Economic Report

I’ve brought along copies of the OHR’s monthly Economic Report. As you know,
the Report offers a snapshot of the BiH economy by highlighting key indicators –
money supply, trade figures, currency, employment figures and stock-market
indices.

As you will see, November continued a trend of substantial export growth that
has been evident since the beginning of 2004. Imports grew by just over two
percent, while export growth topped 19 percent. This is a welcome and
significant trend – the trade balance is still seriously skewed, with BiH
spending more than it earns, but the gap between exports and imports is
narrowing. This will have a clear and positive impact on citizens’ lives – as
BiH companies increase their sales abroad they are able to create more jobs at
home.

An even more dramatic increase was recorded in the
November turnover of the

Sarajevo

and

Banja Luka

stock exchanges. Turnover
on the

Sarajevo

bourse rose by more
than 50 percent and in BL the increase was above 60 percent. This reflects
growing investor confidence in BiH shares. Both markets remain small, and the
actual turnover figures are modest – but the November figures show that the
markets are beginning to channel capital in an efficient way into companies that
are perceived as having real commercial potential. Again, this has positive
implications for citizens – because when these companies are adequately funded
they can expand, boost sales and create jobs.

Protecting the Cultural Heritage of BiH and all its Peoples

Also, I would draw your attention this morning to a letter that was sent over
the weekend to individual members of the Council of Ministers by the High
Representative. In his letter the High Representative draws attention to the
present difficult situation of the seven cultural institutions of
Bosnia and
Herzegovina.

These are the

National

Museum

,
the

Museum of

History

, the

Museum of

Literature

, the

BiH

Art

Gallery

,
the National and University Library, the National Library for the Blind and
Vision Impaired, and the National Film Archive.

Under the Dayton Peace Agreement the State has an obligation to maintain
these institutions. However, due to an anomaly in the budget mechanism, they
have had to operate without any BiH funding since the end of the war. As many of
you will know, the

National
Museum

and the
Museum of

History
have recently had to close
due to lack of funds.

In his letter, the High Representative makes the point that the issue is not
simply one of public amenities.  These institutions are repositories of the
cultural heritage of BiH and all its peoples. Documents and artefacts that
testify to this heritage – a priceless component of European culture – are now
in danger of being damaged because sensible provision for their upkeep has not
been made. Schoolchildren and students from all over the country are unable to
make use of these resources – which would be major teaching tools in any other
country – because they are not being properly run. And these institutions are
not being used – as they should be being used – as valuable resources in the
tourism sector and in projecting a positive image of BiH.

In his letter the High Representative urges the Council of Ministers to take
whatever measures may be necessary to ensure that funding of BiH’s seven
cultural institutions is allocated in the 2005 budget.