IS THERE AN ECONOMIC BACKGROUND TO THE SOCIAL UNREST IN THE FEDERATION OF BIH?

Abstract

UDK 323.233:338.2(497.6)

Social turmoils, particularly those of more intensive character, are generally the result of the whole set of causes. Recent events in BiH are also of “cause and effect” nature. The aim of this article is to evaluate some aspects of this cause and effect relationship in BiH through economic- theoretical analysis. Is there some kind of a pattern in relations between financial conditions and status of the population on one side, and the unrest on the social scene of cantons of the Federation of BiH where the protests were largest on the other, wherefrom we could determine the first as to be the cause and the later as the consequence? How to consider material damage in short-term period and how in long-term period? These are some of the questions we tried to answers, supported by the arguments based upon the economic analysis offered within this article along with quotations of the reports from these events. The general conclusion of the article is that the damage that was done is not insignificant and as such, if not restored, could be multiplied. Analysis shows that unemployment can also be the cause of the social unrest. This could lead to a vicious circle with very bad future prospects. Therefore, it is imperative that the decision makers urgently take adequate measures with the aim of improving the situation, primarily in the field of unemployment.