Municipalities should become promoters of economic development

<p>The KLGI Institute held the fourth module of the LGA program, during which it was discussed about finances, economic development and social cohesion in municipalities. The goal of this module was to identify the challenges and prospects of local finances, as well as the important role of enterprises in local economic development and service delivery.<br /> <br /> Lecturers at the first training session were Mr. Salvador Elmazi, Director of the Department of Budget at the Ministry of Finances and Mr. Besnik Tahiri, Executive Director at the KLGI Institute. Regarding local finances and inter-institutional communication, Mr. Elmazi has pointed out that several problems have been identified and require solutions. Such problems cannot be addressed without legal changes that enable greater financial discipline, budget but also flexibility.<br /> <br /> One of the key challenges was considered to be the financing formula which does not coincide with efficient services. This comes as a result of decision-making without professional, sustainable basis, as well as a preliminary analysis. Therefore, there is a need for thorough and detailed analysis before making decisions.<br /> <br /> Special emphasis was also placed at the discretion of line ministries for capital investments in municipalities. It was a common conclusion that the Law on Local Government Finances should analyze the power of municipal discretion or become smaller.<br /> <br /> Meanwhile, in the second session, Mr. Agron Maxhuni, the General Secretary – MTI, addressed the role of small and medium enterprises and their impact on economic development and Mr. Besim Kamberaj, the Head of the Department for Regional Cooperation and Development addressed the role of inter-municipal cooperation.<br /> <br /> The municipality as a first hand state needs to boost with local economic development. Through strategic economic investments, the economic prospect may have success based on the natural capital that exists in small municipalities; the policies and incentives that the line ministries should establish; and in particular the involvement of the private sector in localities with local economic development capacity.<br /> <br /> The private sector should be supported as it is the only address for local economic development and employment. The functionality and coordination of the institutional stakeholders (triangle; line ministries – municipality – private sector) is necessary.<br /> <br /> Other approaches are only short-term policies and have no real effects on unemployment alleviation. Therefore, the coordination of central and municipal level policies is a necessity of time.<br /> <br /> Within the LGA program there are 30 members, a high level of representation of the participating municipalities: Pristina, Suharekë, Dragash, Mamusha and Kllokot. This group also includes members from MLGA, National Auditor's Office and Civil Society.<br /> <br /> This module is supported by the Royal Norwegian Embassy and Friedrich Ebert Stiftung <br /> </p>