Bosnia and Herzegovina’s Decline on World Bank Ranking List Raises Concerns Over Financial Regulations
A Slipping Rank: Bosnia and Herzegovina’s Poor Performance on the Doing Business Report
Bosnia and Herzegovina has been on a downward spiral in the World Bank’s Doing Business report for the past four years, with a dismal 89th place out of 190 countries in the previous year. This poor performance is not just a matter of numbers; it also raises concerns about the country’s business environment and legislative framework.
The Decline: A Call to Action
The continuous decline in Bosnia and Herzegovina’s ranking suggests that its legal framework is not creating a favorable business environment. This has significant implications for the country’s economic growth and development. The government needs to take steps to improve the legislative framework and create a more business-friendly atmosphere.
The Importance of Impact Assessment
In recent years, there has been an increasing trend towards regulating the obligations of normative work holders through ex ante evaluation (before adoption) and ex post evaluation (after implementation). The European Union and Organization for Economic Co-operation and Development define impact assessment as a systematic approach to critically assessing the positive and negative impacts of proposed and existing regulations.
The Consequences of Non-Compliance
Experts warn that failure to follow financial regulations can have severe consequences, including:
- Damage to reputation
- Loss of investor confidence
- Economic instability
In Bosnia and Herzegovina’s case, not following financial regulations could exacerbate the country’s already poor ranking on the World Bank list.
A Path Forward
To improve its ranking and create a more stable business environment, Bosnia and Herzegovina needs to implement impact assessments for proposed and existing regulations. This can be achieved by:
- Ensuring that regulations are aligned with international best practices
- Conducting regular evaluations of the effects of regulations
- Making adjustments as needed to improve the business environment
By taking these steps, Bosnia and Herzegovina can not only improve its ranking on the World Bank list but also create a more attractive business environment, which is crucial for economic growth and development.