Prepared by Graham Slack.
This section builds on and extends work undertaken by Mr. Bob Etherington and colleagues at the World Bank.
See World Bank, Report on Observance of Standards and Codes, Accounting and Auditing, October 2004.
The notable exception is the financial industry.
Key industries in Bosnia and Herzegovina were organized under a vertically integrated business model managed by holding companies. SIPAD, UPI, and UNIS for instance managed the entire production of timber, agriculture, and metal-related products, from raw material through to finished product.
Fictitious workers continue to accrue wages and benefits despite not turning up to work for long periods of time.
See Chapter 5.
World Bank, Anti-Corruption in Transition 2, Corruption in Enterprise-State Interactions in Europe and Central Asia 1999–2004, 2004.
During IMF Staff interviews with executives of a number of recently privatized enterprises, most responded negatively when asked if, with their current knowledge, they would invest again in Bosnia and Herzegovina. Most saw neighboring countries as more attractive business locations and some acknowledged plans to relocate unless the business environment improved.
By contrast, the 1998 restructuring program for Polish coal mines forgave liabilities incurred to government only when, inter alia, restructuring plans were implemented, and timely payments were made on obligations to government agencies.
See Chapter 6.