Annual Development Objectives and Intermediate Results Report #3: Sustainable Local Development Project in Serbia

The project focuses on inter-municipal cooperation, public administration reform, and youth development, with the ultimate goal of creating a business-friendly environment and increasing economic opportunities in targeted regions. The project has undergone significant changes since its inception, with a revised approach focusing on the economic side of inter-municipal partnerships. The project has been re-organized from five to three components, with a clear focus on activities that are economically feasible, add jobs, and increase business sector revenues. The main operational mechanism for these activities is the New Criteria Program (NCP), an Inter-Municipal Cooperation (IMC)-based economic development plan that aims to support business development through activities that attract foreign direct investment (FDI) and expand revenues of the small and medium-sized enterprise (SME) sector. The project's performance monitoring plan (PMP) has also undergone revisions, with a focus on economic growth opportunities, IMC concepts with economic benefits, high-level project attribution, and clear and effective communications and reporting. The revised PMP measures a volume of business sector revenues, investments, and job creation resulting from these investments, as well as employment of directly assisted youth. The project's implementation goals are to employ available project resources, including technical capacity, short-term technical assistance (STTA), subcontracts, and grants, to support various aspects of IMC economic development concepts and projects. The project aims to act as one team, with technical components working together to ensure the best possible use of resources and avoid a "stovepipe approach." The project's mid-term evaluation provided recommendations that were in line with the concerns and challenges identified and raised by the project team before the evaluation. The project team plans to work on reporting on the impact, which will be based on the project's direct contribution to two groups of economic results: investments attracted and expansion of the business sector, which all lead to job creation, the project's absolute priority. The project remains fully aligned with USAID's strategic goal of "Serbia's Stability and Euro-Atlantic Integration Advanced" and development objectives "DO1: Accountability of Key Democratic Institutions Strengthened" and "DO2: Conditions for Broad-Based Inclusive Economic Growth Improved." However, some adjustments in the proposed PMP revision may be needed to adapt it to the new USAID Strategy, especially on the level of intermediate results and the project's corresponding indicators. The project's third Annual DO and IR Report covers the third year of project implementation for the period of October 1, 2012 – September 30, 2013. The report provides a status update on the project's performance indicators as of September 30, 2013, and serves as a PMP status report for the project's performance indicators. The project's focus on inter-municipal cooperation, public administration reform, and youth development has led to significant progress in creating a business-friendly environment and increasing economic opportunities in targeted regions. The project's revised approach and revised PMP have helped to focus the project's efforts on economically feasible activities that add jobs and increase business sector revenues. The project's commitment to acting as one team and avoiding a "stovepipe approach" has also helped to ensure the best possible use of resources. The project's impact on the local economy has been significant, with a focus on creating jobs, increasing business sector revenues, and attracting foreign direct investment. The project's efforts to support youth development and increase their competitiveness in the labor market have also been successful, with a focus on educational programs, internships, and support to young entrepreneurs. The project's partnership with the private sector, civil society, and local governments has been crucial in achieving its goals. The project's focus on creating a business-friendly environment and increasing economic opportunities in targeted regions has helped to attract investment and create jobs, contributing to the overall economic growth and development of Serbia.