“Application of Area based development approach (ABDA) in the rural border areas in the Western Balkans” Irena Dzimrevska, Head of Operations SWG Head Office/ Secretariat

Content The Regional Rural Development Standing Working Group in SEE – general information Area Based Development Approach (ABDA) – general information ABDA in the Western Balkans Pilot/ Test on integrated economic development in “Drina-Tara” and “Drina-Sava”

Our Organization The “SWG” stands for Regional Rural Development Standing Working Group in South Eastern Europe. It is an International Intergovernmental Organization, consisted of governmental institutions responsible for agriculture and rural development in respective countries and territories of Southeastern Europe. Its managing and coordinative body is the SWG Head Office/Secretariat, based in Skopje, Macedonia.

4 Vision Innovative and sustainable agriculture and rural development through cohesive regional co-operation for improvement of rural livelihoods in the SEE countries Mission To increase horizontal collaboration among respective countries and territories of SEE, coordinating regional initiatives related to agriculture and rural development and support the process of social and economic development of rural areas in South Eastern Europe

Fields of work of the SWG 5 NetworkingNetworking Capacity Building Advocacy & Resource Mob. Policy Analysis Information Exchange

SWG Member Institutions -Ministry of Agri-culture, Rural Development and Water Management, Albania -Ministry of Foreign Trade and Economic Relations, -Bosnia and Herzegovina -Ministry of Agriculture, Forestry and Water Management of the Republic of Srpska, Bosnia and Herzegovina -Federal Ministry of Agriculture, Water Management and Forestry, Federation of Bosnia and Herzegovina, Bosnia and Herzegovina -Ministry of Agriculture and Food, Bulgaria -Ministry of Agriculture, Forestry and Water Economy, Macedonia -Ministry of Agriculture and Rural Development, Montenegro -Ministry of Agriculture and Environment Protection, Serbia -Ministry of Agriculture, Forestry and Rural Development, Kosovo* Kosovo* "This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo declaration of independence." 6

SWG Observer Institutions -Federal Ministry of Agriculture, Forestry, Environment and Water Management, Austria -Federal Ministry of Food, Agriculture and Consumer Protection, Germany -Ministry of Rural Development, Hungary -Ministry of Agriculture, Forestry and Food, Slovenia - Ministry of Agriculture, Croatia -Provincial Secretariat of Agriculture Water Management and Forestry, Autonomous Province of Vojvodina, Serbia - Ministry of Agricultural, Food and Forestry Policies, Italy SWG Head Office/Secretariat 7

Our partners/supporters

“For the Balkans, which are characterized by small internal markets, inefficient cross border infrastructures and to some extent trans-border political tensions and conflicts, the elimination of the economic and political «border-effect» will enable the interaction and the integration between sub-regions belonging to different countries and strengthen the stability in the region”. A. KOTIOS

What is Area Based Development (ABD) ? The Area Based Development (ABD) is considered to be an innovative approach enabling breakthrough in sustainable growth Main characteristics of the ABD area-specific (versus country) integrated (across sectors) inclusive (communities) participatory (bottom-up) flexible (responsive to changes)

Rural areas in the Western Balkans are characterized by great heterogeneity between the countries and within each single country. The most prominent common characteristics of Western Balkan rural areas are: 1.Migration, depopulation; 2.Bad infrastructure; 3.Under-valorized territorial capital especially the local heritage; 4.Variety and plenty of natural resources and their favorable ratio according to population density; 5.High importance of agriculture in the structure of rural economy; 6.Presence of dual, farm structure; 7.Low level of fundamental services (health, education, social etc.) 8.Low level of business/ economic activities. ABD in the Western Balkan countries

The ABD approach in the region was initiated as part of the EU-financed (DG AGRI) study, carried out in close collaboration with SWG. The study titled “Facilitating an area-based development approach in rural cross- border areas of the Western Balkans” was carried out by the Commission’s Joint Research Centre – IPTS. It covered the “Drina-Tara” region - a cross-border area between Bosnia and Herzegovina, Montenegro and Serbia – and, as part of the study methodology for designing and applying the ABD approach to cross-border regions was developed.

ABD in the Western Balkan countries The SWG in cooperation with the European Commission continued the cooperation through IPA Multi-beneficiary Annual Programme 2011 on Project Preparation Facility - Preparation of a Proposal for an Area Based Development in the Western Balkans. During the SWG EC Project Preparation Facility three additional regions are included: -“Drina- Sava” (cross-border area between Bosnia and Herzegovina, Croatia and Serbia) -“Prespa” (cross-border area between Albania and Macedonia) -“Sharra” (cross-border area between Albania, Macedonia and Kosovo*) Kosovo* "This designation is without prejudice to positions on status, and is in line with UNSC 1244 and the ICJ Opinion on the Kosovo declaration of independence."

ABD in the Western Balkan countries The cooperation with the European Commission continued within the project: “Preparation for implementation of the Area Based Development (ABD) Approach in the Western Balkans – 1 st and 2 nd phase” which aim is to further work on building capacities and structures within the SWG and selected regions in order to be able to implement the forthcoming ABD programmes.

Mapping potential areas in the Western Balkans (WB) Selecting the most suitable areas:  Size  Uniform development situation  Common grounds for cross- border- cooperation  Sufficient road connections  Resolved boundaries disputes ABD in the Western Balkan countries Methodology

Regions identified as a potential for ABD 1.Drina –Sava 2.Pčinja 3.Dinara 4.Neretva 5.Šar Planina 6.Prespa Lake 7.Skadar Lake 8.Lower Danube 9.North Banat 10.Mura River 11.Istra 12. Plitvice (Una-Sana) 13.Piva-Drina 14.Upper Danube

I.Define the target area II. Assess the development situation  the baseline  critical needs/development gaps  priority development areas III. Elaborate the development strategy and action plan  development priorities  specific activities  plan for implementation ABD in the Western Balkan countries Methodology

Main principles Transparency Participation/ involvement of SHG Know-howManagement Flexibility/ adapting

Business sector ABD in the Western Balkan countries Participatory approach Stakeholder Group Civil societyLocal administration

Stakeholder Group Non Governmental organizations Business Local Self Governments SWG Secretariat Skopje Regional Coordinator Technical Assistant Secretariat of SHG Korcha Prizren Brcko Visegrad Management

Main outputs Baseline study For each cross-border region Strategy for economic development of each cross- border region Programme for economic development of each cross-border region and general ABDA Programme Project pipeline for each cross- border region Projects Implementation

To facilitate regional cooperation, political reconciliation and economic growth in the Western Balkans through application of area based development approaches in selected rural cross-border areas. Implementation of ABD in the Western Balkan countries Overall Objective

ABDA in the WB cross-border regions

ABD in the Western Balkan countries – Drina – Tara region 1.Post-conflict area 2.Mountain area with potential for tourism 3. Weak internal road infrastructure 4.Negative demographic trends, but high population density 5.Initiatives for CB activities 6.Environemental problems (rivers, waste, industrial air poulltion)

ABD in the Western Balkan countries – Sharra region 1.Mountain area with potential for tourism 2.Very poor internal road infrastructure (e.g. no connection MK-AL), but connection with Skopje 3.Negative demographic trends, but high population density 4.Subsistence farming with poor potential for competitive production

ABD in the Western Balkan countries – Prespa region 1.Real potential for tourism (lake) and fruit production 2.Isolated areas 3.Negative demographic trends and depopulation 4.Common environmental challenge (lake management)

ABD in the Western Balkan countries – Drina – Sava region 1.Well-developed infrastructure 2.Accessibility to markets 3.Potentially competitive agriculture (arable, vegetables, pig) and manufacturing 4.Experience in CB activities 5.Environemental problems (rivers, waste, industrial air poulltion) 6.Depopulating trends and mine fields

Test/ pilot the ABDA in the WB cross-border regions

Integrated economic development Focus on: Facilitation of networking and cooperation among local population, entrepreneurs, craftsmen, small farming sector, tourism service providers and other rural community actors in cross-border regions organizing joint work processes, sharing facilities and resources and market placement of joint offers.

Focus on: Improvement of competitiveness of the regions and their products and services through development of innovative integrated products and services respecting preservation and valorisation of traditional methods of production and using typical local products and resources.

Focus on: Enhancing competitiveness through small investments introducing new production processes to improve or innovate products/services. Promotion of region and its resources through unique regional integrated tourism products and branding.

Integrated economic development Micro-region / Route Producers/ processors Tourism service providers Events, manifestat ions Cultural / Natural Heritage

Integrated economic development Etno village Products Accommodation Restaurants Attractions ProducersProcessors Cultural heritage Natural heritage Development

Actions Setting up-partnerships Small investments Specific capacity building measures – trainings Preparation of promotion materials: catalogues, web-site, logo Organization of manifestations/ events Trade fair participation

Criteria Involvement of at least two countries Involvement of at least two sectors Partnership and cooperation to be established among existing operators (e.g.farmers, processors, public/private service providers etc.) Include attractive / unique/ special story, site, product, service to be offered

Grant Application and Implementation Process Project Implementation Unit Project Management Unit Stakeholder Group Applicants Selection Committee Beneficiaries Monitoring Committee Open Call External Assistance Contracting

Grant Implementation Process Cooperation partnership Application Business strategy Contract

Thank you! Contact: SWG Head Office/ Secretariat Address: “Goce Delcev 18” MRTV 12 th Floor 1000 Skopje, Macedonia Tel: Fax: SWG Head Office/Secretariat