The role of the Transport System in the Economic Development of Bosnia and Herzegovina

Extended Abstract:
1. Introduction
The article discusses the impact of transport system on economic development in Bosnia and Herzegovina. Transition or the process of restructuring the economy and society in Bosnia and Herzegovina is taking place very intensively, but also in very difficult and special conditions. Construction of new and expansion and reconstruction of existing roads in Bosnia and Herzegovina is the assumption that the transport infrastructure will have a strong influence on regional economic development. It is also important to note that the future economic growth domestic industrial production and population growth, and development of the transport system and the demand for transport services, will have a steady growth with the help of the more developed transport infrastructure in the future.
Dual name of Bosnia and Herzegovina is actual name of independent and internationally recognized state (since 6 April 1992) which is also 177th member of UN (since 22 May 1992), in the frame of existing borders. Total area of Bosnia and Herzegovina is 51 209 km² (rank 125th in the World).
Actual international political-geographic position of Bosnia and Herzegovina has started since the moment when on Independence Referendum, which took place on 29 February and 1 March 1992. Its inhabitants decided it should be independent and sovereign integral state, as it was recognized later on by the European :::union::: on 6 April 1992, and then by UN on 22 May 1992 and by great number of countries as well. Until now Bosnia and Herzegovina has been admitted into the number of international organizations (e.g. the Council of Europe), associations and institutions. In wide international frames such position of Bosnia and Herzegovina may be considered as generally favourable.
In a historic-geographic and historic-cultural sense, the population in Bosnia and Herzegovina survives on a territory where during the history it has come to stronger fusions and interferences of civilization-cultural influences from both European and Asian people and leading monotheistic religions. That characterizes Bosnia and Herzegovina as multicultural, multi-religious and multiethnic state community. According to estimates, about 3,8 million inhabitants live today in Bosnia and Herzegovina (127th in the World).
Propitiatory of economic-geographic position of Bosnia and Herzegovina come to significance when taking into account propitiatories which come from transit transport-geographic position and richness in hydro energetic potential, ores, forests, cultivated lands and work force in Bosnia and Herzegovina on one side, and their poverty in developed European countries in wider environment, on the other side. Those are the advances by which valorisation Bosnia and Herzegovina has greater possibilities for joining the economy flows of Europe comparing to other countries of Southeast Europe.
2. Theoretical bases
According to teoretical-metodological approach, researches in this paper are very complex and they include knowledge on causes and consequences of the most important transport-geographical problems which reflect on economic development of Bosnia and Herzegovina. Beside classical scientific methods (analysis, synthesis, generalization etc.), in this paper were used, among others, cartographic, geographical and mathematical-statistical methods.
As initial, basic and general, the analysis method is necessary for partition of such a complex system as it is transport as a subject in transport geography study.
Geographical method is a method without which geography (thus transport geography as well) couldn't be imagined, yet becoming necessary to other sciences. Its importance and significance come out from the fact that appearances and processes have one of the most important characteristics, and that is territoriality. Transport as a subject in transport geography study has a very important characteristic – bond with territory as irreplaceable category, i.e. with concrete territory (part of geographical space) regardless on taxonomical hierarchy. Russian geographer Kolosovskij, N. (1969) says about this method: "Territorial approach is considered as general and compulsory when study all the problems in physical and economic geography as well. Important difference between physical geography and neighbour natural science areas, as well as between economic geography and other social sciences is reflected in systematic and compulsory usage of this approach".
It is widely acknowledge that transport plays a crucial role in economic development. The transport sector is an important component of economy impacting on the development and welfare of populations. When transports systems are efficient, they provide economic and social opportunities and benefit that impact throughout economy. When transport systems are deficient, they can have an economic cost in terms of reduced or missed opportunities.
It is commonly agreed that role of transportation in any system is that of a lubricant it allows personal movement and trade and also information. These elements are vital to economic development, allowing factors of production to be combined efficiently and divisions of labour to be exploited, while at the same time permitting supplying agents to interact with consumers. That said, the provision of transportation facilities does not automatically lead to economic development. Transportation is perhaps best seen as a facilitator that allows the maximum economic potential of an area or region to be realised (Button et al., 2010).
3. Discussion
In transport system of Bosnia and Herzegovina, a differentiated development of transportation branches is distinguished. The branches in expansion and those in stagnation or backwardness may be distinguished. It is clear that this is noticed on the condition of particular transport networks – on tendencies of their development, arrangement and equipping by means of transport, as well as transportation volume and on transportation output. Such differentiated development is a consequence of unequal economic position of single transportation branches, particularly of their position in transition conditions then of inherited relations and influence of war circumstances.
Export dynamics of transport services has had a positive trend until the global economic crisis, in the last decade. It should be emphasized that every year more than half of the exports of services in Bosnia and Herzegovina make transport services. Value of share of transport services exports in total export of Bosnia and Herzegovina was 3.1% in 2008 and was by 1.2% higher than in 2006. As a result of global economic crisis the export value of transport services was reduced by 36% against the previous year, while the share in export value of Bosnia and Herzegovina was reduced by 0.6%. In comparison with the neighbouring countries, Bosnia and Herzegovina had the least share of transport services export in 2009. This is a consequence of a poorly developed and an obsolete transport network and means of transport, but also of poorer overall economic development of the country.
The share of activities of transport, storage and connections in total GDP in 2003 was 8%, and had been even higher than that of the European :::union:::. Since that year, a permanent decline in share of these activities in total GDP of Bosnia and Herzegovina has been present as a consequence of significantly slower development in relation to other economic activities.
It is also characteristic that, in addition to such trend of share within the total national GDP, in entire period, an increase in value of GDP in these activities is also present. GDP activities of transport, storage and connections increased from 603,3 million euros in 2003 to 787,3 million of euros in 2009. However, this is considerably poorer, even for two times, against the total growth of GDP.
The road network has a key role in achieving accessibility at national level. The biggest distinction of Bosnia and Herzegovina in relation to developed European countries is a low mobility of personal car transport. Therefore, bus transport has a major role in passenger transport in accordance with this is its role in organisation of space. For consideration of the role of transport in economic development of Bosnia and Herzegovina it is necessary to show basic characteristics of the transport system of Bosnia and Herzegovina
Road transport of Bosnia and Herzegovina runs in the network of roads of total length of 26 010 km, of which somewhat more than 57% is with asphalt base. Density of that network is only 51 km/100 km² of area of state territory (rank 55th in the World), while density of the main roads is 7.5 km on 100 km² of area. Or, on each 10.000 inhabitants on average comes 69 km of roads. Local roads prevail in the structure with length of 17.355 km, and regional with 4 794 km and main roads with 3 811 km (Adapted from Agency for Statistics of Bosnia and Herzegovina).
Road transport of Bosnia and Herzegovina is differentiated as it is in the neighbouring countries. Big differences between the branches that are recovering faster from the war damages and those that still do not serve their purpose are present. The road transport, in spite of difficulties and a poor, inherited structure, started with expansion to a large extent, while the rail transport is still without expansion and runs with a very little capacity. In the period 1992-1995 road and rail network underwent damages about 35%, and about 40% of all bridges were destroyed. By time, most of the road and also the railway transport were reconstructed on the main roads and tracks.
Contrary to significance of road transport in economic development of Bosnia and Herzegovina, the role of railway transport in economic development is far lesser, due to a poorly developed network and slow modernization and, in particular, large war damages. The war has affected the railways far stronger than the road transport. In conditions when the development trends similar to those in the developed Europe are expected from the railways, particularly in regard to large speeds in passenger and combined goods transport in road transport, it still goes through a period of crisis. Therefore, in the near future a stronger substitution of road with rail transport cannot be expected, as is the case in the European :::union:::.
Basic characteristics of today’s transport system of Bosnia and Herzegovina, also of particular transport networks within that system, for example, road network that has a particular importance in economic-geographic life of any country, essentially affect the accessibility of particular areas, and thereby also on opportunities for their economic development. A special attention should, therefore, be paid on considerations of the transport accessibility.
It is certain that single areas of Bosnia and Herzegovina have different transport accessibility. It can easily be proved by applying specific forms of network models. Even the simplest, topological, respectively a theoretical accessibility in road network of Bosnia and Herzegovina emphasises a different position of single spaces. Contrary to the most accessible Central Bosnia with Sarajevo, there are poorer accessible spaces, in parts of East, Southeast and West Bosnia. It is certain that specific territorial spreading and physical-geographic characteristics of the state area of Bosnia and Herzegovina intensify the problem of the East and the West. However, this is also affected by unfavourable inherited transport relations that have not changed until now.
4. Conclusion
Considering the basic goals and directions of policy of transport development, on the whole, or just within a specific part of country, should start from the viewpoint that it makes, with its total capacity and method of forming the offer of services of its utilisation, only one part of total economic system and that it should satisfy the needs for transport of its country with its transport capacity. From the above mentioned it comes that transport development policy must be observed as an integral part of total economic development and its goals, within the broader area. Corridor Vc, with its infrastructure and available transport capacity, will represent the most important part of transport system of Bosnia and Herzegovina. That importance will be expressed, not only according to geographic position and passing capacity, but also according to a number of economic services that would be available to passengers. It is because the transports routes have multifunctional role that we say that transport represent an essential factor in development of economy.
A freeway through Bosnia and Herzegovina starts from the Sava River bank and in north-south direction, from the settlement of Donji Svilaj, on B&H side towards the border of B&H and Croatia, north of Ploče, going along the rivers of Bosnia and Neretva. The contact point between two countries, on north part has been defined on the Sava River, and the common border crossing will be on the area that belongs to Croatia. Corridor Vc will be included in network of TEM transport infrastructure of Southeast Europe and goes in direction from Budapest via Osijek and Sarajevo towards port of Ploče. Through Bosnia and Herzegovina, the route of Corridor Vc will have a length of about 330 km, and until now only 73 km have been constructed.