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Background:* 160+ local governments in Serbia* Changes since October 2000 (municipal role re: LED)Purpose:To develop the skills of local governments and local business groups to foster economic growth and job creation, assist them to put these concepts and skills into practice, and to create a business friendly environment where the private sector can flourish.

The Urban Institute – a USAID Contractor

timeline and resources
Duration:

Funding:

Municipalities:

Grant fund:

Leveraged resources:

60 months

$24.5 million

24 (10 – Phase I + 14 – Phase II)

$3 million ($1.5 – Phase I + $1.5 – Phase II)

$3,000,000 Municipalities (Phase I)

$200,000 (est) CRDA

$150,000 (est) ENTRANSE/BIs

$300,000 Policy Study Fund from OSI

$150,000 (est) UNDP Training of LED Officials

$100,000 (est) DAI through cost sharing

$50,000 GDA Indjija WiFi

Timeline and resources:

The Urban Institute – a USAID Contractor

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The goal of MEGA program is to help local governments to:

    • Create new jobs;
    • Establish new businesses;
    • Attract investments;
    • Establish Private-Public Partnerships. 

Targets:

The Urban Institute – a USAID Contractor

phase i mega municipalities
Phase I MEGA Municipalities:

Nis

MEGA Office Locations

The Urban Institute – a USAID Contractor

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Provide support for the development and implementation of policies designed to enhance an enabling environment for LED.

Component 1 main objectives are:

Establish a National Alliance for Local Economic Development (NALED)

Provide technical assistance in drafting of legislation by the Standing Conference and Government ministries, including legislation concerning property devolution, business improvement districts (BIDs), industrial parks, land reform, foreign investments (FDI), and intergovernmental finance reform.

Component 1: National Level Policy Advocacy

The Urban Institute – a USAID Contractor

slide8

Declaration of Support to Establishing NALEDhas been signed by more than 50 representatives of:

  • Government
  • Domestic and foreign companies
  • NGOs
  • International organizations

The Urban Institute – a USAID Contractor

slide9

US Ambassador, USAID Mission Director and ten mayors of MEGA at Belgrade City Hall.

NALED inaugurated at Belgrade City Hall

on the 6th of March 2006, gathering more than 200

participants.

The Urban Institute – a USAID Contractor

slide10

Miodrag Babic, President of Hemofarm - the biggest Serbian pharmaceutical company, is one of 50 signatories of the Declaration of Support to Establishing NALED.

From left to right: the US Ambassador to Serbia and Montenegro, Michael C. Polt and Boris Tadic, President of Serbia, signing the Declaration of Support to Establishing NALED.

The Urban Institute – a USAID Contractor

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Provision of technical assistance, material support and training to each of the participating municipalities to enable them to support the economic development of the community.

Component 2: Local Economic Development

  • Component 2 main objectives are:
  • Establish municipal LED offices with trained personnel
  • Formulate economic development strategic plans
  • Implement LED projects involving private and public sector

The Urban Institute – a USAID Contractor

slide12

Zrenjanin – Local Economic Development Office (LEDO) Opening

The US Ambassador to Serbia, Michael C. Polt, walking through the BID Zone in Krusevac

The Urban Institute – a USAID Contractor

slide13

Component 3: Private Sector Development (scheduled to commence in June 2007)

  • Continuing the work of USAID CRDA (Community Revitalization through Democratic Action)
  • Provide technical assistance and training to business associations to enable them to meet the needs of their members
  • Build partnerships between municipalities and business associations

The Urban Institute – a USAID Contractor

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Component 4: Municipal Capacity Building

  • Provide technical assistance and training for municipal staff to enable the municipality to better support economic development.
  • Component 4 main objectives are:
  • Improve the provision of municipal services to businesses and investors
  • Enhance the capacity of local governments to finance the provision of infrastructure improvements needed to promote LED
  • Improve access of local firms to municipal procurement opportunities
  • Enhance the role of municipalities in privatization procedures
  • Streamline business permitting

The Urban Institute – a USAID Contractor

slide15

Key Accomplishments to date:

  • Law on Local Government Finances adopted on July 14, 2006
  • 7 out of 10 LED offices opened and functioning
  • LED Strategic Plans completed in 6 out of 10 municipalities
  • NALED officially registered and working groups initiated
  • The first Training Center for re-education and skill development opened in Indjija (50 jobs)
  • Deployment of Credit Analysis Tool (CAT) initiated
  • Capital Investment Planning (CIP) process initiated on a pilot basis in two municipalities

The Urban Institute – a USAID Contractor

slide16

Loznica – One of the three municipalities selected at the “Invest in Serbia” competition

The Urban Institute – a USAID Contractor

slide17

Indjija – One of the three municipalities selected at the “Invest in Serbia” competition

The Urban Institute – a USAID Contractor

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End of Presentation

The Urban Institute – a USAID Contractor