Conflict between Labour and Capital in Times of Global Crisis in Bosnia and Herzegovina

Abstract

Ideological framework of neo-liberal paradigm and a program framework for the conduct of economic policies established by Washington Consensus intensified the historical conflict between labour and capital. The neoliberal paradigm excludes industrial policy because it proceeds from the neoclassical assumption of equality of labour productivity between countries, and the economic policy suggests the flexibility of the labour market, the absence of inflation and a fixed exchange rate. Such economic policies lead to the reduction of the country’s competitiveness at the expense of work. In Bosnia and Herzegovina, the following disadvantages constitute problems for workers’ rights violations in Bosnia, which causes abolition of work, namely: the neoliberal form of economic development, opening the problems of dual labour force and simultaneous existence of structural and cyclical unemployment. Mitigation of conflict between labour and capital in Bosnia and Herzegovina is possible to lead on two levels: firstly, the more powerful presence of the state in economic development stimulus (leading an active industrial policy and abandonment of macroeconomic stability at the expense of high unemployment) and, secondly, the opening of the social dialogue with all relevant participants who are interested in social dialogue and social improvement of working conditions.