Q:
A:
€100 million for equal regional development
Belgrade,
27 June 2007
Serbian State Secretary for regional development at the Ministry of Economy and Regional Development Verica Kalanovic said today that a sum of €100 million is to be allocated from the budget for equal municipal development.
Kalanovic told a press conference that €80 million of that sum, provided through the National Investment Plan (NIP), will be for infrastructure projects in 117 municipalities, and €20 million is intended for loans to small and medium-sized businesses in 35 most undeveloped municipalities.
She pointed to the fact that €46 million will be spent on construction of local utility infrastructure, and €34 for building industrial zones and business incubators.
According to Kalanovic, regional disparities in development among municipalities in Serbia are the largest in Europe and have in the upcoming years this trend is likely to increase.
The ratio between the most undeveloped (Jablanicki) and the most developed area (Belgrade), according to the development index is seven to one, while the least developed municipality in Serbia is 15% less developed than the one most developed, said Kalanovic.
She presented the fact that last year the average salary in Bela Palanka was 7.4% less compared to the average salary in Obrenovac, while income per head in the municipality of Pancevo compared to Becej was 14.5% less.
Kalanovic said that for every 100 employed people in Belgrade there are 37 unemployed, while in the municipality of Tutin there are 246 unemployed people for every 100 employed, adding that these are bad economic signs, which reflect the standard of living of people in these municipalities, and currently in Serbia there are 70 municipalities which are undergoing depopulation.
According to the State Secretary, the population in Novi Sad has increased by 38,000 in the last several years, whereas in Negotin it decreased by 6,700 or 15% of the municipality’s total number of citizens.
She said the reason for these drastic disparities is the lack of systemic and institutional capacities for dealing with these issues, which is why the Ministry’s priority in the upcoming period will be strengthening of institutional frameworks for regional development.
This framework implies implementation of the Serbian Regional Development Strategy for the period 2007–2012, adopted by the government in January, as well as adoption of the law on regional development which she expects to undergo parliamentary procedure in mid-2008.
She pointed to the fact that €46 million will be spent on construction of local utility infrastructure, and €34 for building industrial zones and business incubators.
According to Kalanovic, regional disparities in development among municipalities in Serbia are the largest in Europe and have in the upcoming years this trend is likely to increase.
The ratio between the most undeveloped (Jablanicki) and the most developed area (Belgrade), according to the development index is seven to one, while the least developed municipality in Serbia is 15% less developed than the one most developed, said Kalanovic.
She presented the fact that last year the average salary in Bela Palanka was 7.4% less compared to the average salary in Obrenovac, while income per head in the municipality of Pancevo compared to Becej was 14.5% less.
Kalanovic said that for every 100 employed people in Belgrade there are 37 unemployed, while in the municipality of Tutin there are 246 unemployed people for every 100 employed, adding that these are bad economic signs, which reflect the standard of living of people in these municipalities, and currently in Serbia there are 70 municipalities which are undergoing depopulation.
According to the State Secretary, the population in Novi Sad has increased by 38,000 in the last several years, whereas in Negotin it decreased by 6,700 or 15% of the municipality’s total number of citizens.
She said the reason for these drastic disparities is the lack of systemic and institutional capacities for dealing with these issues, which is why the Ministry’s priority in the upcoming period will be strengthening of institutional frameworks for regional development.
This framework implies implementation of the Serbian Regional Development Strategy for the period 2007–2012, adopted by the government in January, as well as adoption of the law on regional development which she expects to undergo parliamentary procedure in mid-2008.
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