Role of the Municipalities in Local Economic Development

FLGR Team

Danube Initiative

No. 10/2000

Two pilot seminars on the role of the municipalities in local economic development were held on September 11-13 in Vidin and September 27-29 in Silistra. The seminars were organized under Danube Initiative, a program managed by FLGR and funded by USAID. The seminars were developed on the basis of USAID materials that were adapted to the Bulgarian environment. The attendees included mayors, deputy-mayors, municipal economic development experts and regional administration representatives from Vidin, Montana, Pleven, Rousse and Silistra. The major topics included: theory and practice in local economic development; role of local governments in the global economy; attracting private investments; local economic development funding; optimization of municipal assets; workforce quality improvement; and local economic development policy. The seminars were facilitated by Mr. Alexander Mikhailov, chief experts, Analyses and Forecasts Department, Municipality of Sofia, and Mr. Vassil Radoinovski of Industryconsult Ltd. The lecturers who shared their experience included: Mr. Ventseslav Kozhuharov, chief secretary, Municipality of Blagoevgrad; Mr. Toshko Stoev, deputy-mayor, economic development, Municipality of Dobrich; Mr. Ilian Nikolov, executive director, Center for Economic Development, Municipality of Razgrad; and Mr. Petar Chaushev, executive director, Dobrudzha Textile Company, Silistra. The lecturers offered many practical examples and the participants were very active in the discussions, sharing their views on the processes and the difficulties related to local economic development.

The following major conclusions were reached at the seminar:

1. the topics treated by the seminar are extremely important and their discussion should not be postponed;

2. the old paradigms have been forgotten to a great extent and there is a hunger for local economic development theory;

3. the seminar has proven its usefulness by establishing a link between the commonly accepted local economic development theory and its possible application in Bulgaria;

4. it is necessary to initiate specific actions based on the principles of good theory;

5. the seminar answers the question of whether the motor of development should be internal or external;

6. the municipalities have resources that allow them to start working for their future by mobilizing the human factor;

7. the participants reached a consensus on the what could kick-start a successful process of local economic development. On one hand, it could be imposed, as reality clearly shows that development has no alternative. On the other hand, a more normal approach would be through the implementation of an effective policy of sound utilization of available resources, aimed at generating returns and implemented in partnership with businesses and NGOs.