Investment climate, economic recovery and reconstruction process: The bosnian case Ekonomik rehabilitasyon süreci ve yatırım çevresi: Bosna hersek örnegi

Hacıoğlu Ü., DİNÇER H., Erkan Çelik İ.

Bilig, vol.74, pp.97-123, 2015 (SSCI) identifier

  • Publication Type: Article / Article
  • Volume: 74
  • Publication Date: 2015
  • Journal Name: Bilig
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, TR DİZİN (ULAKBİM)
  • Page Numbers: pp.97-123
  • Keywords: Bosnia and herzegovina, Conflict, Economic recovery, Investment climate, Reconstruction, World bank
  • Istanbul Medipol University Affiliated: Yes


Following the Dayton Accord in 1995, Bosnia and Herzegovina’s economic infrastructure and 90% of its assets were destroyed according to World Bank estimates, and the estimated cost of this is about $20 billion. By the end of the war, the unemployment rate reached 90%. The World Bank and Non-governmental Organizations (NGOs) had an active role in the region to restructure the economy, and the unemployment ratio declined to around 30% following rapid economic growth. Studies illustrate that conflict, by its very nature, negatively affects the investment climate and the prosperity of the country. There is also a link between the unsatisfactory income levels and the risk of future conflicts. At conflict areas in the Balkans, international military action ensured short-term peace and stability particularly in Bosnia and Kosovo although long-term security and peace require economic stability and an active economic restructuring. In this study, the economic recovery and restructuring of Bosnia and Herzegovina have been analysed and the difficulties for the private sector are discussed. In addition to this, the contributions of the World Bank and NGOs in the recovery process are evaluated.