IRD Serbia - Local Economic Development

Six municipalities in Western Serbia are using resources from the American people and local capacities to work their way into economic recovery and growth. Since February, 2005 citizens, businesses, and local government officials have learned to analyze their economic situation, compare their capacities to market demands, improve the quality of products, and define a strategy and set of programs to improve their economy. The plans and projects they have developed are described in this publication, which is a set of six executive summaries, including priority projects. The document also contains an introduction and brief description of the World Bank’s “Cities of Change” methodology, which is their basis for economic planning. IRD is assisting with implementation of the local economic development strategies using resources from the United States Agency for International Development (USAID). The municipalities are seeking businesses, investors, and donors to invest in these entrepreneurial and reform-oriented communities.

Western Serbia consists of 23 municipalities, 15 of which participate in the IRD program. It covers approximately 11,000 km2 with a population of 780,000 . The area is rich and fertile in natural resources, making it ideal for expanded agriculture commodities and food-processing.

This west central area, bordering Bosnia and Herzegovia to the west, is hilly to mountainous with significant forest resources. The northern part contains lowlands with rich climatic and soil conditions suitable for modern agriculture. Western Serbia has access to major roads, the railway and prominent river routes in Serbia. In the hilly regions there are oak and bitter oak forests. The mountainous regions hold beech woods. Western Serbia has rich biodiversity. It has several protected habitats, including Lake “Perucac” – Bajina Basta, Divcibare Mountain, Gradac River Gorge, Tara National Park, and the Zasavica Special Nature Reserve near Sremska Mitrovica. The region is has several rivers (Sava, Drina, Djetinja, Gradac, and Kolubara) and beautiful large mountain areas (Tara, Divcibare and Zlatibor). Western Serbia is home to about 1,200 wild plant, animal, fish, and bird species, and unique fauna in mountainous regions. The area offers unique environmental qualities worthy of both protection and carefully-developed outdoor and recreational use.

Business opportunities include wood-processing metal products, textiles, leather, and tourism. The area is rural and needs improved infrastructure. This disadvantage, however, is significantly overcome by the entrepreneurial spirit of the citizens and the progressive political attitudes and actions of many local leaders.