Bosnia-Herzegovina Country Profile

Licences, Infrastructure and Public Utilities

Individual Corruption

The Transparency International Global Corruption Barometer 2007 reveals that although citizens do not perceive the registry and permit services and agencies dealing with public utilities to be uncorrupted, they are ranked among the least corrupt institutions in Bosnia-Herzegovina.

Business Corruption

According to Global Integrity 2007, business licensing and regulation is highly problematic in Bosnia-Herzegovina. Bribery to obtain necessary licences to run a company in the country has been reduced since 2002, but remains at high levels. Also on the retreat, but still high, is the number of companies reporting that corruption is frequent to obtain public utilities, such as electricity and telephone connections. Companies report that they pay bribes for various kinds of licences, but also in relation to related inspections, such as inspections by tax authorities, fire and building inspections, health and safety inspections and environmental inspections.

Political Corruption

According to Global Integrity 2007, corruption is rampant in Bosnia-Herzegovina's energy markets, transportation infrastructure (railroads) and the oil and gas business.

Frequency

The World Bank & IFC: Doing Business 2009:
- Building a warehouse in Bosnia-Herzegovina requires a company to go through an average of 16 administrative procedures, which take an average of 296 days and costs 666.9% of income per capita.

Transparency International: Global Corruption Barometer 2007:
- The registry and permit services score 3.9 and utilities 3.8 on a 5-point scale in the public opinion survey (1 being 'not at all corrupt' and 5 'extremely corrupt').

EBRD & World Bank: BEEPS 2005:
- 6% of companies report that bribery is frequent to obtain or maintain public services, such as electricity and telephone.

- 10% of companies report that bribery is frequent for business licensing.