Local/Regional Economic Development in South ... - Value Chains

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132 cal initiatives for tourism development, but also to prepare a joint strategy (vision, guiding principles for tourism development) for the destination of Herzegovina. It will be important to break the strategy down into concrete plans for measures that take into account the available resources of the actors (infrastructure development, marketing plan, etc.). However, national and international travel groups are already demonstrating greater interest in the destination, as shown by the rising numbers of visitors, both day visitors and those who stay overnight. Tourism is gaining increasing recognition as an area of economic activity. This can be seen in the fact that firms are investing in small boarding houses, restaurants, and other tourism services (bus companies, rafting services, etc.). In addition, firms are becoming more willing to pay membership dues to the tourism association so that the association has more scope for its activities. These positive developments allow the association to achieve faster results in the pilot region of Mostar and to see the results of certain measures in a shorter period. Thus, the region is a model for other regions. Associations of these regions can benefit from the experiences in Mostar. Recommendations for similar projects The title of this article poses the question of whether tourism can be the solution for structurally weak regions. For the region of Mostar the answer is yes, if one takes into account that tourism can only be a supplement to other measures that improve infrastructure. For this to occur, the following conditions must be met: • Existing tourism potential (e. g. nature, landscape, cultural and historical sites) and a minimum degree of tourism infrastructure (independent of the planned product and the target group) • Willingness of the local population to welcome tourists and cater to them, as well as to make the required investments • Organizational structures that are able to assist in the development of tourism products (building networks) and also to create the necessary linkages to the market The idea of network building in the region is central, probably more so than in other economic sectors, because an attractive tourist destination is comprised of many individual services (transportation, accommodations, catering, cultural events, sport activities, etc., often provided by small and micro enterprises. Individual firms alone have little chance of coping with international competition. Offering technical and methodological training to staff members of the tourism associations and organizations, drawing up concepts for sustainable financing of association structures, developing a service portfolio, and supporting the formulation of market-oriented strategies are therefore central elements of a promotional concept for tourism development in structurally weak regions. Recommended reading Analyse der touristischen Potenziale in Bosnien und Herzegowina, WBF Bosnien und Herzegowina, GTZ 2004 (unpublished paper) Contacts Selma Karavdic-Gaab, GTZ OE 3112 BuH selma.karavdic-gaab@gtz.ba Christian Kaufhold, consultant cckaufhold@web.de
6.6 Producer Organizations and Marketing Structures for Fruit and Vegetables – Making Better Use of Market Potentials after Trade Liberalization in Bulgaria Dr. Detlev Böttcher, Dr. Wilhelm Elfring Brief description of the approach Ever since the political changes in early 1990s, the agricultural sector of Bulgaria has been in the process of restructuring toward a market-oriented economy that conforms to the EU economic system. Major structural measures to improve the Bulgarian agricultural sector must be introduced and to a great extent completed by 2007, its prospective entry year into the EU. This includes conformity to EU market infrastructure. Although it must be said that the far-reaching liberalization of economic procedures has led to the easing of state marketing and processing monopolies for agricultural products, therefore offering development opportunities to private trade, these opportunities have enjoyed only limited utilization due to insufficient physical market infrastructures. Experience and practical knowledge in market-oriented and EU-conforming quality production is lacking at the producer level. This is also true for the fruit and vegetable sector, which contributes over 20 % to agricultural added value. Within the framework of EU integration, the Bulgarian Government is building on this sector as a development engine for rural areas. Fruit and vegetables are traditionally important components in the diet of the Bulgarian people. Bulgaria’s potential for production and sale of fruit and vegetables, however, is not being sufficiently exploited because professional marketing structures are only in a development stage in many parts of the country, and often a marketable supply is lacking. The producers are trying to organize their sales primarily via direct sales and street trading. Commerce is hardly in the position of buying up the necessary quantity of goods in sufficient quality for domestic and export marketing. Project implementation The project, conducted on behalf of the Federal Ministry for Economic Cooperation and Development (BMZ), supports the improvement of marketing structures for fruit and vegetables through the establishment or renovation of wholesale markets not only in large cities but also in areas of cultivation. This infrastructure is available to producers and wholesalers. Analogous to the principle of industrial parks, wholesale markets enable dealers and producers to transact business without needing to bear the burden of the investment themselves. This is particularly relevant, as the high EU standards for hygiene and food safety, soon to be obligatory in Bulgaria, will also necessitate a capital-intensive infrastructure. In addition to the Bulgarian Government and the municipalities, the European Bank for Reconstruction and Development (EBRD), the Kreditanstalt für Wiederaufbau (KfW), and the EU’s SAPARD program are participating financially in the establishment of marketing institutions. The wholesale markets and producer markets in Sofia, Sliven, Ogjanovo and Haskovo have already been completed. In Ogjanovo, for example, investments amounting to around EUR 1.3 million were placed in an initial development stage (not yet up to EU standards). The producers are not yet participating financially in the markets in Ogjanovo and Haskovo. They are minority partners in Gorni Dubnik. A further decrease in fruit and vegetable production coupled with the acknowledgement that market infrastructure alone is insufficient in order to make Bulgarian horticulture competitive, led to a re-orientation of assistance priority areas. Since the existing agricultural, trade and processing businesses are barely able to survive as individual economic units under competitive EU conditions, cross-business cooperation between and with the affected producer, trade, and processor groups became an assistance priority area of the Technical Cooperation. Due to experiences with forced collectivization, however, there are major reservations toward any form of cross-business cooperatives. After all, they have only just become acquainted with and come to appreciate their newly-acquired business freedoms. But how else can small truck farmers supply international chains such as “Metro” and “Billa,” if not through joint marketing efforts? Initial producer cooperatives that are using the new market institutions as sales channels for their products have therefore formed within the last three years in the project regions. In the last three cultivation periods, therefore, the project promoted producer groups located in different parts of the country that were in the immediate vicinity of the new markets. In cooperation with already established credit cooperatives and business enterprises, exemplary seasonal cultivation financing and planning are being organized. In addition to promoting cross-business cooperation and advising the market companies, the project is also helping in the political dialogue of all participants for mid and longterm development of the fruit and vegetable sector. Impact Agricultural operations are not only the beneficiaries of improved market access, but because of such program 133
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Division 311 South-Eastern Europe,
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Preface Promoting region-specific d
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IHK Chamber of Commerce and Industr
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1 Einführung Introduction 9
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68 propriate and lacking mechanisms
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7 .9 Economic Development in Bosnia
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