Hungary and Bosnia and Herzegovina - a success and a failure of transition

This paper sets out to compare some aspects of the transition packages in two seemingly incomparable countries, in search of similarities and dissimilarities, and hints as to where Bosnia and Herzegovina may have gone wrong. Particular attention is paid to the macroeconomics part of the transition package, together with assessment of privatization and the role of FDI. The institutional aspect of the transition, particularly in Bosnia and Herzegovina, is treated in the second part.