Global Economic Crisis as an Opportunity for

Abstract

A current global financial and economic crisis, most severe crises since year 1929, has shown that resource based economies such as Bosnia and Herzegovina, severely suffer the consequences of the slowdown of world economy. The conditions of foreign trade have worsened, especially for our export structure which consists mostly of raw materials and semi-finished goods. However, the world economic crisis helps in further clarification and stressing of our biggest problem - huge lack of intellectual capital in Bosnia and Herzegovina, which weakens the competitive potential of local companies and the overall economy. This conclusion came as a result of analysis done by Value Added Intellectual Coefficient - VAIC methodology that measures Intellectual Capital, developed by Professor Ante Pulic from Croatia. The results of the analysis show that Bosnia and Herzegovina does not use its potentials - education system, scientists, entrepreneurs, etc. - enough and, in that way, miss the opportunity to be competitive at the international market and enhance its development and income. Some predictions say that after this economic crisis, globalization could be less focused on the liberalization of goods and capital flows, and more on liberalization of flows of knowledge and ideas. Accordingly, the best way, globally speaking, to overcome this bad position is to provide good conditions for the production of goods and services, with high added value, based on knowledge. The challenge facing Bosnia and Herzegovina is building the competitiveness trough systemic acquiring, usage and transfer of knowledge and stimulation of innovations in the economy and whole society. Recommendations suggested in this paper - improvement of intellectual capital in the economy, improvement of education, creation of institutional framework for innovations stimulation and technology transfer, and improvement of business climate - are some of the important measures to create knowledge economy. However, for the realization of these measures common action of all key actors in the society is needed: the government, business community, educational and research community and civil society. ABSTRACT FROM AUTHOR