Establishment of an Advisory Council for Economic Development in GABROVO

The Bulgarian Resource Cities Program between Bulgarian and U.S. municipalities devel oped by FLGR, ICMA, and USAID gave the municipality of Gabrovo the opportunity to share the experi ence of the U.S. municipality of West Carrollton , Ohio , in estab lish ing an Advisory Council for Economic Development (ACED). Establishing this body was a short-term objec tive of this joint project to organize and formalize a local economic development office or department for expansion and retention of existing local businesses and recruitment of new businesses.

The establishment of an ACED in Gabrovo, the general restructuring of the municipal admin istration, and the formation of the new Economic Development and Projects Department laid the foundation for a suc cess ful policy for sustainable local economic development, based on a continuing inter action with nongovernmental organizations (NGOs) and businesses within the municipality in order to join efforts in over coming the difficulties and attaining sustainable social and economic development for the community. The case of Gabrovo can serve as a model of a successful practice for other Bulgarian municipalities.

Problem Statement

The experience accumulated during the previous two phases of the Bulgarian Resource Cities Program in establishing public-private partnerships and in evaluating the resources of Gabrovo revealed two prob lems . One was the lack of trust in the local institutions from the businesses point of view and the other was the inadequate capacity of the municipal administration to achieve sustainable social and economic development within the community.

The key to solving these problems appears to be the interaction among the municipality, busi nesses, and NGOs. Achieving effective relations among them is only possible with the establishment of a coordinating body such as the ACED that can promote public trust in the municipality as an institution and consolidate the feedback of the business community and NGOs regarding the problems of sustainable local economic development. For this coor dinating body to function properly, Gabrovo needed to improve the institutional capacity of the municipal administration through internal restructuring and establishment of a new Economic Development and Projects Department. Together with the ACED, this department would pursue policies for retaining and expanding business and attracting new investments to the municipality.

By attracting investors from abroad, the implementation of this project will eventually con tribute to job creation, innovation of existing technologies, establishment of an industrial park, and modernization of the available infrastructure .

Project Description

In May 2003 Gabrovo s chief expert in business development, Ms. Desislava Koleva, began a correspondence with Mr. David Humphreys, Director of Planning and Economic Development of West Carrollton, Ohio. The purpose was to obtain advice on establishing the ACED in Gabrovo. This correspondence extended from the beginning of the project until the establishment of the ACED (October 2003 April 2004).

In his correspondence Mr. Humphreys presented real examples of working advisory councils in the United States and methodologies for establishing such bodies. Internal regulations of the Business Advisory Council of West Carrollton, Ohio, and many other documents regard ing the council s sessions were placed at the disposal of Gabrovo.

During his first trip to Gabrovo, Mr. Humphreys discussed with the Gabrovo project team the opportunities and perspectives for establishing a working advisory council in Gabrovo. The partners had detailed discussions on the structure (with more than 80 percent business representation) and main functions of the ACED, taking Gabrovo s highly developed and diverse industries into consideration. The municipal authorities took an active part in the discussion, offering their opinions and recommendations. A key moment of the trip was the meeting with the business community of Gabrovo and the presentation on business advisory councils. The main objective of that meeting was to gauge the reaction of local businesses to the establishment of the ACED, which proved to be highly positive. After the first visit of the U.S. partner, the partners developed a methodology for establishing an advisory council in Gabrovo.

The first step took place in January 2004 , when the mayor of Gabrovo, Bogomil Belchev, issued an executive order establishing an initiative committee comprised of three members, who in turn proposed to the mayor the nominees for a working commission on establishing the advisory council. The working commission s seven members were the Executive Director of the Chamber of Trade and Commerce in Gabrovo, the Executive Director of the Gabrovo-21 Employers Union, two municipal councilors (elected representatives of the Economy and Management of Municipal Property subcommittee of Gabrovo s municipal council), and the three members of the initiative committee.

In February 2004 the working commission discussed and proposed the future members of the advisory council to the mayor of Gabrovo. The most important criteria for selection of the candidates were leadership, public recognition, and ownership of a successful business. Some important NGOs and the Technical University of Gabrovo are also included in the council because of their important role in meeting local needs for a qualified labor force.

During the second working visit of Mr. Humphreys to Gabrovo in March 2004, a second meeting with the businesses of Gabrovo was held to present the municipality s plans for establishing the ACED. After the election of 15 nominated members, the mayor of Gabrovo held individual meetings with each candidate. In April 2004, the ACED, chaired by the mayor, began its work by adopting standing regulations for its activities.

Implementation Timeline

The project was implemented from October 2003 to April 2004. The main activities were:

October 2003 April 2004: Correspondence with the U.S. partner to obtain advice on the establishment of the advisory council.

December 2003: Working visit of the U.S. partner and organizing of a meeting with the businesses in the community.

December 2003: Creation of a methodology for establishing the ACED.

January 2004: Establishment of an initiative committee for forming a working commission to establish the advisory council based on the mayor s executive order.

February 200 4: Establishment of a working commission to establish the advisory council.

March 2004 : Second working visit of the U.S. partner and second meeting with Gabro vo s businesses to present the activities concerning the establishment of the ACED.

March April 2004: Meetings of the mayor with each nominated candidate.

April 20 04 : Formation of the advisory council and start of its work in Gabrovo.

Solutions Overview

As a result of the extremely useful cooperation with West Carrollton , Ohio , and with Mr. David Humphreys in particular, Gabrovo succeeded in applying the U.S. model and establishing a functioning advisory council in the Bulgarian economic environment in accor dance with the needs of both business and NGOs.

In parallel with the establishment of the ACED and its mandated work, in February 2004 Gabrovo s municipal council adopted a new administrative structure for the municipality of Gabrovo , which included an Economic Development and Projects Department.

Benefits

Through the establish ment of a work ing council, Gabrovo strengthened public trust in its ability to understand economic factors and conditions and to apply all necessary measures for achieving sustainable social and economic development. As a result of Gabrovo s new municipal structure and department, Gabrovo greatly improved its institutional capacity.

The end result of the project is a well-functioning interactive network among the municipality, local businesses, and NGOs based on mutual trust and feedback. Coopera tion between these structures in forecasting, planning, and coordinating economic develop ment will boost the competitive abilities of the local economy and help Gabrovo achieve economic growth.

Conclusion

This project, as part of the Resource Cities Program between Bulgarian and U.S. munici palities, contributed to the establishment of useful partnerships between U.S. and Bulgarian specialists. Mutual solving of important problems in local economic development improved the institutional capacity of one Bulgarian municipality, whose successful practice can be applied by other municipalities . Only through combined efforts by institutions, busi nesses, and NGOs can Bulgarian municipalities face the challenge of achieving a flourishing economy and social stability in order to enter the European Union.