Local/Regional Economic Development in South-Eastern Europe Concepts, Instruments, and Lessons Learned

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Local/Regional Economic Development in South-Eastern Europe Concepts, Instruments, and Lessons Learned Division 311 South-Eastern Europe, Caucasian and Central Asian countries Local/Regional Economic Development in South-Eastern Europe Concepts, instruments, and lessons learned September 2006 Publisher: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) GmbH Postfach 5180, 65726 Eschborn Internet: www.gtz.de Division 311 Responsible: Dr. Detlev Böttcher Ulrike Gantzer-Sommer Regina Kallmayer Edited by: Margret Will Layout: Gisela Will – Zeichen der Zeit, Hamburg Printing: MediaMix Organisations-und Beteiligungsgesellschaft m.b.H., Schwalbach September 2006 Preface restoration of historical city centers, such as in Sibiu, Ro- 3 mania) proceeds hand in hand with the creation of jobs. Promoting region-specific development, whether in the Proven instruments such as the promotion of business framework of economic development or by strengthen- start-ups find a place here and make crucial contributions ing administrative structures, is one of the most important to regional economic development. Development policy themes of Development Cooperation. Its importance is a experience and European experience complement each result, on the one hand, of globalization and the need to other; development policy approaches that do not take increase the competitiveness of economic areas; on the into account the European aspect cannot succeed. other hand, the topic has gained new momentum through renewed efforts by the international community to re- Experience in promoting economic areas and regions is as duce poverty. In addition to development policy consid- varied as the economic areas themselves: people, policies, erations, our work in South-Eastern Europe is also driven geographic and cultural conditions all influence the proj- by the political will to help integrate the region into a ects to different degrees. It is this wide range of experience unified Europe. that we wish to present in this collection of documents. It includes contributions from Division 3 (Div. 311, Mediter- Regional policy is a constituent element of the European ranean Region, Europe, Central Asian Countries and Div. Union (EU). The “Europe of regions” must complement 312, Twinning), Division 4 (Div. 41, 42, and 45, Planning the level of Europe as a whole and that of the various and Development), Division 7 (International Services), countries. This requires that comparable living standards CIM (Center for International Migration and Develop- be created in order to strengthen internal peace and Eu- ment) and by external experts. ropean unity after the traumatic experiences of the Sec- ond World War, the end of the “iron curtain” division You must decide which of the tips are useful for your own of Europe, and the Balkan wars. With the already agreed work. We hope that the individual contributions will fa- expansion of the EU to include Bulgaria and Romania, cilitate the exchange of information between colleagues in this challenge becomes even greater: the large remaining the field and will aid the training and orientation of new gap between average income in the EU and that in South- staff members. Eastern Europe must be closed as quickly as possible. We wish to thank all those who contributed to this col- In order to achieve these goals (comparable standards of lection of documents and hope the readers find it inter- living, peace and social stability), the EU is looking to esting. cross-border cooperation. Governments, administrations, non-governmental organizations and above all the citi- Dr. Detlev Böttcher zens of Europe are working together to achieve common Ulrike Gantzer-Sommer goals. Regina Kallmayer Many of our projects are taking up this fundamental Eu- ropean idea and are thereby making use of proven devel- Eschborn, September 2006 opment policy approaches: for the promotion of manu- facturing and industry, the food industry, rural areas, the service sector and sustainable tourism. Economic development is also a task of municipal and regional administrations, which shape the optimal frame- work conditions for a local economy in global competi- tion for investment. In addition to highly sought foreign investment, this particularly concerns investment from the region for the region: a marketable profile of regional and municipal competitiveness results primarily through the mobilization of local monetary and human resources and through the sustainable strengthening of strategic ca- pacities and competencies. Creating a functioning cadastre, or land register, increases legal security for investors; well-founded, strategic plan- ning at the local and regional levels provides planning and thus investment security. The development of cities (or the Table of Contents Preface | Dr. Detlev Böttcher, Ulrike Gantzer-Sommer, Regina Kallmayer 3 List of abbreviations 6 Glossary 8 1 Introduction 9 1.1 GTZ as a Partner for Local/Regional Economic Development – our Services: Regional and Sectoral Expertise from a Single Source | Ulrike Gantzer-Sommer 11 1.2 Local/Regional Economic Development in South-Eastern Europe – Introduction to the Collection of Documents and a Brief Description of the Approaches | Margret Will, Dr. Rainer Neidhardt 1 2 The EU Context for Local/Regional Economic Development in South-Eastern Europe 19 2.1 Local/Regional Economic Development in the Context of the EU Association and Accession Process | Ulrike Gantzer-Sommer 21 2.2 Local/Regional Economic Development in South-Eastern Europe – Poverty Relevance of the Promotion Instruments | Dr. Detlev Böttcher 23 2.3 Regional Structural Funds – the EU Sets the Framework Conditions for Regional Development in South-Eastern Europe | Philipp Casula, David Oberhuber 25 2. Twinning – Advisory Services to Governments and Administrations as an Active Contribution to Regional Policy | Philipp Casula, Bernd Schmidt 27 3 Local/Regional Economic Development – Success Stories in the EU and Germany 29 3.1 Slovenia – Strengthening the Management of Structural and Cohesion Funds | Philipp Casula, Bernd Schmidt 31 3.2 Local/Regional Economic Development (LRED) – Short Description of the Approach Using the Example of Schwäbisch Hall | Ulrich Höcker 33 3.3 The Region of the Future – Urban Regional Organizational Structures in the Region of Hanover | Eike Ulrich Vater 36 3. Commercial Land Management – the Example of Munich | Regina Kallmayer 39 3.5 Cluster Formation in Austria – Criteria for Success of Cluster-oriented Policy Approaches and Business Strategies | Günter Scheer 3 3.6 CENTROPE Central European Region – Transnational Approaches Austria, Slovakia, Czech Republic, and Hungary | Günter Scheer 8 4 Regional Economic Development and Regional Management 53 .1 Integrated Regional Development Plan – Experience in the Province of Vojvodina, Serbia with the Demands of the EU Structural Fund | Dr. Heinz Schrumpf 55 .2 Regional Development in Structurally Weak Areas – Setting up Systematic Regional Economic Development in North Albania | Dr. Heinz Schrumpf 57 .3 Regional Development in Apuseni, West Carpathians, Romania – Agricultural Microcredits from the Banca Carpatica/KfW Credit Line | Dr. Hans J. Jakob 59 . Regional Economy and Employment Promotion in Weakly Structured Areas – Promoting Strategic Partnerships in the Eastern Part of Macedonia | Aleksandar Karaev 62 .5 Island Development Program Croatia – Between Preserving Natural Resources and Economic Transformation | Dr. Stefan Dräger 6 .6 Environmental Management in Croatia – Nature Conservation in the Conflict of Interests among Tourism, Agriculture, Transportation, and Housing Construction | Dr. Stefan Dräger 67 .7 Land and Soil: Valuable Resources – Land Management in Transition Countries | Reinhold Thomas Bäuerle 70 .8 Coastal Protection and Sustainable Tourism – Integrated Coastal Zone Management in Montenegro | Thomas Waldraff 72 .9 Economic Development in Bosnia and Herzegovina (BiH) – Integrated Experts (CIM) in Cantonal Economic Promotion | Alexander Märdian 7 .10 The Development Corporation Tuzla – a Regional Development Agency in the Post-Conflict Situation in Bosnia and Herzegovina | Wulf H. Goretzky 76 .11 Spatial Planning between Environmental Needs, Social Demands, and Economic Objectives – the Example of Montenegro | Thomas Waldraff 78 .12 On the Path to a Learning Society – Sustainable Regional Development through Networking and 5 Cooperation | Dr. Annegret Westphal, Dr. Petra Stremplat-Platte 80 .13 Industrial Zone Montenegro – Industrial Zone for Domestic Investors or Hope for Foreign Investors | Ulrike Gantzer-Sommer 8 5 Municipal and Local Economic Development 87 5.1 Stimulating Participatory, Pragmatic Local Economic Development in South-Eastern Europe: Experiences with PACA | Dr. Jörg Meyer-Stamer, Frank Wältring 89 5.2 Help Toward Self-Help – PACA as an Instrument for Local Economic Development in Serbia and Bosnia and Herzegovina | Ute Dannenmann 91 5.3 Cross-Sectoral Instruments for Economic Development – Municipal and Regional Economic Development in Bulgaria | Karlheinz Zahn 9 5. Municipal Partnerships – Networks at the Local and Regional Levels | Axel Mayer, Elke Breckner 96 5.5 Urban Development and Green Space Management in Albania’s Capital City Tirana | Sokol Celo, Martina Craemer-Möller, Lucie Gumbrecht 101 5.6 Restoration of the Historical City Center and Location Development – Maintaining Building Structure and Promoting Tradespeople as a Municipal Policy Theme in Sibiu, Romania | Steffen Mildner 103 5.7 The Business Incubator as an Employment Promotion Instrument in Kosovo | Peter Welling 106 5.8 Yesterday Electrification,
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