7 and 8 8 and 9 8 and 9 _ Source: Authors’ own work In the first year of work required current assets amounts 20.830 mil KM. The cost of financing the investment amounts 59.948 mil KM, and total investment at constant prices is 1,035.046 mil KM. Total investment at current prices amounts to 1,106.338 mil KM. Block 9 has same price amounts (investment calculation). It is important to note the need for rehabilitation and modernization of three aforementioned mines that production and future of KPP depends on. These mines are the basis of development and operation of KPP, and it is therefore necessary to 54 Journal of Economic and Social Studies �The Monetisation of Assets through Concession and Applicability in the Sector of Energy in Bosnia and Herzegovina simultaneously invest in the mines. Investment indicators are satisfactory and the Technical Study is the basic document for making a decision on the future status and operation of KPP. Also, this document is a solid source of data for analysis of monetization possibilities through concessions. Given the large number of tables and calculations of separately periods of business and investments, below is the table presenting in the aggregate profit and net profit, with concession fees according to the calculation and capacity of KPP, for aforementioned periods of business. Discussion and Results The table shows that the aggregate net profit is 1,010.222 mil KM, and the discounted value of the net profit is 309.772 mil KM, and that the aggregate contracted installment fee is 660 mil KM, while the immediate fee of 200 mil KM is not shown in the table. In the part of compulsory investment for the concessionaire it is important to note that the last two periods of operation is shown with capacities of new technologies and that it is possible to achieve the goal of replacing old plants according to the planned schedule. Net present value according to calculation and immediate concession fee, is positive and amounts 109.772 mil KM (309.772-200.000), which is an indicator of the success and feasibility of monetization of assets through concession in KPP. The calculation of discounted value is per discount rate of 8 %. It is important to note that the costs include: operating, maintenance, costs for environmental protection measures, financing costs, a 10% tax (profit/net profit), and costs of concession fees. We have taken into consideration the conditions of IFI's, ii where the grace period is five years, the loan repayment period is 20 years and the interest rate up to 4.5 %, and it would be a financial support to the concessionaire. Operating of KPP, according to the Technical Study, shows a high amortization, which exceeds the amount of the (credit) annuity, which is important for the financial cash flow in the company. Further, the aggregate business results according to the previous table show significant net profit, as well as the discounted value. It is good financial framework for the concessionaire, which provides good possibilities for company reform, investing and making profit. The ratio of net profit and Volume 6 Number 1 Spring 2016 55 �Izet Bajrambašić contracted installment concession fees from Table 2 is important, so it is presented in the following Figure1. Figure 1: The Ratio of Net Profit and Concession Fees Source: Authors’ own work Developments in these two values in concession period (30 years) show that the fees are stable at certain periods, and that the net profit is stabilized in the last decade. Presented monetization of KPP shows that there are good assumptions for this process and that the application is possible and acceptable. The analysis shows financial and other benefits for the government and the concessionaire and achievement of a common goal, and that would be the production of electricity. Besides the benefits, each partner in this process would have to accept important responsibilities in order to make the project successful. For example, the government must take on the responsibility of modernization of mines, which are relevant for KPP and the obligation to secure supplies of coal. In this regard, the government would use contracted immediate concession fee to modernize the primary mines Kakanj, Breza and Zenica. On the other hand, the concessionaire would accept an obligation to deliver electrical energy e.g. priority for B&H. Of course, partners in this process agree on all details and sign the concession contract on monetization of KPP. 56 Journal of Economic and Social Studies �The Monetisation of Assets through Concession and Applicability in the Sector of Energy in Bosnia and Herzegovina Conclusion All defined activities of the research methodology used for this paper have been done and a final result is very clear and visible. The research results and experience of other countries shows that it is possible to monetize an existing, constructed infrastructure asset, i.e. certain capacities as an example of KPP. The research results with emphasis on KPP indicate that the energy infrastructure in B&H has great value and is mainly owned by the state and that the monetization of assets through concessions is possible. The presented case study showed that interests of all stakeholders had been met and had been achieved. It also showed that was sustainable for concession period of 30 years, because it was guaranteed by the financial success of the project. Resources and needs of B&H are great in all segments of network industries, which definitely should be used, bearing in mind that, generally, these are complex strategic industries that require special attention and sustainability of the system. It is the reason why the monetization process is much better option than privatization, because it is based on changing the management structure, but not changing of ownership as well, which remains with state (public). Monetization of assets through concessions in the strategic industries sector is possible in the economies of countries, if there are clear benefits and if such model of monetization is acceptable, with regard to the legal and business environment. In these national economies that requires significant commitment and coordinated efforts of public and private sector. Generally, exploring new financial opportunities is necessary for faster economic development of the country, especially in the transitional period, as this development process is a great challenge in the modern world economy. This monetization process is common job for the public and private sector to have a mutual interest and risks in realization of long-term contract. There are many different risks for both partners. The basic risks in this process are: political, legal, commercial, operational and maintenance risks, then income and financial risks. All the risks have to be included in the risk analysis. The risks are disadvantage of this monetization process, because each of them can make implementation problem. High quality risk management and contracting are requested for successful monetization process. Volume 6 Number 1 Spring 2016 57 �Izet Bajrambašić Recommendation: Taking into account results of this study and risks in this process it is necessary to continue exploring, preparation and implementation projects of the monetization of public assets through concessions in B&H. References Armstrong F. III, 2004, The Informed Investor, USA, American Management Association, 1601 Broadway, New York. Bajrambasic, I., 2004, Achievement in Finance of Infrastructure, PFI/PPP, Saran, Sarajevo Beales R., 2006, Financial Times, 24. January 2006 Blanchard O., 2005, Macroeconomics, 3rd edition, Mate, Zagreb Colchester, UK, 2005. Transportation Finance Review, Euromany Institutional Investor. Consortium:Economists Institute Hrvoje Požar, Institute from Banja Luka, Mining Institute from Tuzla nad Soluziona, Spain, 2008, Energy Sector Study in B&H, The World Bank. IBE d. d. Ljubljana, 2010. Feasibility Study (Investment Program), book no. 8 TKAKB8-4X/01. Knox P. J. Agnew & L. McCarthy, 2003. The Geography of the world economy, London: Hodder Arnold PFI Intelligence Bulletin 2001, London, UK. Public Enterprise Elektroprivreda BiH, 2010, Annual Business Report for 2010 and 2009. Public Private Partnerships News, 2000, Dublin, Ireland. 58 Journal of Economic and Social Studies �The Monetisation of Assets through Concession and Applicability in the Sector of Energy in Bosnia and Herzegovina RBS North American Infrastructure Advisory and Finance (Global Banking & Markets), 2006. Public Private Partnership (PPP) in North America, USA. Samuelson P.A. & Nordhaus W. D., 2007. Economy, 18th ed., Mate, Zagreb Saunders M., 2007, The Role of PPPs in Addressing Congestion, U.S. Department of Transportation Federal Highway Administration. Skypala P., 2008, Financial Times, 17. November 2008 Stiglitz J.E. & Walsh C.E., 2005, Principles of Macro-Economics, IV edition New York. The World Bank Group, 2004, Public Policy for the Private Sector. UNICITRAL, 2001, Legislative Guide on Privately Financed Infrastructure Projects, New York. http://nwfinancial.com/pdf/Indiana-Toll Roads%20Report.pdf http://scholar.lib.vt.edu/theses/available/etd-01172009-185137/unrestricted/ Final_02_10_09.pdf https://www.ferrovial.com/memoria2005/EN/08_infrastructure.html https://www.macquarie.com/dafiles/Internet/mgl/com/mqa/investor-centre/docs/mqa2012-analyst-pack.pdf?v=6 file:///C:/Users/izet.bajrambasic/Downloads/13845_GSY_BGP_Privatization%20and% 20PPP%20Review_June%202007.pdf i 1,9558 Convertible Mark (KM, ISO CODE: BAM)= 1 EUR (Currency Exchange of the Central Bank of B&H, No.092) ii International Finance Institution (WB, EIB, EBRD) Volume 6 Number 1 Spring 2016 59 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2970 Title A name given to the resource The Monetisation of Assets through Concession and Applicability in the Sector of Energy in Bosnia and Herzegovina Author Author BAJRAMBAŠIĆ, Izet Abstract A summary of the resource. Financial effects of monetisation through concession in the sector of energy in Bosnia and Herzegovina (BiH) may well increase the level of domestic investments, production, exports, employment and general economic growth, without additional higher borrowings and loss of ownership in these strategically important industries. These new financial opportunities are necessary for faster economic development of the country, especially in the transitional period, as this development process is a great challenge in modern world economy. It requires significant commitment and coordinated efforts of the public and private sector. The case study of Terminal Kakanj Power Plant (KPP) presented in this paper show that it is possible to implement monetization of assets through concession in the energy sector in BiH. The empirical results provide evidence of positive correlations between monetisation through concession process and economic development in BiHor other transition and development countries. Key words: monetization, concession, development, financial effects, energy sector. JEL classification: O–Economic Development Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Article PeerReviewed DOI Digital object identifier doi: http://dx.doi.org/10.14706/JECOSS16612 Identifier An unambiguous reference to the resource within a given context ISSN 1986 – 8502 HB Economic Theory Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3448 Title A name given to the resource THE PERFORMANCE OF NATIVE AND NON-NATIVE SPEAKERS OF ENGLISH ON A UNIVERSITY ENTRANCE EXAM (GRE) Author Author BASTUG, Harun A Ahmad, sanna Abstract A summary of the resource. College entrance exams are known to be one of the most nerve-racking steps a student has to cross for a better future. These exams measure students’ collective knowledge in different skill areas and predict what potentials they have for future performances in different fields. This study will examine the differences in performance between native and non-native speakers of English in the English section of the Graduate Record Examination (GRE). It is the one test written in English that applicants from all around the world take on the same date and with the same copy, and this study aims to help the students in their preparation to predict what their weaknesses are, and find a common ground between each category in the GRE test. The results of the research are based on the case study of students' performance in the test and will involve 60 students, 30 native and 30 non-native speakers of English. The participants will be given the same written test in order to separate the mistakes found in different linguistic categories Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed PE English https://omeka.ibu.edu.ba/files/original/d80b0f2939694a2a47bddace6cdd974b.docx fcb0d8bdb99c483f6d27cb1c033c527d https://omeka.ibu.edu.ba/files/original/630f88a1ecf98af7429b74e8c06c1ee6.pdf 2492590d0e4cb251d4b2498a66a9b276 PDF Text Text The Impact of Literature On Linguistics: ″A rabbit, an elf, and some horrorshow droogs″ Milak , Eldin and Baştuğ, Harun (2012) Abstract Main goal of the article is the establishment of common ground between two fields of language study; Linguistics and Literature, since the common links that connect these branches not only exist, but are strongly present in many areas of each field. However, they are misconstrued and underestimated, which leads to an incomplete understanding of both. We have used three main arguments, from a certain point of view, to gradually form a strong proof of the interdependency which governs the relation: contribution of Literature to the theory of Linguistics, contribution of Literature to specific branches, and contribution of Literature to Language. Using a considerate amount of written evidence, as well as exploring the history of both fields, it should be evident that the relationship which exists requires a different approach to studies. Saussure’s demarcation might be idealized, as the synchronic primacy might not uphold in the present, as everyday written records are becoming closer to the level that spoken language has in the linguistic development process. This area may require more exploration. The result might be general, and need to be specified, so that it can be used in the field of ELT, as a manner of teaching foreign languages. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3242 Title A name given to the resource The Impact of Literature On Linguistics: ″A rabbit, an elf, and some horrorshow droogs″ Author Author BASTUG, Harun MILAK, Eldin Abstract A summary of the resource. Main goal of the article is the establishment of common ground between two fields of language study; Linguistics and Literature, since the common links that connect these branches not only exist, but are strongly present in many areas of each field. However, they are misconstrued and underestimated, which leads to an incomplete understanding of both. We have used three main arguments, from a certain point of view, to gradually form a strong proof of the interdependency which governs the relation: contribution of Literature to the theory of Linguistics, contribution of Literature to specific branches, and contribution of Literature to Language. Using a considerate amount of written evidence, as well as exploring the history of both fields, it should be evident that the relationship which exists requires a different approach to studies. Saussure’s demarcation might be idealized, as the synchronic primacy might not uphold in the present, as everyday written records are becoming closer to the level that spoken language has in the linguistic development process. This area may require more exploration. The result might be general, and need to be specified, so that it can be used in the field of ELT, as a manner of teaching foreign languages. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Article PeerReviewed PE English,PR English literature Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3446 Title A name given to the resource CLASSROOM GROUP WORKS UNDER SCRUTINY: A CASE STUDY AT INTERNATIONAL BURCH UNIVERSITY, IN BOSNIA AND HERZEGOVINA Author Author BASTUG, Harun SALIHAGIC, Selma OZKAN, Ahmet Abstract A summary of the resource. In last couple of decades in contemporary societies, educators and educational institutions have required their students to participate actively and devotedly in their educational process in order to prepare them for the future employment which almost always includes team work and cooperation, Therefore, methods that include students’ cooperation and collaboration within group learning have been used increasingly in all levels of teaching and in all subjects. Nevertheless, it seems that in practice this type of learning is still encountering dependence, passivity, and even anxiety on the part of students. Thus, this paper attempts to provide an insight into students’ perspectives on these issues in the international and multicultural environment of International Burch University. Students were given the opportunity to express their own opinions through the interviews evaluated by taking into consideration key elements of cooperative learning situations (Johnson and Johnson, 1991). Thus, the purpose of this research is to indicate possible shortcomings in the implementation of group work methods applied in practice and to attract students’ attention to their importance by offering possible solutions for their overcoming. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed PE English https://omeka.ibu.edu.ba/files/original/8875d0627aff9664c2b7ed1cc29be923.docx 7b43ab9abf0fcf86fd2322a3e1d76a30 https://omeka.ibu.edu.ba/files/original/0b4897e80a2a662d4d43ec1c2c86aca4.pdf 979071c23ee9e3fbc12fc2fcaf328eff PDF Text Text Classroom Group Works Under Scrutiny: A Case Study at International Burch University Harun Bastug1 , Selma Salihagic2 and Ahmet Özkan3 ABSTRACT In the last couple of decades in contemporary societies, educators and educational institutions have required their students to participate actively and devotedly in their educational process in order to prepare them for the future employment which almost always includes team work and cooperation, Besides, methods that include students’ cooperation and collaboration within group learning have been used increasingly in all levels of teaching and in all subjects. The present study attempts to provide an insight into students’ perspectives on these issues in the international and multicultural environment of International Burch University. Students were given the opportunity to express their own opinions through the interviews evaluated by taking into consideration key elements of cooperative learning situations. The researchers have aimed to indicate possible shortcomings in the implementation of group work methods applied in practice and to attract students’ attention to their importance by offering possible solutions for their overcoming. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3240 Title A name given to the resource Classroom Group Works Under Scrutiny: A Case Study at International Burch University Author Author BASTUG, Harun SALIHAGIC, Selma OZKAN, Ahmet Abstract A summary of the resource. In the last couple of decades in contemporary societies, educators and educational institutions have required their students to participate actively and devotedly in their educational process in order to prepare them for the future employment which almost always includes team work and cooperation, Besides, methods that include students’ cooperation and collaboration within group learning have been used increasingly in all levels of teaching and in all subjects. The present study attempts to provide an insight into students’ perspectives on these issues in the international and multicultural environment of International Burch University. Students were given the opportunity to express their own opinions through the interviews evaluated by taking into consideration key elements of cooperative learning situations. The researchers have aimed to indicate possible shortcomings in the implementation of group work methods applied in practice and to attract students’ attention to their importance by offering possible solutions for their overcoming. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Article PeerReviewed PE English,PR English literature https://omeka.ibu.edu.ba/files/original/8eaa93678a504adca4f14aaa273689e4.docx 5ed69917dfe616dc39a96aa804637ae8 https://omeka.ibu.edu.ba/files/original/68b7a867daa7b8e6df54c94ea103df4b.pdf 1f1dac8c0b96900a386b9e8aeebfeb77 PDF Text Text Development of Intercultural Education through English language textbooks used in elementary schools in B&H Assist. Prof. dr. Senad Bećirović Abstract In today’s globalized world mono-cultural societies have been gradually disappearing. A trend towards the creation of multicultural societies began in 1960s. New multicultural societies were forced by the virtue of new conditions to engage themselves with others. The number of international institutions has adopted documents, which became the backbone of new education policy. Therefore, school systems worldwide began to work intensively on the promotion of intercultural values among young people. Intercultural education is most explicitly accomplished through textbook contents which encourage interaction, exchange, desegregation, interdependency and solidarity among people belonging to different cultural groups living in the same territory. Yet nowadays many multicultural nations encounter difficulties in holding together multicultural diversity and in establishing harmonious interpersonal relationships. This work deals with content analysis as one of the most frequently applied research methods in the field of education; and it is concerned with the analysis of the intercultural content in English language textbooks used in B&H in elementary schools. The main goal of this research is to determine the quantity and quality of content that point to intercultural education in the textbooks of English language used in elementary schools in the Bosnia and Herzegovina. The research involves both quantitative and qualitative analysis. We selected nine categories, important for intercultural education throughout English language textbooks: identity, cooperation and friendship, respect, tolerance, cultural relativism, stereotype, prejudice, oppression, and labeling. Results of textual analysis will offer scientific insight about the possible contributions of English language textbooks to intercultural education in B&H. This research for us is important because we believe that if multiculturalism is accepted as an asset not as a burden, with its proper utilization within the education system, multicultural nations would inevitably continue to benefit from their diversity. � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3190 Title A name given to the resource Development of Intercultural Education through English language textbooks used in elementary schools in B&H Author Author BEĆIROVIĆ, Senad Abstract A summary of the resource. In today’s globalized world mono-cultural societies have been gradually disappearing. A trend towards the creation of multicultural societies began in 1960s. New multicultural societies were forced by the virtue of new conditions to engage themselves with others. The number of international institutions has adopted documents, which became the backbone of new education policy. Therefore, school systems worldwide began to work intensively on the promotion of intercultural values among young people. Intercultural education is most explicitly accomplished through textbook contents which encourage interaction, exchange, desegregation, interdependency and solidarity among people belonging to different cultural groups living in the same territory. Yet nowadays many multicultural nations encounter difficulties in holding together multicultural diversity and in establishing harmonious interpersonal relationships. This work deals with content analysis as one of the most frequently applied research methods in the field of education; and it is concerned with the analysis of the intercultural content in English language textbooks used in B&H in elementary schools. The main goal of this research is to determine the quantity and quality of content that point to intercultural education in the textbooks of English language used in elementary schools in the Bosnia and Herzegovina. The research involves both quantitative and qualitative analysis. We selected nine categories, important for intercultural education throughout English language textbooks: identity, cooperation and friendship, respect, tolerance, cultural relativism, stereotype, prejudice, oppression, and labeling. Results of textual analysis will offer scientific insight about the possible contributions of English language textbooks to intercultural education in B&H. This research for us is important because we believe that if multiculturalism is accepted as an asset not as a burden, with its proper utilization within the education system, multicultural nations would inevitably continue to benefit from their diversity. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Article PeerReviewed P Philology. Linguistics,PE English,PR English literature https://omeka.ibu.edu.ba/files/original/fe9797ebf9c6dc388f544b1b46805884.pdf ae0a268c61387cfe51a557b6857edcd9 PDF Text Text Journal of Economic and Social Studies Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina Amra Babajić Faculty of Economics, University of Tuzla Bosnia and Herzegovina amra.babajic@untz.ba Meldina Kokorović Jukan Faculty of Economics, University of Tuzla Bosnia and Herzegovina meldina.kokorovic@untz.ba Abstract: This paper provides theoretical background and empirical research on state’s role in financial sector development, focusing on state’s role in achieving pro-poor economic growth through its activities in development of the financial sector. To this end, in the theoretical part of the paper, it is explained that pro-poor growth depends on the strong private sector, while at the same time private sector development is dependent on the degree of financial sector development. The empirical part of the paper discusses the role of the state in financial sector development and its contribution to economic growth and poverty reduction in Bosnia and Herzegovina (BH), arguing that this growth needs to be pro-poor oriented as BH is the poorest country in Europe. In order to assess the state’s role in financial sector development and its implication to pro-poor growth in BH, surveys among small and medium enterprises (SMEs) and government representatives were conducted. The research shows significant disagreement between the two surveyed groups about the efforts currently being implemented by BH government in supporting the private sector through financial sector development. It is concluded that government needs to work more closely with the private sector as well as with the financial sector so as to better identify the private sector needs and then create policies and take actions necessary for the private sector to develop, which would consequently lead to poverty reduction. Volume 6 | Number 2 | Fall 2016 Keywords: state, financial sector, pro-poor growth, Bosnia and Herzegovina (BH) JEL Classification: O40, G00, I32 Article History Submitted: 9 April, 2016 Resubmitted: 20 September 2016 Accepted: 14 October 2016 http://dx.doi.org/10.14706/JECO SS16621 5 �Amra Babajić, Meldina Kokorović Jukan Introduction The year 2015 was set as the target year by the United Nations (UN) to implement the Millennium Development Goals (MDGs), with halving absolute poverty set as the first most important goal. Unfortunately, evidence shows that in many developing countries, mostly in Sub-Saharan Africa and Oceania, this goal would not to be met (UN, 2015). In order to reduce poverty, governments need to take necessary actions to assure what in academic literature is referred as the pro-poor economic growth. Broadly, pro-poor economic growth can be defined as one that enables the poor to actively participate in and significantly benefit from economic activity. Promoting pro-poor growth requires a strategy that is deliberately biased in favor of the poor so that the poor benefit proportionally more than the rich (Kawani 2000:3). Pro-poor economic growth can be achieved through private sector development (e.g. promotion of entrepreneurship) as the generator of work places. Government role in private sector development is of crucial importance, since the government is responsible for policies and regulations promoting positive environment for private sector development. One of the aspects of promoting pro-poor growth through private sector development is by means of support and development of the national financial system (creating adequate financial market structure and stable financial institutions, as well as assuring adequate prudential supervision). Financial system development requires government support to provide stable and favorable environment for different types of financial institutions to develop, and furthermore, to provide incentives for financial institutions to create financial products/services tailored to the needs of private enterprises and of poor people to be able to selfemploy. The main goals of this paper are twofold. The first goal is to investigate the role of the state in financial sector development with the main focus to establish the link between government efforts to achieve sustainable pro-poor growth and its efforts to develop the financial system which will be in the function of pro-poor growth. The second goal is to analyze the current state of government intervention in the financial sector oriented to poverty reduction in Bosnia and Herzegovina (BH). Also, the paper is to provide guidelines and recommendations for the improvement of 6 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina government policies regulating financial sector and for greater involvement of the state in providing financial support to private sector development. BH is a rather dysfunctional country with a relatively high poverty rate. According to UNICEF’s poverty measure AROPE (At-Risk-of-Poverty and Social Exclusion), BH has the greatest risk of poverty and social exclusion among European countries. AROPA for BH is 58.6% (of population), and it fairly deviates from the EU-27 AROPE that totals to 24.2% as well as from the new member countries whose AROPE totals to 30.6%. This evidence shows that BH needs the shift in current economic policies. The first part of the paper provides the theoretical background on the financial sector impact on poverty reduction. It focuses on establishing the link between state’s role in financial sector development and state’s role in contributing to poverty reduction by creating policies (among other policies) that ensure the development of the financial sector. In the second part of the paper a review on the existing literature and previous research on the subject is presented. In the third part of the paper empirical research results on the state’s role in financial sector development in BH are presented. Using discriminant analysis, it was found that a huge gap exists between government perceptions of their influence on financial sector development and perceptions of private sector participants on the government role in financial sector development. Theoretical Background on State’s Role in Poverty Reduction through Financial Sector Development Economic growth, which is in the function of poverty reduction, requires macroeconomic stability, efficient investment in human and physical capital including infrastructure, regulation of enterprises and well-functioning financial sector (financial institutions as well as financial markets). Private sector, dominated by small and medium enterprises, is perceived as the most important key for assuring economic growth and job creation. In that respect, government efforts should be directed to enforce policies and create positive environment for promoting private sector development which, in the end, will deliver pro-poor economic growth. Moreover, an important precondition for strong private sector development and its ability to deliver pro-poor growth is the existence of a sound financial system. According to the UK government’s Department for International Development, the Volume 6 | Number 2 | Fall 2016 7 �Amra Babajić, Meldina Kokorović Jukan financial system contributes to factors needed for private sector to deliver pro-poor growth by the following activities (DFID, 2004:4-5): - Mobilizing savings for productive investment, and by facilitating capital inflows and remittances from abroad. The financial sector has a crucial role to play in stimulating investment in both physical and human capital, and hence increasing productivity; - Reducing transactions costs, facilitating inward investment, and making capital available for investment in better technologies. The financial sector can promote technological progress, thus increasing productivity, and improving resource use; - Enabling the poor to draw down accumulated savings and / or borrow to invest in income-enhancing assets (including human assets e.g. through health and education) and start micro-enterprises, wider access to financial services generates employment, increases incomes and reduces poverty; - Enabling the poor to save in a secure place, the provision of bank accounts (or other savings facilities) and insurance allows the poor to establish a buffer against shocks, thus reducing vulnerability and minimizing the need for other coping strategies such as asset sales that may damage long-term income prospects. Developed financial sector contributes to poverty reduction in two different ways: directly and indirectly (see Figure 1). 8 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina Figure 1: Financial Sector Development and Poverty Reduction Source: Zhuang J. et al., 2009:10 Directly, financial sector contributes to poverty reduction through improving the access to financial service for poor and underprivileged people. Government may enforce policies which promote and create opportunities for self-employment and SMEs development. Furthermore, government can invest in better education and human capital development. Through better allocation of fiscal revenues for social spending, government can contribute to consumption smoothening among different population groups. Indirectly, the financial sector contributes to poverty reduction through boosting economic growth. In most developing countries, the major challenge of financial systems development is to provide access to formal financial sources (products and services) to the poor. Poor people are usually deprived of accessing commercial bank loans and financial services since poor people are observed as risky clients. For that reason, poor people mostly rely on the informal or semi-formal financial institutions which, in general, offer much more expensive financial products/services. Empirical evidence (Beck, Demirgüç-Kunt, and Martinez-Peria, 2007) confirms that the most important direct channel through which financial sector development impacts on poverty reduction is better access to financial services. Furthermore, it is important to emphasize that state’s role in financial system development is extremely important. Through regulation and supervision, the state Volume 6 | Number 2 | Fall 2016 9 �Amra Babajić, Meldina Kokorović Jukan creates secure and stable environment for financial institutions and markets to develop. To assure poverty reduction, governments need to implement policies which would lead to the increase in economic growth rates. But, efficiency of economic growth in poverty reduction depends on the capacity of the poor to participate in the growth (WB, 2005). Poor people can participate in achieving the economic growth only if they are given an active role in job creation. This is confirmed by the World Bank study titled ”Pro-Poor Growth in the 1990s: Lessons and Insights from 14 Countries”, where it is emphasized that policymakers who seek to reduce poverty should implement policies that enable their countries to achieve a higher rate of growth. But growth is more effective in reducing poverty in some countries than in others, depending on the capacity of poor people to participate in and benefit from growth. 1 As emphasized, development of the private sector as the new job creator is of key importance. The biggest responsibility for private sector development is on the government, because they need to create stimulative environment for development of the existing and the opening of new enterprises. There is persuasive evidence from all over the world confirming that rising levels of competition have been unambiguously associated with increased economic growth, productivity, investment and increased average living standards (OECD, 2006:41). Therefore, based on the modern regulatory regimes for development of the private sector which include competition policy regimes, economic growth model based on the pro-poor principles is desirable in BH. The existing model of economic growth in BH is not pro-poor oriented, because the Strategy for poverty reduction in BH adopted in 2004 is not fully implemented. Literature Review Literature review shows that early researches aimed to understand the relation between financial system and social welfare, while more recent studies (last decade) are more oriented to find the link between financial sector development and poverty reduction/alleviation. 1 We argue that the private sector, if properly supported by the government (especially in terms of development of entrepreneurship culture), is in the function of building the capacity of the poor people to participate in the country’s economic growth. 10 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina Vast theoretical and empirical academic literature exists on the subject of financial sector impact on the social welfare. The majority of the papers in the 1990s debated mainly on the relation between financial system development and economic growth in general (Bencivenga & Smith, 1991; King & Levine, 1993; Levine, 1997) and on industrial growth in particular (Rajan & Zingales, 1998). Levine (2004) argues that countries with better functioning banking sector and financial markets grow faster. Bencivenga and Smith (1991) found positive relation between financial intermediation development and increase in real growth rates. Furthermore, they conclude that regulation policies (such as reserve requirements and interest rate caps) might have an impact on economic growth and need to be considered by developing countries. King and Levin (1993) formulated and empirically proved the model showing that better (more developed) financial systems stimulate economic growth by accelerating productivity rates. It is shown that more developed systems make more efficient selection for financing entrepreneurial activities and, therefore stimulating faster economic growth. Fields (2001) argues that through better access to finance poor people have better opportunities to participate in economic activities. Most recent empirical studies shows the existence of a significant positive effect of financial system development on poverty reduction, where countries with more developed financial systems are more likely to have lower poverty rates. (e.g. Akhter et al. 2010; Ho S. and Odhiambo, N. M , 2011; Azra. D et al. 2012; Uddin, G. S. et al. 2012). Honohan (2004) shows that correlation between financial development and sustainable economic growth needs to be drawn by more comprehensive statistics than merely banging sector depth. Furthermore, Quartey (2005) investigated the relation between savings mobilization and poverty reduction showing the existence of correlation between the two variables, but emphasizing the role of the government and its policy in stimulating domestic savings. It was also observed that institutional quality and adequate regulation of financial institutions play a crucial role in positive relationship between financial system development and poverty reduction (Dhrifi, 2013a.) Moreover, Dhrifi concludes that government must cooperate closer with the financial market and the banks acting as the regulator for formalizing models for the poorest access to formal and informal finance. Such actions of policy intervention should normally facilitate institutions providing financial services to the poor. In Volume 6 | Number 2 | Fall 2016 11 �Amra Babajić, Meldina Kokorović Jukan addition, it should foster cultures of households to invest in profitable projects. Political solutions must be tailored to the problems of the financial sector. (Dhrifi, 2013b:477). Having in mind the importance of government involvement in financial sector development aiming to achieve pro-poor economic growth, further research focuses mainly on the government role in BH in reducing poverty through financial sector development. Contribution of Financial Sector Development to Poverty Reduction in BH Overview of the Institutional Framework in BH Supporting the Private Sector and SMEs The general climate in the society should lead individuals to consider the option of starting their own business as attractive, and acknowledge that SMEs contribute substantially to employment growth and economic prosperity (EC 2008:3). In that respect, institutional infrastructure is necessary to support SMEs in proving growth and economic prosperity. When it comes to creating stimulative environment for private sector development in general, government’s role is of the utmost importance. Nevertheless, institutions forming infrastructure for private sector development are not just governments, but also non-government, private and non-profit organizations. There is no unique institutional infrastructure for private sector development and it differs from country to country. Support provided by government institutions is usually related to providing consulting and professional services, presenting good practices, etc. The majority of countries have developed different types of institutions such as government agencies, ministries, associations, chambers, and financial institutions. These institutions operate on different levels, from local, regional, state to international level. In context of creating adequate institutional infrastructure for supporting the private sector, especially for supporting SMEs, the European Union (EU) has made significant improvements. By adopting “Small Business Act” for Europe, the European Commission has laid a set of principles for implementation of policies both at the EU and Member State level in order to improve the legal and administrative environment throughout the EU for SMEs. These principles are the following (EC, 2008:4): 12 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina • • • • • • • • • • Create an environment in which entrepreneurs and family businesses can thrive and entrepreneurship is rewarded, Ensure that honest entrepreneurs who have faced bankruptcy quickly get a second chance, Design rules according to the “Think Small First” principle, Make public administrations responsive to SMEs’ needs, Adapt public policy tools to SMEs’ needs: facilitate SMEs participation in public procurement and better use State Aid possibilities for SMEs, Facilitate SMEs access to finance and develop the legal and business environment supportive to timely payments in commercial transactions, Help SMEs to benefit more from the opportunities offered by the Single Market, Promote the upgrading of skills in SMEs and all forms of innovation, Enable SMEs to turn environmental challenges into opportunities, and Encourage and support SMEs to benefit from the growth of markets. By turning these principles into practice, many different institutions supporting SMEs have been established across the EU with coordinating efforts to provide better institutional framework for SMEs. By adopting EU Acquis Communautaire, BH has accepted these principles to create adequate institutional setting for SMEs development. Currently, there are several institutions that provide institutional support for SMEs in BH. This infrastructure is rather complicated due to the elaborate olitical and legal system in the country. BH operates on the state level with two entities: Federation of BH (FBH) and Republic of Srpska (RS), and Brcko District. FBH is further divided into ten cantons, each operating as a state within the state. The overview of BH government institutions and governmental financial institutions supporting SMEs is given in Table 1. On the state level, development of SMEs is coordinated by the Ministry of foreign trade and economic relations. Within this Ministry the Sector for Economic Development and Entrepreneurship is responsible for SMEs development and is in charge of the following basic activities: normative-legal, study-analytical, technicaloperational, information-documentary, and administratively-technical. These activities include different areas such as: macroeconomic analysis and economic Volume 6 | Number 2 | Fall 2016 13 �Amra Babajić, Meldina Kokorović Jukan growth forecast of BH; collaboration with international institutions and organizations; collaboration with domestic and foreign scientific and research institutions; preparation of treaties, agreements, and other acts for projects and programs of economic restoration and development; projects and programs of bilateral and multilateral donations and credits for economic restoration and development; coordination of international economic assistance to BH except the part regarding the European Union assistance; preparation of bilateral and multilateral agreements and other acts regarding economic restoration and development of BH; development of entrepreneurship, support to the development of SMEs; SMEs promotion. 2 Nevertheless, the fund for financial support for SMEs on the state level does not exist. Financial government support for SMEs is under the jurisdiction of the entities. On the level of FBH, SMEs are supported by the Ministry of Development, Entrepreneurship and Crafts and Development and the Development Bank of FBH. Furthermore, each of the ten cantons has cantonal ministry which deals with SMEs. In RS, SMEs development is supported by the three following institutions: the Ministry of Industry, Energy and Mining of RS, the Agency for SMEs and the Development Bank of RS. Table 1: The overview of BH government institutions supporting the private sector and SMEs Level of government State level Entity level Federation of BH Entity level Republic of Srpska Cantonal level Brcko District 2 Government institution Ministry of foreign trade and economic relations of BH Ministry of development, entrepreneurship and crafts Ministry of industry, energy and mining of RS Agency for SMEs Designated ministry for SMEs Government of Brcko District – Government financial institution Does not exists Development Bank of FBH Development bank of RS Development bank of RS. Development Grant Fund of Brcko District www.mveteo.gov.ba 14 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina Besides the government institutions, there is a wide network of non-government institutions providing support to SMEs development in BH, such as REDAH Regional Development Agency for Herzegovina, REZ – Regional Development Agency for Central BH region, NERDA - Regional Development Agency for North-East BH, SERDA – Sarajevo Regional Development Agency, etc. This existing legal infrastructure in BH, with different laws adopted on different government levels (state, entities, and cantons) and problems in the implementation of the Strategy for SMEs development, is rather complicated and does not provide proper conditions for enterprises to operate. Laws adopted on different government levels are not harmonized. Furthermore, there is no single state register of SMEs. Other infrastructural problems are related to complicated public administration, high costs of maintaining public administration, redundancy in functions of different institutions on all government levels with unclear responsibilities, etc. The number of registered enterprises in BH is reduced year by year, and conditions for the operation of the existing enterprises are worsened. Overall, it can be concluded that the current infrastructure supporting SMEs in BH is not in favor of achieving sustainable growth in the country. The Strategy of SMEs development is not being implemented properly and Strategy for poverty reduction is nothing more than cold facts on paper, as government is doing nothing to enforce and achieve strategy objectives. These strategies are not producing pro-poor growth. Overview of the BH Financial Sector The BH financial system is bank centric, where the dominant role is played by the commercial banks. The non-bank financial sector is relatively underdeveloped with the following financial institutions operating within the sector: microcredit organizations, leasing companies, investment funds and insurance companies. As Figure 2 shows, commercial banks account for 84% of the total financial asset within the BH financial system, while the remaining financial institutions account for 5% or less of the total assets. Volume 6 | Number 2 | Fall 2016 15 �Amra Babajić, Meldina Kokorović Jukan Figure 2: Structure of financial institutions of the BH financial sector in 2013 5% 4% 4% 3% Banks Leasing companies 84% Insurance companies Investment funds Microcredit organisations Source: CBBH (2014) Stability and security of the overall banking sector is adequate, according to the data provided by the Banking Agencies of Federation of BH and of Republic of Srpska. In 2012, capital adequacy rate of the banking sector, as the most important measure of banking sector performances, was 16.4%, which is substantially above the regulatory minimum of 12%. Regardless of the financial crisis, the financial system of BH remains strong in terms of its ability to provide financial support to nonfinancial sector (companies and households). On the other hand, statistical data shows that credit activity of banks was decreased during 2012, where 51.6 % of total credits (approx. BAM 16 billion) was granted to non-financial companies (public and private), 42.6% to households and 5.2% to the government. In the same period, microcredit financial institutions in Federation BH granted only 2% of the total credits (BAM 400 million) to companies and 98% to households. According to the Annual Report for 2012 of the Central Bank of BH, there were 28 licensed banks in BH, with 18 of them operating in FBH and 10 in RS. There were 19 microcredit financial institutions (13 in FBH and 6 in RS), with 15 of them 16 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina organized as microcredit foundation and 4 as microcredit organizations. 3 Leasing companies are less developed financial institutions with only 9 being licensed for providing leasing contracts (7 in FBH and 2 in RS). Furthermore, capital markets in BH are not used to their full potential. Organized capital markets exist within two securities exchanges (Sarajevo Stock Exchange and Banja Luka Stock Exchange), but the annual turnover at these exchanges is rather symbolic. The structure of the securities exchanges turnover shows the lack of foreign investors and dominance of government debt securities. Private companies do not use securities exchanges to raise capital funds through stock or bonds issuing or initial public offerings. Research Methodology and Sample For the purposes of assessing government involvement and policies impact on strengthening the financial sector oriented to poverty reduction and pro-poor growth, we conducted the research among SMEs and government bodies. The aim of the research was to better understand the perceptions of SMEs as the most important creators of work places, as well as of the perceptions of government agencies representatives about the level of government involvement in financial sector development. In order to collect the research data two types of questionnaires were created, one for SMEs and other for government representatives. The questionnaires were structured to collect data about government policies and actions impact on private sector development and poverty reduction focusing on the financial sector impact. 4 The questionnaires were created consulting the OECD document - Promoting Pro-Poor 3 One of the main differences between microcredit foundations and microcredit institutions is related to the maximum amount of granted credit. Microcredit foundations can grant a credit in the maximum amount of BAM 10,000 (approx. EUR 5000 ), while microcredit organizations can grant a credit in the maximum amount of BAM 50,000 (approx. EUR 25,000 EUR). 4 The research results, presented in this paper, are part of the broader research on government role in poverty reduction in BH which, besides its role in strengthening the financial sector, covered government role in strengthening entrepreneurial environment and the overall support to the private sector by eliminating different barriers, such as regulatory, administrative and financial. Volume 6 | Number 2 | Fall 2016 17 �Amra Babajić, Meldina Kokorović Jukan Growth: Private Sector Development and the European Commission document - The European Platform against Poverty and Social Exclusion: A European framework for social and territorial cohesion. The questionnaire for SMEs included thirteen questions, while the one for government bodies included eighteen questions. The sample of the surveyed SMEs was created based on the partial data on the number and types of SMEs from the Indirect Taxation Office of BH and the Agency for Statistics of BH, since the state level database of SMEs operating in BH does not exist. Having in mind that the sample would be rather large to collect the data, it was decided to include 250 SMEs in the sample. The size and structure of the sample is shown in Table 2. The response rate among SMEs was 50%. Table 2: Size and structure of the sample of the surveyed SMEs Group Number of employees 1 0 – 10 2 10 – 50 3 50 – 250 ∑ Type of SME Micro Enterprises Small Enterprises Mid-sized Enterprises Stratums Number of enterprises % Sample Number of enterprises 31,102 78.58 196.45 6,539 16.52 41.3 41 1,938 4.90 12.25 12 39,579 100.00 250.00 250 Number of enterprises in the sample 197 Source: Authors’ research The survey of government institutions included the following institutions and agencies: Federal Ministry of Development, Entrepreneurship and Crafts, FBH Development Planning Institute, Agency for Development of Small and Midsized Enterprises of Republic of Srpska, Government of Brcko District – Development Grant Fund of Brcko District, Federal Ministry of Energy, Mining and Industry, Ministry of Foreign Trade and Economic Relation of BH, and ten cantonal ministries of entrepreneurship. The response rate among government institutions was 81%. 18 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina The data was collected in the period from May to November 2014, by e-mail, phone and direct contact. Research Results and Discussion As it was indicated in the previous part of the paper, economic pro-poor growth implies orientation to poverty reduction through different government measures, including financial sector development. Financial sector development contributes to pro-poor growth by creating a network of different types of financial institutions as well as a variety of financial products/services for the private sector and supporting entrepreneurial development, which contributes to poverty reduction by increasing employment and self-employment. SMEs Perceptions of State’s Role in Financial Sector Development in BH In general, the survey shows negative SMEs perceptions of the state’s role in financial sector development and its contribution to entrepreneurial development and, therefore, to poverty reduction. Figure 3 shows the results of the level of the surveyed SMEs agreement with different aspects of government (state) support to financial sector development. Figure 3: Perceptions of SMEs on the state’s role in financial sector development State regulates microcredit organization and… 24,3 State creates positive business environment… 25,7 32,9 State works continuously on development… State ensures guaranties and subventions… State creates conditions for development of… 35,7 State encourage entrepreneurial and… Supporting financial institutions,… 0% Strongly disagress Disagree 28,6 38,6 14,3 14,3 41,4 21,4 40 27,1 21,4 41,4 35,7 25,7 34,3 40% Agree 10 2,9 7,1 4,32,9 47,1 32,9 20% 7,12,9 47,1 31,4 Undecided 14,3 0 28,6 44,3 27,1 State finances investment in equipment,… 28,6 15,7 60% 80% 7,10 7,12,9 4,3 1,4 4,3 1,4 14,3 0 100% Strongly agree Source: Authors’ research Volume 6 | Number 2 | Fall 2016 19 �Amra Babajić, Meldina Kokorović Jukan As Figure 3 shows, 23% to 44% of the surveyed SMEs strongly disagree, while 28% to 41% of the surveyed SMEs disagree that the state supports financial sector development oriented towards helping SMEs and entrepreneurial firms. The majority of the surveyed SMEs disagree that state: • ensures guaranties and subventions for debt financing of the companies (85.7% of the surveyed SMEs), • creates conditions for development of different types of financial products/services for micro/small/mid-sized companies (78.5% of the surveyed SMEs), and • works continuously on development and strengthening of the financial sector (72.9% of the surveyed SMEs). Furthermore, the research results show that most of the surveyed SMEs have either a negative or neutral attitude towards the state regulations on microcredit organizations and prevention of misuse of these organizations, state’s role in creating positive business environment and support to microcredit organizations, and state’s support to financial institutions. It is interesting to observe that less than 15% of the surveyed SMEs expressed a positive attitude towards the state’s role in financial sector development and its impact on entrepreneurial development. Government Bodies Perceptions of its Role in Financial Sector Development in BH In contrast to SMEs negative perception, the survey shows a more positive attitude among government bodies of the state’s role in financial sector development. The results of the survey are shown in Figure 4. 20 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina Figure 4: Perceptions of government bodies on the state’s role in financial sector development State regulates microcredit organization and prevent misuse of these… 7,7 7,7 76,9 State creates positive business 7,7 environment and support microcredit… State works continuously on development and strengthening of financial sector 53,8 7,7 State ensures guaranties and subventions for debt financing of the… 7,7 7,7 0% Strongly disagress Disagree 0 30,8 23,1 23,1 30,8 State encourage entrepreneurial and 07,7 investment activities Supporting financial institutions, 0 government contributes to… 15,4 46,2 23,1 38,5 23,1 Undecided Agree 15,4 0 0 23,1 0 7,7 7,7 69,2 40% 7,7 46,2 76,9 20% 15,4 0 61,5 23,1 15,4 State finances investment in equipment, technology and education 23,1 30,8 23,1 State creates conditions for development of different types of financial… 7,7 0 60% 7,7 0 80% 100% Strongly agree Source: Authors’ research The majority of the surveyed government bodies are undecided (neutral) towards the statements related to state policies and to the entrepreneurial development through strengthening the financial sector. Government bodies agree that the state does not create conditions for development of a wide range of financial products/services for micro/small/medium enterprises and, moreover that it does not create positive environment and financial support for microcredit organizations. In contrast to the perceptions of the surveyed SMEs, government bodies express a positive attitude towards the state’s role in creating the conditions for debt financing for start-ups and enterprise development, as well as towards the state’s role in ensuring grants and subventions for debt financing of SMEs. Volume 6 | Number 2 | Fall 2016 21 �Amra Babajić, Meldina Kokorović Jukan Using discriminant analysis existence of the significant difference among attitudes between the private and government sectors on the state’s role in strengthening the financial sector was tested. In that respect, one discrimination function was determined, where the function describes 100% of the variation of the between groups variation, which is shown in Table 3. Table 3: Discrimination analysis for the state’s role in strengthening financial sector F eigenvaules λ % of Variance 1 0.278 100 Cumulative % 100 Canonical Correlation rc 0.467 Wilks’ Lambda λ 0.782 Chisquared χ2 18.788 df Sig. 9 0.027 Source: Authors’ research Squared canonical correlation (rc), the effect size for the discriminant functions, is (0.4672)=0.278. Wilks Lambda is rather high (Wilks λ=0.782) showing low discrimination strength of discriminant functions. Chi-squared test (χ2) for function 1 is statistically significant (χ2=18.788, sig.=0.027), showing that discrimination model is significant, and therefore can adequately measure group membership, but determined differences between groups are rather small. Table 4 shows discriminant function coefficients and group centroids for the state’s role in strengthening financial sector. Table 4: Discriminant function coefficients and group centroid for the state’s role in strengthening financial sector Discriminant Coefficient (DC) State encourages entrepreneurial and investment activities State ensures guaranties and subventions for debt financing of companies State creates conditions for debt financing of start-up/development of firms 0.629 State finances investment in equipment, technology and education 0.569 22 0.823 Group Centroid Private sector -0.225 Government 1.209 0.624 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina Supporting financial institutions, government contributes to entrepreneurial development 0.536 * Difference does not exist Source: Authors’ research Table 4 shows differences between the observed groups for chosen variables in the hierarchical order. The mayor difference in perceptions among the private and government sectors is observed in respect to the following: state’s role in encouraging entrepreneurial and investment activities (DC=0.823), and state’s role in ensuring guaranties and subventions for debt financing of companies (DC=0.629). On the other hand, there is no significant difference between perception among the private and government sectors on the state's role in creating positive business environment and support to microcredit organizations. It can be observed that even though some differences in perceptions among the private and government sectors, on the multivariation level, do exists, where the private sector gives a lower grade than the government bodies for the state’s involvement and contributions to financial sector development, those differences are rather insignificant. Conclusions and Recommendations In order to reduce poverty, governments in developing countries need to take necessary actions to assure pro-poor economic growth. Pro-poor economic growth can be achieved by greater role of the state in developing private sector and creating environment for entrepreneurship. In that respect government needs to establish economic environment which would boost private sector to create more work places for the poor. Furthermore, the state needs to engage in development of the financial sector, as financial sector development is one of the preconditions for private sector to develop. Without proper financial sector infrastructure for private sector and entrepreneurs to obtain external financial sources (more precisely, without availability of different types of external financial sources tailored to their needs), it cannot be expected that a pro-poor growth can be achieved through private sector development. As the research shows, based on the BH experience, it is not enough to create the regulation framework of the financial system and regulation for SMEs, but it is Volume 6 | Number 2 | Fall 2016 23 �Amra Babajić, Meldina Kokorović Jukan important that regulations and government actions are in line with the expectation of the private sector. The research shows that private sector is not satisfied with actions undertaken by the state for supporting financial sector. The analysis of SMEs perceptions reveals that SMEs have negative perceptions towards the state’s role in financial sector development. The surveyed SMEs are of the opinion that the state interventions in financial sector are not contributing to entrepreneurial development in BH, regardless of the fact that BH financial sector is well developed and well regulated. On the other hand, the analysis of perceptions of government bodies at all levels (municipal, cantonal, entity and the state level) reveals that the state is not aware of the needs of private sector, as well as of entrepreneurial sector. It is obvious that a huge lack of understanding between the state and private sector exists. In that respect, it is important that government work more closely with private sector as well as with financial sector to identify the needs of private sector and create policies and take actions necessary for private sector to develop. In particular, when it comes to financial sector development, government bodies need to: • rethink and better distribute guaranties and subventions for debt financing of companies, • create conditions for development of different types of financial products/services specially tailored for the needs of SMEs, • work continuously on development and strengthening of financial sector, hold workshops or focus groups where all interested parties (the state, financial institutions and SMEs) would be able to discuss the problems in access to financial products and services. References Akhter, S., Liu , Y., & Daly, K. (2010). Cross Country Evidence on the Linkages between Financial Development and Poverty. International Journal of Business and Management, 5(1), 3-19. Azra, K. D., Ahmad E., & Ullah W. (2012). Financial Development and Poverty Reduction: Time Series Evidence from Pakistan. World Applied Sciences Journal 18(11), 1576-1581. 24 Journal of Economic and Social Studies �Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina Beck, T., A. Demirgüç-Kunt, & M. S. Martinez-Peria. (2007). Reaching Out: Access to and Use of Banking Services across Countries. Journal of Financial Economics, 85(1), 234–66. Bencivenga, V.R, & Smith, B.D. (1991). Financial Intermediation and Endogenous Growth, Review of Economic Studies, 58, 195-209. Central bank of Bosnia and Herzegovina (2014). Annual Report of CBBH for 2013. Retrieved from: http://www.cbBH.ba/files/godisnji_izvjestaji/2014/GI_2013_bs.pdf DFID (2004). The Importance of Financial Sector Development for Growth and Poverty Reduction Policy Division Working Paper, Department for International Development, UK. Retrieved from: http://ageconsearch.umn.edu/bitstream/12886/1/fi04im01.pdf Dhrifi, A. (2013a). Financial Development and Poverty: What Role for Growth and Inequality?, International Journal of Academic Research in Accounting, Finance and Management Sciences, 3(4), 119–129 Dhrifi, A. (2013b). Financial Development and the "Growth-Inequality-Poverty" Triangle: A Comparative Study between Developed and Developing Countries, International Journal of Economics, Finance and Management, 2(7), 472 -481. European Commission (2008). “Think Small First” - A “Small Business Act” for Europe {SEC(2008) 2101} {SEC(2008) 2102}, COM/2008/0394 final. Retrieved from: http://eur-lex.europa.eu/legalcontent/EN/TXT/?uri=CELEX:52008DC0394 Fields, G. (2001). Distribution and Development: A New Look at the Developing World. NY: Russell Sage Foundation, and Cambridge, MA: MIT Press. Ho, S., and Odhiambo, N. M. (2011). Finance and Poverty Reduction in China: An Empirical Investigation, International Business & Economics Research Journal, 10(8), 103 -114. Honohan, P. (2004). Financial Development, Growth and Poverty: How Close is the Links, World Bank Policy Research Working Paper 3203, February 2004, Retrieved from: http://www1.worldbank.org/finance/assets/images/3203.pdf Volume 6 | Number 2 | Fall 2016 25 �Amra Babajić, Meldina Kokorović Jukan King. R. G, and Levine R. (1993). Finance, Entrepreneurship and Growth: Theory and Evidence, Journal of Monetary Economics, 32(3), 513-542. Levine, R. (2004). Finance and Growth: Theory and Evidence. NBER Working Paper No. 10766, National Bureau of Economic Research, MA: Cambridge Levine, R. (1997). Financial Development and Economic Growth: Views and Agenda, Journal of Economic Literature, 35(4), 688-726. Quartey, P. (2005). Financial Sector Development, Savings Mobilization and Poverty Reduction in Ghana, UNU-WIDER. 2005, Research Paper No. 2005/71, United Nations University, Helsinki, Finland. Rajan, R.G. Zingales, L. (1998). Financial Dependence and Growth, The American Economic Review, 88(3), 559-586. Rajan. R.G, a Zingales L. (2003). The Great Reversals: The Politics of Financial Development in the 20th Century, Journal of Financial Economics, 69(1), 5-50. OECD (2006) Promoting Pro-Poor Growth - Private Sector Development. Retrieved from: http://www.oecd.org/development/povertyreduction/36427804.pdf Uddin G.S., Kyophilavong P., Sydee N. (2012). The Casual Nexus of Banking Sector Development and Poverty Reduction in Bangladesh, International Journal of Economics and Financial Issues, 2(3), 304-311. UN (2015). Millennium Development Goals: 2014 Fact Sheet. Retrieved from: http://www.un.org/millenniumgoals/2014%20MDG%20report/MDG%202014% 20Progress%20Chart_English.pdf WB (2015). Pro-Poor Growth in the 1990s: Lessons and Insights from 14 Countries. Retrieved from: http://siteresources.worldbank.org/INTPGI/Resources/3426741119450037681/Pro-poor_growth_in_the_1990s.pdf 26 Journal of Economic and Social Studies � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3340 Title A name given to the resource Role of the State in Financial Sector Development and Achieving Pro-Poor Growth: Evidence from Bosnia and Herzegovina Author Author Babajic, Amra KOKOROVIĆ JUKAN, Meldina Abstract A summary of the resource. This paper provides theoretical background and empirical research on state’s role in financial sector development, focusing on state’s role in achieving pro-poor economic growth through its activities in development of the financial sector. To this end, in the theoretical part of the paper it is explained that pro-poor growth depends on the strong private sector, while at the same time private sector development is dependent on the degree of financial sector development. Defining pro-poor growth as a set of policies aiming to reduce poverty, it is argued that pro-poor growth is dependent on financial sector development both, directly and indirectly. Financial sector development contributes to poverty reduction directly through improvement of the access to financial products/services to the poor, and indirectly through private sector’s better access to financial sources which as a consequence impacts the overall economic growth of the country. By analyzing theoretical approaches, it is shown that government policies and actions in financial sector development might positively impact private sector development, and therefore (indirectly and directly) contributes to pro-poor growth. The empirical part of the paper discusses the role of the state in financial sector development and its contribution to economic growth and poverty reduction in Bosnia and Herzegovina (BiH), arguing that this growth needs to be pro-poor oriented as BIH is the poorest country in Europe. In order to assess state’s role in financial sector development and its implication to pro-poor growth in BIH, surveys among small and medium enterprises (SMEs) and government representatives were conducted. The aim of the surveys was to analyze the perceptions of private sector participants and of government institution employees perceptions about the government role in development of the financial sector oriented to SMEs. The research shows significant disagreement between the two surveyed groups about the efforts currently being implemented by BIH government in supporting the private sector through financial sector development. It is concluded that government needs to work more closely with the private sector as well as with the financial sector so as to better identify the private sector needs and then create policies and take actions necessary for the private sector to develop, which would consequently lead to poverty reduction. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Article PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/9cceef2651e05259c82484c7135f81c0.docx be7c932d66d54b0ec1e281e0050db78d Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3302 Title A name given to the resource Investigating the Drivers of Choice Behavior in Tourism: Corporate Image, Perceived Risk and Trust Interactions through Reputation Management Author Author Bozkurt, Mesut Özkul, Emrah Abstract A summary of the resource. Abstract: This study examines how reputation management (RM) activities influence consumers’ choice behaviors. In order to understand the relationship between them the possible consequences of RM activities such as corporate image, consumer trust, and perceived risk were analyzed as the antecedents of consumers’ choice behavior. Specifically, a structural equation model was developed for hypothesized relations between the constructs of the study. Empirical research was conducted using data from 232 individual consumers in Albania (n=109) and Turkey (n=123) to test our conceptual model. The data were analyzed through t-test and structural equation modelling (SEM). The study shows that RM activities obviously determine the constructs of corporate image and consumer trust positively, whereas they affect perceived risk by consumers negatively. The lower level of perceived risk through RM activities was found as a significant determinant of consumers’ choice behavior. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Article PeerReviewed H Social Sciences (General) Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3613 Title A name given to the resource Analysis of ACE I/D polymorphism in Gorani population Author Author Buljubašić, Sanida Abstract A summary of the resource. Angiotensin converting enzyme (ACE) gene is 21 kb long gene that is located on chromosome 17q23. Protein coded by this gene, ACE enzyme causes conversion of inactive angiotensin I to active angiotensin II that presents key component of Renin Angiotensin System(RAS) that is known to functions in control of blood pressure and balance of fluids and salts in the body. ACE also increases degradation of bradykinin. It has been shown that ACE gene contains a polymorphism based on the presence (insertion [I]) or absence (deletion [D]) of 287 bp Alu sequence in intron 16. Accordingly, it leads to the generation of three genotypes: deletion homozygotes (DD), insertion homozygotes (II), and heterozygotes (ID). Studies have identified correlation between ACE polymorphism and different diseases as well as correlation between one of three genotypes and sport performance. The main aim of this study was to identify genotype and allele frequencies of ACE gene in Gorani population. Comparison of these results to the results of other population studies on ACE polymorphismswe aimed to understand genotype composition of studied population as well as to see if ACE gene presents suitable genetic marker that could be used in population studies. Genotypes of hundred unrelated individuals were determined by using method initially described by Rigat et al (1992). As overamplification of D allele can cause ID genotype mistyping, DD individuals were subjected to second PCR in which presence or absence of I allele was controlled. Results of the first and second PCR were detected by 2% and 1,5 % gel electrophoresis, respectively. Results of ACE testing revealed that Gorani population is in Hardy Weinberg equilibrium, where the most common genotype is ID(63%), followed by DD (20%) and II (17%) genotypes. When results of present study where compared to other population studies, the highest correlation was observed with Hungarian, Croatian, Serbian and Turkish populations. MDS plot as well as dendrogram revealed grouping of population according to geographical position, being more reliable based on continental distribution. Keywords: ACE gene, ACE polymorphism, Gorani population, Polymerase Chain Reaction, MDS, Dendrogram Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Thesis NonPeerReviewed Q Science (General)