Agriculture, food production, and tourism are the main competitive advantages. Mining also has potential for renewed productivity for smelting metals, especially gold, lead, and zinc. The challenge, however, is to maintain profitability of these activities with modern, environmentally sound techniques.

Agriculture is the mainstay of the Krupanj economy. The municipality has 16,565 hectares of arable agricultural land, making up 48% of the total land surface. Fields and orchards make up 15,433 hectares. The agricultural sector is the main source of employment.

Most agricultural products are grown organically, using no pesticides and, as such, are organically healthy foods. These include raspberry, cherry, wild strawberry, wild blackberry, domestic apple and pear, wild peach, sour cherry, tomatoes, peppers, beans, green peas, cauliflower, wheat, corn, barley, and oats. There is also an abundance of naturally occurring plants: lime trees, forest mushrooms, and dogrose. In addition, many farms breed livestock (cattle, sheep, pigs) and produce dairy products.

We are confident that Krupanj can prosper. Our economic development strategy identified strengths and opportunities of the municipality that can contribute decisively to economic growth. The most important are:

• Unlike other locations in the republic, the municipality has managed to preserve an ecologically clean environment. This is a solid foundation for agricultural and tourism development.
• There are beautiful monasteries, historic buildings, and archeological sites that are important tourist attractions.
• 95% of agricultural land is privately owned, and local farmers have demonstrated dynamic energy and effort toward improved agricultural techniques.
• Local labor is plentiful. Wages, however, are low in comparison with other municipalities.
• Telecommunication services are adequate.

There are also important weaknesses and problems that we will address decisively. The most important of these are:

• Much basic infrastructure, especially roads, water supply, and waste water systems, are old and in need of major repairs.
• The municipality in recent years has experienced a decrease of its population.
• Most farms use outdated, inefficient technologies that cannot meet international competition and quality standards.
• For decades public management of natural resources, including forests, has been deficient, causing environmental damage.
• The agricultural sector must often contend with soil erosion, floods, and landslides.
• Technical capacities of key municipal staff remain weak, and must be improved.

The Tasks Ahead

The principal economic goals are summarized below:

• Improved Public Services. To support new businesses and local agricultural initiatives, we will improve the skills of municipal staff and local institutions in terms of personnel, technology, equipment, and organizational structure to better answer the economic growth challenges. This will be achieved through programs and projects to simplify the existing business start up procedures and regulations. We also plan projects to stimulate and promote foreign direct investments through a coordinated approach by local businesses, agricultural organizations, and Krupanj municipal officials.

• Improved Infrastructure to Support Economic Growth. We plan to improve the power-supply grid in the rural part of Krupanj to create the necessary conditions for processing agricultural products, wood products, and crafts. Projects to rehabilitate roads to support agricultural producers, wood processing manufacturers, and crafts workshops with improved processing facilities have also been identified, as well as activities to improve communal services, protect the environment, and improve living and working conditions.

• Improved Primary Agricultural Production and Processing Through Modern Technologies and Standards. We plan to achieve this goal through transition from conventional to organic agriculture, standardization of processing, improved cattle breeding, and support for farming cooperatives, associations and clusters.

• Improved Conditions for Wood Processing, Metalworks, and the Crafts of Artisans. We will improve wood processing and craft production by providing support and technical assistance to local associations. The products will meet competition quality and requirements for export into the EU.

• Improved Tourism Development and Services. We will improve tourism services and marketing with an emphasis on sports and outdoor recreational activities, including village tourism, hunting, and fishing. Several projects focus on improved recreational facilities in support of tourism, tourism marketing, and improved skills of tourism workers.

The Krupanj Local Economic Development strategy in its entirety can be found at www.krupanj.org.yu.