Kako vlasti u Srbiji podstiču lokalni ekonomski razvoj
How Local Governments in Serbia Stimulate Local Economic Development

Summary/Abstract: This article focuses on various developmental strategies and practices in cities of Serbia. The biggest cities have the best potentials for economic development based on the available capacities and the largest market (economy of scope). In this paper we will also focus on Inđia, which although small in size is one of the LED leaders and innovators. The main research methods used in this paper are in-depth analysis and case studies. The first part of the study will briefly present Serbia as a political and economic society, with its potentials and limitations in political and economic reforms, focusing on the processes of decentralization, democratization, regionalization and modernization. The second part will identify capacities of local governments, and especially cities, for strategic planning, focusing on comparative advantages of their local economies at global or regional market, for creating an attractive ambient for investment, offering qualitative and efficient administration, creating integral and participative economic policy, capacity for evidence based policy making, benchmarking, branding cities, etc. Special attention will be dedicated to the use of LED instruments such as: regulation, the upgrade of quality of public services by IT instruments, privatization, PPP, industrial, technological, and scientific parks, incubator business centers, free trade zones, etc.

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