1. CROSS-BORDER REGION „KRŠ “ (Introductory Remarks)
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KRSH Preparation for implementation of the Area Based Development (ABD) Approach in the Western Balkans BASELINE STUDY AND STRATEGIC PLAN FOR DEVELOPMENT OF THE CROSS-BORDER REGION “KRŠ” BASELINE STUDY AND STRATEGIC PLAN FOR DEVELOPMENT OF THE CROSS-BORDER REGION KRŠ “This document has been produced with the financial assistance of the European Union. The contents of this document are the sole responsibility of the Regional Rural Development Standing Working Group in South Eastern Europe (SEE) and can under no circumstances be regarded as reflecting the position of the European Union.” This document is output of the IPA II Multi-country action programme 2014 Project ”Fostering regional cooperation and balanced territorial development of Western Balkan countries in the process towards EU integration – Support to the Regional Rural Development Standing Working Group (SWG) in South-East Europe” 2 BASELINE STUDY AND STRATEGIC PLAN FOR DEVELOPMENT OF THE CROSS-BORDER REGION KRŠ Published by: Regional Rural Development Standing Working Group in SEE (SWG) Blvd. Goce Delcev 18, MRTV Building, 12th floor, 1000 Skopje, Macedonia Preparation for implementation of the Area Based Development (ABD) Approach in the Western Balkans Baseline Study and Strategic Plan for development of the cross-border region “Krš” On behalf of SWG: Boban Ilić Authors: Suzana Djordjević Milošević, Ivica Sivrić, Irena Djimrevska, in cooperation with stakeholders from the region “Krš” Editor: Damjan Surlevski Proofreading: Ana Vasileva Design: Filip Filipović Photos: SWG Head Office/Secretariat and Ivica Sivrić CIP - Каталогизација во публикација Национална и универзитетска библиотека "Св. Климент Охридски", Скопје 352(497) DJORDJEVIĆ Milošević, Suzana Preparation for implementation of the area based development (ABD) approach in the Western Balkans : Baseline study and strategic plan for development of the cross-border region "KRŠ" / [authors Suzana Djordjević Milošević, Ivica Sivrić, Irena Djimrevska]. - Skopje : Standing working group for regional rural development (SWG), 2017. - 231 стр. : илустр. ; 30 см Публикацијата е во рамките на проектот: "Fostering regional cooperation and balanced territorial development of Western Balkan countries in the process towards EU integration - support to the regional rural development standing working group (SWG) in South-East Europe" ISBN 978-608-4760-20-7 1. Sivrić, Ivica [автор] 2. Djimrevska, Irena [автор]. - I. Milošević, Suzana Djordjević види Djordjević Milošević, Suzana а) Локална самоуправа - Меѓународна соработка - Балкан COBISS.MK-ID 103427338 3 BASELINE STUDY AND STRATEGIC PLAN FOR DEVELOPMENT OF THE CROSS-BORDER REGION KRŠ LIST OF ABBREVIATIONS ABDA Area-Based Development Approach B&H, BiH Bosnia and Herzegovina CAP Common Agricultural Policy (EU) CB Cross Border CBC Cross Border Cooperation CBD Convention for Biological Diversity CEFTA Central European Free Trade Agreement CRO Croatia CSO Civil Society Organization DG AGRI Directorate General for Agriculture EC European Commission EU European Union EUR Euro (currency) FAO Food and Agricultural Organization FDI Foreign Direct Investments F B&H Federation of Bosnia and Herzegovina FF Family Farms GDP Gross Domestic Product GIZ German International Cooperation HACCP Hazard Analysis and Critical Control Points ICT Information and Communication Technologies IFAD International Fund for Agricultural Development IPA Instrument for Pre-Accession Assistance (EU) IPA CBC Instrument for Pre-Accession Assistance for Cross Border Cooperation IPARD Instrument for Pre-Accession Assistance Rural Development ISO International Organization for Standardization JICA Japan International Cooperation Agency JRC IPTS Joint Research Center of EC, Institute for Prospective Technological Studies KUD Cultural and Art Organization LAG Local Action Group LEADER Liaison Entre Actions de Développement de l'Économie Rurale (FR) LED Local Economic Development LFA Less Favorable Area 4 BASELINE STUDY AND STRATEGIC PLAN FOR DEVELOPMENT OF THE CROSS-BORDER REGION KRŠ MNE Montenegro NGO Non-Governmental Organization NP National Park NUTS Nomenclature for Territorial Units for Statistics OECD Organization for Economic Co-operation and Development OECD-DAC Organization for Economic Co-operation and Development, Development As- sistance Committee PDO Protected Designation of Origin PGI Protected Geographic Indication PP People to People RD Rural Development RDA Regional Development Agency RS Republic of Srpska SEE South Eastern Europe SHG Stakeholder Group SIDA Swedish International Development Cooperation Agency SME Small and Medium Size Enterprises SWG RRD Standing Working Group for Regional Rural Development in South Eastern Europe SWOT Strengths, Weaknesses, Opportunities and Threats TBC To be confirmed TBD To be defined TO Tourism Organization UNDP United Nations Development Programme UNESCO The United Nations Educational, Scientific and Cultural Organization USAID United States Agency for International Development WB Western Balkans WWF Med Pro World Wild Fund for Nature- Mediterranean Protection 5 BASELINE STUDY AND STRATEGIC PLAN FOR DEVELOPMENT OF THE CROSS-BORDER REGION KRŠ TABLE OF CONTENTS 1. CROSS-BORDER REGION „KRŠ “ (introductory remarks)................................................................08 2. BASELINE ANALYSIS OF THE CROSS-BORDER REGION „KRŠ“ ...............................................13 2.1. Introduction...................................................................................................................................13 2.2. Short history of the Region “KRŠ”...........................................................................................15 2.3. Geographical position and traffic connections.........................................................................16 3. HUMAN POTENTIALS....................................................................................................................17 3.1. Demography.............................................................................................................................17 3.2. Education..................................................................................................................................23 3.3. Civil society organizations (CSO) and private sector................................................................27 3.4. Social exclusion........................................................................................................................30 4. NATURAL AND CULTURAL RESOURCES......................................................................................31 4.1. Natural resources.....................................................................................................................31 4.2. Historical and cultural heritage...............................................................................................32 5. ECONOMIC ACTIVITIES AND POSSIBILITIES...............................................................................35 5.1. Infrastructure and connections in the region............................................................................35 5.2. Employment..............................................................................................................................38 5.3. Sectoral division of local economy...........................................................................................42 5.4. Land usage and agriculture......................................................................................................45 5.4.1. Plant production............................................................................................................47 5.4.2. Animal production.........................................................................................................49 5.4.3. Agricultural environment...............................................................................................50 5.5. Tourism sector..........................................................................................................................52 5.6. Other sectors............................................................................................................................56 5.6.1. Processing food industry..............................................................................................56 5.6.2. Forestry sector and wood processing..........................................................................56 5.6.3. Energy...........................................................................................................................57 5.6.4. Metal processing industry.............................................................................................57 5.6.5. Construction..................................................................................................................58 5.6.6. Trade, traffic and information and communications technology sector (ICT)...............58 6. CROSS-BORDER COOPERATION AND INSTITUTIONAL POSSIBILITIES....................................60 6.1. Human, legal and financial possibilities....................................................................................60 6.2. Capacities for improvement of cross-border cooperation........................................................61 6 BASELINE STUDY AND STRATEGIC PLAN FOR DEVELOPMENT OF THE CROSS-BORDER REGION KRŠ 7. CONCLUSION - GENERAL OBSERVATION ON THE REGION......................................................63 7.1. Region “KRŠ”