Economy of Gjilan

The municipality of Gjilan is in the Anamorava Macroregion of Kosovo, with 42 villages a part of it. Due to the overall increase in economic development, Gjilan has become a known administrative, commercial and industrial region. Territory of Gjilan's municipality currently has an area of 391 km with approximately 130,000 residents. The entire territory owns about 24,230 hectares of farmland, from which 18,224 hectares are considered to be agricultural land which produce a variety of traditional crops. Gjilan is well posiitoned geographically as an administrative unit. Automobile highways roads permit good communication and movement of goods and people, connecting with Prishtina, Vitia, Ferizaj, Kamenica, Bujanovac, and other centers of Kosovo. Thus, Gjilan was and is an important strategic center that has an economic impact to the region.

Natural resources in the region have been exploited since the Middle Ages. Notable resources include potassium, magnesium, and the thermal mineral water, or hot springs.^[1]

GJILANII

The historical development of Gjilan

Gjilani 1925

Historically, Gjilan’s economy was based mostly on agriculture. Land was worked with simple and primitive tools, producing low agriculture yield. Most production was for domestic consumption, not export. Regional agricultural output traditionally included: poultry, livestock, handicrafts, arboriculture, vegetable production.^[2]

Industry

After World War II, industrial development was initiated in the municipality. This was achieved in particular by raising tobacco combine. Favorable climatic conditions, soil solvency, commitment and massification of farmers, led to the development of this industrial branch. During 80 years in Combine tobacco are produced about 1,156 tons of fermented tobacco and cigarettes around 1,400 tons of various assortment of high quality. Alongside the development of the tobacco industry was also the textile industry, which Gjilan was recognized and affirmed in the domestic and external market. It can be said that through this industrial branch in Gjilan then identified as the industrial city. During the 1970s, industrial production was concentrated in the tobacco industry, textile, flour, in agro-industry, in the steelworks in the construction material industry, and radiators. After 1980 is also investing in a range of other branches of economic activity in which they were raised and developed other objects of industrial capacity.^[3]

Construction

Gjilan has a long tradition in construction, in 1980 employing over 2,000 people. This upward momentum in economic activity in the housing construction sector also extended throughout Kosovo and beyond, extending also to other Kosovo municipalities. A good road network provides good connections to Gjilan surrounding villages as well as other parts of Kosovo and the region. The construction of a ring road reduced traffic within the city. With - Project Mobility II is foreseen urban traffic organization of Gjilan.^[4]

Trade

Trade, even as branch of economics has a long tradition in Gjilan. Trade in this region increased after World War II. As a result of rapid development were created first commercial enterprises among which are mentioned company November 28, which had extended a network of shops in most localities in Anamorava and abroad. Within this sector is a well-established mall that was to be very important for the supply of goods to citizens. Private economy - potential economic development in general. In a free market economy, the private sector is an important components of economic development. in the Gjilan region, private sector development increased in the 1980s and 1990s, after liberation. In this period Gjilan businessmen began to invest in various industries. In this regard are set up several production companies as: Fluidi, Dea, Ola, RC cola etc.. Following is a list of other private sector manufacturing enterprises of the Gjilan economy by economic activity. Such as wood industry: Kosovo Mobileria, ―Diellza, ―Fanton ―Niti, ―Kulla, ―Gëzimi, ―Bardhi, ―Përparimi,―Vllaznimi, ―Niki. TEXTILE INDUSTRY : ―Dita Gsh, ―Diti Xhani, ―Brilant, ―Eksomor, ―Solid, ―Tekom,―Menakon. METAL INDUSTRY: ―Al Besimi,―Abyl Metal,―Lesna Dekon, Vali AL PVC ―Përparimi, ―Dritakos, ―Kosovaplas, ―Aldeti, ―Lindi Dea, ―Euro plast, Flora PVC, ―Aletriti, ―Besi, ―Beni, ―Rinasi, ―Çeliku, ―Mehuka, ―Omorina. CONSTRUCTION MATERIAL INDUSTRY : ―Bejta Company, ―Alkos Company, ―Lindi, ―Globi, ―Blerimi, ―Fontana, ―MEN, ―Tafa.^[5]

Development of Banking System

The development of the banking system. Banking system in the municipality of Gjilan is based on free market economy and private capital. Owners of private banks are mainly from abroad and they own about 96% stake, while 4% of the shares belong to the local capital. A few commercial banks began operating from the beginning: Kasabanka New Bank Of Kosovo, 1. NLB, 2.BpB Private Business Bank, 3.Commerce Bank, 4.MEB become Pro Credit Bank, 5.Raiffeisen Bank 6.National Commercial Bank, 7.TEB Bank, then microfinance institutions and insurance companies. In addition to commercial banks and microfinance institutions in Gjilan, there are 8 functioning insurance companies which conduct financial activities and services, among which are the following companies: 1.Dukagjini, 2.Dardania, 3.Kosova e re, 4.Siguria, 5.Sigal, 6.UNIQA GRUP AUSTRIA, 7. Insig dhe 8.Sigma. Insurance companies began operating in Gjilan since 2002. These companies have received their licenses from the BPK (Banking and Payment Authority of Kosovo) and operate under the rules in force. These insurance companies have their own products, which have defined and exercise their activities and operations.^[6]

Craftsmanship

Craftsmanship and its role in economy Generally viewed the craft activity appears to be ancient as human economic activity. This place usually exercised mainly in the urban centers. For Anamorava, craftsmanship has been developed mainly in cities, as in Gjilan, Preshevo and Bujanoc. Gjilan main space center of Anamorava and beyond, once represented a small town with all the characteristics of an oriental town. Obviously today in Gjilan main urban center of the area, craftsmanship it no longer has a role it had in past centuries, but transformed into similar activities of other nature, even today is showed its important role in the lives of residents, the relevant are. Now we give some brief information about the development of craftsmanship in Gjilan surroundings. From the very beginning there was little consideration given little written documents, but also memory, verbal confession respectively anthropology help in this regard. If we start from some old craft, that were once productive, give products as evidence of artifacts that are produced by the human hand. According to data for the years 1914-1928, the craftsmanship speak for many types of crafts, 1914 in Gjilan recorded three jewelry stores. In Gjilan even today there are many shops of jewelry. Currently operating 33 stores of gold and jeweler in Gjilan.^[7]

Agriculture

Bresalc Gjilan 5

Until 70 years, agriculture was severely underdeveloped in Gjilan. The land is mostly manual work and with primitive tools. Usage seeds for planting are traditional, qualitative and not productive, while extensive livestock breeds dominated and low productivity. In 70 years, agriculture marks are more intensive development. In this period, gains momentum social sector development in combines was organized in cooperatives and agricultural stations such as Station for the Advancement of Agriculture, Agricultural Combine, Agricultural Cooperatives, Tobacco Plant, City Butchery for small animals and thick, birds Incubator for opening capacity of 9 million birds a year, freezer for fruit trees, veterinarian service stations etc. All these agrarian subjects had employed around 4,000 permanent workers and about 10,000 seasonal workers. The entire agricultural production was well organized and had an export even in western countries. This trend of development continues until the end of 80, when the application of violent measures starts in Kosovo in undertaking and starts dismissals of all Albanian workers, replaced by Serbs, inexperienced and uninterested to work. The aim of the Serbian occupation, colonization and looting was the destruction of agriculture that was set up and developed with farmers toil and sweat of Albanian workers. War of 1999, in addition to the effects on people, nonrefundable damage caused to agriculture and the economy in general. After liberation farmers began work in very difficult conditions, without tools and without the machine working properly. In the meantime, the government was not properly consolidated. For central and local institutions did not have the budget nor the experience needed to face the challenges of the time, on one hand, while many foreign organizations who had come to offer help in the consolidation of Kosovo agriculture acted without any clear concept and did not yield the expected results, on the other hand, agriculture suffers stagnation fore. With the start of the privatization process, the majority of the mentioned agrarian undertakings changed their destination. Only two of them as plantations in Kravarica and poultry farm in Livoc village – Konsoni maintain their subjectivity and revive their previous production. Konsoni abattoir opened for broilers with an annual capacity of 600,000 thousand kg of meat. This farm has 60 full-time employees and a certain number of seasonal worker with a bright development prospect. Two companies MOEA and Ask Food have raised capacity of orchards in area of about 200 hectares and have built processing capacities, investments these promising prospects. Ask Food has signed contracts for the export of its products to Germany, Albania etc. These two companies have approximately 150 regular employees and 200 seasonal workers.^[8]

Livestock

Stanishor

The livestock sector includes: 14,000 head of cattle, 9,000 sheep, 4,000 goats, over 200,000 laying hens, broilers 150,000, 3,500 bees colonies, 4,500 pigs and 1,000 horses. Besides poultry farms, which had a purebred breeding other types of animals haven't given high yields in the production of meat, milk, wool and other products. Before the year 1995 in the municipality of Gjilan operated meat processing capacities, milk, wool, and incubators stations for birds, which have enabled a good agribusiness for farmers of this area. War took a heavy tool on the livestock sectors, where the entire livestock and machinery manufacturing units were completely destroyed. After liberation, some farmers recovered their farms, slowly increasing the number of heads of cows, calves, sheep, goats etc. The privatization process has also caused damage by converting agricultural land to commercial and residential properties.

Plant productivity: high trees about 300 ha, 10 ha of soft fruit, 100 ha of commercial greenhouses, cereals white surface with 3500 ha, 2500 ha area with corn, other crops area with about 3500 ha. Number of farmers involved in agricultural activities, livestock is 150 orchards, 100 greenhouses, farm of dairy cows over 20 are four mini farms of dairy cows from 4 to 20 cows near 300, mini farms for obesity 6 calves, 80 sheep farms, 42 goat farms, beekeeping 100, 9 Farms chickens, farm birds for meat - 2 broilers, sports Farm 1, Vali ranch Përlepnice village. Dairying. 1.Kabi dairy with a capacity of 25,000 liters, but that collects and processes close to 10,000 liters of milk for a day. 2. Dairy Ard 1,500 liters for a day. 3.Exclusive dairy goat milk processing "-Bioprodukt, with capacity 2000 liters for a day. III. Licensed slaughterhouses. 1.The Butchery "Gas-2.Butchery Luli- 3.Butchery Malësia -IV. Units butchers selling meat are 10 of them, four Association, which carry out activities in various sectors of the livestock but which are much less active. Farm infrastructure . - In general it is not good : - Farms did not respond technological standards, especially those of cows, calves and sheep and goats, - Lack of agricultural machinery for land preparation - are not regulated landfills for disposal of manure barn that will protect the environment, - A great part of them still do not use new techniques of food production capacity manufacturing capabilities local population are very small, among which: - Milk produced only 20% of the needs of the Municipality - Beef also about 20%- bird meat 25% - eggs somewhere around 80% - 15% Honey - With the tree about20 % - With vegetables about 25% - 30% With remarkable account cereals From these data show that the municipality of Gjilan for the fulfillment of food needs of its population is somewhere near the average of Kosovo . The rest of the food, 70-80%, is imported .^[9]

Natural Resources

Municipality of Gjilan has good nature resources as 3,000 ha meadows, pastures 4,000 ha, about 23.000Ha mountains and clean water, agricultural land also has some 10,500 ha of fodder for animals.^[10]

The role of Strategy in the Economy

The strategy develops economy. Supporting and based on the potential of human resources, economic, natural ones, financial surface and underground, which exist in the municipality of Gjilan is necessary and reasonable increase in policy activities in order to develop economy. Then to achieve the objectives, goals, mission and purposes for a more rapid development of the economy is necessary to draft Economic Development Strategy of the municipality for a specified period, by observing and analyzing the competitive factors that enrich this strategy. This opens strategy perspective, also is the basis for guiding the development of economic sectors and the economy in general. In aspect of overall economic development strategy mainly oriented and determined for a comprehensive development of the whole territory of the municipality of Gjilan, relying on its efficient governance, which will contribute much to be in service overall development. Currently, in function of development of the economy of the municipality of Gjilan operate various branches of the economy. Whereas, under of oriented investment strategy in the rapid development of these branches of the economy, such as: 1. Agriculture and its branches, 2. Advanced craftsmanship, 3. Industry and its branches - Mining and quarrying, underground resources - food industry - textile industry - wood industry, plastics, leather, paper, other - metal industry - chemical industry, 4. Construction, 5. Trade, 6. Tourism, 7. Financial services Banks, insurance companies, 8. Infrastructure and energy in addition present the key elements that should be incorporated into economic development strategy that identifies the characteristics of the economy of Gjilan positioned to these advantages, opportunities, weaknesses and flaws.^[11]

Advantages

• - New Population,
• - Geographic location suitable for economic development,
• - Potential enough educated people,
• - Induction of education sufficient for the market economy,
• - Tradition in Dërmarrësi and initiative,
• - The potential of natural resources and groundwater,
• - Ideal conditions for the development of agriculture and blegorisë,
• - Tradition in the development of various branches of industry,
• - Water abundant mineral
• - The existence of over 3,500 economic entities,
• - Development to different sectors of the economy,
• - The existence of educational institutions and university
• - Secondary schools profiled,
• - Existing Training Centre,
• - Settings real budget plan,
• - Strategic location in terms of economic development,
• - The existence of commercial banks,
• - The operation of insurance companies,
• - The presence of international financial institutions,
• - The presence of American USAID,
• - Presence of the European Agency,
• - Higher capital structure,
• - The potential of remittances from the diaspora,
• - Donor Support,
• - Foreign Investment.^[12]

Options

• - Providing professional advice in business,
• - Education Opportunities in different countries,
• - Development of training opportunities,
• - Provide business plans,
• - Development of investment projects for businesses,
• - The orientation of investment in manufacturing,
• - The orientation of investment in various branches of industry,
• - The orientation of investment in agro-industry,
• - Increased cooperation between enterprises,
• - Organize training for the business community,
• - Improving the structure of the economy,
• - Establishment of an Agency for economic development,
• - Accelerating the transformation of property and capital,
• - Increased investment after privatization of economic entities,
• - Formation of clubs and business associations,
• - Reforming the municipal tax policy,
• - Reform of fiscal policy at the central level,
• - Tax exemptions for some businesses for a certain time,
• - Creating better conditions for lending,
• - The existence of different products to banks
• - Increasing the cooperation of enterprises of different sectors,
• - Possibility of bringing foreign investment.^[13]

Weaknesses

• - Lack of cooperation between the municipality and the business community,
• - Lack of economic development strategies,
• - Unfavorable structure of the economy,
• - Lack of specific directions in Universities
• - Outdated system of Water and Sewage,
• - Insufficient infrastructure for energy supply,
• - Lack of industrial area,
• - Bankruptcies many private enterprises,
• - The slow process of privatization,
• - Investments in small enterprises after privatization,
• - Lack of an economic development fund,
• - Poor organization of the business community,
• - High fiscal burdens for businesses,
• - Lack of information on economic trends.^[14]

Disadvantages

• - Lack of support institutions in the development of agriculture,
• - Difficulty in obtaining loans for businesses,
• - Social destabilization of the population,
• - The problem of unemployment,
• - Low level of technology development,
• - Continued emigration of the population,
• - Inadequate commitment to economic development in general,
• - Lack of coordination of local and central government,
• - High interest rates and short loan terms,
• - Lack of adequate laws for business development.^[15]

References