14July2019

Two Witches

While Herzegovina reaches the dramatic climax of an economic tragedy, here in the rest of the country, yet another frivolous story unfolds. Or is it?

Cazin, July 8 – Representatives of the IT Girls initiative visited elementary schools across Bosnia and Herzegovina, delivering ten Arduino programming kits. “These sets will help our students and teachers refine their IT skills,” said Elvedin Delalić, director of Cazin II Elementary School.

Mostar, July 10 – Five minutes past midnight, the giant Aluminij was disconnected from the power grid. Workers of the Mostar behemoth stood in shock outside the factory, while a vehicle from the MUP of HNK lingered nearby. The decision to shut down the company had already been signed by director Dražen Pandža.

What do these two events have in common, aside from happening almost back-to-back? While Herzegovina witnesses the dramatic culmination of an economic tragedy that’s been simmering for at least a decade and a half—leading to the collapse of one of “the pillars of the region’s and the entire country’s economy” (as patriotically enlightened economists put it)—here in the rest of the country, instead of concrete, useful, and necessary action, we get yet another seemingly trivial tale. Or do we? Before we succumb to the toxic mentality of dismissing facts at face value, let’s look at things from another angle.

Even before Aluminij’s collapse, Bosnia and Herzegovina’s unemployment rate stood at 20.5%. Among those aged 15 to 24, the numbers are staggering: 43% of young men and a shocking 51.3% of young women are without work. When discussing unemployment, the demands of the labor market must factor into the equation. According to data from the BiH Employment Agency, the most sought-after professions are in the IT sector—particularly electrical engineers—followed by civil engineers, pharmacists, and doctors. Recruitment agencies report (via ITgirls.ba) that diplomas from electrical engineering faculties are among the most lucrative. And yet, by 2020, the EU will face a shortage of 900,000 qualified IT workers.

The events from early July don’t just reflect current affairs—they mirror global trends. Worldwide, including in BiH, we’re witnessing a shift in economic models: the era of “giants” is being replaced by the “gig” economy, a free market where temporary, tech-driven jobs are the norm rather than the exception, and businesses hire independent contractors based on project needs. The state is aware of this shift. Last year, the FBiH Tax Administration demanded freelancers retroactively pay taxes on all income from 2015 to 2017, prompting them to form the Freelance Association of BiH. Today, it brings together hundreds working in IT, design, apps, writing, translation, online teaching, and even project management, virtual assistance, and fashion design.

This is why the IT Girls initiative deserves praise—by distributing mini-robots to schools, they’re preparing future workers for the new reality of the labor market, with a special focus on girls, who remain a stark minority in these fields. They’re not alone in this mission. The Bit Alliance and our ICT Committee at AmCham BiH, gathering the country’s biggest IT players, share the goal of fostering a better environment for the sector’s growth. Microsoft takes it further with the regional “Gen-D” program, partnering with Propulsion and the “Petlja” Foundation to offer a prize-winning digital curriculum across five regional countries, cultivating algorithmic thinking and problem-solving in future generations. The British Council’s multimillion “Schools for the 21st Century” project also operates on the understanding that digital literacy, along with creative, critical, and analytical thinking, will be essential for individual and societal progress.

So, last week wasn’t just about “two witches.” We witnessed—and are still witnessing—the symbolic, noisy crash of the old economy and the emergence of timid but ever-strengthening voices of the new era.

Which voice does your business speak in?