Office of the High Representative Speeches

Speech

Remarks by Ambassador Klein

At the opening of the Banja Luka Trade Fair in Sarajevo

Sarajevo, 25 February 1998

I am delighted to be here this morning officially to open this Banja Luka Trade Fair here in the heart of Sarajevo.

It follows hard on the heels the Sarajevo Fair held in Banja Luka in November, which was also inaugurated by the OHR.

That fair was a tremendous success. And I have now doubt that this one will be too.

Let me pay tribute to Vecernje Novine and Nezavisne Novine for all their hard work and initiative in organizing this fairs. You have shown the enterprise and imagination which will be essential in getting the economy of this country working again.

And once again, thank you to the European Commission for its help and support.

This is the first Banja Luka Trade Fair in Sarajevo. But I am sure that it will not be the last.

This fair is a showcase for Banja Luka businesses; a platform for them to exhibit their skills and products.

It is essential that in any market economy that there should be a free exchange of goods and of ideas.

But the market is not just a vehicle for commercial exchange. It goes much wider than that.

Open markets open minds.

Free economics mean free minds. The right to choose. The right to make informed decisions about the future - both for businesses, for investors and consumers too.

But for businesses in a free market to prosper, they must be able to count on a reliable legal framework, and a business friendly environment. They need to know, in short, where they stand.

Until recently, that has been impossible in Bosnia and Herzegovina.

But now things are starting to change. The new government in the RS has brought a very welcome breath of fresh air, as Secretary Albright put it during Prime Minister Dodik's visit to Washington last week.

Where two months ago we wallowed in political stagnation, now we have emerged into more solid - and fertile - political terrain.

Within the last 6 weeks, we have:

- introduced a new license plate, which will make it easier for everyone, including business men and women to travel around the country freely;

- introduced a new flag, which will brand Bosnia's identity around the world, and help you to sell your products overseas;

- we will have, from May, a new common currency;

- and soon the new passports will be available, making it easier for you to travel and do business outside the country.

Each and every one of these steps is good for business and good for jobs.

The convertible Marka, which will circulate from May, will be a strong currency, totally backed by Deutsche Mark in the newly installed Central Bank. You will be able to bank on it in every sense. No risk of inflation, a currency that you can trust, that you can work with.

The new law on the Customs Tariff will be published in a few days and will enter into force in March. For the first time since the war Bosnia and Herzegovina will be a unified economic area.

4 custom tariffs of 0, 5, 10 and 15 % will be applied instead of the 21 at present. A simpler and more modern customs procedure will be introduced to speed your work.

In a few days this country will also have a Foreign Investment law. A set of laws on privatization will be finalized at all levels of the country (State and Entities).

We are not going to stop there. We will work now to improve the internal market, to reform laws on sales taxes and excise duties which are not compatible between the two Entities.

We will identify and solve the difficulties which stand in the way of trade between the Entities.

Bosnia and Herzegovina is ONE country, with full freedom of movement for persons and goods.

I will devote my own efforts to make sure that this freedom is respected.

But I need your help in that task .

I need your help to tell me your difficulties, to join me in casting aside old political attitudes, to join me in tackling old style rigidities and the legacy of Communist command economics.

We need to unleash initiative and enterprise, to burn red tape. Having abandoned what used to be called the 'commanding heights of the economy', we need to concentrate on the everyday problems that affect real people and real businessmen and women like you.

Because you are the future of this country. You hold in your hands the prospects for thousands of families. Their hope for a job. For a better standard of living. For a pay cheque at the end of the week.

Yesterday I was in Banja Luka, where the High Representative signed over the first 15 m DM in financial aid to the RS. There will be more to follow. This aid will bring great new opportunities for reconstruction and development, reconstruction and development in which you will all have top play your part.

So my message is simple, and it is this.

The whole political and economic climate of Bosnia is changing.

The darkness is lifting. The sunlight is staring to shine through and to foster growth and renewal.

Your presence here today represents the first green shoots of that recovery. Our task now is to nurture that recovery, to ensure that in the coming months it flourishes and grows, so that Bosnia takes its rightful place as a prosperous, thriving, successful European economy and European nation.

All of us know that we cannot change the past. We do, however, have control over the future.

Let us build a society where ethnic diversity is seen as a source of strength and men and women are judged by who they are and what they contribute to creating a civil, democratic and open society.


Speech by Ambassador J.P. Klein
Sarajevo, 25 February 1998