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Peace and reconstruction in 1996 dramatically altered the landscape of Bosnia and Herzegovina (BiH) and brought many tangible benefits to its people. Sustaining and broadening the positive developments of the past year will be the key task for the country and the international community in 1997-98. This report looks at the near-term reform issues that are essential to generating employment and providing a firm institutional and policy foundation for reconstruction and sustained economic growth. Key areas of focus include policies and expenditure reforms, including institutions for macroeconomic management, bank and enterprise privatization, and pensions and the social safety net. The report concludes with a discussion of BiH ' s medium-term growth prospects and financing requirements.
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