INTERVIEW: MARKO ŠANTIĆ, PRESIDENT OF FBIH CHAMBER OF COMMERCE
Interviewed by: Erdin HALIMIĆ
SARAJEVO, March 26 (ONASA) – The president of the FBiH Chamber of Commerce (FBiH CC) Marko Santic in an interview for ONASA Agency speaks, among other things, about the priorities of the FBiH Chamber of Commerce, membership in the chamber system of FBiH, cooperation of the FBiH Chamber and the cantonal chambers, the current state of the economy in the FBiH, cooperation of the FBiH Chamber and the FBiH Government …
ONASA: What are the priorities of your work, as the new President of the FBiH Chamber, in the coming period? What steps can be taken to establish a better image of the Chamber?
ŠANTIĆ : My priorities for future action, as president of the Chamber, and as well as my team’s priorities are contained in the program of work for the mandate period 2014 – 2018, and include certain activities that are directly related to the support of competent authority in FBiH, activities related to the work of the Foreign Trade Chamber of Bosnia and Herzegovina, but of course engagement of all employees in the FBiH CC, shortly we have put before ourselves several tasks, primarily including:
Creating a favorable environment for the economy of the FBiH.
This task will be implement on two levels. One level is the work of the organs and bodies of P/GKFBIH, and the second is strengthening the reputation of FBIH CC and its impact on all levels of legislative and executive authorities in the FBiH and Cantons during the preparation and adoption of legislation that touches on the domestic economy.
Reconstruction of the chamber system and public authorities.
Since the adoption of the Law on Chambers of Commerce in the FBiH is expected in the coming period, it is necessary to complete a few things:
The restructuring of the existing system of chambers in the FBiH and the continued consolidation of its own in terms of the appropriate membership, and the provision of funds for financing activities;
Reconstruction and better organization of professional associations and their organs, in accordance with the requirements of membership;
The regulation of relations between the chambers in BiH and the FBiH in terms of the division of labor by the authority established laws and coordination of activities.
Mitigation and stopping the effects of the economic crisis in the economy of the FBiH in cooperation with the FBiH Government.
Given that the BiH economy has long been affected by the financial crisis, the Chamber will focus its activities on proposing measures for its overcoming in order to:
Improve the offer of funds to the economy through the creation of new credit lines especially for export-oriented economy;
Intensify prevention of unfair competition of imported goods through the quality control of imported goods and evaluation for releasing products on the market of BiH as well as the application of of permitted protection measures.
Promotion of the Economy of the FBiH and FBiH CC at home and abroad and publishing activity.
This task will have a continuous promotional activities in two directions.
One direction will refer to the promotion of the overall economy in the FBiH, and the other would be the promotion of FBIH CC and the creation of its new and recognizable image.
Promotion of the economy by the FBIH CC, in cooperation with economic operators will be carried out through presentations at trade fairs, economic scientific and professional meetings and other events and economic events in the country and abroad.
The promotion and internationalization of SMEs.
Significant activities related to improving the environment for small and medium enterprises (SMEs) will relate to the analysis of the impact of measures and programs for the development of this sector and proposal of measures for improving the position of SMEs, and directing them toward productive and technologically advanced sectors.
We will try to encourage the formation of clusters, organizing seminars, training sessions and workshops for the establishment of new and improvement of existing SMEs, stimulating the introduction og quality systems in SMEs, organizing research of foreign markets and their potential, counseling SMEs for performance and strengthening relations in foreign markets, participation at international fairs and specialized exhibitions at home and abroad and initiating development, amendments to the law essential for competitiveness and export orientation.
Being the center for support of the economy on the path towards EU integration.
The aim of the FBiH CC is to contribute to the preparation of enterprises to enter the EU market, through increased competitiveness, investment in new skills and technologies, application of standards, with new partners and maximizing the use of the advantages of CEFTA Agreement, and the Stabilisation and Association Agreement.
For this purpose, the Chamber has established the Center for International and cooperation with EU funds.
Professional associations and their sectoral activities.
For the overall work of the Chamber as economic association, it is important to organize the work of professional associations.
Professional associations, organize their work and activities in accordance with the program of activities, which are the result of the interests and demands of members.
Their interest in particular activities are most effectively achieved and can be achieved just through the activities of professional associations and their bodies.
The image is, in simple terms, defined as a certain perception, attitude or set of opinions about something.
All this I mentioned in answer to your first question, is redesigning or creating a new image of the Chamber.
If we, in the Chamber, fail to achieve the set goals and if we communicate in an adequate manner with the general public, perception, attitude and the opinion of that public about the Chamber will change and it will, I hope, be the image of a strong public-economic institution which is at all times ready to be of service to the whole economy of the FBiH.
ONASA: Can you specify the exact number of members of the FBiH CC and which actions will be taken by the Chamber in order to increase the number of members?
ŠANTIĆ : Membership in the Chamber, comes out of the production – industrial sector, energy sector, agro-processing sector, the sectors of trade, tourism and hospitality industry, the financial sector, so if we look at the structure we can certainly be satisfied.
However, the number of Chamber members is devastating.
Ever since of 2003, when the infamous “Bulldozer Commission” abolished compulsory membership in the Chamber, there is a clear trend of decline of Chamber members and it is now reduced to just over 100 members.
The new membership and new members of the Chamber can only be attracted with quality.
What do I mean by this? Of course, if one does not have compulsory membership and is not on a budget, one needs to think how and in what way, in the present conditions, can new members be attracted.
The only way to achieve this is through quality and timely service of businessmen in terms of adequate articulation of their needs and requirements of the executive and legislative power, their interconnection to the internal market and helping the appearance on third markets.
If quality improvements are made in these three fields of future activities of the Chamber, membership will not be an issue, and I, as president, will be convinced that most of the goals that I put before myself in the future mandate period, is achieved.
ONASA: What are the strategic objectives of the FBiH CC on networking with cantonal chambers in order to achieve better cooperation?
ŠANTIĆ : Relationships within the chamber system of the FBiH have not been completely sorted out.
I see the chamber system as a system of the FBiH and regional chambers with clear individual responsibilities, the system that has a coordinating mechanism in the form of an informal body, for example, the Chambers Collegium and the system which elements need to cooperate in almost all segments, to help the economy on domestic and on the third markets, but also as the system that will serve as a bridge between the economy and government at all levels.
In recent weeks the Vice President and I have extensively visited the cantonal chambers, their governments and we have regular visits to five-six companies in the area that we visit.
The strategic objective of the FBIH CC, and all cantonal chambers is the adoption of the new Law on Chambers in the FBiH to clearly define the relationships between the chambers and of course the necessary funds for the basic functions of the chamber system, with the aim of better servicing the entire economy in the FBiH.
ONASA: Can you assess the current state of the economy in the FBiH, or which are the most promising sectors of the economy? What are potential problems businessmen in the FBiH commonly encounter?
ŠANTIĆ : The assesment of the state of the economy in the FBiH is not difficult to make. We are witnessing many problems that all actors in this country encounter, starting from businessmen, government at all levels, employees, unemployed, pensioners, etc.
What we need to start from is the new economic policy in the country.
The current economic policy was not created in the country, nor was it suited for BiH as a young, small and transitional country that from the feudal society entered the society of a “agreed” and for a long time closed economy and the country that has suffered enormous ravages of war and destruction of a little that was worth and on what could be based a future economic policy of the country.
It is therefore necessary to create a new economic policy that will be based on the re-industrialization, a new approach to agriculture, new energy policy and strengthening parts of the service sector, in the first place I think of tourism (winter, rural, extreme and religious).
These days, from different areas and different industries we are receiving certain requests towards the FBiH and cantonal levels of government, and they go in the direction of unburdening of the economy with less necessary para-fiscal levies, unburdening and in terms of allocations to and from salaries, redefining the VAT and the requests for various infrastructure projects, in order to create general favorable business environment.
ONASA: In your opinion which are companies that represent an example of good business in the FBiH?
ŠANTIĆ : There are, of course, and great examples of business in the FBiH, and we can certainly call them economic miracles of the country, given the environment in which they operate and results they achieve.
Perhaps it would not be fair to mention them because I take a risk to forget or omit some, and that, at least from this position, surely, is not my intent.
Their results speak for them, which, of course, can be found in all publications, both statistical and those that publish professional economic topics.
ONASA: Do direct meetings of businessmen at fairs in BiH and the world result in concrete cooperation and what are your plans when it comes to this year’s presentation at these events?
ŠANTIĆ : Certainly. You will always hear this from all serious businessmen. However, it is also true that the Internet and interactivity that this global network enables and as a medium, but also as a form of communication, influenced the decrease of companies visits to fairs, and even the disappearance of some events.
Fairs, for some time, have the trend of redefining a fair character.
However, BiH is a small country and a small market and it is my opinion that we should keep a few, for our circumstances, large fairs of general character such as the Mostar Fair, Fair in Tuzla and ZEPS, but also to nurture and other specialized fair events.
The Chamber appears in all of them to a greater or lesser extent.
ONASA: The FBiH Chamber of Commerce received a letter of intent from two companies from the city of Shenyang People’s Republic of China with the wish to invest in the textile industry, specifically in the production of fabrics for workwear. Have some more concrete talks already been conducted when it comes to this investment?
ŠANTIĆ : Yes. The Chinese for the time being are interested in a smaller one, in my opinion “scout” investment in BiH, specifically, it is the textile industry and investment of about 5 million BAM.
Contacts have been achieved through the Chinese Embassy. Several of our cities and cantons have offered land and halls in their business areas and in the future we expect more concrete attitudes of potential investors from the PRC.
ONASA: How do you assess cooperation of the FBiH CC with the FBiH Government and in general with the political entities in the FBiH?
ŠANTIĆ : As far as I could see, the period since 2003 to date is characterized as a period without cooperation between the executive and legislative powers and the FBiH CC.
However, it seems that things are changing for the better. The PM Designate for the new FBiH Government, Mr. Fadil Novalić, is primarily businessman and a man who comes from the real sector and he has recognized the economic – administrative component of a problem in the FBiH and has expressed his wish for a strong partner, the Chamber, in solving this problem, creating a favorable business environment and creating new economic policy, and the Chamber is at 100 percent capacity available both to him and the new government.
Likewise, the President of the FBiH Marinko Čavara initiated the “noting” of the main shortcomings of the domestic economy, and he as well for that part of the job is looking for the partner in the Chamber, and we will, of course, be available with all our infrastructure.
Although we are not a political organization, to such moves of the FBiH President Marinko Čavara and the PM Designate for the new FBiH Government Fadil Novalić we give full support and in the future they will have a strong and principled partner in us when it comes to the economic issues of the FBiH. (end)