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Territorial Audit M O J K O V a C

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Territorial Audit M O J K O V a C Territorial Audit M O J K O V A C CONTENTS 1. GENERAL INFORMATION ABOUT MOJKOVAC ........................................................... 2 2. DEMOGRAPHIC DATA ....................................................................................................... 4 3. LABOUR MARKET DATA .................................................................................................. 6 3.1. Labour force ......................................................................................................................... 6 3.2. Social and human resources development ........................................................................... 6 3.3. Employment statistics .......................................................................................................... 7 3.4. Unemployment analyses ...................................................................................................... 9 3.5. Disadvantaged groups, skill gaps ....................................................................................... 11 3.6. Main obstacles for accelerated employment growth ......................................................... 12 4. ECONOMIC DEVELOPMENT POTENTIALS AND OBSTACLES OF THE TERRITORY ................................................................................................................................ 14 4.1. Characteristics of economic sectors ................................................................................... 14 4.2. Education and VET ............................................................................................................ 26 5. SWOT ANALYSIS .............................................................................................................. 29 CONCLUSIONS........................................................................................................................... 32 ANNEXES ...................................................................................................................................... 0 1. GENERAL INFORMATION ABOUT MOJKOVAC The municipality of Mojkovac belongs to Montenegro’s Northern region and middle waterway of Tara river, between Bjelasica and Sinjajevina mountains. The municipality’s total area is 367 km², which makes 2.6% of Montenegro’s entire territory. The terrain is mountainous, and altitude varies between 600m (valley of Tara) and over 2,000m (peaks of Bjeloasica and Sinjajevina mountains). Municipality borders with Kolasin, Berane, Bijelo Polje, Pljevlja, Zabljak and Savnik. It consists of one urban settlement (city) and 14 villages. The majority of settlements are located at the altitude of 800-1000m. There are two rivers in the area: Tara and Lepesnica with numerous tributaries. The climate in Mojkovac is humid continental climate. Average annual temperature is 7.1°C, and total annual rainfall amounts to 2.205 l/m2. Mojkovac Municipality, according to the development index1 of municipalities, ranks 15th out of 21 municipalities in Montenegro, with a development index of 63.38. The figure indicates that Mojkovac in relation to the Montenegrin average is lagging behind by about 36%. According to the level of competitiveness2, Mojkovac significantly lags behind most of the municipalities and is located at the level of 78.3% of the average competitiveness of all local government units in Montenegro. Adversity of business environment is reflected in the lack of planning documents, whose adaptation has been slowed down by making plans at the national level, (since preparation of local plans were dependent on the existence of national plans) which greatly affect the spatial planning in Mojkovac. 1 Development index is a composite indicator of the degree of development of municipality or region. It is counted as a weighted average of five basic socio-economic indicators:1. Unemployment rate, 2. Total taxable income per capita, 3. Budget revenues of municipality per capita, 4. general population movements (growth rate of population in municipality) and 5. Share of educated population (high school and university) in total population of municipality in the age 15-64). It is defined by the Regional Development Strategy. 2 The competitiveness index is the average of the indicators of Business environment and business sector, which is calculated on the basis of qualitative and quantitative analysis. Business environment indicators include demographic trends, infrastructure, degree of providing personnel in the field of health, education, sports, culture, social protection, education level of population, basic and business infrastructure, and other indicators at municipal level. Indicators of the business sector involve data on investment and investment dynamics, development of entrepreneurship and the level of main economic indicators in municipality. When it comes to the number of businesses in the municipality of Mojkovac, the data indicate that this number varied during last several years between 130 and 140. Last available data show that this number has increased (from 130 in 2014 to 139 in 2015), but still, the increase was less than the percentage increase at the national level so that Mojkovac’s share in the total number of businesses at the national level declined from 0.6% to 0.5%. The largest number of businesses are in the area of wholesale and retail trade (about 42% of the total number of businesses in this municipality), followed by manufacturing sector (about 24%). The GDP of Mojkovac constitutes 0.4% of Montenegro’s GDP. In the structure of companies, in Mojkovac there are mostly micro- companies which make up the substantial majority, around 85.3% of the total number of companies, while the share of medium-sized companies is 5.9% The business environment in the municipality of Mojkovac, although significantly improved in recent years, is still in some aspects unfavourable.Despite favourable taxation policy, and some improvements regarding municipal support to different businesses (explained later), there is still a lack of adequate infrastructure in some parts of the municipality, the business zone is just established and not valorized yet, etc. 2. DEMOGRAPHIC DATA Similar to other municipalities in Montenegro’s Northern region, municipality of Mojkovac has observed negative demographic trends during the past 20-30 years. These trends are reflected in the high level of emigration, reduction of birth rate and negative natural population growth. According to the 2003 census, the total population of Mojkovac was 10.280, while in 2011 it reached 8.623, (which means that the population declined by 16.12% in comparison to 2003). Negative demographic trends continued, so in 2015 the number of inhabitants of Mojkovac was 8.017 (additional decrease of 4-5% after the last census). Of the total population of Mojkovac, 41.64% live in the urban area while 58.36% live in rural areas. The majority of the population that emigrates from Mojkovac belong to the age group 20-39, and among them majority are women. Also, around 90% of them goes to more developed regions of Montenegro, Coast and Central region (almost half to capital city Podgorica). (see Annex 1). Graph 1: Population in Mojkovac Source: MONSTAT (1991-2011 Census, 2012-2015 population estimations) Changes in the lifestyle of the population in the Northern Region of Montenegro, and thus the municipalities of Mojkovac, have influenced the ageing tendency of the population in the long term. There is a tendency for a decline in natural growth, urbanisation and degradation of land, increased unemployment, emigration, and insufficient development of social infrastructure that should keep the conditions and attract new populations. The population of Mojkovac belongs to the category of ageing population. Such a situation was recorded in 12 municipalities in the territory of Montenegro (Graph 2.1.2 and 2.1.3). Graph 2: Natural and mechanic changes in population of Mojkovac municipality Source: MONSTAT Gender structure of the population in the municipality of Mojkovac is balanced (50.48% men and 49.52% women). Regarding the age structure, according to the 2011 Census, there were no significant differences in the age structure of the whole Montenegrin population. Approximately 17.95% of Mojkovac inhabitants are those from 0 to 14 years of age, 68.05% are those from 15 to 64 while 14% of the population in Mojkovac municipality belongs to the age group 65+. These demographic trends pose a significant threat to the further development of Mojkovac, especially regarding the development of the labour market and the inflow of new investments. 3. LABOUR MARKET DATA 3.1. Labour force The Labour market in Mojkovac is characterised by low level of activity, relatively high level of unemployment as well as labour supply and demand problems. The most significant cause of unemployment is the low economic performance in the municipality and insufficient demand in labour market. Due to this situation, a modest number of new job positions are offered at the market, so it is very difficult to get a job, especially when employers seek for the previous working experience. 3.2. Social and human resources development Regional Development Strategy of Montenegro 2014-2020 stresses out that in order to achieve Montenegro's key development targets by the end of 2020, it is necessary, along with investment in basic infrastructure, to realize a number of measures relating to raising the competitiveness of the less developed regions, and the strengthening of human resources
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