While there are some improvements in BiH’s performance compared to 2018, further steps must be taken to build on the work done. Particular attention should be given to strengthening the country’s institutional governance.
The risk of discrimination between foreign and domestic investors continues to be the lowest and is on the same level as last year. It is followed by breach of State obligations which also remains unchanged. Unpredictable policy and regulatory change is the area with the highest risk, though the level has gone down.
BiH has performed moderately on three of the EIRA indicators, and it has a good performance on one. The country has maintained its score of 75 on the indicator regulatory environment and investment conditions and 58 on the indicator rule of law. Foresight of policy and regulatory change has improved by 17 points and now stands at 47. On the management of decision-making processes indicator, it has again scored 46.
On a more detailed level, BiH’s overall sub-indicator performance is moderate. The highest-scoring sub-indicator is restrictions on FDI with 80 points. Management and settlement of investor-State disputes (75), regulatory effectiveness (70) and transparency (67) have received the same scores as in 2018. Communication of vision and policies, which had a low score of 29 last year, has improved and moved up to 56. It is followed by the sub-indicator respect for property rights at 42. Robustness of policy goals and commitments has also improved, from 32 to 38 points. Institutional governance is again the lowest-scoring sub-indicator with 25 points.