Building and Development of the Knowledge Based Economy in Bosnia and Herzegovina

Throughout a several last years the transition of the educational system in Bosnia and Herzegovina has been evident. Besides the various formal procedures that the education in Bosnia and Herzegovina has to go through, the system of the overall social transformation has a far greater impact on the process of change. Even the very apprehension of the term „educated person“ has been changed throughout the need for a countinous adjustment and adoption of the new concept of work. In relation to this it is particularly important to set the base for building of a knowledge based society. The aim of this paper is to represent the current position of Bosnia and Herzegovina on its establishment of the knowledge based society through the application of the instruments such as Human Development Index, Knowledge Index and Knowledge Economy Index as well as to sugest potential steps in order to strengthen the process and to make it permanent. Also, the analysis of the fundamental pillars that are leading to the knowledge based economy will be performed in this paper. These pillars are Educated and Skilled Labour Force, an Adequate Information Infrastructure, a Conductive Economic and Institutional Regime and an Effective Innovation System. What will also be represented in this paper is a general overview of opportunities that Bosnia and Herzegovina should use through the educational, research and other scientific institutions in order to apprehend, generate and spread the knowledge.