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Mr. Faruk Hadzic's virtual visit

In a series of visiting experts and well known persons from the public life  RCSDI was hosting PhD candidate Faruk Hadzic, the well-known Bosnian economist expert presenting his  lecture on COVID19 before and after economic development.  In his presentation about the economy of BiH prior to and after COVID19 crises Mr.  Hadzic emphasised a few points for consideration and informed the members about the facts and status of the economic process in BiH. The members become more familiar with the instruments of economic policy, particularly with the income policy, parafiscal charges,  tax burden etc.  Mr. Hadzic explained in detail a tax burden, in his opinion  very important element for the BiH socioeconomic development. Tax burden on the average income sums up to 40%  with the further burden on net income with VAT and excises going up to more than 50% of it to the state. This type of policy is not obviously encouraging at the personal level.   Consequently at the state level policies are equally discouraging. Before COVID19 facts of socioeconomic development speak for themselves: slowed economic growth around 2% of GDP, Increased foreign trade deficit of 669 million KM, 5.5% drop in industrial production,  an increase of 15.000 of new pensioners in 2019,  153,000 emigrants to the EU (2014-2018), a decrease in the number of enrolled students by 19.87% (2014-2018) and reduced number of pupils in secondary schools by 18.15%, and in primary schools by 5.83% (2014-2018). During the  COVID  the situation deteriorated with  31,000 person losing their jobs, decline in tax revenues of 259 million KM, consumption falling by 1 billion KM while  GDP fell by 2.5 billion KM in April, with a decline in turnover in FBiH through fiscal devices by 1.5 billion KM. Vivid discussion after the lecture brought up several important questions. In answering them  Mr. Hadzic was insisting on a few economic measured to be implemented after COVID19 crisis, like debt sustainability, planning for 500 million EUR over the next five years for pensions as well as  the need for economic reforms and the introduction of digitalization and regional cooperation for BiH.   Faruk Hadzic is a MSc in International Economics, Macroeconomic analyst and Consultant and a PhD candidate in field of the Economic Theory and Policy.As a macroeconomic analyst, he analyzes economic indicators and provides expert opinions, comments and suggestions about economics of B&H.  He has received one Gold and two Silver Plaques from the University of Tuzla for success during his studies. He is a member of the World Economic Association and the Post-Keynesian Economic Society
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