Decentralization and Local Development in South East Europe

266 Pages·2013·1.481 MB·English

by  Will Bartlett, Sanja Maleković, Vassilis Monastiriotis (eds.)

Studies in Economic Transition
General Editors: Jens Hölscher, Reader in Economics, University of Brighton; and Horst
Tomann, Professor of Economics, Free University Berlin
This series has been established in response to a growing demand for a greater u nderstanding
of the transformation of economic systems. It brings together theoretical and empirical
studies on economic transition and economic d evelopment. The post-communist transition
from planned to market economies is one of the main areas of applied theory because in
this field the most dramatic examples of change and economic dynamics can be found. The
series aims to contribute to the understanding of specific major economic changes as well as
to advance the theory of economic development. The implications of economic policy will
be a major point of focus.
Titles include:
William Bartlett, Sanja Malekovic, Vassilis Monastiriotis (editors)
DECENTRALISATION AND LOCAL DEVELOPMENT IN SOUTH-EAST EUROPE
Tilman Bruk and Hartmut Lehmann (editors)
IN THE GRIP OF TRANSITION
Economic and Social Consequences of Restructuring in Russia and Ukraine
Lucian Cernat
EUROPEANIZATION, VARIETIES OF CAPITALISM AND ECONOMIC PERFORMANCE IN
CENTRAL AND EASTERN EUROPE
Bruno Dallago and Ichiro Iwasaki (editors)
CORPORATE RESTRUCTURING AND GOVERNANCE IN TRANSITION ECONOMIES
Bruno Dallago (editor)
TRANSFORMATION AND EUROPEAN INTEGRATION
The Local Dimension
Hella Engerer
PRIVATIZATION AND ITS LIMITS IN CENTRAL AND EASTERN EUROPE
Property Rights in Transition
Saul Estrin, Grzegorz W. Kolodko and Milica Uvalic (editors)
TRANSITION AND BEYOND
Daniela Gabor
CENTRAL BANKING AND FINANCIALIZATION
A Romanian Account of how Eastern Europe became Subprime
Oleh Havrylyshyn
DIVERGENT PATHS IN POST-COMMUNIST TRANSFORMATION
Capitalism for All or Capitalism for the Few?
Iraj Hoshi, Paul J.J. Welfens and Anna Wziatek-Kubiak (editors)
INDUSTRIAL COMPETITIVENESS AND RESTRUCTURING IN ENLARGED EUROPE
How Accession Countries Catch Up and Integrate in the European Union
Björn Jindra
INTERNATIONALISATION THEORY AND TECHNOLOGICAL ACCUMULATION
An Investigation of the Multinational Affiliates in East Germany
Mihaela Keleman and Monika Kostera (editors)
CRITICAL MANAGEMENT RESEARCH IN EASTERN EUROPE
Managing the Transition
David Lane (editor)
THE TRANSFORMATION OF STATE SOCIALISM
System Change, Capitalism, or Something Else?
David Lane and Martin Myant (editors)
VARIETIES OF CAPITALISM IN POST-COMMUNIST COUNTRIES
Jens Lowitzsch
FINANCIAL PARTICIPATION OF EMPLOYEES IN THE EU-27
Enrico Marelli and Marcello Signorelli (editors)
ECONOMIC GROWTH AND STRUCTURAL FEATURES OF TRANSITION
Sönke Maatsch
CENTRAL AND EAST EUROPEAN MIGRANTS’ CONTRIBUTIONS TO SOCIAL PROTECTION
Tomasz Mickiewicz
ECONOMIC TRANSITION IN CENTRAL EUROPE AND THE COMMONWEALTH OF
INDEPENDENT STATES
Tomasz Mickiewicz
ECONOMICS OF INSTITUTIONAL CHANGE SECOND EDITION
Central and Eastern Europe Revisited
Milan Nikolic´
MONETARY POLICY IN TRANSITION
Inflation Nexus Money Supply in Postcommunist Russia
Julie Pellegrin
THE POLITICAL ECONOMY OF COMPETITIVENESS IN AN ENLARGED EUROPE
Stanislav Poloucek (editor)
REFORMING THE FINANCIAL SECTOR IN CENTRAL EUROPEAN COUNTRIES
Johannes Stephan (editor)
TECHNOLOGY TRANSFER VIA FOREIGN DIRECT INVESTMENT IN CENTRAL AND
EASTERN EUROPE
Horst Tomann
MONETARY INTEGRATION IN EUROPE
Pasquale Tridico
INSTITUTIONS, HUMAN DEVELOPMENT AND ECONOMIC GROWTH IN TRANSITION
ECONOMIES
Milica Uvalic
SERBIA’S TRANSITION
Towards a Better Future
Hans van Zon
RUSSIA’S DEVELOPMENT PROBLEM
The Cult of Power
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Decentralization and
Local Development in
South East Europe
Edited by
Will Bartlett
Senior Research Fellow in the Political Economy of South East Europe,
London School of Economics and Political Science, UK
Sanja Malekovic´
Senior Research Associate, Institute for International Relations, Zagreb, Croatia
and
Vassilis Monastiriotis
Senior Lecturer in the Political Economy of South East Europe,
London School of Economics and Political Science, UK
Editorial and Selection Matter © Will Bartlett, Sanja Malekovic´ and Vassilis
Monastiriotis 2013
Individual chapters © Contributors 2013
Softcover reprint of the hardcover 1st edition 2013 978-0-230-35563-7
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Contents
List of Figures and Tables vii
Notes on Contributors ix
Preface xv
Part I Introduction
1 Decentralization Paradigms in South East Europe:
An Introduction 3
Will Bartlett, Sanja Malekovic´ and Vassilis Monastiriotis
Part II Decentralization and Local Development
2 Puzzles in Local Development and Transformation in
South East Europe 29
Bruno Dallago
3 Less is More: Decentralization in Croatia and Its
Impact on Regional Development 51
Dubravka Jurlina Alibegovic´
4 Regional Policy and Decentralization in Montenegro 67
Will Bartlett and Božidar Šiševic´
Part III Decentralization in Ethnically Divided Societies
5 Decentralization and Regionalization in Bosnia–Herzegovina:
Context, Model and Implementation Challenges 83
Vesna Bojicˇic´-Dželilovic´
6 Decentralization in Kosovo: Defusing Ethnic Tensions
or Furthering Ethnic Isolation? 100
Lars Burema
7 Decentralization as an Effective Tool of State-Building?
The Cases of Bosnia and Herzegovina and Kosovo 118
Lana Srzic´
Part IV Implementation Deficits – Case Studies
8 Decentralization and Regional Policy in Romania
and Bulgaria 135
Cristina Matiuta
v
vi Contents
9 The Integration of Administrative and Fiscal
Decentralization: The Case of Albania 151
Englantina Gjini
10 The Role of the Third Sector in Providing Social Services
at the Local Level in Transitional Serbia 164
Marija Kolin
11 Strategic Planning of Local Economic Development
in Vojvodina 179
Dragiša Mijacˇic´
12 Towards Policy Entrepreneurship at Community Level:
The Impact of Decentralization on Local Public Services
in Macedonia 196
Marija Risteska
Part V Spatial Inequalities
13 The Nature of Spatial Inequalities in South East Europe
and the Scope for Decentralized Regional Policy:
An Analysis of Bulgaria and Serbia 213
Vassilis Monastiriotis
14 A NUTS2 View of Regional Inequality in Croatia,
1968–2008 231
Ivo Bic´anic´ and Vedrana Pribicˇevic´
Index 252
List of Figures and Tables
Figures
3.1 R evenues and expenditures of the sub-national
governments in revenues and expenditures of the
consolidated general government in 2006 (% of total) 55
3.2 Gross domestic product per capita in the Croatian
counties (in HRK, current prices) 57
5.1 N umber of municipalities by population 90
9.1 T ransfers from the central government to
LGUs (2004–11) 157
9.2 T he revenues of LGUs from local sources (2000–10) 160
11.1 Map of local self-government units
(cities and municipalities) in Vojvodina 185
12.1 Municipal perceptions on execution of decentralized
competences 205
12.2 Implementation of child protection competence
per region 205
13.1 Regional disparities across the NUTS2 regions
of Bulgaria (coefficient of variation) 216
13.2 Regional disparities across the NUTS2 regions
of Serbia (coefficient of variation) 217
13.3 Regional disparities at the district and municipal
level in Serbia and Bulgaria (coefficient of variation) 219
13.4 Geographical distribution of GDP pc and wages
across districts and municipalities in Bulgaria and Serbia 221
13.5 Spatial association of regional outcomes: Global
Moran’s I 223
13.6 Local spatial association in Bulgaria and Serbia 225
14.1 Croatian NUTS2 regions 237
14.2 Relative income per capita in NUTS2
regions (1969–2008) 245
vii
viii List of Figures and Tables
Tables
2.1 Territorial organization in SEE 33
2.2 S ize of local governments in SEE, 2003
(2009 data in parenthesis) 34
2.3 N umber of SMEs in South East Europe (2007) 38
2.4 R anking on ease of doing business (2011) 39
2.5 D ispersion of regional GDP at NUTS2 level,
per inhabitant 40
2.6 S ome indicators of malaise in South East Europe 42
2.7 S ocial security and social protection (2003) 43
3.1 R evenues and expenditures of the sub-national
government in revenues and expenditures of the
consolidated general government and in GDP 53
3.2 S tructure of sub-national revenues (%) 59
3.3 D ecentralization and regional development 61
6.1 N ew municipalities in Kosovo 103
12.1 Childcare facilities in Macedonia by region 203
13.1 Relative importance of intra-regional disparities
in Serbia and Bulgaria 220
14.1 Disparities and inequality of Croatian counties 238
14.2 Relative economic density in NUTS2 regions 246
14.3 Intra-regional inequality levels 247
14.4 Spatial Gini coefficients and the decomposition
of the Theil index for Croatia (1969–2008) 248
Notes on Contributors
Editors
Will Bartlett is Senior Research Fellow in the Political Economy of
South East Europe at the London School of Economics and Political
Science and Honorary Professor at both the London School of Hygiene
and Tropical Medicine and the School for Policy Studies, University of
Bristol. He has an MA in Economics from the University of Cambridge, an
M.Sc. from the University of London and a Ph.D. from the University of
Liverpool. He has lectured in Development Economics and Comparative
Economic Systems at the Universities of Southampton, Bath and Bristol,
and from 1983 to 1986 was Research Fellow at the European University
Institute in Fiesole, Italy. His current research covers economic and
social development in South East Europe. His book Europe’s Troubled
Region: Economic Development, Institutional Reform, and Social Welfare in
the Western Balkans was published by Routledge in 2008. His research
has been funded by the UK’s Economic and Social Research Council, the
Leverhulme Trust and the British Academy and he has published widely
in refereed academic journals. He has also applied his research knowl-
edge in practice as a consultant and senior advisor to the European
Commission, European Parliament, European Training Foundation,
World Bank, OECD and other international organizations.
Sanja Malekovic´ is Senior Research Fellow in the Institute for
International Relations, Zagreb. She holds a Ph.D. from the Faculty
of Economics, Zagreb, on The New Approach to Regional Development in
Croatia (1997). She has been visiting lecturer at the Postgraduate Course
on European Studies at the University of Padua (EU Cohesion Policy)
and is currently lecturer at the Postgraduate Course on EU Economics
at the Faculty of Economics in Zagreb. She has been engaged as team
leader and expert on a number of projects supported by the EC, UNDP,
World Bank, ILO, and Croatian central and regional government insti-
tutions related to regional development policy, the development of
entrepreneurship, as well as evaluation of development programmes.
Her most recent research contributions relate to local and regional
development, regional policy and decentralization, regional competi-
tiveness and evaluation of development programmes.
ix