The economic development strategy of Šabac municipality is the key planning document for the period 2006– 2010. It defines changes, improvements, and projects necessary to create a business environment appropriate for more rapid economic growth. The strategy was created by the Local Economic Development (LED) team appointed by the Mayor of Š abac. The LED team include s municipal officials and representatives of business and civil society. The strategy has been created in accordance with the World Bank “Cities of Change” methodology, which is particularly relevant for countries in economic transition.

The document consists of four sections. The first section describes the local economy. The second section analyzes economic data and includes an analysis of Strengths, Weaknesses, Opportunities, and Threats (SWOT) relevant to local economic conditions. The third section identifies the key issues that must be addressed to achieve economic development. Section four presents the goals and objectives together with related programs and projects.

Local strengths include 300 hectares of construction land within industrial zones; over 800 active enterprises; 3,800 small shops; 12,900 agricultural enterprises; the rivers Sava and Drina; highways and airport access; cooperation with adjacent regions and neighboring countries; proximity to large commercial centers (including Belgrade and Novi Sad), and much more. The Local Economic Development strategy is a powerful tool to achieve competitiveness using the advantages and opportunities Sabac possesses.

Šabac citizens have a vision for 2010 of an attractive community with modern industrial zones, restructured agriculture, and improved infrastructure supporting investment and entrepreneurial activities . Our municipal officials, business sector, and citizens trust that this vision can be realized with the support of businesses seeking a supportive business environment and with the help of the donor community.

The Šabac Economy

The municipality of Šabac covers 795 km² in Northwest Serbia . I ts population is 123,000 according to the 2003 census of 2003. From 1981 to 2003 there was consistent population growth. The favorable geographic position of Šabac and its economic potential are two of the reasons people have continued to move to Sabac from nearby municipalities. The geographic position is favorable because of its proximity to Belgrade and Novi Sad, and connection to all of Serbia by major roads. The area also has access by rail and river.

Š abac’s location is 44˚ 46' North geographic latitude, and 19˚ 46' East geographic longitude. The elevation is 80 meters above sea level. Šabac is flanked on the right by the river bank of the Sava, 103 km upstream from Belgrade.

Šabac has evolved into an important economic center of Serbia largely because of the presence of numerous local and foreign entrepreneurs and investors. 82% of registered enterprises are private firms. There are 20 banks in the municipality. The industrial zone, banking, and the presence of foreign investors speak well of efforts by the municipal government to encourage and facilitate new business and investment. Š abac has rich agricultural potential due to fertile soil suitable for all vegetable and field crops . The region has favorable climatic and atmospheric conditions and abundant natural water resources that are not fully exploited. Cultivation of grains dominates the agricultural sector but recently fruit growing, especially berries, has experienced rapid growth. Considering that berries are profitable and suitable for the area, we expect further rapid expansion in the years ahead and increasing sales on domestic and foreign markets.

About 35,000 farmers live in the villages of the municipality of Šabac. The number is declining, however, because many young people are leaving farms to look for better living conditions in cities. As young people are leaving the villages, the consequence is that the village population is increasingly elderly. This influences the methodologies and efficiency of the agriculture production, and threatens to impede development in this sector of the economy.

Over the last fifteen years raising livestock has fluctuated significantly, particularly with regard to cattle and pigs. U nstable market conditions have discouraged increase in livestock. The Mačva area is one of the major centres for raising l ivestock in Serbia, with relatively well developed facilities for cattle, bullocks, sheep, pigs , etc. Livestock offer a promising economic future again, if farmers can be united with processors and international standards of health, safety, packaging, and transportation.