Efficient Local Administration in the Function of Economic Development and European Integration

Local self-governments in Montenegro recognise the importance of improving the business environment and are ready to work on modernising the local administration. This was the message conveyed at the conference “Efficient Local Administration in the Function of Economic Development and European Integration”, organised at the Chamber of Commerce of Montenegro on 13 March.

The President of the Chamber of Commerce of Montenegro, Dr Nina Drakić, stated that the efficiency of local administration directly affects the pace of investment implementation, the development of local economies, and the overall competitiveness of the country.

“Local self-government that understands the needs of the business community, simplifies procedures, enhances transparency and actively works on creating a favourable investment environment becomes a strong driver of economic development. Therefore, the continuous strengthening of the capacities of local self-governments is one of the key issues for their further development,” said Drakić.

She emphasised the importance of strengthening the capacities of municipalities so that they are prepared to utilise the opportunities offered by European funds, which is further supported by cooperation with state institutions and the business community. 

“An example of such cooperation is the Business Friendly Certification – BFC programme, which helps local self-governments improve the quality of administrative procedures and develop a partnership with the business sector. The BFC certificate represents confirmation that a municipality has undergone a demanding process of analysis and improvement of its operations and is ready to continue with further reforms.”

She concluded that the example of the municipalities of Žabljak and Bijelo Polje, having successfully completed the BFC recertification process, as well as Bar and Tuzi, which obtained the certificate for the first time, demonstrates that local self-governments in Montenegro recognise the importance of improving the business environment and are ready to modernise local administration. 

“A municipality that is decentralised, digitalised and transparent is not merely a ‘service’ – it is an engine of the economy and a key partner in implementing European standards. Montenegro must seize the historic opportunity to become the next member of the European Union. Accordingly, our local self-governments must become strong and resilient as soon as possible,” said the Minister of Public Administration, Marash Dukaj.

According to the Minister, the Ministry of Public Administration, with the support of international partners, is achieving results in several key areas: digital maturity, including a functional analysis of the work of local self-governments focused, among other things, on the real needs of the economy; cooperation infrastructure, developed in partnership with UNOPS, which has enabled municipalities to access the unified data exchange system (GSB); human resources, through the implementation of training programmes for local government officials in line with new technologies; and investments and funding, supported by the “Municipalities for the EU” project and new infrastructure grants aimed at strengthening the capacity of local teams to absorb European funds.

Riccardo Serri, Head of the Section for European Integration, Political Affairs, Media and Information at the Delegation of the European Union to Montenegro, emphasised that strengthening the quality, efficiency and transparency of local public administration is crucial for citizens’ daily lives and business development. He pointed out that administrative capacity is not an abstract concept, but something directly reflected in the concrete services used by citizens and businesses, from issuing building permits and registering companies to obtaining various public certificates.

Chamber of Economy of Montenegro

“Strong and well-organised municipalities are essential for the European integration process, as a significant portion of legislation and policies aligned with European Union standards is implemented precisely at the local level,” Serri stated. He also highlighted the importance of EU projects in Montenegro aimed at strengthening the capacities of local self-governments, including initiatives that provide direct support to all municipalities in aligning with European standards and preparing for the management of European funds.

Within the first panel, dedicated to the experiences of local self-governments in improving the business environment, the moderator was Ana Ilić from NALED. She emphasised that strengthening an efficient and professional local administration that supports economic development and European integration is particularly important, especially in the context of Montenegro’s accelerated negotiations with the European Union.

The President of the Municipality of Bijelo Polje, Petar Smolović, stated that this municipality was among the first in Montenegro to initiate the BFC certification process. Through this process, numerous administrative procedures were digitalised, local taxes were reduced, business zones were established, and digital services for citizens were introduced. These measures significantly improved the transparency of the administration’s work and created a more favourable environment for investment and entrepreneurship development.

Dušan Raičević, President of the Municipality of Bar, emphasised that the BFC certification process helped the local administration identify and remove administrative barriers, improve operational efficiency and the digitalisation of services, while strengthening cooperation with the business community and programmes supporting entrepreneurship. Thanks to these efforts, Bar is today recognised as one of the more transparent and business-friendly local self-governments in Montenegro.

The President of the Municipality of Žabljak, Radoš Žugić, pointed out that through the certification process the transparency and availability of information have been improved, digital services such as online payments and application submissions have been introduced, as well as the “Invest in Žabljak” platform, further positioning the municipality as an open destination for investment and enabling its successful participation in several projects financed by EU funds.

The Secretary of the Secretariat for Development and Projects in the Municipality of Tuzi, Emin Haxhi, highlighted that the local administration in Tuzi has significantly improved the business environment by reducing communal fees by around 50 per cent, strengthening cooperation with the business sector and establishing the “Business Tuzi” platform, which provides investors with clear information about available locations and investment opportunities in the municipality.

The second panel focused on the readiness of local administration for new opportunities brought by the European integration process.

Chamber of Economy of Montenegro

The panel was moderated by Miljan Šestović, Director of the Research and Analysis Sector at the Chamber of Commerce of Montenegro, who noted that municipalities have numerous international and national financial instruments at their disposal to strengthen their efficiency and improve the business environment.

The Director General of the Directorate for Coordination of EU Financial Assistance in the Ministry of European Affairs, Bojan Vujović, emphasised that Montenegro can expect significantly greater resources from European funds in the coming period—six to eight times more after joining the European Union. Therefore, it is important to prepare projects in a timely manner and involve local self-governments in the preparation of key strategic documents for the use of these funds.

The Director General of the Directorate for Local Self-Government in the Ministry of Public Administration, Nina Blažić, highlighted that digitalisation, strengthening municipalities' capacities, and improving inter-institutional cooperation are key priorities of local government reform. Through digital transformation projects and the “Municipalities for the EU” initiative, municipalities are receiving concrete support to develop digital services and prepare projects for European funds.

The Assistant Director of the Eco Fund, Nemanja Peković, emphasised the importance of well-prepared, mature projects for accessing available funding. He noted that the Eco Fund, through public calls and financing programmes, has, for years, cooperated with local self-governments to implement projects in environmental protection, energy efficiency, and the development of the circular economy.

The President of the Assembly of the Union of Municipalities of Montenegro, Dr Jelena Borovinić Bojović, emphasised that a large portion of European policies and development projects are implemented at the local level. Therefore, continuous strengthening of municipal capacities to utilise EU funds is essential, supported through training, the exchange of experiences, and expert assistance in project preparation.

The conference was moderated by Marija Stanišić from the Research and Analysis Sector of the Chamber of Commerce of Montenegro.