Serbian Minister of Public Administration and Local Self-Government Zoran Loncar said that the implementation of the new Constitution is underway, which envisages the decentralisation of authority and equal regional development of Serbia.
He recalled that aiming to implement the Constitution, the government at its session held in Vrsac, adopted the
Law on territorial organisation, while today it adopted the Strategy for Serbia’s regional development for the period from 2007 to 2012.
Loncar explained that the strategic document defines the basics of Serbia’s regional development, and its adoption was necessary because Serbia is an example of unequal regional development.
According to Loncar, the ratio of development measured by per capita income between the City of Belgrade and the Jablanicki District is 1:4 in favour of Belgrade, and the biggest disproportion exists between Apatin and Bosilegrad, where the ratio is 1:15 in favour of Apatin.
The Minister presented the fact that some two thirds of total income in Serbia is realised in the City of Belgrade and South Backa District whose capital is Novi Sad, he added that these are the most developed parts of the country.
He pointed to the fact that the aims of this strategy are viable development, increasing regional competition, regional poverty reduction, controlling negative demographic changes, continuation of the process of decentrailisation, economic integration of Serbian communities in Kosovo-Metohija and construction of regional institutional infrastructure.
Loncar stressed that the draft of the new Law on equal regional development is complete, and expressed conviction that it will soon enter parliamentary procedure.
According to Loncar, the Strategy of regional development implies quick adoption of new regional policies in Serbia, as well as the formation of a financial institution which will provide support to accelerated equal regional development.
Loncar said that this strategy requires the adoption of an action plan that will define fiscal and credit policy, the policy of state aid, of employment and foreign investment.