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Issues in Foster Care System


Submitted By yolandasplash
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For this paper, I have selected to analyze the 25-year inflation record of the Bosnia and Herzegovina Convertible Mark. I have chosen this country and there inflation record for a couple of reasons. The number one reason being I spent nearly a year living in BiH. I experienced firsthand the hyperinflation the country suffered from. The BiH’s economy was devastated by civil war that broke out after the death of for former ruler of Yugoslavia Josip Broz Tito. Substantial progress has been made in economic improvement since peace was reconstructed in the republic. Inflation has remained low since reunification however, that was not always the case. Growth has been uneven. Privatization has been slow, and unemployment remains high. Bosnia's economy is boosted by its effective denationalization of the banking business. The tourism division has been improving and helping the economy, with popular winter skiing destinations. However, political corruption is one of the more acute problems in the country. Due the the fact that BiH was not a Country until after the civil war, inflation records are not available for the past 25 years. Below is the inflation rate on average consumer prices in Bosnia for 1999 to 2012.
Year Inflation, average consumer prices
1999 2.758
2000 4.906
2001 4.614
2002 0.313
2003 0.547
2004 0.282
2005 3.582
2006 6.126
2007 1.495
2008 7.433
2009 -0.381
2010 2.123

The reason for inflation in BiH is similar to any other country. As the general price of goods and services rises, each unit of the Bosnian currency buys fewer of those goods and services. Therefore, inflation reflects an erosion of the purchasing power of the convertible mark. Effects of inflation are positive and negative on the BiH economy. The negative effects include a decrease in the value of the convertible mark over time. Hesitation in the countries’ economic future dampens investment and savings. Positive effects consist of confirming the Central Bank of Bosnia and Herzegovina (CBBH) can regulate nominal interest rates and inspire investment in non-monetary capital projects.
Recently, within the last five years inflation has been somewhat higher in the BiH. The trend of negative developments in the field of foreign direct investments, budget deficit, increase of the cost of living, rising inflation and a constant increase of the number of unemployed have directly affected inflation.
What marked the end of 2011 is the political indecision caused by the absence of power at the state level. Fourteen months after the general elections in BiH authorities have not established a government, nor have they adopted the budget for 2011, which significantly injuries the economy in BiH. Therefore, it is expected that the progress of gross domestic product (GDP) in 2012 will be close to zero. Political instability is hurting BiH and damaging the attempts of BiH accession to the European Union.

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