STRATEGIC DOCUMENTFOR AN INTEGRATED, INNOVATIVE AND

SUSTAINABLE DEVELOPMENT OF THE REGION

2017 - 2020

Strategic Document for an Integrated, Innovative and Sustainable Development of the Re-gion 3 is the fundamental document of the profile of development, priority sectors, objectives and measures that RDA 3 will undertake to promote a common policy on integrated invest-ments for region development and its potentials, to encourage a widest cooperation model, to create a public-private partnership of mutual development, to set up regional and inter-regional networks, to reduce the gap between the developed and more less developed areas, and to implement public and private projects to develop the territory in all relevant sectors in the level of information, infrastructure and services.

The Strategic Document will contain the following sections:

The first section will present the vision, mission and the goals of RDA3

The second section contains an analysis of the development profile of Region 3 concentrated

at natural, social and economic capital of Region 3.

The third section summarizes the legal and institutional framework of RDA3 operation and

partnerships and cooperation actors.

The fourth section treats the EU approach for regional development focused on EU policies

and programs on regional development as well as the best practices of European agencies on regional development.

The fifth section does the SWOT analysis of main components of the Region 3.

The sixth and seventh section presents the strategic priorities, objectives and measures that

RDA 3 has to undertake, the level of intervention as well as the desired results to achieve the midterm objectives.

The ninth section summerises the strategic document in a sole matrix.

TABLE OF CONTENT

1. INTRODUCTION: RDA3 AT A GLANCE 41.1 VISION 41.2 MISSION 51.3 PRINCIPIALS 61.4 STRATEGIC PROGRAMS 62. THE PROFILE OF THE REGION 3 82.1 The Natural Capital 92.2 The Social Capital 102.3 The Economic Potential 123. THE INSTITUTIONAL SET-UP 143.1 The Legal Framework 143.2 The Organizational Structure 143.3 Partnership and Stakeholders 154. NEW MODELS OF REGIONAL APPROACH 164.1 EU Approach to Regional Development 164.2 EU policy and programs on Regional Development 164.3 Best Practices on Regional Development Agencies 195. THE SWOT ANALYSIS 215.1 Human Resources and Labour Market 215.2 Infrastructure 215.3 Agriculture and Forestry 215.4 Economy and Business 215.5 Other Sectors 216. STARTEGIC PRIORITIES AND OBJECTIVES 26Priority 1: Sustainability 26Priority 2: Growth 26Priority 3: Connectivity 27Priority 4: Innovation 27Priority 5: Creativity 277. LEVEL OF INTERVENTION 298. DESIRED OUTCOMES 308.1 Quality of Life 308.2 Environmental Sustainability 308.3 Production Growth and Regional Competitiveness 308.4 Capacity Building and Human Capital Empowerment 318.5 Regional Branding & Visibility 319. MATRIX ON STRATEGIC DOCUMENT 32

The Regional Development Agencies are established in parallel with the implementation stage of new Territorial Reform on the organization of local government as a necessity for the regionalization, reor-ganization and reorientation of the investments and priorities in a larger territorial concept, for the right influence and greater impact at the developing programs in economy producing a functional cohesion with the national strategic policies. The differentiated socio-economic developments of different parts of the territory covered by this region will be treated aiming to mitigate the social-economic differences of the less developed areas.Upon the approval of the Decision of the Council of Ministers no. 961, date 02/122015, “For creating, organization and functioning of the National Agency for Regional Development, Regional Development Agencies, and Regional Economic Development Agency” the Albanian government has established the general framework of functioning and organization of the Agencies for Regional Development. In this context, and based on a rage of strategic documents there are hereby defined the operating funda-mental bases of RDA 3 and the working guide for the Agency to be implemented.

1.1 VISION

Regional Integrated – Sustainable – Innovative Growth through the development of all relevant sectors at the level of communication and promotion – physical infrastructure – and services.

RDA work for the regional economic development will be focused on 2 areas:•TourismaspartofthevisionofKorce-Elbasan-Beratregionandthekeydriveroftheeconomicdevelopment in the whole region.•Agricultureasaprioritysectorwherethemostpartofthisregionpopulationisengagedandthekey backbone of the economy for the whole area.

These two development areas tourism and agriculture are based on the “National Strategy for Develop-ment and Integration” 2014-2020, as key sectors offer substantially untapped growth opportunities. Both sectors strongly give contribution for increasing competitiveness and growth. They are a guarantee for Albania to be transformed in an attractive location for domestic and foreign investors, bringing innova-tion and employment along with them. In this context we emphasize as follows:

Enhancing Competitiveness and Growth through High Quality and Sustainable Tourism

INTRODUCTION: RDA3 at a Glance1.

1DevelopmentGuidelinesofRegionalDevelopmentAgency(DistrictElbasan,Korca,Berat)ApprovedbytheBoardofPartnersforDevelopmentDecision,No.6,date08.03.2016, Chief Executive Director Litian Broka

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Whilst tourism has made an important contribution to our recent growth performance, the vast size of the regional tourism market indicates a largely unexploited potential. Unlocking this potential will provide a substantial stimulus to economic growth in the Region 3. The full potential of the sector over recent years has been constrained, however, by poor roads and public utilities as well as by unregulated waste disposal, illegal construction and insecure property rights. In what has largely become a homog-enized tourism world, Region 3 has a great deal to offer: the magnificent World Heritage Sites, unspoiled mountain terrains, its lakes and rivers.

Enhancing Competitiveness and Growth through Innovation in Agriculture Agriculture has traditionally been the backbone of the Albanian economy, a sector of great importance providingbothfoodandincomeforthemajorityofAlbaniansespeciallyofKorca,ElbasanandBeratdistrict. The agriculture sector declined in importance compared to other sectors over the last twenty-five years, facilitating the overall growth in the economy by releasing labour to more productive sectors rather than through productivity increases in the sector itself. It remains traditional in its technological characteristics, with a very low concentration of farms operating commercially and production tech-niques that for the most part remain to be fully modernised. Only 64% of agricultural land in Albania is currently utilised.Other key challenges in the sector include: enhancing competitiveness of agriculture and agro-process-ing; enhancement of farm size through land consolidation and land market development; improvements in technology and innovation transfer systems through extension services; improvement of supporting infrastructure toaccessmarkets (domesticandabroad);anddiversificationofactivities thatgenerateincome in rural areas.All the priority programs elaborated below will be focused on these two main sectors.

1.2 MISSION

The mission of the RDA3 is to project, coordinate, assist, manage and promote the Region3: RDA3 mision is the promotion of joint and integrated investment policies and potencials for the region devel-opment, encouraging a model of wide cooperation, creating public – private partnerships of common development interest, developing the cross – regional network, reducing the gap among most and less developed areas and implementing public and private projects. The work of RDA 3 will be focused on four main axes:

Infrastructure Investments and supporting programs for strengthening the touristic, historic, cultural and natural potentials and promotion of the authentic values of the region. Agricultural Economy Potentials strengthened with focused on supporting assistance programs and investments infrastructure in priority sectors and showing a specific interest in branding and commercialization and regional autochthonous products.

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2Best Practice Guidelines for Regional Development Strategies and Spatial Planning in an Enlarged EU, December 2005, Cardiff University.

Service and Innovative Professions development and the encouragement of the typical professions and crafts of the area supported.Smart Cities as an innovative concept in modernization of the biggest cities of the region created and supported.

1.3 PRINCIPIALS

The characteristics and qualities of an effective regional development strategy should have the following key characteristics of a well-designed and effective regional development strategy.

An effective regional development strategy: 2 – is embedded in its organisational, economic and social context; – establishes a widely-shared vision for the future development of the region; – engages stakeholders in an open and productive manner during preparation of the strategy; – communicates its key messages clearly to a variety of audiences; – identifies clear mechanisms for delivery; – phases and sequences key investments and actions; – establishes a simple but eff ective framework for monitoring

1.4 STRATEGIC PROGRAMS

SMART Region: Smart urbanism / smart energy / smart mobility / smart water / smart public services / smart buildings / IoT and smart data center / smart society / smart care / smart space / smart environment.RDA will promote and support the creation of “Smart Cities” in the Region 3. Application of the new technologies for the services in the city developing will be done on:

•Thecontemporarypublictransport•Innovativepubliclighting(LEDlighting,withsolarpanels.)•Uniqueservicecenterwithsoftwaresuitabletohelpthecitizensinthepublicservices.•Centerofinformationinthekeypointsoftheregionwithinformationaboutproductsand values of the region.

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CREATIVE Region:

Cultural Routes, Creative City and Poles, Tourism and Related Industries,

•Developmentstudieswithtouristpotentialthroughouttheregion.•Promotionsoftheregionvaluesintourismandagriculture.•Touristicinformationandaccessibleconnectinginfrastructure:

Regional GROWTH:Natural Resources, Rural Development, Production Infrastructure, Urban Markets and Retail Systems, Local Governance and Management, …

•LocalEntrepreneurshipSupport(startup)•Brandingofareasandregionalproducts•Promotionsoftheregionvaluesintourismandagriculture.•Professionaltrainingofcrafts(artisans),agriculturalservicesandtouristicservices.•Preparationofmarketsandsuitablelocationsfordevelopmentandpreservationoftheproduc-tion and marketing of products of the region.•Providesupportschemesforentrepreneurshipthatproduce,serveandtradeintheseareas.•Technicalsupportformanufacturingoftheproductsthatpromotethevaluesofthearea.

The ways of developing priorities:

During its activity the Agency supports every activity in the above priorities by classifying each request for funding and investment in one or several of these priorities.Itmayaloneorinpartnershipwithstakeholders(municipalities,publicorprivateentities)toapplyandlook for opportunities to implement these priorities with specific projects.The agency also assists and provides technical support to the stakeholders that are interested to apply or implement their part of the projects which are part of the above priorities.

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The PROfIle of the Region 32. Region3issituatedinthecentre-south-eastAlbaniaandcomprisestheqarksofElbasan,BeratandKo-rçë, with a total area of around 8,619 km2. The region is composed of 18 municipalities (as constituted aftertheterritorial-administrativereformandlocalelectionsofJune2015).Theoverallpopulationbasedon INSTAT data for 2016, is 221,706 inhabitants.

Figure 1: Region 3

Table1:Region3(Korçe,Elbasan,Berat)mainindicators

Figure 2: Region 3 in the national plan

Qark of Korçe Qark of Elbasan Qark of Berat Total Region 3

Area (km2) 3,530 3,283 1,806 8,619

Population (2016) 221,706 298,913 139,815 660,434

GDP per capita (2014) ALL 355,933.00 ALL 342,274.00 ALL 346,337.00 ALL 347,735.00

GDP (2014) ALL 81,806,000.00 ALL 104,986,000.00 ALL 51,673,000.00 ALL 238,465,000.00

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Figure 2: Region 3 in the national plan

2.1 The Natural Capital

The territory of Region 3 corresponds with 3 out of the four morphometric subdivisions of Albania, namely the coastal lowland, the central and the southern mountainous areas. These geo-physical coin-cidences represent a major impact factor on the climate, biodiversity, abundance of natural assets and resources and opportunities for tourism and rural development in the region. The flat terrain areas are knownasthefieldsofElbasan,KorçëandBeratandtheupperandlowerstreamvalleysoftheDevolliriver,allimportantpartsoftheagriculturallandsysteminAlbania:KorçëandDevolllandshavebeenfor centuries cultivated with grains and mixed farming products such as potatoes, vegetables, orchards, and also tobacco and sugar beets, as well as used for breeding livestock; the area of Berat, Devolli lower streem valley, and Elbasan field have been cultivated with permanent crops such as orchards of olives, citrusandgrapesandmixedcrops(grains,potatoes,vegetables,cottonandtobacco)3; The Region 3 is very reach in water resources: The Ohrid Lake and the two Prespa lakes are located in the north-east of the region and constitute valuable natural resources. Ohrid and Prespa lakes are classified as protected areas from the environmental legislation. The Ohrid Lake has around 200 endemic species and is declared UNESCO World Heritage Site in 1979. Prespa lakes, the highest lakes ecosystem in the Balkans, have several small islands and 39 endemic species. The Small Prespa is particularly recognised as an important wetland ecosystem for rare water birds species breeding and feeding. Fishing outside the allowed season remains a key problem in the conservation efforts to the Prespa lakes4. Moreover, the dif-ferent rivers flowing through the Region: Shkumbin, Devoll and Osum. The river basins areas are 2,445 km2, 3,130 km2 and 2,150 km2 respectively5. Shkumbin has the character of a typical mountain river within the region and changes it when crossing towards the coastal area. Its upper streams and affluents are impetuous and worth exploring during hiking and touristic trips. Osum and Devoll on the other hand flow through dramatic scenery, which is reflected also by the high drainage density of the respective watersheds6. Both rivers constitute valuable assets for tourism, though Devoll may be compromised in this regard, due to two major hydropower plants being built on its stream (above and below the munici-palityofGramsh)andsmalleronesbuiltontheaffluents,suchasthehydropowerstationexploitingthewaters of the famous Sotira waterfall.Theaboveaccessibilityfeaturesareduetothesteepterrainanda(yettobedeveloped)roadnetworkthatthemoreentersthehinterland,themorefollowstopographyandthusincreasestraveltime.Korçaand Pogradec, the main cities located in the eastern part of the region, are 3-4 hours travel time from the coast and port of Durrës, and the time increases further when making

3Country Pasture/Forage Resource Profile, http://www.fao.org/ag/agp/agpc/doc/counprof/Albania/albania.htm#3.CLIMATE 4TourismintheKorçaRegion,Thestrategyforthedevelopmentoftourism,QarkCouncil,2014http://www.korcaregion.com/index.php?lang=1&idm=105&idr=52&mod=1,accessed, May 2016. 5Pasuritë ujore të Shqipërise, 2008, Niko Pano, Akademia e Shkencave 6GjeografiafizikeeShqipërisë,1991,FarudinKrutaj,ValinGruda,MevlanKabo,NasipMeçaj,PerikliQirjazi,SkënderSala,TrifonZiu,VasilKristo,VasilTrojani.

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a way into the mountainous and rural setting. These prolonged travel times are quite discouraging to the demand for touristic products in the area. The environmental, ecological, esthetical and economical functions and values of the protected areas are various and of great importance to the overall development of the region. Most of these areas are located along the border with Greece and FYROM and classified as of cross-border significance, because of allowing for movement of species at regional/Balkan level and functioning as bio-corridors and core habitats. As most of the Albanian territory, this region has a rather Mediterranean climate. The impact of the Mediterranean climate is strongly present on the territory and hydrography network till the entrance of thefieldsofKorçaandMaliq.Theclimateoftheregionhasastrongcontinentalinfluence(thisiswhyKorçaisoneofthecoldestcitiesinAlbania)andbecauseofthelocationbeingsurroundedbymountains,summer temperaturesarealsohigh inKorça (cityandsurroundingfield).Thisclimaticcombinationmakes it a great location for development of different types of tourism during all seasons.The area is rich in terms of biodiversity and the total protected area (classified based on the Albanian legislation7)constitutesaround15%oftheregion’sterritory.Theenvironmentallyprotectedareasconsti-tute an ecological and social-economic valuable asset for the region. For instance the Gërmenj national park,locatedinthesouthernpartoftheKorçaqark(Kolonjë),isveryreachinfaunaandhasvaststun-ning forests; it is very suitable for eco-tourism and hiking trails. The national park of the Prespa lakes is famous for the diversity of terrestrial and aquatic ecosystems, including rare water bird species (for instancetheDalmatianpelican),butconstitutesaswellthelargestenvironmentallyprotectedareainthecountry, while hosting rural settlements. This mixture of habitats makes it a very unique tourist destina-tion. The mountainous areas, such as Gramozi, Morava, Dardha, and Tomorri offer opportunities for all-year tourism, from hiking and alpinism to skiing and pilgrimage, though no significant touristic ac-commodations and facilities are built to match these opportunities and increase access to the area. The accesstoJabllanicë-ShebenikandValamare(northandcentreoftheregionrespectively)asunexploredintegral ecosystems is almost inexistent.

2.2 The Social Capital

Region 3, with the exception of Elbasan city, has no development pressures and population in this region has been in constant decline since 2001. This decline is widely attributed to different factors: the rural areas, which constitute a very large portion of the territory of each qark, have experienced major popula-tion decrease due to internal and external migration; the proximity of Elbasan city to Tirana has induced the local population to settle and live in Tirana, while still being able to work in Elbasan; external migra-tionhasbeenakeytendencyforthepopulationofKorça(bothurbanandrural),duetotheproximitywith Greece. It is noticeable that in this Region population movement has different patterns in each qark, and this is also reflected in the

7Law no. 8906, date 06.06.2002, “On protected areas”, as amended.

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economic and welfare structure and performance, which is unevenly distributed across the regional ter-ritory. This means that strategies and investments to increase economic performance and retain popula-tion in the region should be different in different qarks and sometimes, also municipalities. The ageing index varies from a very low one in the northern part of the region to a very high one in the south (main-lytheqarkofKorçë).Agedependencyisthehighestamongthe4regions,becauseallthreecomposingqarks have high age dependencies and significantly above the national value. Educationisakeyaspectoftheregionintwodimensions:i)thepotentialforinvestingfurtherintothissectorasabasisforboostingeconomicgrowthfromotherproductionsectors;ii)intermsoftheyetun-derdeveloped social capital, but with good strengthening potential. To date, each qark has a public uni-versity,namelytheUniversityofKorçë“FanNoli”specialisedineducation,tourismandhuman/naturesciences and University of Elbasan “Alexandër Xhuvani” with 5 faculties, specialised in nature sciences, economics, foreign languages, education, social and human sciences and some medicine specializations. Next to higher education institutions, there are also 4 public VET schools in Elbasan with a focus on industrialandtechnologicalprocess,tourismandsomearts;6inKorçëwithvariousspecializationsandamong others also agribusiness and food processing technologies; and another 4 in Berat where agribusi-ness and tourism are some of the subjects. The profiles taught at the universities are important not only totheregionaldynamicsandneeds,buttothenationaljobs’marketaswell.VETschools,ontheotherhand, provide a unique opportunity for educating the local and regional workforce on the professions that are key to the overall development profile of the region, such as tourism, agriculture, food processing industry and related agribusiness. Regarding the healthcare services, the Region 3 has benefited from 11% of the state budget expenditures in2015,beingrankedsecond,butwithahugedifferencefromRegion2(70.5%).Elbasanasaqarkhasthehighestnumberofthetotalhealthcareserviceproviders(12.2%in2013)amongthe12qarks,KorçëisverysimilartoTirana(with11.3%)whileBeratqarkhassomeofthelowestvalues(7.2%).Thenumberof hospitals in Region 3 is the highest among the 4 regions and the number of beds per 10,000 inhabitants isalsohighforElbasanandKorçë(16-18percentagepointsabovethenationalaverage)andverylowforBerat(14percentagepointsbelowthenationalaveragein2013).The poverty analysis ranks this region at the best position among the four, with the lowest poverty gap (12%),povertydepth(2.4%)andpovertyseverity(0.7%).Albaniahasvaluesof14.3%,3%and1%foreach indicator respectively. These better figures could be dedicated to the lower population levels in this region, combined with average or higher economic development levels. Finally, each qark council and several local government units within each qark in Region 3 (before and aftertheterritorialreform)havebeenactiveinimplementingdevelopmentprojects.Forinstance,IPAcross-border projects are some of the most significant cases that show for good efforts of local govern-ments and qark councils engaging in development activities.

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The region is eligible for IPA CBC with Greece and FYROM. Projects selected since 2007 have focused on themes such as: promotion of new and renewable energy sources, eco-tourism destinations, biomass exploitation for energy, health issues, education and technology, biotourism for economic development, economic clusters, promotion of Prespa lakes cultural heritage, management of water resources in cross-border areas, cultural and musical traditions in the CBC areas, vocational education, employment of vulnerablegroupsandethnicminoritiesetc.Implementationpartners(leadornot)fromAlbanianside,include not only the qark councils, or key municipalities, but also Government`s institutions (i.e. the MinistryofEconomicDevelopment,Tourism,TradeandEntrepreneurship,thePrefectures,etc.),localandregionaluniversities(forinstancetheuniversityofKorçaFanNoliandtheUniversityofElbasanAlexanderXhuvani),theOrthodoxChurchofAlbania,local/Albaniannon-governmentalorganizations,etc. Elbasan and Berat on the other hand, benefit also from other projects, which are related to forests management, cultural heritage as a UNESCO city for Berat, etc.

2.3 The Economic Potential

Region 3 total revenues in 2014 amounted to about ALL 13,572.0 million, up by 19.6 % compared to total revenues during 2013. In average, total revenues per capita in Region 3 recorded 20,622 ALL in 2014 up from the level of 17,236 ALL the previous year (mainly due to higher transfers from the central govern-ment).Whileinaveragetotalrevenuespercapitahaveincreased,dissimilaritieswithregardtoregionalaverage have become more accentuated compared to 2013 data. The highest level of overall revenues per capita is registered in the Municipality of Skrapar with about 32,328 ALL followed by the municipality of Kolonjëwithabout28,565ALLpercapita.Onthecontrary,thelowestleveloftotalrevenuespercapitaisregisteredintheMunicipalityofUraVajgurore(12,610ALL)followedbytheMuniciaplityofPustec(12,772ALL),drivenbythelownumberofpopulationinthearea.Thecapacitytogenerateownrevenuespost significant differences within the municipalities included in Region 3. Thus, the highest level of revenuesisgeneratedinthethebiggestmunicipalitiessuchasthemunicipalityofElbasan(25%),Korçë(18.3%)andBerat(13.0%)oftotalownrevenues,showingalsodifferencesamongeachother.Thegapbetween these three municipalities and the other 17 is quite significant with values ranging from a mini-mum of 0.1% in the municipality of Pustec to 7.9% in the municipality of Pogradec. The municipality of Pogradec generates a very low level of own revenues as compared to its potential (very touristic and fre-quentedalmostallyear).Withregardtothecompositionofrevenuesbymainsourcesacommontrendmight be observed among the municipalities constituting region 3: in all of them, transfers from the central government represent the most important source of financial resources. Structurally, revenues are dominated by conditional and unconditional transfers from the central government. These transfers range from at least 74.6% of total revenues in the municipality of Ura Vajgurore to a maximum value of 94.3%oftotalrevenuesintheMunicipalityofPustec(whichhasbeenrecentlyconstituted).Inaverage,own revenues of region 3 represent about 14.8% of total revenues suggesting for a very low financial au-tonomy.TheMunicipalitiesofElbasanandKorçëhavealsoaccessedexternalfinancialresources.

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The Regjion 3 can be considered as medium-lower rank for social and economic development, with rela-tively good representation of the urban centres, but quite low in rural areas. GDP/capita usually stands 30-20 percentage points below the national average in 15 years and this level holds equal for all three qarks. The regional GVA has been increasing from 2000 to 2007, and since then has been experiencing severalfluctuations(upanddown),rankedas3rdoutofthe4regionsforitssharetothetotalGVAfor-mation. The weight of sectors in internal regional GVA is dominated by agriculture with 37.5%, followed bytrade,transportandcommunicationswith16.1%(in2012).Thisisduetothehighagrarianprofilethateachqarkhas,with42.6%,38.7%and34.1%inBerat,KorçëandElbasanrespectively.Regarding the new enterprises, the birth rates are below the national average placing Region 3 at the lowest position among the four regions for 2014. Though the region has a dominance of the agriculture sector,44%oftheactiveenterprisesarefocusedontrade,around39%inservices(combined)and11.3%in industry.

According Instat8 Elbasan,BeratandKorçë(urbancentres)havelessthan25%oftheirpopulationen-gaged in the agriculture sector, while the population active in the services sector constitutes 30-80% (the highestgroupidentifiedbyInstat).Theotheradministrativeunits(previouscommunesandmunicipali-ties),withtheexceptionofMaliq,Peqin,DevollandPrrenjas(previouslocalgovernments)havemorethan 50% of their population engaged in agriculture. All of the mountainous administrative units of the [current] municipalities stand at 85% and more.Urban centres in all three qarks ofer a mix of services and economic functions and have the best infra-structures, ressembling the most to agglomeration economies. The rural areas are specialised in agri-culture, mainly farming and to a lesser degree in processing and are classified as locations with agrarian economies.Still,Berat,KorçëandElbasandiffer incharacterasurbancentres.The latterhasamorepronounced mix of urban functions, with more population employed in active industries, larger urban settlement and several services. The other two are of a smaller size, have inherited industrial sites, a more pdistinct agriculture and tourism character. The three are complementary in character to each-other, but the transport communication is still lagging behind and each centre serves to its surroundings, without interacting beyond the physical geogrpahical barriers. The cooperation between urban and rural centres issofaraclosednetworkforeachqarkand(asmentionedinthenaturalcapitalsession)fallsmainlywithin the funcional urban area, weakining gradually the further from the aglomeration core a rural settlement is.

8 Instat2014,TipologjiaeKomunavedheeBashkive.

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The INsTITUTIONal Set-up3. 3.1 The Legal Framework

The institutional capacity building with a focus on regional development, based on the experiences of countries in the region and beyond, will be implemented through the regional development agencies. The regional agency equipped with clear competencies focused on regional development through the coordination of initiatives at local and central level, those in the public and private sector and manage-ment of programs, and specific projects in their respective territories, will bring to another level the implementation of national development strategies.TheRegionalDevelopmentAgency 3 (hereafter RDA3), as a regional institution subordinate to theCouncil of Ministers, is organized as a public body with not only coordination, programming and imple-mentation functions, but also provided with the adequate technical capabilities of expertise for the local government bodies, guaranteeing the necessary support without limiting the autonomy of local govern-ment, established by the Constitution and the European Charter of Local Autonomy.RDA3 includes under its jurisdiction a wide territory that composed by three provinces, playing a pri-mary active role towards a balanced development of different areas of the region. The region is not orga-nized as an administration area but as a development area, defined by some development approaches and focused, inter alia, in the implementation of public and private projects.The creation of a functional organizational structure of the Agency followed by a qualitative recruitment of experts from different fields remains an important short term goal toward the realization of its mis-sion.RDA3 is organized and operates in accordance with the Council of Ministers decision nr.961 dated 12.02.2015 “On the establishment, organization and operation of the national agency for regional devel-opment, regional development agencies and regional economic development agency” as a public body under the responsibility of the Council of Ministers.BoardofPartnersforDevelopment(BPD)istheRDA3collegialbody,whichtakesdecisionsinaccor-dance with law no. 8480, dated 27.05.1999, “On functioning of collegial bodies of state administration and public entities”.

3.2 The Organizational Structure

RDA3isapublicbodywhoextendshisactivitiesintheregionsof:Elbasan,BeratandKorçawithhead-quarterinKorçaMunicipality.The agency has two governing bodies: the Board of Partners for Development and Director of the Agen-cy. The Board of partners has 9 members, with representatives from the Council of Ministers, at minister level and representative from the local government, at mayor level. The Board decides in accordance with theprovisionofthedecisionofCouncilofMinistersno.nr.961dated12.02.2015.Theagency’sdirectoris appointed and discharged by the Board of Partners with the formal proposal from the Mayor of the largest population city in the regional area.

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The organizational structure of the agency is approved with the Prime Minister decision as proposed by the Board of Partners and all the operation costs are covered by the state budget. The agency can also provide their own income, which remain in the budget of agencies and can be used for additional staff, project financing or other activities, in view of its objectives and programs.

3.3 Partnership and Stakeholders

The establishment of a regional agency comes as a necessity to address the investments and development, towardadministrativeterritorieslargerthanasinglelocalgovernmententity,atprovincial(qark)andmunicipal level. A joint participation in the governing bodies of the agency and their appointment as representatives of the central government and municipalities, gives to the agency a double legitimization towards an “informed” regional development, in accordance with the interests of different local realities, recognizing and balancing them. Sustainable development, in the framework of EU policies, remains a primary goal that can be better accomplished in a regional level, coordinated vertically, enabling a better implementation of initiatives of the central government, in accordance always with the needs of local communities and enterprises.The partnership with the private sector remains a key element towards a sustainable and efficient devel-opment of the region, with the aim of directing investments towards less developed areas reducing the development gap between the most developed areas and the rural-isolated ones.

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New MODels of Regional Approach4.

4.1 EU Approach to Regional Development

The European policy context has become an increasingly important aspect of regional development, on various sectors, from agriculture, the environment and transport through to economic development, social policy and competition policy. The policy have focused on territorial cohesion as an additional objective alongside the long-standing objectives of economic and social cohesion. In recent years, the debateaboutEuropeancohesionpolicyhasfocusedonitsbenefitsasan‘integratedapproach’towardspolicy-making. Significant funding opportunities are also available to support the application and imple-mentation of these policies. Indeed, some small-scale, local initiatives have proven to be extremely suc-cessful through making effective connections to and use of European funding. Regional Policy targets all regions and cities in the European Union in order to support job creation, business competitiveness, economicgrowth,sustainabledevelopment,andimprovecitizens’qualityoflife.RegionalPolicyisdeliveredthroughthe5Europeanstructuralandinvestmentfunds(ESIF):theEuro-pean Regional Development Fund – ERDF (promotes balanced development in the different regions of theEU); theCohesion Fund – CF (funds transport and environment projects in countries where thegrossnational income); theEuropean Social Fund - ESF (supports employment-related projects throughoutEuropeandinvestsinEurope’shumancapital–itsworkers,itsyoungpeopleandallthoseseekingajob);theEuropean Agricultural Fund for Rural Development – EAFRD (focuses on resolv-ingtheparticularchallengesfacingEU’sruralareas);andtheEuropeanMaritimeandFisheriesFund-EMFF (helps fishermen to adopt sustainable fishing practices and coastal communities to diversify their economies,improvingqualityoflifealongEuropeancoasts).

4.2 EU policy and programs on Regional Development

In the EU member states as well as in the candidate countries, there are two kind of institutions directly related to the management of the EU funds for regional development:

1. The Management Authorities - Regional Development Agencies or National PaymentAgency),and;2. The Intermediary Bodies -RegionalDevelopmentAgencies(RDA).

EU member states, manage the Structural and Cohesion Funds through the Community Support Framework(CSF),whichconsistsofRegionalandSectoralProgrammesImplementation(OperationalProgrammes(OPs)).Managingauthoritiesplayanimportantroleinthecoordinationofallactionsofthe Government and other stakeholders in the implementation of the program. The Dependency of the Managing Authorities varies from country to country for example in Spain and Ireland the managing authority is the Ministry of Finance, in Germany the Ministry of Economy, and in Portugal the Ministry of Environment, Territorial Adjustment and Regional Development.

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The Management of EU Structural Funds can be done either through the Central Government entity orfromotherrelatedparallelstructuressupervisedbythem.PursuanttoArticle59,paragraph1(a)ofCouncil Regulation No. 1083 dated 11/07/2006, which establishes general rules, standards and principles applicable to the European Regional Development Fund (ERDF), European Social Fund (ESF) and the Cohesion Fund, the EU Member States can set-up their Managing authority in the form of either a national, regional or local public authority or as a private institution. In Ireland, Spain and Germany, the management of EU funds for regional development is carried out by central public institutions, while in Portugal there are created additional structures of public administration (regional extensions of Central Government)toensurethemanagementofallEUregionaldevelopmentfunds,theprocesswhichhasled to a dual system. Both models have their strong and weak points, depending on the performance of the central administration.As a rule of thumb, it is advised that the Managing Authority is part of the Central Government especially incountrieswithacentralizedsistem(e.g.Ireland),andadisperssistemofManagingauthorities(someManagingAuthorities)incaseoffederalcountries(e.g.Germany).DespitethefactthatCouncilRegula-tion no. 1083 dated 11/07/2006, status that the Managing Authority can be also private institutions, in all member countries, the Managing Authorities are part of the Public Administration. This is to guarantee effective use of EU funds and the responsibility for EU reimbursment in cases of maladministration or other reasons stated in the Council regulation. The Managing Authorities delegate part of their functions to the Intermediary Bodies - Regional Development Agencies (RDA) in orden to have a better territo-rial coverage, still they have full responsibility for ensuring the proper management of the funds.

Organization of the Intermediary Bodies - Regional Development Agencies (RDA)9

RDAs are formed and function as Intermediary Bodies based on the definition of Article 42, paragraph 1 of the Council Regulation No. 1083 dated 11/07/2006, which provides that Member States or the Man-aging Authority may delegate the management or implementation of parts of an Operational Program (whichinthecaseofAlbaniawouldbetheAnnualNationalProgrammeforRegionalDevelopment)inone or more intermediary structures, set-up by the Member State or the Managing Authority, including here the local authorities, regional development structures or non-governmental organizations, accord-ing to agreements signed between the Managing Authority and these structures.

With respekt to the form, the various RDA in EU member states could be grouped into 2 major groups depending on:

1) theirSet-upOrigin:TheagencysetupbytheCentralExecutive•Previousexistingagenciespartoflocalorregionalauthorities•Agenciesset-upbythelocalorregionalauthorities

9Although we refere here to Regional Development Agency, these structures could be named, as in other EU Member States, Business Support or Advisory Center, Local Enterprise Agency or Employment Initiative, the Regional Center for Counseling and Information, Regional Business Agency, Regional Investment Companies, etc

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•Independentagenciesset-upasaresultofthepartnershipbetweenthepublicandprivatesector2) theirActivity:StrategicAgencies

•Agencieswithcomprehensiveactivity•Agencieswithsectoralactivity•Agencieswithprivateinvestment.

In a comparative perspective the advantages and disatavnatges of each of the forms of organization of the RDA:

Advantages Disadvantages

Public Regional Institutions

Public National Institutions

Association /Foundations

Company

Mixed companyPublic / Private

•GreaterOpportunityinmanagementof public funds;•Surveillanceofpublicfunds;•Opportunitytogeneratejonitfundsin partnership with other partners.

•GreaterOpportunityinmanagementof public funds;•Surveillanceofpublicfunds;•Opportunitytogeneratejonitfundsin partnership with other partners;•Possibilityofself-organizingoftheaction/ operation facility

•Flexibilityintheaction/operation;•Timelydecision-making/intervention.

•Cannotadministerpublicfunds directly.

•Itisnotaregionalbody;•Incasesofmismatchbetweenregional and national objectives there is a conflict of interest in decision-making.

•Lackofflexibilityinthewages,organization and functioning;•Activitiesoftenlimitedtoonlyone of the axes of regional development.

•Refundofbills;•Flexibilityintheaction/operation.

•Itissuitableonlyforactivitieswith a particular object.

•Flexibility;•Goodknowledgeoftheterritory;•Greateropportunitiesforconsensus;•Greateropportunitiesforthepursuit of the objectives and strategies of socio-economic development;•Opportunitiesforadministrationofpublic funds;•Monitoringofpublicfunds•Opportunitytogeneratejointfundsin partnership with other partners;•Opportunitytohaverelationsatnational and international level.

•Complexityinthelegalbasisonwhich the agency is established

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4.3 Best Practices on Regional Development Agencies

Burgenland is the eastern region of Austria, and it has been the poorest region of the nine Austrian Regions.Burgenland isvery small (284.000 inhabitans)compared toEuropeanstandards.Except forEisenstad(ThecapitalofBurgenland)andtheMattersburgdistrictwhichareneartotheinternationaltransport(ViennaandBratislavaAirport,highwayVienna–BudapestandVienna–Grac)theotherpartof Burgenland is extremely peripheral. Bürgenland has the characteristics of a rural area with fragmented agricultural sector and the major problems of this region have been the lack of jobs, low productivity, lack in modern business infrastructure (eg. business parks, lack of institutions of higher education and facilitiesinresearchanddevelopment)andunfavorableaccesstoandwithintheregionwhichresultedin emigration outside the region.Five years after the fall of the Berlin Wall, the Burgenland was approved as an area under Objective 1 for funding from regional funds of the EU. This was an advantage interlocked with the efforts at political level and mobilization of the stakeholders at national and regional level to turn the region of Burgen-land’sfroma“deadborderzone”inan“integrateddynamicregionoftheCentralEurope”.Parallelytothe reduction of regional disparities and substantial changes in the average level of prosperity with the EU(then15membercountries),wasaimedthecreationofjobsandanincreaseinparticipationrates.Approval of EU regional policy brought significant changes and innovations in the system of governance intheBurgenland’sregion.ForthepreparationandadoptionofEUcohesionpolicyandthefundingforObjective 1, Burgenland undertook a series of measures which were not only necessary for achieving the objectives of cohesion policy but also to interior regional:

•ForthepreparationofObjective1funding,theydevelopedasetofstrategicconcepts,includinga new program of spatial development and sectoral development plans for tourism and business.•Institutionalchangesincludethecreationoftwoagencies:theEconomicDevelopmentAgency(EDA)and theAgencyofRegionalManagementofBurgenland’s (ARMB).EDA is responsiblefor supporting the financial development and ARMB is the development agency for Burgenland, which take the role of the Managing Authority.•Theprogrammingprocessalsorepresentsaninnovation.Itwasagreedforanintegrateddevelop-mentprogramattheBurgenland’sregionalandfederallevel.•FinancialAccessforObjective1requiresinter-agencyandinter-sectoraldevelopment.Coordi-nation mechanisms were established between the federal government and the region of Burgen-land’stofacilitatethedevelopmentofcross-sectoralstrategiesandprojectselection.Itwasdecidedto coordinate the federal and state agencies for the preparation and implementation of programs and selection of projects.•DevelopmentofthestrategicprogramwasdevelopedintheframeworkofAgenda2000andthepreparions for EU expansion in Eastern Europe.

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Regional Development Strategy was basically an “economic development strategy ‘and the ERDF stages were consistent with the objectives and thematic priorities with some adjustments in the policy approach to three periods of ERDF program. Initially the approach was focused on removing barriers for the industry, trade and tourism and then passed to an approach oriented to innovation. In line with the operational programs is aimed at developing infrastructure, the capacity building and networking. An approach of three phases is pursued through infrastructure development, networking and skills develop-ment, under the Operational Programmes.

Although access to the Structural Funds and in particular those of ERDF have significantly expanded financial resources available for Burgenland, always the additional national and regional funding was available especially because of the Austrian federal system. Therefore, the funding programs of the EU have been focused on larger investment projects and in the intensive capital, while the small projects (eg onstart-ups)aresupportedexclusivelybynationalschemes.Inthesecondandthirdperiodtheincreas-ing of the complexity of EU funds has led to increasingly shift projects in a high risk in terms of domestic financing(egR&Dinthecompany).

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The swOT ANALYSIS 5. The compilation of the Regional Development Strategy is a necessity for the development of the region in a structured and planned way based on the developing needs provided by all stakeholders, governmental and nongovernmental representative and interested groups of population.

5.1 Human Resources and Labour Market

Analysing the the human resources the situation is likeable referring to the awareness for developing the right areas promoting the development such as tourism and agriculture, but considering the qualification of the professionals for exercising those is an opportunity the enhance of Professiona Education Schools in three qarks. But the emigration of people from the remote areas of these 3 qarks and remaining un-populated villages is a threat according to the SWOT.The labor market referring to traditional handicrafts and products is strength for development but the lonelyagriculturefarmsin3qarksdon’tservetotourismanditisaweakness.Alsothemarketingforagricultural products and for the natural beauties of each qark consist a weakness according to the needs assessment.

5.2 Infrastructure

Referring to infrastructure for the strategy formulation it is stressed that the legal framework approved by the legislative body is a strength point for the regional development. Touristic places for winter tourism, Dardha, Voskopoja, historical sites in the region, Berat and Ohrid Lake protected by UNESCO are strengths in the SWOT analyze as well.But speaking about road infrastructure in particular among three qarks and villages needs a lot to be done, and inadequate infrastructure to achieve the touristic sites in the mountains or riverbanks as well compound a weak point in the framework of the SWOT Analyze.

5.3 Agriculture and Forestry

The lack of tradition in doing familiar tourism business or the low knowledge in doing marketing of agriculture products is weakness and unbalanced industry development influences to environment non rare in the forestry. Nice climate, having each season of the year in the Region 3 is strength and natural resources, mountains for hiking, rivers for rafting, lakes for restoring with special kind of fish are the op-portunity for its development that has to be used.

5.4 Economy and Business

ForeignInvestmentsfortheregion3anddonor’sprogrammesforregionaldevelopmentareopportuni-ties for improvement and progress of the region. The return of emigrants with a new mentality and start-ing up their businesses is opportunity, too. A threat for the economic development of the region can be the potential political influence among local and central government or natural hazards.

5.5 Other Sectors

The other sectors like health services or cultural and artistic activities have their influence in the regional development serving as opportunities referring to the SWOT analyze.

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STRENGTHS: WEAKNESSES:

TERRITORY

1)StrategiccrossborderpositionwithGreeceandFYROM and good connectivity with capital city2)Highqualityofnaturalenvironment–protectedareas, biodiversity and landscapes3)Greatvalueofculturalheritage–history,architecture and folklore

MOBILITY

1)Publicinfrastructurethatcansupportthedevelopment of commerce2)Manyactorswithintheregionwithwell-developed networks and a number of partners, twin towns etc.

GOVERNANCE

1)Highsupportofthecentralgovernmentandvarious international donors for the development of the Region 32)Beratcityaspartofculturalheritageprotected by UNESCO3)Successfulorganizationofsomeculturaland entertainment public activities

ECONOMY

1)Goodagriculturalland2)Relativelylowpropertypricescomparedtocapital city 3)Nature,cultureandhistorictouristdestinationsincluded in touristic national and international offers 4)Agriculturalproductsofgoodquality

POPULATION

1)Humanrecoursesrelativelyyoung2)Twopublicuniversitiesandagoodlevelofeducation, characterized by high attendance

TERRITORY

1)Fragmentedinstrumentsonmanagement,supervision, monitoring and promoting the integration of the territory2)Infrastructureeffortsfocusedaroundthebigcities3)Touristdestinationswithpoorprofileinsideand outside the region4)Vulnerablenature5)Lackofaccesstonaturedestinations6)Lowavailablefundingtocoverthebuildingand maintenance of infrastructure7)Toofewarenasandmeetingplaces8)Lowenergyefficiencyinpublicandprivatesector due to lack of information on the proper instruments for the implementation of strategic plans and actions

MOBILITY

1)ThelowlevelofICTinvolvementandlackofemployment in technological sectors. Individuals with poor knowledge on ICTs compared with other regions of Europe2)PoorlocalITinfrastructuredevelopmentwithnegative results on regional, national and international access3)Selectionbetweendifferenttypesofpassengerstransport is under-development4)Longdistancesandlongtraveltimesduetolackof connecting roads between some cities of the region5)Weakregionalprofile6)Thepotentialforexperienceswithinculture,cultural heritage and natural realms not sufficiently taken advantage of7)LackofIntegratedTransportSystems8)Lackofinnovationdedicatedfacilities

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STRENGTHS: WEAKNESSES:

EDUCATION

1)Developedbasicvocationalstudyprogrammes2)Developedinternationalcontactswithintheeducational system

GOVERNANCE

1)Lackofintegratedmanagementoftourism:regulations, standards, certifications, statistics and monitoring of indicators2)LowNGO-tradition3)Lowsupplyofhigh-qualityculturaland recreational activities4)Weakanalysisofinternationalco-operation.Lackofaconscious(goaloriented)workingmethod of many actors in the region

ECONOMY

1)LowcompetitivenessamongthebusinessesoftheregionandpooraccesstoSME’sfunding2)Lackofbranding3)Toofewentrepreneursandgoodexamples.4)Weaklocaleconomies5)Youngentrepreneurialculture,weakbusinessbase, small average size of businesses6)Weakbasisfordiversityinservicesandcultural production7)Weaknessofmarketing8)Insomecaseslowreadinesstostartusingnew technologies within businesses9)Smallbusinessessometimeslackgrowthmotivation10)Lackofinnovativesectors,clustering11)Unabletodevelopkeysectorssuchastourism, manufacturing and agro-processing in higher economic level

POPULATION

1)Highdegreeoflong-termunemployment2)Highoutmigration3)Regionalimbalances,forinstanceintermsofdemographics, development, educational level and employment 4)Relativelylowincomelevel,weakpurchasingpower and high taxes5)Existingtraditionofbeingemployedbysome-one else, rather than becoming an entrepreneur

EDUCATION1)Limitedinterplaybetweenuniversitiesandprivate sector2)Fewuniversity-educatedpersonsstayintheregion after they have finished their studies

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OPPORTUNITIES: THREATS:

TERRITORY

1)Goodgeographicpositionandgoodclimateconditions 2)Highpotentialforrecyclingoflandincludingoldmilitary bases, old industrial sites etc.3)Developedinterplaybetweenurbancentresandthe surrounding countryside4)Developmentofsportsareaswithintheregion5)Moremeetingplacesandarenas6)Informationabouttheappropriateinstrumentson energy savings and renewables can lead to sustainable use of energy resources in the region

MOBILITY

1)Useofinnovativetechniquesinthepromotionof natural and cultural attractions and the development of distinctive tourism and cultural products2)Well-functioningoflogisticalServices3)Furtherdevelopmentofculture4)Developmentofculturaltourism5)EUfundsandprogrammesthroughcross–bor-der co-operation6)Stimulationofcreativity,entrepreneurshipandinnovation capabilities7)Theuseoftechnologyinmanufacturing,food-processing, tourism, environment, energy and creative industries

GOVERNANCE

1)Cross-borderinteractionwithneighbourcoun-tries towards sustainable interregional development2)Increasedcooperationbetweencitiesaimingattheir sustainable development and strengthening of competitive position of the region3)Capacitybuildinginpublicsector4)Newnetworksandimproveddialoguebetweenthe actors in the region5)Developmentandexperimentingwithnewformsof social and other public services6)Hivingoffofpublicactivities–opportunitiesforthe third sector

TERRITORY

1)Lackoffinancialandhumanresourcesinpreservation and maintenance of natural, cultural and historical heritage2)Unbalanceddevelopmentoftheurbansystems,with rapid growth of some urban regions, decline of others.3)Environmentalproblemsfromtheuseoffirewood4)Environmentalproblemsduetopollutionofwater systems5)Roadsthatconnectmunicipalitiescenterswithsome distant villages do not meet the standards6)Watersupplyinsomeareasoftheregionisaconstant problem, which requires a better management

MOBILITY

1)Insufficientstakesingrowthareasofeconomy2)Lowprofessionalmobility3)Lowinterestintechnology

GOVERNANCE

1)Lackofstrategiestoadjusttothefastchangingenvironment2)Thecontinuationofcentralisingtendencies3)DistortedregionalpolicyServices within the distant areas threatened due to decrease in population4)Growingeconomicandsocialinequalitiesmaycreate social and political tensions

ECONOMY

1)Unsustainabledevelopmentduetoa(partlynecessary)focusonshort-termbenefits,withlackof cross-sector, integrated approaches2)Enterprisesstragglingwhenitcomestomarket-ing, development of products and design skills3)Lowknowledgeaboutothercountriesandmarkets

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OPPORTUNITIES: THREATS:

4)Lowpresenceintheinternationalmarkets5)Insomecitieswithnolongerstrongurbandevelopment, with past industrial activity which has already been interrupted, it is difficult to create the model of the “new economy”

POPULATION

1)Braindraintoothercountriesandtheemigra-tion of skilled workers2)Decreasingpopulation3)Depopulationofthecountry-sideandageingofpopulation4)Highunemployment5)Lackofqualifiedworkforceandcompetenceshortage in some industries6)Increasedeconomicandsocialimbalancesmaycreate political tensions

EDUCATION

1)Educationalsupplydoesnotmeetthenewneeds of the businesses

ECONOMY

1)Developmentofsectorswithadirectimpacton economic growth of the region such as agro-processing, tourism, manufacturing, cultural and creative industries2)Tourismsectorhasopportunitiesstilluntappeddue to lack of promotion of less known destina-tions and their exclusion from tourism offerings3)Increaseintheprocessingofregion’srawmateri-als and take advantage of opportunities for local production4)Increaseddevelopmentpotentialofsmalllocalenterprises5)Productionbasedonindigenousnaturalre-sources6)Theincreasingdemandforecologicproducts7)Electroniccommercecanstimulateincreasedtrade and profitability even within small businesses8)Possibleaccesstonaturalgasresources(TAP)

POPULATION

1)Newjobopportunitiescanbecreatedwithintheprivate service sector2)Makinguseofreturneesknowledgeandexperiences

EDUCATION

1)Cross-bordercooperationbetweenuniversitieswith emphasis on increasing knowledge and skills as important factors in improving the economic and social life2)Improvingtheroleofuniversitiesbyencourag-ing their function as a motor for growth3)Attendanceofforeignandnationaldistancelearning platforms from various age groups4)Youngpeopleandjobseekersthroughthedevel-opment of their skills, can pose potential innova-tive ideas

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sTaRTeGIC PRIORITIes AND OBJECTIVES 6.

TheRegionalStrategyaimstomeettheneedsoftheregion,boostthedevelopmentoftheRegion3(Ko-rce,Elbasan,Berat)andseektocreatesynergiesandcoordinationbetweenexistingpoliciesandinitia-tives taking place across Region 3 through following priorities.

Priority 1: Sustainability

Sustainable development is at the heart of the Regional Development Strategy. Based on the natural and historical resources of the region will be developed an integrated, effective and highly productive system of tourism value chains and niche products and agriculture that will place the Region as the most com-petitive and leading one at national level. The atmosphere of enhanced alternative historical and natural itineraries, agriculture corridors, histori-cal sites and cities, pastoral landscapes and vernacular architecture, natural monuments and parks will grasp not only visitors and tourists, but nourish a genuine bond among inhabitants themselves and be-tween them and their territory. Enhancing the main regional centers to capture investments and creating a network of well developed regional centers across the region will create self sustainable economic activity and real choices for the people of the Region 3.

Objective 1.1 Tourism and Related IndustriesObjective 1.2 Agribusiness and Agro-processingObjective 1.3 Manufacturing and Production ActivitiesObjective 1.4 Regional Labor Market, Skills and Employbility

Priority 2: Growth

The economic growth of the region is depended on the development of the protected areas as key re-sources in the tourism value-chainstrengtheninganddiversity.It’simportantfortheeconomicgrouthto create the conditions for sustainable regional agriculture based on the production of healthy tradi-tional agricultural products and working for eliminating the erosion risk to strengthen the stability of the agricultural land system.An economically dynamic region will be provided by encouraging entrepreneurship, supporting SMEs and building an information society doing:

•There-establishmentandrehabilitationof theprevious industryactivitiesbasedon theassetsand sites of the region considering that better capability, knowledge and networks will improve the resilience of existing industries.•Providingspaceandfacilitiesforbusinessesincubatorsandstart-ups,foodprocessingandpack-agingindustry(Berat,ElbasanandKorçë),andinnovativeideasoninformationtechnologies.

Creating the network among cities of the region as the engine of the economic growth is one of the aims. The three major cities of the region provide specialized services and facilities to economic activity, while operating in a complementary network. Use of sustainable energy sources(wind,sun,waterandbiomass)torealizetherenewable energy pro-duction is a usefull source for the growth.

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Objective 2.1 Regional Rural and Urban DevelopmentObjective 2.2 Greening Towns, Region and CommunityObjective 2.3 Buildings and Energy EfficiencyObjective 2.4 Integrated Regional System of Waste Management

Priority 3: Connectivity

The region is internally integrated and externally well positioned in the national and cross-border de-velopment net, through a supple road and transportation system providing fast connection between the threemajorurbancentersandamongthemandTirana,andothertowns.It’simportanttoenable regional infrastructure investments that promote, or facilitate economic growth, social development and environ-mental protection. Investing in economic infrastructure to drive growth integrated common-use infrastructure that un-derpins economic growth consists on: Construct Roads and improve Transport; Support the alternative sustainable tourism (eco, rural, cultural and transistor) and tourism infrastructure; Invest toEnviron-mental infrastructures and risks prevention; Create a Network of Information Centers and Systems; E-governanceprovided(servicesprovisionandtraining).

Objective 3.1 Regional Road and Transportation SystemObjective 3.2 Tourist Routes and Accommodation FacilitiesObjective 3.3 ICT and IoT (Interner of Things) SolutionsObjective 3.4 Network of Information Centers and Systems

Priority 4: Innovation

Foster a vibrant and vigorous regional network of settlements and smart urban centers, as complemen-tary multifunctional nodes and territorial belts that nurture the fundamentals of the regional economic growth, by increasing welfare and ensuring access to high-quality services. Smart regulation and services will improve wellbeing and increase the capacity of people and busi-nesses to contribute to the economy through: Service delivery models that support the economic suc-cess and well being of region 3 people; Business and economic regulatory practices support market in-novation and growth; Regional development priorities attract private sector capital and capability.

Work for making a Smart Region includes digital economy and digital systems and services that will im-prove and empower the development of all main activities of the region like tourism, agriculture, business industry, culture, education, etc.

Objective 4.1 SMART RegionObjective 4.2 Digital EconomyObjective 4.3 Digital Systems and ServicesObjective 4.4 Open Innovation

Priority 5: Creativity

Establish a network of complementary education and knowledge alternatives in order to increase ac-cesstothejobs’market,boostthequalityoftheworkforceandreducegenderdisparitiesthroughvari-ousactivitiesimplementedlikeagricultureandfoodprocessing;familiartourist’spackage;trainingand

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coaching women and young people to access market opportunities and employers to equally offer them; womenandSMEs(supportestablishment)

Work for creating Albanian brands and re-active the traditional handicrafts; Products Made-in Albania (atleast2products,rakiandnuts);AuthenticAlbania(hotelsandservicesqualityandauthenticitymark,traditionalproductsandsouvenirs)

Develop Cultural and Artistic Heritage: Folk of the region selected and presented; Artistic Regional festivals accompaigned with Traditional Culinarie Fairs; Transmitted to youngsters the folk tradition of the region in above respective areas.

Improve touristic sites services through integrated cultural tourism products (itineraries restored, sites, information,troponins,experiencethepast,services,cityandsitemuseums);Pilgrimage:Experiencecultureandnature(Tomorr,Voskopojë,etc.)

Objective 5.1 Ecosystem of Creative Economy Objective 5.2 Culture and Creative IndustriesObjective 5.3 Artistic and Cultural HeritageObjective 5.4 Cultural Route

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leVel OF INTERVENTION 7.

A comprehensive type of interventions need to consider the information, physical infrastructure and ser-vices. Promotion, Infrastructure and services that target the entire region (each urban centre (agglom-eration)andthesurroundingruralarea)willleadtoanintegrated,sustainableandinnovativegrowthofthe region and reduction of local disparities.

7.1 Communication & Promotion

Poor development is also a consequence of lack of information on opportunities that the region may offer. Information is important for facilitating effective and sustainable development. While traditional information systems seem relatively effective to some areas other more innovative communication chan-nels needs to be used such as ICT.

7.2 Physical Infrastructure

The diversity within and between qarks provides challenges to delivery. Such diversity requires a consis-tent intervention to infrastructure across all qarks and all types of infrastructure (physical, communica-tion,structural,etc).Different infrastructureneedswillemergefordifferentareas,dictatedlargelybytheir characteristics.

7.3 Services

Regional development, does not actually depends on the basic activities of a territory and uduallu it is de-tached from the material production. Rather it mostly depends, from the growing prominence of service activities.Services,shouldbenotlimitedtoonly‘basics’butdevelopedalsoonlargescaleofknowledgeand technology. Services enable interaction between agents located in diffrent areas and promote con-nections between them in networks outside the region.

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DesIReD OUTCOMES8. Regional development involves many players and is shaped by multiple issues, priorities and 3 geo-graphical areas. All tiers of government, business and communities contribute and share a stake in the development of the Region 3. The best regional development outcomes are achieved when stakeholders and opportunities are aligned towards a clear common purpose and guided by consistent principles of good regional development. The Strategy provides the common direction for regional development.

8.1 Quality of Life

The improvement of Quality of life is main outcome provided by the implementation of the Regional Development Strategy through support given to towns, villages and rural communities of the region to maximize their potential and promoting the development which improves the health and well-being of communities’people.The upgrade of road network is bringing inter-local, regional and national communication of the region at a best performance level, by breaking any physical and psychological barriers to mobility and making use of valleys where possible.

•Improveconnectivitytoenhancethemovementofpeople,goods,energyandinformationbe-tween towns, villages, areas of the region and the whole country.•Increasingtravelaccesstotheregionwillincreaseitsinternalandexternalaccessibilitytomar-kets, jobs and knowledge with positive impact to the quality of life.

Protection and enhance the environment for its own sake and improving the quality of life for the region inhabitants will be mainstreamed in each regional activity.

8.2 Environmental Sustainability

Linking the agriculture functional area, to mountain-ecological-cultural tourism packages, and to the networkofurbanservicesconcentrations,throughaphysicalandevents’network,willincreasethein-ternal economic fluidity and welfare of the region.

•Successfuldefenseoftheenvironment;•Sustainableuseofnaturalresources;•TheimprovementsituationofElbasanareafromtheoldindustrypollutionandtransformingitan asset for development. •MeasurestakentoprotectagriculturelandandthehealthofthecitizensfromtheeffectsofcrudeoilextractionandprocessingindustryinKuçovaimprovingandusingthisindustryforsustainablejob creation in the area.

8.3 Production Growth and Regional Competitiveness

Korçë–Berat-Elbasanregionresurgesresilientlytobethemostattractiveandcompetitiveareafortheniche tourism in Albania with stable economic growth, based on agriculture and sustainable and smart use of natural resources.

•Thedevelopmentoftheregionbasedontheregionalstrategywillincreasetheannualgrowthofthe Regional GDP by at least 5% compared to the national average growth. •Proximityenhancedbydecreasingtraveltimes,increasedurbanGDP,increasedpopulationanddecreasing migration, increased number of economic entrepreneurships, show for an evolving pat-tern of polycentric development within the region and vis-à-vis the rest of the country.

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•IncreasedinvestmentandpopulationgrowthinkeycentersofRegion3.o An established and effective network of towns linked among them. o New businesses establish and prosper in the key towns of the region.•Improvedeconomicgrowthandincreasedemployment;

8.4 Capacity Building and Human Capital Empowerment

•Thedevelopmentofagriculture,tourismandrehabilitationofpreviousindustriescreatelongterm job opportunities in the region.•Establishanetworkofcomplementaryeducationandknowledgealternativesintheregionem-powers human capital in the region level for a better management and open vision for the devel-opment and progress. •CreatinganetworkofInformationCentersandServicesmakesableanInformationSociety.

8.5 Regional Branding & Visibility

- Innovation, start-ups and local patents: oTheinnovationsandstart-upportfolio(competitivefinancialsupportandincubators)oProductsMade-inAlbania(atleast2products,rakiandnuts)o Authentic Albania (hotels and services quality and authenticity mark, traditional products andsouvenirs)- The implementation of the regional strategy will open the opportunities for: o Improved supply chains and logistics for regional organizations and networks.o More co-investment secured for the Region to fund regional infrastructure projects.

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MaTRIX ON STRATEGIC DOCUMENT9. 1. Strategjic Priorities1.1. Objectives1.2. Objectives

Priority 1: SustainabilityObjective 1.1 Tourism and Related IndustriesObjective 1.2 Agribusiness and Agro-processingObjective 1.3 Manufacturing and Production ActivitiesObjective 1.4 Regional Labor Market, Skills and Employbility

Priority 2: GrowthObjective 2.1 Regional Rural and Urban DevelopmentObjective 2.2 Greening Towns, Region and CommunityObjective 2.3 Buildings and Energy EfficiencyObjective 2.4 Integrated Regional System of Waste Management

Priority 3: ConnectivityObjective 3.1 Regional Road and Transportation SystemObjective 3.2 Tourist Routes and Accommodation FacilitiesObjective3.3ICTandIoT(InternerofThings)SolutionsObjective 3.4 Network of Information Centers and Systems

Priority 4: InnovationObjective 4.1 SMART RegionObjective 4.2 Digital EconomyObjective 4.3 Digital Systems and ServicesObjective 4.4 Open Innovation

Priority 5: CreativityObjective 5.1 Ecosystem of Creative Economy Objective 5.2 Culture and Creative IndustriesObjective 5.3 Artistic and Cultural HeritageObjective 5.4 The Cultural Route

Communication & Promotion

Measure 1.1.1: “Creation and improvement of the services in the Innsand in the entertainment units of Region 3”

Measure 1.2.1: “Creating Branding Markets” from best practices

Measure 1.4.1: “Professional College – Education, Skills, Labour Market & Employment”

Measure 2.1.2: “Development of the Protected Landscape of Pogradec”Measure 2.2.1: “Massive Reforestation/ afforestation of National Parks of the Region 3”Measure 2.3.1: “Energy Efficiency in public and private buildings and spaces – Pilot projects in buildings”Measure 2.4.1: “Building an integrated system for waste management in the Region 3”

Measure 3.2.1: An architectonic competition with thematic: “Panoramic Views for the Region 3”Measure 3.2.2: “Construction of the Network of Panoramic view points in Region 3”Measure 3.3.1: “Promotion of authentic local products”Measure 3.4.1: “Tourism services within the inter – modal terminals”

Measure 4.1.1: “Interactive digital map and smart touristic guide of Region 3”Measure 4.2.1: “THE FARM” virtual food hubMeasure 4.3.1: “Information Stations and Offices”Measure 4.4.1: “Centre for Economic Development, projects and conferences of Region 3”

Measure 5.1.3: “Albanian Adventure Resort”Measure 5.2.1: “Tourist Libraries throughout Region 3”

Level of Intervention

Physical Infrastructure

Measure 1.3.1: “AGRO TECH Centre”

Measure 2.1.1: “Revitalization of touristic villages”Measure 2.1.2: “Development of the Protected Landscape of Pogradec”Measure 2.2.1: “Massive Reforestation/ afforestation of National Parks of the Region 3”Measure 2.3.1: “Energy Efficiency in public and private buildings and spaces – Pilot projects in buildings”Measure 2.4.1: “Building an integrated system for waste management in the Region 3”

Measure 3.1.1: “Construction of inter – modal terminals”Measure 3.1.2: “Interconnectivity Infrastructure”Measure 3.2.2: “Construction of the Network of Panoramic view points in Region 3”Measure 3.2.3: “Construction of the touristic bike and pedestrian pathways that connect the city of Berat to Gorica Castle and the surrounding hills”

Measure 5.1.1: “Touristic winter destination, Nikolica”Measure 5.1.2: “Activating the landscape of the National Park of Prespa”Measure 5.1.3: “Albanian Adventure Resort”Measure 5.3.1: “The castle of Elbasan”Measure 5.3.2: “Roof restoration of characteristic first category houses in the neighbourhoods of Mangalem and Gorica in the Municipality of Berat”Measure 5.4.1: “Adjusting the road from Voskopoja to theformerPioneerscamp(St.JohntheBaptistchurch)”

Services

Measure 1.1.1: “Creation and improvement of the services in the Innsand in the entertainment units of Region 3” Measure 1.2.1: “Creating Branding Markets” from best practicesMeasure 1.3.1: “AGRO TECH Centre”Measure 1.4.1: “Professional College – Education, Skills, Labour Market & Employment”

Measure 2.3.1: “Energy Efficiency in public and private buildings and spaces – Pilot projects in buildings”Measure 2.4.1: “Building an integrated system for waste management in the Region 3”

Measure 3.2.1: An architectonic competition with thematic: “Panoramic Views for the Region 3”Measure 3.2.2: “Construction of the Network of Panoramic view points in Region 3”Measure 3.4.1: “Tourism services within the inter – modal terminals”

Measure 4.1.1: “Interactive digital map and smart touristic guide of Region 3”Measure 4.2.1: “THE FARM” virtual food hubMeasure 4.3.1: “Information Stations and Offices”Measure 4.4.1: “Centre for Economic Develop-ment, projects and conferences of Region 3”

Measure 5.1.1: “Touristic winter destination, Nikolica”Measure 5.1.2: “Activating the landscape of the National Park of Prespa”Measure 5.1.3: “Albanian Adventure Resort”Measure 5.2.1: “Tourist Libraries throughout Region 3”

Desired Outcomes

•QualityofLife

•EnvironmentalSustainability

•ProductionGrowth and Regional competitiveness

•CapacityBuilding and Human Capital Empowerment

•RegionalBranding & Visibility