Doc' dr Petar Veselinovic

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Regional policy as precondition for dynamic
economic development

• Doc. dr Petar Veselinovic

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• Serbia belongs to the group of countries with the
  highest regional unevenness in Europe
• Disproportions at the county level are 17, and
  at the level of municipality 115

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• Serbian regional unevenness reflects in the
  following
• Intensive process of demographic changes (in over
  50 of municipalities population is decreasing)
• Different employment and unemployment rates in
  various counties
• Different poverty rates in various regions
• Different levels of infrastucture development
• Lack of clearly defined institutional framework
  for regional development (Law on regional
  development)

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• Serbian economic structure, both globally and
  regionally, is characterized by dominant
  participation of SMEs
• SME sector makes 99,7 of the total number of
  economic subjects, with 60 of total employment,
  contributing nearly 55 to gross added value made

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SWOT ANALYSIS OF THE SERBIAN REGIONAL DEVELOPMENT
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• A large number of institutions and subjects
  participates in the regional development and
  faster development of underdeveloped regions
  policy implementation
• Even regional development requires full
  coordinated cooperation of all institutions
  ministries, special governemnt bodies, regional
  agencies, local communities

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• In order to successfully encourage regional
  development, it is necessary to provide
• Creation of the regional policy at the national
  level and its implementation in the regions
• Mutual coordiantionof policies at the national,
  regional and local levels

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• The role of the state is very important in the
  regional development policy implementation
• According to the EU regulations, instruments of
  granting the regional assistance include
• Subsidies and tax exemptions
• Owners shares
• State guaranties
• Loans under more favorable terms compared to the
  market ones

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• European regional policy is based on the four
  basic principles
• Principle of concentracion of structural-political
  measures for the region improvement
• Principle of program planning (3 to 6 years)
• Principle of consistency
• Principle of partnership

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• Consistent regional development of Serbia in the
  following period includes establishment of clear
  institutional framework, that is legal
  environment, and regional policy implmentation
• That includes
• Strengthening of regional institutions
• Decentralization (polycentric development)
• Application of EU regional principles
• Crossborder coopeartion
• SME sector support

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• Evolution of regional administration has been
  primarily guided by a single goal
• efficient and modern management of development at
  the entire territory of the country