MUNICIPALITY OF BRUS www.opstinabrus.org.rs STRATEGY FOR LOCAL SUSTAINABLE ECONOMIC DEVELOPMENT The realization of this project was financially supported by FUND FOR AN OPEN SOCIETY SERBIA 1 C O N T E N T INTRODUCTION............................................................................................ 4 RESOURCES MAP........................................................................................ 6 SWОТ ANALYSIS ........................................................................................ 32 VISION.. ...................................................................................................... 38 STRATEGIC OBJECTIVES......................................................................... 40 MEASURES.................................................................................................. 41 PROJECTS................................................................................................... 43 LITERATURE.. ............................................................................................. 57 2 Dear fellow citizens, I thank to all our fellow citizens who, in the accordance with their capabilities, needs and interests, have taken an active part in developing strategies for local sustainable economic development of Brus municipality and their efforts, knowledge, capabilities and proposals to give their full contribution. We would open new jobs by implementing this strategy, help in creating new, and in development of existing micro and small enterprises, of shops and farms and we would make our municipalitiy a place with a favorable business climate for investment by domestic and foreign investors and, together, we would create economic preconditions for better life for all residents of our municipality. With all respect, Mayor of Brus Municipality Dr Zoran Šljivić 3 I N T R O D U C T I O N The concept of local sustainable economic development began to be practiced in the 1970s because the local authorities realized that very mobile companies and the capital moved from municipality to municipality because of competitive advantages. After a torough examination of their economic base, municipalities have realized which were the obstacles to establishment new and maintaining old industrial facilities on its territory. With this new knowledge, municipalities tried to broaden their economic base and the basis for employment by devising and undertaking strategic programs that would eliminate the obstacles and enable the creation of new and retention of old businesses and also attract investors. What is local sustainable economic development? The purpose of local sustainable economic development is to increase the economic capacity of the local area in order to improve the economic future and quality of life for all residents. It is a process in which public, business and NGOs associate to work together to create better conditions for economic growth and retention and job creation. What does it mean to deal with local sustainable economic development? Nowadays, business success of the municipality depends on its ability to adapt to the dynamic conditions of local, national and international market economy. Municipalities increasingly use planning of local sustainable economic development to increase economic capacity, improve conditions for investment, improve productivity and increase competitiveness. The ability of municipalities to improve the lives of its members, create new economic opportunities and to successfully fight against poverty today, depends on the ability of citizens and political, business and NGO leaders to understand the concept of development and implementation of processes of local sustainable economic development, and to quickly act strategically. Preparation of the Strategy of Local Sustainable Development of Municipality of Brus Brus municipality, and the Republic of Serbia as a whole, is facing a difficult economic situation resulting from high unemployment, decreasing population, an increasing percentage of socially disadvantaged groups and poverty. Such a complex situation requires an organized and planned approach for solving problems and mobilizing all available resources of the municipality. Therefore, the municipality of Bruce decided to create a local strategy for sustainable economic development which should define the vision and strategic directions of economic development in the period from 2010 to 2013. This strategy takes into account local needs and specificities of the municipality of Brus and in cooperation with the Republic of Serbia and international donors should provide: greater economic growth; retaining the existing and creation of new jobs; development of entrepreneurship and innovation; NGO "Local House of Development Brus" with the support of Fund for an OpenSociety- Serbia, Belgrade, and with the help of the consulting company "Mojsijev" from Vršac, together with local authorities of the municipality of Brus, in the mid-2008 , started its activity on development of a strategic plan for local sustainable economic development of Brus. 4 The process of of making the Strategy for local sustainable economic development of municipality of Brus consisted of three phases: Phase I: "Starting the process of local economic the development of Municipality of Brus and selection of Municipal Councils and Working Groups" Phase II: "Making Local Economic Development Plan for the Municipality of Brus" Phase III: "Training of elected members of councils and working groups necessary for the successful implementation of strategic local economic development plan for the Municipality of Brus" Methodology The process of making Strategy for local sustainable economic development of Bruce is made by participial methodological approach, which consists of the following steps: Step 1: Mapping of resources of the municipality of Brus, within which approached the collection of quantitative and qualitative assessment of the local economy and business environment of the municipality of Brus Step 2: Making the SWOT analysis for each work group based on already made resources map Step 3: Defining and analysis of the problem of business environment by working in focus groups Step 4: Field research on the needs of local businesses Step 5: Defining the vision, strategic objectives, measures and projects Compliance with other strategies Strategy on Local sustainable economic development of Bruce is compliant with: • National Strategy for Serbia joining the EU • National Strategy of Economic Development of Serbia 2006 - 2012 • National Strategy for Sustainable Development in Serbia • National Strategy to Combat Poverty • National Strategy for Agricultural Development • National Strategy on Food Safety • Regional Development Strategy and Action Plan for Regional Development and • National Youth Strategy Also, the Strategy for of local sustainable economic development of municipality of Brus is adjusted to: • European Charter of Local Self-Government • European Charter for Small Enterprises • National Programme of the Government of the Republic of Serbia for EU integration 5 Resources map Historical background Brus is officially founded in 1833, while in 1871 was proclaimed the town. The municipality of Brus he had a turbulent past. Brus was and is the crossroads to theŽupa, Raška and Kruševac. Unfortunately, in these roads often came the conquerors. Brus , during the wars that have taken place in our country, was constantly occupied by the Turks and various other invaders who took turns. Industrial development of the municipality of Brus began in the1960s, when they built industrial companies in the textile and metal industries in this area. The devastating earthquake which hit this area in 1980 and 1983 were without loss of life but with lots of material damage. After the earthquake new residential buildings were built and business infrastructure restored. The disintegration of former Yugoslavia, the war in the region from 1991-1994, as well as thr 1999 bombing, brought few human victims in our community. The sanctions have led to bankrupcy some companies, leaving people jobless and poor. Geographic position The municipality of Brus is situated in the central and southeastern part of Serbia. The territory of Brus is on Kopaonik mountain range spread across the territory of the eastern and part of Kopaonik from the highest place Pančićev top two thousand and seventeen meters to the lowest areas of the village Zlatari, between the the rivers Rasina and Graševka. Municipality of Brus covers an area of 605 km2. The average altitude of the municipality is 450 meters. It can be said that the municipality Brus has a good position to the large geographical units and areas containing significant natural resources of the Republic of Serbia, the position to the roads, developed economic regions and major business centers. The municipality of Brus borders with the municipalities: Raška, Leposavić, Kuršumlija, Blace, Kruševac, and Aleksandrovac. It belongs to Rasina district. 6 The administrative center of the municipality is a town Brus located between the the rivers Rasina and Graševka. Natural resources The territory of the municipality of Brus has various natural wealth which is more significant in terms of quantity but quality. However, with the rational use, these resources provide important support to the future sustainable economic development of the community. Mineral resources and mineral springs Mountainous hinterland lake rises above the rolling surface of