Public-Private Partnership as a Concept for Strengthening the Competitiveness of Small and Underdeveloped Local Governments

Abstract

Bosnia and Herzegovina is a rural country; therefore, rural development should be the primary goal of the development policies of the entire country. Depopulation of villages, migration of rural population, weak economic power and poverty are characteristics of rural communities in Republika Srpska. Small underdeveloped municipalities do not have answers to the challenges and problems that are imposed on them. Given that BiH is gravitating towards the EU, the development policies of rural areas of western countries can offer sustainable solutions for these areas. On the example of the municipality of Kalinovik, primary research was conducted in order to prove the hypotheses of the scientific research. The subject of research in this paper is the applicability of the public-private partnership model in the municipality of Kalinovik and the possibility of adopting this concept as an optimal solution in encouraging rural development in order to strengthen the competitiveness of above-mentioned municipality. The aim of the research within this paper is to offer scientifically based answers to the possibilities of accelerating the process of rural development itself with the application of modern European methods and a comprehensive approach to solving specific problems of the local community in the Republika Srpska. The main hypothesis of this research is that the public-private partnership model represents the optimal solution for encouraging rural development in the Kalinovik municipality. The results of the research show that there is an interest in the development of public-private partnership in the Kalinovik municipality and that the application of this model with the involvement of all levels of government through an integral, multiple approach will bring good results in encouraging rural development and strengthening the competitiveness of this area.