Sabina Silajdžić, a professor at the Faculty of Economics in Sarajevo, commented on her Facebook profile about the FBiH Government’s decision to increase the minimum wage to 1,000 KM without reducing contributions.
Any comment is redundant
– By the decree of the FBIH Government on the minimum wage, to better living conditions for workers!? Um…This isn’t amateurish, this is Monty Python! Indeed, every comment and clarification is superfluous – stated Silajdžić at the beginning of her comment, reports Avaz.
Silajdžić points out that he is not in the habit of looking back at the decisions of the Government (a), individual laws:
– … because indeed, the reforms that have been carried out in this country in recent decades do not deserve the attention of economic scientists. These are vast expanses of stupidity and ignorance. It has been our reality for a long time. However, this time, the Government of the Federation exceeded our expectations. It is simply impossible to fathom the depths of the abyss of amateur management of economic reform processes. The consequences of this Regulation are far-reaching, immediate, inevitable, probable and measurable. In the spirit of what has been said, I would like to ask the gentlemen from the Government whether the inevitable studies have been carried out on this issue:
~ Ex ante Policy Impact Assessment?
~ Cross-sectoral regulatory impact assessment?
In this regard, we would like to refer to the estimated short-term and long-term effects and implications of the implementation of the Regulation on employment, productivity, competitiveness, export performance and economic growth? In fact, we would need insight into the disaggregated sectoral analyses, on the basis of which you passed this kind of Regulation – said Silajdžić.
He also points out that the state would not give up anything here, but would enforce social justice over the minimum.
– In short, ‘the full does not trust the hungry’. The state would not give up anything, but would be happy to enforce social justice through the minimum wage, and the humps of those who do business and economy in impossible conditions!? Allegedly, the Government intends to subsidize the costs of the increase in contributions resulting from the increase in the minimum wage, to small firms and craftsmen!? An impossible mission, except that it is unfounded from a scientific point of view.
To remain poor
It is important to understand that our model of development (transition) rests on the paradigm of specialization to be and remain poor, and now someone would cut with an ax, where and as he likes, under the pretext of social justice. But you can’t explain it to the ignorant. It’s idle talk.
Only by implementing a set of fiscal reforms is it possible to achieve the desired increase in workers’ wages, which must necessarily be accompanied by a reduction in the tax burden on wages, in favor of an increase in labor productivity in the medium and long term. In these undertakings, a neutral effect on the budget is difficult to achieve, without increasing the efficiency of public expenditures. Maybe to restructure budget allocations based on current expenditures?
Hmm…a difficult task – said professor Sabina Silajdžić in her comment.
