BOOK REVIEW: NIKOLA NJEGOVAN (2022) FRIEDMAN’S CHALLENGE

Book Review: Nikola Njegovan. (2022). Friedman’s Challenge. Belgrade: Faculty of Economics University of Belgrade, Centre for Publishing, 207 pages

BOOK REVIEW: NIKOLA NJEGOVAN (2022) FRIEDMAN’S CHALLENGE

Book Review: Nikola Njegovan. (2022). Friedman’s Challenge. Belgrade: Faculty of Economics University of Belgrade, Centre for Publishing, 207 pages

UZROCI USPORENE I NEEFIKASNE TRANZICIJE EKONOMIJE BOSNE I HERCEGOVINE I MOGUĆNOSTI NJENOG POBOLJŠANJA

In this paper, we are investigating the causes of slow and inefficient transition in BiH as well as possibilities for its improvement. In the past seventeen years, the international community has been the strongest integrative power of BiH. Although democratization and market economy are generally emphasized as peace strengthening factors, the market has not succeeded in absorbing resources nor has it provided economic self-sustainability, and democracy has not established institutions to match economic, social and political problems in BiH. This has led to the failure of the fundamental concept of transition set by the international community. The international community should demonstrate its readiness to let domestic politicians take responsibility for the current state of affairs in BiH. Only when domestic politicians have completely taken over responsibility can they become aware of all advantages and all shortcomings of the relationships in BiH established by the Dayton Accord and establish the needed political consensus about the future of BiH. This consensus is the imperative precondition for achieving the functionality of BiH, redrafting the Constitution, establishing a new economic system, conducting a new cycle of economic reforms and accelerating transition.U ovom radu istražujemo uzroke usporene i neefikasne tranzicije u BiH, te mogućnosti njenog poboljšanja. Najsnažnija integrativna snaga BiH u proteklih sedamnaest godina bila je medjunarodna zajednica. Iako se vjerovalo da će demokratizacija i tržišna ekonomija ojačati mir, tržište nije uspjelo apsorbovati resurse i obezbijediti ekonomsku samoodrživost, a demokratija nije uspostavila institucije po mjeri ekonomskih, socijalnih i političkih problema u BiH. Time je osnovni koncept tranzicije, postavljen od strane medjunarodne zajednice, doživio neuspjeh. Medjunarodna zajednica treba pokazati spremnost da prepusti odgovornost za stanje u BiH domaćim političarima. Tek potpunim preuzimanjem odgovornosti, domaći političari mogu spoznati sve prednosti i sve mane odnosa u BiH uspostavljenih Dejtonskim sporazumom i uspostaviti potrebni politički konsenzus o budućnosti BiH. Taj konsenzus je nužna pretpostavka za funkcionalnost BiH, promjenu Ustava, uspostavljanje novog ekonomskog sistema, provodjenje novog kruga ekonomskih reformi i ubrzavanje tranzicije

Development of Small Countries in the Business Environment of the European Union

In this study, we examined whether small countries, when joining the European Union and transferring a part of their sovereignty to the EU institutions, become economically stronger or weaker. We have conducted our assessment based on the index of relative concentration of power (IRC), which was developed for the purpose of this analysis, modifying the Herfi ndahlHirschman Index. Our analysis has shown that in the analyzed period between 2000 and 2015, the relative economic power of small member states of the EU grew stronger, while, at the same time, the relative economic power of large countries weakened. We started from the assumption that small countries, prior to their entry into the European Union, have lower competitiveness due to the relatively higher fi xed costs in the public and private sector. Large single market of the European Union produces relatively stronger effect of economies of scale for small countries compared to large countries, which is why their relative economic power grows faster than the relative power of large countries

Limited Possibilities of Adapting the Economy of Bosnia and Herzegovina to the External Pressures of the Economic Crisis

The economic condition in Bosnia and Herzegovina (BiH) is dependent on the continuous inflow of money from foreign countries. Under the impact of the economic crisis, there is a reduction in foreign donations, remittances from abroad, foreign investments and exports are made more difficult, which threatens its economic and social stability. In this paper, we investigate the influence of external disturbances on the balance of payments of BiH, as well as possibilities of conducting an economic policy which equalizes the real effective and balancing foreign exchange rates. The analysis shows that BiH is open up for an external pressure on the balance of payments since the Central Bank of BiH conducts neither an exchange rate policy nor a foreign exchange reserves policy, and the crisis of the exchange rate and the crisis of the foreign exchange reserves take turns in BiH. In order to reduce the negative effects of the deviation of the real effective and balancing foreign exchange rates, in BiH it is necessary that prices and salaries be flexible and that structural reforms which would increase the competitiveness of domestic enterprises in the foreign market be implemented

Resilience of Small and Medium-Sized Enterprises in Terms of Globalization: an Evidence of Serbia

Resilience can be observed from the aspect of the community, but also from the aspect of the organization. In this study, authors research only organizational aspects of resilience. The goal of these researches is to indicate the significance of the need for improving resilience and determining possibilities for its achievement. Qualitative methods, as well as the extensive literature being a theoretical research frame, have been used for this purpose. Results of our study have shown a tight correlation between globalization level and resilience level, tested for Serbia. In addition, our research indicated that Serbian organizations have a low resilience level. This study has also pointed out that the greatest threats from the business environment for Serbian organizations are big competition in the market and lack of financial funds. Despite, the analysis has simultaneously shown that Serbia in recent years has reached the improvements in the implementation of internal reforms and creation of a more favourable climate for the development of small and medium companies and strengthening of the private sector