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Principles for a New Social Contract

The manifestation of evil in Europe in the 20th century began and ended with events in Bosnia. An assassination in Sarajevo triggered World War 1. And after the fall of the Soviet empire, the people of Bosnia endured genocide. Today, Bosnia-Herzegovina (B-H) is a fractured territory whose peoples need policies that integrate them into a stable social system. This essay describes the financial principles that would deliver economic prosperity and social harmony. New policies must deliver on two needs: -acceptance that the political system treats every citizen equally and fairly, and respects ethnic and cultural diversity; and -economic growth that is not disrupted by the systemic failures which continue to create mass unemployment in market economies. The cornerstone of the new financial model is technically called “economic rent”. Because of intense opposition to reform by the privileged elites, adoption of the necessary tax reforms is not the easy option. Could the People’s Plenums that have emerged in towns throughout B-H override the opposition of the political elites?

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