Rural Development in a Function of Local Economic Development: Case Study of Municipality of Krushevo

Abstract

The local economic development is a process in which the local authorities and partners from the business sector and the non-governmental sector work together to improve the business climate. Through positive financial results conditions for economic growth are created and the employment opportunities are increased. Most of the municipalities in the Republic of Macedonia are still at an early stage of development of the idea of local economic development, due to fact that the preparation of the municipal strategies and action plans are the only activities carried out in this direction so far.The National Strategy for Agriculture and Rural Development for the period 2009-2013 stresses tourism and agriculture as priority areas for development of the country and analyzes the situation and the range of responsibilities of the Ministry of Agriculture, Forestry and Water Management. Parallel, the national programs facilitating agriculture and rural development in Macedonia in favor of global trends for creation of sustainability in rural regions through the development of agriculture and additional activities for families living or returning to rural areas (villages). The rural development through the few authentic examples in Macedonia already shows the first interest although the contours of the branch are not defined yet.The rural development is able to a greater extent to meet the needs of the modern man that the urban environment is not able to satisfy. To clarify what can be these unmet needs and to answer the question of interest due to demand for this type of tourism, it is necessary to analyze contained rural tourism.Keywords: absorption, administration, capacity, development Results with DiscussionThe need to determine the development and prospect of the rural economic development of the municipality of Krushevo was inspired from the increasing development of rural areas in Europe and worldwide. The rural areas in Europe and in the world revive and develop through the rural development with greater attendance by visitors or tourists. In terms of that, the objective of this master's thesis is to give a clearer picture of the status of the rural development in the Republic of Macedonia with special reference to the municipality of Krushevo, as well as with emphasis of the opportunities and prospects for improvement and modernization in future.In order to ensure a more systematic and scientific foundation of the paper, several methods of work commonly used in economic analysis, resulting both in theoretical and in practical knowledge, are applied in its preparation. In the research of this master's thesis questionnaires for the respondents from the municipality of Krushevo were used. Questions about the current state of the rural development and tourism in the municipality, as well as questions about the possible perspectives, and the directions in which itcan be developed and promoted were asked in the questionnaires.The rural development in the municipality Krushevo must be consistent with the objecti...