Private Sector Development in Southwest Serbia
The Project – a mandate to the Regional Development Agency Zlatibor – will contribute to increased income and employment opportunities of Southwest Serbia’s inhabitants, especially young people and women. This will be achieved by improving the performance (inclusive growth and access to relevant services) of the tourism and traditional products sectors. The project is an essential part of SDCs commitment towards supporting growth of income and employment through private sector development in Serbia.
Employment & economic development
Tradepolicy & market system
25 rural and peripheral municipalities in the 4 most underdeveloped districts of Southwest Serbia with a combined population of 1.02 million.
Women and young people
Small and medium sized enterprises
1.600 rural households
- Foreign private sector North
- Foreign private sector South/East
|Background||The continued economic crisis in Serbia is the most severe in the last decade - in 2012 the real GDP contraction was 1.7%. 26% of Serbia’s workforce and 50% of the youth are unemployed. This context calls for supporting sectors which have potential in employment and income generation. Tourism is a growing, labor-intensive industry that plays a central role in Southwest Serbia’s economy and significantly employs women and youth. The other major sources of revenue are traditional products and farming. Traditional products are an integrated part of the tourism offer and are available to the wider consumer public, providing economic opportunities for the rural population through adding value to their products, starting and expanding their businesses and selling to new markets.|
|Objectives||Increased income and job opportunities of Southwest Serbia’s inhabitants, especially young people and women. The overall strategy is to facilitate pro-poor development of the tourism sector and to use this growth and leverage to extend further growth into the traditional products sector. This growth will raise the incomes and create jobs for project’s target group - workers and small enterprise owners in rural and peripheral areas of Southwest Serbia, especially young people and women.|
Outcome 1 – Increased growth and productivity gains in the tourism sector. It will be achieved by addressing the main underlying causes of poor performance of the tourism sector: weak destination management, weak human capacities in the hospitality sector, lack of linkages between stakeholders in the tourism industry, etc.
Outcome 2 – Increased volume and value of sales of traditional products. It will be achieved by addressing the main underlying causes of poor performance of the traditional products sector: low capacity of private and public sectors in advocating changes of the legal framework, low volume of sale of traditional products, weak access to information, advice, testing and licensing services, inadequate supply and supply chains.
Overall, the program will contribute to additional net income of CHF 11 million generated by SMEs, workers and 1.600 rural households; and the creation and safeguarding of 1,000 additional full time jobs (which is equivalent to 4,000 part time jobs).
In In tourism: a) Improved coordination, advocacy and representation of tourism related private sector bodies to local and national government, b) Better research & development functions in tourism oriented firms, c) better marketing & promotion of targeted area to foreign and domestic tourists, and d) Improved quality and availability of staff recruitment and development resources in the tourism sector.
In traditional products: a) Increased capacity of private and public sector actors to advocate for improved legal framework for regulation of the production and sale of traditional products, b) Micro-medium processors have access to information, advice, testing and licensing services for traditional products, c) Supply and supply-chain for traditional products are improved, and d) better marketing of traditional products
Results from previous phases: During the previous phase, the regional partner agency has identified key drivers of change for regional economic growth and job creation. The partner has designed and delivered interventions in the tourism, fruit, meat and dairy, and traditional products sectors, which together have generated an (additional) 6,330,000 CHF in income and created 720 additional jobs. The first phase also saw the partner to develop its capacity to implement interventions according to the Making Markets Work for the Poor approach and to measure their impact.
|Directorate/federal office responsible||
Swiss cooperation with Eastern Europe
Regional Development Agency Zlatibor
|Coordination with other projects and actors||Swiss contribution is complementary to a number of donor activities, which will lead to synergies: a) EU pre-accession support 2011-2013 prioritizes private sector and rural development; b) UNDP works on rural economy through tourism development; c) GIZ on tourism development in East Serbia; d) SECO’s foreseen Trade Cooperation Phase IV deals traditional products.|
|Budget||Current phase Swiss budget CHF 5'500'000 Swiss disbursement to date CHF 615'641|
|Project phases||Phase 3 01.08.2018 - 31.07.2022 (Current phase) Phase 2 01.10.2014 - 30.09.2018 (Completed) Phase 1 01.04.2010 - 31.10.2014 (Completed)|