Conditions and limitations of reindustrialization as a strategy for getting out of the crisis

Abstract

The strategy of reindustrialization, especially of small countries, is one of exit strategies from the crisis. How long this process will take and what difficulties it will face with depends on the anatomy of the crisis of each country including the entire Western Balkans. The following factors are nominated as limiting in this paper: global processes, unsuccessful transition and inefficient institutions. The specificity of a small Balkan country, Bosnia and Herzegovina and the Republic of Srpska is the macro-economic stability and the insufficiency of public finances that threaten the sustainability of the pension system, health insurance and child protection, all of which adversely affect the economic and demographic picture of the Republic of Srpska and Bosnia and Herzegovina.

Keywords

• globalization
• the Cold War
• sustainability
• transition
• institutions
• macroeconomic stability