The municipality of Užice embraces the trends of economic integration that are shaping the future of the European Union. This decision is encapsulated in our vision for the economic development of the municipality in the next five years based on the theme:

“Užice: Three Hours from Brussels.”

This document summarizes the findings, conclusions and recommendations of the Užice economic development strategy for consideration by businesses, investors, and the domestic and international donor community. To prepare the strategy the Mayor of Užice assembled and chaired a team of experts from the municipal government, business community, and outstanding citizens, forming the Užice LED Team. The strategy was prepared following the World Bank’s “Cities of Change” methodology with technical assistance provided by International Relief & Development (IRD).

The strategy lays out 32 well defined programs to foster economic growth, develop human resources, and improve environmental conditions. The programs in the strategy are designed to remedy the problems of market rigidities and to improve workforce skills. By modernizing the educational curriculum and launching training programs to support the workforce, we will provide businesses and investors with an attractive pool of skilled workers to meet the challenges of an increasingly competitive Serbia and global economy.

As a priority the strategy is aimed at increasing employment by increasing the pace of expanding businesses and attracting new businesses and investments. To do this Užice must create a more favorable investment climate. Municipality officials, the business community, and engaged citizens are committed to introducing measures that eliminate red tape and expedite local procedures to reduce administrative business costs. One example of this initiative is the recent establishment of a one-stop shop to assist business registration, issue necessary documents, and resolve issues regarding legalization of business and other properties.

To provide new jobs and increase incomes Užice will make promotion of public-private partnerships a priority with regard to improving economic infrastructure, including water and wastewater. Tourism in the Užice area is virtually untapped. Užice is blessed with an attractive environment and attractive destinations that can be developed through the application of environmental friendly regulations in cooperation with tourism businesses.

History and Geography

The first time Užice is mentioned in historic documents is in a declaration of the Byzantine tsar, Vasilij II, dated 1020AD. Modern Užice is one of the regional centres in Serbia. It is the administrative, business and cultural center of the Zlatibor District, the largest in Serbia, covering 6.172 km 2 and encompassing 10 municipalities: Arilje, Bajina Bašta, Čajetina, Kosjerić, Nova Varoš, Požega, Priboj, Prijepolje, Sjenica and Užice. Total regional population is in excess of 310,000. This region includes the tri-border area between Serbia, Montenegro, and Bosnia and Herzegovina, with development potential toward the Drina valley point to the formation of the Podrinjska development axis.

Užice municipality covers a territory of 667 km 2 with 82,723 inhabitants, of which 53,607 reside in the city . It is at an equal distance from the three capitals of Serbia, Montenegro and Bosnia and Herzegovina (Užice – Belgrade: 200 km, Užice – Podgorica: 235 km, Užice – Sarajevo: 190 km). It lies in the tri-border area between Serbia, Montenegro, and Bosnia and Herzegovina.

Natural Resources

Much of the Užice area is highland – mountainous covered with forests (42%) and agricultural lands (51%). Užice enjoys the advantage of good seismic characteristics and rich water potential. The area is rich in metal ores; deposits of iron, chrome, manganese, copper and bauxite have been found. Numerous explorations for non-metal raw materials suggest the presence of magnesium; cement marlstone; dolomite; chalk; clay; decorative stone; and quartz. Of these, magnesium is economically the most important for this area.

Economy/SME Development

The industrial capacities of Zlatibor District are developed mostly in the narrow river valleys. Leading sectors are the metal industry, non-ferrous metal industry, textiles, and wood. Užice has a 2,326 registered businesses (December 2004), or 28 registered businesses per 1000 inhabitants. In recent years many small businesses have closed, citing declining markets are the primary reason.

From January – November, 2004 (latest data) Užice municipality reported foreign-trade total value of $189.9 M, of which $90.8 M was exported and $ 99.1 M was imported. The foreign-trade deficit of the area was $8.3 M. The Uzice economy covered 92% of its import costs with exports. Užice municipality’s leading foreign trade partners are from EU countries (40%). There is a negative balance with Central and Eastern European countries. Most exports are sent to: Italy, Germany, Austria, Hungary, and USA. The region imports goods from the Russian Federation, Bulgaria, Romania, Ukraine and Uzbekistan.

Užice’s leading exports are aluminum and copper, garments, fruits, sports and hunting ammunition, assorted machines, leather, and plastic products. Primary imports are non-ferrous metals (72% of total imports).

Labor Market and Human Resources

In 2002 Užice municipality reported 27,271 registered workers (33.3% of total population), which exceeds the average of Zlatibor District, which is 23.4%. The Serbia average is 24.6% (2002 data). Out of the total of 27,721 workers, 26,460 (95.5%) work in the urban area, and only 1.2% in the rural areas. This demonstrates the very high density of development capacities in the city area. Užice’s unemployment rate in 2004 was 27.79%, which is close to the Republic of Serbia average of 26.95%.

Infrastructure/Transport

Užice municipality is linked primarily by roads to the rest of Serbia, and by the Belgrade to Bar railway. The strong network of trunk and regional roads indicates transport wise importance of the Municipality, which links Uzice to the rest of Serbia and Montenegro, the southern Adriatic, central Bosnia and Herzegovina, and the Dubrovnik region of Croatia. Though adequate for most business-related transport purposes, the road network must be expanded and improved to support growing tourism to the region.

The Belgrade-Bar railway goes through the municipality offering advantages for commodities and passengers. The railway, however, is not yet fully used due to lack of capacity and uneven scheduling.