Transition from Socialism to Capitalism in Bosnia

19426 Words78 Pages
CHAPTER 1 INTRODUCTION Capitalism and socialism, as two major economic systems, have shaped the past century to a great extent. After many wars and political games, it seems that the battle between the two systems has come to an end. Capitalism proved to be the stronger system and, as a result, globalization became the most descriptive attribute of the world economy in the current century. Most of the socialist countries decided, or were forced, to start a painful process of transition, which would enable them to become capitalist countries in the future. The countries in transition have had to deal with numerous problems such as political and economic pressure from other countries, corruption at all levels of political and…show more content…
The last part investigates the problem of corruption and other political factors that are a current impediment to transition. At the end, subjective conclusions will be made about whether transition itself is worthwhile. Each reader is welcome to draw his or her own conclusions. Whether transition is worthwhile is a question that will be approached from the people’s point of view and it will rely on comparison between Bosnia’s economic performance and the living standard in the country before and during transition. It will also consider future estimates. Political events that affected the process of transition will be taken into consideration because of their enormous relevance. Hopefully, the conclusions will be unbiased and provide important considerations relevant to Bosnia’s future. CHAPTER 2 POLITICAL BACKGROUND Bosnia before World War I - Islamization The focus of this thesis is the transition of Bosnia from socialist to capitalist economy, but in order to fully understand it, one must be familiar with some of the historical events particular to Bosnia. The single most important historical trend is certainly the Islamization of Bosnia. Although the Serbian people consider the Battle of Kosovo in 1389 to be the beginning of this process, only decades and centuries to come marked a significant increase in the number of Muslims in Bosnia. The primary source of information on population and especially changes in
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