Market globalisation and liberal economy concept both contributed to local economic systems suffering from the burden imposed by competition from around the world. National economic planning departments and competitiveness development policies have not succeeded to establish mechanisms to adequately respond to these challenges. This created a niche for a more significant role of local (and regional) authorities in developing conditions and solving problems caused by opening of domestic markets. Thus, local self-governments, more than ever, became involved in planning of economic development and improvement of business environment in their respective territories. With that goal, local self-governments put efforts in attracting investments, building industrial zones and parks, establishing business incubators, developing strategic and planning documents that prioritise public investments, public-private partnerships and many other instruments aimed at improving economic growth and employment on the local level.

Source: email by Tatjana Potezica, Operativni menadzer / Operations Manager, Institute for Territorial Economic Development (InTER)