Prepared by Rozalija Vasilevska and Bardhyl Marku 1
Macedonia
Local Government Reform Project
Funded by the United States Agency for International Development
Blagoj Strachkov 4
91000 Skopje, Macedonia
tel: 113 188, fax: 290 122
e-mail: lgrp_info@dai.com
Report
MM-5 Local Economic Development
Period: January – May 2002
O V E R V I E W 
Article 22, Paragraph 3 of the Law on Local Self-Government, enacted 22 January 2002, 
provides that local economic development is under the jurisdiction and authority of the 
municipal government. In response to this new responsibility, a program was designed as a 
partnership between Prisma and LGRP, later with CSHI as a partner, that would build the 
local government capacity and create a community-based system. To develop the community 
involvement, the program would use existing Prisma local teams as the core of the community 
board. Day to day management of the activities would be conducted by a local economic 
development coordinator working for the municipality, with leadership provided by the 
mayor. Continuing technical assistance is provided by LGRP. The use of the Prisma teams as 
the core of the board was intended also to give those teams an existence beyond the end of 
the Prisma grant program in each locality.
Implementation began in December 2001 on the Local Economic Development activities 
with the selection process for municipalities. This was done jointly by Prisma and LGRP. 
Criteria included size, location, ethnicity, success of the Prisma project and commitment of the 
mayor.
The first training workshops were held over 2 weeks in February 2002. These
provided the basic economic development instruction to 2 representatives from each
of the 12 pilot municipalities, together with 1 representative each from 9 additional 
localities to which training but not continuing technical assistance has been offered. 4 
mayors attended the entire 2 week program. After this first training cycle, pilot
municipalities began to establish community planning boards. This began with the
invitation to the local Prisma teams and the regional Prisma representatives to form
the core of the board. The newly formed boards worked on gathering data for a
community profile, which is a foundation for analyzing resources and potentials in
municipality. Many of LED pilot cities during their work invited and took in
consideration opinion and needs of the smaller and newly formed municipalities.
Prepared by Rozalija Vasilevska and Bardhyl Marku 2
Macedonia
Local Government Reform Project
Funded by the United States Agency for International Development
Blagoj Strachkov 4
91000 Skopje, Macedonia
tel: 113 188, fax: 290 122
e-mail: lgrp_info@dai.com
The participation and cooperation by members of existing Prisma teams has varied
greatly among the pilots. In some there have been very good relations, with Prisma 
members actively participating; in others, Prisma team members have chosen not to
stay with the process. In all cases, the local Prisma teams continue to be invited to 
community board meetings. 
The 12 pilot coordinators have established a support network among themselves and
on their own initiative, sharing ideas on data gathering and on planning.
The Municipal Management team have linked pilot mayors and ED coordinators with
numerous Donors and grant opportunities. The level of enthusiasm and effort are
extremely high and the program is on schedule. 
S U M M A R Y 
The MM team analyzed and summarized the achieved results in the period January
2002 to May, 2002 and have prepared this mid-term evaluation of the LED program.
1. Community planning teams: In all twelve municipalities they are
established and working on a voluntary basis. The LED coordinators have an
important role in coordination of the teams and are essential to success. The 
community planning teams generally consist of experts, consultants and
representatives from different areas such as Local Government (City architect,
Secretary of Councils, Councilors, Communal Public Enterprises, Funds for
local roads…) agriculture, infrastructure, industry, regional Ministries, Bureau
for Employment, loss making companies, private businessmen…
2. The Community Profile: All pilot municipalities have already drafted the
first version. The community planning boards value the Profile as one of the 
most important documents for presentation of the municipality in front of all
potential donors and investors as well as a basic document for when the Law
on Local Finance will be adopted. They request additional funding for
printing this material on hard copy and recording on CD. We will provide
funds for printing these profiles together with the strategic plans, along with
preparation of CD-Rom versions.
3. Strategic Planning workshops: 4 regional strategic planning workshops
were held using an expert facilitator. These were evaluated as very important 
and a key part of the Local Economic Development program. It was
considered especially helpful that those workshops were held regionally so the 
regionally placed municipalities had the opportunity to share mutual
experiences. Although the workshops were quite successful, future technical
Prepared by Rozalija Vasilevska and Bardhyl Marku 3
Macedonia
Local Government Reform Project
Funded by the United States Agency for International Development
Blagoj Strachkov 4
91000 Skopje, Macedonia
tel: 113 188, fax: 290 122
e-mail: lgrp_info@dai.com
assistance will be necessary and it is planned by the MM team. Generally the 
workshops were evaluated as highly informative.
4. Additional T/A requested: Community planning boards have asked for
additional capacity building on : Marketing plans, Marketing campaign, Fund
raising, Donor relations etc… Also additional office supplies were requested
like photocopy machine , Color printer A3 format, fax machine,
bookshelf…These equipment requests are being evaluated and some may be
met.
Municipality of Kriva Palanka
1. Community planning team consists of representatives from Local
Government, LED coordinator, Councilors in City Consul, Assistant to the
Mayor, Unemployed representative.
2. Community profile process is in the phase of collecting data and up to now
everything is going smoothly. Very good cooperation has been established
with NEPA (regional association of small and medium enterprises) and in the
future empowering small and medium enterprises will be one of the priorities
in strategic planning. 
3. On the Strategic Planning Workshop, 11 May 2002 Saturday, seven team 
members including Mayor, LED coordinator, Councilors in City Consul,
Assistant to the Mayor, Unemployed representative attended. Among priorities 
which need to be solved are:
1. Defining status of loss making companies
2. Water supplies of a city
3. Building a water treatment plant
Evaluating the work on this subject several concerns occur and one of them
was financing sources. Many of the programs and projects which will be
developed are medium and large and budgets for the implementation of the
activities at this stage can’t be covered from the Municipality. At this stage
when the Local Government has only responsibilities and is still missing the
Law for Financing, this issue will be real challenge.
Municipality of Sveti Nikole 
1. Community planning team consists of representatives from Local
Government, LED coordinator, Mayor, Public Communal Enterprise,
Councillor of City Council.
2. Community profile process is going smoothly except for problems with
gathering data from Telecommunication company. Although official request
was submitted to the company there is no reply until today. Other problems
Prepared by Rozalija Vasilevska and Bardhyl Marku 4
Macedonia
Local Government Reform Project
Funded by the United States Agency for International Development
Blagoj Strachkov 4
91000 Skopje, Macedonia
tel: 113 188, fax: 290 122
e-mail: lgrp_info@dai.com
are occurring in the area of social affairs like child aid for the social case
families, structure of employed by ages, migration percentage from the
municipality etc.. The problem is that that kind of data can’t be found in
present databases. The data are gathered by categories from the team members 
who are professionally working in the specific area. One of the team members 
suggested to record Community profile on CD Rom. This will be very good
presentational material for the municipality. Also hard copy material like
brochures and leaflets will be necessary for presentation and promotion of the 
city.
3. On the Strategic Planning Workshop, 11 May 2002 Saturday, attended 5 
(five) team members including Mayor, LED coordinator, Mayor, Public
Communal Enterprise, Counselor of City Council. Among priorities which
need to be solved are:
1. Improving water supplies of a city 
2. Improving city’s sewage system 
3. Define the river flow 
Financing sources like credit lines and possible donors and investors could be 
potential issue. 
Municipality of Kocani
1. Community planning team consists of representatives from Local
Government, LED coordinator, private businessmen, agriculture, Water
company, medium, Health sector, Electro power company,
Telecommunication company. 
2. Community profile process is still in phase of gathering data, which is a big 
part of the whole process. The LED coordinator said that the Director of the 
Bureau for Employment officially announced that they don’t want to
cooperate with the Local Government on this issue After the Mayor and his 
cooperatives realized that local PRISMA team members didn’t what to be part 
of this Community planning board, the newly formed team took responsibility
for the process. However, Prisma representatives are still invited to each
meeting.Until now the Local Government worked on identifying problems in
municipality and defining priorities so the team is already aware of possible
weaknesses and strengths of municipality.
3. On the Strategic Planning Workshop, 11 May 2002 Saturday, attended 7 
(seven) team members including Mayor, LED coordinator, representatives
from Local Government, private businessmen, agriculture, Water company,
medium, Health sector, Electro power company, Telecommunication
company. Priorities which need to be solved are:
1. Finishing the Water Bottling Plant 
2. Improving infrastructure plans for the industrial zone 
3. Establishing agency for Development of Small and Medium 
Enterprises 
Issue on financing sources was mentioned like one of the possible problems. 
Prepared by Rozalija Vasilevska and Bardhyl Marku 5
Macedonia
Local Government Reform Project
Funded by the United States Agency for International Development
Blagoj Strachkov 4
91000 Skopje, Macedonia
tel: 113 188, fax: 290 122
e-mail: lgrp_info@dai.com
Municipality of Negotino
1. Community planning team consists of representatives from Local
Government, LED coordinator, private businessmen, agriculture, private
wineries, local PRISMA staff. 
2. Community profile process is already completed. Almost all data are entered 
in the database but it is necessary to analyze and to regroup them in aim to 
have more comprehensive and consistent profile. A unique way of gathering
data was implemented here and it was forming sub-committees on different
areas like agriculture , infrastructure issues etc…
After the meeting was held MM team visited one of the biggest wineries in
Negotino – Bovin. In informal conversation with the principals of the
company MM team was introduced to the main weaknesses and potentials of
the company. Also support that they receive from the Local Government , with 
low percentage of interest of credits, were mentioned like one of the positive 
examples how the Local Government cooperate with private sector. 
On the Strategic Planning Workshop, 13 May 2002 Monday, attended 4 
(four) team members including LED coordinator, Director of Bureau for
Employment, counselor of the City council, representative from loss making
company. 
Municipality of Karpos
1. Community planning team consists of representatives from Local
Government, LED coordinator, Chief of the Mayor’s cabinet, fourteen
secretaries of neighborhoods units, Bureau for Employment, media
representative. 
2. Community profile process is completed and first draft version was submitted 
to MM team. Data are gathered by neighborhoods units, as well as from
Bureau for Employment, Electro power company, Post office… Appendixes
will be attached to the original community profile, that will mean that Karpos
municipality will have community profile by neighborhoods units. 
3. On the Strategic Planning Workshop, 13 May 2002 Monday, attended 6 (six) 
team members including LED coordinator, media representative, external
consultants, unemployed, counselor of the City council, representative from 
loss making company.
Municipality of Centar
1. Community planning team consists of LED coordinator, representatives from 
Local Government, external consultant, local PRISMA staff. 
Prepared by Rozalija Vasilevska and Bardhyl Marku 6
Macedonia
Local Government Reform Project
Funded by the United States Agency for International Development
Blagoj Strachkov 4
91000 Skopje, Macedonia
tel: 113 188, fax: 290 122
e-mail: lgrp_info@dai.com
2. Community profile process is in final stage. The database on business
companies is very detailed so the planning board agreed to attach this database 
to the profile. The community profile needs to be printed as hard copy as well 
as on CD. Also English version on profile and strategic plan is required.
Financing on this will be hoped for.
3. On the Strategic Planning Workshop, 13 May 2002 Saturday, attended 5 
(five) team members including LED coordinator, counselors of the City
council.
Municipality of Struga
1. Structure of the community planning team. The Community Planning Team 
in municipality of Struga consists of representatives from Local Government
(LED coordinator, Secretary of Council, Director of Fund for Local Roads),
representative from Regional Ministry of Economy (PRISma local staff),
representative from Ministry of Communication and Transport, representative 
from Employment Bureau (PRISma local staff) and other members.
2. Community profile. The process of preparing the community profile involved 
all members of the community planning team. They did not have problems
collecting data from different institutions, except from the telecommunication
company; however they hope to solve this issue very soon. 
3. Strategic planning. Seminar on this topic vas attended on 8 May in Struga. It 
vas attended by 8 representatives from LED team from Struga and facilitated 
by Besim Nebiu from ISC (Institute for Sustainable Community). In this
seminar, several issue like “Overview of process (Strategic planning)”
“Introduction on strategic planning” “Assessment of issues” “Prioritizing of
issues” “SWOT analysis” “Vision” etc. were presented. The LED team from
Struga were very happy with materials and knowledge received in that
workshop and they expressed hearty thanks to us (LGRP) and to facilitator.
4. Next steps. Compilation of strategic planning and action planning.
5. Other. LED officer received equipment (computer, printer, desk ), but they
have some additional needs like color printer-ink jet A/3 or A/2 format etc.
Municipality of Tetovo
1. Structure of the community planning team. The Tetovo community planning 
team consists of representatives from Local Government (LED officer,
Secretary of Council, 2 members of the City Council, Director of Fund for
Local Roads, Director of the Communal Public Enterprises), representative
Prepared by Rozalija Vasilevska and Bardhyl Marku 7
Macedonia
Local Government Reform Project
Funded by the United States Agency for International Development
Blagoj Strachkov 4
91000 Skopje, Macedonia
tel: 113 188, fax: 290 122
e-mail: lgrp_info@dai.com
from Regional Ministry of Economy (PRISma local staff), representative from
Employment Bureau (PRISma local staff) and other members. 
2. Community profile. In the process of preparing the profile of the city all
members of the LED team and mayors from rural municipalities (Tearce,
Bogovine and Bervenica) were involved. They did not have problems
collecting data from different institutions, except from Telecommunication
Company, however they solved this problem, and they have draft of their
community profile. 
3. Strategic planning. Seminar on this topic was attended on 7
th May in
Gostivar. It was attended by 4 representatives from LED team, and facilitated 
by Besim Nebiu from ISC (Institute for Sustainable Community). In this
seminar, several issues like “Overview of process (Strategic planning)”
“Introduction on strategic planning” “Assessment of issues” “Prioritizing of
issues” “SWOT analysis” “Vision” etc. were presented. The LED team from
Tetovo were very happy with materials and knowledge received in that
workshop and they expressed hearty thanks to us (LGRP) and to facilitator.
4. Next steps. Compilation of strategic planning and action planning.
5. Other. LED officer received equipment (computer, printer, desk).
Municipality of Bitola
1. Structure of the community planning team. The community planning team 
in municipality of Bitola consists of representatives from Local Government
(LED officer, member of the City Council), representative from Regional
Ministry of Economy (PRISma local staff), representative from Employment
Bureau (PRISma local staff) and other members. 
2. Community profile. Process is in final stage, the community profile needs to 
be printed as hard copy. They had some problems collecting data from
different institutions, (Bureau for Employment, Electro power company, Post
office…), however they had confirmation from them, and they will get this
data very soon. 
3. Strategic planning. Seminar on this topic was attended on 8
th of May in
Gostivar. It was attended by 2 representatives from LED team, and facilitated 
by Besim Nebiu from ISC (Institute for Sustainable Community). In this
seminar, several issue like “Overview of process (Strategic planning)”
“Introduction on strategic planning” “Assessment of issues” “Prioritizing of
issues” “SWOT analysis” “Vision” etc. were presented. The LED team from 
Struga were very happy with materials and knowledge received in that
workshop and they expressed thanks to us (LGRP) and to facilitator.
Prepared by Rozalija Vasilevska and Bardhyl Marku 8
Macedonia
Local Government Reform Project
Funded by the United States Agency for International Development
Blagoj Strachkov 4
91000 Skopje, Macedonia
tel: 113 188, fax: 290 122
e-mail: lgrp_info@dai.com
4. Next steps. Compilation of strategic planning and action planning.
5. Other. LED officer received equipment (computer, printer, desk ). Members
of community profile requested daily pay for their work. This, of course, was 
not provided.
Municipality of Debar
1. Structure of the community planning team. The community planning team 
in municipality of Debar consists of representatives from Local Government
(LED officer, City Architect, Director of Fund for Local Roads),
representative from Regional Ministry of Economy (PRISma local staff),
representative from Employment Bureau (PRISma local staff), Director of
Center for social work, representatives from business sector and other
members. They establish very good cooperation with PRISma members in
Debar also with representatives from business sector. 
2. Community profile. In this process of preparing the community profile all
members of the team and mayor Mr. Imer Ologu were involved. They did not 
have problems collecting data from different institutions and they already had
draft version of their community profile. 
3. Strategic planning. Seminar on this topic vas attended on 7
th of May in
Gostivar. It vas attended by 7 representatives from community profile
including mayor Mr. Imer Ologu, and facilitated by Besim Nebiu from ISC
(Institute for Sustainable Community). In this seminar, several issues like
“Overview of process (Strategic planning)” “Introduction on strategic
planning” “Assessment of issues” “Prioritizing of issues” “SWOT analysis”
“Vision” etc. were presented. The LED team from Tetovo were very happy
with materials and knowledge received in that workshop and they expressed 
hearty thanks to us (LGRP) and to facilitator. 
4. Next steps. Compilation of strategic planning and action planning. 
5. Other. LED officer received equipment (computer, printer, desk).
Municipality of Krusevo
1. Structure of the community planning team. The community planning team 
in municipality of Krusevo consists of representatives from Local Government
(LED officer, representative of the Communal Public Enterprises),
representative from Regional Ministry of Economy (PRISma local staff),
representative from Employment Bureau (PRISma local staff), representative
from Electro Power Company and other members. They have established a
Prepared by Rozalija Vasilevska and Bardhyl Marku 9
Macedonia
Local Government Reform Project
Funded by the United States Agency for International Development
Blagoj Strachkov 4
91000 Skopje, Macedonia
tel: 113 188, fax: 290 122
e-mail: lgrp_info@dai.com
very good and cooperative team; they have very good cooperation with
PRISma team.
2. Community profile. In the process of preparing the profile of the city all
members of the community board were involved. They did not have any
problems collecting data from different institutions, and they have draft of
their community profile. 
3. Strategic planning. Seminar on this topic was attended on 8
th of May in
Gostivar. It vas attended by 4 representatives from LED team, and facilitated 
by Besim Nebiu from ISC (Institute for Sustainable Community). In this
seminar, several issues like “Overview of process (Strategic planning)”
“Introduction on strategic planning” “Assessment of issues” “Prioritizing of
issues” “SWOT analysis” “Vision” etc. were presented. The LED team from
Struga they were very happy with materials and knowledge received in that
workshop and they expressed thanks to us (LGRP) and to facilitator.
4. Next steps. Compilation of strategic planning and action planning.
5. Other. LED officer received equipment (computer, printer, desk).
Municipality of Gostivar
1. Structure of the community planning team. The community planning team 
in municipality of Gostivar is formed by representatives from Local
Government (LED officer, Secretary of Council, City Architect, Director of
Fund for Local Roads, Director of the Communal Public Enterprises),
representative from Employment Bureau (PRISma local staff), representative
of the Union of NGO in Gostivar and other members. 
2. Community profile. In the process of preparing the profile of the city all
members of the community board were involved. They did not have problems 
collecting data from different institutions, except from Telecommunication
company, Electro power company and Ministry of Health, however they have 
solved these problems and they have a draft of their community profile. 
3. Strategic planning. Seminar on this topic vas attended on 7
th of May in
Gostivar. It vas attended by 7 representatives from LED team, and facilitated 
by Besim Nebiu from ISC (Institute for Sustainable Community). In this
seminar several issues like “Overview of process (Strategic planning)”
“Introduction on strategic planning” “Assessment of issues” “Prioritizing of
issues” “SWOT analysis” “Vision” etc. were presented. The LED team from
Prepared by Rozalija Vasilevska and Bardhyl Marku 10
Macedonia
Local Government Reform Project
Funded by the United States Agency for International Development
Blagoj Strachkov 4
91000 Skopje, Macedonia
tel: 113 188, fax: 290 122
e-mail: lgrp_info@dai.com
Tetovo were very happy with materials and knowledge received in that
workshop and they expressed hearty thanks to us (LGRP) and to facilitator.
4. Next steps. Compilation of strategic planning and action planning.
5. Other. LED officer received equipment (computer, printer, desk).