Southern and eastern Serbia, particularly the Jablanički and Pčinjski districts, are among the poorest regions in the country based on key economic indicators. These areas have been a focus of the ESIRA project (Enhancing Social Innovation in Rural Areas), funded by the European Commission under Horizon Europe, aiming to improve socio-economic conditions in rural areas. The Institute for Development and Innovation from Belgrade participates as a partner.
Out of 19 municipalities in Serbia classified as underdeveloped, 15 are in Southern and Eastern Serbia. Unemployment rates in 2024 were 10.7% in Jablanički and 25.4% in Pčinjski, the highest in the country. Average gross salaries vary, with Bojnik at the lowest (100,732 RSD) and Medveđa at the highest (125,803 RSD).
The region has significant agricultural potential, with 55% of its territory under farmland, mostly privately owned. However, the sector is dominated by older farmers with limited investment motivation. Development plans focus on supporting small and medium enterprises in agro-processing, forestry products, medicinal plants, and organic products, alongside standardization and certification to increase value.
Industrial development is hampered by inadequate infrastructure and lack of assessments for potential growth. Road improvements and airport upgrades in Niš and Leskovac are considered essential for attracting investment. Unused brownfield sites in underdeveloped municipalities could offer opportunities for investors with employment obligations for locals.
Tourism potential is largely untapped, particularly in spa, health, and recreational tourism. Diversification through small rural households, traditional crafts, and cultural events could create new income streams and improve quality of life.
Entrepreneurship faces challenges including administrative hurdles, limited funding, poor marketing, and restricted access to mentorship and markets. Policies encouraging entrepreneurship, incubators, and networking opportunities are needed. Education programs, particularly vocational schools, should align with market needs. Cross-border collaboration with Bulgaria and North Macedonia is seen as an opportunity to share knowledge and establish joint distribution centers.
ESIRA runs from 2024 to 2027 with a 4.5 million euro budget and involves 15 organizations across eight European countries. Environmental sustainability is a key component, including reforestation, wastewater treatment, and regional waste management. The project emphasizes that economic growth should not compromise environmental health, aiming for long-term ecological balance.
Rural areas, covering nearly 80% of the EU territory and 57% of its population, generate 46% of total EU gross value added. ESIRA regional reports provide detailed socio-economic analysis, helping design policies and programs tailored to the specific needs of communities in Jablanički and Pčinjski districts.
