Socio-Economic Analysis of the Municipality

SSOOCCIIOO--EECCOONNOOMMIICC AANNAALLYYSSIISS ooff tthhee MMUUNNIICCIIPPAALLIITTYY PPRRIIJJEEPPOOLLJJEE

July 2007

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Socio-Economic Analysis of the Municipality Prijepolje

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Socio-Economic Analysis of the Municipality Prijepolje

I N D E X

INTRODUCTION ...... 5

BASIC GEOGRAPHIC AND HISTORICAL DATA...... 7 GEOGRAPHY AND TOPOGRAPHY ...... 7 HISTORICAL DATA ...... 10 NATURAL RESOURCES ...... 11 Land . …… ...... 11 Forests...... 11 Ores ...... 12 Mineral and Geo-Thermal Waters and Springs...... 12

POPULATION...... 13 POPULATION BREAKDOWN ...... 13

LOCAL SELF-GOVERNMENT...... 18 STRUCTURE OF PUBLIC RULE...... 18 E-ADMINISTRATION...... 18

FUNCTIONAL REVIEW...... 20

CITIZEN SATISFACTION SURVEY...... 52

HUMAN RESOURCES AND LABOR MARKET...... 87 EMPLOYABILITY ...... 87 Employment -structure ...... 87 UNEMPLOYMENT ...... 89 Unemployment – structure ...... 89

ECONOMY ...... 91 NATIONAL INCOME AND SOCIAL PRODUCT ...... 91 ECONOMIC EXCHANGE WITH ABROAD ...... 94 ECONOMY ENTITIES ...... 95 Enterprises ...... 95 . Sole trade ...... 96 . Large economy systems...... 97 Small and Medium Enterprises ...... 98 FINANCIAL INSTITUTIONS ...... 99

AGRICULTURE ...... 100 RESOURCES ...... 100 Farming Area ...... 100 Farming Households ...... 101 Farming Population ...... 101 Services for Farmers ...... 101

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Socio-Economic Analysis of the Municipality Prijepolje

AGRICULTURE PRODUCTION ...... 102 Crop farming – production of wheat and corn...... 102 Vegetable growing – production of kitchen-vegetables ...... 102 Fruit growing – production of apples and plums ...... 103 Cattle breeding ...... 103 . Processing Capacities ...... 104

INFRASTRUCTURE...... 105 . Road and Railroad Network...... 105 Water supply system and Waste Management...... 105 Electrification, gasification and heating...... 106 . Spatial Planning...... 106 Telecommunications...... 106

TOURISM ...... 107 Tourist Sites ...... 107 Accommodation Capacities ...... 108 Realized Visits ...... 108

EDUCATION ...... 109 Preschool Education ...... 109 Primary Education ...... 109 Secondary Education ...... 110 Post Secondary Education ...... 111

HEALTH AND SOCIAL WELFARE ...... 112 HEALTH PROTECTION ...... 112 SOCIAL PROTECTION ...... 112

CULTURE AND SPORT...... 114 CULTURE ...... 114 Cultural-Historical Heritage ...... 114 Cultural Manifestations ...... 114 SPORT AND RECREATION ...... 115

INFORMING ...... 116

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Socio-Economic Analysis of the Municipality Prijepolje

INTRODUCTION

Strategic planning process has a dominant role in the kick -off phase of local economic development with an aim to enhance socio -economic situation of community with joint efforts of all concerned parties. To that end Socio-Economic Analysis has very important role and stands for the analytical base for starting off strategic oriented socio -economic development. Analysis offers the insight into current state of affairs , identifying problems and development assumptions on the basis of which in the next stage it will be possible to suggest specific measures for their overcoming Methodology of making Socio -Economic Analysis assumed before all formation of local work groups (in targeted municipalities), development of their capacities (representing the basis of Local Economy Development – LED and Socio-Economic Analysis), as well as the activities of work coordination of these work-groups. To the purpose of making Socio-Economic Analysis both quantitative and qualitative types of researches are applied, „desk” and «field work» researches. Researches were done in close cooperation with REDASP and local work groups, local self -governments and institutions. Work group for making Socio-Economic Analysis consisted of the representatives of the Municipality, Multi-Media Centre, Institution for Sport, public companies and Agency for Urbanism and Construction, as well as, of other important institutions. As sources of data for making socio-economic analysis, statistic data of the National Statistic Agency were used along with the data of the National Bank of , National Agency for Privatization, archive documentations and internet presentations of economy subjects, local self-government and other relevant institutions. Very important source of information represents two polls that encompassed field of local infrastructure and most important economy subjects. The stress is made on current data (from 2005 or 2006) that were compared with the data from earlier periods (e.g. 1999) in order to get trend lines of certain indicators and parameters Analysis making certain assumptions and obstacles are met that are overcome in the degree possible. Inconsistency of data that stemmed from different resources represented special problem in the process of selection of relevant sources of data. Work group beside all efforts was not able to provide information on agriculture farms. For that reason analysis of these data is not constituent part of the Socio-Economic Analysis document. Socio-Economic Analysis is a reflection of collected data on socio -economic situation, given through personal insight and conclusions of the authors. Results of the analysis are not final consequently it is expected to be expanded and renewed through analysis of updated data.

Author Regional Agency for Economic Development of Šumadija and Pomoravlje

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Socio-Economic Analysis of the Municipality Prijepolje

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Socio-Economic Analysis of the Municipality Prijepolje

BASIC GEOGRAPHIC AND HISTROICAL DATA

Geography and Topography

Municipality of Prijepolje is situated in the southwest part of Serbia in the area of middle Polimlja between 43° 09' 25'' Prijepolje and 43° 29' 42'' north geogra- phic latitude and 19° 27' 00'' and 19° 53' 45'' of east geographic longitude. It is one Sremska of 10 municipalities of the Mitrovica District of . Total area 2 Šabac Pancevo of the municipality is 827 km , BEOGRAD and represents second largest Požarevac municipality of the district.

Municipality of Prijepolje had Cacak 41.188 inhabitants according Bor to the census in 2002 and Užice Zajecar accounted for 13, 14% of the Kruševac population of the District of Niš Zlatibor, and municipalities of the District of Zlatibor. Kosovska Mitrovica Average height of Prijepolje Pec above sea-level is 1.200 m Priština that classifies the area into hilly-mountainous region, with Gnjilane the highest peak of Jadovnik

(Katunic) 1.734 m high. Lowest point is at the confluence

Kosjeric of the River Mileševka into at 440 m above sea-level.

Bajina Bašta Morphology of the territory of Prijepolje has several smal- Poegaž Užice ler units that all together make the area of middle Polim- lja. Lowest areas of Prijepolje region are alluvial planes of Cajetina the river valleys: Lim, Seljašnica, , Mioska, Ko- maranske Rivers and Mileševka. The valley of Lim is extended near and Prijepolje; the River Lim Nova Varoš flows through narrow gorge cut mostly in lime, partially in Prijepolje serpentine and other rocks. The valley of Lim extends in the vicinity of the village on the right side into special Ivanjsko field and on the left side into Zupsko field. Ivanjsko-Zupsko field is unique field that the River of Lim in the length of 8 km intersects into two. In Sokolicko- Cadinjsko massif, situated in the northeast of the Ivanjsko - Zupske valley, Lim cuts the gorge 2 km long, that further

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Socio-Economic Analysis of the Municipality Prijepolje

expands into Prijepoljsko-Zaluško field. Extension in the valley of Lim (Brodarevska, Ivanjsko- Zupska and Prijepoljsko-Zaluška valley) from where rise mild and steep planes, they were substantial factor in creation and shaping of rural areas, the settlement of Brodarevo and urban settlement Prijepolje. 2 , area (in km ) On such geo-morphology relief forms the 1.200 settlements are founded at the average 1.000 800 height above sea-level under 500 meters such 1.059 as: (470 m), Prijepolje (450 m),

600 827 667 673 400 647 Kolovrat (460 m), Seljašnica (470 m), Ivanje 581 553 200 (457 m), Gracanica (480 m), Pranjci (500 m), 426 349 358 0 Lucice (495 m), Brodarevo (500 m), (470 m), Mioska (480 m) and Kucin (480 m). Arilje Nova Užice Priboj Varoš Bašta Bajina Sjenica Požega Cajetina Kosjeric Prijepolje Side valleys of the River Lim along the Source: National Agency for Statistics Rivers of Grobljanska, Zebuda, Mileševka, Gostunska, Slatinska, Komaranska river, Gracanica, Mioska, Ratajska, Seljašnica and Ljupac are made of numerous extensions, mild and steep slopes. Some of them are dense populated, since they lean on to extensions of Brodarevo and Prijepolje valley. These are hills of the nearby mountains with average height of 500 to 1.000 m above sea-level.

That band encompasses larger number of Zlatibor District, population in 2002 - 313.396 villages with average relief height: Sjenica 6,31% 8,92% Prijepolje (525 m), (650 m), Oštra Stijena (760 4,47% 13,14% 10,30% Bajina Bašta m), (660 m), (740 m), Ivezici Užice (620 m), Bjelahova (610 m), Balici (550 m), Cajetina Gojakovici (620 m), Zavinograde (560 m), Nova Varoš Priboj 9,69% (510 m), (540 m), Potkrš 9,30% Požega 6,38% (560 m), Orašac (950 m), (850 m), Kru- 4,99% 26,49% Kosjeric ševo (980 m), Miljevici (750 m), (680 Arilje m), Skokuce (1.000 m), Karoševine (900 m), Source: National Agency for Statistics (800 m), Zvjezd (1.000 m), Seljani (720 m), Cadinje (560 m), Dušmanici (560 m), Ðurašici (650 m), Izbicanj (520 m), (1.000 m), Džurovo (950 m), (650 m), (750 m), Sedobro (790 m), Mileševo (700 m), Hisardžik (770 m), Kacevo (1.000 m), Divci (750 m), (1.000 m), Taševo (670 m), Cauševici (640 m), Koševine (700 m), (600 m), Kovacevac (560 m) and Orovac (950 m), Third natural entity of the relief of the Municipality of Prijepo lje are mountains area: Jadovnik, , Pobijenik, Lisa, Kamena and Karst valleys Jabuke and Babina. From the right bank of Lim spread steep slopes of the Mountain Jadovnik all the way to Ozren in the southeast part up to the confluence of Milesevska into Lim, in the northwest part. To the west from the River Lim, in the area of Prijepolja and Priboj, rises Pobijenik (1.423 m), and among Brodarevo and Bijelo Polje Lisa (1.509 m).In the area of Lisa and Pobijenik above limy rocks dominate Paleozoic slates and other rocks. Here the area is more supplied with water and the conditions are favourable for vegetation . In the west and northwest part of the territory of the Municipality of Prijepolje lies Jabucko - Babinska high plane that is largely Karstified and bared. This is the area of Karst intervenied with numerous Karst valleys, without trees, dry and exposed to strong winds and rigid winters. Shallow land is dominant and is good for pastures, less for crops and is accordingly well-known as cattle –breeding area of Prijepolje. In the area of mountains numerous settlements are founded at average heights above 1.000 meters. These are: (1.050 m), (1.100 m), Kašice (1.050 m), (1.180 m), Juncevici (1.120 m), (1.250 m), (1.100 m), (1.150 m), (1.150 m), (1.100 m), (1.150 m), Pravoševo

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Socio-Economic Analysis of the Municipality Prijepolje

(1.320 m), Muškovina (1.200 m), Medani (1.060 m), Aljinovici (1.200 m), Gornji Goracici (1.250 m), (1.250 m), Milošev Do (1.250 m), Mrckovina (1.100 m) and Milakovici (1.100 m). Wider area of Prijepolje that is part of the municipality is situated among the peaks of the mountains: Zlatar (1.627 m) in the east and northeast, Jadovnik (1.734 m) in the east and southeast. Pobijenika (1.423 m) in the north and northwest, Kamena Gora (1.483 m) and Mijajlovica (1.411 m) in the west and Lisa (1.509 m) in the south. Jadovnik is limy mountains in the shape of plain . It is bare and segmented into smaller relief forms, that steeply descends towards the valley of the River Lim and its tributaries . Due to steep slopes the erosion processes are very present. In the eastern and norteastren part of the territory of the Municipality Prijepolje spreads along with the Mountains Jasovnik the Mt. Zlatar with the relief that is divided into sections by fluvial erosions of the right tributaries of the rivers Mileševka and Lim. The area is well forested and has less pastures than the Mt. Jadovnik. Kamena gora is mountainous lofts in the western part of the territory of the Municipality Prijepolje that rises up to 1.483 meters. It is rich with numerous water springs, forests and temperate climate that provides excellent conditions for rest and recreation . Lim is the longest river that flows through the territory of the Municipality Prijepolje, and all smaller water courses flows into it. Prijepolje is intersected with the valley of the River Lim in the direction southeast–northwest and is connected with numerous smaller rivers. This river has the characteristics of composite valley because it is there where between Bijelopolje and Priboj vallies interchange gorges with river extensions – valleys. On the left side Rivers Gostunska, Slatinska, Komaranska, Gracanica, Mioska, Ratajska, Seljašnica and Ljupca flows into Lim while the right tributaries of the River Lim are: Grobljanska, Stranjanska, Dubocica, Kruševica, Ribnjak, Zebuda, Mileševka and . Most of the rivers are of torrent character. Municipality Prijepolje is at the point where continental and maritime air masses meet. It is 140 km far from the Adriatic Sea in the air line, and from the P anonian plane 160 km, air line distance. The fact is that among the Adriatic Sea and the Panonian Plain spreads high mountain ranges that prevents further breakthrough of continental and maritime influences in the area of Prijepolje. Accordingly, Prijepolje has temperate – continental climate that is influenced by the nearby relief. Average annual temperature is 9.3°C. - Coldest month - January - Hottest month – July, average temperature 19,1oC - Average annual temperature 9,3 oC - Month with most falls - June - Driest month - March - Average annual falls 65,80 l/m2 - Number of days with temperature over 25°C – 60 - Number of days with low temperatures (below zero) – 60 - Number of snowy days 60 (maximum 90) - Most falls – month, June average 92,7 l/m2 - Least falls – month March, average 40 l/m2 Valorization of geographical position of the area is made after the World War 2 with the construction of roads and industry development. The construction of the net of highways, regional and local roads actively connected Prijepolje with places in and Serbia . To the south of Prijepolje by the valley of the River Lim the road leads to Bijelo Polje that is 55 km far and further to Mojkovac, Kolašin, Podgorica and Bar, and north from Prijepolje

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Socio-Economic Analysis of the Municipality Prijepolje

towards Bistrica that is 10 km far and branches into two directions: one towards Nova Varoš that is 27 km far from Prijepolje, and second direction towards Priboj that is 30 km far and further over Mountain Zlatibor, towards Užice, Požega, Kosjeric, Valjevo, and other places. West from Prijepolje the road leads by the valley of Seljašnica over mountain valley of Jabuka towards 30 km distant, and to the east of Prijepolje by the valley of Milesveka and the Mountain Jadovnik towards Sjenica 30 km far and on towards , Pristina and Skopje.

Historical Data

Settled in the Roman time, middle Polimlje was part of the oldest Serbian state Raška. In the first written records Prijepolje is mentioned as a square of the Monastery Mileševa i.e. in the contract from 1343 that referred to the salt trade among and Prijepolje. This source explicitly states that there was a square in Prijepolje or most probably one of the squares of Monastery property that allows supposition that Prijepolje is founded in the time of erection of the Monastery of Mileseva and formation of its noblemen . Prijepolje developed as settlement on the caravan road known as „Dubrovnik Road“ that connected central and eastern parts of the with central part of the Adriatic coast . Dubrovnik’s road ran all the way from Dubrovnik or Kotor, by old Roman road over Pljevalja and Prijepolje, by the valley of Mileševka to the Monastery of Mileševa, and from there over Mileševo valley to Sjenica, Ras – Trgovište, continuing to Novo , Priština, Trepca all the way to east parts of the Balkan Peninsula – Sofia and Constantinople. Second important road was „Bosnian Road“ that ran from Dobruna, Belio brdo, , Priboj, , Kratova towards Nova Varoš connecting in Sjenica with Dubrovnik’s Road. From Bosnian Road near the Monastery of Banja one road branched in the direction to Prijepolje that speeded on the left bank of Lim. From Dubrovnik’s and part of Bosnian road branched the road from Prijepolje to upper Polimlje that probably connected Breskovo, too. Medieval Square (the urban settlement Prijepolje developed from) was erected on fluvial terraces of Lim, on their right bank in the vicinity of the confluence of the River Milesevka and Lim. That place by its natural conditions was excellent for the goods exchange between the mountains and county. Among the elements that substantially contributed to development of the square into settlement on the expositions of the terraces of lower slopes of the northwest part of Jadovnik. Such expositions were the safest places from the floods and at the same time citizens could preserve the fertile land areas. The fact that the Monastery Mileseva was very near supported the development of the square . By the middle of the 14 th century Prijepolje got all the characteristics of the settlement with the square as a central part in it. The development of Prijepolje square was largely based on its favorable position because it was situated on the crossroads. Although it is said that Prijepolje was caravan station, it was much more than that; arrival and departure of the caravans, meetings of the traders and their escorts brought new life into town and broadened the mind of the citizens in the area . Visits and stay of the traders in Prijepolje facilitated the inhabitants of the city to start trading business that contributed to the well supplied square, gathering of people from near and distant places. The flourishing of Prijepolje in the 14 th century was also a period of rule of Grand Duke Nikola Altomanovic. Big changes occurred in the middle of the 14 th century when this territory along with other parts of Serbia fell under Turkish rule . The conquered territory by the Turks caused the change of ethnic structure of Prijepolje and the valley and the appeared where Christians lived. Real Turks were always few in the area, while the adoption of the Muslim religion of Christian people occurred during all period of the Turkish rule.

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Socio-Economic Analysis of the Municipality Prijepolje

By the end of the 19th century mighty Austria-Hungarian monarchy arrived to the banks of Lim and the impact of their civilization and culture was felt. After big world wars that marked the 20 th century Prijepolje in the second part of the 20th century began to flourish and to develop economy that were put to stop with the dissolution of the Yugoslavia by the end of the 90ies of the last century.

Natural Resources

Land Territory of the Municipality of Prijepolje is very diverse and picturesque : from mild valleys of Lim (Brodarevo, Velikozupska, Ibanjska, and Prijepolje- Zaluska), thick forests (Zlatar, Jadovnik, Kame- na gora, Lisa, Pobijenik and Ozren), mountainous pastures (Kamena gora, Jabuka, Babina, Vrbova, Stra- njani, Aljinovici, Pravoševa and others), all the way to the canoyon (Mileševka, Lim and Dubocica) and waterfalls of Sopotnica. Farming land covers in the area 38.205 ha and represents important natural resource. The most fertile land un the valley of Lim and its tribu- taries is still under pressure of intensive construction of the buildings for inhabitants that moves in from the near and distant settlements of the Municipality. In some settlements of the Municipality of Prijepolje, especially in the areas of the villages on the right bank of the valley Mileševka and on the left bank of the valley of Lim, land slides appear as a consequence of road construction, building construction and other objects on the steeper slopes of the relief, as well as, unsolved issue of waste waters. All natural preconditions exist on such slopes for appearance of the land slides; slopes are mostly of clay slide plane on the slope, then the terrain has a lot of water and devil deposits.

Forests Important natural resource of the Municipality Prijepolje represents relief forms as a product of different geomorphologic processes. Especially important are valleys of the rivers of the canyons (canyons of Lim, Mileševka and Dubocica) with diverse flora and fauna. Plant species that are particularly important: Serbian spruce, rare specie, endemic flora species of black pine, sweet chestnut in the canyon of Mileševka and yew-tree in the canyon of Dubocica. In the upper, mouth part of the river So- potnica there is a large complex of drip- stones, over which water of the River Sopotnica flows, forming waterfalls. Exploitation of dripstone as a construc- ting material brought to termination of the dripstone reserves. Due to that it is necessary to put that nature well under State protection. Territory of the Municipality Prijepolje has substantial complexes of forests in the area of Zlatara, Jadovnika, Ozrena, Lise, Kamene gore, Babina, Pobijenika and other mountainous area. These areas have fresh, clean air-

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Socio-Economic Analysis of the Municipality Prijepolje

and scent ether oils. Unfortunately some forests trees are drying, not only conifers but deciduous trees, too. That is a consequence of „acid rains“, created by realizing different oxides into atmosphere by burning fossil fuels in automobiles, households and factories. In the end it should be mentioned that according to data of „Srbijašume“ in the Municipality Prijepolje in social ownership there is 65.523,63 ha of forests. Conifers species cover 6.525,87 ha, while undergrowth covers 22.220,32 ha.

Ores For the further development of Prijepolje especially important are reserves of the copper ore on Cadinje above Kolovrat with high percentage of the copper and other ore minerals, as well as, findings of mineral water springs of the 14oC temperature in the valley of Seljašnica.

Mineral and Geothermal Waters and Springs Special natural wealth of this area are hydrology objects : water springs and land water courses of Seljašnica, Mileševka, Lim and other rivers. Prijepolje is supplied with water from the well Seljašnica. Well consists of two permanent and several temporary springs. One permanent spring is on the left bank of Seljašnica. It is tapped and used for the city water supply. Second is on the left bank, also tapped and its water is used by hydro power plant Seljašnica and partially city water system. Capacity of the well Seljašnica is 220 – 240 l/s, that represents most important and only natural source used for water supply of the municipality Prijepolje. Concerning water supplying of the city and vicinity, Prijepolje has better resources than many other municipalities in Serbia .

Source: Local self-government Guide through cultural- historical heritage of Prijepolje, NGO „Nova Vizija” Web presentation: www.prijepolje.org National Hydrometeorology Agency

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Socio-Economic Analysis of the Municipality Prijepolje

POPULATION

Results of the last census of the population of the Municipality of Population of the Municipality Prijepolje Prijepolje indicate radical down- 48.000 46.902 46.525 sizing of the population for 11,5% after the period of population 46.000 growth in the previous period. 44.000 This population downsizing 44.022 occurred in the 90ies as a result of 42.000 migrations in the situation of war 41.188 clashes, difficult state of economy 40.000 and substantial degradation of 38.000 quality and living conditions. Census 1971 Census 1981 Census 1991 Census 2002

Source: National Agency for Statistics

Population Structure Gender population structure 24.000 As for the sex structure of population of 23.000 the Municipality Prijepolje, female popu- 22.000 23.452 23.450 23.297 23.228 lation outnumbers male population very 21.000 22.091

21.931 little and that difference is 0,9%. It is 20.000 interesting that only the census of popu- 19.000 20.772 20.416 lation in 1991 confirmed the majority of 18.000 male population, in the census of 1981 the m f m f m f m f ratio was equal. Census 1971 Census 1981 Census 1991 Census 2002 Source: National Agency for Statistics

Age Breakdown of Population Census 1971 1981 1991 2002 Most numerous contingent of popula- 0 - 4 4.941 4.208 3.780 2.147 tion is those age 15-19 according to 5 - 9 5.173 4.463 3.731 2.651 official censuses in 1981, 1991 and 10 - 14 5.034 4.767 3.996 3.157 15 - 19 4.850 5.026 4.109 3.312 2002. Although this contingent main- 20 - 24 4.083 4.236 4.103 3.108 tains majority compared to other age 25 - 29 2.960 3.757 3.690 2.855 groups, indicative is the participation of 30 - 34 3.386 3.354 3.370 2.698 the population up to 25 that dropped 35 - 39 3.025 2.685 3.178 2.769 from 55%, census 1971, to 35% census 40 - 44 2.483 3.157 3.035 2.841 2002. Reason for that might be, before 45 - 49 1.681 2.868 2.422 2.967 all, intensive migration of population in 50 - 54 1.240 2.281 2.852 2.809 th the last decade of the 20 century. 55 - 59 1.159 1.611 2.587 2.164 60 - 64 1.383 1.134 2.007 2.436

65 - 69 912 964 1.356 2.180 70 - 74 799 1.018 826 1.458 75 and over 709 1.140 1.296 1.358 Source: National Agency for Statistics unknown 204 233 187 278

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Socio-Economic Analysis of the Municipality Prijepolje

Ratio of Urban and Rural Population Population - 41.188

36,49%

Urban (15.031) Rural (26.157)

63,51% Source: National Agency for Statistics Concerning the structure of the population in the Municipality of Prijepolje compared to living conditions, it can be seen that dominant population in the Municipality Prijepolje is rural that accounts for 63,5% of total number.

Ethnic Breakdown of Population 30.000

25.000 24.770 23.402

20.000 20.200

15.000 13.109

10.000

5.000 3.812 717 423 271 244 204 97 144 119 72 0 0 25 10 0 5 0 6 27 22 20 0 0 10 0

Serbs Croats Others Moslems "Goranci" Yugoslavs Bosnians Albanians Romanies Unknown Montenegrins Macedonians

Regional affiliation

Non-declared and undefined 1991 2002 Source: National Agency for Statistics Census 1991 and 2002 According to the last census of population, participation of Serbian population in the total number is 56,8%. This group represents largest ethnic group in the municipality. On the other hand side the participation of the Muslim-Bosnjak population decreased in the period between two census of the population. Consequently, participation of the latter in the total number of population of the municipality from 43,4% in 1991 dropped to 41,1% in 2002. This is a result of migrations to developed centers in the country and Western Europe .

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Socio-Economic Analysis of the Municipality Prijepolje

Population per Settlement

Reg. Number of Reg. Number of Settlement Settlement number inhabitants number inhabitants 1 Aljinovici 193 41 49 2 Balici 503 42 Kosatica 389 3 Bare 74 43 Koševine 1.129 4 Biskupici 22 44 Kruševo 47 5 Bjelahova 104 45 Kucin 169 6 Brajkovac 87 46 Lucice 176 7 Brvine 192 47 Mataruge 187 8 Brodarevo 2.389 48 Medani 80 9 Bukovik 163 49 Mijani 25 10 Vinicka 487 50 808 11 Vrbovo 101 51 Milakovici 66 12 Gojakovici 225 52 Mileševo 122 13 Gornje Babine 265 53 Milošev Do 126 14 Gornje Goracice 58 54 Miljevici 535 15 Gornji Stranjani 85 55 Mrckovina 33 16 Gostun 74 56 Muškovina 35 17 Gracanica 265 57 341 18 Grobnice 277 58 Orašac 379 19 Divci 353 59 Osoje 567 20 Donje Babine 313 60 Oštra Stijena 140 21 Donje Stranjane 134 61 Potkrš 156 22 Drenova 201 62 Potok 412 23 Dušmanici 286 63 Pravoševo 85 24 Ðurašici 267 64 Pranjci 400 25 Zabrnji Toci 133 65 Prijepolje 16.416 26 Zavinograde 1.734 66 Rasno 427 27 Zalug 1.193 67 Ratajska 2.270 28 Zastup 133 68 Sedobro 325 29 Zvjezd 104 69 185 30 Ivanje 1.254 70 Seljašnica 801 31 Ivezici 173 71 Skokuce 109 32 Izbicanj 46 72 Slatina 139 33 Jabuka 511 73 Sopotnica 151 34 Juncevici 302 74 Taševo 2.283 35 Kamena gora 210 75 Hisardžik 301 36 Karaula 78 76 157 37 Karoševina 199 77 Crkveni Toc i 76 38 Kacevo 65 78 Cadinje 279 39 Kašice 88 79 Cauševici 139 40 Kovacevac 1.867 80 Džurovo 189

Source: Local self-government

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Socio-Economic Analysis of the Municipality Prijepolje

In the Municipality Prijepolje there are 80 settlements, of which the most numerous is city area of Prijepolje with 16.416 inhabitants. Three settlements (Brodarevo, Ratajska and Taševo) has population over 2.000 (without Prijepolje), while four settlements (Zavinograde, Ivanje, Koševine and Kovacevac) have population among 1.000 and 2.000. The smallest settlement is Biskupic with only 22 inhabitants. Total density of population in the Municipality of Prijepolje is 49,8 inhabitant/km2.

Basic contingent of population

Labor active population No. of Under age 60 and Female Work 7 - 14 15–27 male female inhabitants of 7 older total (15-49) capable (%) (15-64) (15-59) 1991 5.305 6.202 10.502 5.485 29.926 15.510 14.416 11.667 64,30 2002 3.219 4.736 8.231 7.432 26.673 14.055 12.618 10.056 64,76 Source: National Agency for Statistics –Municipalities in Serbia In the period between two census the 35.000 29.533 fall of the underage supported popula- 30.000 tion up to the age of 15 is evident (3.552 25.801 inhabitants), while the population over 25.000 60 records growth for over 35%. 20.000 Participation of labor active population 15.000 maintains the same level despite the 11.507 nominal fall in 2002 compared to the 10.000 7.955 7.432 5.485 census in 1991 for 11%, while the 5.000 percentage of female fertile population, 0 labor active is ~ 38%. Under age of 15 15 - 60 60 and older

1991 2002 Population older than 15 - sex and education breakdown

1-3 grade of 4-7grade of Post Without Primary Secondary University primary primary secondary Unknown education education education education school school education

Total 2.460 838 4.212 9.754 13.465 1.138 998 368 Male 563 270 1.730 4.819 7.536 634 578 215 Female 1.897 568 2.482 4.935 5.929 504 420 153 Source: National Agency for statistics – Municipalities in Serbia According the structure of population of 15 and over, 70% are those with primary and secondary education. Indicative is the fact that out of 2.460 inhabitants without qualifications 77% are women that also are majority of those with low education (1-3 grades and 4-7 grades) with over 60%. Without education 3,00% 1,11% 7,40% 1-3 grade of primary school 3,42% 2,52% 12,67% 4-7grade of primary school Primary education Secondary education Post secondary education 40,52% 29,35% University education Unknown

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Socio-Economic Analysis of the Municipality Prijepolje

Population breakdown per activities, census 2002 .

Active population Persons with Supported Employed personal population abroad up to 1 total doing job incomes year 17.686 12.369 7.524 15.752 226 Source: National Agency for Statistics – Municipalities in Serbia Concerning the structure of population of the Municipality Prijepolje according the activity, it should be stressed that active population accounts for 42,9% of the total population in municipality, i.e. 53,2% of population older than 15. Out of that number 69,9% is population with some kind of job. On the other side, supported population participates in the total population of municipality with 38,2%.

0,55% Aktivno stanovništvo 38,24% 42,94% Lica sa licnim prihodom

Izdržavano stanovništvo

Lica na radu-boravku u 18,27% inostranstvu do 1 godine

In the period between two official census in the Municipality of Prijepolje number of population decreased for 11,5%. This fall of the number of inhabitants is outcome of negative birth rate and before all migration of population of the Municipality Prijepolje. Difference between number of those that moved out and moved in is 7.156.

According to last official census of population Municipality Prijepolje had 12.073 households with average number of members 3,41. Compared to last census the fall of households is recorded for 2%.

Data from Vital Register

Born alive Died Birth rate Marriages Year at 1000 at 1000 at 1000 at 1000 number number number number inhabitants inhabitants inhabitants inhabitants 1999 417 8,8 438 9,3 -21 -0,4 229 22 2002 522 12,7 481 11,7 41 1,0 303 45 2005 442 10,9 472 11,7 -30 -0,7 202 34

Source: National Agency for Statistics – Municipalities in Serbia Birth rate in the surveyed period records small oscillations while the mortality rate is stable - 12 per thousand. Number of born alive also records oscillations. The increase of born alive is indicative in the year 2002 that reflects in the positive birth rate of 1 per thousand in the surveyed period.

LOCAL SELF-GOVERNMENT

Structure of local government

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Socio-Economic Analysis of the Municipality Prijepolje

In accordance with the Law on Local Self-Government, organs of local self-government of the Municipality are: Municipal Assembly, President of Municipality and Municipal Council. Municipal administration, as unique service, is in charge of implementation of the law, municipal and other regulations, as well as, for citizen’s rights fulfillment.

Municipal Administration is organized as unique service within internal organizational units: q Department for urbanism, construction, utilities, housing and legal and property issue s (15 employees) q Department for economy, budget and finances (17 employees) q Department for social activities q Department for general administration and common issues (22 employees, this number encompasses also the employed within the Department for social a ctivities) q Office of the President of the Municipality (1) Specialized offices are formed within these departments: q Office for urbanism, construction, utilities – housing and legal- property issues – Office for inspections, q Office for social activities – Section for social care of children, q Office for economy, budget and finances – Section for economy activities, q Office for general administration and common tasks – Section for Assembly activities. In charge of the work of departments is head of department . Head is appointed by the Municipal Assembly. In charge of the organizational units are appointed persons: executive of the department appointed by the Head of the Department of municipal administration and Chief of the Cabinet appointed by the President of the Municipality. Survey of administrative exemptions offered by local administration aimed at business enhancement Old crafts sole trades are exempted from tax payments (blacksmiths, harness-makers, etc), as well as shops and other business units in the villages where there is no organized public transportation. In the first year of business this tax is not paid by manufacturing companies and sole trades, and in the second year they pay only 50% of total tax amount. This is one of the administrative exemptions that local self-government is providing.

E-Administration Information system in the municipality Prijepolje is comprised of one server–computer and 22 client–computers connected into LAN net. Majority of the client–computers (those 17) are Pentium IV processor, while the other are by far weaker. Server–computer uses operative system Windows 2003 Server, while other computers use operative system Windows XP Professional. Municipality also has software “Hermes softlab” for management of municipal documentation. Access to Internet is enabled over Wireless connection, but due to slow flow (128k) this service is accessible to small number of computers. Source: Local self-government

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Socio-Economic Analysis of the Municipality Prijepolje

PRO Functional Review of Municipalities in South West Serbia Prijepolje Municipality Report - draft 2

Richard Allen Zehra Kacapor August 2007

[email protected] [email protected]

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Socio-Economic Analysis of the Municipality Prijepolje

Contents

1 Introduction………………………………………………………………………… 21 1.1Background and Purpose ...... 21 1.2Local Government Structure & Functions ...... 22 1.3Municipality Background ...... 22 2 Municipal Assembly ……………………………………………………………… 22 2.1Overview...... 22 2.2Assembly-appointed staff positions...... 23 2.3Assembly Commissions...... 24 3 Municipal Administration……………………… ……………………………….25 3.1President of the Municipality (Mayor)...... 25 3.2Head of Administration...... 26 3.3Structure, functions and mandate ...... 27 3.4Common Functions...... 27 3.5Department for urbanism, construction, communal and property affairs...... 28 3.6Department for Economic Development, Budget and Finance ...... 29 3.7Department for General Administration (Odeljenje za opštu upravu)...... 30 3.8Department for Civic Affairs ...... 31 3.9Citizens Assistance Centre ...... 32 3.10Cabinet of the Mayor (Kabinet Predsednika Opštine)...... 33 3.11Municipal Implementation Unit...... 33 4 Public Enterprises (Javna Preduzeca)……………………………………………34 4.1Overview of public enterprises...... 34 4.2Child care and pre-school education...... 34 4.3Information...... 35 4.4Tourism...... 35 4.5Public Works ...... 35 4.6SME Agency ...... 36 4.7Culture ...... 36 4.8Communal Services JKP “Lim” ...... 36 4.9Education...... 37 4.10Centre for Social Work...... 38 5 Human Resources – municipal administration…………………………………..39 6 Strategic Management……………………………………………………………..41 7 Financial Management……………………………………………………………..43 7.1Income ...... 43 7.2Budget preparation ...... 43 7.3Budget management...... 43 8 Issues and Constraints…………………………………………………………. …45 9 Needs ………………………………………………………………………………..47 10 Conclusions and Observations……………………………………………………47 Annexe 1 – Functions of Municipal Assembly………………………………………….48 Annexe 2 - Municipal Assembly Boards and Committees……………………………..49 Annexe 3 – Classification of functions……………………………………………………50

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Socio-Economic Analysis of the Municipality Prijepolje

Introduction

Background and Purpose This report is an analysis of the functions and basic capacity of the municipality of Prijepolje. It is the result of a functional review undertaken by the PRO project from April – July 2007. The PRO project (Projekat za Razvoj Opstine) is funded by the European Agency for Reconstruction (EAR) and the Swiss Development Cooperation agency (SDC), and implemented by the United Nations Development Programme (UNDP) in Serbia. The objective of the whole PRO project is “to strengthen local governments in facilitating socio - economic development by effectively using EU and other funding support”. The project is was originally designed as a one and a half year programme of support (mid 2006 to end 2007) for the municipalities of Nova Varoš, Novi Pazar, Priboj, Prijepolje, Sjenica and Tutin. During the course of the functional review research a second phase of the PRO project was announced, increasing the financial support and extending the timeframe to the end of 2009 1. The specific objectives of the functional review are described in the box, below.

The functional review is a systematic exercise in assessing current functions performed by the municipalities, and a basic assessment of organisational capacity to deliver these functions. It will support capacity development by enabling the PRO team and municipality personnel to: ? Understand current functions actually performed by the municipalities; ? Identify any gaps between functions that are legally required and the actual situation ? Identify immed iate opportunities for developing or modifying functions that would contribute to the delivery of better quality services ? Identify functions that may benefit from developing cooperation with other municipalities ? Identify any immediate steps that PRO and/or municipalities could take to address urgent capacity requirements.

Since a second phase of the PRO project was agreed after the terms of reference for the functional review were approved, it was agreed that the functional review would also serve as a baseline study for capacity development of the municipalities during the course of PRO 2. In parallel to the functional review, the PRO project team also commissioned a public opinion survey, and a socio-economic analysis, both of which augment the understanding of the current situation and provide further data for an effective baseline. This document is broadly divided into two parts. The first (sections 0 to 0) provide a detailed description of the functions, funding, responsibilities and accountabilities of the bodies of the municipality. Sections 0 to 0 provide some analysis of the current situation. This analysis is based partly on the discussions, interviews and workshops held with the municipal staff, and partly on an analysis of the data. The functional review project has produced seven reports: one for each municipality in the PRO project that summarises the findings of the research process, and one overall analysis report. The overall analysis report also includes a description of the methodology, plus general findings and conclusions based on the analysis of all six municipalities. The functional review did not set out to make recommendations to local government. Its purpose was simply to provide a solid base of information on the current state of affairs. The overall summary report does offer recommendations to the PRO project in terms of a way

1 In this report “PRO 6” refers to Nova Varoš, Novi Pazar, Priboj, Prijepolje, Sjenica and Tutin. “PRO 8” refers to the same municipalities plus and Raška

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Socio-Economic Analysis of the Municipality Prijepolje

forward for its capacity building work with the municipalities. Where it seemed appropriate in the individual municipality reports there are comments and suggestions for the cons ideration of municipalities and others. We have also sought to include as far as possible the suggestions for change and support that emerged from the research process as identified by municipal staff themselves. We hope that the municipalities will find this information useful in two ways. First, in that it offers a comprehensive summary of the current situation which can be used to disseminate and explain the work of the municipality. Second, in that it will provide a solid base of understanding for t he further design and implementation of the PRO project, which should, therefore, be made more responsive to the municipalities’ needs.

Local Government Structure & Functions The functions of local government are divided into two groups: primary functions and delegated functions. Primary functions are those for which local government is responsible for initiating, funding and executing. Delegated functions are functions that are the responsibility of central government, but which have been delegated to lo cal government for local delivery, and for which central government provides funding. The responsibility for the functions of local government is given to the local government as a whole, single entity. One of the purposes of this study was to examine how these responsibilities are shared between the various bodies of the local government, and the organisations established by it. To a large extent the way in which responsibilities are divided, and the way in which bodies or organisations are accountable d etermines the effectiveness of delivery of public functions.

Municipality Background Prijepolje lays in the south-west of Serbia, close to borders with Montenegro and . The last census showed that Prijepolje has 46,525 citizens, 53,2% , 43,4% , 1,6% Montenegrins and 1,8% others. Prijepolje was not a big industrial centre, and today is one of the communities with a developing trade and small and medium enterprises. Prijepolje has good predispositions for development of tourism as its natural and historical resources create a very attractive offer to potential visitors. A detailed analysis of the municipality can be found in the strategic plan. Prijepolje’s population is facing a serious decline in numbers. By 2005, populat ion had declined by 3.5% since 1999, a greater decline than the national average of 1.3%. Of the PRO 6 municipalities, three face a population decline, one remains almost stable, while two (Novi Pazar and Tutin) are increasing rapidly. Assuming that this population decline is related to falling birth rates and economic migration out of the municipality, it puts pressure on the administration in two significant ways. First, there will be fewer economically active people paying taxes, and second, there will be more older people dependent on social welfare and health services. The municipality must, therefore, face the challenge of reversing its population decline through economic development —a challenge which it recognises and is beginning to deal with.

Municipal Assembly

Overview The Prijepolje Municipal structure follows the standard model of the local government structure in Serbia. The Municipal legislative power is represented through the Municipal Assembly that has 61 members. Prijepolje has the highest number of assembly members of the eight PRO municipalities per thousand population, and at 1.51 members per thousand, is significantly higher than the 0.89 members per

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Socio-Economic Analysis of the Municipality Prijepolje

thousand average for Serbia. Twelve of the 61 members are women. At 19.7% this is just below the average representation of women in local government for the whole of Serbia (21.4%). The political composition of the assembly is as follows: ? President of Assembly from DSS – Dragan Svicevic ? Parties in power (Ruling coalition) – SDP 12, Democratic Party of Serbia (DSS) 7, Democratic Party 6, Nova Serbia (NS) 4, + 6 councillors from GSS (3) and SD (3) ? Opposition: Serbian Radical Party (SRS) 11, List for Sandžak (11), Socialist Party (SPS) 4 The functions of the municipal assembly as described in the law on local government are listed in Annex 1. The assembly in Prijepolje was described by most interviewees as having a cooperative and helpful approach to the work of the municipal administration, despite political differences. The work of the assembly is partially supported by one person in the administration with responsibility for analysis (poslovi analitike i sintetike Opštinske uprave i skupštinskih poslova). The job largely relates to providing financial information to the assembly (and t he administration), and does not address policy issues or include research functions. The assembly is ultimately responsible for overseeing the work of the administration and public organisations (javne preduzece), and is accountable to the electorate for the provision of local public services (alongside the elected mayor, see below). The mechanisms of reporting and accountability are therefore important determinants of the performance of public services in the municipalities.

Assembly-appointed staff positions The assembly appoints key staff positions in the municipality, and through that mechanism maintains the accountability of the public institutions. These positions include the head of municipal administration and the heads of all municipal establish ments such as public enterprises (javne preduzece). All municipal appointed positions usually report to the assembly at least once per year.

Secretary of the Assembly According to the law, the Secretary of the Assembly is proposed by the President of the Assembly and appointed by the Assembly itself. In Prijepolje, this function is carried out by an independent expert advisor (samostalni strucni saradnik) located in the Department for General Administration, section for assembly affairs (see section 0). According to the law, the person in the position of Secretary to the Assembly should have a law qualification; the person in the equivalent post for Prijepolje has a political science qualification. Prijepolje also has a Secretary of the Municipal Council, who is a qualified lawyer. This is not a position foreseen by the law on local self government.

Public Attorney The Javni pravobranilac, or public attorney, is tasked with defending and representing the Municipality at courts with regards to complaints and charges submitted by the Municipality or against it. Unusually for this region, the public attorney reports directly to the Municipal Assembly; in other municipalities he or she u sually reports to the mayor.

Ombudsman (‘Civil Defender’) The municipality of Prijepolje does not at present have a person in the position of Ombudsman. This position is optional under the law on local self government, and few municipalities in Serbia have appointed such a person.

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Socio-Economic Analysis of the Municipality Prijepolje

Assembly Commissions The municipal assembly establishes boards and committees to advise on specific areas of work. Some of these are standing, and some meet only as needed. The list of boards and committees is given in Annex 2. Participants in the commissions are usually nominated by the assembly on the basis of expertise and political representation. Because of time constraints, the functional review process was not able to examine the composition and work of any of the commissions. Many of the expert staff of the municipal administration take part in the meetings of commissions, and provide information and advice from their particular expertise. Role of commissions, participation of administration staff

[insert list of commissions here]

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Socio-Economic Analysis of the Municipality Prijepolje

Municipal Administration The executive branch of a municipality is headed by a directly elected President of the Municipality (often translated into English as ‘Mayor’), and supported by a municipal council, appointed by the Assembly. The Mayor and the Council are, in effect, chief executive and managing board of the municipal administration. The municipal administration takes responsibility for delivering most of the functions delegated to local government by national government, and delivers some of the primary functions of local government. Other primary functions are allocated to public enterprises (such as library services, public works, sports and culture). The mayor does not have direct supervisory control over the work of the public enterprises, or any other organisation established by the municipal assembly. The mayor does, however, have responsibility to establish a local inspection and audit service (law on local self government 2002, article 103). The purpose of this inspection a nd audit service is not explicit in the Law, but the context infers that it is for the purposes of ensuring proper expenditure of the budget by all budget users.

President of the Municipality (Mayor) The Municipal administration is led by the directly-elected Mayor, Nedžad Turkovic (b. 1956) of the Sandžak Democratic Party (SDP). He has the support of the ruling coalition in the assembly (see section 0), and so is able to manage the administration in a stable and progressive way. According to the law, the responsibilities of the The primary duties of the president of mayor are as listed in the box, right. municipality are: 1. represent and act on behalf of the In discussions, other functions of the mayor emerge. municipality; They include: 2. directly implement and ensure the ? Ensuring freedom of access to information implementation of the decisions and other according to the law acts of the municipal assembly; ? Providing legal assistance to citizens 3. propose decisions and other acts to be adopted by the assembly, as well as the ? Cooperation with international procedures for resolution of issues within organisations municipal assembly jurisdiction; ? Public relations 4. ensure the implementation of delegated ? Cooperation with republic-level institutions responsibilities from the scope of powers and duties of the Republic and/or forms of ? Cooperation with the ‘people’s office’ Territorial Autonomy; (narodna kancelarija) of the President of the 5. set guidelines for a nd co-ordinate the Republic. activities of the municipal administration; The mayor, therefore, has something of a dual 6. propose appointment and dismissal of function. Formally he is the chief executive of the the head of municipal administration department and/or the heads of municipal municipal assembly, responsible for impementing its administration departments in charge of decisions; he is also the local executive of the specific affairs; national government, responsible for implementation 7. order executio n of the budget; of delegated functions. On top of this, he is an 8. pass individual acts according to the elected politician, and so has to perform functions in authority vested in him/her by law, the relation to the elected nature of his position: building statute or decision of the assembly; consensus on policy decisions, promoting the image 9. perform other activities under the statute and achievements of the municipality, and attracting and other municipal acts. investment and interest in the municipality’s Law on local self government 2002 art icle 41 economy.

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Socio-Economic Analysis of the Municipality Prijepolje

Municipal Council (Opštinsko Vece) Municipal Council has 7 members in Prijepolje (maximum allowed is 11). According to the law, the Council is a body that coordinates the functions of president of the municipality and the municipal assembly. It also has a controlling/supervising function over the work of the municipal administration. The Council also serves as an advisory body for the Mayor, and prepares the final proposal of the budget for approval by the assembly. The member s of the council are normally nominated by the Mayor, and nominations are endorsed by the Assembly. The municipal council has the power to “rule on the conflict of competencies between the municipal administration and various enterprises, organisations and institutions”2 making it an essential component in demarcating functions between public enterprises and the municipal administration.

Chief Architect At present the Lead Urban planner/Chief Architect is systematized under the Department for Urbanism (see below). There is a plan, however, to create this position outside of any Department and reporting directly to the Mayor and the Assembly, as envisaged by the law on local government.

Municipal Manager The law on local self-government envisages a ‘municipal manager’ who would be responsible for among other things, supporting economic development and encouraging capital investment. A better description of the position in English would be ‘head of economic development’ so as to avoid any conflict of role wit h the head of administration3. There is at present no municipal manager employed in Prijepolje.

Head of Administration The head of administration is appointed, according to law, by the municipal assembly. According to the systematisation document 4: «Nacelnika Opštinske uprave postavlja Skupština opštine. Nacelnik Opštinske uprave predstavlja Upravu, organizuje i obezbeduje zakonito i efikasno obavljanje poslova, odlucuje o pravima, dužnostima i odgovornostima zaposlenih i stara se o obezbedivanju uslova rada. Za svoj rad i rad Opštinske uprave nacelnik odgovara Skupštini opštine i predsedniku Opštine.» “The head of the municipal administration is appointed by the municipal assembly. The head of the municipal administration represents the administratio n, organises and ensures lawful execution of work, decides about rules, duties and responsibilities of employees and ensures safe conditions of work. The Head is responsible for her work and that of the municipal administration to the municipal assembly a nd the president of the municipality (mayor).” At present, the head of administration is a person with a long experience in the position, and has expertise in running the office. She describes a wide portfolio that ranges from work on internal operations to cooperation with, and monitoring of, the public enterprises. She is also involved in the preparation of the assembly agenda, supervision of the heads of department, and cooperation wth the Republic level administration for public revenue.

2 Law on local self-government, 2002; article 60 3 The term ‘menadžer’ in Serbian has strong private sector connotations, and does not translate literally to the English ‘manager’; ‘entrepreneur’ may be a better translation. 4 5 May 2006

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Socio-Economic Analysis of the Municipality Prijepolje

The position of the head of administration is therefore primarily an administrative one, concerned with the smooth functioning of the administration. The descriptions of her work make no reference to achieving change objectives or any measures of performance such as citizen satisfaction or economic development.

Structure, functions and mandate The municipal administration has four departments, one more than most others in the PRO 6 group. Responsibility for civic affairs has its own department; in other municipalit ies this is often combined in one department with responsibility for finance and budget functions. Actual expenditure on municipal administration 2006 per inhabitant (din) The departments are: 2,500 ? Urbanism, construction, 193m 59m 61m residential and property affairs 2,000 35m 73m ? Economic Development, 39m budget and finance 1,500 51m

? Civic affairs 1,000 ? General administration and community affairs 500

The total expenditure of the - municipal administration in 2006 was Novi Priboj Tutin Nova PRO 6 Sjenica Prijepolje 51,339,815 din, (around €658,000). Pazar Varoš average This is equivalent to 1,270 Dinars per inhabitant, the lowest of all six of the PRO municipalities, suggesting that the Prijepolje administration is the most efficient of the PRO 6 (see chart above). This is supported by the staffing numbers: there are 74 staff, or 1.8 staff members per 1,000 population (highest 3.7, PRO 6 average 2.7), again, the lowest ratio of all the PRO 6 municipalities. The mandate of the municipal administration is defined in the Law on Local Self Government The municipal administration shall: (see box, right). 1. prepare drafts of regulations and other acts for adoption by the municipal assembly and Common Functions the president of municipality; 2. implement decisions and other acts Formally, the functions of the municipality adopted by the municipal assembly and the administration are divided according to president of munic ipality; department. Exploring the reality, there are a 3. resolve in first -instance administrative number of functions not formally identified that all proceedings issues related to the rights and departments carry out. These include simply duties of residents, enterprises, institutions, receiving enquiries from members of the public, and other organisations within the municipality’s primary jurisdiction; which can occupy a fair amount of time; dealing 4. perform administrative supervision over with enquiries and requests from members of the implementation of regulations and other Assembly; participating in, and providing technical general acts of the municipal assembly; support to, comissions and boards of the 5. enforce laws and other regulations assembly; and monitoring the implementation of delegated to the municipality; Assembly decisions. 6. perform expert and other activities Reporting and planning also form a proportion of determined by the municipal assembly and the president of munic ipality. the workload, with considerably more reporting Law on Local Self Government, 2002, article 48 than planning. Reporting requirements can be considerable, especially financial reporting.

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Socio-Economic Analysis of the Municipality Prijepolje

Skupština Opštine Predsednik Opštinske Opštine Vijeæe Kabinet predsednika Javni Opštine Podpredsednik pravobranilac Opštine

Naèelnica opštinske uprave (74)

Odeljenje za urbanizam, Odeljenje za Odeljenje za op štu Odeljenje za graðevinarstvo, komunalno privredu, bud žet i upravu i zajedni èke društvene stambene i imovinsko finansije (14) poslove (22) delatnosti (15) pravne poslove (12)

Odsek za Odsek za Mesne Odsek za Odsek za Arhitekta Inpsekcijske privredne kancelarije skupštinske društvenu poslove poslove i 3 poslove brigu o deci poljoprivredu

Opštinska implementacija Opštinski jedinica razvojni fond

Department for urbanism, construction, communal and property affairs The Department for Urbanism, construction, communal and property issues is primarily responsible for the quality and effectiveness of the built environment. In practice this means working on the urban plans, identifying land for construction, ensuring standards of construction, and approving changes of building and land use. It also includes and p rovision of communal services, maintenance of residential buildings, environmental protection, and responsibility for local roads. The department currently has 12 staff (15 in the systematisation), and includes a sub department dedicated to inspection. In terms of the DAI Europe categorisation of public sector functions, this department performs primarily regulation and standard setting functions related to issuing of permits and inspection of standards. A relatively small, but hugely important, component of its work is its policy function in relation to the preparation of the urban and spatial plan. It is the department’s role to prepare the plan, but the policy decisions are made by the assembly, which approves the spatial plans, and central government, which verifies them. The latest urban plan was prepared in Most of the remainder of the department’s work is categorised as public service delivery functions; this work is mainly in relation to recording ownership of property, preparation of leases, and expropriation of property for development purposes. Work related to property registration is a deconcentrated function of central government, so the local government has to work closely with the Prijepolje office of the Property Registration Service (Sluz ba za katastar nepokretnosti), which is directly controlled by the Republic Geodetic Author ity (Republicki Geodetski Zavod).

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Socio-Economic Analysis of the Municipality Prijepolje

The inspection functions are delegated functions from central government, and are supervised by the deconcentrated government offices in Užice. The department also supports the service delivery work of the public enterpr ises JKP Lim and the directorate for public works (Direkcija za izgradnja).

Functions of department of urbanism, construction, communal and property affairs

Policy functions Coordination Functions ? preparation and publication of acts about ? coordination of strategy implementation urban conditions ? work in planning com missions – review and Public Service Delivery Functions approval of urban projects ? demands towards JPs for provision of services and compliance with con tracts Regulation/Standard Setting Functions ? cooperation with JKP, JP and Directorate for ? preparation of licences for infrastructure Construction (council works department) projects ? assistance with preparation of leases ? leasing of construction land ? recording property ? permission for establishing business premises ? gathering documentation – certificates from ? ensuring compliance with project management of income, cadastre, employment documentation office and PIO ? processing demands for starting proceedings ? expropriation against offenders ? delivery/provision of heat ? water supplies (conditions, compliance, ? work with property rights licences,) ? water supplies (conditions, compliance, ? permissions for construction licences,) ? legalisation of buildings ? construction inspection Support to government functions ? traffic inspection ? legal assistance to the Mesne Zajednice ? environmental inspection ? communal inspe ction ? educational inspection ? inspection on building sites ? construction/planning control

Department for Economic Development, Budget and Finance The Department for Economic Development, Budget and Finance carries out work in the following four areas: ? Financial management and budgeting ? Agricultural development ? Project management (for donor and development funds) ? Support to the Mesne Zajenice The PRO municipal implementation unit also falls within this department, and there is a sub - department for economic and agricultural development. The department has 17 employees, of whom two are in the economic and agricultural development sub-department. The financial management responsibilities are fairly standard, and include preparation of budget, making payments to budget users, regular financial reporting to the mayor and assembly and national government, and preparation of final financial reports. The municipality recognized the need to put more effort in developing infrastructural and development projects, so responsibility was given to this department. In 2006 Prijepolje was one of the leading municipalities in Serbia with regard to winning grants and infrastructu re projects from the Government and international donors, obtaining 10 million Dinars

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Socio-Economic Analysis of the Municipality Prijepolje

(€128,200) from such project sources. It is budgeting for an expected 20 million Dinars in project revenue for 2007. The municipality has established a development fund which is administered by this department. In 2006, the fund spent 47m dinars (€600,000). This included the UNDP and Mercy Corps projects, but also included funds spent on infrastructure projects in the mesne zajednice, and local roads projects. The department provides support (through the sub-department for economic and agricultural development) for the mesne zajednice. This support includes preparation of investment plans, and supervision of water, sewerage and other infrastructure in these communities. The functions of this department are all primary functions of the municipality. They are also mainly support to government functions, according to the DAI Europe categorisation, with the exception of the agricultural extension services included in the su b-department for economic and agricultural development.

Department for Economic Development, Budget and Finance – main functions Support to Government Functions Service Delivery Functions ? Preparation and control of budget ? project implementation (NIP and donor ? Payments and cashier functions projects) ? Book-keeping ? Financial repor ting – to administration, assembly and government ? Preparation of final accounts

? preparation of investment plans for MZs ? supervision of maintenance and construction of infrastructure (water, sewerage etc) in MZs

? preparation of projects for NIP and international donors/development projects ? financial planning for Development Fund ? support to Development Fund steering committee

Department for Economic Development, Budget and Finance – Agricultural Functions Service Delivery Functions Regulation/Standard Setting Functions ? Organising and attending agricultural fairs and ? registration of smallholders/farmers exhibitions ? approving change of use of agricultural land ? Production and distribution of seedlings and ? issuing production licences/certificates other agricultural inputs ? land valuations ? Anti-hail protection ? Informing smallholders/farmers on Support to Government Functions government regulat ions ? collection of data on agricultural enterprises ? Tracking outbreaks of disease ? applying for Min of Ag project funds ? Seminars & advisory services for fruit, vegetable and livestock farmers ? Animal welfare protection

Department for General Administration (Odeljenje za opštu upravu) The Department has three main responsibilities; support to the Municipal Assembly and Municipal Council, administrative support to the municipal administration, and management of the central registry (maticna knjiga). The department has a current staffing level of 22 people, of whom three are in the mesne kancelarije, the community offices serving more remote settlements. Not all staff meet the educational and experience requirements listed in the systematisation document.

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Socio-Economic Analysis of the Municipality Prijepolje

Support to the assembly and council is mainly ad ministrative, not policy related. It involves taking minutes, filing documents and publishing decisions in the municipal official gazette (Službeni glasnik). Administrative support includes sending and receiving mail, a typing pool (5 people), IT administrator, and photocopying assistant. The department has responsibility for human resources, in the form of a person responsible for labour relations (poslovi radnih odnosa), who is mainly concerned with the legal, administrative and contractual aspects of employment. The registry office functions of the department were reorganised in 2006 with the support of Mercy Corps in 2006 into the Citizen Assistance Centre (CAC, or Uslužni Centar), combining some of the functions from the Department for Civic Affairs into a single office. There are six registrars (maticari), plus a position for maintaining the electoral roll, and a CAC receptionist. Two of the registrars are based in mesne kancelarije (Brodarevo and Aljinovic). The department also has responsibility for assessing eligibility and making payments to civilian and military war invalids, and a further delegated responsibility from the Commissariat for Refugees to register refugees and Internally Displaced Persons (IDPs). The municipality’s community offices, the mesne kancelarije, provide similar registry services to the CAC, each one maintaining its own register of births, deaths and marriages ( maticna knjiga). With three offices, Prijepolje has the lowest number of mesne kancelarije of the PRO 6 municipalities. Each one serves an average of 13,000 people, compared to the PRO 6 average of just over 5,000. The department’s support functions are mainly primary functions of local government, and its service delivery functions are delegated functions of central government.

Department for General Administration Service Delivery Functions Support to Government Functions ? Benefits for war invalids ? Administrative support to the municipal ? Registration of births, deaths and marriages assembly ? Maintaining em ployment records (radne ? Publication of the official gazette (službeni knjižice) glasnik) ? Maintaining electoral roll ? Labour relations ? Notary services ? Internal administration (typing, photocopying, ? Refugee/IDP registration IT support) ? Responding to public enquiries about the work ? Reception office/administration for President of the Municipal Council of Assembly and Mayor ? Health protection ? Verification of citizenship ? Administration of student loans

Department for Civic Affairs The main responsibilities of the Department for Civic Affairs are, like the department for general adminstration, mainly concerned with internal support functions such as building maintenance and switchboard operation, and service delivery functions relating to general social welfare. The Head of the department is currently the same person as the Head of the Department for General Administration, and since many of the service delivery functions of both depa rtments have been moved to the CAC, there is some naturally occuring overlap and blurring of boundaries between the two departments. The actual situation is therefore somewhat different to that described in the systematisation.

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Socio-Economic Analysis of the Municipality Prijepolje

The department has 15 staff, including a small sub-department for child protection (odsek za društvenu brigu o deci). As with the Department for General Administration, the service delivery functions of the Department for Civic Affairs are mainly delegated functions from the central government (in this case, mainly from the Ministry for Labour and Social Policy and Ministry of Education).

Department for Civic Affairs Service Delivery Functions Support to Government Functions ? Registration of entries into the central registry ? document regist ry (pisarnica) (citizenship, births, deaths and marri ages) ? heating supply and maintenance ? Issuing certificates of entries from the central ? drivers and car pool registry ? office cleaning ? Support and supervision of schools, schools ? switchboard operation inspection ? porters and guards ? Maintenance of the electoral roll ? Proof/notarisation of documents ? Assess eligibility for family, parental and child allowances; payments according to entitlements ? Cooperation with young people and youth organisations ? Benefits and protection of civilian and military WWII veterans/invalids ? Cultural, sport, health, and social protection affairs

The central registry (maticna knjiga) functions are delegated functions from central government, and include the following: ? Registration of births, deaths and marriages ? Issuing copies of birth, death and marriage certificates (valid for 6 months) ? Maintenance of electoral roll ? Issuing and validating employment records for pension and other entitlements (radne knjižice) Work with schools is a delegated function from the Ministry of Education, and involves supervision of school records, review of school plans and budgets, and fund ing (from local sources) the maintenance of school buildings. Teachers’ salaries are paid by central government.

Citizens Assistance Centre The CAC, created with the support of Mercy Corps in 2006, re -located a number of functions to a central reception office serving citizens in person. The following are the functions that are combined into the CAC: ? IT system adminsitrator ? Receptionist ? Document registry ? Central registry (births, deaths, marriages) ? Notary ? Urbanism and residents’ affairs ? Private enterprise (company registration) ? Enterprise/economy Formally, the people performing these functions still report to the department heads according to the systematisation. Informally, it is hard to see that this arrangement will be sustainable in the long term, since they are dislocated from their colleagues in the same

32

Socio-Economic Analysis of the Municipality Prijepolje

department. Most likely an informal arrangement will evolve in which colleagues in the CAC will report to one head of department for daily issues, and to their formal line manager for technical issues.

Cabinet of the Mayor (Kabinet Predsednika Opštine) The Mayor’s cabinet has three staff in the systematisation: a head of cabinet, a media relations officer, and an officer for the ‘narodna kancelarija’ or people’s office. At present, there is only one person employed in the cabinet, the “officer for the people’s office” ( poslove Narodne kancelarije). This is not a common position, so it is worth giving a little more information about his work. He has responsibilities relating to providing legal assistance to citizens, which takes up the majority of his time (around 40%). He is also involved in working with international organisations and NGOs, and is responsible for ensuring freedom of access to information. Other activities include public relations duties, and connecting with the national level people’s office, which sits with the President of the Republic.

Municipal Implementation Unit The Municipal Implementation Unit is not a formally established unit included in the systematisation document. It was established to support the implementation of the PRO project, and staff included in the unit are seconded from their normal positions. There are nominally four staff in the MIU: the head of the department of Economic Development, budget and finance and three others.

In practice, the work of the MIU gives the team members two jobs, their normal position plus responsibilities as part of the MIU. This is not formally systematised, nor are they rewarded on the basis of doing ‘extra’ work. The consequ ence is that less effort is put into the work of the MIU than required. The MIU is foreseen in the thinking of some donors as a precursor to a unit in the municipality that is able to identify projects, apply for funding (international donor and domestic government) and manage the funding and project implementation. In the coming years, as EU money becomes more directly available to governmetns at national and local levels through the IPA scheme, such a unit will be essential for obtaining and managing the potentially large sums that will be available. It is not clear, however, whether such a unit should be located at the level of the individual municipality, or at a more regional level. Nevertheless, it is important that all municipalities are able to de velop the skills needed to identify and plan projects for national and international funding. It is necessary, therefore, that the functions of the MIU (identifying projects, developing proposals, applying for funding, and managing project implementation) are institutionalised in support of the municipal administration. Further work is needed to identify how.

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Socio-Economic Analysis of the Municipality Prijepolje

Public Enterprises (Javna Preduzeca)

Overview of public enterprises Prijepolje has 10 public enterprises that were established by the Municipality. These enterprises carry out many of the primary functions of municipal government. All public enterprises have a director and a managing board. The director and board are appointed by the municipal assembly, and so are often seen as political appointmen ts. On the basis of limited information, it appears that in Prijepolje the directors of these organisations are suitably qualified, and are not appointed solely on their political connections. The director of the main public utility, JP “Lim”, was not ch anged after the last election. The public enterprises were not detailed subjects of study by this review, and so only limited information is available for this report. Primary and secondary schools and the Centre for Social Work are national level instit utions, although they are partially funded by the Municipality. They therefore do not have the same reporting and oversight arrangements as the public enterprises. Centres for Social Work are expected to become municipal institutions in the near future, as anticipated in the 2002 law on local government. However, the necessary social welfare legislation has not been put into place to define roles and responsibilities. This section reviews the institutions that receive the most funding from the municipal budget. In addition to the institutions discussed below, small amounts of funding are given to social organisations and NGOs.

Child care and pre-school education The kindergarten “Misa Cvijovic” offers pre-school education for children from 1 year of age to 5 years of age. It also provides newly-compulsory pre-school preparatory educational programme for children of age 5 and 6. It has a present staff of 76 employees (although 68 are foreseen in the systematisation). In school year 2005-2006 there were 592 children enrolled in the kindergarten5, although there are 3,325 children aged between 0 and 6 in the municipality, of whom an estimated 950 are aged five and six – the age for which pre-school education is now compulsory. The functional review did not examine the extent to which private pre -school education is available in the municipality. Funding is provided by the municipal adminstration through the municipality budget. The expenditure on child protection in 2006 was 22,3 million dinars (or €275,000). This is equivalent to 6,965 dinars per child age 0-6 in the municipality (or nearly 38,000 dinars per child actually enrolled). The work of the kindergarten is overseen by a managing board (Upravni odbor). It provides an annual plan, pre-school programme, financial report and annual activity report to the Assembly once a year. The Kindergarten works closely with, and sends reports to, the education inspector (Prosvetni inspektor) who is located in the municipal administration, Department for Civic Affairs.

5 Municipalities of Serbia 2006

34

Socio-Economic Analysis of the Municipality Prijepolje

Information The Public Information Enterprise “Polimlje” (JIP Polimlje) has 14 staff, and provides a local newspaper and radio station. In Information spending 2006 it had a budget of 6.4 million dinars (€82,000), lower than in PRO 6 region ( Dinars average (per inhabitant) for the PRO 6 region. per inhabitant ) This enterprise is directly accountable to its Managing Board Highest: 398 and the Municipal Assembly. The director is appointed by the Average: 190 Assembly. Lowest: 0 Prijepolje: 158 Tourism Of the PRO 6 municipalities, only three municipalities spent money on tourism promotion in 2006, of which P rijepolje was one. It spent a total of 2.2 million dinars (€28,000), an equivalent of 54 dinars per person

(highest: 151 Din per person), and Tourism - overnight stays 2005 has a present staff of two people. 81,310 40,000 The municipality founded the 35,000 tourist organisation in 2005 to 30,000 promote awareness of tourism in 25,000 and around Prijepolje. As with 20,000 other JPs, it reports to a 15,000 10,000 managing board, and the 5,000

Municipal Assembly, and its - director is appointed by the Tutin Raška Priboj Ivanjica Sjenica Assembly. It also cooperates with Prijepolje Nova Varoš Novi Pazar and provides reports for the PRO 8 average PRO 6 average National Tourism Organization of Serbia average/total Serbia (Turisticka Organizacija Srbije). According to the official data on tourism, which records overnight stays regardless of purpose (e.g. business or pleasure), Prijepolje had one of the lowest rates of overnight stays in the PRO region (see chart)6.

Public Works The Directorate for Public Works (JP “Direkcija za izgradnju”) is responsible for the following functions: ? Construction and maintenance of local roads ? preparing public land for construction (including connecting utilities, etc) ? maintenance of public spaces ? traffic signs and signals ? Preparation of project documents and drawings of all buildings and infrastructure In 2006, the municipality of Prijepolje spent 54 million dinars on public works (€694,000, or 1,300 dinars per person). Of this, some 20 million dinars came from international organisations (Mercy Corps and UNDP/EAR). Comparisons with other municipalities in 2006 are difficult, because new budget codes are not consistently used, and different municipalities' directorates for public works incorporate different functions.

6 note that the municipality of Raška includes the ski resort of Kopaonik, and so has a high number of overnight stays compared to the other municipalities.

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Socio-Economic Analysis of the Municipality Prijepolje

The Directorate works closely with the Department for Urbanism and Construction on a range of issues linked to urban planning and cons truction. The Directorate reports to the Municipal Assembly and the Management Board.

SME Agency Prijepolje is the only municipality of the PRO 6 to have an agency for small and medium - sized enterprises (SMEs). This has been established recently as a pu blic-private venture involving the regional development agency, private companies and the municipality. It aims to provide advisory services to SMEs and to assist in registration of business start -ups in the community. As a recently founded organisation, actual expenditure figures for 2006 are not available. The municipal budget contribution projected for 2007 is modest, at 700,000 dina rs (nearly €9,000), but it is supplemented by funding from the other partners, and it is hoped that funding will increase in the coming years. Its key functions are: ? promotion of partnership between the public and private sectors ? development of business plans ? promotion of entrepreneurship ? meetings and education for entrepreneurs.

Culture Prijepolje has three municipal-funded cultural institutions: the library, museum and cultural centre (dom kultura). In all, Prijepolje is one of the higher-spending municipalities when it comes to culture, spending roughl y Per capita expenditure on culture (820), din 2006 26 million dinars in total (€337,000) in 800 (22.4m) 2006. The biggest beneficiary is the (26.3m) 700 cultural centre, which received 12 million 600 dinars, followed by the library with 8.5 (19.0m) (13.5m) 500 (38.4m) million, and the museum with 5.5 million (7.5m) dinars. 400 300 (6.4m) The Cultural Centre aims to “develop the 200 culture and satisfy the cultural needs of the 100 citizens of Prijepolje”. It organises films, - exhibitions, theatre, music and educational Priboj Prijepolje PRO 6 Sjenica Novi Nova Tutin average Pazar Varoš activities, and employs 23 staff at present. (Total expenditure 2006 in brackets) The Library „Vuk Karadžic“ employs 10 people, and has a main centre in Prijepolje town offering lending services for adults and children. This is supplemented with a local branch «Stevan Tomovic», and an 'info bus' which tours the municipality offering library services to the smaller towns and villages. The museum in Prijepolje is highly respected, and collects and keeps archeological and historical artefacts from the region and organises exhibitions and research studies. Municipal officials from both Prijepolje and Priboj suggested that the Museum could be established as a regional museum, charged with recording archeological sites and artefacts from the whole region.

Communal Services JKP “Lim” The Public Communal Enterprise „Lim“ is in charge of providing utility services in Prijepolje, including: ? Production and distribution of water ? Sewerage ? Solid waste management

36

Socio-Economic Analysis of the Municipality Prijepolje

? Street cleaning (communal hygiene). Communal services in Serbia are funded directly by fees usually collected by the communal enterprise itself. Fees are established by a committee of the Municipal Assembly, within guidelines set by central government. Additional funds as subsidies and subventions for capital investment can be provided by the municipal government. In 2006, Prijepolje gave 18 million Dinars to JKP Lim (€23,000). It currently has 134 staff, divided into three units: 43 for water supplies, 49 in the unit for sewerage, solid waste management and street cleaning, and 41 providing support services. As all other enterprises, the director of JKP „Lim“ is appointed by the Municipal Assembly, and is supervised by its Managing Board. The enterprise provides the Municipal Assembly with a plan and a report once a year, and reports to the municipal council on the state of municipal cleanliness also annually. The communal enterprise would like to see a change in the VAT (PDV) rules, so that they pay VAT only on income actually received, and not on fees invoiced, since not all users pay their fees.

Education Primary education is the second largest item of Expenditure on primary education per inhabitant (din) 2006 municipal expenditure in 900

Prijepolje, after the municipal 800 administration itself; in 2006, 700 expenditure was around 33m 600 dinars (€426,000). Primary 500 and secondary education are delegated functions from 400 central government, so in 300 theory all costs are covered 200 by central government. The 100 role of municipalities is - Prijepolje Priboj Nova Varoš Novi Pazar PRO 6 Tutin Sjenica restricted to one of providing average and maintaining the school buildings, administering school enrollment and educational inspection. Setting the curriculum and employing teachers is a central government responsibility. Since education is an important factor influencing the development of a Primary education expenditure per pupil (Din) 2006 municipality, it is worth 9,000 examining the figures. 8,000 According to the total number of inhabitants, primary 7,000 education in Prijepolje is the 6,000 best funded of the PRO 6 5,000 municipalities (see chart 4,000 below). 3,000 A slightly different calculation, 2,000 expenditure according to the 1,000 actual numbers enrolled in - Nova Priboj Prijepolje PRO 6 Novi Sjenica Tutin primary schools, shows Varoš average Pazar Prijepolje in third place after Nova Varoš and Priboj. Tutin

37

Socio-Economic Analysis of the Municipality Prijepolje

and Sjenica lag far behind; they are able to spend less than half as m uch per pupil as Prijepolje. Secondary education expenditure is rather lower. Total expenditure on secondary education in Prijepolje was 15m dinars (€196,000). The variation between municipalities in secondary education is even higher than for primary education. Prijepolje is one of the top spending municipalities, spending just over 9,000 dinars per pupil. This is nearly four times more than the lowest spending municipality. Total enrolment in Prijepolje is the second highest in of the PRO 6 municipalities (see chart below), in line with its population.

Centre for Social Work Municipalities have a relatively minor role in the provision of social welfare services and benefits, but this is likely to increase as reforms currently under way begin to be implemented fully at School enrolment 2004-2005 municipal level. At present, it is the 18,000 Centre for Social Work that has the 16,000 main role, and this is a local office of 14,000 secondary school the republic-level Ministry of Labour 12,000 primary school and Social Policy. 10,000 The municipality budget gave the 8,000 Centre for Social Work around 2.8m 6,000 dinars in 2006 (€36,000), roughly 4,000 the same amount as it gave to the 2,000 Red Cross branch in Prijepolje. -

More than half of this (1.7m din) was Tutin Priboj Raška Sjenica Ivanjica Prijepolje spent on allowances and Novi Pazar Nova Varoš supplements for beneficiaries, and the rest was spent on salaries and other expenses.

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Socio-Economic Analysis of the Municipality Prijepolje

Human Resources – municipal administration The municipal administration in Prijepolje has a current staff of 74. The diagram below lists the positions in each Prijepolje education levels department and sub-department. Since the last election the University (VSS) 22 administration reduced its staff by 15% through a programme College (VŠS) 9 of voluntary redundancy. The staffing levels have since Secondary School (SSS) 33 increased, but the qualification levels have increased over all. Primary School (OŠ) 10 There are currently 22 staff employed with a university Source: municipality empl oyee list May 2007 degree. Despite this relative success with raising the educational level of its staff, the management of the administration would like to see a further increase in competence and motivation. One way of doing this is through a central government-sponsored redundancy programme. This programme, however, has limited funds for redundancy payments and employment counselling. Further funding would

Prijepolje Staffing Structure – According to Systematisation May 2006

Odeljenje za urbanizam, Odeljenje za privredu, budžet Odeljenje za op štu upravu i Odeljenje za dru štvene Kabinet graðevinarstvo, komunalno i finansije zajednièki poslove delatnosti predsednika stambene i imovinsko pravne -Rukovodilac odeljenja -Rukovodilac odeljenja -Rukovodilac Opštine poslovi -Pos. budžeta, bilansiranja -Poslovi sistem administratora -Poslovi boraèko invalidske -Šef kabineta sredstava budžeta i interna kontrole -Skupštini poslovi zaštite, civilnih invalida rata i ŽFT -Rukovodilac -Poslovi saradnika za trošenja sredstava -Sekretar opštinskog veæa -Posl. obraèuna, isplata i -Poslovi urbanizma i planiranja odnose sa medijima -Pos. trezora i budžeta -Poslovi radnih odnosa Opštinske knjigovodstveno- -Pravna poslova -Poslovi narodna -Pos. budžetski inspektor uprave raèunovodstvenih poslova iz -Administrativno tehnièki poslovi iz kancelarija -Pos. Raèunovodstveno finansijskog -Poslovi graðanskih stanja, oblasti boraèko invalidske zaštite i oblasti urbanizma i grað. koord. finans. Službe direktnog zdravstvene zaštite i kadrovaèke poslovi arhive -admin-geodetski poslovi iz oblasti korisnika pomoæi -Poslovi obrazovanja, kultura, urbanizma i grað. -studijsko-analitièki poslovi, struèni -Poslove overe rukopisa, prepisa i fizièki kultur, zdravstva i socijalne -Stambeno komunalni poslovi poslovi, fondova i mesnih zajednica i potpisa, izdavanje radnih knji žica i zaštite -administrativno-tehnièki poslovi poslovi javne nabavke studentski krediti -Poslovi prosvetnog inspektora vezani za stembenu oblast -Poslovi knjigovodstva budžetskog -Matièari(6) -Administrativno-raèunovodstveni -Struèni saradnik za saobraæaj, raèunovodstva i izveštanja i poslovi -Poslovi voðenje biraèkog spiska poslovi obrazovanja putevi i komunalne delatnosti knjigovodstva evidentnih raèuna -Poslovi prijema stranaka u -Poslovi pisarnice -Imovinsko-pravni poslovi budžeta uslužnog centra -Poslovi ložaèa parnih kotlova i -Poslovi analitike i sintetike -Daktilografski poslovi (5) održivanja instalacija i sredstava Opštinske uprave i skup. pos. -Poslovi umnožavanja materijala -Poslovi vozaèa putnièkih -Poslovi materijalnog knjigovodstva -Poslovi prijemne kancelarije kod automobila -Poslovi obraèunskog radnika i predsednika Opštine, Pred SO etc -Poslovi dostavljanaja pošta blagajnika -Poslovi prijemni kancelarije kod -Poslovi èišæenja prostorija i -Poslovi knjigovodstva budžetskih naèelnika Opštinske uprave objekata fondova i analitike prihoda bud žeta i -Poslovi poverenika za izbeglice -Poslove centrale poslovi statistike -Poslovi koji se obavljuju u -Poslove portira i èuvara Uslužnom centru (11)

Odsek za Inpsekcijske Odsek za privredne poslove Odsek za dru štvenu brigu poslove -Šef odseka o deci -Šef odseka -SS za poljoprivredu - Šef odseka -komunalni inspekcije -Poslovi privatnog preduzetništva -Gra ð inspek. -Poslovi raèunovodstva za mesne - Poslovi utvrðivanja prava na -Inspektor za saobraæaj i javne zajednice deèiji dodatak -Poslovi likvidatora – isplate puteve -Struèno administrativni i graðevinski -Inspektor zaštite životne sredine poslovi -Finansijski poslovi -Poslovi ekonomata -Administrativni poslovi -Poslovi prijema zahteva -Poslovi raznošenja pošte i odrzavanje higijene

be needed for the municipality to extend the scheme further. The municipality administration has only one person charged with human resource management (in the department for general affairs), and the responsibilities of this position are limited to the legal and contractual aspects of employment. There is no formalised plan or strategy for human resources management or development. Work discipline and efficiency of service delivery has been positive and evaluated well by citizens and management, although senior managers identified problems with requestin g staff to do tasks outside the formal requirements of their job description (in the systematisation).

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Socio-Economic Analysis of the Municipality Prijepolje

The workshops with municipality staff identified issues of salary range and job design/scope of work as important constraints in staff recruitment, motiv ation and performance. As in most state organisations in Serbia, staffing is regulated by the ‘systematisation’ document. This document defines the structure of the administration into departments, identfies all the staffing positions, gives brief descrip tions of the educational requirements for each post, and a short description of job activities. Salaries are regulated by a ‘salary coefficient’. There is a base salary for the administration, and the coefficient determines the actual amount of pay. Fo r example, if the base salary is 10,000 Din per month, and the salary coefficient for a particular post is 1.5, the actual salary for the post is 15,000 Din per month. In this way, salary increases (or decreases) are applied to all, collectively. This has an advantage of apparent fairness, but the disadvantage is a reduction in flexibility and the ability to respond to market pressures for rare skills (e.g. IT technicians).

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Socio-Economic Analysis of the Municipality Prijepolje

Strategic Management The municipality prepared its first strategic plan in 2004 for the period 2005-2009. It is currently going through a process of revising its plan. The priorities identified in the plan are the same as those articulated in interviews with senior administration management: SME development, rural development (agriculture and tourism), improving municipal service delivery and environmental protection. The strategic plan was produced by a local action group consisting of members of local government, civil society and the business community. It was approved by the assembly in May 2005. The strategy, of course, applies to the development of all aspects of the municipality. The only body charged with this range of responsibility is the municipal assembly, which is a legislative body, not an executive one. There are no executive bodies responsible for all aspects of municipal development. The most senior executive responsibility lies with the mayor, who also has a democratic mandate. He can directly influence the work of the municipal administration (with the support of the municipal council). He can also indirectly influence the work of the public enterprises and other municipal -founded institutions. The mechanisms of this indirect influence are two-fold. One is political, through direct discussions and relationships with the members of the Assembly. The other is technocratic, through the support provided by the municipal administration to the Assembly. This support might involve assistance with establishing performance contracts for the public enterprises, and providing inspection reports on the performance of public enterprises, for example. The strength of this technocratic influence therefore depends, in part, on the quality of the analytical capability of the administration staff. Since the formulation of the strategy, the municipality of Prijepolje has been taking action to implement it. The following table summarises action taken.

Strategic Priority Action taken strengthen existing SMEs and develop new ones ? establishment of SME agency, as public - private partnership increase rural production and services – ? municipal administration very active in agriculture & tourism promoting agriculture ? establishment of local tourist agency ? created veterinary centre improve efficiency and quality of services for the ? establishment of CAC, improvements in staff public provided by the Municipal adminstration education levels ensure protection of natural resources and [more information needed] promote sustainable development

The table shows that the municipality has b een able to take action and allocate responsibilities and resources to achieve its strategic priorities. There is currently no structured annual activity/work planning process at the level of the municipal administration, although departments say they prod uce annual plans. The main tool for annual planning is, as in other municipalities, the annual budget process. The budget process follows the legal requirements for public hearings, and involves a questionnaire survey of current budget users. This is th e opportunity for identifying priorities, allocating resources and obtaining assembly commitment for programmes of work. The functional review process was not able to observe public budget hearings (because of timings) so cannot comment on the quality of the budget hearings process. Annual plans and reports from the municipal administration and public enterprises were also not reviewed as part of this research, so we cannot comment on their quality and usefulness. Assessment of progress is generally unst ructured and ad hoc. According to interviews, it consists of supervision of staff work, monitoring the number of complaints, and in particular

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Socio-Economic Analysis of the Municipality Prijepolje

assessing the number of complaints resolved in favour of the municipality. Ministries are also following the work of the municipality in its performance of delegated functions. These indicators, while useful, do not provide an overall assessment of the progress made in realising the objectives of the strategy. As the strategy is revised, it would be helpful to ensure that it includes measurable and meaningful indicators on progress. For example, the public opinion surveys carried out by the PRO project provide useful data on citizen satisfaction of municipal services. These outcome oriented indicators could provi de a more meaningful assessment of progress than the number of complaints, which only relate to more extreme cases.

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Socio-Economic Analysis of the Municipality Prijepolje

Financial Management

Income As with other local governments, Prijepolje’s income comes mainly from Prijepolje Actual income 2006 local tax and fee sources, plus a transfer from central government. In international project 2006, its total budget amounted to income nearly 300m dinars (€3.8 million). The 3% transfer from central government is transfers from other ostensibly to pay for delegated government levels functions, and largely depends on size 30% of population. income from local Prijepolje has been reasonably sources successful in attracting international 67% donor funds; in 2006 it received just over 10m dinars (or about €125,000). The new law on local government finance came into force in 2007. This should see an increase in funding for the poorer municipalities in 2007. Municipalities are also budgeting for project funds from the National Investment Plan (NIP) in 2007. Prijepolje’s budgeted income for 2007 is just over 400m dinars (€5 million), an increase of one third on its 2006 actual income. Of this, 20m din is projected to come from international project funds.

Budget preparation The budget preparation process is carried out according to law, and includes consultation with budget users, and a public budget hearing. The research process was not able to assess the quality of the budget preparation process, nor the degree of citizen participation.

Budget management As a rough indicator of budget management, the variance between planned and actual budget for 2006 was very small. Of a planned expenditure of 341m dinars, the actual expenditure was 294m, around 86% of the budgeted amount. Individual budget lines remained quite close to the planned amounts. This suggests that the budgets were well considered, income projections were realistic, and that the financial controls are adequate to prevent over-spending. The chart below shows the variance between actual and planned expenditure for 2006.

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Socio-Economic Analysis of the Municipality Prijepolje

Prijepolje: budget plan - actual comparison for 2006

60,000,000

50,000,000 plan actual

40,000,000

30,000,000

20,000,000

10,000,000

-

library museum Red Cross Cultural centre child protection physical culture other donations primary educationmesne zajednice other subventions tourist organisationother cultural users Secondary education centre for social work municipal administration Information JIP Polimlje directorate for public works SME development agency Communal Services JKP Lim Projects NIP, UNDP MEGA etc Assembly and Municipal Council funds for agricultural development

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Socio-Economic Analysis of the Municipality Prijepolje

Issues and Constraints This section summarises issues and constraints identified by interviewees and workshop participants during the course of the research for the functional review. The constraints and obstacles as seen by the Municipality management are both external and internal constraints.

External A serious constraint to development is the perceived difficulty in accessing central government funds. The procedure for accessing and acquiring these funds is difficult and success is perceived to be related to informal considerations such as personal relationships rather than formal compliance with application criteria. Nevertheless, co mpared to the other PRO 6 municipalities, Prijepolje has been successful in acquiring funds for infrastructure projects and agricultural development. Prijepolje belongs administratively to the Zlatibor region, which has ten municipalities surrounding Užice and the Zlatibor mountain 7. The size and level of development between municipalities varies, and these differences create difficulties in achieving focus on common issues. Municipal officials envisage the creation of a “vital” region (suštinski region), which would consist of neighbouring municipalities, with similar levels of development and social contexts.

Internal The Municipality has a strong will to focus on and provide support to local economic development. However, the Municipality does not believe that it has a team with the right skills, experience and knowledge to focus strictly on developing projects and initiatives for local economic development. The Municipality also does not have Municipal Manager or the Chief Architect/Urban Planner who would assume lead responsibility for taking such initiatives. Lack of adequate space, computer equipment and skills of employees are also seen as great impediments to improvement of services and work. The management sees the low motivation of staff as additional burden and this was recognised as a result of interlinked factors, including: ? Low salaries; municipal staff in general believe that local governments are forgotten by higher levels of government ? Responsibilities delegated by the state require a lot of additional time and efforts of staff besides regular duties that need to be adequately performed ? Lack of competent human resources strategy, strategy for staff development and on-job coaching and training ? Lack of clear vision and understanding of deve lopment ? Lack of adequate space and equipment accompanied by a lack of adequate skills and knowledge On the other hand, the Municipality suggested that change is assisted by its good cooperative relationships with citizens, Ministries, donors and others, a nd the availability of natural resources. The staff of Prijepolje municipality shows great motivation to develop. Some of their ideas for change include the following: ? Forming a department for local economic development

7 Zlatibor municipalities are: Arilje, Bajina Bašta, Kosjeric, Nova Varoš, Požega, Priboj, Prijepolje, Sjenica, Užice, Cajetina

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Socio-Economic Analysis of the Municipality Prijepolje

? Forming a local economic advisory committee (including representatives from the three sectors, state, private and civil society) ? Forming a department for local tax adminstration ? Fill the positions of municipal manager, chief architect and ombudsman ? Cancel or reorganise the cabinet of the president (of the municipality) ? Establish a central [electronic] register of citizens ? Simplify the procedures for child protection (društvene brige o deci) ? Provide uniforms for staff in the CAC ? Reorganise the CAC into [new] departments [Umrežavanje Uslužnog centra sa odeljenjima] Municipal officials strongly advocate that more general, national -level changes are needed in order to substantially change the conditions for local development. In their view, the most necessary changes are: ? greater decentralisation of powers to local government ? return of property ownership to local governments ? [greater] reimbursement of taxes ? property restitution ? including local communities in the process of decision -making about exploitation of natural resources ? completing the implementation of the law on local self -government [Konacna primena Zakona o lokalnoj samoupravi] ? decentralisation or regionalisation of [development/investment] funds ? positive discrimination in favour of under-developed municipalities ? Creation of ‘vital’ regions of municipalities sharing common understanding and conditions Decentralisation, and especially the return of local government property, are seen as the most important changes and the base for all other improvements and developments at local level. As in all other municipalities in the region, Prije polje sees the return of property as the prerequisite for sustainable development of the local government and of the community as a whole. At present, local resources cannot be managed because ownership is at the national level.

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Socio-Economic Analysis of the Municipality Prijepolje

Needs Functional Review workshop participants were asked as part of the research to identify additional resources and support needs that would assist with making the changes they identified. The table below summarises the needs identifed.

new knowledge and skills

? Seminars for particular areas of expertise, for example on the implementation of specific laws ? Study visits and exchanges with countries that have already gone through transition

consultants or experts

? Transfer of positive experiences from other municipalities and countries

systems and structures

? Electronic connections with other institutions to make work easier and to make documentation available for citizens (courts, registry office, tax, cadastre, Ministry of Interior, etc)

Conclusions and Observations The fact that the Head of the Department for Civic Affairs is also the Head of the Department for General Administration has an obvious logic, considering that many functions of both departments are now serving the public in the Citizens’ Assistance Centre ( Uslužni Centar). However, it has created a large and unwieldy structure, with around 37 staff and only two small sub-departments (plus three mesne kancelarije). The management of the administration in Prijepolje have expressed a wish to reorganise the depar tments around the CAC, so they may wish to consider the possibility of separating the internal support functions from both departments (such as typing pool, switchboard, building maintenance and cleaning) into one support services department, and combining the service delivery functions (such as central registry functions, payments of family allowances, etc) into a second. The majority of the work carried out by the municipal adminstration falls under the categories of service delivery or support to governmetn. There are few responsibilities allocated for policy making. On the whole, this is ok as long as the mayor and the assembly are able to provide sufficient policy development, guidance and monitoring of policy implementation. Experience in government shows that these key political figures require effective technical support to provide research and policy development capability. This frees up the politicians to give them time to consider the political aspects of policy, including decision -making, attracting resources, and creating alliances in support of implementation. As decentralisation gathers pace, it will become increasingly necessary for municipalities’ administrations to provide stronger technical support and guidance on key aspects of policy (for example, social welfare, housing, economic development) for which municipalities have primary responsibility.

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Socio-Economic Analysis of the Municipality Prijepolje

Annexe 1 – Functions of Municipal Assembly [English version based on OSCE translation 8 March 2002] 1. adopt municipal statute and rules of procedure of the assembly; 2. adopt budget and annual account of the municipality: 3. adopt a program of development of the municipality and particular activities; 4. adopt the municipal town plan and regulate use of construction land; 5. adopt ordinances and other general acts; 6. call municipal referendum and referendum in part of the municipal territory, declare an opinion on the proposals contained in citizens' initiatives and determine the proposal of a decision on voluntary financial contributions; 7. establish municipal bodies, utility and other public enterprises, institutions, organisations determined by the municipal statute and supervise their work; 8. appoint and dismiss management and supervisory boards, appoint and dismiss the directors of the utility companies and other enterprises, institutions, organisations and services founded by the municipality, and give approval of their statutes, in accordance with the law; 9. elect president of the municipal assembly and deputy president of the munici pal assembly and, following the recommendation of the municipal president, elect the municipal council; 10. appoint and dismiss the secretary of the municipal assembly; 11. appoint and dismiss the head of municipal administration, i.e., heads of municipal administration departments, following the recommendation of the president of the municipality; 12. set municipal administrative fees and other charges to which the municipality is entitled by law; 13. determine the fee for development and use of constructi on land; 14. pass the act on municipal public borrowing; 15. set working hours for catering businesses, retail and trades facilities; 16. give opinion on the Republic, Province and regional planning; 17. give opinion on the laws governing issues of interes t to local self-government; 18. initiate procedure before the Constitutional Court for protection of rights of the local self - government; 19. issue approval for the use of name, coat of arms and other municipal symbols; 20. perform other activities determined by law and the statute.

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Socio-Economic Analysis of the Municipality Prijepolje

Annexe 2 - Municipal Assembly Boards and Committees

Skupštinski odbori: Assembly Boards Odbor za bezbednost saobracaja Traffic safety Odbor za molbe i žalbe Requests and complaints Odbor za propise Regulations Odbor za urbanizam, gradevinarstvo, stambeno - Urbanism, construction, residential affiars, ecology komunalne poslove, ekologiju i ocenu predloga and assessment of proposals for spatial and urban prostornih i urbanistickih planova i uslova za planning, and services for tidying space uredenje prostora Mandatno -imunitetski odbor Compulsory-immunity (huh?) Odbor za odnose sa verskim zajednicama Relations with faith communities Administrativni odbor Administrative Odbor za ustupanje gradevinskog zemljišta Compulsory pu rchase of construction land (check!) Odbor za odlikovanja i nagrade Awards and prizes Odbor za društvene delatnosti Social affairs Odbor za poljoprivredu Agriculture Odbor za privredu Economy

Committees Savet za zdravstvo Health Savet za zapošlj avanje Employment Savet za rodnu ravnopravnost Gender equality Savet za medunacionalne odnose International relations

Opštinske komisije (ad hoc): Ad hoc commissions: Komisija za elementarne nepogode Natural disasters Opštinski razvojni fond Municipal development fund Komisija za grejanje (predlaže cenu grejanj a) Heating (proposes prices for heating) Komisija za ocenu ekoloških studija for assessing an ecological study Komisija za sprecavanje širenja besnila for preventing the spread of rabies

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Socio-Economic Analysis of the Municipality Prijepolje

Annexe 3 – Classification of functions This classification of functions comes originally from work carried out by UNDP in East and Central Europe, with some additional modifications based on further experience 8.

Classification of Functions

Policy Functions: such as strategic planning, legal drafting, development of performance contracts, minimum standards, norms, policy analysis and evaluation, forecasting.

Coordination Functions: such as coordinating relationships between different bodies of the central ministry, coordinating policy setting and implementation, a nd coordinating

Performance Monitoring Functions: such as monitoring the performance of central and subsidiary bodies, facilitating and enabling central and subsidiary bodies to reach their performance targets.

Regulation/Standard Setting Functions: such as licensing, certification, permissions, accreditation, inspection, compliance, and financial audit.

Support to Government Functions: such as financial management, human resource management, information systems, infrastructure, staff training, effic iency review and management audit, and secretarial services.

Public Service Delivery Functions: such as the provision of products or services to internal or external customers. Service delivery is normally performed by subordinate or supervised bodies.

DAI Europe propose the following principles for organising functions: ? Functions of the same type should be grouped together whenever possible to produce economies of scale and maximize synergies and common types of skills. ? Conversely, it is important to separate policy and service delivery functions, and to ensure that policy functions are performed by the central ministry and service delivery by subsidiary bodies of the ministry. ? Regulatory functions should be separated from service delivery functions to prevent conflicts of interest and corruption. ? Support functions that enable the core functions of the ministry to be performed should be separated from all other functions.

8 with thanks to DAI Europe for making this draft available

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Socio-Economic Analysis of the Municipality Prijepolje

CITIZEN SATISFACTION SURVEY

Draft version

Realized by TNS Medium Gallup

May/June 2007.

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Socio-Economic Analysis of the Municipality Prijepolje

Contents

INTRODUCTION 54 METHODOLOGICAL REPORT 55

Sample characteristics 56

The Questionnaire 57

Dissatisfaction Indices 57 ANALYSIS WITHIN MUNICIPALITY 58 Prijepolje 58 I THE SOCIO-ECONOMICAL CONTEXT 59

1.1. Personal financial situation 59

1.2. General situation in the Municipality 59 II MUNICIPALITY SERVICES 61

2.1. General evaluation of Municipality services 61

2.2. Importance of particular aspects of the service 62 III THE LAST VISIT TO THE MUNICIPALITY 63

3.1. The most visited department 63

3.2. General satisfaction with the visit 63

3.3. Dissatisfaction indices 64

3.4. Finding way in the Municipality 64

3.5. Using the informal ways 66

3.6. Now and before 67

Summary 68 SOCIO – DEMOGRAPHICAL ANALYSIS 69 I THE SOCIO-ECONOMICAL CONTEXT 70

1.1. Personal financial situation 70

1.2. General situation in the Municipality 70 II MUNICIPALITY SERVICES 71

2.1. General evaluation of Municipality services 71

2.2. Importance of particular aspects of the service 71 III THE LAST VISIT TO THE MUNICIPALITY 71

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Socio-Economic Analysis of the Municipality Prijepolje

3.1. General satisfaction with the visit 71

3.2. Finding way in the Municipality 71

3.3. Using the informal ways 71

3.4. Now and before 71 SUMMARY 72 COMPARISON BETWEEN MUNICIPALITIES 73 I THE SOCIO-ECONOMICAL CONTEXT 74

1.1. Personal financial situation 74

1.2. General situation in the Municipality 75 II MUNICIPALITY SERVICES 78

2.1. General evaluation of Municipality services 78

2.2. Importance of particular aspects of the service 78 III THE LAST VISIT TO THE MUNICIPALITY 79

3.1. The most visited departments 79

3.2. General satisfaction with the visit 79

3.3. Dissatisfaction Indices 80

3.4. Finding the way in the Municipality 80

3.5. Using the informal ways 82

3.6. Now and before 83 Key findings 83 SOCIO – DEMOGRAPHICAL ANALYSIS 83 COMPARISON BETWEEN MUNICIPALITIES 84

I Socio-economical context 84

II Municipality services 84

III Last visit to the Municipality 84 CONCLUSION 85

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Socio-Economic Analysis of the Municipality Prijepolje

INTRODUCTION

Citizen satisfaction survey is an activity of the project “Municipal Development in South West Serbia” (PRO). The overall objective of this project is to strengthen local governments in facilitating socio - economic development and contribute to attainment of good local governance in the region. The specific purpose of the project is to develop capacities of l ocal stakeholders and local governments so that municipalities in South West Serbia, individually and jointly, plan and take strategic action to achieve the sustainable economic and social development of the region and to fulfil their obligations to citizens.

The project “Municipal Development in South West Serbia” provides support to six municipalities: Novi Pazar, Sjenica, Tutin, Nova Varos, Prijepolje and Priboj. The survey explored the situation in all of the six municipalities.

By this survey the information about municipality in general and Municipality services provided to citizens was to be collected, as well as citizens` satisfaction with them. The results of this survey will be used as a means of measuring the program impact and be an integral part of the monitoring and evaluation plan.

There are three main topics, and three levels of analysis in the survey. The main survey topics are: 1. General socio-economical situation in the municipality, 2. General perception of Municipality services and off icials, 3. The last visit to the Municipality – department visited and satisfaction with particular aspects of service. The main levels of analysis are: 1. Analysis within each municipality 2. Socio-demographical analysis 3. Comparison between municipalities

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Socio-Economic Analysis of the Municipality Prijepolje

METHODOLOGICAL REPORT

Survey type: Quantitative fieldwork survey, direct (face to face) interview, according to the structured questionnaire.

Fieldwork: Between May 22 nd to June 1st, 2007

Locations: The survey was conducted in six municipalities i n South - Western Serbia: Nova Varos, Novi Pazar, Priboj, Prijepolje, Sjenica and Tutin.

Technique/instrument : Direct face to face interview, in the household of respondent, based on the structured questionnaire.

The Sample: Total sample size was 900 respondents. There were 150 respondents interviewed in each municipality. The multistage random sampling procedure was applied.

Sampling procedure: First, the sample points are randomly chosen without replacement in each municipality, from the list of voting stations. Voting station plays the role of sample point. It is a statistical list of voters, which covers approximately one neighborhood. Voting population corresponds with the adult (18+). Statistical database of voting stations is used as a source fo r selecting sampling points. Sample points are selected randomly, with probability of selecting that is proportional to their share in the total number of voters in the given strata. In the second and third stage respondents are chosen at random and syste matically. If required by the Client, quotas regarding ethnicity, age, gender and education can be employed. Selection of respondents: the interviewer starts from a starting point randomly determined by the local supervisor from maps and street list. Goin g up from the given home number, he/she enters every 3 rd household (household is defined as all persons living in the flat). In the household, he/she chooses an 18+ according to the criteria in the screening part of the questionnaire. If the chosen respond ent is not available at the moment, the interviewer schedules the next visit (on different time and day, maximum three visits). In case of refusal, the interviewer enters the next household.

Control of fieldwork: Standard procedure of TNS Medium Gallup -a is that after fieldwork check veracity of data, which interviewers must enclose with tasks. This control is conducted by phone, we contact 15% of respondents from all sample. Control was conducted two day after training and did not show significant irregularities in fieldwork.

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Socio-Economic Analysis of the Municipality Prijepolje

Sample characteristics

Number of % respondents Male 518 57.6 Gender Female 382 42.4 18-30 200 22.2 Age 31 - 50 487 54.1 51-65 184 20.4 65+ 29 3.2 No school/Elementary school 217 24.1 Education High school 517 57.4 College/University 166 18.5 Rural 401 44.6 Type of settlement Urban 421 46.8 Suburb 78 8.7 Nova Varos 150 16.7 Novi Pazar 152 16.9 Municipality Priboj 150 16.7 Prijepolje 150 16.7 Sjenica 150 16.7 Tutin 148 16.4 Working full or part time 488 54.2 Employment Unemployment 252 28.0 status Student 14 1.6 Housewife 71 7.9 Retired 75 8.3 Up to 3000 dinars 124 4.1 From 3001 – 6000 dinars 193 21.9 From 6000 – 12000 dinars 202 22.9 Total monthly income per From 12001 – 18000 dinars 138 15.6 member From 18001 – 30000 dinars 98 11.1 More then 48000 dinars 15 1.7 No monthly income 112 12.7 No answer 18 2.0 Total 900 100

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Socio-Economic Analysis of the Municipality Prijepolje

The Questionnaire

? Duration of residence in the municipality Screening questions ? Last visit to municipality ? Perception of financial situation General socio-economical situation ? Perception of municipality in general General perception of Municipality ? Evaluation services in general services ? Importance of particular aspects

? Department visited ? General satisfaction ? Satisfaction with particular aspects of service The last visit to the Municipality ? Finding way in the Municipality ? The informal ways ? Now and before ? Gender ? Age ? Education Demographics ? Employment status ? Monthly income ? Type of settlement

Dissatisfaction Indices To explore satisfaction with the last visit to the Municipality more specifically, first we asked how important is the specific aspect to citizens (exploring their expectations), and then how satisfied they are with this aspect.

The level of expectations (importance) and satisfaction were then used for calculating dissatisfaction indices (DI). Comparison between expectations and satisfaction offers a possibility for assessing the level of dissatisfaction with a specific aspect:

DI= [(Expectation-Satisfaction)*Exp]/100

DI indicates the level of dissatisfaction: higher number – greater dissatisfaction. A low DI means the expectations are well fulfilled. A negative DI indicates that current satisfaction is higher than expectations.

Specific aspects of the service Citizens expressed general importance (expectations) 1. Fast and efficient service and their satisfaction wit h each specific aspect of service, on a 5 – point scale. Average values (means) 2. Simple procedures on these scales were used for calculating the level (% 3. Professional of maximum) of expectations and satisfaction 4. Not much paperwork (Mean*100/5). This was used in order to calculate 5. Not much walking dissatisfaction indices. 6. Politeness and kindness 7. Nice appearance

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Socio-Economic Analysis of the Municipality Prijepolje

ANALYSIS WITHIN MUNICIPALITY

Prijepolje

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Socio-Economic Analysis of the Municipality Prijepolje

I THE SOCIO-ECONOMICAL CONTEXT

1.1. Personal financial situation

How would you evaluate your current financial situation? Would you say it is...

Exceptionally good 1%

Fairly good 13%

Bearable 42%

Bad 33%

Unbearable 11%

In Prijepolje most citizens evaluate their current financial situation as bearable. Lots of them thin k it is bad or even unbearable and the minority thinks it is good. This is not a very optimistic situation with 44% of citizens complaining on their financial situation and 42% of them considering it bearable. It indicates general financial dissatisfactio n.

Compared to 12 months ago, do you think that the financial situation of your household has...

Got a lot better 2%

Got somewhat better 16%

Stayed the same 57%

Got somewhat worse 19%

Got a lot worse 6%

Comparison with the situation 12 months ago also reveals some not so optimistic information. The majority of citizens see no changes, and there are more of those who think the current situation is worse than those who t hink it is better than before.

1.2. General situation in the Municipality

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Socio-Economic Analysis of the Municipality Prijepolje

Think about your municipaliti in general. How much socially and economically developed do you think your municipality is?

Completely undeveloped 55%

Mainly undeveloped 36%

Mainly developed 7%

Completely developed 1%

Results show that more than half citizens of Prijepolje perceive their municipality as completely undeveloped and more than third perceive it as mainly undeveloped. This means that great majority (more than 90%) of citizens consider their municipality as undeveloped.

Compared to 2006 would you say that your municipality has developed, socially and economically improved its overall situation?

Not at all improved 55%

Mostly no 31%

Mainly improved 13%

Completely improved 1%

More than half citizens of Prijepolje does not se see any sign of improvement in, and one third think that their municipality has mainly not improved. The minority (about 14%) perceives some improvements.

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Socio-Economic Analysis of the Municipality Prijepolje

Compared to 2006, would you say that local goverment has been improved, aggravated or you see no difference?

Improved 7%

Aggravated 35%

The same 58%

Don`t know/no answer 1%

Asked to evaluate the local government, more than half citizens of Prijepolje said that it stayed the same as it was in 2006; one third said that it has aggravated while only 7% said that it has improved.

Would you agree the municipality and local government take good care of their citizens and provide services adequate to their needs?

Not at all 67%

Mainly no 21%

Mainly yes 11%

Completely agree 1%

Don’t know/no answer 1%

Here we see that the evaluation of municipality services and local government is not very positive, when taking good care of the citizens needs in question. Near to 70% completely disagrees with the statement that the municipality and local government take good care of the citizens and provide services adequate to their needs. Only 12% agrees with this statement.

Talking about general evaluation of socio – economical context and municipality in Prijepolje, we can say it is not very optimistic. There are signs of general dissatisfaction with financial situation, with municipality in general and with local government. But further ana lysis will explore details and we will see hat there are different evaluations.

II MUNICIPALITY SERVICES

2.1. General evaluation of Municipality services

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Socio-Economic Analysis of the Municipality Prijepolje

Would you say that the Municipality offices represent a good citizens` service, able to provide adequate services to their citizens?

DK/NA 7%

No; 23%

Yes; 69%

General evaluation of Municipality offices in Prijepolje is p ositive. The majority (about 70%) of citizens think that it is good citizens’ service.

The general dissatisfaction is projected on their municipality when they talk about it in general. But, when it comes to situation experienced and rating of concrete a spects of Municipality services, evaluation is much better. This trend will continue in exploration of other particular elements, as we will see later.

2.2. Importance of particular aspects of the service

Citizens were asked to state how important in general are particular aspects of Municipality services. They were suppose to estimate on scale 1 – 5, where 1 means not important at all and 5 means very important. The table represents average mark on a five -point scale:

1. Fast and efficient service 4.84 2. Simple procedures 4.83 3. Professional 4.82 4. Not much paperwork 4.82 5. Not much walking 4.82 6. Politeness and kindness 4.73 7. Nice appearance 4.71

Citizens of Prijepolje perceive all particular aspects of Municipality service as very important giving a high average rate to each of them. Fast and efficient service is considered the most important aspect and nice appearance is less important.

General evaluation of Municipality offices in Prijepolje is positive. The majority (about 70%) of citizens think that i t is good citizens’ service. Although we had signs of general dissatisfaction, when discussion comes to concrete aspect of municipality service – evaluation is much better.

All the particular aspects of the service are perceived as very important. Fast a nd efficient service and simple procedure is considered the most important by the Prijepolje citizens.

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Socio-Economic Analysis of the Municipality Prijepolje

III THE LAST VISIT TO THE MUNICIPALITY

Impressions of citizens of Prijepolje about Municipality are relatively fresh considering the time of their last visit. Quarter of citizens visited the Municipality during past month and 8% in the week before the survey. Others visited Municipality a couple of months ago.

3.1. The most visited department

Which of the Municipality departments have you been visiting the last time you were there? MULTIPLE ANSWERS

Department for general management 53% and certificates 11% Department for social issues 6% Department for legal advice 6% Building inspection 6% Communal inspection

Department for legal and property 5% rights 5% Department for finance and economy

Department for building and city 2% planning issues 2% Department for refugees

The most frequently visit ed department in Prijepolje is department for general management and certificates.

3.2. General satisfaction with the visit

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Socio-Economic Analysis of the Municipality Prijepolje

Now, focus on your last visit to the Municipality. How satisfied in general are you with Municipality services?

Not at all satisfied 5%

Mainly not satisfied 14%

Mainly satisfied 61%

Completely satisfied 19%

Don’t know/no answer 1%

Talking about their last visit, the most citizens of Prijepolje are generally satisfied with th e Municipality service and the minority is not satisfied. Evaluation of Municipality is positive again.

3.3. Dissatisfaction indices

Importance Current satisfaction DI 96.8 96.3 96.6 96.3 96.5 100% 94.3 94.7 100 87.9 90% 82.4 82 81.3 83.5 82 82.5 90 80% 80

70% 70

60% 60

50% 50

40% 40

30% 30

20% 14 14 13 13 14 13 20 6 10% 10

0% 0 Fast and Competence Space Politenes Procedure Paperwork Walking efficient apperance simplicity from door to door

Citizens of Prijepolje are satisfied with all the specific aspects of the Municipality se rvice. Their current satisfaction with service is high and similar for all its aspects. Dissatisfaction Indices are pretty low (13 or 14), and for space and offices appearance is even lower.

3.4. Finding way in the Municipality

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Socio-Economic Analysis of the Municipality Prijepolje

Did you find your way in the Municipality easily?

No 6%

Yes 94%

Finding the way in the Municipality was easy for almost all citizens of Prijepolje. Only 6% of citizens stated that they did not found their way easily.

Did you know in advance which department to go to and which documents to prepare?

No; 9% DK/NA; 2%

Yes; 89%

Asked if they had known in advance which department to go to and which documents to prepare the greatest majority stated that they knew, and only 9% did not know this in advance.

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Socio-Economic Analysis of the Municipality Prijepolje

How did you find out to which department you ought to go?

In the Municipality - asking 92% officers

In the municipality - reading 7% the signs

From the third party (friend, 1% cousin)

Almost all respondents approached the officers in order to found out to which department to go to. Few were reading the signs and only 1% informed themselves from the thirds party.

How many times did you have to contact the Municipal staff in order to finish your business?

Once 85%

2-3 times 8%

4-5 times 2%

More than 5 5% times

In Prijepolje, the great majority had to contact the staff only once in order to finish their business.

3.5. Using the informal ways

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Socio-Economic Analysis of the Municipality Prijepolje

And in order to finish your business in the Municipality Service Center, besides the Municipal staff, did you have to contact or plan to contact...?

Relatives and friends working in the 15% Municipality Municipal officials not working in 2% the Centre, but could help Governor or other political party 1% officials Other who could help finishing your 3% business

Nobody else 79%

Asked if they had to use any informal way in order to finish their business, the greatest majority of citizens of Prijepolje answered negatively. Those who have used the connections most frequently mentioned their relative s and friends working in the Municipality.

Would you say that for fast and efficient finishing of the business in the Municipality, connections or informal payments are a necessity?

DK/NA 2% Yes, 19%

No, 79%

Congruently to not using the informal ways, the majority does not think that connections or informal payments a necessity for fast and efficient finishing of business in the Munici pality, and one fifth does think so.

3.6. Now and before

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Socio-Economic Analysis of the Municipality Prijepolje

Compared to your earlier visits to the Municipality, 2-5 years ago, would you say that the Municipality’s quality of the services has improved, aggravated, or it is the same?

Don`t know/no answer 1%

The same 20%

Aggravated 8%

Improved 71%

Two thirds of citizens of Prijepolje perceive the Municipality services being improved compared to several past years. One fifth does not see any changes made, 8 % think it aggravated and 1% did not answer the question.

Evaluation of Municipality service is positive and majority in Prijepolje is generally satisfied with their last visit of Municipality. The most visited department in Prijepolje is department for g eneral management and certificates. Current satisfaction with all specific aspects of the service high.

Most citizens found their way easily and had knew in advance which department to go to and which documents to prepare. They usually asked the officers in the Municipality and contacted the staff only once in order to finish their business. The majority does not consider connections or informal payments a necessity for fast and efficient finishing of business and they mostly did not nor plan to use the informal ways for finishing business. Most citizens perceive the Municipality services being improved compared to several past years.

Summary

General evaluation of socio – economical context and municipality in Prijepolje reflects signs of general dissatisfaction with financial situation, with municipality in general and with local government.

Although there are signs of general social dissatisfaction, when discussion comes to concrete element of municipality – Municipality services - evaluation is muc h better. Majority of citizens think that it is good citizens’ service. All particular aspects of Municipality service are perceived as very important, current satisfaction with them is pretty high. Finding way in the Municipality is easy for almost all citizens, they usually asked the stuff in order to found out where to go, and majority had to contact the staff only once in order to finish their business. They do not consider connections or informal payments a necessity for fast and efficient finishing of business, so they do not use the informal ways in majority of cases. Most citizens perceive the Municipality services being improved compared to several past years.

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Socio-Economic Analysis of the Municipality Prijepolje

SOCIO – DEMOGRAPHICAL ANALYSIS

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Socio-Economic Analysis of the Municipality Prijepolje

In order to attain data reliability, th e socio-demographical analysis was done on the whole sample base of 900 respondents. This analysis was aiming to explore the general social context in the South - Western region, which can be used in data interpretation. I THE SOCIO-ECONOMICAL CONTEXT

1.1. Personal financial situation Evaluation of current financial situation is related to gender - a little better with men than with women. Men describe their financial situation as good more often than women, who more often evaluate it as bearable.

When it comes to education, there are also differences. The higher educated categories evaluate their situation more positive. Financial situation is most frequently evaluated as bearable, especially for students and but employed. Students, unemployed and retired more frequently describe their financial situation as bad or even unbearable.

Monthly income is also a factor related to perception of financial situation in the sense that those who have no monthly income perceive it much worse than those with income. Satisfaction with financial situation grows along with monthly income.

People from rural settlements evaluate financial situation somewhat more positive than those from urban.

Citizens with higher education perceive that their financial situation is be tter compared to 2006. Similarly perceptions have students and employed. For those with low education, no monthly income and no job, it got worse. Gender and age are not related to this issue.

1.2. General situation in the Municipality Citizens generally perceive their municipalities as mainly or completely undeveloped. Between gender, age and education categories we see no difference on this issue. Retired are most dissatisfied with development of their municipalities, and next similar are unemployed, th ose with no monthly income. Students are somewhat more optimistic and more often perceive their municipalities as developed.

There are big differences between man and women on the issue of social and economical development of municipalities. Women signif icantly more often see no improvements than men do. We also see that those with higher education see less improvement than those with lower as well as those from urban settlements.

When it comes to local government students have more positive opinion and they mostly perceive it has improved. Citizens with no job or very low monthly income tend to express dissatisfaction.

Asking the citizens if the municipality and local government take good care of them and provide services adequate to their needs, w e got that the least satisfied categories are unemployed, those with very low monthly income and retired. Citizens with higher monthly income were more positive. Urban settlement citizens were less positive than rural settlement citizens.

Exploration of perception of general socio – economical situation reveals regularity. Citizens who are low educated, unemployed or with low monthly income express more dissatisfaction on every issue. Also, those with high monthly income show higher satisfaction.

It seems that those who are financially better positioned are less sensitive than those who are not and who expect government and municipality to do something to make their situation better. Women are less satisfied with financial situation than men and see less improvement which is maybe because of their general social role. Students tend to be more optimistic, probably because they are young and expect changes.

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Socio-Economic Analysis of the Municipality Prijepolje

II MUNICIPALITY SERVICES

2.1. General evaluation of Municipality services Employed citizens, es pecially those with high monthly income, and students are the most satisfied with the Municipality offices. Unemployed and those with lowest income are least satisfied. Urban citizens are again less satisfied than rural.

2.2. Importance of particular aspe cts of the service Particular aspects of service are high and similarly estimated. Women appreciate not much walking from door to door more than men do. Citizens with high education appreciate provision of fast and efficient service, competence of the sta ff and simple procedure more important than those with lower education.

General evaluation of Municipality services is better for employed, especially those with high monthly income, students and rural settlement citizens. Personal financial or social sa tisfaction, education and interest, all related to expectations, are related to this issue.

III THE LAST VISIT TO THE MUNICIPALITY

3.1. General satisfaction with the visit General satisfaction with last visit to the Municipality is similarly disposed a s satisfaction with previous issues. Most satisfied are those with the highest (they are mostly completely satisfied) or high monthly income and the least those with lowest, unemployed and retired.

3.2. Finding way in the Municipality Most citizens found their way in the Municipality easily, but those who had some difficulties were older, retired citizens. Education level and monthly income are also related to this issue and more difficulties had those with low education and low monthly income.

The old, retired citizens less frequently know in advance which department to go to and what documents to prepare, and contact the Municipal staff more than once.

3.3. Using the informal ways Attitude toward usage of the informal ways is related to working status in the sense that unemployed and retired the most often think this is a necessity. Those with lowest or no monthly income mainly share this attitude. Students disagree with this the more frequently. Gender, age and education are not related to this opinio n.

3.4. Now and before Comparisons of Municipality services with several past years are more positive with young population. Improvement is more frequently perceived by students and employed, as well those with high monthly income. Aggravation is usuall y perceived by unemployed, and those with low income.

Satisfaction with their last visit to Municipality is related to similar socio -demographical variables as general socio-financial satisfaction. Most satisfied are those with high monthly income, while the least satisfied are those with lowest income, unemployed and retired.

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Socio-Economic Analysis of the Municipality Prijepolje

For older and retired, lower educated, it is more likely to expect some difficulties in finding their way in the Municipality.

When it comes to informal ways, we see that unempl oyed and retired most frequently think they are necessary as well as those with lowest or no monthly income. Student disagree with this the most. Students and employed, especially those with high monthly income, are perceiving improvements in the Municipality more frequently than others.

SUMMARY Exploration of perception of general socio – economical situation reveals regularity. The low educated, unemployed or with low monthly income, tend to show dissatisfaction on almost each issue. They are dissatisfied with municipality in general, with local government, with Municipality services. They are generally more sensitive and expect government and municipality to do something to make their situation better.

On the other side, those with high monthly inco me tend to express higher satisfaction. Students are also optimistic, probably because they are young and expecting changes, maybe even made by them. They present the capacity and strength of any municipality and are the category that should be invested in.

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Socio-Economic Analysis of the Municipality Prijepolje

COMPARISON BETWEEN MUNICIPALITIES

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Socio-Economic Analysis of the Municipality Prijepolje

I THE SOCIO-ECONOMICAL CONTEXT

1.1. Personal financial situation

How would you evaluate your current financial situation? Would you say it is...? Exeptionaly good Fairly good Bearable Bad Unbearable DK/NA

NOVA VAROS 23% 39% 25%

NOVI PAZAR 17% 48% 16%

PRIBOJ 18% 55% 19%

PRIJEPOLJE 13% 42% 33%

SJENICA 41% 39% 12%

TUTIN 37% 40% 17%

Majority of citizens in all municipalities stated that they live in a bearable financial situation. Only in Sjenica and Tutin more frequent were the citizens who describe their current financial situation as fairly good.

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Socio-Economic Analysis of the Municipality Prijepolje

Compared to 12 months ago, do you think the financilal situation of yout household has…? Got a lot better Got somewhat better Stayed the same Got somewhat worse Got a lot worse

NOVA VAROS 18% 53% 10% 17%

NOVI PAZAR 13% 56% 11% 15%

PRIBOJ 18% 63% 13%

PRIJEPOLJE 16% 57% 19%

SJENICA 39% 38% 9%

TUTIN 26% 40% 27%

In most municipalities majority perceives no changes in financial situation compared to 12 months ago. But important to say is that in Sjenica almost 40% of citizens think that their financial situation got somewhat better. In Tutin this was stated by each forth citizen, but equally frequent were those for whom the financial situation got worse.

1.2. General situation in the Municipality

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Socio-Economic Analysis of the Municipality Prijepolje

Think about your municipality in general. How much socially and economically do you think your municipality is Completely undeveloped Mainly undeveloped Mainly developed Completely developed

NOVA VAROS 41% 47%

NOVI PAZAR 24% 50% 16%

PRIBOJ 11% 82%

PRIJEPOLJE 55% 31% 13%

SJENICA 33% 51% 11%

TUTIN 22% 66%

Except in Tutin, in all other municipalities, citizens perceive their municipality as mainly undeveloped. Besides the actual situation and developments in the municipality , this can be related with socio - economical background and generalization of personal satisfaction or dissatisfaction.

Compared to 2006, would you say that your municipality has developed, socially and economicaly improved its overall situation? Not at all improved Mostly no Mainly improved Completely improved DK/NA

NOVA VAROS 44% 47%

NOVI PAZAR 31% 50% 16%

PRIBOJ 13% 82%

PRIJEPOLJE 55% 31% 13%

SJENICA 33% 51% 11%

TUTIN 22% 66%

Except in Tutin, in all other municipalities, citizens see no social and economical development compared to 2006. In Tutin significant majority of citizens think that social and economical situation in their municipality has improved since last year.

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Socio-Economic Analysis of the Municipality Prijepolje

Compared to 2006, would you say that local goverement has been improved, aggravated or you see no diference? Improved Aggravated The same DK/NA

NOVA VAROS 31% 60%

NOVI PAZAR 21% 34% 45%

PRIBOJ 12% 77%

PRIJEPOLJE 35% 58%

SJENICA 15% 73%

TUTIN 30% 14% 55%

Majority of citizens in all municipalities see no difference when talking about improvements of local government.

Would you agree the municipality and local government take good care of their citizens and provide services adequate to their needs? Not at all Mainly no Mainly yes Completely agree DK/NA

NOVA VAROS 37% 38% 21%

NOVI PAZAR 26% 35% 23% 16%

PRIBOJ 27% 29% 44%

PRIJEPOLJE 67% 21% 11%

SJENICA 23% 41% 19%

TUTIN 19% 63% 10%

Opinion about taking good care of the citizens is different between municipalities. In Tutin and Priboj citizens are mainly positive. On the other hand, in Novi Pazar, Nova Varos an d Sjenica people think that local government does not take care of citizens. The strongest negative opinion is in Prijepolje. Great majority in Prijepolje think that their local government does not take care of citizens at all.

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Socio-Economic Analysis of the Municipality Prijepolje

Generally, citizens of South West Serbia live a bearable life. They mainly perceive no recent changes in their financial status. Except in Tutin, citizens perceive no recent social and economical development of their municipality. In Tutin (especially) and Priboj citizens tend to e xpress positive general opinion towards municipality officials, and think that their local government mainly takes care of their citizens. In all other municipalities citizens do not agree that municipality and local government take good care of citizens and provides services adequate to their needs.

II MUNICIPALITY SERVICES

2.1. General evaluation of Municipality services

Would you say that the municipality offices represent a good citizens service, able to provide adequate services to their citizens?

Yes No DK/NA

NOVA VAROS 39% 53%

NOVI PAZAR 45% 53%

PRIBOJ 69% 16%

PRIJEPOLJE 69% 23%

SJENICA 14% 49% 37%

TUTIN 82%

In Priboj, Prijepolje and Tutin citizens most frequently think that municipality offices are a good citizen’s service. In Nova Varos and Novi Pazar opinion is more divided, while in Sjenica there is more indifference, reflected through the higher frequency of non -answers.

2.2. Importance of particular aspects of the service

Average marks (1 -5 point scale) Nova Novi Priboj Prijepolje Sjenica Tutin Varos Pazar Fast and 4.94 4.66 4.86 4.84 4.25 4.85 efficient service Professional 4.92 4.67 4.81 4.82 4.30 4.78

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Socio-Economic Analysis of the Municipality Prijepolje

Nice 3.92 4.58 4.64 4.71 3.90 4.55 appearance Politeness and 4.76 4.59 4.78 4.73 3.88 4.57 kindness Simple 4.87 4.66 4.71 4.83 3.64 4.78 procedures Not much 4.80 4.64 4.72 4.82 3.44 4.82 paperwork Not much 4.86 4.59 4.68 4.82 2.70 4.86 walking

For citizens in all municipalities the most im portant aspects of the service are professional, fast and efficient service, and less important is usually the nice space appearance. Compared to average marks in other municipalities, in Sjenica all the marks are generally lower, which can be related to greater indifference.

For the citizens of South West Serbia, the most important are the professional, fast and efficient service.

III THE LAST VISIT TO THE MUNICIPALITY General opinion about quality of the municipality service is very positive especiall y in Priboj, Prijepolje and Tutin.

3.1. The most visited departments Department for general management and certificates were the most visited in Priboj, Prijepolje, Sjenica and Nova Varos. Department for social issues were the most visited in Novi Pazar a nd Tutin.

3.2. General satisfaction with the visit

How satisfied in general are you with the service provided to you? Not at all satisfied Mainly not satsified Mainly satsified Completely satisfied DK/NA

NOVA VAROS 17% 35% 38%

NOVI PAZAR 13% 28% 42% 17%

PRIBOJ 86%

PRIJEPOLJE 14% 61% 19%

SJENICA 30% 57%

TUTIN 22% 56%

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Socio-Economic Analysis of the Municipality Prijepolje

Generally, citizens are satisfied with the service. Satisfaction with the last visit to the municipality is strongly expressed by the citizens in Priboj where more than 90 % of them state satisfaction. Positive evaluation is also noticed in Prijepolje. On the other side satisfaction is less frequently expressed in Nova Varos, Novi Pazar and Sjenica.

3.3. Dissatisfaction Indices

NOVA VAROS DI NOVI PAZAR DI PRIBOJ DI PRIJEPOLJE DI SJENICA DI TUTIN DI 60 50 40 30 20 10 0 Space to door Fast and efficient Walking Politenes simplicity from door Procedure apperance Paperwork Competence

Dissatisfaction with most aspects of the service is highest in Nova Varos. Dissatisfaction is generally low in Priboj and Prijepolje. In all municipalities citizens are most satisfied with space appearance, and the least satisfaction is most frequent for walking from door to door, paperwork and procedure simplicity.

3.4. Finding the way in the Municipality

Did you find way in the Municipality easily?

Yes No DK/NA

NOVA VAROS 73% 27%

NOVI PAZAR 89% 10%

PRIBOJ 97%

PRIJEPOLJE 94%

SJENICA 10% 87%

TUTIN 95%

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Socio-Economic Analysis of the Municipality Prijepolje

In all municipalities citizens find their way easily. Those who had some difficulties are most frequent in Nova Varos.

Did you know in advance which departmens to go and which documents to prepare? Yes No DK/NA

NOVA VAROS 60% 40%

NOVI PAZAR 48% 52%

PRIBOJ 92%

PRIJEPOLJE 89%

SJENICA 74% 24%

TUTIN 90%

In Novi Pazar more then half of citizens did not know in advance which departments to go and which documents to prepare. Similar is in Nova Varos. This could be a consequence of organization in the municipality, but also of the lev el of initial involvement and information. In all other municipalities, citizens know in advance which departments to go, and which documents to prepare.

Direct approach to the officers is probably the most preferred way of informing. In all municipalitie s majority of citizens found out to which department to go by asking the officers in the municipality.

How many times did you have to contact the Municipal staff in order to finish your business? Once 2 - 3 times 4- 5 times More then 5 times

NOVA VAROS 54% 28% 10%

NOVI PAZAR 41% 44% 10%

PRIBOJ 10% 89% PRIJEPOLJE 85%

SJENICA 37% 55% TUTIN 29% 65%

In Novi Pazar almost half of citizens had to contact municipal staff more then once in order to finish their business. I n all other municipalities majority of citizens has contacted the Municipal staff only once in order to finish their business. This number of contacts can be related to personal and organizational factors.

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Socio-Economic Analysis of the Municipality Prijepolje

3.5. Using the informal ways

Would you say that for fast and efficient finshing of the business in the Municipality, connections or informal payments are necessity? Yes No DK/NA

NOVA VAROS 49% 43%

NOVI PAZAR 17% 76%

PRIBOJ 89%

PRIJEPOLJE 19% 79%

SJENICA 24% 27% 49%

TUTIN 42% 53% 42%

In most municipalities majority states that connections or informal payments are not necessary. However, opinion is divided in Nova Varos and Tutin, while in Sjenica high percentage of non -answers reflects indifferent attitude or indecisivene ss related to social desirability of this issue.

And in order to finish your business in the Municipal Service Centre, besides the Municipal staff, did you have to contact or plan to contact…? NOVA VAROS 62% 38%

NOVI PAZAR 43% 57%

PRIBOJ 7% 93%

PRIJEPOLJE 21% 79%

SJENICA 35% 65%

TUTIN 66% 34%

Contacted/plan to contact Nobody else contacted

Actual usage of informal ways is significantly different from municipality to municipality. When all of those who contacted or plan to contact some outside party are compare d to those who contacted the Municipal staff only, situation in Priboj is incomparably the most positive and citizens do not contact anybody else but Municipal staff. In Prijepolje, Sjenica and Novi Pazar some citizens have used or plan to use connections, but there is more of them who did not nor plan to. In Nova Varos and Tutin situation is negative and majority asked for extra help.

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Socio-Economic Analysis of the Municipality Prijepolje

3.6. Now and before

Compared to your earlier visits to the Municipality, 2-5 years ago, would you say that the Municipality's quality of the services has imporved, aggravated, or it is the same?

NOVA VAROS 16% 16% 62% Improved Aggravated NOVI PAZAR 39% 13% 45% The same DK/NA PRIBOJ 1%13% 85%

PRIJEPOLJE 71% 8% 20%

SJENICA 15%7% 73%

TUTIN 72% 5% 24%

We found significant differences between municipalities. The biggest improvement is perceived in Priboj, Tutin and Prijepolje. Citizens of these municipalities think that quality of Municipality services in their municipalities are much better than they were during several past years. Citizens of Sjenica and Nova Varos mostly do not feel any changes. In Novi Pazar improvements are perceived but not as much as in other municipalities having Citizens Assistance Centre.

Besides the divided opinion in Nova Varos and Tutin, majority in other municipalities think that informal payments are not a necessity. When all of those who contacted or plan to contact some outside party are compared to those who contacted the Municipal staff only, situation in Priboj is incomparably the most positive while in Nova Varos and Tutin situation is negative and majority asked for extra help.

Dissatisfaction with almost all specific aspects of the service is highest in Nova Varos. Dissatisfaction is generally on a very low level in Priboj and Prijepolje.

Compared to earlier visits to the munici pality 2-5 years ago, citizens in Priboj, Prijepolje and Tutin and (although less frequently) confirm improvements. On the other side, great majority in Sjenica and Nova Varos perceives no difference.

Key findings SOCIO – DEMOGRAPHICAL ANALYSIS

ü Citizens low educated, retired, unemployed or with low monthly income tend to generalize their social dissatisfaction on almost each issue - municipality in general, local government, municipality services. ü Women seem to be less satisfied with financial situation than men and which is maybe because of their social role in a predominantly patriarchal oriented area. ü Students are critical but also optimistic, probably because they are young and expect changes.

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Socio-Economic Analysis of the Municipality Prijepolje

COMPARISON BETWEEN MUNICIPALITIES I Socio-economical context

ü Citizens of South West Serbia mostly perceive their financial situation as bearable and not changed recently. ü Except in Tutin, citizens perceive no recent social and economical development of their municipality. ü In Tutin (especially) and Priboj cit izens tend to express positive general opinion towards municipality officials and local government. In all other municipalities citizens do not feel that municipality and local government take good care of them and provide services adequate to their needs.

II Municipality services

ü In Priboj, Prijepolje and Tutin citizens think that municipality offices are a good citizen’s service. In Nova Varos and Novi Pazar opinion is more divided, while in Sjenica there is more indifference, reflected through the hi gher frequency of non -answers. ü For the citizens of West Serbia, the most important are the professional, fast and efficient service.

III Last visit to the Municipality

ü Citizens are generally satisfied with service, especially in Priboj where more than 9 0% of citizens express satisfaction. ü Talking about informal ways situation in Priboj is incomparably the most positive, while in Nova Varos and Tutin majority asked for some extra help. ü Dissatisfaction with almost all specific aspects of the service is hig hest in Nova Varos. ü Dissatisfaction is generally on a very low level in Priboj and Prijepolje. ü Main sources of dissatisfaction for citizens of all municipalities are usually paperwork, walking from door to door, complicated procedure and sometimes not enou gh competent staff (Nova Varos and Novi Pazar). ü The biggest improvement in quality of the service is perceived in Priboj, Tutin and Prijepolje, citizens of Sjenica and Nova Varos mostly do not feel any changes. In Novi Pazar improvements are perceived, bu t not as much as in other municipalities.

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Socio-Economic Analysis of the Municipality Prijepolje

CONCLUSION

The Citizen Satisfaction Survey results reflect personal, socio -economical influences and experience with the Municipality services. We found significant correlations with income, education, employm ent, and age, as well as differences between certain municipalities. These data indicate that more attention is to be paid to the more socially or economically sensitive categories (low educated, retired, unemployed or with low monthly income).

Most frequently living in a bearable financial situation and seeing no recent improvements in financial status describes the personal situation for majority in most municipalities, except in Sjenica and Tutin. All municipalities (except Tutin), are described as unde veloped, without social and economical development compared to 2006.

Quality of the service is especially highly evaluated in Priboj, Prijepolje and Tutin. In Nova Varos and Novi Pazar, opinion is strongly divided, while in Sjenica there is more indiffere nce, reflected through the higher frequency of non -answers.

Professional, fast and efficient service, simple procedures are the most important aspects in all municipalities. Dissatisfaction with most aspects of the service is highest in Nova Varos. On th e other side, dissatisfaction is generally low in Priboj and Prijepolje.

Evaluations of the quality of service are additionally supported by the finding that citizens in Priboj, Prijepolje and Tutin confirm improvements. On the other side, great majority in Sjenica and Nova Varos perceives no difference.

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Socio-Economic Analysis of the Municipality Prijepolje

HUMAN RESOURCES AND LABOR MARKET

Employability Municipality of Prijepolje was Employed in the Municipality Prijepolje struck by economic crises in the 10.000 8.616 90ies in the same way as most of 9.000 8.100 9.460 9.150 7.617 7.944 7.965 municipalities in the Republic of 8.000 Serbia. Fall of economic activities 7.000 due to market losses had bad 6.000 impact on large economy systems 5.000 such as: „Ljubiša Miodragovic“, 4.000 „Iris“, „Jasen Brodarevo“, „Soko- 3.000 2.000 lica“, „Limka“, and „FAP forgery”. 1.000 These systems employed over 0 5.000 workers, before all in work- 1999 2000 2001 2002 2003 2004 2005 intensive sectors of processing industry (textile and footwear). After Source: National Agency for Statistics –Municipalities in Serbia social changes in 2000 the trend of redundancy continued as a result of reconstruction processes and privatization of the mentioned systems.

Employability – Structure

Number of employed No. of employed per 1000 inhabitants Year Social Private Industry and Total Women (%) Total All sector sector sector mining 1999 9.460 43,8 8.762 698 200 186 104 2000 9.150 46,1 8.466 684 194 179 103

Employed Employed in compa- Persons No. of employed per 1000 inhabitants nies, institutions, Employed in companies, Year Women self- Total cooperatives and Total institutions, cooperatives (%) employed other organizations and other organizations 2001 8.616 46,3 7.936 680 182 168 2002 8.100 46,2 7.420 680 197 180 2003 7.617 47,2 6.936 681 185 169 2004 7.944 47,5 6.474 1.470 195 159 2005 7.965 45,7 6.337 1.628 197 157 Source: National Agency for Statistics – Municipalities in Serbia

20,44%

Number of persons that are self -employed is increas- ing after the year 2003. That is a consequence of restrictive application of the Labor Law and introduction of the VAT. Obvious number of negative 79,56% trend of the number of employed within enterprises is Employed in companies, institutions, neutralized by an increase of self-employed persons cooperatives and other organizations Persons self-employed

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Socio-Economic Analysis of the Municipality Prijepolje

Employment per sector of Economy 1

n and Year Total Trade Crafts fishery mining culture tourism Forestry activities Traffic and Health and Industry & Residential and utilities Catering and communities Agriculture & Water system Constructing Welfare work Financial and organizations other services communication Educatio Social political 1999 9.460 4.892 136 280 - 730 454 383 130 71 125 46 680 584 252 2000 9.150 4.847 98 282 - 530 434 388 127 66 133 44 672 595 250

,

with ystem and Year estates State Total broker stones repairs renting ducation industry Ores and Financial forestry & E Hotels and Health and excavation Processing restaurants Trade small Agriculture, Constructing real Production of Welfare work Fishing trade gas and water water s administration, Business Other utilities, social services electrical power, Traffic, storage social insurance communication and large scale, 2001 7.936 390 - - 4.624 188 282 380 106 428 77 19 194 633 593 23 2002 7.420 375 - - 4.152 182 298 331 110 412 78 18 189 646 603 23 2003 6.936 274 - - 3.902 183 286 318 100 320 70 20 196 656 588 24 2004 6.474 304 - 1 2.958 191 324 625 99 318 70 33 202 693 622 31 2005 6.337 303 - 1 2.801 180 348 613 96 302 71 34 213 704 639 33 Source: National Agency for Statistics – Municipalities in Serbia

Employment per sectors of economy, 1999 Employment per sectors of economy, 2005 50,00 44,19 60,00 51,71 50,00 40,00

40,00 30,00 30,00 20,00 20,00 9,67 11,11 10,08 7,72 7,19 10,00 4,78 5,49 4,76 6,17 %, percentages 2,84 3,36 %, percentages 10,00 4,80 4,05 1,51 1,12 1,44 2,96 1,37 0,75 1,32 0,49 2,66 0,02 0,54 0,52 0,00 0,00

Trade Crafts Forestry Education Constructing Constructing Financial broker Industry & mining Processing industry Agriculture & fishery Catering and tourism Education and culture Hotels and restaurants Health and Welfare work Health and Welfare work Traffic and communication Ores and stones excavation Financial and other services Other utilities, social services Residential and utilities activities Agriculture, forestry & water system Traffic, storage andBusiness communication with real estates, renting Trade small and large scale, repairs State administration, social insurance Social political communities organizations Production of electrical power, gas and water

1 Submitted data for the period 2001 – 2005 refers to the unemployed in enterprises, coopereratives, instituions and organisations and small enterprises (up to 50 employed)

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Socio-Economic Analysis of the Municipality Prijepolje

Sectoral analysis of the economy clearly shows that the largest number of employed are in the sector of processing industry, that is a consequence of a tradition in textile and textile products manufacturing. Trade, as a sector with largest number of active enterprises and sole trades has small share in the number of employed, total 9,67% (see the supplement on the previous page).

Unemployment

Number of unemployed registered on the labor market is constantly increasing (number of unemployed in 2005 compared to 1999 is bigger for 25%). Official unemployment rate in the year 2005 is 48% and is defined as participation of unemployed in the sum of employed and unemployed. This is one of indicators that classifies Municipality of Prijepolje into insufficientl y developed areas in the Republic of Serbia. This data should be taken conditionally taking into consideration the fact that certain number of unemployed is not registered, as well as, the fact that certain number of registered unemployed is work engaged .

Unemployed in the Municipality Prijepolje Growth of the number of unem- ployed is a consequence of non 8.000 activity of large systems of which 7.000 some are in the process of

6.000 7.304

7.116 privatization or bankruptcy. (Iris, 6.962

5.000 6.562 Fap livnica, Limka). On the other 5.820 5.746 4.000 5.699 hand side it is sufficient to mention 3.000 that privatized companies rapidly 2.000 decreased the number of emplo- 1.000 yed (Textile conglomerate „Ljubiša 0 Miodragovic“ from 2.700 workers 1999 2000 2001 2002 2003 2004 2005 currently employs 800). Source : National Agency for Statistics – Municipalities in Serbia Certain impetus targeted towards the growth of economy activity and the number of employed is reflected before all into two di rections: q Support of international donors programme that are implemented through provision of support for staring-up business of ones own and existing ones q Support of local institutions through programme of National Employment Service and the Fund for Development of the Republic of Serbia (in 2006 6 micro credits are approved from the Development Fund, the programme of self -employment used 111 persons)

Unemployment –Structure Out of total number of unemployed over 50% are women. It is indicative that over 80% are those first time job-seekers, while the number of unemployed without qualifications is dropping .

First time job Without Women Per 1000 Unemployment Year Total seekers qualifications inhabitants rate total % total % total % 1999 5.820 5.056 86,8 2.751 47,2 2.932 50,3 123 38,09 2000 5.746 4.872 84,8 2.755 47,9 2.883 50,2 122 38,57 2001 5.699 4.775 83,8 2.684 47,1 2.916 51,2 120 39,84 2002 6.562 5.436 83,3 2.883 44,2 3.350 51,3 158 44,76 2003 6.962 5.715 82,1 3.080 44,2 3.595 51,6 169 47,75 2004 7.116 5.744 80,7 2.501 35,1 3.617 50,8 175 47,25 2005 7.304 5.892 80,7 2.864 39,2 3.727 51,0 181 47,84 Source: National Agency for Statistics – Municipalities in Serbia

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Socio-Economic Analysis of the Municipality Prijepolje

Age structure of unemployed, 2005.

Age Total % Women % 13,14% 0,14% 20,82% Up to 18 Up to 18 10 0,14 8 0,20 19 - 25 19 – 25 1.521 20,82 718 17,99 26 - 30 31 - 40 26 – 30 1.076 14,73 625 15,66 41 - 50 14,73% 31 – 40 2.124 29,08 1.258 31,51 22,08% Over 50 29,08% 41 – 50 1.613 22,08 973 24,37

Over 50 960 13,14 418 10,47 Source: National Employment Service Total 7.304 -- 3.992 -

According to the age structure of unemployed most numerous category are those age 31-40; that participate in total number of unemployed with 29,08%. Participation of „young“ category up to 30 is 36%, that clearly indicates to the problem of employment of young human resources.

Qualification structure of unemployed, 2005. 4.500 4.000 3.500

3.000 4.125 2.500

2.000 2.832 1.500 1.000 500 204 143 0 Unqualified Secondary school Post secondary University educated school educated educated Source: National Employment Service According to qualification structure largest number of unemployed are those with completed secondary vocational schools (56,48%) then follows the non-qualified category (38,77%). Such structure clearly indicates to the need of CVT and raising the level of qualifications of unemployed through programme of formal and informal education . 1,96% 2,79% 38,77% Unqualified

Secondary school educated Post secondary school educated 56,48% University educated

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Socio-Economic Analysis of the Municipality Prijepolje

Economy

Economy of the Municipality Prijepolje is characterized with activities in processing industry (textile industry) as well as agriculture and food processing industry.

National Income and Social Product

National income National income per capita Social product Social product per capita Index Index Year Level Level In thousands (compared In thousands (compared In Dinars (R Serbia In Dinars (R Serbia of Dinars to the year of Dinars to the year = 100) = 100) before) before) 1999 422.799 160,8 8.958 55,3 513.891 - 10.888 55,3 2000 834.593 197,4 17.682 49,8 953.264 185,5 20.196 49,4 2001 1.244.327 149,1 26.307 45,6 1.477.071 154,9 31.228 43,2 2002 1.051.908 84,5 25.532 33,4 1.320.652 89,4 32.055 33,4 2003 1.824.078 173,4 44.336 50,2 2.133.467 161,5 51.856 49,0 2004 1.707.310 93,6 41.928 35,2 1.990.380 93,3 48.880 35,9 2005 1.946.046 114,0 48.124 39,0 2.252.559 113,2 55.704 38,7 Source: National Agency for Statistics –Municipalities in Serbia National income per capita in 2005 is 48.124 Dinars that represents 59% of the level of generated income in the District of Zlatibor. Along with stagnation during 2002 and 2004 national income shows nominal increase in the period 1999 – 2005. National income per capita (in Dinars)

60.000

50.000

40.000 48.124

30.000 44.336 41.928

20.000 8.958 26.307 10.000 25.532 17.682 0 1999 2000 2001 2002 2003 2004 2005 If we see the national income per capita as related to the Republic of Serbia, then constan t fall is noticed, that in the year 2005 was 39% of national income in Serbia. That implies to insufficient economic development of the Municipality Prijepolje. National income compared to Republic of Serbia 60,0 55,3 49,8 50,2 50,0 45,6 39,0 40,0 33,4 35,2

30,0

20,0 %, percentages 10,0

0,0 1999 2000 2001 2002 2003 2004 2005

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Socio-Economic Analysis of the Municipality Prijepolje

National income per ownership structure In thousands of Dinars Private ownership Social Cooperative State Year Total Joined ownership farms and ownership ownership total enterprise sole trades 1999 422.799 203.027 169.739 65.876 103.863 4.800 39.211 6.022 2000 834.593 347.048 353.828 128.183 225.645 10.835 107.362 15.520 2001 1.244.327 501.635 593.655 130.278 463.377 17.700 89.445 41.829 2002 1.051.908 80.506 581.098 147.945 433.153 21.818 223.081 145.405 2003 1.824.078 481.270 912.790 252.467 660.323 17.770 273.076 139.172 2004 1.355.552 187.226 431.053 107.166 323.887 6.975 662.720 67.578 2005 1.946.046 204.981 1.352.350 535.873 816.477 - 148.498 240.217 Source: National Agency for Statistics –Municipalities in Serbia Participation of private property in total generated national income at the beginning of the surveyed period was 40,15 % while in 2005 it was 69,49 %. It is quite reasonable that social ownership drops due to the process of privatization after social -economic changes in 2000. National income per property types

80,00 70,00 69,49 60,00

50,00 48,02 40,00 40,15 30,00 20,00 12,34 %, percentages 10,53 9,27 10,00 7,63 1,14 1,42 0,00 0,00 Social Private Cooperative Joined State ownership ownership ownership ownership

1999 2005

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Socio-Economic Analysis of the Municipality Prijepolje

National Income per Sector of activity in thousands of Dinars

-

l and ci ade ther Year Total other Tr Crafts O cation fishery tourism services minining Forrestry activities communi Education Industry & Traffic and Health and Residential and culture and utilities organizations Catering and Finan social welfae Social political Agriculture & Watersystem Constructing commmunities 1999 422.799 170.999 85.512 - - 21.603 22.786 59.608 9.346 ------52.945 2000 834.593 263.756 192.836 - - 41.774 57.467 118.710 21.001 ------139.049 2001 1.244.327 444.749 401.607 - - 21.723 82.713 164.995 14.148 ------114.392

,

and Year Total and water ocessing repairs renting services industry forrestry & ade small and Hotels and Health and excavation Pr large scale, restaurants Agriculture Constructing real estates, and perosnal watersystem social welfae Fishing trade Production of gas Business with communication Other communal Traffic, strorage Ores and stones electrical power, Trg 2002 1.051.908 478.494 - - 2.238 46.401 143.831 229.420 27.753 92.859 19.252 - 11.660 2003 1.824.078 488.857 - 9 356.811 46.663 168.472 542.232 79.775 114.073 12.928 - 14.258 2004 1.707.310 511.729 - 260 233.207 66.721 190.487 459.003 61.769 146.602 19.398 - 18.134 2005 1.946.046 570.341 - - 280.483 54.038 222.593 542.493 66.953 176.045 10.219 - 22.881 Source: National Agency for Statistics –Municipalities in Serbia

National income per sectors, 1999 National income per sectors, 2005 50,00 40,00 40,44 29,31 27,88 40,00 30,00 20,00 14,41 30,00 11,44 20,23 9,05 10,00 3,44 20,00 14,10 12,52 2,78 0,53 1,18 %, percentages 0,00 %, percentages 10,00 5,11 5,39 2,21 0,00 Constructing Trade Other Processing industry Hotels and restaurants Constructing Industry & mininingAgriculture & fishery Catering and tourism Agriculture, forrestry & watersystem Trade small and largeTraffic, scale, stroragerepairsBusiness and communication with real estates, renting Traffic and communi•cation Production of electrical power, gas an... Other communal and perosnal services

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Socio-Economic Analysis of the Municipality Prijepolje

The sector of agriculture has largest share in generation national income (29%). That is before all outcome of the fall of participation of processing industry in generation of national income. Private property has substantial participation in generation o f a national income of over 69% due to the implemented privatization processes over large social systems .

Economic exchange with abroad

Based on the data of the Re- Import and export (in thousands of Dollars) gional Chamber of Commer- 12.000 10.861 ce in Užice, trade exchange 9.387 with abroad in the Muni- 10.000 9.938 cipality Prijepolje shows pos- 8.000 itive tendency despite the 6.315 5.821 6.016 5.035 high deficit. It is encouraging 6.000 4.338 that the value of export in 4.000 4.364 4.247 the period from1999 to 2005 2.000 3.487 2.434 2.565 increased for 2,5 times, while 1.704 the deficit expressed in the 0 year 1999 in the amount of 1999 2000 2001 2002 2003 2004 2005 2006 USA $ 3.331.000 fell to USA Uvoz Izvoz $ 1.769.000, and accordingly in the year 2006 it recorded Source: Regional Chamber of Economy surplus of USA $ 923.000.

Import by countries, 2003 Export by countries, 2003

3,83% 5,09% Germany Italy Germany 16,14% 11,80% Turkey 5,38% Italy 16,87% 13,42% Bosnia and Hercegovina 38,66% Bosnia and Hercegovina France France Spain 5,27% Macedonia 18,33% Greece 11,25% Other coountries 12,40% Ecuador 10,00% Netherland 24,31% Other coountries 4,03% 3,22% Source: Regional Chamber of Economy Import per countries: key foreign trade partners of the Municipality of Prijepolje in the year 2003 were: Ecuador (18,33%), Italy (13,42%), B&H (12,40%) and Germany (11,80%). In the year 2006 these were: Montenegro (22,30%), Germany (19,13%), B&H (18,50%) and Italy (13,96%). Export partners in the year 2003: before all Germany (38,66%), Italy (24,31%) and France (16,87%), in the year 2006: Montenegro (59,03%), Germany (25,03%) and B&H (11,05%).

Import by countries, 2006 Export by countries, 2006

6,80% 1,54%1,74% 2,86% Germany 4,82% EU Germany 19,13% Italy 25,03% Bugarska 1,58% Switzerland Bosnia and Hercegovina France Turkey 22,30% 1,01% 13,96% Bosnia and Hercegovina Montenegro Montenegro 59,03% 11,05% Macedonia Turkey Other coountries 8,59% 18,50% 1,46% China 0,60% Other coountries

Source: Regional Chamber of Economy

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Socio-Economic Analysis of the Municipality Prijepolje

At the level of the District of Zlatibor in the year 2006 surplus was generated in the business with abroad in the amount of USA $ 39.640.000 and that accounts for the coverage of the export with import of 111%. Municipality Užice participates with 70% in total foreign trade exchange, while municipality of Prijepolje is one of 5 municipalities that generated surplus. Per sectors, 63,52% of import in the district is generated through the sector of metal manufacturing and metal products, 5,55% through textile and textile goods, 5,98% through production of food and 4,89% is sale and repair of vehicles. In the year total import of 63,6% in the District was achieved through production of metal and metal products, sale and vehicles repair, production of textile and textile products and the production of rubber and plastic.

Economy Entities

Enterprises According to the data of the National Bank of Serbia at the end of the year 2005 there were 230 active enterprises in the Municipality of Prijepolje.

Survey of number of enterprises by size

3,48% 1,30%

Over 95 % of enterprises are Small enterprise (219) small, then comes medium and large enterprises with 3,5 % Medium enterprise (8) and 1,3 % respectively. Large enterprise (3)

95,22%

Source: National Bank of Serbia

Survey of the number of enterprises by ownership structure 6,09% 1,74% 2,61% Social ownership (14) According to ownership structure of the enterprises, Mixed ownership (6) almost 90% of enterprises are Private ownership (206) in private ownership (certain number of enterprises is still n Cooperative ownership (4) the process of privatization). 89,57% Source: National Bank of Serbia

Survey of the number of enterprises by forms of organizing A limited join Most dominant form of 11,30% 48,70% company (112) 36,96% organizing is limited liability A joint stock company that accounts for company (7) 48,70%, then comes part- A partnership (85) nership companies with 36,96%. Other forms (26) 3,04% Source: National Bank of Serbia

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Socio-Economic Analysis of the Municipality Prijepolje

Survey of the number of enterprises by sector of activity

8,70% 3,48% 3,04% 25,65% Agriculture, forestry & water system (8) 9,13% Manufacturing (59) Construction (7) Wholesale and retail trade, repair (108) Transport, storage and communications (21) 3,04% Real estate, renting activities (7) 46,96% Other sectors (20) Source: National Bank of Serbia By percentage largest participation in the economy sectors has trade with 47% of total number of active enterprises, then comes processing industry with 25,65%, traffic, storage and communication with 9,13%.

Survey of the enterprises in sector of processing industry

Food products, beverages and tobacco products (9) Textile and textile products (13) 22,03% 15,25%

Manufacture of wood and products of wood (14) Paper and paper products, publishing and printing (5) 8,47% Basic metals and metal products (5) 22,03% 8,47% 23,73% Other (13) Source: National Bank of Serbia Most dominant sub sectors within processing industry are wood processing (23,73%), production of textile and textile products (22,03%) and food processing with 15,25%.

Sole Trades According to the data of the National Bank of Serbia in the Municipality of Prijepolje there is 1.729 sole trades.

Survey of the number of sole trades per sectors of activity

Agriculture, forestry & water system (19) 8,16% 1,10% 6,13% 3,24% Manufacturing (106) Wholesale and retail trade, repair (719) Hotels and restaurants (198) 28,34% Transport, storage and communications (490)

41,58% Construction (56) 11,45% Other sectors (141)

Source: National Bank of Serbia The same as on national level of the Republic of Serbia, biggest participation per sectors have sole trades in the trade (41,58%), transportation (28,34%), catering premises (11,45%) and the sector of processing industry with 6,13%.

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Socio-Economic Analysis of the Municipality Prijepolje

Survey of the number of sole trades in the sector of p rocessing industry

30,19% 32,08% Food products, beverages and tobacco products (32) Textile and textile products (24) Manufacture of wood and products of wood (16) Other (34) 15,09% 22,64% Source: National Bank o f Serbia Within the processing sector, largest number of sole trades is from food sub sector (32), then comes cloth manufacturing (24 sole trades) that is above the fifth of the total number of sole trades in processing industry.

Large Economy Systems The pillar of the economy development of the Municipality Prijepolje, was, before all, sector of textile industry (TK „Ljubiša Miodragovic“, „Jasen-Brodarevo“ and „Iris“) that employed over 5.000 workers. Since the year 2000 when the process of privatization started according the model of auction, except the textile conglomerate „Ljubiša Miodragovic“ that was privatized in tender and employees 800 workers today. This enterprise continued the tradition of th e production of yarn (cotton, and cotton- synthetic), fabric and garments. Enterprises „Iris“ and „Jasen“ that used to employ over 2.000 workers are not still in the procedure of privatization .

In the process of privatization Privatized ( sale (model of privatization ) model ) tender auction Restructuring tender auction - 5 - 1 4 Source: Agency for Privatization Survey of enterprises in the procedure of privatization

Method of Enterprise Activity privatization Social co. „Zavod za urbanizam i projekto vanje“/ Agency for Urbanism Spatial Planning Auction and Designing JIP „Polimlje“ Publishing newspapers Auction Trade company „Ineks Sokolica“ Other small scale trade Auction Other constructing and “RAD Labud“ * Auction specialized works Social compan y for bread and fine bakery production, small and large Production of bread and Auction scale trade „Trgopek“ * fine bakery Transportation of Social company for passenger transportation „Polimljetrans“ * Auction passengers, road traffic Company in social ownership for primar and final wood processing Production of timber Auction „Javor“ * Production of other ready - Social company industry of ready -made cloths, button and cuffs „Iris“ Auction made cloths Textile conglomerate „Ljubiša Miodragovic“, social company in Cotton yarn production Tender restructuring * Sale of spare parts, Auto-kuca „Prijepolje“ accessories for motor Auction vehicles Production of leather Bankruptcy „Limka“ footwear (Liquidation) * sold companies (privatized) Source: Agency for Privatization

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Socio-Economic Analysis of the Municipality Prijepolje

Footwear company „Limka“, once respectable partner on international market, after mortgage after which 600 workers stayed without job , is divided into two new enterprises (PVC carpentry, footwear and textile). Process of production has not started yet. FAP Foundry part of the system FAP Priboj is in the process of privatization in the tender procedure. This company spreads on 6.000 m2 of production space and manufactures car- components, special upgrading, casts and connections for agriculture machines.

Small and Medium Enterprises In the Municipality Prijepolje there is 260 active small and medium enterprises in private ownership (January 2006). Thus, sector of small and medium enterprises in private ownership accounts for 90% of all enterprises in the municipality. Small enterprises account for 98% of the enterprises in the sector of small and medium enterprises i.e. 87% of total number of enterprises. Taking into consideration the flow of gross-domestic product in the Municipality Prijepolje, it is clear that institutional support to the sector of small and medium enterprises represents, before all, factor of success and living standard growth of all inhabitants of the municipalities . On the other hand side, successful implementation of the privatization process can provide develop- ment of destroyed economy systems and provision of the initial input for new employment. Private enterprises in the territory of the Municipality Prijepolje are of average age of operation 10-15 with simple organizational structure: owner is at the same time manager. Largest number of them are active on domestic market and are limited liabilities companies. Then comes partnership companies that account for 36% in all forms of organization. Based on implemented poll within the focus group largest problems are lacks of financial assets, skilled labor force, as well as, lack of managerial staff. The needs are also expressed for providing non-financial services that reflect in labor market survey and analysis, business linkages and marketing support for the new products. Largest number of small and medium enterprises are in the sector of trade (103) and processing industry (50), that accounts for 74% of total number of enterprises. List of Important Private Companies

Enterprise Sector of Activity Number of employed Production of bread and fine AD „Trgopek“ Prijepolje 50 bakery AD „Rad-Labud“ Prijepolje Constructing 81 Production of wood and small DO „Produkt-promet“ Prijepolje 23 and large scale trade OD „Es-komerc“ Prijepolje Small and large scale trade 39 PP „Stileks“ Prijepolje Production of textile products 57 Production of biscuits small and DOO „Catic kompani“ Prijepolje 21 large scale trade „Vocar-lutka“ Prijepolje Production and trade 115 DOO „JUS“ Prijepolje Production of metal products 23 DOO „Mušovic“ Prijepolje Production of furniture 11 Trade and buying -off forests OD „Dado“ Prijepolje 5 plants and raspberries ZTR „Omorika“ Prijepolje Wood processing 9 PGP „Beton“ Prijepolje Constructing activities 11 Source: Local self-government

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Socio-Economic Analysis of the Municipality Prijepolje

Level of entrepreneurs integration is very low. Associations, exist, before all in agriculture production. The only association of entrepreneurs that exists is General Association of Entrepreneurs. The fact is encouraging that in the beginning of 2007 in Prijepolje started an operation sub-centre of Regional Agency for SME development from Uzice . Sub-centre offers different services to small and medium enterprises of which most important are: business information, trainings, support in making business plans and business linkages .

Financial Institutions

Banks Insurance companies Domestic Foreign Komercijalna banka ProCredit bank Dunav osiguranje Metals banka Societe Generale DDOR Novi Sad Alfa bank Takovo Kragujevac Meridijan bank Banca Intesa EFG bank Vojvodanska banka

Source: Local self-government In the Municipality Prijepolje there are 2 domestic bank branch -offices and 7 foreign banks as well as 3 insurance companies. Average number of branch-offices per 10.000 inhabitants is satisfying 2,2 branch-offices. Such image in the sector of financial institutions I largely destroyed by unfavorable credit lines for starting up new business and development of existing.

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Socio-Economic Analysis of the Municipality Prijepolje

Agriculture

In the area of Prijepolje on the small space are intervened inseparable influences of nature and history. The area abounds with diverse landscapes : from peaceful valleys of the River Lim (Bro- darevska, Veliko-Zupska, Ivanjska and Prijepoljsko-Zaluška), thick forests (Zlatar, Jadovnik, Ka- mena gora, Lisa, Pobijenik and Ozren), mountainous pastures (Kamena gora, Jabuka, Babina, Vrbova, Stranjani, Aljinovici, Pravoševo and others) up to wonderful canyons (Mileševka, Lim and Dubocica) and famous waterfalls of Sopotnica. In this area agriculture land covers 38.205 ha and represents very important natural resource. It is most fertile in the valley of Lim and its tributaries .

Resources

Farming area Areas by categories of land exploitation, social and private agricultural holdings

44,28% 23,17% Land and gardens Orchards

4,44% Meadows Pastures 28,10% in ha Arable land and kitchen gard ens

Of that

land ponds total Agrarian Pastures Fish, cane Orchards Meadows Vineyards crops plants Cereal fodder Industrial vegetables 38.205 8.853 1.823 - 1.354 2.853 1.697 - 10.736 16.919 - Source: National Agency for Statistics–Municipalities in Serbia Meadows and pastures account for 66,46% farming land while arable land and kitchen- gardens cover 28,15 %. Areas by categories of land exploitation, private agricultural holdings 33,64% 28,15% Land and gardens Orchards Meadows 32,82% 5,38% Pastures in ha Arable land and kitchen gardens

Of that

land ponds total Agrarian Pastures Fish, cane Orchards Meadows Vineyards crops plants Cereal fodder Industrial vegetables 31.326 8.819 1.807 - 1.348 2.571 1.686 - 10.282 10.539 - Source: National Agency for Statistics–Municipalities in Serbia

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Socio-Economic Analysis of the Municipality Prijepolje

Challenges that the Agrarian sector is faced within the Municipality Prijepolje , is before all, low level of competitiveness and knowledge of farmers as well as fragmentized land, low level of association aimed at offer standardization.

Farming households Number of farming households in the year 2005 was 1.687; in the first quarter of the year 2007 that number was 2.868. Registration of farming households that Is above average in the Municipality of Prijepolje is a result of logistic support of local self -government including registration facilitation. Key aim of the registration of farming hou seholds is, at one hand side, possibility of application for short-term credits before the Ministry of Agriculture, Forestry and Water Management, and the other possibility of receiving financial support for non - commercial farming households.

Farming population

Farming Supported farming Active farming population population population Individual farmers total women total women total women total women 3.283 1.692 2.331 1.157 2.225 1.142 952 535 Source: National Agency for Statistics – Municipalities in Serbia 29,00% Active agrarian population

Supported agrarian population 71,00% According to last census of the population farmers account for 8% of the total number of inhabitants of the Municipality. Out of that number female population accounts for 51,5%. Active population in the structure of total farming population makes 71% of whom over 95,4% are individual farmers.

Services for Farmers Services for farmers are provided within : q Agency for agriculture „Moravica“ from Užice, that offers different counseling services q Public vet station „Priboj“ – branch-office Prijepolje that provides medical vet services on the terrain (curative and prevention, surgical interventions during deliveries, implementation of hygienic measures including among other disinfections) q Beside mentioned institutions in the Municipality of Prijepolje there is several different associations well-organized that offer different services to their members.

Association Location Activity No. of members Centre for Sustainable Development Village tourism and Sopotnica 17 „Sopotnica“ agriculture Association of Fruiters „Polimlje“ Brodarevo Fruit-growing 34 Agriculture cooperative „Agropolimlje“ Seljane Agriculture 11 Association of vegetable -growers „Bravo“ Seljašnica Vegetable growing 62 Association of Fruiters „Delišes“ Velika Župa Fruit growing 17 Association of farmers „Aljinovici“ Aljinovici Agriculture 11 Source: Municipal department for economy

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Socio-Economic Analysis of the Municipality Prijepolje

Agriculture Production

Crop farming – production of wheat and corn

Wheat Corn Total yield, tons average, kg Total yield, tons average, kg

Year

total total Social Social Social Social Private Private Private Private ownership ownership ownership ownership ownership ownership ownership ownership 1999 473 - 473 - 2.401 963 - 963 - 2.892 2000 464 - 464 - 2.481 322 - 322 - 1.000 2001 520 7 513 3.500 2.819 1.181 - 1.181 - 3.484 2002 335 4 331 2.000 2.267 1.044 - 1.044 - 3.000 2003 236 - 236 - 2.291 763 - 763 - 2.244 2004 333 70 263 4.117 2.955 1.286 - 1.286 - 3.909 2005 298 53 245 3.533 2.753 1.041 - 1.041 - 2.668 Source: National Agency for Statistics – Municipalities in Serbia Production of wheat Production of corn 600 1400 1.286 520 1.181 500 473 464 1200 963 1.044 1.041 1000 400 335 333 298 800 300 763 tons tons 600 200 236 400 322 100 200

0 0 1999 2000 2001 2002 2003 2004 2005 1999 2000 2001 2002 2003 2004 2005 Vegetable growing is under 5% of total farming land. Data indicates that average yields are very poor due to insufficient use of agro-technical measures and mechanization.

Vegetable growing – production of kitchen vegetables

Beans 1) Potato 1) Year yield yield total in tons kg per ha total in tons kg per ha 1999 85 1.613 5.124 5.033 2000 32 467 7.254 7.154 2001 105 1.813 10.089 10.380 2002 73 1.394 8.614 9.363 2003 73 1.029 7.268 8.511 2004 73 1.000 8.712 9.734 2005 72 1.000 7.101 7.970

1) Included production of clear crop and intercrops, while an average yield for clear crops Source: National Agency for Statistics – Municipalities in Serbia Total yield of beans Total yield of potatoes 2.000 12.000 1.800 1.813 10.380 1.613 9.734 1.600 10.000 9.363 1.394 1.400 7.154 7.970 8.000 1.200 1.029 1.000 1.000 8.511 1.000 6.000 5.033 800 kg per ha 600 kg per ha 4.000 467 400 2.000 200 0 0 1999 2000 2001 2002 2003 2004 2005 1999 2000 2001 2002 2003 2004 2005

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Socio-Economic Analysis of the Municipality Prijepolje

Prijepolje area due to land characteristics has all potentials for vegetable growing, before all potatoes. Potato is extensively grown and average yields are up to 10.000 kg/ha and they depend on the natural conditions suitable for this culture. Average yield of potato in 2005 is under national level that is over 11.000 kg/ha.

Fruit growing – production of apples and plums

Apples Plums yield Yield Year Number of Number of total total trees Per tree kg trees Per tree kg tons tons 1999 44.380 344 78 195.800 626 32 2000 40.300 329 82 172.300 1.140 66 2001 44.800 268 60 170.300 339 20 2002 44.700 156 35 165.800 261 16 2003 48.700 729 150 157.200 2.010 128 2004 49.980 172 34 116.000 365 31 2005 48.440 830 171 156.670 1.360 87 Source: National Agency for Statistics –Municipalities in Serbia Number of apple trees Number of plum trees 60.000 250.000 48.700 49.980 44.700 48.440 195.800 50.000 44.380 44.800 200.000 40.300 170.300 40.000 157.200 156.670 150.000 172.300 165.800 30.000 100.000 20.000 116.000

10.000 50.000

0 0 1999 2000 2001 2002 2003 2004 2005 1999 2000 2001 2002 2003 2004 2005 If we neglect evidently poor percentage of apple yield per tree, we clearly noticed the increase of the number of trees. Fruit growing records growth in the number of tree s as a result of international donors programme support. FAO -UN programme was aimed at enhancement fruit growing and distributed over 315.000 seedlings of apples on the territory of the Districts of Zlatibor and Raška; this programme supported associations and delivered trainings for the farmers, and assisted establishment of connection with processing sector. Beside theses programme, local self-government also have individual programme of exemptions and befits for procurement of the fruit seedlings . Within that programme 420.000 seedlings of raspberry are disbursed with accompanying equipment on the territory of both districts . The raspberry growing in the territory of the Municipality Prijepolje is intensified year after year as objectively „imposed” way of income generation due to bankruptcy of the large economy systems. The estimations are that over 60 ha are under raspberries and annual yield (2007) is over 500.000 kg.

Cattle Breeding

Cattle Pigs Sheep Poultry Year of which: of which: of which: total cows and total sows and total sheep for total heifers in pig sows accretion 1999 13.708 11.220 603 - 16.061 12.722 44.067 2000 12.945 10.738 493 - 14.504 11.970 39.496 2001 12.805 11.000 535 - 13.878 11.343 38.835 2002 12.789 10.973 523 50 14.256 11.515 38.554 2003 9.964 7.415 642 90 11.712 8.035 28.577 2004 9.409 7.423 435 63 11.737 8.203 31.728 2005 9.755 7.331 552 69 11.616 7.189 26.752 Source: National Agency for Statistics –Municipalities in Serbia

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Socio-Economic Analysis of the Municipality Prijepolje

Municipality Prijepolje has big potentials for cattle growing, due to natural resources, i.e. pastures and meadows, as well as, due to long cattle -breeding tradition. Total number of cattle Total number of pigs 16.000 700 642 14.000 13.708 12.945 603 12.805 12.789 600 552 535 523 12.000 493 9.964 500 435 10.000 9.409 9.755 400 8.000 300 6.000 200 4.000 2.000 100 0 0 1999 2000 2001 2002 2003 2004 2005 1999 2000 2001 2002 2003 2004 2005 Positive movements are reflected in sheep-breeding with the tendency of grouping animal fund into farms, in order to raise low ac cumulation of the sector. Bovine – breeding is also characterized by extensive breeding: majority of households has 1 - 2 cows with an exception of several farms with over 10 cows within their premises. Milk is mostly processed into cheese and distributed out of the district due to the possibility of generation larger profit compared to classic milk sale . Total number of sheep Total number of poultry 18.000 50.000 16.061 44.067 16.000 14.504 45.000 14.256 39.496 38.835 14.000 13.878 40.000 38.554 11.712 11.737 11.616 31.728 12.000 35.000 30.000 28.577 26.752 10.000 25.000 8.000 20.000 6.000 15.000 4.000 10.000 2.000 5.000 0 0 1999 2000 2001 2002 2003 2004 2005 1999 2000 2001 2002 2003 2004 2005 Poultry is grown organized: there are 7 farms with over 3.000 pieces.

Processing Capacities In the sector of food industry main products of processin g capacities are: q Milk and milk products In the Municipality of Prijepolje there is one private dairy that annually processes 1.100.000 liters while an average daily buy-off is ~ 3.000 l. Reason for the small milk buy- off is beside increased capacities the fact that majority of individual farming households process milk by themselves, making cheese and selling it, thus generating larger income from classic milk sale. Level of capacity use is 30%. q Meat and cured meats There are two private slaughter house s with the capacity of 10 large cattle daily; degree of used capacities is 30%. Precisely, slaughter houses work when needed (per order and for owns’ needs). It is clear that the sector of meat processing has surplus of capacity, that from one hand side stems from small cattle fund, and on the other side it is influenced by the lack of certified slaughter houses. q Bakery products Despite the existence of 5 bakeries in the Municipality of Prijepolje, larger capacities only has privatized AD Trgopek. This bakery over 80% of the products launches on the territory of the municipality.

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Socio-Economic Analysis of the Municipality Prijepolje

Infrastructure

Road and Railroad Network Out of total road network in the municipality that is 441 km long, 17.23% are highways, 58.9% regional roads and local 76.88%. As for the state of highway it is excellent (asphalted in total length); as for the regional roads another 10 km must be asphalt coated . 1/3 of the local roads are made as modern roads, that is satisfying data compared to the state of the local roads in the vicinity. in km

Total Modern Highways Regional Local roads total Modern roads total Modern roads total Modern roads 441 215 76 76 26 18 339 121 Source: National Agency for Statistics –Municipalities in Serbia Road net connects all settlements on the territor y of the Municipality of Prijepolje. Total length of railroad net in the municipality is 415 km and is electrified in all length.

Water supply and Waste Management

Water system Sewage Waste quantity Coverage by Number of Coverage by Number of (t) water system hook ups sewage hooks-ups 65% 4.550 35% 2.680 18.422 Source: Poll Total length of primary water net is 74 km, and there is a need for the construction of additional 32.5 km. Primary net for water supply is reconstructed in the length of 800 m and it is necessary to reconstruct additional 10 km minimum. Total length of primary feces sewage net is 60.2 km total length of primary drainage net is 16 km. The missing length of primary sewage net is 80.1 km. Until now there was no reconstruction of primary sewage net, and it current state points to the necessity of its reconstruction in the length of 5 km . Plants for waste water treatment does not exist, and that presents a serious environmental problem. In rural areas, waste waters are dumped into water courses without any treatment or into improvised septic pits. Total waste quantity that is produced at annual level in the territory is 18.422 t: households produce 8.858 t, companies, public institutions including wastes from public areas in the amount of 9.564 t. Municipality has one unattended garbage dump. There are numerous wild garbage dumps on the whole territory of the municipality. Total area of the garbage dump is 1 ha. Modern regional garbage dump for 4 municipalities is being constructed n ow (Prijepolje, Priboj, Nova Varoš and Sjenica) that is located in the territory of Nova Varo š and is approximately equally distant from Prijepolje, Priboj and Nova Varoš respectively. With an aim to decrease pollution it is necessary, among other things, to support recycling process of the garbage and destroy waste within individual households.

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Electrification, gasification and heating Level of electrification o f the municipality is almost over 100%. There is no gas pipeline in the municipality, while the heating system with 600 hook-ups covers only 5% of the households.

Spatial Planning Municipality has no Spatial plan. In the year 2005 General Plan is made with planned horizon up to 2025. According to General Urban Plan for economy activities it is devoted total 113 ha, while the area of existing working zones is 465 ha. Area of planned working zones is 465 ha: 25 ha in the ownership of the state, 44 ha in private ownership. Approximate price of the land on the planned areas for the year 2007 is 1.700 €/ha. Apart for the territory of cadastral Municipality Prijepolje, geodesy foundations of the parts of the municipality exist.

Telecommunications Concerning phone traffic, out of 12.700 installed phone connections, 9.130 is in function. Telephone traffic is realized over 20 phone centrals. There is 5 post offices. Existing state indicates the need for further development of phone and postal traffic for the purpose of their modernization and accessibility to each household and economy entity in the municipality.

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Socio-Economic Analysis of the Municipality Prijepolje

Tourism

Municipality Prijepolje owns substantial tourist potentials. Natural and anthropogenic resources of the municipality are not enough for tourism development. Joint efforts of all stakeholders are needed including local population, along with substantial financial investments necessary for development quality tourist offer and attraction of foreign visitors.

Tourist sites Municipality Prijepolje has no locations for development spa tourism. Kamena Gora, once proclaimed air spa does not exist any more according to new categorization in tourism . Geographic position of the Municipality offers plenty of possibility for rural tourism development. Most important tourist destinations suitable for village tourism development are: Sopotnica with 24 and Kamena Gora with 26 non-categorized accommodation capacities. Village of Jabuka is good for mountainous tourism development and has a capacity of 220 pavilions. Accompanying infrastructure is mainly insufficient and there is a need for its reconstruction and modernization. Accommodation capacities are non-categorized and it is necessary to invest certain efforts and make positive move both in qualitative and quantitative sense . Beside rural tourism there are possibilities for other tourism offers: mountainous, transit, sport-recreation, etc. Enormous potential, various game (foxes, wolfs, bears, hears) offer possibility for develop- ment of hunting tourism. Rivers fish rich (Lim and smaller rivers) are very attractive sites for amateur and sort fishing. River Lim is excellent for rafting and kayak. Mountainous resources offer possibility for sport -recreational tourism, before all climbing, cycling, strolling, as well as, extreme sports as paragliding . Very important position of the municipality Prijepolje in the traffic network of the Republic of Serbia, implies to the necessity of transit tourism development . Existing capacities and contents are poor for now and big investments are necessary along with the clear politic of development in this segment of tourism. Special tourist attraction related to religious tourism represents Medieval Monastery Mileseva with famous fresco of White Angel. Beside believers, Monastery is often visited by pupils excursions. This locality is one of most precious cultural –historical resource of the municipality and definitely should be inseparable part of tourist product of the Municipality of Prijepolje. Numerous cultural- historical monuments, mountains and rivers, villages, rich tradition and folk- lore, offer limitless possibilities for tourism development and attraction of domestic and

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foreign visitors. The localities of interest are not enough for tourism development , consequ- ently it is necessary to develop accompanying contents, accommodation capacities and other infrastructure and to promote tourist offer in the proper way. There is large number of restaurants and café bars in the municipality . They are all non-categori- zed; most important are: Gradska kafana with 200 seats, Restaurant Mozaik in the city with 100 seats, Restaurant Složna braca in Gracanica (15 km from the City towards Montenegro) with 100 seats, Restaurant Mileševka near Monastery Mileševa with 60 seats, Restaurant Pingvin in Kolovrat with 150 seats and Restaurant Lovac on the road M-21 in Kolovrat with 100 seats.

Accommodation capacities Accommodation capacities in the Municipality Prijepolje are very undeveloped, and are comprised of Hotel Mileševa (category 2 stars with 104 beds), tourist settlement „Boško Buha“ on Jabuka (non categorized pavilion has capacity of 220 beds and 70 beds in Spomen dom), as well as Grbo café with lodgings in Kolovrat (also non-categorized accommodation with 28 beds, equipped with infrastructure). Hotel Mileševa and tourist settlement „Boško Buha“ on Jabuka are privatized recently, it is planned to completely reconstruct restaurant and accommodation capacities . Existing catering capacities at the bank of the River Lim are non -categorized. Beaches are non-attended without parking lots that clearly indicates to the necessity for revival and development of this important tourist potential of the municipality in future .

Realized visits

Domestic tourists Foreign tourists Year no. Average no. of Average no. of no. visits no. visits no. overnights overnights overnights overnights 1999 3.084 13.242 4,3 134 241 1,8 2000 4.201 20.778 4,9 149 223 1,5 2001 4.165 16.413 3,9 292 794 2,7 2002 3.718 17.241 4,6 216 366 1,7 2003 6.064 15.332 2,5 416 481 1,2 2004 9.010 17.502 1,9 426 606 1,4 2005 2.796 8.724 3,1 395 562 1,4 Source: National Agency for Statistics –Municipalities in Serbia Statistic data show that the largest number of registered overnights was recorded in the year 2004. The next year there was a great fall of the number of visits and overnights, especially of domestic guests. Number of foreign tourists that visit municipality is radically smaller than the number of domestic guests and has not changed in the last years . Visits of domestic tourists Visits of foreign tourists 10.000 450 426 9.010 416 395 9.000 400 8.000 350 7.000 6.064 300 292 6.000 250 5.000 4.201 4.165 3.718 3.084 200 4.000 134 149 216 3.000 150 2.000 2.796 100 1.000 50 0 0 1999 2000 2001 2002 2003 2004 2005 1999 2000 2001 2002 2003 2004 2005 Data indicates to ad hoc development of tourism without clear politics and aim with minimum financial investments and initiatives.

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Education

Preschool education

Length of daily care Number of children that Number of Number of attend institution free of Institutions children beneficiaries Up to 5 hours 9 – 11 hours over 11 hours charge 1 592 209 383 - 210 4 dislocated 622 296 326 - - classrooms Source: National Agency for Statistics – Municipalities in Serbia Annual programme of work of the institution „Miša Cvijovic“ In theMunicipality of Prijepolje there is only one institution for preschool educat ion – nursery „Miša Cvijovic“, whose services use 592 children in the municipality. Daily care is provided in duration of up to 5 or 9 till 11 hours. There are 4 dislocated premises within the nursery „Miša Cvijovic“ and 622 children are beneficiaries of them.

Capacities of preschool institutions are not sufficient to properly respond to the needs of the population in Prijepolje and villages in the municipality .

Primary Education

Dislocated Dislocated Total Primary classrooms Primary Total no. classrooms Place no. of Place School School of pupils pupils No. No. place place pupils pupils

Hrta 8 Zalug 77 Dušan Velika Župa 292 Vladimir Peric Tomaševic Cirko Kamena Gora 15 Prijepolje 1.191 Dušmanici 12 Valter Parent school 269 Kucin 2 Divci 5 Parent school 1.092 Sopotnica 4 Aljinovici 20 Boško Buha Ivanje 255 Lucice 11 Milešev Do 3 Parent school 235 Hisardžik 10 Sveti Sava Bostani 545 Zavinograde 18 Taševo 10 Komaran 33 Pravoševo 2 Mataruge 7 Parent school 500 Brajkovac 2 Mihajlo Ratajska 339 Kolovrat 890 Potok 4 Bakovic Maticna škola 551 Svetozar Gojakovici 3 Donje Babine 22 Brodarevo 581 10. oktobar Babine 27 Markovic Slatina 7 Gornje Babine 5 Donji Stranjani 2 Dislocated classroom 41 Gostun 1 Priboj Osnovna Prijepolje 155 Zastup 4 muzicka škola Dislocated classroom N. 45 Parent school 490 Varoš Jabuka 26 Parent school 69 3 Mihajlo Bakovic Seljašnica 273 Karoševine 10 Parent school 234

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In the Municipality there are 9 primary schools of which one is school of music. All schools have dislocated classrooms, total 30. Total number of pupils in primary schools is 4.209. Special problem represents transportation of children to educational institu tions in rural areas. Problem is partially solved with a van transportation that takes children to and from school on the specific routes.

Number of teaching Number of non - School staff teaching staff In 8 primary schools is Dušan Tomaševic Cirko 30 9 employed 338 teach- Boško Buha 26 11 ers and 105 workers. In rural areas there is Svetozar Markovic 58 29 no deficit of teaching Mihajlo Bakovic 36 3 staff. Vladimir Peric Valter 66 8+ couriers Sveti Sava 54 23 Mihajlo Bakovic 55 21 10. oktobar 13 5

In the Municipality exists special school with two classrooms within Primary School „Vladimir Peric Valter“. Special school attend 7 pupils and one of them completed education.

Secondary education

Total no. No. of No. School institution Place Educational profile of pupils classes pupils

Electrical Technician Power 3 86 supply Car repairer 3 34 EMTRU 3 57 EMMP 2 26

Technical school Prijepolje 622 Car body repairer 3 43 Mechanical technician for 4 117 computer designing Lath operator 2 29 Thin maker 1 11 Textile technician 3 79 Garment manufacturer 3 50 Financial administrator 3 72 Economic Technician 5 186 Cooking technician 2 61 Economics –trade school Prijepolje 481 Trade technician 1 30 Trade 2 60 Chef 1 32 Waiter 3 80 Science and Mathematics 8 238 Grammar school of Prijepolj e Prijepolje 463 Social Sciences and 8 225 languages

Apart from Grammar School of Prijepolje there are also Technical school and Economics – Trade school in the municipality. Total number of pupils in secondary schools is 1.566. Schools are situated in Prijepolje and have no dislocated classrooms in the nearby places . Within secondary education, beside Science and Mathematics and Social science and languages in the Grammar school there are 17 courses of study in Technical and Economics -

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Trade school. Most interest is expressed for Grammar school, while the most interesting courses for pupils in secondary vocational schools are Mechanical Engineering Technician and for computer designing and Economics Technician. Organization of educational profiles is every year harmonized with the identified needs of th e National Employment Service. Technical school employs 61 teacher and 20 non-teaching workers. In School of Economics the ratio teaching - non teaching staff is 41:12, and in Grammar school of Prijepolje 39 : 11. Creation of new courses demand work engagement of new teaching staff that do not exist in the municipality and there is a deficit of them .

Post secondary education There is a branch-office of the High technical studies from Cacak in Prijepolje with 16 full time professors, 20 professors–assistants and 195 students. The school is opened two years ago and there is not graduated students yet. The school establishment is licensed to work as high educational institution. Source: School Institutions in the Municipality Prijepolje

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Health and Social Welfare

Health Protection

Holder of the health protection in the Municipality Prijepolje is Heath Centre Prijepolje that comprised Health Institute and Hospital. In Brodarevo there is one outpatient clinic. There are 7 public health centers in the municipality . Total number of 31 doctor of general practice and specialists are employed along with 1 doctor for TBC prevention, 3 for health protection of women, 3 for health protection of pre-school children, 3 for school children and youth and one graduated pharmacist. Certain number of doctors is undergoing specialist studies. Hospital in Prijepolje is equipped with cardiology ultra -sound, EKG apparatus, apparatus for anesthesia, respirator, apparatus for oxygen and inhalers. Health Centre Prijepolje has roentgen, ultrasound and EKG apparatus. Existing equipment in both institutions is old and insufficient. There is a need for renewal of technical capacities and procurement of new equipment (e.g. scanner), that will enable successful diagnostic and curing of patients. Procurement of vehicles would substantially improve the work of emergency ward . For pharmaceutical health protection is responsible City Pharmacy, pharmacy in Brodarevo and Kolovrat. Source: Health Centre / Local self-government /National Agency for Statistics –Municipalities in Serbia

Social Protection

Holder of social protection in the Municipality Prijepolje is Social and Welfare Centre wi th 15 employees and the organization of Red Cross with 2 employees . According to the last report (2006) of the Social and Welfare Centre 53 persons are stationed in the Social institution, while the average of 20 persons demand to be received in the institution every year. In Prijepolje there is no institutions for full care of children and grown -ups though there is a big need for that. Social and Welfare Centre for years now is pointing to the problem of the lack of accommodation capacities for socially e ndangered population, before all mentally disordered and ill people. Within the existing capacities of the hospital there is a possibility for construction of a daily care hospital and stationary for mentally ill; that would greatly added to the social p rotection of such population. According to pool from 2005, 45% of old people declared that they would rather go to the homes for old people providing t would be on the territory of Prijepolje, and only 4 % declared that they would go wherever it is. Results of the poll implies that there is a necessity for the construction of home for old people. Statistic data show that in the surveyed period there is 100% increase of social beneficiaries among all categories; underage, of age population.

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Beneficiaries of the Social Welfare Centre

Minor persons Of age persons

Year total Total ms, disorders persons problems disorders disorders Finicky is Combined Behavioral Behavioral Financially jeopardized Unsupported Aged persons Psychological Jeopardized by family situation Mental disorders Physical disorders Other beneficiaries Other beneficiaries proble

1999 299 252 15 8 7 4 13 635 12 98 101 41 222 161 2003 441 373 24 14 10 7 13 801 22 120 113 51 266 229 2005 731 618 34 26 14 12 27 1.238 35 171 268 57 267 440 Source: National Agency for Statistics – Municipalities in Serbia

1400

1200

1000 1.238 800

600 801 731

400 635

200 441 299 0 1999 2003 2005

Minor persons Of age persons

There is a drastic growth of children from families with bad family relations . That situation, caused by social crises and confusion of social values, as well as, economic situation of families where members of a family have no constant, legal job , and they usually become delinquent and addicts. Aimed at prevention and fighting juvenile delinquency, Centre for Social work insists on opening Daily care for the children with behavioral problems. The number of abused and neglected children and grown -ups increase, the Centre has only partial evidence on the cases. The increase of those in financial support need is also evident. Those people have no social assistance. After closing down many of the factories and enterprises in Prijepolje, that number is increasing constantly. Social and Welfare Centre always meets the needs of old population . Project that is currently implemented called „For the safe future“, is related to the home assistance provision for elderly and disabled people. Assistance is realized through numerous services: provision of health protection at home, services of gerent-hostess, psycho-social support, technical services, etc. Project duration is 1 year, the question of sustai nability is open for similar initiatives and social protection.

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Culture and Sport

Culture

Most important cultural institutions in the Municipality of Prijepolje is Cultural Institution. It is founded in 1979 and its activity is related to promotion and development of culture and art (paintings, theater, music and movie art). Besides, Cultural Institution has long educational – scientific and publishing tradition. Beside Cultural Institution (once Institution of Revolution), there is also an Ensemble of Folk Dances that began to work in 2005. Ensemble continued tradition of ex Cultural–Artistic Society „Ljubiša Miodragovic“, that began to work in the seventies of the last century. Club „Sveti Sava“ deals with history and tradition of Serbian culture and publishing of the magazine „Savindan“. Society for science, culture and art of Bošnjaks „Ikre“ is founded in 2001 and is cherishing and popularizing culture and tradition.

Cultural-Historical Heritage Prijepolje is rich cultural-historical area with the remains of different cultures starting from the old Ras up to the present days. All monuments are rather abandoned to faith due to the negligence of the State organs; accordingly it is necessary to be reconstructed and conserved. Most important monuments of culture are: q Monastery Mileševo in Mileševo. Medieval monastery from the 13 th century q Sahat-/ Clock Tower/ in the city. Originates from the Medieval times q Building of City Museum in the downtown. Originates from the 18th century q Ibrahim-Pasha Mosque in Šarampovo. Originates from the 17th century q House of Veselicica (fountain) in the centre of the city. Originates from the 20th century q Monastery of Kumanica in Gostun-Kumanicama. Originates from the 15th century q Monastery of Davidovica in Brodarevo. Originates from the 15th century Monuments of culture in the Municipality Prijepolje represent large potential in cultural and tourist sense. Each monument has its characteristics and beauty. All cultural sites, promoted together could represent unique and very attractive tourist product of cultural -historical heritage of Prijepolje.

Cultural manifestations Most important cultural manifestations in the Municipality of Prijepolje are : q Sopotnicki izvori represent the review of national creativity and are held in the village Sopotnica. q Mileševska kolonija (painters’ colony), Decurlijada (children’s competition in knowledge, sport and culture), Prvi glas Polimlja (regional competition of amateur singers) and Rok festival (regional rock festival). Held in the Institution of Culture. q Evening of Poets Slovo sa Lima, held in the City Library q Manifestation Limski darovi that encompasses Zetovijadu, Limski kotlic, beach volleyball and Prijepolje regatta.

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Sport and Recreation

Sport related business in the Municipality is entrusted to Sport Association, that is founded in 1992 and registered as association of sport’s clubs, societies and associations . Association is managed by the Assembly and Steering Committee, as operative organ that implements the decisions of the Assembly. Members of Sport Association are 23 clubs and societies. Eleven clubs compete in the leagues while the rest of the clubs and societies play on tournaments and sport’s ma nifestations. Most important sports’ clubs are:

male/ No. of Location – League of Club Sport female members settlements competition FK Polimlje football m 120 Prijepolje Moravicka zone FK Jasen football m 40 Brodarevo District of ZlatIbor ŠK Priko chess m 20 Prijepolje Second League OK Putevi volleyball f 35 Prijepolje Second A league Planinarsko –skijaški klub „Kolovrat“ skiing m/f 18 Kolovrat - Source: Sport’s Association Total number of sportsmen in these 5 clubs is 233. Largest interest of sport population in the municipality of Prijepolje is for football. Two big manifestations that the sportsmen of Prijepolje participate in are Sandžak and Inter- municipal sport’s games, that gather several thousand sportsmen from Sandžak and other places. First time this year, Prijepolje organizes Euro-Cup in rafting. It is planned that cup becomes traditional sport manifestation that will be held every year. There is a Sport Hall in Prijepolje with the capacity of 2.000 seats. Different league matches and tournaments are held in this most important sport facility. The same facility is used for school classes. Beside the Sport Hall there are two stadiums in the municipality: football stadium Rosulje in Prijepolje with 500 seats and football stadium Hašimbegovica polje in Brodarevo with 5.000 seats and the possibility of organizing competitions in Athletics disciplines . Municipality owns several school gyms that apart from the PE classes are used for organizing league competitions in volleyball, basketball, handball, karate tournament, etc. Municipality has several smaller public sport terrains: q Jalija in Brodarevo with the terrains for small football, basketball and volleyball q Basketball, small football and tennis terrains are near the Hotel Mileševa in Prijepolje q Terrains for small football, handball, volleyball on the sand in the vicinity of secondary school are used traditionally every year for organizing sport games of workers q Terrains for basketball and volleyball in the park in Vakuf (Prijepolje) q In several villages in the vicinity of schools and local community offices there are terrains for small football Most important sport’s manifestations are : q Komaranska košija in Boretina brdo, Komaran. Horse racing, long jump, and other traditional sport’s disciplines q Water jumps in Petrovac q Lim regatta (rafting) on the section Plav-Prijepolje q City chess competition q Prijepolje Cup in sport fishing, that is organized in Ribarska staza on the Lim q Paragliding Cup „Dragoslav Divac“ in Prijepolje Apart from listed manifestations numerous tournaments in several sport’s discipline are organized in the city most of them memorial ones .

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Informing

In the Municipality of Prijepolje there are 4 media houses that beside broadcasting of radio and TV programme (regional RTV Enigma and Radio 033) are publishing printed media (JIP Polimlje). JIP Polimlje is the only media in ownership of the municipality that is in the process of privatization.

Year of Name Media type Ownership Basic purpose establishment Radio and Newspapers Offering information JIP Polimlje Municipality newspapers 1932, radio 1975 at local level RTV Enigma- Radio and 1997 Private Commercial regional TV Radio and Radio 033 2004 Private Commercial TV Radio Idi Radio 2004 private Commercial Source: Local self-government Beside JIP Polimlja other media are of commercial character and in private ownership .

Media Coverage RTS 1 & 2 Excellent TV B92 Middle TV Pink Middle TV Avala Poor TV Fox Poor TV Košava Poor Source: Local self-government Narrow city area is covered with the media signals well, mostly those with national frequentation of broadcasting, while in villages apart from the RTS signal coverage is very poor. In some border areas with Montenegro it is possible to watch Montenegrin TVs. The re is no regional media and there is no hints that in the future any would be established .

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