The first year of improvements: Can it become a new trend? Marco Mantovanelli, Country Manager World Bank Country Office in BiH September 9, 2009

Good News! Finally: progress for BH First slight improvement in 4 years Is this a fluke or a sustainable pattern? No negative reforms, but: Still lagging behind neighbors SEE Countries also show slight improvements, but FYR Macedonia top reformer.

Why does business environment matter? 1. Singapore 16. Finland 2. New Zealand 17. Mauritius 3. Hong Kong, China 18. Sweden 4. United States 19. Korea, Rep. 5. United Kingdom 20. Bahrain 6. Denmark 21. Switzerland 7. Ireland 22. Belgium 8. Canada 23. Malaysia 9. Australia 24. Estonia 10. Norway 25. Germany 11. Georgia 26. Lithuania 12. Thailand 27. Latvia 13. Saudi Arabia 28. Austria 14. Iceland 29. Israel 15. Japan 30. Netherlands

Broad effort and systematic approach Improvement in the ranking on the ease of doing business 2009-2010

BH: Overview of rankings Region: Europe & Central Asia Population: 3.9 million Income category: Lower middle income GNI per capita US$: 3970 Ease of… 2009 Rank 2010 Change Doing Business 119 116 +3 Starting a Business 161 160 +1 Dealing with Construction Licenses 137 136 Employing Workers 117 111 +6 Registering Property 144 139 +5 Getting Credit 59 61 -2 Protecting Investors 88 93 -5 Paying Taxes 154 128 +26 Trading Across Borders 55 63 -8 Enforcing Contracts 123 124 -1 Closing a Business 60 -3 FYR Macedonia 32 37 Bosnia and Herzegovina 116 3 Montenegro 71 8 Bulgaria 42 2 Croatia 103 7 Serbia 88 Albania 82 Romania 55 Slovenia 53 5 Most SEE countries still reforming faster

BiH and Southeastern Europe

Highlights - Paying taxes: lower rates but complicated tax procedures

Highlights - Registering property: still improving

Highlights - Starting a business: small improvements, but the effort continues

New in Doing Business 2010: Getting electricity Procedures Time Cost (% of income p/c) Best performers Denmark 3 43 106.2 Germany 17 5.1 Japan 105 SEE countries Albania 5 162 614.5 Bosnia and Herzegovina 10 127 276.7 Croatia 70 319.8 Macedonia, FYR 90 924.9 Montenegro 4 67 409.3 Serbia 81 513.4 Slovenia 38 115.4

2010: Coincidence or changing trend? Finally: slight progress for BH No negative reforms, but: Still lagging behind neighbors Prerequisites for setting a trend Clear, long-term vision (Reform Memo) Stronger commitment & broader efforts More coordination & cooperation More effective communication