Local Economic Developement And Modernization Of Local Governance In Bosnia Herzegovina
Local Economic Developement And Modernization Of Local Governance In Bosnia Herzegovina

Summary/Abstract: The purpose of this paper is to show the correlation between reform of governance in 72 BIH municipalities and local socio-economic and infrastructure development. The paper is a synthesis of eight years of monitoring of impacts the multi-faceted municipal reforms had on the communities undertaking the reforms. The examining period is from 2004 to 2012. The municipalities that are subject of this study are geographically, politically and in terms of size and stage of development equally spread throughout Bosnia and Herzegovina. In the paper we first provide a theoretical basis for understanding of the factors of the local economic development and we discuss several LED indicators. Main avenues of the municipal reform are discussed in the second, analytical section, as follows: modernization of the municipal services, urban permitting and spatial planning, municipal budget and finance and managing the development planning and infrastructure development. In the third section of the paper, we put the described reforms in a correlation with the empirical evidence on socioeconomic development, from which we draw conclusions on the reforms’ impact on LED and intensity of its correlation to the selected indicators.

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