October 2009 From the American People…

Total U.S. Assistance to Serbia from : $716 Million (USAID: $545 million) Mission Statement: USAID programs seek to support Serbia (and Montenegro) in their goals of being democratic, prosperous, and moving towards Euro-Atlantic integration. The Strategy:   Adopts an innovative approach that integrates key democracy and economic growth components   Promotes fundamental changes in governance, institutions, human capacity and economic structures;   Based on close cooperation between USAID and national and local governments, civil society organizations, associations and private companies   Activities coordinated with partners & other donors to avoid overlap and ensure maximum impact.

Total U.S. Assistance 2009: $46.5m (USAID $37.9m) Programs: Democracy & Governance  Civil Society Advocacy Initiative  Political Processes  Media Assistance Program  Separation of Powers Program Economic Growth  Agribusiness Project  Competitiveness Project  Municipal Economic Growth Activity  Bankruptcy and Enforcement Strengthening  Serbia Economic Growth Activity  Contingency Planning and Economic Security Program Cross Cutting Initiatives

Democracy and Governance Areas of intervention  Supporting civil society as a true voice of the people in advocating for important issues  Helping independent media outlets and media organizations become more self-sufficient and professional  Increased dialogue between citizens and their elected representatives Key results:  Support to over 160 civil society organizations for important initiatives in Corporate Social Responsibility, Freedom of Information, and Environmental Awareness  More independent, professional, and financially viable media outlets and media associations. The regulatory environment now better supports the development of e-media. Over 2,000 media professionals received training through USAID programs.

Which of these do you think is the most important for the future of Serbia? Source: Strategic Marketing Survey, September 2009

What do you think is the priority in your municipality / city? Source: Strategic Marketing Survey, September 2009

Global Competitiveness Report : Serbia (Composite ranking of 93 of 133 countries) (Note that Serbia is a WEF “Stage 2” country, “efficiency-driven,” after which it will transition to a “Stage 3” country, “innovation-driven”) Disadvantages:  Public Institutions: Government Inefficiency (118) Burden of Government Regulation (129) Burden of Government Regulation (129) Efficiency of Legal System in Settling Disputes (124) Efficiency of Legal System in Settling Disputes (124)  Private Institutions: Accountability (123)  Competition: Domestic Competition (118)  Technological Readiness: Firm-level Technology Absorption (125)  Domestic Market Size: Exports as Percentage of GDP (116) Advantages:  Health: Infant Mortality (46)  Quality of Education: Quality of Math and Science Education (43)  Competition: Total Tax Rate (37)  Specific Infrastructure: Telephone Lines (38)

Areas of Intervention:  A legal and policy environment that promotes economic growth  The capacity of key institutions to implement and enforce economic reforms  The capability of local authorities to stimulate local economic development  Helping businesses identify and successfully enter new markets  The competitiveness of Serbian products and services in key sectors by introducing best practices and raising product/service standards to internationally acceptable levels  Assisting Serbian agribusinesses “from field to fork” to get maximum returns from their labor and increase exports Economic Growth

Economic Growth Development Key results:  In the last 2 years, municipalities in USAID’s Municipal Economic Growth Activity attracted over 800m Euro in investments and created over 11,000 jobs by becoming more business friendly;  Commercial Courts were made more efficient and transparent by introducing a Case Management System in all Commercial Courts. Case backlogs have been cut drastically.  Projects helped introduce: VAT; private pensions; investment funds; a sound insurance industry, bankruptcy and enforcement and modern payment systems.  In 2 ½ years, the Agribusiness Project has helped Serbian companies to 91 million in export contracts (signed or under negotiation)  The Competitiveness Project has helped raise the profile of Serbia as a destination for film production (with a Ralph Fiennes directed production to begin filming in 2010) and helped attract $40m in investments and exports

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