The Situation and Perspectives of Local Economic Development in Bosnia and Herzegovina

Abstract

Local economic development is the process through which local authorities, together with public organizations, non-governmental sector and enterprises, develop a better business environment. Modern policies of local economic development are taking on an increasingly equal role with the private sector, facilitating its development and management of business. Such policies are often developed in the form of partnerships between the public and private sectors, which aim to support private investment for the benefit of the entire social community. Local economic development has been a part of the development policy of Bosnia and Herzegovina for the last ten years. The strategic approach has enabled local communities to enter the reform processes and to adapt their capacities to the demands of the global market from the beginning. With the advent of new theoretical approaches, the foundations of the theoretical basis of local economic development were laid. The active role of the local community and the planning of economic development from the local level has enabled a different perspective and approach to the basic strategic directions of development of national economies in developed countries.