Dublin Core
Title
CONTEMPORARY CHALLENGES OF BOSNIA AND HERZEGOVINA
Abstract
This study aimed to investigate and analyze the effects of various forms of corruption and their intensity on the economy of Bosnia and Herzegovina (B&H). Both primary and secondary data were utilized for this research. Primary data was gathered using a qualitative research approach, which is well-suited for providing insights into complex social issues where quantitative data alone is insufficient. It is recommended that sensitive and intricate topics such as corruption be explored primarily through qualitative methods.
The research involved five direct standardized interviews, chosen for their ability to yield rich data and deeper insights into the phenomenon under study. Interviews are generally favored for their direct interaction and flexibility. However, they have limitations, including being time and energy-consuming, costly compared to surveys, challenges in recruiting willing participants, potential for biased responses, and overall efficiency. The principal challenge encountered in this study was finding participants willing to engage, as some lacked the necessary time for interviews while others were uncomfortable discussing corruption in our society.
The interviewees identified bribery, fraud, and favoritism as the most prevalent forms of corruption in Bosnia and Herzegovina (B&H), each contributing equally to economic stagnation. These corrupt practices are seen as reducing GDP, enlarging the grey economy, and hindering international development. Bribery and favoritism, in particular, are noted for their detrimental effects on the country’s budget, with even state leaders exacerbating the issue through inappropriate resource distribution, thereby causing significant economic damage beyond just financial losses. Moreover, the interviewees highlighted that bribery and favoritism deter foreign direct investment (FDI) since investors struggle to navigate pervasive corruption at all levels, leading to a general mistrust in the system. In terms of market competition, favoritism is believed to play a substantial role by allowing those with influential connections to distort business conditions. Additionally, hiring unskilled and unprofessional employees was cited as negatively impacting company productivity, the quality of products and services, and customer satisfaction.
Due to the severe economic challenges in Bosnia and Herzegovina (B&H), coupled with unfavorable labor market conditions and the prevalence of bribery and favoritism, the country is experiencing an increase in emigration rates, predominantly driven by the brain drain effect. The widespread corruption undermines the principle of equality in society, exacerbating general poverty and widening the gap between the rich and the poor. Typically, the less affluent members of society suffer more from corruption, as well-connected individuals exploit these conditions to their advantage at the expense of others.
To effectively combat corruption, the initiative must begin with the state itself. The rule of law must be enforced uniformly, applying equally to all, regardless of status. The House of Representatives of the Parliament of FB&H must pass the Law on the Protection of Whistleblowers, and the government should implement a support and reward system for those who report corruption. Although the state has enacted several anti-corruption strategies, these must be continually monitored and updated to close any loopholes that are exploited. The interviewees recommend the introduction of stricter penalties and increased media involvement to ensure the public is informed about corruption cases and their outcomes.
The most effective method to combat corruption in our country, for both companies and individuals, involves improving individual culture and raising awareness of corruption's detrimental effects. The interview results indicate a strong desire for companies to organize anti-corruption training, making employees aware of the consequences of engaging in corrupt practices. Additionally, people should be encouraged to report corruption, with assurances of protection for those who choose to come forward. While corruption has been extensively studied globally, research specific to Bosnia and Herzegovina (B&H) remains scarce and outdated. In B&H, corruption has unfortunately become embedded at various levels of governance—state, entity, and cantonal—making it one of the foremost economic concerns, alongside issues like trade deficits, brain drain, extensive bureaucracy, and entrenched political hierarchies. Given the country’s high and increasing levels of corruption, which are impeding its process of joining the European Union, this issue must receive further academic and practical scrutiny.
The research involved five direct standardized interviews, chosen for their ability to yield rich data and deeper insights into the phenomenon under study. Interviews are generally favored for their direct interaction and flexibility. However, they have limitations, including being time and energy-consuming, costly compared to surveys, challenges in recruiting willing participants, potential for biased responses, and overall efficiency. The principal challenge encountered in this study was finding participants willing to engage, as some lacked the necessary time for interviews while others were uncomfortable discussing corruption in our society.
The interviewees identified bribery, fraud, and favoritism as the most prevalent forms of corruption in Bosnia and Herzegovina (B&H), each contributing equally to economic stagnation. These corrupt practices are seen as reducing GDP, enlarging the grey economy, and hindering international development. Bribery and favoritism, in particular, are noted for their detrimental effects on the country’s budget, with even state leaders exacerbating the issue through inappropriate resource distribution, thereby causing significant economic damage beyond just financial losses. Moreover, the interviewees highlighted that bribery and favoritism deter foreign direct investment (FDI) since investors struggle to navigate pervasive corruption at all levels, leading to a general mistrust in the system. In terms of market competition, favoritism is believed to play a substantial role by allowing those with influential connections to distort business conditions. Additionally, hiring unskilled and unprofessional employees was cited as negatively impacting company productivity, the quality of products and services, and customer satisfaction.
Due to the severe economic challenges in Bosnia and Herzegovina (B&H), coupled with unfavorable labor market conditions and the prevalence of bribery and favoritism, the country is experiencing an increase in emigration rates, predominantly driven by the brain drain effect. The widespread corruption undermines the principle of equality in society, exacerbating general poverty and widening the gap between the rich and the poor. Typically, the less affluent members of society suffer more from corruption, as well-connected individuals exploit these conditions to their advantage at the expense of others.
To effectively combat corruption, the initiative must begin with the state itself. The rule of law must be enforced uniformly, applying equally to all, regardless of status. The House of Representatives of the Parliament of FB&H must pass the Law on the Protection of Whistleblowers, and the government should implement a support and reward system for those who report corruption. Although the state has enacted several anti-corruption strategies, these must be continually monitored and updated to close any loopholes that are exploited. The interviewees recommend the introduction of stricter penalties and increased media involvement to ensure the public is informed about corruption cases and their outcomes.
The most effective method to combat corruption in our country, for both companies and individuals, involves improving individual culture and raising awareness of corruption's detrimental effects. The interview results indicate a strong desire for companies to organize anti-corruption training, making employees aware of the consequences of engaging in corrupt practices. Additionally, people should be encouraged to report corruption, with assurances of protection for those who choose to come forward. While corruption has been extensively studied globally, research specific to Bosnia and Herzegovina (B&H) remains scarce and outdated. In B&H, corruption has unfortunately become embedded at various levels of governance—state, entity, and cantonal—making it one of the foremost economic concerns, alongside issues like trade deficits, brain drain, extensive bureaucracy, and entrenched political hierarchies. Given the country’s high and increasing levels of corruption, which are impeding its process of joining the European Union, this issue must receive further academic and practical scrutiny.