One can take for granted that neither entity can function efficiently as a separate region, as their internal markets are too small. Nevertheless, the country has been effectively divided, and even links between units that are complementary from an economic point of view have been broken. In this context, the phenomenon of unequal regional development and the question of fiscal transfer mechanisms within the country further complicate the matter. Social insurance systems established before the war have been preserved. Crucial problems of coverage exist in the health care sector, since only those paying contributions are formally entitled to receive benefits.
Social benefits are extremely low, and unpaid pension arrears are increasing.
It is estimated that in the region of Banja Luka alone, some 10,000 pensioners receive a pension of less than DM 40 per month. Many aspects and problems dealing with the possible future strategy of reform in social policy were identified. The tripartite constituents certainly require further careful assistance in the form of technical advisory services. KH, MR Go back to Table of Contents , Newsletter archive or ILO-CEET homepage .