Republika Srpska

The Republika Srpska (????????? ??????, RS) is one of the two political entities that compose the state of Bosnia and Herzegovina (the other entity is the Federation of Bosnia and Herzegovina). Republic of Srpska comprises 49% of the land area of Bosnia, but only about 40% of the population. All data dealing with population, including ethnic distributions, are subject to considerable error because of the dislocations caused by military action and population transfers. UNHCR population census conducted throughout Bosnia-Herzegovina in the spring of 1996 (shortly after the end of the war) indicated that the Serbs were 96.8% of the overall population of the entity at that point in time.

Economy

Bosnia and Herzegovina ? and therefore also Republic of Srpska as one of its two entities, has been marked as a country which achieved the major improvement in implementation of the transitional reforms, and therefore has switched from the post conflict phase, to the group of countries in transition. European Bank for Reconstruction and Development, in its report for 2004, confirmed the accomplishment of the microeconomic stability.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Positive dynamic of development in Republic of Srpska is also illustrated by the microeconomic indicators. Inflation that amounted up to 16% at the end of 2000, has reduced significantly since that time and it ranges between 1?2%, industrial production is increasing and unemployment rate is declining slowly. Inflow of foreign investment doubled in from 2000 to 2003, when it amounted to nearly 5% of GDP.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

In 2004, Republic of Srpska received more foreign investments than in all previous years. An agreement on strategic partnership were concluded between the Iron Ore Mine Ljubija Prijedor and the British company LNM, a leading world steel producer. The Russian company Ju?uralzoloto also signed a strategic partnership with the Lead and Zinc Mine Sase Srebrenica.

Related Topics:
British - Russian - Lead - Zinc

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

Since 2001, Republic of Srpska initiated significant reforms in the sector of tax system, which lowered the tax burden to 28.6%, one of the lowest in region. The 10% rate of capital gains tax and income tax are the lowest in Europe and highly stimulating for foreign investors, and there are no limits on the amount of earnings. Increasing the number of tax payers and budgeted incomes, and creating a stable fiscal system, were necessary for further reforms in the fields of taxation and duties; this area is a priority goal of the RS authorities. Introduction of VAT, expected in 2005, is one of the most demanding projects for the government.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

The average salary in August 2004 was 660KM (around 340 EUR). From 1998-2003, the average salary in Republika Srpska increased from 280 to 660KM, according to the Agency for Statistics of Bosnia and Hercegovina.

~ ~ ~ ~ ~ ~ ~ ~ ~ ~