EU PROGRES

Preševo, Bujanovac and Medveđa have been categorised as undeveloped municipalities. The economic situation in them is further exacerbated by the negative migratory trends, as many young people of working age have been leaving these municipalities, in search of economic security.

The high unemployment rate is without doubt the gravest problem plaguing these three municipalities. The National Employment Service data lead to the conclusion that unemployment is the highest among workers with the lowest education levels (1st and 2nd levels), but they demonstrate that a large number of people with higher education levels (3rd to 8th) are jobless as well. Unemployment is particularly high in the 31-40 and 41-50 age groups. Development of private entrepreneurship is prerequisite for improving the economic situation and the enforcement of the municipal economic development strategies aiming to create new jobs. Given that the rural population accounts for a high share of the population in all three municipalities, encouraging their agricultural development potentials is imperative for the overall development of all three municipalities.

The Serbian Government Coordination Body for the Municipalities of Preševo, Bujanovac and Medveđa has been endeavouring to improve all aspects of life in these three municipalities ever since it was established in 2000. Apart from investing in infrastructure projects, improving the quality of and access to education, encouraging the development of the civil sector and the media, and providing aid to the most vulnerable categories of the population, the Coordination Body has recognised economic development as the issue of utmost priority for Preševo, Bujanovac and Medveđa.

This is why we envisaged subsidies for economic entities in the three municipalities in our 2012 Programme. Our initiative won the support of the Government of the Republic of Serbia and, for the first time since it was set up, the Coordination Body will directly provide aid to the economy of Preševo, Bujanovac and Medveđa. 

The Coordination Body remains committed to systemically supporting the economy in southern Serbia. This is why we first set the priorities together with the Mayors of Preševo, Bujanovac and Medveđa and agreed to approve subsidies to small and medium-sized enterprises, private entrepreneurs and farm cooperatives. We selected the Serbian Chamber of Commerce as our strategic partner in this important project. Our colleagues in the Chamber of Commerce conducted a field survey, during which they visited over 25 private companies and entrepreneurs to collect data about their needs and capacities. This is the first time such a survey was organised by a state institution, as data on the economic situation in southern Serbia have to date mostly been systematised by various international organisations and donors. The Serbian Chamber of Commerce than proceeded to draft a Programme, to be adopted by the Government, and the public call for proposal documentation. The Coordination Body Presidency held a session at which it unanimously adopted the documentation after reviewing it and proposing specific changes to it. The representatives of the three municipalities were, of course, consulted and involved in all stages of planning the assistance for economic projects.  

The next step involves the adoption of the Programme for Subsidising Economic Entities. We expect of the Government of the Republic of Serbia to adopt the draft economic programme as soon as possible. The Coordination Body will then publish its public call for proposals. The Coordination Body has earmarked 60 million RSD for economic projects, notably for subsidising small and medium-sized enterprises, entrepreneurs and farm cooperatives in the municipalities of Preševo, Bujanovac and Medveđa. The Coordination Body shall thus stimulate the development of the economy and agriculture in the southern Serbian municipalities with the aim of encouraging the opening of new jobs.

Given that many businessmen and farmers, in particular, are neither familiar with nor trained in applying for funding to improve their production, the Coordination Body and the Serbian Chamber of Commerce will invest additional efforts to provide them with all the assistance they need to apply for the funds.

The Coordination Body’s endeavours to improve the economic situation in southern Serbia complement the existing programmes the Serbian Government has been implementing through the competent ministries and the international programmes focusing on the economic development of this region. This is why we have consulted with EU PROGRES, whose objective is to support the development of cities and municipalities in Serbia, on all the moves we have taken to date.

We would particularly like to express our gratitude to EU PROGRES and the British Embassy, whose assistance was crucial for the efficient and timely design of the economic programme. In late 2011, EU PROGRES facilitated the Coordination Body’s organisation of a strategic planning meeting at which the economic projects were designed, while the British Embassy supported the Chamber of Commerce in conducting the survey and drafting the economic programme.  

What is our vision for Preševo, Bujanovac and Medveđa? We hope that they will become economically sustainable, economically developed and environmentally clean municipalities with a more developed infrastructure. We believe that the Coordination Body initiative will contribute to the achievement of the three municipalities’ developmental goals. Given that all three municipalities boast rich natural resources and abound with the natural and economic prerequisites for the development of specific branches of agriculture, the Coordination Body subsidies will provide the necessary impulse for the economic progress of these municipalities in the south of our country.

Danijela Nenadić
Director of the Coordination Body of the Government of the Republic of Serbia
for the Municipalities of Preševo, Bujanovac and Medveđa