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

ern Bosnia and Herzegovina was based especially on the
integrated approach of humanitarian re-integration and
reconstruction, on the one hand, and economic development,
on the other. The experiences of the Development
Corporation Tuzla were incorporated into the concept of
the EU CARDS Project for regional development of the
country. The corporation became the full responsibility
of the canton and continues to carry out construction orders,
but now with more emphasis on the canton. At the
same time, as a canton corporation, it can act as project
executing agency and contracting partner for other agencies.
Thus, since 2005, it has been the partner of a German
training and testing institution for the purposes of setting
up and operating a welding center in Tuzla.
With the support of the European Commission, the Economic
Development Department was expanded into the
Regional Development Agency; since 2005 it has been the
Regional Development Agency for Northeastern Bosnia.
Today, coordinating tasks are more prominent; the business
development services have been reduced. They have
largely been taken over by experienced local providers.
Today, the Development Corporation Tuzla is viewed as
a best practice to which other regions look, and the Employment
Office in Tuzla is seen as a successful model of
adjustment from pure unemployment administration to
the modern requirements of regional economic development.
Lessons learned
As a local institution, the Development Corporation Tuzla
was able to develop and offer solutions that were optimally
adjusted to local conditions. At the same time, open communication
with local institutions, non-governmental organizations
(NGOs), and international organizations was
possible. The Development Corporation was thus able to
meet expectations for an integration concept for refugees
and displaced persons.
Founding the Development Corporation Tuzla was the
beginning of a process of structural improvements for the
economy and support for economic and social reforms
that is still continuing. It was an enormous challenge to
get the administration to assume ownership, to integrate
the Development Corporation as an instrument and partner
for implementation of cantonal economic policy. As
long as the German side was present, local authorities saw
the Development Corporation as a German institution
and not as their own agency. Given that the structure was
maintained after the Germans left, ownership increased
significantly, so that the Development Corporation Tuzla
is seen today as a purely Bosnian Institution with an international
past.
Another way to strengthen ownership could have been
a further expansion of the number of shareholders. Municipalities
and local self-help organizations, as well as
banks could have been integrated, as they were active in
the preparation of regional planning.
Integrating local BDS proved to be effective; several BDS
continue to apply the techniques and seminar material
they learned while working with the Development Corporation
Tuzla.
Recommendations
Development corporations as partners of local administrations
and international organizations can be an effective
instrument of regional development. However, from the
beginning, there must be local ownership. This requires
that the following conditions be met:
• Services offered by the development corporation correspond
to the needs of the local administration, local
agencies, and the private businesses.
• An approach of integrated program components, e. g.
reconstruction, economic development, and humanitarian
assistance, contributes to broad acceptance by
the population.
• Reliability in fulfilling contracts and agreements as
well as the long-term availability of key personnel and
contact persons creates an atmosphere of trust in the
organization.
• Transparent structures and formulation of the statutes,
clearly stipulating the non-profit-making status
of the organization, including clear regulations with
respect to taxes and contributions.
• Integration of co-ordination relationships with other
international organizations and government agencies
by way of participation in an advisory board.
• The development corporation should have its own legal
status in order to facilitate sustainability after termination
of international support.
• Early harmonization of the measures to privatize government
firms with measures to promote small and
medium-sized enterprises and regional development.
• Guarantees that the employment offices will be involved.
•
Experience with economic development has shown
that it is more important to define a unified economic
area than to respect administrative boundaries.
Contact
Wulf H. Goretzky, GTZ OE 3112 BuH
wulf.goretzky@gtz.de
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