Abstract The banking sector assumes a pivotal role in the economic development of nations. The assessment of financial indicators pertaining to banks holds fundamental importance in the evaluation of bank stability and sustainability. This research employs the MEREC (Method based on the Removal Effects of Criteria) and MARCOS (Measurement of Alternatives and Ranking according to COmpromise Solution) methodologies to delve deeper into the financial landscape of the banking sector in Bosnia and Herzegovina (BiH). Specifically, the objective is to rank banks according to their financial indicators, utilizing financial data from the year 2022. The MEREC method is applied to gauge the significance of financial indicators and ascertain their respective weights, while the MARCOS method is employed to rank banks within BiH based on their financial indicators. The examination of financial indicators within the BiH banking sector, facilitated by the MEREC and MARCOS methodologies, yields a more comprehensive understanding of the sector’s present condition. Limitations of this research, which primarily stem from its reliance on available financial data and predefined methodologies, lies within limited consideration for external factors. To provide a broader contextual perspective, the inclusion of additional financial indicators and comparative analyses with banking sectors of other nations would be imperative. The findings of this research reveal that Raiffeisen Bank exhibits the most favourable financial indicators and demonstrates the highest level of efficiency within this context. Consequently, this research offers insights into identifying exemplary banks that can serve as models for enhancing the performance of others.

BILATERAL PROJECT REPORT IMPACT OF QUARANTINE DUE TO COVID-19 ON THE MUSIC INDUSTRY IN SLOVENIA AND BOSNIA AND HERZEGOVINA

Abstract Ova Studija nastaje u vremenu potrebe za rekonstrukcijom, adaptacijom, popravkom i unapređenjem inženjerskog naselja (Bungalovi) Mješovitog Holdinga “ERS” MP a.d. Trebinje ZP “ Hidroelektrane na Drini” a.d. Višegrad, u naselje koje će biti na mapi turističke ponude Višegrada. Turizam Višegrada je u ekspanziji, raste tražnja za turističkom ponudom. Geografski položaj Višegrada, ćuprija na Drini koja je vezana za nobelovca Ivu Andrića, zatim od nedavno Andrićgrad, kao i blizina Zlatibora, doprinose da Višegrad bude veoma interesantna turistička destinacija. Cilj inoviranog naselja jeste profit, koji će ovo preduzeće ostvarivati putem izdavanja bungalova zainteresovanim turistima. Mješoviti Holding “ERS” MP a.d. Trebinje ZP “ Hidroelektrane na Drini”, a.d. Višegrad, uradilo je sve pripreme za adaptaciju istog, tj. naselje se priprema za turističku ponudu. Godina 2023. jeste godina kada se očekuju intezivni radovi na ovom projektu, odnosno godina završetka najvećeg dijela radova. Finansijska sredstva za rekonstrukciju i adaptaciju istih,od strane nadležnih organa ovog preduzeća, odobrena su planom nabavki za 2023. godinu. Ekonomsko finansijska analiza i istraživanje tržišta, kao sastavni dijelovi ove Studije, pokazuju da je racionalno i ekonomski opravdano ulaganje u rekonstrukciju, adaptaciju i popravku bungalova, s ciljem da postanu sastavni dio turističke ponude Višegrada. Na osnovu Studije može se zaključiti da bi bilo neopravdano da naselje služi samo za izdavanje, znajući da je većina gostiju zainteresovana za usluge SPA centra. Zato ova Studija predviđa izgradnju i SPA centra, sa korištenjem termalne vode koja se nalazi u neposrednoj blizini, što zasigurno može biti komparativna prednost ovog naselja.

Abstract COVID-19 had undoubtedly speeded up adoption of digital technologies. Most of the theoreticians agree that changes that happened in the pandemic period would not happen in the next several years or even decades. There is almost no business operation that has not been affected by the pandemic, from customer relation and sales to supply chain. It influenced different business sectors leaving permanent change and making a significant proportion of organizations working in at least hybrid mode: combining digital and traditional pre-pandemic ways of working. COVID-19 had significantly changed the workplace and way of working. Workplace has shifted to digital or at least hybrid and employees and companies have adopted new ways of working, including usage of digital technologies but also accepting more agile and flexible procedures and rules. The research community has followed this phenomenon and tried to provide best possible recommendation to it accordance to recognized research methods. The paper provides a systematic literature review of the most significant scientific and industry publication in the years after the pandemic start. It is based on Kitchenham methodology of the systematic review with selected publication from recognized bibliographic databases. First part provides general effects of the pandemic to digital transformation of businesses all over the globe, mostly connected to analysis of the employees’ workplace preference. The second part is focused on digital workplace transformation and presents key theoretical and professional findings in the post-pandemic workplace. This part is consisted of the preview of benefits of the digital workplace transformation, identification of critical success factors and the most significant challenges of the process.

Abstract The Logistics Performance Index (LPI) performed by the World Bank is an indicator of the logistics environment quality of a country in which logistics operators act. The LPI is an interactive tool designed to help countries identify challenges, innovative solutions, and opportunities they face in their work in the field of trade and logistics. The aim of this paper is to conduct a comparative analysis and ranking of the LPI of the countries in the Western Balkans (Bosnia and Herzegovina, North Macedonia, Albania, Serbia and Montenegro), calculated by the World Bank for 2018, using an integrated Criteria Importance Through Intercriteria Correlation (CRITIC)-Measurement Alternatives and Ranking according to Compromise Solution (MARCOS) model and thus show the real picture of the logistics environment. In order to determine the performance of countries and show the overall logistics performance, six key dimensions are used: customs, infrastructure, international transport, logistics capability, tracking and tracing of goods and shipment delivery within scheduled or expected times. Using the CRITIC method, the weight values of the previously mentioned six criteria were calculated, whereby the criterion related to shipment delivery within scheduled times was singled out as the most significant criterion. Then, by applying the MARCOS method, the countries of the Western Balkans were ranked on the basis of the six defined criteria. Based on the results obtained, the best-ranked country is Serbia. The analysis of the sensitivity of the results to changes in the significance of the criteria does not show significant changes in the ranking.

The paper addresses and evaluates the currency boards’ policy and assesses whether the economic development of Bosnia and Herzegovina is the function of currency boards, as a form of monetary policy. In this context, a hypothesis that the currency boards provides the foundation for growth and development of a transition economy is being put to the test. To test the hypothesis, the paper compares the movement of economic growth indicators (gross domestic product) among the countries of South Eastern Europe with the primary focus on Bosnia and Herzegovina. By comparing the obtained results, as well as by applying the correlation and regression analysis, by means of simple linear regression, it is proven that the currency boards do not represent an obstacle to economic growth, but is the basis for establishing the stability of the economy and the basis for sustainable growth and development able to adequately respond to shocks.

Abstract Background: The world tourism industry is subject to big changes. A number of tourists traveling steadily grows, resulting in turnover and income. The destinations, that tourists are attracted, to are numerous, and there are also newcomers who arrive to a certain destination for the first time. Nowadays, even some very distant places are on the travellers’ bucket lists. What is more, tourists are looking for authenticity, in terms of which the concept of ethno village proves to be such an example. Purpose: The purpose of this paper is to investigate how this kind of tourism is regulated in Slovenia and Bosnia and Herzegovina. The emphasis will be on the study of specific ethno villages. Methods: Regarding the article, desk analysis will be done. The data were gathered from the world web, from the World Tourism Organisation’s data and from the data gathered from Slovenian and Bosnian national statistical office as well. The Excel was used for the analyses. Two examples of an ethno village are also described. Results: The ethno village as a part of rural tourism offers great opportunities for new work posts but capacities should be used to a greater extent and the problem of seasonality should also be overcome. All the key aims of rural development must be defined by the following strategy: the development of sustainable and efficient agricultural sector, the living standard of the population who lives from agriculture, creation of social and economic conditions in the rural regions; all of it within the National strategy of the rural development. Conclusions: Tourism industry is being developing as a part of modern touristic migration. There are more and more visitors coming overseas or coming from more remote places. They stay for a short period of time and they have different expectations as before.

Abstract The subject of this research are the demographic trends and the educational system of the Republic of Srpska. The aim of the research is to define the concepts required to comprehend the demographic trends and to explore their implications for the educational system of the Republic of Srpska. In order to establish sustainable development in the Republic of Srpska, education being a key component therein, it is necessary to perceive its demographic resources in order to create an educational system. By means of empirical research with a presentation of results through factor and cluster analysis, generated quantitative and qualitative indices of demographic resources, particularly in the educational system. The Republic of Srpska as a whole belongs to type D, featuring poor demographic resources and characteristics, as well as prominent demographic disparities regarding spatial development. However, in order to increase the coverage, relevance and efficiency of completion of the education process, it is necessary to determine the strategic commitments to be accomplished together with certain quantitative demographic indicators of the achievement level (educational coverage of different generations). Demographic changes will pose a major challenge for policy makers and to the society in general across the upcoming decades and will require shaping new economic, tax, health, pension, educational, social, family and other policies that affect demographic changes. The research endeavour in this paper focuses on that very aspect, together with the respective applicative capabilities.

Abstract The main purpose of the paper is to address the effects of digital transformation in the telecommunications markets which are characterized by network externalities. By acknowledging disruptive effects of digital transformation age, the paper highlights challenges which were created by advancement of technological capabilities. The specific aim of the paper is to present a methodological framework for measuring the information society. The research will be based on an analysis of the number of subscribers by types of telecommunication services, in developed and developing countries, in the last two decades. In this regard, increasing the number of subscribers leads to higher value of the selected network. We expect confirmation of both hypotheses respectively (H1: Digital transformation affects the simultaneously continuous growth of the number of subscribers and the continuous decline in prices of telecommunication services; H2: There are similar trends in developed and developing countries, which are related to the number of the telecommunication services subscribers). Therefore, digital transformation and the effect of network externalities contribute to increasing the number of subscribers, reducing the number of networks (distortion of the market competition) and reducing the prices of telecommunication services.

Aim of this paper is to, by means of comparative analysis, demonstrate that contemporary pension systems are limitation factors of development of the Republic of Srpska, and that they should be reformed and improved. Ultimately, pension systems should be the basis for development of the Republic of Srpska. They should significantly improve strengthening of financial markets, enhancement of capital markets, higher growth rates of the Republic of Srpska, idecrease of unemployment. Private pension funds are to change the habits and ideas of every future insurance holder, aiming to make the pension rights a matter of concern of every individual, instead being the obligation and ballast of the society. Today, stabile financing of pension systems and their funds is becoming increasingly questionable. A gap is emerging between the area of rights gained by law and financial possibilities for their implementation. Pay-as-you-go (PAYG) systems, i.e. systems of inter-generation solidarityare particularly endangered. Adequate systematization of gathered data, i.e. evidence, should provide conclusions that pension systems are a limitation todevelopment of national economy. This claim is present in underdeveloped and developing countries, with developed economies also facing grave problems.

Numerous theoretical and empirical evidences confirm the assumption that more competitive markets are followed by raising the level of efficiency. The aim of this paper is to consider to what extent are efficient goods and labor markets in the efficiency-driven countries, such as Western Balkans. Intense competitive pressure both by domestic and foreign companies, and demand conditions determined by customer orientation and consumer sophistication, have great importance in acceleration labor market efficiency. The delicacy of the measuring of the competition and demand conditions on goods market completes an empirical review of the achieved results in labor markets in 2018 in Western Balkan countries. The multicriteria analysis was carried out in order to rank countries and highlight those which have achieved remarkable goods and labor markets efficiency in the overall order of the countries. The obtained results suggest significant gaps and cyclical deviations from the regional average, related to goods market efficiency gaps, observed by selected indicators and countries. Problems in the fields of domestic competition, foreign competition, and insufficient quality of demand conditions in the individual markets, imposed the need to compare the comparative disadvantages and advantages in the Western Balkan countries. The comparative study can serve as a guide for defining future labor market policies due to it has been proven that countries with more efficient goods market have more favorable labor market indicators.

Target research in this paper is the assessment and analysis of content of digital progress and its impact on modern business. Business digitization has been introducing increasingly dynamic changes across the entire global economic sphere, whereas its content increasingly maintains to affect the competitiveness of national economies. At the microeconomic level, digital technologies lead to a change of economic structure and quality of production factors, based on knowledge and innovations. This paper should provide specific answers on how to apply new technologies and digital techniques in a quality manner within the knowledge economy. This is not the only answer provided in this paper. On the contrary, the paper shall respond to question how to minimize the risks of all kinds, in order to increase labour productivity. The immediate objective of this paper is to adequately locate and understand the problem of economy digitization and the changes it brings, as well as to provide specific ideas and practical solutions for better and more efficient business operations. The new information, i.e. digital economy fundamentally differs from the traditional ones. This very synergy of workforce, its emergence in such manner, as well as increase in its presence, will be the biggest challenge to what we now call the digital economy. The IT revolution and communication technology affect the development of the new economy on a global scale, which significantly contributes to the modern business. The impact of digital growth on modern business should be reflected in increased productivity, knowing that the increase in productivity is a key issue in any economy, including the digital economy. Increasing productivity implies an increase in the results achieved with the same consumption of resources or achieving the same results with less consumption of resources. Numerous studies have been performed on this subject at the global level, demonstrating that there are serious analyses and research that show exactly how much the investment in IT does actually increase productivity. It is believed that the majority of the growth in productivity since 1995 to date is to be primarily credited to investments in information technology and business process automation. Increasing productivity is evident almost anywhere: in individual companies, industries and economies, which actually represents the essence of modern business activities.

To present the status and development of economies of the countries, a number of macroeconomic indicators is available and used and the most important aggregate in the system of national accounts is the gross domestic product (GDP). An analysis of GDP serves to present the status and trends of the economy of Bosnia and Herzegovina (BiH). We have used the comparison method, in order to establish the status, as well as trends in the economy of BiH in comparison with the neighbouring countries with similar GDP structures and with economies of some developed countries. We note that the structure of gross value added (GVA) in BiH is not primarily oriented towards profitable activities, nor towards activities giving a synergistic effect on the entire economy. The service sector is not sufficiently developed. GDP per capita in 2015 was almost eight times lower than the one recorded in the EU member countries. The relationship between consumption and investment, in addition to the negative balance of trade, are negative determinants of the BiH economy. The global crisis has produced negative effects on the BiH economy. Such trends were imminent even in the developed countries, the only difference is that the developed countries, by size of their GDP per capita, are far stronger and more developed than the BiH economy. The economy is small in its size and growth rates are not sufficient to provide a visible progress, as is the case with developed countries. BiH needs to put maximum efforts into increasing its value added in areas that are fast and strong in contributing to the growth and development.

This is a global financial and economic crisis, which can be considered the largest since the World War II. It has become a frequently discussed topic for various analysts, numerous governments, and in particular, a favourite topic of the media. We can rightly say that this is a crisis of the neoliberal system, as an atypical model, which has greatly increased the wealth of the rich and impoverished the poor. For that reason, the crisis can be overcome by changing the system. Therefore, the directions and guidelines are required in order to define goals for resolving the crisis. The defined key objectives must be accompanied by specific sub-objectives, followed by establishing certain policies, which will help the realization of these goals. We need to promote and implement policies that will assist in accomplishing the defined goals, such as the following policies: industrial policy, fiscal policy, monetary policy, regional development policy, public administration policy, and social policy.