TRAVEL REPORT The Hon. Michael Atkinson MP Attorney-General ...

Thursday, 12 August, 2004Mr Milenko SajicMayor's Office SpokesmanCity of Banja LukaMs Radmila StojnicHead, Department of FinanceMs Ljiljana RadovanovicAssistant Head, Department of Economy and Social ActivitiesMrs Nada MusterMeeting summaryBanja Luka (B .L .) has a large student population -there are 14,000 universitystudents, 11,000 high school students and 7,000 primary school students . Itis also a cultural and sporting centre .The City was strong economically before the war-the development andtransition process has been problematic . All departments are behind the Citynow trying to make a connection with Europe . A bilateral agreement withAustria offering free tuition to students is present . They have a budget of 100million KM and are able to fulfil their service obligations and a number of Stateinstitutions based in B .L .The emphasis is on creating conditions for small business to flourish . Allbusinesses that employed 10,000 - 15,000 people, for instance, industries inelectronics, machinery, agriculture, chemicals, were lost because of the war .Some are still functioning, but they are smaller so they are doing their utmostto help people establish small business . The process of privatisation, whichwas the responsibility of R.S ., has gone well .They have some successful processing industries, such as textile and leatherindustries . These industries lost ground due to 10 years of technicalstagnation . However, the process of privatisation did not bring the investmenthoped for .There are 1,800 small and medium registered businesses, many of themprivate . Most of them are in the wood processing and services areas,continuing with tradition . Traditionally, the main export markets were westernEurope and Soviet Union . Exports are insignificant comparatively . There areabout 5,000 one-person companies with maximum of one or two employees .The programs include having a City development agency support companiesas they are establishing and at development stages . This Agency is to serveas a link between the company and foreign investors, as well as managementeducation and how to seek open markets and market opportunities .Unfortunately, the lack of legal regulation does not help . Laws from the R.S .Parliament are expected soon that would create an appropriate legalframework to allow businesses operate . A number of corporation and bankinglaws are under preparation for the next session of the R.S . Parliament that willTravel Report, Hon . Michael Atkinson, MP, and Ms. Vini Ciccarello MP ., August, 2004 80