Bosnia and Herzegovina risks falling further behind the economic and social progress of its neighbours and the wider region, missing out on a once in a generation opportunity to benefit from a post-COVID19 recovery, the UN Resident Coordinator in BiH Ingrid Macdonald wrote in a piece on the situation in the country.

The UN official wrote in a lengthy article that the pandemic “has slowed economic growth in the country, whilst exposing how those who are the most vulnerable and who have the least continue to be left behind.”

“And whilst countries around the world are building back their economies, Bosnia and Herzegovina’s recovery is faltering; hindered by the ongoing political crisis,” she stressed.

After she recalled of the last month's World Bank economic forecast for Bosnia and Herzegovina, predicting the economic growth to half by 2023, Macdonald also stressed that the ongoing political crisis is further undermining economic recovery efforts and access to vital services and social protection for citizens.

She among other things warned that dismandling the indirect taxation system, could “generate sharp drops in tax revenue, increase tax evasion and disrupt foreign debt repayment.”

“Ultimately, it will be the people across the country who will suffer most as the funds to support health, education and other important services dwindle,” she added.

Macdonald pointed out the air pollution hazards that the cities across the region are experiencing, which undermined the health, welfare and economic prosperity of the population, while the implementation of the new Nationally Determined Contributions under the Paris Climate Accords is directly jeopardised by budget cuts and stalled policy.

“The COVID-19 recovery represents a once in a generation opportunity to reimagine the education system, reform the overburdened health system, reposition towards 21st century jobs, promote cleaner and greener energy efficiency and move towards more socially responsive public budgets so that no one is left behind. And whilst 2022 will undoubtedly be marked by continued political wrangling in the run up to the general election campaign, the representatives of the people have a responsibility to prioritise urgent social and economic recovery and reforms that benefit all citizens,” the UN official noted.

She stressed that the leaders and institutions of Bosnia and Herzegovina have no time to lose.

“Fostering sustainable, inclusive and socially responsible economic growth is a core responsibility of the institutions of Bosnia and Herzegovina. With thousands and thousands of citizens leaving the country every year in search of better prospects abroad, and an estimated 47 percent of young people considering leaving the country, socio-economic recovery cannot simply be ‘left for later’,” Macdonald added.