ANALYSIS OF BUSINESS RESTRICTION IN BOSNIA AND HERZEGOVINA

The author carried out a profound research of factors which most directly contribute to the level of economic freedom and prosperity of a country. It is treated a large number ofvariables which belong to ten broad cathegories: trade policy, taxation, government interventions in economy, monetary policy, capital flows and foreign investment policy, banking, price and wages control, property rights, regulations and black market. The conclusion of the analysis is evident. Bosnia and Herzegovina is still faced withgreat challenges, but the country is making progress in many spheres of reform. Great efforts are made in improvement of legal and macroeconomic climate. Financial sector isin a phase of reform and privatization is underway. New political structures are strengthening. Serious and violent criminal actions decrease. Internal movement of commodities and people has been again established. Price inflation and public consuption are to a large extent under control.