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Socio Economic Analysis of Northern Montenegrin Region

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Socio Economic Analysis of Northern Montenegrin Region SOCIO ECONOMIC ANALYSIS OF THE NORTHERN REGION OF MONTENEGRO Podgorica, June 2008. FOUNDATION F OR THE DEVELOPMENT O F NORTHERN MONTENEGRO (FORS) SOCIO -ECONOMIC ANLY S I S O F NORTHERN MONTENEGRO EXECUTIVE DIRECTOR : Veselin Šturanović STUDY REVIEWER S : Emil Kočan, Nebojsa Babovic, FORS Montenegro; Zoran Radic, CHF Montenegro IN S TITUTE F OR STRATEGIC STUDIE S AND PROGNO S E S ISSP’S AUTHOR S TEAM : mr Jadranka Kaluđerović mr Ana Krsmanović mr Gordana Radojević mr Ivana Vojinović Milica Daković Ivan Jovetic Milika Mirković Vojin Golubović Mirza Mulešković Marija Orlandić All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means wit- hout the prior written permission of FORS Montenegro. Published with support from the United States Agency for International Development (USAID) through the CHF International, Community Revitalization through Democratic Action – Economy (CRDA-E) program. The opinions expressed herein are those of the authors and do not necessarily reflect the views of the U.S. Agency for Interna- tional Development. For more information please contact FORS Montenegro by email at [email protected] or: FORS Montenegro, Berane FORS Montenegro, Podgorica Dušana Vujoševića Vaka Đurovića 84 84300, Berane, Montenegro 81000, Podgorica, Montenegro +382 51 235 977 +382 20 310 030 SOCIO ECONOMIC ANALYSIS OF THE NORTHERN REGION OF MONTENEGRO CONTENTS ABBREVIATIONS: ................................................................................................................................................................ 8 PREFACE ................................................................................................................................................................ 9 PREAMBLE ..............................................................................................................................................................10 SUMMARY ..............................................................................................................................................................11 I PART ..............................................................................................................................................................17 1. GEOGRAPHY AND TOPOGRAPHY..............................................................................................................................19 1.1. DESCRIPTION OF THE NORTHERN REGION ..............................................................................19 1.2. RELIEF CHARACTERISTICS ..............................................................................................................21 2. SPATIAL CHARACTERISTICS .........................................................................................................................................26 2.1. WATER RESOURCES ............................................................................................................................26 2.2. LAND .......................................................................................................................................................30 2.3. MINERALS ..............................................................................................................................................31 2.4. CLIMATE .................................................................................................................................................33 3. POPULATIONS AND DEMOGRAPHY .........................................................................................................................35 3.1. BASIC POPULATION CHARACTERISTICS ....................................................................................35 4. HUMAN RESOURCES AND LABOR MARKET ..........................................................................................................38 4.1. ACTIVITY ................................................................................................................................................38 4.2. EMPLOYMENT ......................................................................................................................................40 4.3. UNEMPLOYMENT ................................................................................................................................44 4.4. HUMAN DEVELOPMENT ..................................................................................................................46 5. INFRASTRUCTURE ...........................................................................................................................................................48 5.1. ROAD INFRASCRUCTURE ................................................................................................................48 5.2. RAILWAY SYSTEM ...............................................................................................................................51 5.3. AIR TRAFFIC ..........................................................................................................................................51 5.4. INFRASTRUCTURE FOR ENVIROMENTAL SUSTAINABILITY ..................................................52 5.4.1. WATER SUPPLY ....................................................................................................................52 5.4.2. SEWAGE AND WASTE WATER SYSTEM ........................................................................53 5.4.3. SOLID WASTE MANAGEMENT ......................................................................................55 5.5. ENERGY INFRASTRUCTURE AND ENERGY SUPPLY ................................................................56 5.5.1. ENERGETIC FACILITIES ...................................................................................................................57 5.5.1.1. HYDRO PLANTS ...............................................................................................................57 5.5.1.2. TPP PLJEVLJA ....................................................................................................................59 5.5.1.3. POTENTIAL ENERGY SOURCES ...................................................................................60 5.6. INDUSTRIAL INFRASTRUCTURE .....................................................................................................61 5.7. INFORMATION-COMMUNICATION TECHNOLOGIES INFRASTRUCTURE .........................62 5.7.1. LAND LINE TELEPHONY ...................................................................................................63 5.7.2. MOBILE TELEPHONY ..........................................................................................................64 5.7.3. TV .............................................................................................................................................64 5.7.4. INTERNET ...............................................................................................................................66 5.8. EDUCATION INFRASTRUCTURE .....................................................................................................67 5.9. SOCIAL INFRASTRUCTURE ..............................................................................................................70 5.9.1. SOCIAL SERVICES................................................................................................................71 5.9.2. EMPLOYMENT CENTERS AND AGENCIES ...................................................................72 5.10 SPORT AND RECREATION .................................................................................................72 3 SOCIO ECONOMIC ANALYSIS OF THE NORTHERN REGION OF MONTENEGRO 6. ECONOMY AND BUSINESS ...........................................................................................................................................80 6.1. MACROECONOMIC INDICATORS ......................................................................................80 6.2. FOREIGN DIRECT INVESTMENTS ......................................................................................82 6.3 LOCAL GOVERNMENTS FINANCING IN MONTENEGRO ........................................................83 6.3.1 REVENUES OF THE LOCAL GOVERNMENTS ................................................................83 6.3.2. ANALYSIS OF BUDGET REVENUES AND EXPENDITURES OF THE MONTENEGRIN LOCAL GOVERNMENTS IN THE PERIOD JANUARY-JUNE 2007 84 6.4. SECTORAL ANALYSIS .........................................................................................................................86 6.4.1. COMPANIES BUSINESS EFFICIENCY ............................................................................86 6.4.2. NORTHERN REGION’S BUSINESS BARRIERS .............................................................89 6.5. FINANCIAL INSTITUTIONS ..............................................................................................................90 6.5.1. BANKING SECTOR ...............................................................................................................90 6.5.2. MICRO CREDIT INSTITUTIONS ........................................................................................91 6.6. AGRICULTURE ......................................................................................................................................92 6.7. TECHNICAL-TECHNOLOGICAL INSTITUTIONS .........................................................................99 6.8. TOURIST INFRASTRUCTURE ...........................................................................................................99
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