Author: Zvonko Naumoski August 2012 1 2 The project is financed by the European Union This document has been produced with the financial assistance of the European Union. The contents of this document are the sole responsibility of the Regional Rural Development Standing Working Group in South-East Europe (SWG) and can under no circumstances be regarded as reflecting the position of the European Union. This document is output of the IPA Multi-beneficiary Annual Programme 2011 Project Preparation Facility Preparation of a Proposal for an Area Based Development in the Western Balkans Contract number: 2011/271-250 CONTENTS Introduction 7 1 Countries and administrative regions covered 9 1.1 Applied ABD selection criteria 9 2 Geographical area covered by the plan 11 2.1 Municipalities description 13 2.1.1 Macedonian municipalities 13 2.1.2 Albanian municipalities 14 2.1.3 Kosovo municipalities 15 2.2 Area description – Land structure of the cross border area 16 3 Quantified description on the current situation 17 3.1 Description of the current situation showing disparities, shortcomings and potential development 17 3.1.1 Historic review of cooperation within the region 17 3.2 The general socio- economic context of the geographical area 17 3.2.1 Population 17 3.2.2 Net Migration rate 20 3.2.3 Ethnic composition of the population 21 3.3 Economic drivers 25 3.4 Performance of the main economic sectors 27 3.4.1 Agriculture and livestock breeding 27 3.4.2 Production industry 32 3.4.3 Catering services 32 3.4.4 Trade 33 3.4.5 Tourism 33 3.5 Environment and waste management 36 3.5.1 Bio-diversity and eco-systems 36 3.5.2 Solid waste and waste water management 37 3.6 Rural economy 38 3.6.1 Developed sectors other than agriculture 39 3.6.2 Barriers to creation of employment opportunities 39 3.6.3 Dependence on financial resources 40 3.6.4 Micro business formation 41 3.7 Description and gap analyses of the provision of services in rural areas 42 3.7.1 Provision of water and electricity 43 3.7.2 Transportation services and road infrastructure 43 3 3.8 Cultural and natural heritage 44 3.9 The main results of previous activities operations undertaken with Community and other bilateral or multilateral assistance, the financial resources deployed 44 4 Strategic Plan for development of Cross – Border Sharra Region 47 4.1 Strategic Planning Process 47 4.2 Vision 47 4.2.1 A sustainable approach to Regional Development 48 4.3 Priority areas 48 4.4 The Strategy 49 4.5 Strategic goals and objectives per priority area 50 4.5.1 Priority Area: Environment 50 4.5.2 Priority area: Regional Economy 53 4.5.3 Priority area: Tourism and Culture 55 4.5.4 Priority area: Regional Infrastructure 58 4.5.5 Priority area: Agriculture and Rural Development 59 5 Action Plan Framework 62 5.1 The Actions 64 1. Priority Area: Environment 64 6 Publicity and visibility 71 7 Annexes 74 7.1 Annex 1: Stakeholders’ questionnaire 74 7.2 Annex 2: Cultural and Natural resources 83 7.3 Annex 3: Strategic matrix 91 4 SUMMARY This programming document consists of two main parts: Baseline study and Strategic plan for development of the cross-border region of Sharra Mountain. The Baseline Study evaluates the existing socio-economic conditions, disparities and potentials for development of the Region whilst the Strategic and Action Plan present the strategic framework of directions for development. The paper is mutually developed by the regional stakeholders through utilization of the ABD approach. The ABD approach was applied in order to determine particular problems and challenges that are present in the Region and to design strategic goals and actions that will help to overcome the development barriers and restrictions. The achievement of the strategic goals can be done through utilization of the endogenous approach and through joint cooperation between the regional stakeholders. Sharra Mountain Region is one of the cross – border areas selected by the SWG Board. The region is placed on a territory that belongs to three states: FYR of Macedonia, Albania and Kosovo. Geographically, the area is positioned in the north-western part of Macedonia, southern part of Kosovo and north-east part of Albania. Two municipalities from Macedonia (Jegunovce and Tearce), three from Kosovo (Shtrpce, Prizren and Dragash) and the District of Kukes from Albania (District of Kukes consists of one urban and fourteen rural municipalities) are representing the region. In accordance to the above mentioned ABD criteria and indicators considered in the selection of the regions, they have the necessary characteristics to create cross-border area for common development. The Sharra Mountain cross-border region has specific and common characteristics in terms of advantages: wealth of natural resources and biodiversity, clean environment and big agricultural potentials. The municipalities are all settled on the massive of the Sharra Mountain and have similar characteristics in terms of natural resources and economic activities which are mainly in the fields of agriculture and food production. They possess large surfaces of forest and agricultural land as well as diverse hydro network. At the same time the area has some common problems and is facing challenges with the poor waste management, underdeveloped infrastructure and undersized economies as well as non - qualified human capital. The economy of the Region is characterized with presence of many family and micro businesses. They are mainly operating in the fields of agriculture or trade and do have weak capacities to generate bigger income and employment. There are a few crucial economic sectors that form the essence of the economic activity in the Shara cross-border area. They are: agriculture, livestock breeding, trade, catering services and tourism. 5 The overall population of the Region is 321.437 citizens and is mainly characterized with population aged between 15-64 years. As such this is one of the “youngest” areas compared to the rest of the assessed regions by the ABD. More than 35 % of this population is unemployed. This population considers being labour force, and for that the potential, in terms of quantity, for economic development of the region is very high. However, this potential can be engaged if developmental activities occur. The local labour force requires further capacity building and vocational trainings, but the region has not adequate capacities to undertake such activities without external assistance. The Strategic and Action plan for development of Sharra cross- border Region provides recommendations for sustainable and shared development of the area. The document aims towards achievement of a balanced and sustainable development by the accomplishment of three fundamental goals: • economic and social cohesion; • conservation and management of natural resources and the cultural heritage; and • more balanced competitiveness of the area. The core of the Strategy is the principle of securing a better quality of life for the citizens, by seeking to meet the four objectives of sustainable development: • Successful protection of the environment; • Sustainable use of natural resources; • Improvement of economic growth and employment • Social protection and progress which appreciates the needs of everyone. The Strategic Plan has five priority areas which were identified by the Regional Stakeholders Group: 1. Environment 2. Regional Economy 3. Tourism and Culture 4. Regional Infrastructure 5. Agriculture and Rural Development Each priority area has its strategic goals and their corresponding objectives and activities. All of them are interdependent and brought into a high correlation, thus complying with the multi-sector nature of ABD. 6 INTRODUCTION The Baseline study and strategic plan for development of the cross-border region of Sharra Mountain is a programming document that evaluates the current situation related to socio-economic conditions, disparities and potentials for development within the region, through applying the ABD approach. The document was developed in six chapters that provide picture of the region characteristics. The first chapter of the document (Chapter 1) elaborates the applied Area Based Development (ABD) criteria. The second chapter (Chapter 2) gives view of the geographical area covered by the Sharra region, its land composition and natural- geographical resources. Chapter 3 provides quantified description of the current situation. It contains detailed analyses of different socio-economic sectors in the region, identifying its shortcomings, disparities and potentials for development that are present in the region. This chapter also provides information about national and international donor programmes as well as activities undertaken in order to improve economies and living conditions in the region. The forth chapter (Chapter 4) describes the overall strategic planning process, defines the strategic plan for development of the targeted area including description of the overall strategic planning process, the Vision of the strategic plan, the chosen priority areas, the potential and critical needs for development and the SWOT analysis. The chapter provides information about strategic goals, objectives and activities for each priority area and gives an overview of the stakeholder structure, describing the structure of stakeholder – working group, including its authorization for the consultations and adoption of the strategy, and the support during the process of its implementation. Chapter 5 delivers the Action Plan. The last chapter (Chapter 6) gives summery of the publicity and visibility measures required for implementing the strategy. It also includes guidance that will ensure proper publication of the document and that actions described will reach the target groups (potential beneficiaries) One of the cross-border areas selected by the SWG Board for identifying the potentials of cross- border cooperation is the Shara Mountain cross-border region. This region is placed on territory that belongs to three states: FYR of Macedonia, Albania and Kosovo.