“We have broken down the psychological barriers”

ALL SMILES Zlatko Lagumdzija, Chairman of the Council of Ministers of Bosnia and Herzegovina, meets U.S. Secretary of State, Colin Powell, in Washington earlier this year.

In an exclusive interview, Bosnia and Herzegovina’s Chairman of the Council of Ministers, Zlatko Lagumdzija, outlines his vision of BiH’s future.

What have been the prime achievements in the six years since the Dayton Agreement?
Firstly, thanks to U.S. involvement, we have achieved peace. Secondly, we have largely rebuilt the infrastructure: road, rail, power, housing. Our third goal to re-launch the economy still needs time, however, and our fourth aim to create the institutions necessary for normal rule of law and a free market economy involves changing the culture of a society.

Is Dayton the appropriate framework for building a business?
Yes. Take the example of USAID’s training projects here. Their work in government structures, financial sectors and some big companies has produced a very solid banking sector and a new efficient class of bankers and entrepreneurs.

But USAID assistance hasn’t been followed by much U.S. investment. What is holding it back?
The negative image of the country. We also have a very complicated political system. If you want to explain to someone who are the Bosniaks, Serbs, Croats, Muslims and Catholics, what is the difference between a Bosniak and a Bosnian, who has time for all that? We need to project a different image of the country.

You are a moderate. How soon will the reforms the government is working on be noticed by the local business community?
I think they will be noticed more quickly by business people, who see things in the long term, than by ordinary people who are less patient. Reform is always going to be our goal. We will try to pass through the necessary changes as soon as possible.

As Chairman of the Council of the two entities, what can you do to coordinate their efforts to create one economic space?
I think for the first time we have the political will between the entities’ prime ministers and the Bosnia and Herzegovina Council of Ministers to coordinate their efforts.

What are the positive and negative aspects, if any, of the Free Trade Agreement due to take place next year? What do you think that means for Bosnia and Herzegovina?
I think there is a very good prospect for success in the future. We have a trade agreement with Croatia and are putting another one in place with the Federal Republic of Yugoslavia. We have broken the psychological barrier between us.

What are advantages does Bosnia and Herzegovina offer to U.S. businessmen?
We are well prepared for entrepreneurial activities and have a good banking system.