National Strategy of sustainable development of Montenegro (2007)

1.4 Challenges and development dilemmas 2. 0(',7(55$1($1675$7(*<$6$)5$0(:25. 2.1 Process and commitments

2.2 Challenges, goals and priority areas of MSSD 3. METHODOLOGY AND PROCESS OF PREPARATION OF NSSD MONTENEGRO 4. VISIONS AND GENERAL GOALS OF NSSD 5. THREE PILLARS OF SUSTAINABLE DEVELOPMENT: ECONOMIC DEVELOPMENT, ENVIRONMENT AND NATURAL RESOURCES, SOCIAL DEVELOPMENT

5.1 (FRQRPLFGHYHORSPHQWLGHQWL¿FDWLRQRISUREOHPVDQGFKDOOHQJHVSULRULW\ objectives and measures 5.1.1 Macro-economic developments 5.1.2 Regional development and employment

5.1.3 Transport

5.1.4 Tourism

5.1.5 Agriculture and rural development

5.1.6 Energy

5.1.7 Industry

5.1.8 New technologies

5.2 (QYLURQPHQWDQGQDWXUDOUHVRXUFHVLGHQWL¿FDWLRQRISUREOHPVDQGFKDOOHQJHV priority objectives and measures 5.2.1 Protection of biodiversity and conservation of natural values (especially in the protected areas) 5.2.2 :DWHU 5.2.3 Air 5.2.4 Soil 5.2.5 Forests 5.2.6 Environmental management system 5.2.7 Spatial planning 5.2.8 The sea and the coastal zone 5.2.9 Climate change and protection of the ozone layer 5.2.10 :DVWH 5.3 6RFLDOGHYHORSPHQWLGHQWL¿FDWLRQRISUREOHPVDQGFKDOOHQJHVSULRULW\ objectives and measures 5.3.1 Governance and public participation in decision-making 5.3.2 Education

5.3.3 Health care system

5.3.4 Equity and social protection 6

5.3.5 Culture and media

5.3.6 Urban development 6. DEVELOPMENT OF THE PARTICIPATORY PLANNING PROCESS 6.1 Mobilisation of stakeholders 6.2 Participatory planning process 6.3 Access to information and communication policy 7. PROCESS OF NSSD MONTENEGRO IMPLEMENTATION 7.1 NSSD Action Plan and co-ordination of implementation 7.2 Consistency evaluation of NSSD goals and objectives 8. MONITORING AND EVALUATION OF THE IMPLEMENTATION 8.1 Measuring and assessing the effectiveness of policies and measures 8.2 'H¿QLWLRQDQGLPSOHPHQWDWLRQRIWKHPRQLWRULQJSURFHVVDQGLGHQWL¿FDWLRQRI responsible actors 8.3 Indicators for monitoring the NSSD implementation 9. FINANCING OF THE NSSD PROGRAMME

9.1 Financing sources and cost estimation for NSSD implementation APPENDIX 1 – NATIONAL ACTION PLAN APPENDIX 2 – REFERENCES 7 1. WHY STRATEGY OF SUSTAINABLE DEVELOPMENT?

1.1 Potential for sustainable development in Montenegro Geographic position, climate and its spatial characteristics, as well as natural resources and their distribution, make Montenegro an exceptional European country in many ways. In somewhat less than 14.000 square kilometres of its territory, there are exceptional natural values, such as the Boka Kotorska Bay and sandy beaches of the southern part of the Adriatic coast, the biggest lake in the Balkans – the Skadar Lake, the Tara Canyon and mountains of the northern region, with often pristine nature, numerous glacier lakes and peaks with altitude of around 2.500 meters above the sea OHYHO7KH QDWXUH RI 0RQWHQHJUR LQFOXGLQJ ULFK ELRGLYHUVLW\ DQG VSHFL¿F ODQGVFDSH and cultural values, represents one of its greatest treasures. According to the number of different species per unit of surface area, Montenegro is one of the top countries in Europe, and at the same time, it is a home of numerous endemic species1. National legislation currently protects 7.7% of the territory (4 national parks and areas with a lower level of protection). The importance and exceptional characteristics of some natural values and cultural and historic monuments in Montenegro have been recognised by the international organisations dealing with the conservation of natural and cultural heritage. UNESCO protected areas include Tara River basin (MAB – Man and Biosphere program - since 1977), Kotor and Risan Bay and National park Durmitor (the program of World Natural and Cultural Heritage, since 1979 and 1980 respectively). Since 1995, Skadar /DNHLVRQWKHOLVWRILQWHUQDWLRQDOO\VLJQL¿FDQWZHWODQGDUHDVDVZDWHUELUGVKDELWDWLQ DFFRUGDQFHZLWKWKH:HWODQGV&RQYHQWLRQ WKH5DPVDU&RQYHQWLRQ  )RUHVWDQGZDWHUUHVRXUFHVUHSUHVHQWRQHRIWKHPRVWVLJQL¿FDQWQDWXUDOUHVRXUFHVWKDW Montenegro has and they are very important from the aspect of sustainable development. Forests cover approximately 45% of the overall territory. Despite the fact that the K\GURORJLFDO FRQGLWLRQV YDU\ VLJQL¿FDQWO\ ± IURP WKH DUHDV ZLWKRXW ZDWHU ZLWK QR VSULQJVRUVXUIDFHZDWHUÀRZVWRWKHDUHDVZKHUHWKHUHLVSOHQW\RIZDWHU0RQWHQHJUR as a whole belongs to the group of countries that have rich water resources. A special natural resource is approximately 300 km long coastline, narrow coastal zone and sea DTXDWRULXP DORQJ WKH FRDVW ZKLFK FRPSULVH D VSHFL¿F HFRV\VWHP DQG D VLJQL¿FDQW GHYHORSPHQWSRWHQWLDO$OWKRXJK0RQWHQHJURGRHVQRWKDYHVLJQL¿FDQWVRLOUHVRXUFHV GXHWRVSHFL¿FQDWXUDOFRQGLWLRQV WKHUHLVDVXEVWDQWLDOXQXWLOLVHGSRWHQWLDOIRUWKH development of agriculture. In economic and social sphere, Montenegro is characterised by a relatively high level of development, inherited from the period before the crisis of the 90’s of the previous FHQWXU\(VSHFLDOO\LPSRUWDQWDUHWKHDFKLHYHPHQWVLQWKH¿HOGRIKXPDQGHYHORSPHQW (that is, high level of development of the education and health care systems), which KDYH FRQWULEXWHG WR WKH IDFW WKDW 0RQWHQHJUR KDV VLJQL¿FDQW SRWHQWLDOV LQ WKH ¿HOG of human resources and a good basis for economic recovery. Economic reforms are underway, while European integration process that the country is committed to represent an additional incentive and potential for faster and sustainable development of the economy and the society. A very important value is the cultural diversity, which FDQDOVRJLYHDVLJQL¿FDQWFRQWULEXWLRQWRVXVWDLQDEOHGHYHORSPHQW 1) For example, there are 392 Balkan (regional) endemic plant species in Montenegro. 9

1.2 Connection between NSSD and the national, regional and global processes and documents 6LJQL¿FDQWQDWXUDOSRWHQWLDOVDQGUHFRJQLWLRQRIWKHGXW\WRSUHVHUYHWKHPKDYHEHHQ a source and a driving force for the adoption of the Declaration on Montenegro as an Ecological State. In this 1991 Declaration, the Parliament of the Republic of 0RQWHQHJUR GH¿QHG VWUDWHJLF FRPPLWPHQW WKDW IXWXUH GHYHORSPHQW RI 0RQWHQHJUR would be in accordance with the principles and requirements of sustainability. Such D FRPPLWPHQW ZDV FRQ¿UPHG IXUWKHU LQ WKH  &RQVWLWXWLRQ ZKLFK VD\V WKDW Montenegro is a “democratic, social and ecological state”, and which established the right to healthy environment and the duty to protect and improve it as constitutional principles. The need to develop these principles at the operational level has lead to preparation of the framework strategic document Directions for the Development of Montenegro as an Ecological State in 2000. On the national level, NSSD represents a further step in the effort to implement the JXLGHOLQHVGH¿QHGLQWKHDeclaration on Ecological State and the 1992 Constitution. It strongly relies/ is derived from the Directions for the Development as an Ecological State, while trying to incorporate elements of modern strategic planning and to establish a stronger connection with the international processes. At the same time, NSSD Montenegro is relying strongly on the Development and Poverty Reduction Strategy, and a whole set of sectoral strategic documents that were adopted in Montenegro recently. At the same time, NSSD Montenegro represents one of the elements of implementation of the Mediterranean Strategy of Sustainable Development (MSSD) at the national level. NSSD also represents a step towards joining the family of countries that have developed their national strategies of sustainable development and/or strategies of environmental management, in accordance with UNCSD recommendations, which are thus trying to contribute to maintaining the global equilibrium and to global development.

1.3 Principles of sustainable development NSSD Montenegro is based on the globally accepted principles of sustainable GHYHORSPHQW GH¿QHG WKURXJK WKH Rio Declaration and Agenda 21, Johannesburg Declaration and Implementation Plan, as well as on the principles of the UN Millennium Declaration (from which the Millennium Development Goals – MDGs – were derived). In the document Visions of Sustainable Development of Montenegro, these principles are summarised as follows: x Integration of environmental concerns into development policies; x Internalisation of environmental costs (i.e. conversion of external costs of environmental degradation into internal costs of polluters/users) trough the implementation of polluter/user pays principles; x Participation of all the stakeholders in the decision making, consultations, dialogue and partnerships; x Access to information and justice; x Equity among generations and equity within the same generation (including 10 gender equality); x The precautionary principle i.e. requirement to safeguard natural equilibrium in the absence of certainty; x The principle of subsidiarity and interdependency between local and global levels; and x $FFHVVWRVHUYLFHVDQG¿QDQFLDOUHVRXUFHVQHFHVVDU\WRPHHWWKHEDVLFQHHGV These principles represent a prism through which the existing problems and challenges for sustainable development of Montenegro have been analysed, and a framework in which the goals, objectives and measures necessary for the implementation of VXVWDLQDEOHGHYHORSPHQWSROLFLHVKDYHEHHQGH¿QHG7KH\DOVRUHSUHVHQWJXLGHOLQHV that will direct the overall process of NSSD implementation. Having in mind the above-mentioned, it can be said that sustainable development (in Montenegro, as well as globally) includes the following2: x Balanced and equitable economic development that can be sustained over the time; x Poverty reduction, through empowerment and ensuring better access of the poor to necessary services and resources; x Participation of all the stakeholders in decision-making (central and local governments, NGOs, private/business sector, professional organisations, unions) while building dialogue and trust, and developing social capital; x Careful management and preservation (to the greatest possible extent) of non- renewable resources; x Rational/sustainable use of energy and natural resources (water, land, forests, etc); x Minimisation of wastes, effective pollution prevention and control and minimisation of environmental risks; x Enhancing education and health systems, and improving gender balance; x Safeguarding cultural identities.

1.1 Challenges and development dilemmas Republic of Montenegro is committed to the protection of environment and sustainable use of natural resources, faster and more balanced economic and social development, DQGWKHSURFHVVRI(XURSHDQLQWHJUDWLRQZKLFKDOOGH¿QHWKHGLUHFWLRQVDQGJRDOVRI LWVGHYHORSPHQW$WWKHVDPHWLPHLQWKH¿UVW\HDUVRIWKHst century, Montenegro is facing numerous, complex challenges and problems that need to be overcome in order to ensure these goals are achieved. One of the key challenges is implementation and acceleration of economic reforms and ensuring a balanced economic development; closely related are challenges of improving the living standard and reducing poverty. Integration of the sustainability requirements into development policies will represent a special challenge, given the poor experiences so far. In some cases, this challenge will be more pronounced due to the uncertainty and lack of information necessary for the decision making process.  $VGH¿QHGLQWKHGRFXPHQWFramework Orientations for Sustainable Development Strategy of Montenegro 11 Raising the awareness and capacity building for the implementation of the concept of sustainable development are, for these reasons, of the utmost importance. Changes in the governance system (improved co-operation, co-ordination and consultations between various sectors – within the government, as well as between the government and the private and civil sectors), represent another important challenge (at the same time, this is a prerequisite for sustainable development of the society). Besides these, VLJQL¿FDQW FKDOOHQJHV DUH DOVR UHODWHG WR WKH SURFHVVHV RI (XURSHDQ LQWHJUDWLRQ DQG globalisation, and there is a need to improve regional co-operation so that it contributes to the achievement of the sustainable development goals. Montenegro has been facing a choice of the development model or road to be taken LQRUGHUWRRYHUFRPHWKHH[LVWLQJSUREOHPVDQGFKDOOHQJHVPRVWUDSLGO\$VLJQL¿FDQW part of the public discusses shortcomings and risks associated with the applied development model. At the same time, there is a growing societal consensus that the future development of Montenegro should be based on the principles of sustainability. Development dilemmas, however, are far from being resolved, and concrete development modalities and application of the principles of sustainability will be the subject of societal efforts for a longer period of time. In order to secure sustainable development of a society, it is necessary to take a comprehensive approach in managing complex social processes, and to provide for a careful balancing of economic, social and goals related to the protection of the environment and natural resources. Sustainable development also requires engagement of all the stakeholders and permanent dialogue in order to overcome/ avoid the patterns RIXQVXVWDLQDEOHJURZWKDQGGHYHORSPHQWZKLOHVHFXULQJ¿QDOUHVXOWVWKDWZLOOEHRI WKHKLJKHVWEHQH¿WVWRWKHVRFLHW\DVDZKROHWDNLQJLQWRDFFRXQWWKHIXWXUHDQGWKH next generations. The process of NSSD preparation represents a step in that direction – in the direction of sustainability, dialogue and prosperity. 12 2. MEDITERRANEAN STRATEGY AS A FRAMEWORK

2.1 Process and commitments Mediterranean Action Plan (MAP, within UNEP) and the Mediterranean Commission for Sustainable Development (MCSD) have been designated at the Johannesburg summit as the most relevant programme and institutional framework for the implementation of sustainable development in the Mediterranean region. In an attempt to enable implementation of sustainability principles in the Mediterranean region and to overcome the problems national systems are facing with integration of the environment and development issues, MCSD has worked intensively on the preparation of the Mediterranean Strategy of Sustainable Development (MSSD) in the period after 1995 and especially after the Johannesburg summit. The Convention on the protection of the sea and coastal zone of the Mediterranean – Barcelona Convention - and supporting protocols from 1995, which came out after the changes and amendments of the 1976 Convention, represent the legal framework for the activities of MAP and MCSD (with headquarters in Athens). MAP member states are 21 countries of the Mediterranean and the European Union; Montenegro renewed its membership in the MAP institutions in September 2003. A necessity to adopt national strategies, which would be inline with the principles laid down by the UN Commission for Sustainable Development (UN CSD) and could be implemented within the regional processes, was stressed at the 9th MCSD meeting in Genoa (June 2004). Montenegro, as a new MAP member state and one of the smallest countries in the Mediterranean was selected to participate in the initial phase of preparation of the strategies within the process of MSSD implementation, together with seven other countries. 7KH¿QDO066'SURSRVDOZDVDSSURYHGDWWKHth MCSD meeting in June 2005 in Athens, and the Strategy was adopted at the 14th regular meeting of the contracting parties of the Barcelona Convention, held on November 8-11, 2005 in Portoroz, Slovenia.

2.2 Challenges, goals and priority areas of MSSD MSSD recognises sustainable development as a necessity in overcoming the following development challenges in the Mediterranean: ƒ The challenge of environmental protection; ƒ Demographic, economic, social and cultural challenges; ƒ The challenge of globalisation, regional co-operation and management. 6WDUWLQJIURPWKHVHFKDOOHQJHV066'GH¿QHGWKHORQJWHUPYLVLRQRIWKH0HGLWHUUDQHDQ as a politically stable, prosperous and peaceful region. This vision is based on the selection of “win-win” scenarios that promote co-development of the Mediterranean 6RXWKDQG1RUWKDQGXVHWKHV\QHUJ\RIHI¿FLHQWHQYLURQPHQWDOGHYHORSPHQWDODQG economic management. Four main MSSD goals are as follows: 14 1. Contribute to economic development by enhancing Mediterranean assets; 2. Reduce social disparities by implementing Millennium Development Goals and strengthen cultural identities; 3. Change unsustainable production and consumption patterns and ensure sustainable management of natural resources; 4. Improve governance at the local, national and regional level. Finally, seven priority areas of MSSD actions are: 1) better management of water resources and demand; 2) improved rational use of energy, increased use of energy from renewable sources and mitigation of and adaptation to climate change; 3) sustainable mobility through appropriate management in transport; 4) sustainable tourism as a leading sector of the economy; 5) sustainable agriculture and rural development; 6) sustainable urban development; and 7) sustainable management of the sea, coastal zone and marine resources. 15 3. METHODOLOGY AND PROCESS OF PREPARATION OF NSSD MONTENEGRO The process of drafting NSSD Montenegro used positive experiences from the global, European and the processes in the Mediterranean region. It was based on the principles and recommendations stated in the Rio Declaration and Agenda 21, as well as in the Declaration and Implementation Plan from Johannesburg. NSSD Montenegro is also harmonised with the Mediterranean and EU Strategy of Sustainable Development, and with the Lisbon process. Another global process that NSSD leans on is the process based on the United Nations Millennium Declaration and the Millennium Development Goals. The methodology of drafting Montenegrin NSSD is in accordance with the UHFRPPHQGDWLRQVWKDWGH¿QHWKHVWUDWHJ\RIVXVWDLQDEOHGHYHORSPHQWDVDco-ordinated, participatory and interactive process of deliberation and action so that the economic, social and environmental goals are achieved in a balanced and integrated manner at all relevant levels (UN/DESA/DSD). The process involves the analysis of the current situation, formulation of policies and action plans, implementation, monitoring and regular reviews. This is a cyclical and interactive process of planning, participation and action, in which the emphasis is given to progress management towards the achievement of the sustainability goals, rather than the process of preparation of a ³SODQ´DVD¿QDOSURGXFW. At the national level, NSSD is based on the existing strategic documents and available information. NSSD makes an attempt to consider recognised problems in a comprehensive way and to add new quality to the process of resolving them, while respecting the sustainability requirements. NSSD is also aiming to recognise those strategic documents, policies and measures that do not meet these requirements. For some sectors and topics that were analysed in the process of NSSD drafting, lack RI LQIRUPDWLRQ DQG VWUDWHJLF GRFXPHQWV UHSUHVHQWHG D GLI¿FXOW\ +RZHYHU 166' Montenegro should be understood as a periodic and repetitive process in which the information received from the monitoring and evaluation system will be used for IXUWKHU LPSURYHPHQW DQG SHULRGLFDO DGMXVWPHQW RI WKH GH¿QHG JRDOV DQG PHDVXUHV NSSD Montenegro should also be seen as a framework strategy that the existing and future strategic documents and plans need to be harmonised with as soon as possible. 166' GH¿QHV YLVLRQV DQG VHWV ORQJWHUP JXLGHOLQHV RI VXVWDLQDEOH GHYHORSPHQW of Montenegro, while the time horizon of the NSSD Action Plan is 2007-2012. 'UDIWLQJRI166'01UHSUHVHQWVWKH¿UVWVWHSLQWKHORQJWHUPSURFHVVWKDWLQYROYHV FRQWLQXRXV PRQLWRULQJ DQG SHULRGLFDO UHYLHZV RI WKH GRFXPHQW RI WKH LGHQWL¿HG SUREOHPV GH¿QHG JRDOV DQG REMHFWLYHV DQG SURSRVHG PHDVXUHV  7KH EDVLF F\FOH for the monitoring of implementation is one-year period, while detailed assessment of the Strategy implementation is planned every 5 years. A detailed report on the progress of implementation and the changes and amendments of the Action Plan for WKHUHPDLQLQJWZR\HDUVRIWKH¿UVWLPSOHPHQWDWLRQSHULRGZLOOEHSUHSDUHGLQ 7KHVH DFWLYLWLHV ZLOO FRQWULEXWH WR WKH SUHSDUDWLRQV IRU WKH 7KLUG :RUOG 6XPPLW RQ Sustainable Development. Detailed evaluation and review of the document is planned DWWKHHQGRIWKH¿UVWLPSOHPHQWDWLRQSHULRGLHDWWKHHQGRI Ministry of Environmental Protection and Physical Planning (MEPPP)3 was the co- ordinator of the NSSD drafting process. The process was supported by UNEP/MAP, 3) Since the end of 2006 it is the Ministry of Tourism and Environmental Protection 17 UNDP and the Ministry of Environment, Land and Sea of the Republic of Italy. It lasted one year and was set up in such a way as to enable interaction and exchange of information between different components and stakeholders in the process. In the beginning of the process, the basic documents were prepared – Visions and Framework Orientations for Sustainable Development of Montenegro - with the aim to set the grounds for the Strategy preparation at both the conceptual and practical levels. Public participation and consultations with stakeholders were mainly exercised through the three national workshops (June and December 2005; June 2006) and two rounds of wide participatory meetings at the local/regional level. Participatory meetings were co-ordinated by the non-governmental sector. Representation of the stakeholders was also ensured at the round tables held in January 2006, when NSSD priority goals were determined for various areas. Prioritisation methodology was designed in a way to enable various participants in the process to give their views about the priority goals on the basis of two sets of criteria – importance and feasibility. On the basis of the individual assessments, the group rankings were derived and the results were later used by the expert working groups for preparation of the action plan. Expert working groups (for economic development, environment and social development) held 4 rounds of meetings in the period September 2005 - March 2006. 7KHVHPHHWLQJVZHUHXVHGWRDJUHHRQWKHZRUNPHWKRGRORJ\DQGWRGH¿QHWKHUHVXOWVDQG outputs. The working team (consisting of the representatives of public administration, expert institutions, University, NGOs and consultants) was in charge of preparing the draft Strategy and other relevant working materials, for the incorporation of the recommendations from the participatory process, for the evaluation of consistency of NSSD goals (among various sectors, as well as in relation to other documents) and similar. The Steering Committee4 and the National Council for Sustainable Development, as the bodies with wide stakeholder representation, have also provided expert and political support to the process. 4) Steering Committee was established in July 2005 for the needs of drafting of NSSD MN; it con- sisted of representatives of a range of stakeholders, including relevant Ministries and Government in- stitutions, University and expert institutions, business associations, the Trade Union and NGO sector. 18 4. VISIONS AND GENERAL GOALS OF NSSD 6XVWDLQDEOHGHYHORSPHQWYLVLRQIRU0RQWHQHJURKDVEHHQGH¿QHGLQWKH166'EDVLF GRFXPHQWRIWKHVDPHQDPHZKLFKZDVSUHVHQWHGDWWKH¿UVWQDWLRQDOZRUNVKRS -XQH 2005 in Cetinje), and which was developed further through the consultations with the main stakeholders of the process and the Steering Committee through August 2005. According to that document, the vision of sustainable development of Montenegro includes: ƒ Economic development vision, which recognises the need to accelerate economic growth and complete transition to market economy (stimulating innovation and productivity, enhancing entrepreneurship, reducing brain drain) while ensuring sustainability requirements are met through integration of environmental and economic policies and mitigation of the effects of growth on the environment ; ƒ Social vision, which encompasses poverty reduction and protection of the worst RIISRSXODWLRQJURXSVDVZHOODVHQVXULQJDPRUHHTXLWDEOHVKDUHRIEHQH¿WV from economic development across all segments of society; ƒ Environmental vision i.e. the need to protect the environment and manage natural resources in a sustainable way, promoting at the same time synergy between development and environment and taking into account the right of future generations to quality of life; ƒ Ethical vision, which includes governance improvements through building capacity of all the actors (central government, local authorities, private sector and civil society) in a move from centralised decision-making process to negotiation, co-operation, concerted action and decentralisation, and implementing principles of sharing and solidarity, respecting human rights WKURXJK UHDI¿UPLQJ WKH ULJKW WR GHYHORSPHQW LQ D KHDOWK\ DQG HTXLWDEOH environment; ƒ Cultural vision i.e. necessity to maintain cultural diversity and identity while enhancing the cohesion of the whole society. %DVHGRQWKHYLVLRQVRIVXVWDLQDEOHGHYHORSPHQWRI0RQWHQHJURDQGLGHQWL¿FDWLRQRI SUREOHPVDQGFKDOOHQJHVLQWKH¿HOGRIHQYLURQPHQWDOSURWHFWLRQDQGPDQDJHPHQWRI natural resources, economic and social development, the following general goals of 166'0RQWHQHJURKDYHEHHQGH¿QHG5: 1. Accelerate economic growth and development, and reduce regional development disparities; 2. Reduce poverty; ensure equitable access to services and resources;  (QVXUHHI¿FLHQWSROOXWLRQFRQWURODQGUHGXFWLRQDQGVXVWDLQDEOHPDQDJHPHQW of natural resources; 4. Improve governance system and public participation; mobilise all stakeholders, and build capacities at all levels; 5. Preserve cultural diversity and identities. 5) Promotion of the sustainable development concept and of the values this concept encompasses is a precondition for the achievement of these goals. 20 6SHFL¿F 166' REMHFWLYHV IRU FRQFUHWH VHFWRUV DQG WKHPHV FRYHUHG E\ WKH 6WUDWHJ\ are presented in the following chapters (5.1 to 5.3) and in the National Action Plan (Appendix 1). The link between general goals and sectoral/thematic objectives is indicated in the Action Plan. 21 5. THREE PILLARS OF SUSTAINABLE DEVELOPMENT: ECONOMIC DEVELOPMENT, ENVIRONMENT AND NATURAL RESOURCES, SOCIAL DEVELOPMENT  (FRQRPLF GHYHORSPHQW LGHQWL¿FDWLRQ RI SUREOHPV DQG FKDOOHQJHV SULRULW\ objectives and measures

5.1.1 Macro-economic developments (FRQRPLF UHFHVVLRQ RI WKH ¶V WRJHWKHU ZLWK WKH LQHI¿FLHQFLHV DQG VWUXFWXUDO inadequacies inherited from the period of centrally planned economy have contributed to the current dissatisfactory condition of the Montenegrin economy. In 2004, GDP per capita was 2.473 EUR (current prices) i.e. 6.641 USD in purchasing power party (PPP USD). The projected GDP level for 2005 is 1.580 million EUR, that is 1,759 million EUR for 2006, which, together with the retail price increase of 3%, secures real growth of 6%. During the last few years, the real GDP growth rate ranged from 1.7 to 3.7% annually. According to the data from the Employment Agency, the unemployment was VLJQL¿FDQWO\UHGXFHGLQWKH\HDUVDQGRQZDUGV±IURPRYHULQWROHVV than 19% in 20056, while in September 2006 the unemployment rate was less than 24.9% as compared to the same month of the previous year. The unemployment rate YDULHVVLJQL¿FDQWO\EHWZHHQUHJLRQVDQGDFFRUGLQJWRJHQGHU LWLVVXEVWDQWLDOO\KLJKHU in the northern part of the Republic and for female population). The average net salary in 2005 was 213 EUR, while the poverty rate in 2003 was 12.2%, that is, 10.9% in :LWKWKHUDWHRILQWKDWLVLQWKH¿UVWWHQPRQWKVRIWKH LQÀDWLRQUHPDLQHGDWDORZOHYHOLQWKHODVWIHZ\HDUV7KHVKDUHRIIRUHLJQGHEWLQ*'3 in 2003 and 2004 was at the level of 30-33% (in absolute terms, foreign debt was 438 and 502 million EUR in these two years respectively); foreign debt in the end of 2005 was 513,4 million EUR, which is 31.3% of GDP in 2005, and in September 2006 it fell to 478,6 million EUR, which is 27.22% of the projected GDP for 2006. Other indicators of macro-economic trends show high share of public expenditures in GDP, high trade GH¿FLW LQWKHSHULRG-DQXDU\0D\WKHUHKDVEHHQDQLQFUHDVHLQH[SRUWVWKXV WKH WUDGH GH¿FLW ZDV  PLOOLRQ (85  DQG VWLOO ORZ DOWKRXJK JURZLQJ OHYHO RI foreign direct investments (approximately 50 million EUR in 2004, 382 million EUR in 2005, 317 million EUR in the period January-September 2006). Planned budgetary GH¿FLWIRULVRQO\PLOOLRQ(85 UHGXFHGE\WKHDPRXQWIRUWKHUHSD\PHQWRI frozen foreign currency savings) or 1.7% of the projected GDP, which is lower, both in absolute and in relative terms, than in 2005; in the period January-September 2006 there has been a budgetary surplus of 21.583 million EUR achieved. Positive trends have also been recorded in the banking sector.7 Besides the unfavourable economic conditions, the inherited structure of the economy LV TXLWH XQDGMXVWHG WR WKH UHTXLUHPHQWV RI VXVWDLQDEOH GHYHORSPHQW 6LJQL¿FDQW and gradual changes are therefore necessary in this area including a shift from an economy based on polluting industries and unsustainable exploitation of resources. A special problem is linked to the fact that over a longer period of time, development decisions were not made based on the methods that take into consideration social and environmental effects besides the economic ones. Lack of such experiences and capacities, especially in the process of transition to a market economy, and with a view to the necessity to accelerate new development cycle, represent a serious risk to sustainable development. 6) Data from the Labor Force Survey (carried out by Monstat) indicate somewhat higher unemploy- ment rate. 7) Data sources are Economic Reforms Agenda 2002 – 2007, Report on Human Development in Mon- tenegro (UNDP/ISSP 2005) and Monet (ISSP). Source of data for 2005 and 2006 is the Secretariat for Development. 23 The key challenges are as follows: maintaining macro-economic stability, accelerating HFRQRPLF JURZWK FRPSOHWLQJ SULYDWLVDWLRQ SURFHVV LQFUHDVLQJ HI¿FLHQF\ DQG strengthening competitiveness of the economy, securing equitable and balanced development on the regional level as well as among the representatives of various social groups, and ensuring a higher level of integration of environmental requirements into all segments of economic policy. Macro-economic policy in the upcoming period should be focused on overcoming these challenges, that is on maintaining the achieved macro-economic stability and creation of favourable environment for a faster and more balanced economic growth and development. Recognition of comparative advantages of Montenegro and development RIDGLVWLQFWLYHDQGTXDOLW\SURGXFWDVZHOODVSURWHFWLRQRIVSHFL¿FYDOXHVIURPZKLFK such advantages ensue, should represent the basis for the creation of economic policies. Strengthening the competitiveness of the local economy (including restructuring and privatisation), stimulating entrepreneurship and attracting foreign direct investments remain the dominant economic issues. Besides, it is necessary to include the requirements linked to the sustainable development principles into the process of economic policy making and implementation. These SULPDULO\UHIHUWRHTXLWDEOHGLVWULEXWLRQRIEHQH¿WVIURPHFRQRPLFGHYHORSPHQWPRUH VLJQL¿FDQW SXEOLF SDUWLFLSDWLRQ LQ PDNLQJ WKH GHYHORSPHQW GHFLVLRQV VWUHQJWKHQLQJ of social and environmental responsibilities of economic entities, and promotion and creation of a “knowledge based economy”. ,QWHJUDWLRQ RI WKHVH UHTXLUHPHQWV LQYROYHV D PRUH VLJQL¿FDQW VWDWH LQWHUYHQWLRQ LQ regulating economic developments in the areas where ‘failures’ of the market as the basic regulator have been recognised in the developed market economies (such areas are, for example, environmental protection, regional development, social policy). In this process, Montenegro should use the experiences and models that were tested in WKHGHYHORSHG(XURSHDQHFRQRPLHVDQGLQWKLVZD\DFKLHYHWZRIROGEHQH¿WV±LQ the implementation of the sustainable development concept on one hand, and in the process of EU integration on the other. Priority NSSD task is to stimulate the development of service economy, tourism, maritime transport, etc, as the strategic development sectors A number of measures for the implementation of this objective are discussed in the tourism section of the Strategy. Besides these, priority measures also include further development and implementation of incentives and attraction of foreign direct investments into service sectors, as well as the plan for revitalisation of maritime transport.

5.1.2 Regional development and employment 0RQWHQHJUR LV FKDUDFWHULVHG E\ VLJQL¿FDQW regional differences8 in the level of development, which are primarily manifested through the underdeveloped northern region and more developed central and southern regions. In addition to economic hardship, the underdevelopment of the northern region also brings limitations in respect to social development (through limited access to institutions and services) and more pronounced risks of unsustainable use of natural resources (primarily forests). 8) Data sources are Monstat, Employment Agency and ISSP 24 The northern region comprises just over one half of Montenegrin territory and has the following characteristics: ƒ The region contributes to national GDP with only 18% (in the beginning of 1990 this was 25.5%); municipalities in which 2002 GDP per capita was close to or EHORZWKHOHYHORI(85 HJ$QGULMHYLFD5RåDMH DUHSDUWRIWKHUHJLRQ ƒ The unemployment rate is close to 30%9 (according to the same source, the unemployment rate in the southern region was slightly lower than 21%); ƒ De-population – the number of inhabitants in the period between the 1991 and 2003 censuses dropped by 9 index points; close to one third of the total population lives in the northern region; ƒ :LWKSRYHUW\UDWHLVVLJQL¿FDQWO\KLJKHUWKDQWKHDYHUDJHLQWKH5HSXEOLF ƒ Transportation (and other) infrastructure, especially in rural areas, is underdeveloped. On the other hand, the region has substantial resources, especially when it comes to agriculture (67% of cultivable land and 70% of the cattle) and forestry (71% of wood PDVV 7KHQRUWKHUQUHJLRQDOVRKDVVLJQL¿FDQWSRWHQWLDOIRUWKHGHYHORSPHQWRIYDULRXV types of tourism, especially those that could complement the tourist offer (currently the tourist offer is predominantly linked to the southern region) and contribute to the overall sustainability of the tourism sector. The southern region is at the same time the part of Montenegro with the highest population density; and is still an area to which VLJQL¿FDQWQXPEHUVRILQKDELWDQWVDUHPRYLQJWR WKHVDPHDSSOLHVWRFHQWUDOUHJLRQ  $OWKRXJK D VLJQL¿FDQW GHFUHDVH LQ WKH XQHPSOR\PHQW UDWH KDV EHHQ UHFRUGHG VLQFH the year 2000, with the rate of a slightly below 19% in 2005, the unemployment10 is still one of the key economic problems. Besides the economic, the unemployment DOVRFDXVHVVLJQL¿FDQWVRFLDOSUREOHPVVXFKDVVRFLDOH[FOXVLRQWKHIHHOLQJRIEHLQJ deprived of one’s rights and the sense of uselessness, and similar. The main characteristics of unemployment in Montenegro are: ƒ Unfavourable relationship between the number of employed and unemployed persons; ƒ Durability; in 2004, almost 65% of the unemployed were waiting for employment for more than one year, while the average time of waiting for employment was 3.7 years; ƒ Gender inequality; the unemployment rate among men was around 15%, and among women approximately 26% (in 2004); ƒ High share of unemployment of young people; almost one fourth of the unemployed are persons below 25 years of age, while the average age of the unemployed is 32; ƒ Regional differences; ƒ Increase in unemployment of the disabled persons. Creation of new jobs and improving the unemployment characteristics (especially reducing gender inequalities, stimulating employment of youth and the disabled) are among the key sustainable development challenges. The other major challenges LQFOXGH IXO¿OPHQW RI ODERXU ULJKWV UHGXFWLRQ LQ WKH IUHTXHQF\ RI XQSURWHFWHG ZRUN – illegal work and «grey economy» employment) and especially solving the problem 9) Data from the Monstat Labor Force Survey for 2004 10) Data sources include Employment Agency, Labor Force Survey and ISSP 25 of unemployment of the internally displaced persons, refugees and Roma. For these population categories, the unemployment rates are 10-20% higher than the average ones. Striving to reduce regional development disparities and improve living conditions in the less developed areas should be the basis for policy making in the future period. 7KHVHFDQEHSULPDULO\DFKLHYHGWKURXJKPRUHVLJQL¿FDQWVXSSRUWWRWKHGHYHORSPHQW of the northern region and rural areas, while ensuring the optimal use of comparative advantages that these areas have (rural development is elaborated in more detail in the section 5.1.5 – Agriculture and rural development). The programs for stimulating employment and development of small and medium size enterprises should pay special attention to possibilities for creation of «green jobs», that is for creation of new jobs in environmentally friendly sectors. Priority NSSD objectives are: a) SME development and increase of employment (priority is the northern region and development of mountain and eco-tourism, production of food, especially the healthy one, and sustainable forestry); and b) improving the infrastructure (transport, water supply and sewage, electricity supply) as a precondition for development. 0HDVXUHV IRU WKH DFKLHYHPHQW RI WKH ¿UVW REMHFWLYH LQFOXGH SURJUDPV IRU 60( GHYHORSPHQWDQGGHYHORSPHQWRIHQWUHSUHQHXUVKLS ¿UVWRIDOOLQDJULFXOWXUHDQGWRXULVP and in the northern region), capacity building at the local level and strengthening of inter-municipal and regional co-operation. Measures for stimulating employment are primarily directed towards the population categories that have the unemployment rate above the average (youth, women, the disabled, Roma, etc) and towards solving the problems of redundancies (technological surplus workers). Measures for infrastructure improvements are discussed in more detail within respective sectors and topics (transport, energy, agriculture and rural development, water). From a regional perspective, road infrastructure, electricity supply and water supply (especially in the rural areas) are priorities in the north, while priority issues of the coastal region include water supply, electricity supply and sewage systems/ wastewater treatment.

5.1.1 Transport 7UDQVSRUWKDVDGLUHFWLPSDFWRQKXPDQOLYHV2QRQHKDQGLWLQÀXHQFHVLQGLYLGXDO PRELOLW\DQGDFFHVVLELOLW\RIVSHFL¿FDUHDVDQGRQWKHRWKHUWUDQVSRUWKDVDQLPSDFW in regard to rational use of time and on quality of life in general. Transportation infrastructure and organisation of transport substantially contribute to mobilisation of WKHHFRQRPLFSRWHQWLDOZKLOHWUDQVSRUWVHFWRUKDVDVLJQL¿FDQWVKDUHLQDFRXQWU\¶V*'3 $WWKHVDPHWLPHWUDQVSRUWLVWKHVRXUFHRIVLJQL¿FDQWSUHVVXUHVRQWKHHQYLURQPHQW – pollution of air and other environmental media (through emissions from the process of combustion of fossil fuels and creation of waste), creation of noise, and pressures on biodiversity, land and coastal zone due to the construction of transportation infrastructure. Numerous problems and limiting factors that Montenegrin transport sector is facing KLQGHUPRUHUDSLGDQGPRUHHI¿FLHQWGHYHORSPHQWRILPSRUWDQWHFRQRPLFVHFWRUVVXFK 26 DVWRXULVPDJULFXOWXUHDQGWUDGH7KHVHSULPDULO\LQFOXGHVSHFL¿FODQGFRQ¿JXUDWLRQ accumulated problems in the organisation of participants in the transportation chain, ¿QDQFLQJ DQG PDQDJHPHQW DQG LQVXI¿FLHQW XVH RU EDG FRQGLWLRQV RI WUDQVSRUWDWLRQ infrastructure. The set of new laws for road and railway transportation has been prepared, but there is still the need to modernise the legal framework in which the Montenegrin transportation system is operating and to make it more functional. The level of motorization is approximately 170 cars per 1,000 persons, which is relatively high in comparison to countries with a similar level of GDP per capita, but IDUEHORZWKH(8DYHUDJH7KHYHKLFOHÀHHWLVTXLWHROGHVSHFLDOO\ZKHQWUXFNVDQG buses are considered (e.g. average age for busses is 18 years). The control of vehicle ORDGLQIUHLJKWWUDQVSRUWLVLQDGHTXDWHDQGH[FHVVORDGVVLJQL¿FDQWO\FRQWULEXWHWRWKH damages of the road network. Budgetary limitations experienced in the past 15 years have led to inadequate maintenance of road as well as railway infrastructure. Approximately 1,100 out of 1,847 km of state roads require urgent maintenance works. Inadequate maintenance has resulted in the reduction of average railroad travel speed (to the dissatisfactory 15-35 km/h) and has contributed to a low level of use of railway transport capacities. ,QVXI¿FLHQWPDLQWHQDQFHDOVRKDVVHFXULW\LPSOLFDWLRQV Total damage from transportation accidents is estimated at around 2% of GDP, which makes the issue of transportation security one of the priority issues in the sector. Besides infrastructure aspects and security of transportation means, another important issue is the dissatisfactory level of compliance with transport regulations. There are 5 ship companies registered in Montenegro, which mainly perform the services of line maritime transportation in the Adriatic basin. The companies have  VKLSV ZLWK WKH FDSDFLW\ RI VRPHZKDW RYHU  ':7 ,Q DGGLWLRQ WKHUH LV D VLJQL¿FDQWYROXPHRIPDULWLPHWUDQVSRUWDWLRQLQWKH0RQWHQHJULQWHUULWRULDOVHDVDQG there are also a large number of yachts and smaller vessels during the tourist season. The system for controlling navigation security and safety in the territorial seas is not fully equipped in accordance with the international regulations (e.g. service for the protection of sea against pollution is still not operational, although it formally exists). Aspiration to provide for good accessibility (which is a precondition for the development of priority economic sectors) with as low a disturbance in the space as possible, minimisation of negative impacts on the environment and improved safety represent the general frame for policy making and implementation in the transport sector in Montenegro. Priority NSSD objectives for transport are: a) improve transportation connections, especially for the northern region, through better maintenance of the existing and construction of new infrastructure; development of combined transport; and b) full integration of environmental requirements in the development of infrastructure SURMHFWVDQGLQWKHDGRSWLRQRIUHJXODWLRQVLQWKH¿HOGRIWUDQVSRUWUHGXFHGSROOXWLRQ from transportation and increased transportation safety. 0HDVXUHVIRUDFKLHYLQJWKH¿UVWREMHFWLYHDUHSULPDULO\GLUHFWHGWRZDUGVWKHFUHDWLRQ RI¿QDQFLDOSUHFRQGLWLRQVIRUPDLQWHQDQFHDQGFRQVWUXFWLRQRIQHZURDGLQIUDVWUXFWXUH from public and other available resources. In addition, measures aiming to contribute 27 to the protection of road infrastructure from the damages caused by excess load of freight vehicles are also recommended here. For the achievement of the second objective, a whole set of measures is recommended LQFOXGLQJD LQFUHDVHLQWUDQVSRUWVHFXULW\DQGVDIHW\WKURXJKPRUHHI¿FLHQWFRQWURO and enforcement of regulations; b) provision of incentives for combined transport; c) training and gradual introduction of EU standards regarding environmental protection in transport; d) improved control of technical performances of the vehicles; e) implementation of standards and good international practice in designing transportation projects; and f) strengthening capacities for the protection of sea from pollution from ships and increasing the level of environmental protection in ports.

5.1.2 Tourism Tourism development is one of the Montenegrin economic priorities. The choice to make tourism the driving force of the economy and of the new development cycle is rooted in the fact that Montenegro has the resources necessary for tourism development. At the same time, tourism generates the development of other complementary activities, such as transport, trade, banking, agriculture, construction etc. Such a development has a whole set of positive economic effects, including decrease of unemployment, increase of living standard and contribution to regional/ rural development (by keeping people in the villages and mitigating the problem of «ageing» of the villages through the development of agriculture and forms of tourism related to countryside and agriculture – agro-tourism, eco-tourism and countryside tourism). However, there are numerous and considerable infrastructure problems that hinder tourism development, and they primarily include: ƒ ,QVXI¿FLHQWDQGSRRUTXDOLW\WUDQVSRUWLQIUDVWUXFWXUH ƒ Inadequate solutions or lack of them when it comes to wastewater treatment and solid waste treatment; ƒ Problems with water and electricity supply, especially during the high tourist season. Regarding the development of sustainable tourism, the following problems and limiting factors should be also mentioned: ƒ Unbalanced distribution of accommodation facilities (96% of the accommodation facilities are located on the coast); ƒ Strong investment pressure directed towards the coast and the most attractive locations; ƒ Lack of well trained and skilled staff, especially when it comes to development of complementary forms of tourism; ƒ Unfavourable age and education structure in the rural areas (from the aspect of their abilities to perform tourist services); ƒ Short season; ƒ 0DMRUÀXFWXDWLRQVLQWKHQXPEHURISHRSOHVWD\LQJLQWKHFRDVWDOUHJLRQGXULQJ the high and low season, which has a negative effect on the quality of life of the local population. Several strategic documents have been prepared for the development of various forms of tourism in different geographic areas, but only some of them analyse in more detail 28 the effects and consequences of development of tourism facilities on the environment11. For example, no strategic environmental assessments were conducted so far. This is understandable given the fact that the legal framework for SEA did not exist until recently, but also very unfavourable in respect to ensuring sustainable development of tourism. On the other hand, the Master Plan for tourism development, which is currently EHLQJUHYLHZHGDVWKHPDLQVWUDWHJLFGRFXPHQWSURMHFWVDVLJQL¿FDQWLQFUHDVHLQWKH tourism facilities (50,000 beds and 11.4 million overnight stays in 2010, and an even greater increase by the year 2020 – see Box 5.2-1). A higher level of integration of sustainability requirements at the level of tourism development plans, as well as at the level of individual projects, is necessary in the upcoming period. In order to protect the cultural integrity, respect the basic environmental principles DQGSURWHFWWKHELRORJLFDOGLYHUVLW\RQRQHKDQGDQGWR¿QGWKHEHVWEDODQFHEHWZHHQ economic, social and environmental requirements in the course of preparation of planning documents on the other, the principles and guidelines for sustainable development of tourism have been adopted. They will make a framework that will be applied in the processes of the development and approval of strategic documents and plans. The principles and guidelines in question have been derived from the recommendations of WKH:RUOG7RXULVP2UJDQLVDWLRQZKLFKLVSDUWRIWKH81IDPLO\ 81:72 DQGWKH\ include, among others, the assessment and management of carrying capacity of a given area, sustainability indicators, and similar. The above-mentioned principles and guidelines will also be applied in revising the strategic document Master Plan of the development of tourism, which will plan and guide the overall development of tourism, with special emphasis on the northern part of WKH5HSXEOLFKDYLQJLQPLQGWKDWWKLVUHJLRQKDVQRWEHHQDGHTXDWHO\DQGVXI¿FLHQWO\ valorised in the past as compared to the potential it has. Special attention will be given to the protection and use of areas that have special protection status (national parks). Besides better use of and protection of the areas that are subject to special protection regime, it is also necessary to ensure the implementation of the sustainable development principles and to stop the trends that threaten to damage the unique values and characteristics of the coastal region. Adequate implementation of environmental impact assessment can play an important role at the level of individual projects, while in the wider context it is necessary to introduce fundamental changes in order to ensure integral planning and management of the coastal area (a more detailed elaboration is provided in chapter 5.2.8 – Sea and coastal zone). 3ULRULW\ 166' REMHFWLYHV DUH D  GLYHUVL¿FDWLRQ RI WRXULVW RIIHU GHYHORSPHQW RI village, agro-, eco-, mountain, cultural, sports and other forms of tourism, especially in the northern part of the Republic) in support to the extension of tourist season and DWWUDFWLRQRIJXHVWVZLWKWKHKLJKHUSXUFKDVLQJSRZHU WKH¿QDODLPEHLQJLQFUHDVHRI direct and indirect revenues from tourism); and b) integration of sustainability criteria in sanctioning tourism development projects (i.e. for the adoption and assessment of plans), especially when it comes to coastal and winter mountain tourism. The measures that are planned for the period of implementation of NSSD Action Plan ± DUHWKHSUHSDUDWLRQRIWKHSLORWSURMHFWVLGHQWL¿HGLQWKHGHYHORSPHQW 11) One example of such documents is Nautical Tourism in Montenegro 29 studies, activities related to promotion and creation of a more diverse tourist offer through joint activities of the Ministry of Tourism12, tourist organisations, tourist companies and the civil sector, education of staff, and provision of funds for the implementation of development projects. Regarding the second objective, planned measures include application of principles and guidelines for sustainable development, revision of the Master Plan for the development of tourism of Montenegro and full application of environmental impact assessment in the implementation of big development projects.

5.1.1 Agriculture and rural development Together with tourism and services, agriculture is one of the top priorities of economic development of Montenegro. The share of agriculture in the national GDP is around 15%, while the sectors employs (full time) approximately 9% of the active labour force. Many households perform agricultural production on small-scale holdings (around 5 hectares on average), thus agriculture represents the basic or additional source of LQFRPHIRURYHUKRXVHKROGV7RWDOYDOXHRIWKH¿VKHU\VHFWRULQ0RQWHQHJURLV 7.4 million EUR, which makes a share of 0.5% in the national GDP (share in the gross product of agriculture sector is 3.1%). Despite the limited agricultural land of approximately 518.000 ha, Montenegrin agriculture is highly diverse. The second comparative advantage lies in the fact that, generally speaking, soil has not been overexploited yet, while the levels of use of mineral fertilisers and plant protection agents are still quite low (more than 10 times less fertilisers are used in Montenegro in comparison to EU average). Low level of use of mineral fertilisers and pesticides represents a good basis for the development of organic agriculture. However, negative trend of the loss of agricultural land (primarily GXHWRLWVXVHIRURWKHUSXUSRVHV LVSUHVHQW7KHUHDUHVLJQL¿FDQWSRVVLELOLWLHVIRUWKH GHYHORSPHQWRI¿VKHU\EXWLWLVQHFHVVDU\WRFUHDWHSUHFRQGLWLRQVIRUWKDW WRLPSURYH the legal framework and the system of resource monitoring and data collection, and to IXO¿OWKHUHTXLUHG(8VWDQGDUGVLQPDQDJLQJWKH¿VKHULHV  There are numerous limiting factors for the development of agriculture and they, among RWKHUVLQFOXGHD VPDOOVFDOHKROGLQJVDQGSURGXFWLRQLQGLI¿FXOWQDWXUDOFRQGLWLRQV b) agriculture is to a large extent just a second, additional occupation, which slows down modernisation and market orientation of the holdings; c) the producers have LQVXI¿FLHQWOHYHORIWUDLQLQJDQGH[SHUWLVHIRUHQJDJLQJLQDJULFXOWXUHDVDEXVLQHVVG  LQVXI¿FLHQWO\GHYHORSHGLQIUDVWUXFWXUHLQWKHFRXQWU\VLGH¿QDQFLDOVHFWRULVQRWVWURQJ enough to provide loans for agriculture and banks are generally not prepared to approve loans to small-scale food producers; and e) underdeveloped market infrastructure and LQVXI¿FLHQW YHUWLFDO LQWHJUDWLRQ RI SULPDU\ DJULFXOWXUH DQG SURFHVVLQJ LQGXVWU\ 7KH scope of incentives is not satisfactory, having in mind that the total state support to the development of agriculture participates in GDP with approximately 0.65%. As a result of these and other limiting factors, competitiveness of food producers is relatively low, and Montenegro highly depends on imports in the food sector. In 2004, IRRGLPSRUWVFRQWULEXWHGWRIRUHLJQWUDGHGH¿FLWZLWKFORVHWRPLOOLRQ(85ZKLOH  RI LPSRUWV ZHUH FRYHUHG ZLWK H[SRUWV VWLOO ORZ D UDWH DOWKRXJK VLJQL¿FDQWO\ higher than in the previous years). 12) Since the end of 2006 it is the Ministry of Tourism and Environmental Protection 30 (8 DVZHOODV:72 LQWHJUDWLRQSURFHVVHVSRVHQXPHURXVFKDOOHQJHVIRU0RQWHQHJULQ agriculture, since the experiences of other countries show this is the area with the highest level of requirements in the process of accession to the European Union. These UHTXLUHPHQWVUHIHUWRIRRGVDIHW\MRLQWRUJDQLVDWLRQRIWKHPDUNHWIRUVSHFL¿FW\SHVRI agricultural products and rural development – a component of agricultural policy that is paid ever-increasing attention in the EU. :KHQ LW FRPHV WR WKH PRGHO RI WKH IXWXUH GHYHORSPHQW 0RQWHQHJUR KDV FKRVHQ the concept of development of sustainable agriculture, which places agriculture LQDPXFKZLGHUFRQWH[WFRPSDUHGWRVLPSO\ORRNLQJDWLWVVLJQL¿FDQFHLQWHUPVRI contribution to GDP. The rationale of the new development model is multiple role of agriculture, which has a function of sustainable rural development, environmental protection and a function in securing sustainable resource management in the long term, economic function, function of support to the development of tourism, social, food security and national-cultural function (through the protection of tradition and cultural heritage in the countryside). 3ULRULW\REMHFWLYHVIRUWKHGHYHORSPHQWRIDJULFXOWXUHDQG¿VKHU\DUHD SURYLGLQJIRUD stable and good-quality food offer through the increase in competitiveness of domestic producers and sustainable management of resources; and b) rural development and provision of adequate living standard for the rural population. The measures that need to EHLPSOHPHQWHGLQRUGHUWRDFKLHYHWKHVHREMHFWLYHV¿UVWRIDOOUHIHUWRWKHLPSURYHPHQW of the legal framework (in accordance with the EU requirements), as well as to the SURYLVLRQ RI JUHDWHU VXSSRUW WR WKH GHYHORSPHQWRI DJULFXOWXUHDQG ¿VKHU\ IURP WKH budget, and from the private sector (accessibility of loans and similar). Furthermore, it is necessary to stimulate co-operation and associations between producers in primary production, to develop market infrastructure and create more favourable conditions to attract foreign investments into processing facilities and distribution of products. An especially important set of measures relates to the development of system for food VDIHW\FRQWUROGHYHORSPHQWRIRUJDQLFDJULFXOWXUHSURPRWLRQRIVSHFL¿FFKDUDFWHULVWLFV of local products and spreading the knowledge about good agricultural practices in order to protect the environment. The measures related to rural development primarily include provision of a more substantial support to the less favoured areas, improvements RIUXUDOLQIUDVWUXFWXUHDQGHQDEOLQJGLYHUVL¿FDWLRQRILQFRPHVRXUFHV

5.1.2 Energy The energy sector is of an essential importance for sustainable development of Montenegro, both from production and consumption aspects. This is due to the fact WKDWSURYLVLRQRIVXI¿FLHQWTXDQWLW\RIHQHUJ\UHSUHVHQWVDSUHFRQGLWLRQIRUHFRQRPLF development and satisfactory living standard on one hand, while the production and XVHRIHQHUJ\DUHUHODWHGWRVLJQL¿FDQWQHJDWLYHHQYLURQPHQWDOLPSDFWVRQWKHRWKHU In the context of sustainable development of Montenegro, the following problems can EHLGHQWL¿HG ƒ /RZ OHYHO RI HQHUJ\ HI¿FLHQF\ DV D FRQVHTXHQFH RI QRQHFRQRPLF SULFHV REVROHWH DQG HQHUJ\LQHI¿FLHQW WHFKQRORJLHV DQG HTXLSPHQW  7KH HQHUJ\ intensity ratio (use of energy per unit of gross domestic product) was 0.432 kgoe/EUR in Montenegro in 2003, while in the developed countries this indicator is on average 0.205 kgoe/EUR. According to the IEA (International 31 Energy Agency) calculations, this ratio was 0.13 kgoe/EUR for EU countries in 200113. This means that approximately 2.1 times more energy is consumed per unit of domestic product in Montenegro than in the developed countries, or 3.3 times more than in the EU, which shows that there is a large room for LPSURYHPHQWVLQHQHUJ\HI¿FLHQF\ ƒ Very high electricity losses in the transmission and distribution systems FRQWULEXWH WR ORZ HQHUJ\ HI¿FLHQF\ WKHVH ORVVHV DUH FDXVHG PDLQO\ E\ WKH organisational weaknesses (so-called commercial losses) and obsolete and depreciated networks and equipment (technical losses). ƒ Unfavourable structure of energy consumption, with high participation of electricity and primary sources of energy (coal, oil, etc); ƒ Very unfavourable structure of consumers, where Aluminium Plant (KAP) and 6WHHO0LOOLQ1LNãLüGRPLQDWH WRWDOFRQVXPSWLRQE\WKHDOXPLQLXPIDFWRU\DQG the steel mill represents almost one half of the gross electricity consumption in Montenegro); ƒ Very high import dependence in meeting the energy needs; the entire consumption of oil and oil derivatives is covered from imports, as well as one third of electricity consumption; ƒ Inadequate degree of connection and integration with the energy production and supply systems in the region; ƒ Low level of use of own natural energy resources, especially of the available hydro potential. 6ROYLQJWKHSUREOHPVLQWKHHQHUJ\VHFWRULVOLQNHGWRVLJQL¿FDQWFKDOOHQJHV$YDLODEOH K\GURSRWHQWLDOLVHVWLPDWHGDWDSSUR[LPDWHO\*:KZLWKWKHQDWXUDOZDWHUÀRZ while in the case of integral use of waters, this potential is estimated at approximately *:K7RWDOHOHFWULFLW\SURGXFWLRQLQZDVRQWKHRWKHUKDQG*:K ZKLOH WKH FRQVXPSWLRQ VWRRG DW  *:K +RZHYHU FRQVWUXFWLRQ RI QHZ K\GUR power plants can have negative impacts on the environment (depending on the type of hydro power plant and size of accumulation), so the decisions on their construction need to be made on the basis of a detailed and comprehensive environmental impact assessment. In making such decisions, it is necessary to take fully into consideration DOOWKHHFRQRPLFVRFLDODQGHQYLURQPHQWDOEHQH¿WVDQGFRVWVRIDJLYHQSURMHFW Montenegro has relatively large possibilities for electricity generation in thermal SRZHU SODQWV VLQFH WKH H[SORLWDWLRQ UHVHUYHV RI FRDO LQ 3OMHYOMD DQG 0DRþNL EDVLQV are estimated at approximately 170 million tons. Limitations for electricity generation in thermal power plants come from the requirement for rational exploitation of non- renewable resources and especially from the fact that combustion of fossil fuels is FRQQHFWHGZLWKVLJQL¿FDQWORFDODQGJOREDOHQYLURQPHQWDOSUREOHPV The existing unit of the Thermal Power Plant in Pljevlja is one of the biggest polluters in the Republic and from the aspect of EU regulations, this situation is not sustainable in the long run. During the future operation of the existing thermal power plant, as well as in the case of possible construction of a new unit, all the relevant EU Directives on environmental protection and operation of such plants will have to be respected. 7KLV ZLOO UHTXLUH VLJQL¿FDQW EXW QHFHVVDU\ LQYHVWPHQWV LQWR 3OMHYOMD 3RZHU 3ODQW Reconstruction of the existing and construction of the new unit represent an integral 13) Data from the (QHUJ\(I¿FLHQF\6WUDWHJ\ 32 part of the Plant’s privatisation Tender. A construction of a district heating system is VHHQDVDSULRULW\E\WKHORFDOFRPPXQLW\ZKLFKSHUFHLYHVLWDVMXVWL¿HGIURPHFRQRPLF as well as from the perspective of protection of the environment and human health. 0RQWHQHJURKDVDVLJQL¿FDQWSRWHQWLDOIRUHQHUJ\JHQHUDWLRQIURPVPDOOK\GURSRZHU plants and alternative sources. In order to really utilise these potentials, it is necessary WRFUHDWHVXEVWDQWLDOLQVWLWXWLRQDODGPLQLVWUDWLYHDQG¿QDQFLDOSUHFRQGLWLRQV$FWLYLWLHV aimed at creating necessary preconditions for the construction of small hydro power plants are currently being implemented, together with activities aiming to provide for a higher level of use of energy from other renewable sources (such as the energy of sun and wind). Greater use of renewable and alternative sources of energy represents an LPSRUWDQWHOHPHQWLQWKHFRQWH[WRI(8DFFHVVLRQEXWDOVRLQWKHFRQWH[WRIIXO¿OOLQJWKH REOLJDWLRQVDQGEHQH¿WLQJIURPWKHUHOHYDQWLQWHUQDWLRQDODJUHHPHQWVDQGSURWRFROV :KHQFRQVWUXFWLQJQHZHQHUJ\IDFLOLWLHVDVZHOODVLQWKHSKDVHRIWKHLURSHUDWLRQDOO the relevant national legislation and internationally accepted obligations regulating energy, environmental protection, competitiveness and other relevant areas will be respected. In addition, requirement that the development of new energy facilities must not disturb the integrity of protected areas, especially the ones that are under international protection regime, will be taken into account. Another challenge for the energy sector is related to necessary introduction of market prices for electricity, which in the existing conditions raises social and economic issues. The tariff policy is very important in this respect, as an instrument that must ensure availability of electricity to all the population groups. On the other hand, setting of prices at the level of cost recovery is an imperative for market operation and for ¿QDQFLDOVXVWDLQDELOLW\RI(3&* Priority NSSD objectives for energy sector are: a) rational use of electricity with the LQFUHDVH RI DW OHDVW  LQ HQHUJ\ HI¿FLHQF\ E\  LQ FRPSDULVRQ WR  DQG b) reduction in energy import dependence through optimal use of available national resources and with priority to utilisation of renewable sources. Measures for the DFKLHYHPHQWRIWKH¿UVWREMHFWLYHLQFOXGHUHGXFWLRQRIORVVHVLPSOHPHQWDWLRQRIWKH (QHUJ\ (I¿FLHQF\ 6WUDWHJ\ (through the annual action plans); establishment of the HQHUJ\ HI¿FLHQF\ IXQG SURPRWLRQ LPSOHPHQWDWLRQ DQG SURYLVLRQ RI LQFHQWLYHV IRU WKHSURMHFWVWKDWLQFUHDVHHQHUJ\HI¿FLHQF\LQDOOVHFWRUVDQGVWUHQJWKHQLQJWKHHQHUJ\ information database. In relation to the second objective, it is necessary to adopt the Strategy of the Energy Sector Development, to harmonise national regulations with WKHUHOHYDQW(8UHJXODWLRQVDQGWRZRUNRQWKHFUHDWLRQRIDPRUHHI¿FLHQWIUDPHZRUN LQVWLWXWLRQDO¿QDQFLDOUHJXODWRU\ IRUVXVWDLQDEOHGHYHORSPHQWDQGLQYROYHPHQWRI the private sector. Further necessary measures are related to maintenance, revitalisation and modernisation of the existing and construction of new infrastructure for energy production and use, as well as for the creation of preconditions for the greater use of renewable energy sources and combined heat and power generation (CHP). Finally, it LVQHFHVVDU\WRFUHDWHPDUNHWFRQGLWLRQVIRURSHUDWLRQWKURXJKWDULIIVWKDWUHÀHFWWKHUHDO costs, while ensuring adequate protective mechanisms for the vulnerable population groups. 33

5.1.1 Industry The existing structure of the industrial sector can be described as very unfavourable and inadequate for several reasons, and especially for the following ones: ƒ Technologies and equipment are obsolete /outdated, which is linked to ORZHI¿FLHQF\DQGQHJDWLYHHQYLURQPHQWDOLPSDFWV ƒ Structure of industrial capacities is unfavourable, since big economic entities dominate, while the participation of small and medium size enterprises is far below the world’s average; ƒ $OVRXQIDYRXUDEOHLVVWUXFWXUHRIFDSLWDOZKHUH¿[HGDVVHWVDUHSUHYDLOLQJ and there is a constant shortage of current assets; ƒ In respect to energy consumption, because energy intensive users dominate. The level of competitiveness of the industrial sector is very low, while own funds for investments into modernisation and development projects are lacking. In such a situation, the challenges of privatisation, restructuring and modernisation of industrial facilities are great. The main lines of action in the industrial sector in the upcoming period include continuation of the privatisation and restructuring processes, creation of legal preconditions for the liberalisation of the market for industrial products and development of small and medium size enterprises in industry, which should all lead to increased competitiveness. Special attention should be given to social and other programs for redundant workers (technological surpluses) in the privatisation process. From the aspect of sustainable development, priority objective is to improve industry’s environmental performance. The measures for the achievement of this objective include consistent implementation of the law on integrated pollution prevention and control and strengthening of the role of market based instruments (e.g. pollution charges). It is also necessary to implement incentives for investments into cleaner technologies, WKDW LV LQFUHDVH LQ HQHUJ\ HI¿FLHQF\ DPRQJ LQGXVWULDO FRQVXPHUV DQG WR HQFRXUDJH rational use of waters in industry. Special attention should be given to strengthening of partnerships and to the instruments that are based on voluntary approaches (standards, EMAS, eco-labels on products, etc), having in mind that the developed countries’ practice shows that enterprises with better environmental performance are also more HI¿FLHQWHFRQRPLFDOO\$QRWKHUVHWRILPSRUWDQWDFWLYLWLHVUHIHUVWRWKHLPSOHPHQWDWLRQ of commitments made by the state for the clean up of past pollution (either though the SULYDWLVDWLRQSURFHVVRUIRUWKHFRPSDQLHVWKDWQRORQJHUH[LVW DVZHOODVWRIXO¿OPHQW of obligations accepted by the new owners of the privatised companies.

5.1.1 New technologies High level of emissions into the environment and a high level of generated waste characterise technologies used in Montenegro. These technologies are found in the currently active industries and in the mining sector, but they were also present in the SODQWVDQGPLQHVWKDWDUHQRORQJHURSHUDWLRQDO7HFKQRORJLHVZLWKWKHPRVWVLJQL¿FDQW negative environmental impacts are used in metallurgic facilities (steel and other metals 34 alike), coal combustion plants (boiler rooms, thermal power plants), metal-processing industry and mining. New or ”clean” technologies, on the other hand, not only have better environmental SHUIRUPDQFHVEXWDOVRUHVXOWLQHFRQRPLFEHQH¿WVWKURXJKWKHUHGXFWLRQLQSURGXFWLRQ FRVW DQG LQFUHDVH LQ SURGXFWLRQ HI¿FLHQF\ 1HZ WHFKQRORJLHV VXSSRUW VXVWDLQDEOH GHYHORSPHQW E\ VHFXULQJ D  HI¿FLHQW XVH RI SULPDU\ HQHUJ\ DQG UDZ PDWHULDOV E  systematic recycling of products and waste as potential primary and energy raw materials; c) designing long term products; d) preferring renewable sources of energy; and e) economic growth without environmental pressure and creation of new jobs. Montenegro does not have an adequate regulatory framework14 WKDW GH¿QHV technological standards and requires use of certain types of technologies (e.g. BAT, BATNEEC). At the same time, there is no systematic monitoring of emissions (linked to the issued permits), so that the challenges of harmonisation with European standards remain great (both in terms of developing institutional capacities and securing funds necessary to achieve certain standards). A special challenge is the creation of synergy between ”clean” technologies and the creation of new jobs, which is a process that was clearly noted and emphasised in numerous EU political documents and action plans. $WWKHVDPHWLPHDVLJQL¿FDQWFKDOOHQJHLVWKHQHFHVVLW\WRUHIRUPWKHWHFKQRORJLFDO education and the need to allocate more funds for research and development15, since progress in the use of new technologies and the development of the society in general cannot be achieved without research and development. 3ULRULW\ 166' REMHFWLYH LQ WKH ¿HOG RI QHZ WHFKQRORJLHV LV WR VWLPXODWH UHVHDUFK development and innovations. Measures for the achievement of this objective include: preparation of the strategy for research and development; creation of economic instruments to stimulate research and provision of technical assistance in the initial phases of use of new technologies; increase in public and private expenditures in this ¿HOGDQGLPSURYHPHQWLQWKHWHFKQRORJLFDOHGXFDWLRQDQGPRUHVLJQL¿FDQWSDUWLFLSDWLRQ in the international projects. (QYLURQPHQWDQGQDWXUDOUHVRXUFHVLGHQWL¿FDWLRQRISUREOHPVDQGFKDOOHQJHV priority objectives and measures

5.2.1 Protection of biodiversity and conservation of natural values (especially in the protected areas) Biodiversity and other natural and landscape values of Montenegro are mainly preserved, despite numerous pressures to which they are exposed. The most important pressures include (direct) use of natural resources, intensive and non-balanced development of certain sectors (tourism, urban development, etc.), conversion of natural habitats into VHPLQDWXUDO DQG DUWL¿FLDO RQHV SROOXWLRQ ZDVWHZDWHU VROLG ZDVWH  HWF $ VSHFLDO challenge are the pressures in the area of Skadar Lake and Durmitor mountain, which QHHGWREHDGHTXDWHO\DGGUHVVHGWKURXJKDPRUHHI¿FLHQWSURWHFWLRQRIWKHDSSURSULDWH zones and establishment of sustainable development at the level of local communities  :LWKWKHDGRSWLRQRI,33&/DZZKLFKZLOOFRPHLQWRHIIHFWLQWKH¿UVWVWHSZDVPDGHLQ the direction of establishment of the regulatory framework. 15) Recommendations of the EU Lisbon Strategy (2000) and Barcelona (2002) recommendations of the Council of Europe are that budgetary funds allocated for science and research should amount to 3% of GDP. 35 WKDWJUDYLWDWHWRZDUGVQDWLRQDOSDUNV%HVLGHVVLJQL¿FDQWFKDOOHQJHVDUHUHODWHGWRWKH protection of biodiversity, nature and landscape of the sea and coastal zone; responses to these challenges should be sought through the protection of especially valuable habitats and through an integrated management of the whole area. Share of the nationally protected areas in the whole territory is 7.72% and it mainly refers to the four national parks. This indicator is below the European average, while WKHUHZHUHQRQHZGHVLJQDWLRQVRISURWHFWHGDUHDVUHFHQWO\$VLJQL¿FDQWSDUWRIWKH territory (17.2%) is internationally protected on the grounds of exceptional natural or cultural values, or as a wetland area of international importance (according to the criteria of the UNESCO programs World Natural and Cultural Heritage and Man and Biosphere, and the Ramsar Convention). Although the previous projections of protected areas covered almost all the key biodiversity areas (bio-centres and bio- FRUULGRUV WHFKQLTXHVIRUWKHGH¿QLWLRQRIWKRVHDUHDVDFFRUGLQJWRWKH(0(5$/' DQG 1DWXUD  FODVVL¿FDWLRQV RI KDELWDWV KDYH QRW EHHQ XVHG LQ SUDFWLFH VR IDU Obligations that will ensue from the implementation of EMERALD and Natura 2000 FODVVL¿FDWLRQV ZLOO LPSURYH WKH QHWZRUN RI QDWXUH SURWHFWHG DUHDV LQ SODQQLQJ DQG LQGH¿QLWLRQRISURWHFWLYHPHDVXUHV WKURXJKWKHLQFOXVLRQRIDOOWKHUHSUHVHQWDWLYH habitats and ecosystems. The existing legal and institutional framework does not provide for a satisfactory level RIHI¿FLHQF\LQLPSOHPHQWLQJQDWXUHDQGELRGLYHUVLW\SURWHFWLRQPHDVXUHV$SDUWIURP WKHLQVXI¿FLHQWOHYHORIHQIRUFHPHQWRIQDWLRQDOUHJXODWLRQVWKHUHDUHDOVRQXPHURXV obligations from the international agreements (conventions and protocols) that await adequate solutions. National strategy for biodiversity protection, which is required under the Convention on Biodiversity (CBD) has still not been prepared (GEF project is approved, implementation is forthcoming). Substantial management weaknesses and problems are obvious for the national parks as well as for other protected areas, whereas the managers are determined only for the category of National Parks (NP); in most of the other protected areas this is not the case. In appointing new managers of nature protected areas and in strengthening the capacities of the existing ones, it is necessary to follow the IUCN guidelines, including the transfer of responsibility to the local level. As mentioned in the introductory part of this chapter, biodiversity and nature of WKH0RQWHQHJULQFRDVWKDYHORQJEHHQH[SRVHGWRVLJQL¿FDQWSUHVVXUHV$VDUHVXOW impoverishment of the natural areas that give this region the Mediterranean character and critical vulnerability of certain components of biodiversity (disappearance of species) were recorded. The national report for SAP BIO was prepared in 2004 at the level of the preparatory strategy for the protection of biodiversity of the Mediterranean zone in Montenegro. It is thus necessary to undertake further steps towards the implementation of this document. Another problem is the fact that international standards for the protection of global FRPSRQHQWV RI ELRGLYHUVLW\ DUH QRW VXI¿FLHQWO\ LQWHJUDWHG LQWR WKH WUDGLWLRQDO PHFKDQLVPVIRUFRQWUROOLQJWKHXVHRIHFRQRPLFDOO\VLJQL¿FDQWELRORJLFDOUHVRXUFHV KXQWLQJ¿VKLQJROGEUHHGVLQFDWWOHUDLVLQJDQGIDUPLQJ  Finally, information on biodiversity is not systematised and is scattered throughout the 36 H[SHUW DQG VFLHQWL¿F OLWHUDWXUH WKXV WKHUH DUH LQVXI¿FLHQW VFLHQWL¿F  LQYHQWRULHV RI QXPHURXVWD[RQRPLFJURXSV0RQLWRULQJRIWKHVWDWHRIELRGLYHUVLW\LVQRWVXI¿FLHQW and it does not provide necessary level of information. $ VSHFLDO FKDOOHQJH LQ WKH SURWHFWLRQ RI ELRGLYHUVLW\ DQG QDWXUDO YDOXHV LV ¿QGLQJ D ZD\WRUHVROYHFRQÀLFWVEHWZHHQQDWXUHSURWHFWLRQDQGGHYHORSPHQW,QRUGHUWRPDNH the development decisions sustainable (from the long-term aspect), it is necessary to include mechanisms for the assessment of impacts on biodiversity in resolving WKHVH FRQÀLFWV ,Q RWKHU ZRUGV LW LV QHFHVVDU\ WR HQVXUH JUHDWHU OHYHO RI LQWHJUDWLRQ of knowledge about biodiversity and natural values into sectoral plans, programs and VWUDWHJLHVDQGLQFDVHRIXQUHOLDEOHRULQVXI¿FLHQWLQIRUPDWLRQLWLVQHFHVVDU\WRDSSO\ the precautionary principle. The general recommendation of NSSD Montenegro is that the spatial location of large development facilities and projects (e.g. big infrastructure ±URDGVZDWHUVXSSO\V\VWHPSLSHOLQHVUDLOZD\VZDVWHODQG¿OOVZDWHUDFFXPXODWLRQV DQGRWKHUV PXVWQRWEHLQFRQÀLFWZLWKWKHQHHGWRSUHVHUYHWKHLQWHJULW\RIQDWXUH protected areas, especially the ones that have international importance. The opposite was often the case in the past, both at the level of plans and at the level of concrete implemented projects. Priority NSSD objectives are as follows: a) increase national nature protected areas to 10% of the territory and protect at least 10% of the coastal zone by 2009; in identifying SURWHFWHGDUHDV(XURSHDQFODVVL¿FDWLRQRIKDELWDWVVLJQL¿FDQWIRUSURWHFWLRQSXUSRVHV (EMERALD, Natura 2000) should be used, making sure that all the representative HFRV\VWHPVDUHLQFOXGHGE HVWDEOLVKDQHI¿FLHQWV\VWHPIRUPDQDJLQJQDWXUHSURWHFWHG areas (the system should be harmonised with the IUCN management categories and provide for participatory approach to management); and c) improve the legal framework for the protection of biodiversity; strengthen human resources and develop an effective system for biodiversity monitoring. In order to achieve these goals, it is necessary to undertake a set of actions that include GH¿QLQJWKHQHWZRUNRISURWHFWHGDUHDVDQGSODFLQJQHZHFRV\VWHPVXQGHUSURWHFWLRQ regime (concrete locations are given in the action plan), establishing managers for all the nature protected areas, adoption of new management plans (in accordance with the IUCN recommendations) and consistent implementation of the existing documents (with capacity building of the relevant institutions), adoption and implementation of the national biodiversity strategy, change of the relevant regulations and harmonisation with EU legislation, implementation of priorities from SAP BIO report, and establishment of the adequate monitoring program.  :DWHU Due to rich rainfall and relatively well-preserved water resources, Montenegro has good quality and abundant underground and surface waters (unlike most of the Mediterranean region, where water shortages are present). Richness and quality of water resources represent one of the most important comparative advantages of Montenegro. :KHQLWFRPHVWRWKHFRQVXPSWLRQRIZDWHUIURPWKHSXEOLFZDWHUVXSSO\V\VWHPVLW should be mentioned that the average consumption in Montenegro is exceptionally high DOPRVWWZLFHDVKLJKDVWKHFRQVXPSWLRQLQ:HVWHUQ(XURSH ZKHUHRQDYHUDJH 37 litres are consumed per capita per day). Higher consumption of water in Montenegro can partly be attributed to climatic conditions, but is mainly due to wasteful use of water (especially in households, but also by other consumers), and much higher than necessary losses in the water supply systems. %HVLGHVWKHVXSHUÀXRXVFRQVXPSWLRQZKLFKLVSDUWLDOO\FDXVHGE\ORZZDWHUSULFHVDQG low collection rates, other problems in the water supply system include water shortages, HVSHFLDOO\LQWKHFRDVWDOUHJLRQDQGGXULQJWKHVXPPHUVHDVRQDQGLQVXI¿FLHQWOHYHO of coverage of the rural areas with public water supply systems16 (with poor water quality control for the waters from the rural water supply systems and other sources). Quality of drinking water is regularly monitored for the public water supply systems LQ0RQWHQHJURDQGWKHTXDOLW\UHTXLUHPHQWVDUHLQOLQHZLWK:+2DQG(8VWDQGDUGV In the period 2000 – 2004 (the latter was the last year for which there were available data), the percentage of samples that did not comply with prescribed physical/chemical and micro-biological standards ranged from 9 to 15% of the total number of tested samples17. The industry is mainly supplied with water from own sources, while total consumption in recent years amounted to 50 to 60 million m3. More than half of the water consumed by industry comes from underground sources. The biggest industrial consumers of water are the metallurgic facilities (aluminium factory, steel mill) and thermal power plant in Pljevlja. These consumers use around 43 million m3/year, while it is estimated WKDWDSSUR[LPDWHO\RIWKLVZDWHUJHWVUHFLUFXODWHG$JULFXOWXUHLVQRWDVLJQL¿FDQW consumer (using approximately 6 million m3 per year). Discharge of communal and industrial wastewater into natural recipients is done with almost no treatment (the exception are some industrial plants and part of the communal wastewater in Podgorica). An additional problem is the lack of pre-treatment of industrial wastewater discharged into the public sewage systems, and a low level of residential connection to the sewerage. Despite the existing pressures, surface waters are, generally speaking, of a good quality. Still, one should not neglect the fact that for some water bodies, deviations from the OHJDOO\SUHVFULEHGTXDOLW\FDWHJRULHVDUHUHFRUGHG H[DPSOHVLQFOXGHULYHUV9HåLãQLFD DQGûHKRWLQDULYHUV,EDU/LPDQG0RUDþDGRZQVWUHDPIURPWKHVHWWOHPHQWVFLWLHV Skadar and Plav lakes (microbiological variation), and some parts of the coastal sea). These are mainly due to higher than prescribed concentrations of polluting substances from the wastewater. It is necessary to point out that the so far surveys of water quality have not indicated presence of pesticides and other persistent carcinogenic, mutagenous and teratogenous substances in fresh and salty waters. 3UHVHUYDWLRQ RI TXDOLW\ DQG LQWHJULW\ RI ZDWHU UHVRXUFHV LV D VLJQL¿FDQW FKDOOHQJH especially having in mind the fact that water pollution and inadequate water abstraction 16) Over 3/4 of households (and a bit less population) in Montenegro use water from the public water supply system. Situation in the urban communities is much more favourable, as more than 95% of ur- ban population is supplied with water from public water supply systems. Urban water supply systems cover, apart from 40 towns, another 174 suburban and rural communities – a total of 214 communi- ties. 17) Exceptionally, the percentage of samples that did not meet micro-biological standards in 2004 was 22%. Source: Institute for Public Health 38 in karst regions such as Montenegro can cause permanent and serious consequences. A VSHFLDOFKDOOHQJHLVKDUPRQLVDWLRQZLWKWKHUHTXLUHPHQWVRIWKH(8:DWHU)UDPHZRUN 'LUHFWLYH :)' DQGFUHDWLRQRISUHFRQGLWLRQVIRULWVLPSOHPHQWDWLRQLQ0RQWHQHJUR 7KH EDVLF JRDO RI:)' LV WR HVWDEOLVK DGHTXDWH IUDPHZRUN WKDW ZRXOG SURYLGH IRU protection, improvement and prevention of further deterioration of all water resources. Such a framework is integrated river basin management, which involves, among RWKHUWKLQJVHVWDEOLVKPHQWRIHI¿FLHQWPHFKDQLVPVWRUHVROYHSRWHQWLDOO\FRQÀLFWLQJ forms of water uses and to balance interests of all the stakeholders in the river basin. Introduction of this new concept in managing water resources in Montenegro is very important for sustainable development, having in mind the fact that, for example, the use of watercourses for electricity generation (especially through big accumulations) KDVVLJQL¿FDQWLPSDFWVRQK\GURORJ\DQGRWKHUFKDUDFWHULVWLFVRIWKHULYHUEDVLQDQG FDQEHLQFROOLVLRQZLWKWKHRWKHUSRWHQWLDOXVHVRIZDWHUUHVRXUFHV$QRWKHUVLJQL¿FDQW challenge is adequate implementation of the strategic and environmental impact assessments (SEA and EIA) in cases when large interventions are planned (which can, HVSHFLDOO\LQWKHWUDQVLWLRQSHULRGEHPRWLYDWHGE\DQDWWHPSWWRFUHDWHTXLFNSUR¿WVRQ the expense of natural resources), especially for the cross-border watercourses. From the aspect of sustainable development it is very important that the existing water pollution (due to the low level of communal and industrial wastewater treatment and LQDGHTXDWHZDVWHGLVSRVDO LVHI¿FLHQWO\FRQWUROOHGDQGUHGXFHGDQGWKDWVLJQL¿FDQW improvements are made in relation to the existing (and potential) non-sustainable patterns in the use of water and watercourse resources. The priority NSSD objectives KDYH WKXV EHHQ GH¿QHG DV D  HQVXULQJ VXI¿FLHQW TXDQWLW\ RI JRRG TXDOLW\ GULQNLQJ water; and b) introducing integrated river basin management, with necessary legal and institutional changes and improvements in the quality control and monitoring of waters. In order to achieve these objectives it is necessary to implement a set of short- WHUP DQG PLGWHUP PHDVXUHV )RU WKH ¿UVW REMHFWLYH WKHVH PHDVXUHV LQFOXGH PRUH comprehensive protection and adequate control of the existing and potential water springs; improvements in water supply in rural areas (including the preparation of plans and creation of preconditions for better management of village water supply systems); better management of water supply systems, reduction of losses and prevention of the use of drinking water for other purposes; introduction of the system of water charges on the basis of cost recovery; construction of the water supply system for the Coastal Region; and use of potentials for water bottling. In relation to the VHFRQGREMHFWLYHWKHPHDVXUHVDUHDVIROORZVD DGRSWLRQRIWKHQHZ:DWHU/DZDQG KDUPRQLVDWLRQ RI UHJXODWLRQV ZLWK WKH (8 'LUHFWLYHV E  VLJQLQJ DQG UDWL¿FDWLRQ RI LQWHUQDWLRQDOFRQYHQWLRQV +HOVLQNL6WRFNKROP3URWRFRORQ:DWHUDQG+HDOWKHWF  c) capacity building for the implementation of integrated river basin management; d) preparation and implementation of GEF projects for Tara and Lim rivers and for 6NDGDU/DNHH LPSOHPHQWDWLRQRISULRULW\SURMHFWVGH¿QHGLQWKHZDVWHZDWHU0DVWHU Plans; f) consistent implementation of IPPC law; and g) consistent monitoring of water quality.

5.2.3 Air The air pollution levels are measured in 16 towns in Montenegro at 36 measurement sites. All stations for air quality monitoring are located in the towns, unlike many other 39 European countries, where 20% to 70% of the stations are located outside the towns. Main factors contributing to the deterioration of air quality are anthropogenic: transport, industry, power generation and communal activities. The main air polluters LQ 0RQWHQHJUR RSHUDWH ZLWKRXW DQ\ RU ZLWK YHU\ RXWGDWHG HTXLSPHQW IRU ¿OWHULQJ gases emitted into atmosphere, while records of total emissions are not kept. Among the natural factors, the phenomenon of thermal inversions in karst valleys (Cetinjsko DQG1LNãLüNRSROMH DQGLQPRXQWDLQYDOOH\V 3OMHYDOMVND%HUDQVNDDQG%MHORSROMVND kotlina) prevents ventilation and elimination of pollutants. Mean annual concentrations of pollutants in the majority of urban settlements in Montenegro are far below the maximum allowable pollution limits. The exceptions DUHWKHÀXRULGHOHYHOVLQ3RGJRULFD1LNãLüDQG3OMHYOMDZKLFKVLJQL¿FDQWO\H[FHHGWKH allowable limits throughout the year for 3 to 6 times. Other parameters that sometimes exceed the allowable concentrations are SO2 and as a result of vehicle exhaust gases, maximum concentrations of nitrogen monoxide, nitrogen dioxide and total nitrogen oxides, which exceed short-term allowable pollution limits for up to 5 times. Maximum daily concentrations of the ground-level ozone also exceed the allowable limits in several towns – Berane, Budva, Herceg Novi, Kotor, Pljevlja, Podgorica, Tivat and äDEOMDN The air protection policy in Montenegro is based on the Law on Protecting Air from Pollution from 1980 and subsequent bylaws. These regulations are outdated and need to be harmonised with relevant EU legislation. Moreover, there are numerous LQWHUQDWLRQDODJUHHPHQWVZKHUH0RQWHQHJURKDVWRPDNHDVLJQL¿FDQWVWHSIRUZDUG including the Convention on Long-range Transboundary Air Pollution, UN Framework Convention on Climate Change and Vienna Convention on the Protection of the Ozone Layer. Regarding the eight protocols to the Convention on Long-range Transboundary Air Pollution, Montenegro is a party only to one (EMEP), while it is very important WRUDWLI\WKHWKUHHPRVWUHFHQW&RQYHQWLRQSURWRFROV3URWRFROWR$EDWH$FLGL¿FDWLRQ Eutrophication and Ground-level Ozone, (Gothenburg, Sweden); Protocol on Persistent Organic Pollutants; and Protocol on Heavy Metals (Aarhus, Denmark). ,QDGGLWLRQWKHUHDUHWZRVLJQL¿FDQW81(&(&RQYHQWLRQVDGGUHVVLQJWUDQVERXQGDU\ issues relating to air pollution: Convention on Environmental Impact Assessment in a Transboundary Context (Espoo, Finland, 1991), and the Convention on the 7UDQVERXQGDU\(IIHFWVRI,QGXVWULDO$FFLGHQWV +HOVLQNL WKDWDUHWREHUDWL¿HG by Montenegro. $SDUWIURPWKHUDWL¿FDWLRQDQGFRPSOLDQFHZLWKLQWHUQDWLRQDODJUHHPHQWVVLJQL¿FDQW challenges relating to preservation of air quality in Montenegro in the coming period refer to the enforcement of IPPC legislation and improved control and reduction of pollution from mobile sources (transport). The priority NSSD objective is to preserve, and if possible to improve air quality, especially in urban areas, while the measures that need to be undertaken to achieve this include: a) harmonisation of national legislation with EU air quality directives; E UDWL¿FDWLRQRIUHOHYDQWSURWRFROVWRWKH&RQYHQWLRQRQ/RQJUDQJH7UDQVERXQGDU\ Air Pollution; c) development of a long-term strategy and an action plan for air quality management; d) phasing out the use of leaded petrol and reduction of sulphur levels 40 in diesel fuels and oil; e) introduction of integrated permits in line with the IPPC legislation; and f) establishment of the national network for monitoring air quality in line with EU standards.

5.2.4 Soil 6RLOLVRQHRIWKHPRVWVLJQL¿FDQWQDWXUDOUHVRXUFHV7KHSURFHVVRILWVIRUPDWLRQLV extremely slow and practically immeasurable in comparison to a human life span, while the process of degradation and destruction of the soil may take place in a relatively brief period of time. Although it has an area of 0.84 ha per capita, Montenegro has a small surface of agricultural land - around 517,000 ha only. The structure of agricultural land is also XQIDYRXUDEOHVLQFHWKHVKDUHRIDUDEOHÀDWODQGVLVVPDOO'HVSLWHWKHOLPLWHGDYDLODELOLW\ of this resource, a trend of its constant further decrease is recorded (especially when it comes to the best quality and the most productive agricultural land). Permanent conversion of agriculture land is done by the construction of urban and rural settlements, transportation routes, airports and hydropower plants. On the other hand, destruction of a good quality surface layer of the soil is taking place through a number of human activities that include: a) sand and gravel extraction DW VHYHUDO ORFDWLRQV IURP ULYHU EHGV DQG NDUVW ¿HOGV E  H[SORLWDWLRQ RI PLQHUDOV ± bauxite, coal, stone, zinc and lead; c) processing of minerals and other raw materials in industrial plants; d) production of brick and roof tiles from the raw materials from VXUIDFHH[FDYDWLRQVLQ7LYDWVNR¿HOG%HUDQH.RODãLQ3OMHYOMDDQGH WDLOLQJVGLVSRVDO The exploitation of mineral deposits and other raw materials in Montenegro amounts WRVRPHWRQVD\HDU:LWKDQDGGLWLRQRIDSSUR[LPDWHO\WKHVDPHYROXPHRI tailings, some 25,000 cubic meters of soil is being devastated annually. 2WKHUVLJQL¿FDQWIDFWRUVRIVRLOGHJUDGDWLRQLQFOXGHHURVLRQ ZDWHUZLQG DQGin-situ damages of soil (physical, chemical and biological). The decrease in soil fertility, land degradation and inappropriate use of soil that leads to ecosystem degradation and poses a threat to biodiversity, are all seen as forms of unstable and unsustainable development. Therefore, there is a real need for optimal soil management to provide for its proper protection, rational use and enhancement. The priority NSSD objective is the improvement of soil management and prevention of the causes of land degradation and damages. The measures and activities that need to be undertaken in order to achieve this objective are the following: a) improved monitoring and mapping of hazardous and harmful substances in soil; b) prevention, i.e. reduction to a lowest possible level of the conversion of agriculture land and its use IRURWKHUSXUSRVHF UDWL¿FDWLRQRIWKH81&RQYHQWLRQWR&RPEDW'HVHUWL¿FDWLRQ 81 CCD) and implementation of measures envisaged by the Convention; d) introduction of the system of soil fertility control and the rational use of fertilisers at arable areas of as many households as possible; e) gradual re-cultivation of degraded soils (priority should be given to Pljevlja area); and f) mapping of erosion by types and degrees, and development of measures for protection and regulation of eroded areas. 41

5.2.5 Forests Out of the total area of the Republic of Montenegro (1,381,000 ha), 743,609 ha or 54% are forests and woodlands, whereas forests cover 620,872 ha or 45% of the total territory. Forests are extremely important for the preservation of natural balance, biodiversity and quality of the environment, as well as for the economic development, especially in the northern, underdeveloped region. At the same time, forest ecosystems are exposed to multiple pressures threatening to lead to unsustainable use, primarily through uncontrolled, unplanned activities and excessive exploitation of natural resources. Other problems having negative impacts on the state of forests in Montenegro are: a) IRUHVWHFRV\VWHPVDUHQRWPDQDJHGLQWHJUDOO\ KXQWLQJ¿VKLQJWRXULVPQRQWLPEHU forest products – medicinal and aromatic plants, etc.; development of agro-forestry); b) wood cutting equipment is old and unsuitable to the conditions and needs, while most ZRUNLVFRQGXFWHGE\SHUVRQVZLWKRXWWKHQHFHVVDU\TXDOL¿FDWLRQV WKLVSUREOHPZDV exacerbated with the change from state controlled felling system to concessions); c) weak or inadequate accessibility of forests; d) lack of use of biomass; e) the fast-growing and high quality species are not used for reforestation; f) inadequate management of SURWHFWLRQ]RQHVDQGJ LQDGHTXDWHV\VWHPIRUSURWHFWLRQDJDLQVWIRUHVW¿UHV7KHODFN of reliable and updated data on forest resources and the fact that the national forest inventory does not exist represent a special problem from management perspective. There is also no system for monitoring the health status of forests. The move from the current to sustainable utilisation of forests and woodlands is WKH ULJKW ZD\ WR UHVROYH WKH FRQÀLFWV EHWZHHQ WKH UHTXLUHPHQWV WR SURWHFW IRUHVWV on one hand, and the need for their exploitation on the other. Inline with the goals of sustainable stewardship, forests will be maintained and, if need be, increased EHFDXVHRIHFRQRPLFEHQH¿WV EHQH¿WIXQFWLRQ DQGWKHVLJQL¿FDQFHWKH\KDYHIRUWKH HQYLURQPHQW SURWHFWLRQDQGUHFUHDWLRQIXQFWLRQVIXO¿OOHGSDUWLFXODUO\WKURXJKWKHLU contribution to permanent preservation of natural equilibrium, their positive impact on WKHFOLPDWHDLUSXUL¿FDWLRQSUHVHUYDWLRQRIZDWHUUHJLPHVRLOIHUWLOLW\DQGSODQWDQG wildlife, preservation of landscapes, contribution to agriculture and preservation of the infrastructure, and through possibilities they offer for leisure and recreation). $WWKHVDPHWLPHVXVWDLQDEOHIRUHVWVWHZDUGVKLSHQVXUHVWKHJUHDWHVWSRVVLEOHEHQH¿W from forests to present-day society and to future generations, since it is based on the principles of sustainability and economy and the concept of ecological forestry (ensuring permanent execution of forest functions having in mind the long time needed for their growth). Sustainable use of forests and all forest resources is not possible without the rational use of land and water resources or without fair distribution of EHQH¿WVDFKLHYHGWKURXJKWKHXVHRIWKHVHUHVRXUFHV In order to resolve the current issues and overcome the challenges, it is necessary to work on the improvement of regulations, the planning system, management tools and monitoring and control system, as well as on promotion of multiple functions of IRUHVWVDQGIDLUGLVWULEXWLRQRIEHQH¿WVJHQHUDWHGE\IRUHVWHFRV\VWHPV 7KHSULRULW\166'REMHFWLYHVLQWKH¿HOGRIIRUHVWHFRV\VWHPVPDQDJHPHQWDUHD WR REWDLQVXVWDLQDEOHIRUHVWU\FHUWL¿FDWH LQDFFRUGDQFHZLWK)RUHVW6WHZDUGVKLS&RXQFLO – FSC methodology), and b) renewal and restoration of degraded forests. 42 ,Q RUGHU WR LPSURYH PDQDJHPHQW DQG REWDLQ WKH VXVWDLQDEOH IRUHVWU\ FHUWL¿FDWH WKH priority measures are to adopt the National Forestry Policy for Montenegro and relevant legislation, preparation of national forest inventory, introduction of geographic information system (GIS), improvement of planning, establishment of reliable monitoring and control system for the implementation of plans and management practices in forestry and hunting, enhancement of seed and seedling production from autochthonous genetic resources, revitalisation of nurseries for the production of fast-growing species, monitoring the health of forests, etc. Also important are the PHDVXUHVIRUHVWDEOLVKLQJ¿UHSURWHFWLRQV\VWHPV YLGHRVXUYHLOODQFH HQKDQFHPHQWRI technologies for exploitation of commercial forests, reconstruction and construction of forest roads, and improved management of protection areas. The renewal and restoration of forests will prevent land degradation processes and have the positive impact on water resources and landscapes/ambient values.

5.2.6 Environmental management system Environmental management system has many weaknesses, some of the more pronounced ones being: a) incomplete and inadequate legal framework and poor enforcement of the existing regulations; b) lack of capacities of relevant institutions for effective environmental and natural resource management, with inadequate level of co-ordination, both horizontal and vertical; c) underdeveloped information and monitoring systems, which are not in accordance with international practices; G  LQVXI¿FLHQW IXQGLQJ IRU HQYLURQPHQWDO SURWHFWLRQ ERWK IURP SXEOLF DQG SULYDWH VRXUFHVDQGH LQVXI¿FLHQW DOWKRXJKH[SDQGLQJ PHFKDQLVPVIRUSXEOLFSDUWLFLSDWLRQ in decision-making. Besides these, additional problem is low level of integration of environmental concerns into other sector policies, where sectoral planning and low level of co-ordination still prevails. The challenges that need to be overcome in order to address current problems and limitations refer primarily to the improvement and better application of existing and the introduction of new mechanisms and tools for the implementation of environmental SROLF\ 7KHVH DUH ¿UVW RI DOO UHJXODWRU\ LQVWUXPHQWV UHJXODWLRQV DQG VWDQGDUGV  and management tools such as the environmental impact assessment and strategic environmental assessment (EIA, SEA), but also market-based tools (such as eco-taxes and charges, deposit-refund systems for packaging and certain other products, tradable permits, etc.) and voluntary approaches (such as ISO 14000 and 14001, EMAS plan, eco-labelling etc.). The practice in the EU member states shows that environmental policy goals can be attained more rapidly through an adequate combination of different W\SHVRILQVWUXPHQWVDQGWKDWPDUNHWEDVHGLQVWUXPHQWVDUHSDUWLFXODUO\HI¿FLHQWZKHQ it comes to attainment of goals at the lowest costs. Furthermore, challenges are present in regard to the implementation of the Aarhus Convention provisions, in particular regarding the need to strengthen public participation in decision-making and improve access to environmental information. Finally, the key challenge are EU integrations, since the experience of the new member states shows that the environment is one of the most complex and most demanding chapters of the Stabilisation and Association Agreement. The stabilisation and association process will require much more funds (from all the sources) to be invested in the environmental protection than was the case so far. 43 Besides the obligations stemming directly from EU integrations, special attention needs to be paid to integration of sustainability requirements into sectoral policies and to improved inter-sectoral co-operation in the process of environmental protection policy making and implementation in the future. This is a precondition for an effective management system and for achievement of sustainable development goals. 7KHSULRULW\166'REMHFWLYHLQWKLV¿HOGLVWKHHVWDEOLVKPHQWRIHI¿FLHQWOHJLVODWLYH and institutional framework for environmental protection (particularly in respect to free access to information, implementation of EIA, SEA and IPPC legislation and strengthening of other regulatory and market instruments for environmental management). The measures to achieve this objective include: further harmonisation with EU legislation; building administration capacities at all levels, particularly in UHVSHFWWRHI¿FLHQWDSSOLFDWLRQRIWKHQHZOHJLVODWLRQHVWDEOLVKPHQWRIWKH(QYLURQPHQWDO Protection Agency and the Eco-fund; alignment of monitoring programmes and reporting systems with EEA standards; activities to enable free access to information DQG PRUH VLJQL¿FDQW SXEOLF SDUWLFLSDWLRQ LQ GHFLVLRQPDNLQJ HWF &HUWDLQ PHDVXUHV relevant for the achievement of this objective are also given within action plans for other sectors and topics – industry, new technologies, water, air, waste, governance and participation, and others.

5.2.7 Spatial planning Spatial planning system in Montenegro is based on the hierarchy of plans, starting with the national spatial plan as the plan of highest importance, through spatial plans for special purpose areas (such as national parks and the coastal zone) and municipal spatial plans, down to general and detailed urban plans. 'HVSLWHLWVORQJVWDQGLQJDQGVLJQL¿FDQWWUDGLWLRQRIVSDWLDOSODQQLQJWKHV\VWHPRI planning, adopting and implementing plans has shown numerous shortcomings. As a result, pronounced negative trends in the management of space have been manifested, primarily through the changes of planned land uses, unplanned and illegal construction and uncontrolled urbanisation. Such phenomena threaten and devastate some of the most valuable natural resources in Montenegro (e.g. agricultural land, special purpose areas or their immediate surroundings). In addition, natural values and landscapes that constitute Montenegrin heritage and its unique characteristics as an ecological state and tourism destination are also threatened or irrevocably degraded. On the other hand, the quality of life decreases (particularly in urban areas) due to overcrowded neighbourhoods and inaccessibility of infrastructure and amenities, while the risks associated with natural GLVDVWHUV HDUWKTXDNHVDQGÀRRGVLQSDUWLFXODU LQFUHDVH Extensive illegal construction in the previous period resulted in a number of illegal buildings throughout Montenegro (particularly in larger urban centres and on the sites attractive for tourism development and recreation), and the process of rehabilitating the existing situation is extremely complex and poses a great challenge for the spatial planning system. Among other things, social implications as well as equity and human rights issues need to be taken into account in the process of legalisation of buildings and/or neighbourhoods constructed outside the planning system (this problem and the measures to address it are covered in more detail in the Chapter 5.3.6 – Urban development). 44 The problems particularly pronounced in the planning system (which contribute to the development of negative trends) are the following: outdated planning documents for VRPHDUHDVLQVXI¿FLHQWFRYHUDJHRIXUEDQSODQV DQGODFNRIFDSDFLWLHVDWWKHORFDO OHYHOIRUWKHGHYHORSPHQWRIWKHUHTXLUHGSODQQLQJGRFXPHQWV DQGGH¿FLHQFLHVLQWKH enforcement system (non-compliance with plans). The problems evidenced in the spatial planning were the reason to initiate the planning system reform, within which the new Law on Planning and Spatial Development was adopted (in May 2005). The basic presumption of the reform that is supposed WR SURYLGH IRU EHWWHU IXQFWLRQLQJ RI WKH V\VWHP LV HI¿FLHQW HQIRUFHPHQW RI SODQV with participatory process of their drafting, adoption and implementation. The new Law also envisages mandatory environmental impact and strategic environmental assessments (EIA and SEA) of the plans, which is of particular importance in the light of endeavours for integration of sustainability and environmental requirements in the planning documents. To that effect, special importance is attached to the development of the new Spatial Plan of the Republic as an integral document for spatial development that has a power of a law. The Spatial Plan is currently being developed, and its adoption is expected in 2007. Notwithstanding the facts that an effort has been invested to develop this plan through the use of modern methodologies and that international recommendations on sustainable spatial planning are taken into account, one of the major challenges in drafting and implementation process for NSSD Montenegro is to ensure that the Spatial Plan provisions are compatible with and complementary to sustainability requirements. Since the general aim of spatial planning is to ensure long term development, through inter alia protection of agricultural land and woodlands, protection of watercourses and water springs, and protection of special natural, cultural and landscape values, particular attention in the spatial planning reform needs to be given to promotion of modern trends in planning and introduction of modern concepts such as landscape protection, assessment of susceptibility (vulnerability or renewability) of space and similar. It is also necessary to develop an up-to-date land use policy as a basis for spatial planning. The priority NSSD objectives in spatial planning are: a) adoption of new and updating of the existing spatial plans at all levels (from the national spatial plan to municipal ones), and integration of sustainability requirements into spatial plans and documents; and b) protection of natural and cultural landscapes. Measures that need to be undertaken in order to attain these objectives include the adoption of the Spatial Plan of the Republic, together with the preparation of strategic environmental assessment for it, and adoption of the Spatial Plan of the Special Purpose Area for Morsko dobro as well as the adoption of new spatial, general and detailed urban plans at the local level (especially in coastal municipalities and the PXQLFLSDOLWLHVKDYLQJQDWLRQDOSDUNVZLWKLQWKHLUWHUULWRU\ :KLOHXSGDWLQJFXUUHQWDQG adopting the new planning documents, it is necessary to build capacities (especially at the local level and in the municipalities of the northern region), establish institutions that may contribute to capacity building, and ensure adequate public participation. Finally, a number of activities need to be undertaken to ensure better enforcement 45 of plans and the establishment of integral information system (land register, spatial planning, urban planning, infrastructure). :KHQLWFRPHVWRODQGVFDSHSURWHFWLRQWKHDSSURSULDWHSROLF\QHHGVWREHPDGHDQG landscape assessment and evaluation conducted, as envisaged under the Landscape Convention of the Council of Europe.

5.2.8 The sea and the coastal zone The sea of Montenegro includes the interior waters and the territorial sea up to 12 nautical miles off the shore, while the coastal zone covers some 300 km of the coast and the towns and settlements within six Montenegrin municipalities (coastal region). The ODZIURPGH¿QHGmorsko dobro (public maritime domain) as a special purpose area covering the narrow coastal belt along the whole coast (the land area of some 60 km2) and the area of the territorial sea of some 2,500 km2. 7RXULVPPDULWLPHDFWLYLWLHVDQGWRDVPDOOHUH[WHQWDJULFXOWXUHDQG¿VKHU\DVZHOO as extraction of mineral raw materials (sand and stone; research of oil and natural gas reserves) comprise the main economic activities in the coastal region. In the past, these activities led to a more or less unsustainable exploitation of non-renewable natural resources of the coastal region (primarily of the space and landscape values). Today ZHPD\VD\WKDWWRDODUJHH[WHQWWKHVSDFHRQWKHFRDVWDVDXQLTXHDQGVSHFL¿FYDOXH of Montenegro, has already been “used up” for diverse economic and other human DFWLYLWLHVVLQFHLWKDVXQGHUJRQHDVLJQL¿FDQWFKDQJHRIQDWXUDODQGODQGVFDSHYDOXHV An important source of pressures on resources and quality of marine and coastal environment are unresolved issues of waste disposal and wastewater treatment, while other sources of pressures also include ports and other maritime infrastructure, and to DOHVVHUH[WHQW¿VKHU\PDULFXOWXUHDJULFXOWXUHDQGLQGXVWU\ Box 5.2-1: Tourism and urbanisation in the coastal zone Tourism GHYHORSPHQWLQWKHFRDVWDOUHJLRQFDOOVIRUVLJQL¿FDQWFKDQJHVLQWKHVSDFHWKXV creating ever higher pressures on the coastline. The development of new tourism facilities creates the need for the construction and remodelling of the coast in order to create more beach space. Together with urbanisation, which apart from inevitable planned expansion of towns also involves a great deal of unplanned (illegal) construction, the uncontrolled development of tourism and increase of beach areas are the key causes of coast devastation, disturbance of landscapes and the change of natural characteristics which all threaten habitats, biodiversity and natural balance in general. On the other hand, the natural coast is the most attractive environment for tourists. Preservation of its features and appearance is therefore a precondition not only for the preservation of natural balance but also for the long-term tourism development. The Tourism Master Plan1 for the coastal region envisages 100,000 hotel beds and a total number of more than 200,000 beds in all the types of tourist facilities by the year 2020. The spatial planning documents DOVRHQYLVDJHDVLJQL¿FDQWLQFUHDVHRIWRXULVWFDSDFLWLHVWKHLQFUHDVHRIEHDFKVSDFHDQGWKH development of nautical tourism facilities in the area of morsko dobro. 46 The adequate control of pressures from tourism development and urbanisation is one of the main challenges in the process of implementing these plans. Although the SPSPAMD will mitigate pressures from unplanned development in the area of morsko dobro, provide for quality development of tourism and nautical facilities and to a large extent provide for the protection of natural landscape and ecologically valuable areas, it is necessary to emphasise that tourism development plans and spatial plans regulating the use of space and development orientation of the coastal region have not yet been subjected to “sustainability tests”, neither through the carrying capacity assessments (i.e. the assessment of the capacity of an area to receive a certain number of visitors) nor through strategic environmental assessment (SEA). The application of these and similar mechanisms (including a good quality environmental impact assessment at the project level) is a key priority in further development and implementation of planning documents and in development decision making in the coastal region. On the other hand, current coastal zone management system is characterised by sectoral competencies (which frequently overlap), lack of co-ordination, poor enforcement of legislation and lack of capacities of the relevant institutions. Therefore, there are QR HI¿FLHQW UHVSRQVHV WR WKH SUHVVXUHV WKDW KDYH JURZQ LQ SDUWLFXODU RYHU WKH SDVW decade, nor to the ones that are longer-lasting or are becoming even more pronounced SDUWLFXODUO\WKRVHUHODWHGWRWRXULVPGHYHORSPHQW ,QRUGHUWRRYHUFRPHLGHQWL¿HG problems and to ensure sustainable management of the sea and the coastal zone, it is ¿UVWRIDOOQHFHVVDU\WRZRUNRQRYHUFRPLQJVLJQL¿FDQWLQVWLWXWLRQDOKXPDQUHVRXUFHV DQG ¿QDQFLDO OLPLWDWLRQV DQG WR SURYLGH IRU UDGLFDO FKDQJHV RI WKH FXUUHQW VWDWH RI DIIDLUV$SDUWLFXODUFKDOOHQJHLVUHVROXWLRQRIFRQÀLFWVWKDWHPHUJHIURPDVSLUDWLRQVWR LPSOHPHQWSURMHFWVZKLFKEULQJDERXWVKRUWWHUPSUR¿WDVRSSRVHGWRWKHORQJWHUP valorisation through protection and preservation of the natural environment. The priority NSSD objectives are: a) introduction of integral coastal zone management; and b) reduction of pollution of the sea and coastal zone. In order to make progress WRZDUGVWKHDWWDLQPHQWRIWKHVHREMHFWLYHVLWLVQHFHVVDU\WRGH¿QHWKHERUGHUVRIWKH coastal zone (and to recognise the coastal zone in the Spatial Plan of the Republic) and set a line beyond which construction is not allowed. Furthermore, it is necessary to work on the implementation of the Barcelona Convention, MARPOL and other relevant conventions and their protocols, and develop and implement a number of strategic documents and action plans (including the National Strategy for Coastal Zone Management, CAMP Montenegro, National Plan for Emergency Response in Case of Accidental Pollution from Ships, National Action Plan for Reducing Land Based Pollution etc.). In parallel, it is necessary to introduce a number of regulatory and institutional changes, ensure clear division of competencies and better vertical and horizontal co-ordination among the relevant institutions with the aim of ensuring HI¿FLHQWFRQWURODQGHQIRUFHPHQWRIUHJXODWLRQV,QRUGHUWRPRQLWRUWKHVWDWHRIWKH sea and the coastal zone, it is necessary to provide for comprehensive, continuous and integral monitoring of oceanographic, physical, chemical, biological and other parameters and to keep an integral database of the sea and the coastal zone. A large number of measures relevant for the attainment of these objectives are also presented in relation to other priority objectives of NSSD, including the sectors and topics like tourism, transport, water management, protection of biodiversity, spatial 47 planning, environment management system and industry. In order to protect natural YDOXHVDQGDXWRFKWKRQRXVODQGVFDSHRIWKHFRDVWDO]RQHLWLV¿UVWRIDOOQHFHVVDU\WR assess the sustainability of each future investment and development project through the use of instruments such as environmental impact assessment and assessment of the area’s carrying capacity, particularly when it comes to the development of new tourism and nautical tourism facilities. At the same time, it is essential to put a stop to further degradation of the space in the coastal zone by the application of adequate spatial planning documents, ensure the protection of coastal wetlands (Ulcinj, Buljarica, and Tivat’s Solila) and other particularly valuable coastal ecosystems, and establish Marine Protected Areas (MPA) to protect marine ecosystems and biodiversity. Moreover, it is QHFHVVDU\ WR LPSOHPHQW VSHFL¿F SURMHFWV IRU UHGXFWLRQ RI ODQG EDVHG SROOXWLRQ HJ waste disposal and wastewater treatment, introduction of standards and environmental management in industries) and enforce international and national legislation in maritime transport.

5.2.9 Climate change and protection of the ozone layer 'XHWRWKHVPDOOVFDOHRILWVHFRQRP\DQGDVLJQL¿FDQWVKDUHRIK\GURSRZHULQWKH WRWDO GRPHVWLF SRZHU JHQHUDWLRQ 0RQWHQHJUR GRHV QRW HPLW VLJQL¿FDQW TXDQWLWLHV of greenhouse gasses that contribute to climate change. Nevertheless, as an energy- intensive economy (and thus as an emissions intensive economy), Montenegro has an obligation and a possibility to give its contribution to efforts for mitigating this major JOREDOHQYLURQPHQWDOSUREOHP2QWKHRWKHUKDQG0RQWHQHJURPD\VXIIHUVLJQL¿FDQW FRQVHTXHQFHVIURPFOLPDWHFKDQJHLQWKHORQJUXQ3RVVLEOHDUHDVRILQÀXHQFHUHODWH to rising of the sea level, increased temperatures and changes in agriculture and hydrological regime, negative impacts to mountain regions, etc. Besides climate change, another global problem – ozone layer depletion – is an area where certain activities need to be undertaken in order to contribute to the overall endeavours aimed at putting this problem under control. 7KH PDLQ VRXUFH RI HPLVVLRQV RI FDUERQ GLR[LGH DV WKH PRVW VLJQL¿FDQW JDV WKDW contributes to climate change is combustion of fossil fuels (for power generation, industry and transport). Carbon-dioxide emissions from transport are continuously JURZLQJJOREDOO\DVZHOODVLQ0RQWHQHJUR2WKHUVLJQL¿FDQWJUHHQKRXVHJDVVHVDUH methane and nitrogen oxides, with sources such as waste disposal and agriculture. As for the substances that deplete the ozone layer, the main sources of CFCs, halons and other substances are the refrigeration and cooling devices industry, aerosols, foams and solvents. $VPHQWLRQHGHDUOLHUUDWL¿FDWLRQRILQWHUQDWLRQDOFRQYHQWLRQVRQDLUTXDOLW\FOLPDWH change and ozone layer i.e. compliance with the obligations stemming from them, are important objectives for the coming period (this particularly holds true for compliance with the UN Framework Convention on Climate Change and the Vienna Convention on the Protection of the Ozone Layer). In accordance with that, the priority NSSD REMHFWLYHIRUWKLV¿HOGLVWKHIXO¿OPHQWRIREOLJDWLRQVXQGHUWKHLQWHUQDWLRQDODJUHHPHQWV on climate change and reduction in the use of ozone depleting substances. The measures that need to be implemented in order to attain this objective include drafting the National Communication on Climate Change (containing the inventory 48 of greenhouse gasses, a plan to reduce emissions and a programme for mitigating the FRQVHTXHQFHV UDWL¿FDWLRQRI.\RWR3URWRFRODQGLPSOHPHQWDWLRQRIWKHSURJUDPPH for phasing out the ozone depleting substances.  :DVWH Montenegro is facing considerable problems with managing all the types of waste. Current system of waste collection and disposal is such that it does not provide for waste separation and separate treatment of different types of waste, while in principle the disposal of non-hazardous industrial, municipal and hazardous wastes alike does not meet the minimum environmental standards. As for municipal waste, the percentage of population covered by the organised system of waste collection is rather low and unsatisfactory. The database on different sources, quantities and sites where waste is disposed of (be it UHJLVWHUHGODQG¿OOVRUDODUJHQXPEHURIVPDOOHUDQGLOOHJDOGXPSV LVSRRU3URYLVLRQDOO\ estimated quantities of waste generated in Montenegro each year are: solid communal waste – around 185,500 t (19,000 t of it being hazardous waste); industrial waste – 175,000 t; red mud (KAP) – 370,000 t; sludge – 1,650 t; energy sector waste – 350,000 t; medicinal waste – 550 t; there are no data for construction and animal waste18. Re- use and recycling are found on a very small scale, while energy recovery programmes and recovery of raw materials from waste are almost non-existent. Besides major systemic issues in waste management and negative environmental impacts related therewith (soil, groundwater and surface waters pollution, public health hazards), another important issue relates to low awareness of the need to reduce waste generation and provide for its appropriate treatment/disposal. The results of such a state of affairs are highly visible both in urban areas and in natural environments throughout Montenegro, where scattered waste represents a frequent “supplement” to the landscape. The Solid Waste Management Master Plan, National Waste Management Policy DQGWKH/DZRQ:DVWH0DQDJHPHQWDOODLPDWDGGUHVVLQJWKHVHLVVXHV Main challenges in waste management are successful implementation of the Law on :DVWH 0DQDJHPHQW DGRSWHG E\ WKH 3DUOLDPHQW RI 0RQWHQHJUR LQ 'HFHPEHU  entering into force as of November 2008), the provision of funds for the implementation of projects and programmes envisaged by the Master Plan for Solid Waste Management and building capacities of public utility companies as the main providers of municipal ZDVWHFROOHFWLRQDQGGLVSRVDOVHUYLFHV,QDGGLWLRQWKHUHDUHDOVRVLJQL¿FDQWFKDOOHQJHV UHODWLQJWRWKHVHOHFWLRQRIVLWHVIRUIXWXUHUHJLRQDOODQG¿OOVWKDWDUHDFFHSWDEOHIRUWKH local population, from the point of view of environmental protection and which incur the lowest costs. Another important challenge is the development of the programme for recycling of all the waste categories, since recycling was so far done on a very VPDOOVFDOH:LWKLQGXVWULDODQGKD]DUGRXVZDVWHLQSDUWLFXODUPDLQFKDOOHQJHVUHODWH to the implementation of new regulations and necessary improvements in managing these categories of waste. The main tasks set by the new legislative and strategic framework for waste  6HFWRUDOVWXG\ 66$( :DVWH0DQDJHPHQW6WUXFWXUHDQG4XDQWLWLHVRI:DVWHLQ0RQWHQH- gro; Master Plan for Solid Waste Management 49 management in Montenegro include waste reduction, waste separation, adequate disposal and recycling in order to reduce pollution from waste and to preserve the resource base. In that context, the priority NSSD objective is further harmonisation with the EU legislation, together with strengthening capacities for proper waste handling and enhancing the waste database. The measures that need to be implemented in order to make progress in achieving this objective include: a) enactment of relevant by-laws; b) drafting national and local waste management plans; c) construction of VDQLWDU\ODQG¿OOVIRUPXQLFLSDOZDVWHDQGFRQVWUXFWLRQRIKD]DUGRXVZDVWHODQG¿OOG  establishment of proper waste database; and e) activities on awareness raising regarding proper waste disposal and on stimulating recycling. Apart from these measures, it is important to point out that the Master Plan also envisages rehabilitation projects for current dumping sites and construction of recycling centres, but these activities have been envisaged for implementation after the year 2010. 6RFLDO GHYHORSPHQW LGHQWL¿FDWLRQ RI SUREOHPV DQG FKDOOHQJHV SULRULW\ objectives and measures

5.3.1 Governance and public participation in decision-making The implementation of the sustainable development concept requires a radical reform of the governance system at all levels. This implies new organisation of the society, state administration and local governments in the formal and institutional, but also in the substance and structural senses, particularly regarding the process of formulating, adopting and executing political decisions. Apart from the constitutional and legal reform at all levels, it is necessary to build capacities of state and other public institutions, develop human resources and build their professional capacities on qualitatively new grounds, introduce new decision-making methods to provide for the actual and equal participation of as many citizens as possible in the process, especially when their lives may be directly affected by such decisions. 7KH FRQFHSW RI VXVWDLQDEOH GHYHORSPHQW UHTXLUHV D PRUH SUHFLVH GH¿QLWLRQ DQG considerably larger and wider competencies of the state and its institutions in the economic, social and environmental arena. Imperfections of the market and the need IRUVWDWHLQWHUYHQWLRQLQWKHDOORFDWLRQRIUHVRXUFHVWRPD[LPLVHWKHEHQH¿WVWRDOOWKH members of a society are recognised in developed market economies. Having in mind, on the other hand, a high risk of unsustainable development faced by the transition economies, Montenegro needs to pay much more attention to the issues of regulation and intervention than was the case so far. The understanding and exercise of private property and individual interests as absolute rights may jeopardise the prospects of 0RQWHQHJUR WR GHYHORS LQ D VXVWDLQDEOH ZD\ 6XVWDLQDEOH GHYHORSPHQW ¿UVW RI DOO PHDQV¿QGLQJDEDODQFHEHWZHHQVRFLHWDO LQFOXGLQJIXWXUHJHQHUDWLRQV DQGLQGLYLGXDO interests in all the areas of social interactions, in order to strengthen political, social and cultural cohesion of the society and to provide for all the dimensions of human rights to all the members of society. It is also necessary to create regulatory and de facto prerequisites for real decentralisation of power in Montenegro. In the decision-making process, attention needs to be paid to development and promotion of methods such as reaching agreements, negotiating, KDUPRQLVDWLRQRIFRQÀLFWLQJLQWHUHVWVFRRSHUDWLRQDQGFRRUGLQDWHGDFWLRQRIFHQWUDO 50 and local authorities with the involvement of other stakeholders – the civil sector, professional associations and trade unions, research institutions, and business sector. The implementation of sustainable development concept is unimaginable without the real and more active participation of the civil sector and non-governmental organisations that must become equal partners to state institutions; it also presumes a much higher capacity and competencies of the civil sector. Finally, the sustainable development concept requires a wide range of educational and awareness raising activities at all levels – from primary school to political decision- makers – in order to create a new and qualitatively different system of thinking, acting, working habits, responsibility and in particular a different value system. Other prerequisites of sustainable development and requirements for a higher degree of regulation and intervention19 in the economic, social and environmental arenas have been discussed within other sectors and topics. The priority NSSD objectives are: a) improve enforcement of laws and implementation of strategic documents, plans and programmes; ensure adequate public participation in the process of their preparation; b) prevention of corruption; and c) decentralisation. The progress in the attainment of these objectives will to a large extent depend on the political will for consistent and non-discriminatory application of laws, policies and plans (with strict application of the principle of top-down responsibility in case of non- compliance with adopted standards), as well as on further development of political culture in which public interest has a priority over individual and group interests. Increased transparency in the decision-making and policy implementation processes, reduction and additional control (particularly judicial) over discretionary powers of executive government bodies and non-discriminatory responsibility of all in the cases of corruption and abuse of power are also the preconditions for successful attainment of these objectives. 7KH PHDVXUHV IRU DWWDLQPHQW RI WKH ¿UVW REMHFWLYH LQFOXGH D  FRQVLVWHQW DSSOLFDWLRQ of sanctions in cases of non-compliance; b) improving enforcement of legislation and implementation of strategic documents, primarily through capacity building; c) continuation of public administration reform focusing primarily on the needs stemming from EU integrations; and d) enhanced transparency and public participation in decision- making. To attain the second objective, it is necessary to adopt the anti-corruption policy, apply consistently the Law on Free Access to Information, conduct anti- FRUUXSWLRQFDPSDLJQVLPSURYHOHJLVODWLRQLQWKH¿HOGRIDQWLFRUUXSWLRQVWUHQJWKHQWKH LQVWLWXWLRQVIRUWKHLPSOHPHQWDWLRQRIDQWLFRUUXSWLRQSROLF\DQGLQFUHDVHWKHHI¿FLHQF\ RIWKHMXGLFLDU\ FKDQJHVDQGDPHQGPHQWVRIWKH&ULPLQDO&RGHHVSHFLDOO\LQWKH¿HOG RIFDSDFLW\EXLOGLQJLQWKH3URVHFXWRU¶V2I¿FHDQGLQWURGXFWLRQRIVHFUHWVXUYHLOODQFH measures). Finally, regarding the decentralisation it is necessary to: apply consistently WKH/DZRQ/RFDO6HOIJRYHUQPHQWEXLOGLQVWLWXWLRQDODQG¿QDQFLDOFDSDFLWLHVRIORFDO authorities and build capacities at the local level; and strengthen inter-municipal co- operation.  6XFKDVSURYLVLRQRIPHFKDQLVPVIRUHTXLWDEOHGLVWULEXWLRQRIEHQH¿WVIURPHFRQRPLFGHYHORS- ment; ensuring the right to development and access to basic services and assets; and ensuring integra- tion of sustainability requirements into development policies. 51

5.3.2 Education The development of market economy and entrepreneurship, the need for the development and application of new technologies, and ever more present globalisation and European integration processes are increasingly shaping economic and social developments in Montenegro, and have set new goals and posed new challenges for the education system. A more rapid economic development and escape from poverty may not be achieved without proper education and good governance. Educational reform, efforts to establish the “learning society” (life-long learning) and to achieve quality education responsive to individual needs, are concrete responses to the challenges of our time. Education is the foundation and the vital factor for both the economic development, and social, environmental, cultural and ethical visions of sustainable development of Montenegro. Any economic growth in the future must be based on knowledge and be in harmony with “sustainable development” of the society. The importance of education in the implementation of the sustainable development concept was recognised globally and thus the UN designated the period 2005 – 2014 as the decade of Education for Sustainable Development. Total budgetary spending on education in the past, although very high in relative terms20 and above the OECD average, have not been adequate to cover the needs and ensure the development of modern education system. At the same time, the expenditures for research and development were very low. This gave rise to a number of problems LGHQWL¿HGLQWKHSDVWZKLFKZHUHDQGVWLOODUHWKHVXEMHFWRIWKHRQJRLQJFRPSUHKHQVLYH education sector reform. Particularly pronounced were the following problems: ƒ School infrastructure, in a considerable number of schools, does not meet the needs of modern teaching (in certain regions there is a lack of school infrastructure and lack of teaching aids, while the school network does not keep pace with the demographic changes); ƒ Outdated curricula, inadequate inclusion of ICT in the education system, as ZHOODVLQVXI¿FLHQWDWWHQWLRQSDLGWRFLYLFHGXFDWLRQKXPDQULJKWVGHPRFUDF\ peace and tolerance topics; ƒ Inadequate integration of Roma and marginalised groups in education system; ƒ /DFNRIDWWHQWLRQDQGLQVXI¿FLHQWLQFOXVLRQRIFKLOGUHQZLWKVSHFLDOQHHGVLQ regular educational institutions; ƒ Lack of skills-based knowledge, lack of curricula to prepare the young people for market economy and entrepreneurship, ƒ ,QDGHTXDWHIXQGVIRUVFLHQWL¿FUHVHDUFKDQGGHYHORSPHQW From the point of view of sustainable development, a special problem is the fact that HQYLURQPHQWDQGVXVWDLQDEOHGHYHORSPHQWZHUHQRWSURSHUO\DQGVXI¿FLHQWO\LQFOXGHG in the old curricula. 7KH HGXFDWLRQ V\VWHP UHIRUP LQ 0RQWHQHJUR LV DGGUHVVLQJ WKH LGHQWL¿HG SUREOHPV in a systematic and comprehensive manner. The new legislation has been adopted, and curricula modernised and developed in accordance with up-to-date European educational curricula through the inclusion of ICT, provision of the possibility to have 20) Expressed as a percentage share of budgetary expenditure for education in GDP. 52 optional subjects, introduction of topics relating to civic education, human rights, democracy, peace and tolerance, market economy and entrepreneurship. At the same time, steps have been taken towards introduction of skills-based knowledge. The reform has also contributed to the integration of Roma and marginalised groups in the education system, inclusion of children with special needs in regular school system, improvement of the school infrastructure (reconstruction of existing and construction of new school buildings) and to an increase in the number of children included in pre- school education. Despite numerous limitations, the education reform is conducted according to the plan and a number of short-term, medium-term and long-term reform goals is to be attained in the coming period inline with the Strategic Plan for Education Reform for the Period 2006 – 2010. :LWKWKHLPSOHPHQWDWLRQRIWKLV document numerous goals and REMHFWLYHVWKDWDUHWKHVXEMHFWRILQWHUQDWLRQDOFRQYHQWLRQVDQGGHFODUDWLRQVLQWKH¿HOG of education will be achieved. The education reform increases the education level of the population, guides its sustainable development and contributes to EU integration. 7KH0LQLVWU\RI(GXFDWLRQDQG6FLHQFHZLOOGH¿QHPRUHFORVHO\WKHREMHFWLYHVWKH activities and the indicators related to sustainable development through the development of a special Strategy of Education for Sustainable Development 2005 - 2014. Besides the regular education system, considerable attention will be given to the development of the system of informal education to enable life-long learning and recognition of newly DFTXLUHGNQRZOHGJHLQWKHV\VWHPRIQDWLRQDOYRFDWLRQDOTXDOL¿FDWLRQV(QKDQFHPHQW of formal and informal education (in respect to both quality and coverage), full DI¿UPDWLRQ DQG EHWWHU YDOXLQJ RI NQRZOHGJH DV ZHOO DV HQVXULQJ PRUH VLJQL¿FDQW support to research and development are some of the challenges Montenegrin society is facing when it comes to education. Overcoming these challenges is a prerequisite for faster EU integration (“knowledge based society” is one of the basic concepts of the EU), and for creation of a system of values suitable for sustainable development. 7KH SULRULW\ 166' REMHFWLYHV KDYH EHHQ LGHQWL¿HG IURP D ZLGHU VHW RI HGXFDWLRQDO reform goals and they include: a) quality education for all children; attainment of Millennium Development Goals and the National Action Plan for Children goals; and b) increase of sustainable development topics and contents in the educational curricula from pre-school to university levels. 7KH PHDVXUHV IRU WKH LPSOHPHQWDWLRQ RI WKH ¿UVW REMHFWLYH LQFOXGH D  SURYLVLRQ RI all-inclusive elementary school education (particularly regarding Roma children); b) provision of assistance to poor children through provision of free of charge textbooks; c) implementation of inclusive education; and d) conducting teaching in accordance with the new curricula. For the implementation of the second objective, i.e. for the increase of sustainable development topics and contents in the curricula, it is necessary to: develop curricula for optional subjects for primary schools and general secondary schools, include sustainable development topics within free parts of syllabi from pre- school to university levels, ensure proper implementation of curricula and strengthening co-operation with the NGO sector through the implementation of joint projects relating to environment and sustainable development. Measures linked to support for research and development are presented under the priority objective for new technologies. 53

5.3.1 Health care system Health care policy and strategy for the development of health care system in Montenegro – Health for All in the 21st Century – are in line with the Millennium Development Goals and are aiming to enhance and preserve public health, while making the adjustments and improvements in the health care system operation in accordance with available ¿QDQFLDOPHDQV 7KHRUJDQLVDWLRQDQG¿QDQFLQJRIWKHKHDOWKFDUHV\VWHPDUHEDVHGRQWKHGRPLQDQW role of the public sector. In the conditions of a low GDP and considerable pressures RQSXEOLFVSHQGLQJWKLVIDFWSRVHVVLJQL¿FDQWFKDOOHQJHV7KHRQJRLQJUHIRUPRIWKH health protection system will enable integration of private and public sectors, and will help with overcoming the problems of the health care system inherited from the past. Demographic and geographic factors affect the organisation of a health care system and its costs, and there is a number of exacerbating conditions linked to these factors in Montenegro. Due to the increase of life expectancy and the reduced birth rates, the share of older population increases. According to the last census, the share of people over 65 years of age in general population is 12.8%, and the older people have 3.5 to 4.5 higher health care needs than the population under 65. Furthermore, in order to comply with the principle of accessibility of health care services, certain health care facilities need to be developed for around 38% of the population (according to 2003 census data) living in rural areas. Meeting the health care needs of rural population VLJQL¿FDQWO\LQFUHDVHVWKHFRVWV)LQDOO\WKHUHLVWKHLVVXHRIVRPHUHIXJHHVDQG displaced persons who are also entitled to health protection. Risky behaviours and the presence of risk factors in the living and working HQYLURQPHQWV FRQVLGHUDEO\ DIIHFW WKH VWDWH RI SXEOLF KHDOWK 2QH RI WKH VLJQL¿FDQW problems in Montenegro are preventable deaths (i.e. deaths caused by certain life styles - smoking, malnutrition, lack of physical activity, alcoholism, drugs abuse). According to the data of the Public Health Institute, 10.5 years of life were lost due to early deaths in 2002 (mainly due to cardio-vascular diseases and cancers). Despite the well evidenced relation between behaviour patterns and health, the health care system is to a great extent geared towards the provision of curative services, while the activities to promote health are mainly not funded through the system (although these constitute PRUHDFFHVVLEOHPRUHHI¿FLHQWDQGFKHDSHUIRUPRIKHDOWKSURWHFWLRQ  The analysis of health data shows an improvement in public health. One of the most sensitive indicators of health conditions and development of health care services, as well as the overall social, economic, educational and cultural development of a society is the infant mortality rate. The value of this indicator for 2004, the last year IRU ZKLFK WKHUH LV DYDLODEOH GDWD VKRZV D VLJQL¿FDQW GHFUHDVH LQ LQIDQW PRUWDOLW\ 7KH UHFRPPHQGDWLRQ RI WKH:+2 IRU WKH FRXQWULHV VLPLODU WR RXUV LV WKDW WKLV UDWH should be less than 10 (10 stillborn on 1,000 infants), while our Health Care Policy has set the goal of decreasing the infant mortality rate to below 8. In 2004, the infant mortality rate was 7.8, meaning that for this year, the set goal was achieved. Together with the infant mortality rate, mortality rate for children under 5 years of age has also decreased. This too is a very sensitive indicator according to which UNICEF ranks the countries. In addition, maternal mortality rate has been zero for several years already, 54 which means that there were no deaths in Montenegro caused by pregnancy, delivery and post-delivery period. Leading causes of deaths in Montenegro are the same as in the developed European countries – cardio-vascular diseases and cancers. Public health statistics is not well-developed. This applies both to monitoring the relations between environment and health, and to entire health protection statistics. In other to provide for adequate monitoring in the system of protecting and improving human health and of the quality of health care services, it is necessary to work on the development of professional standards, development of information system, drafting of regulations on data collection, maintenance and retrieval, adequate evaluation of health programmes and more realistic reporting. Prevention and reduction of risk of spreading contagious diseases (like HIV/AIDS, 6$56DQGDYLDQLQÀXHQ]D SRVHVDVSHFLDOFKDOOHQJHIRUWKHKHDOWKFDUHV\VWHP The priority NSSD objectives are: a) improve the health-related quality of life (while promoting healthy life styles); and b) preservation and improvement of public health with particular emphasis on vulnerable groups. The measures that need to EHXQGHUWDNHQLQRUGHUWRDWWDLQWKH¿UVWREMHFWLYHLQFOXGHWKHSURPRWLRQRIKHDOWK\ lifestyles in order to alter risky behaviours, improvement in the control of health safety of food, drinking water and consumer goods, and research into the impacts of external (environmental) factors on health alongside with preparation of the national action plan for health and environment. As for the second objective, a number of actions aimed at prevention, timely detection, treatment and suppression of diseases need to be undertaken. Moreover, actions geared towards the provision of adequate health protection for vulnerable groups, upgrading the level of mental health and provision of adequate care for different types of traumas (especially the ones caused in car accidents) need to be undertaken. The measures and actions envisaged for the attainment of the VHFRQGREMHFWLYHKDYHPRVWO\EHHQGH¿QHGLQWKHOHJLVODWLRQGHDOLQJZLWKSXEOLFKHDOWK protection, but due to their extreme importance for general development, they need to be highlighted and their implementation needs to be monitored through the health protection system.

5.3.2 Equality and social protection Changes brought about by transition led to the negative trends regarding exercise of equal rights (including the right to employment, right to development and other IXQGDPHQWDOKXPDQULJKWV WRVRFLDOVWUDWL¿FDWLRQDQGWKHHPHUJHQFHRIWKHFDWHJRU\ of “losers of transition”. Some of the problems of social inequality, however, have deeper and systemic roots. Such are, for instance, the problems related to gender inequality and social exclusion RI 5RPD DOWKRXJK WKH H[WHQW RI WKH ODWWHU KDV LQFUHDVHG UHFHQWO\ ZLWK WKH LQÀX[ RI refugees and displaced persons). From the equity standpoint, refugees and displaced SHUVRQVUHSUHVHQWDSDUWLFXODUO\YXOQHUDEOHFDWHJRU\ZKRVHGLI¿FXOWHFRQRPLFVLWXDWLRQ is frequently related to the issues of social marginalisation. 2QHRIVWDQGDUGLQHTXDOLW\LQGLFDWRUV±*LQLFRHI¿FLHQW±ZDVLQZKLFKLV similar to other countries in the region. However, decile ratio i.e. ratio of the average 55 consumption of 10% of the richest and 10% of the poorest in Montenegro was rather high (7) - much higher than in other countries in the region. Poverty rate was 12.2%, while one third of the population was assessed to be economically disadvantaged21. The key problems in social and child protection (regarding its role in mitigating poverty-related problems and consequences) are manifested primarily through the inability of the current system to cover all the most vulnerable segments of population. 7KHPDLQIRUPRIVRFLDO ¿QDQFLDO DVVLVWDQFHLVIDPLO\DOORZDQFH 023RUPDWHULDO IDPLO\EHQH¿W FXUUHQWO\XVHGE\VRPHSHUVRQV DURXQGIDPLOLHV 7R that, additional 4,500 persons receive allowances on the grounds of inability to take care of themselves. Monthly allowances received on these two grounds are very low and range from 50 to 95 euros (depending on the number of family members). Other forms RIVRFLDODVVLVWDQFHLQFOXGHFKLOGFDUHRQHRII¿QDQFLDODVVLVWDQFHDQGWKHVHUYLFHVRI centres for social work. The right to unemployment assistance is exercised through institutions which are outside the social protection system, but is highly restrictive and the allowances are very low. $VHULRXVLPSHGLPHQWIRUDPRUHHI¿FLHQWSRYHUW\UHGXFWLRQWKURXJKWKHVRFLDOSURWHFWLRQ system is also an underdeveloped system for monitoring the social protection needs and activities (expect for those that refer to the exercise of rights regulated under social welfare system). Another limiting factor is the fact that all social protection services lack staff for carrying out the complex and responsible roles on user protection. 0DMRULW\ RI SURJUDPPHV DQG VHUYLFHV LQ WKH ¿HOG RI VRFLDO DQG FKLOG SURWHFWLRQ DUH exercised through the institutional system. Development, creative and alternative programmes and projects in social and child protection are sporadic and most often supported by the international institutions or organisations. Although the law allows it, the inclusion of other stakeholders (such as the private and the civil sector) in the provision of services is inadequate since there are no standards to enable quality assurance of such services. Municipalities regulate and provide some of the extended social protection rights like provision of assistance in the household for elderly and ill, assistance with housing issues for the needy people and other forms of additional protection. These segments of social protection are rather undeveloped and cover a small number of users, the situation caused by the lack of funds in municipalities. ,QRUGHUWRFRQWULEXWHWRIXO¿OPHQWRIWKHRQHRIIXQGDPHQWDOSULQFLSOHVRIVXVWDLQDEOH development – equal exercise of rights to development and access to basic services and IXQGV±WKHSULRULW\166'REMHFWLYHVKDYHEHHQGH¿QHGDVD HQKDQFLQJWKHTXDOLW\ of social protection services and economic empowerment of needy persons; and b) strengthening gender equality. 0HDVXUHVWKDWQHHGWREHXQGHUWDNHQWRDWWDLQWKH¿UVWREMHFWLYHLQFOXGHWKHDGRSWLRQ of the Strategy for the Development of Social and Child Protection, as well as the adoption of the Strategy for Integration of Disabled Persons. In addition, a number of measures need to be implemented in order to improve the status of displaced persons and their local integration, which include the establishment of appropriate centre within 21) Source: DPRS 56 the Commissariat for Displaced Persons, employment programmes, provision of basic housing and access to the social protection system. Special attention needs to be paid to improved employment of RAE population. :KHQ LW FRPHV WR JHQGHU HTXDOLW\ WKH PHDVXUHV WKDW QHHG WR EH XQGHUWDNHQ LQ WKH coming period include the enactment of the Gender Equality Law and drafting and implementation of the National Plan of Action for Gender Equality. Moreover, PHFKDQLVPVIRUHTXDOLQÀXHQFHRIZRPHQDQGPHQLQGHFLVLRQPDNLQJRQWKHHFRQRPLF GHYHORSPHQWDQGGLVWULEXWLRQRIHFRQRPLFEHQH¿WVQHHGWREHGHYHORSHG

5.3.3 Culture and media +LVWRULFDOO\WKHFXOWXUDOVSDFHRI0RQWHQHJURKDVEHHQGHYHORSHGXQGHUWKHLQÀXHQFH of the Mediterranean, Central European, East European and Oriental civilisations and cultures. Multiculturalism is, thus, an intrinsic feature of the cultural heritage and the life style, which, together with the rich natural heritage, makes one of the most VLJQL¿FDQWFRPSDUDWLYHDGYDQWDJHV7KHV\VWHPRISURWHFWLQJWKHFXOWXUDOKHULWDJHDQG developing the art at the national level involves a number of institutions established and funded by the state. The aim of each of these institutions is to take care of the diverse forms of cultural heritage in their own domain and to take part in the development and advancement of culture and artistic creation. At the same time, cultural heritage management and preservation of cultural identity FRQVWLWXWHVLJQL¿FDQWFKDOOHQJHVLQWKHWUDQVLWLRQSHULRG6RPHRIWKHPDLQSUREOHPV faced in this area are as follows: ƒ Lack of awareness of the value of cultural diversity; ƒ Disappearance of traditional values, customs and events; ƒ Lack of knowledge about the minority communities culture, and inadequate availability of the minority communities culture to the wider public; ƒ Low level of cultural monuments protection that has led to damages and GHJUDGDWLRQRIDVLJQL¿FDQWQXPEHURIPRQXPHQWV ƒ Non-existence of adequate database on all the segments of cultural heritage; ƒ Lack of archaeological map and database on archaeological sites; no proper records on submarine archaeological sites; ƒ Inadequate presentation of cultural heritage and artistic creation. As for the media, one important challenge is linked to the contribution the media PD\ JLYH LQ WKH IXO¿OPHQW RI WKH IUHH DFFHVV WR LQIRUPDWLRQ DQG SURPRWLRQ RI WKH concept of sustainable development. A considerable challenge is also the development RISURIHVVLRQDOMRXUQDOLVP:LWKLQWKHFXUUHQWLQLWLDWLYHVWRLQFUHDVHSURIHVVLRQDOLVP of the media, special attention needs to be given to training of journalists regarding sustainable development issues. Having in mind the given problems and challenges, the priority NSSD objectives in WKH ¿HOG RI FXOWXUH DQG PHGLD DUH D  SUHVHUYDWLRQ RI FXOWXUDO KHULWDJH DQG FXOWXUDO diversity; and b) increasing professionalism of the media and providing for a more substantial contribution to raising public awareness on sustainable development and to free access to information. The measures needed for the implementation of the ¿UVW REMHFWLYH LQFOXGH WKH GHYHORSPHQW RI WKH 1DWLRQDO 6WUDWHJ\ RQ FXOWXUDO SROLF\ 57 and drafting a set of laws on cultural heritage. In addition, the database of cultural heritage and archaeological map of Montenegro need to be developed, campaign aimed at promotion and preservation of cultural diversity launched, and the Management 3ODQIRUWKH:RUOG+HULWDJH6LWH .RWRU FRPSOHWHG,QWKH¿HOGRIPHGLDWKH/DZ on Illicit Media Concentration needs to be adopted, the training programmes for journalists developed (especially on ”research journalism”, contribution to free access to information and sustainable development issues) and more media attention needs to be dedicated to sustainable development.

5.3.1 Urban development According to the data from the last census, 62% of the total population in Montenegro live in urban areas. The quality of life of this segment of population is adversely affected by numerous problems of urban development. On the other hand, uncontrolled and unplanned expansion of urban settlements and non-compliance with sustainable construction standards has a negative impact on the space and environmental quality in general. All these issues share the same root: planners and governing bodies have not managed to control and channel the process of excessive and rapid urbanisation, which has led to unsustainable use of space on one hand and decrease of the level of urbanism and quality of life on the other. In order to put a stop to negative trends, it is necessary to address numerous weaknesses and problems in several interconnected areas: a) spatial planning, enforcement and illegal construction, and the subsequent urbanisation pressures on the space (particularly where it is very limited and valuable – coast, protected areas and their surroundings) and on the agricultural land; b) rapid growth of urban population and the beginning of emergence of settlements for marginalised groups; c) lack of proper infrastructure in (parts of) urban areas; d) housing issues, particularly for the poor and WKH\RXQJH LQVXI¿FLHQWTXDOLW\RIWKHXUEDQVWUXFWXUHVLQFRPSOHWHDQGXQEDODQFHG spatial distribution of different facilities and functions; f) inadequate and energy LQHI¿FLHQWFRQVWUXFWLRQJ LQVXI¿FLHQWVDIHW\LQXUEDQDUHDVK LQVXI¿FLHQWFDUHIRU IXO¿OOLQJWKHQHHGVRIWKHSRSXODWLRQJURXSVZLWKVSHFLDOQHHGVL QHJOHFWHGSXEOLF areas etc. Finally, there is the lack of citizens awareness on belonging to a certain urban environment – the feeling needed to develop care, but also the responsibility for protection and enhancement of space. The challenges that need to be overcome to address these issues properly primarily refer to the need to overcome a narrow perspective on spatial planning, sustainable and urban development that political structures often have, and failing to recognise the necessity of addressing spatial issues in a highly professional manner. Another challenge is the lack of capacities of local authorities, as well as inadequate capacities of professional circles (lack of experts and lack of knowledge related to sustainable space development and global trends in urbanisation). No lesser challenge is the need to develop a clear monitoring system in urban areas to observe positive and negative trends and formulate proper responses. Starting from these problems and challenges, the following priority NSSD objectives KDYH EHHQ GH¿QHG D  KDOWLQJ LOOHJDO FRQVWUXFWLRQ DQG OHJDOLVDWLRQ RI EXLOGLQJV E\ observing the principles and goals of the Vienna Declaration and by using positive experiences of other countries in combating illegal construction; and b) improving the 58 TXDOLW\RIOLIHDQGVDIHW\LQXUEDQDUHDVIRFXVLQJRQWKHOLYLQJFRQGLWLRQVRIVSHFL¿F (marginalised) target groups; establishing a responsible attitude of the citizens towards the urban environment22. Measures that need to be undertaken in order to implement WKH¿UVWREMHFWLYHDUHWKHGHYHORSPHQWRIWKHQDWLRQDOVWUDWHJ\IRUDGGUHVVLQJWKHLVVXH of illegal construction, development of a database on illegal buildings, and legalisation (by setting adequate criteria and observing them and by respecting the human rights). As for the second objective, the measures refer to removal of architectural barriers (curbstones) to facilitate the movements of disabled people, improvement of the basic infrastructure, particularly in the settlements/neighbourhoods where refugees, displaced persons, and Roma live, improvement of safety and activation of public spaces (i.e. provision of quality amenities in urban areas). 22) Adoption, updating and consistent application of urban plans and other spatial planning docu- ments, also recognised as one of the key areas of action to overcome the problems of urban develop- ment, is included and discussed as a priority objective in the section on spatial planning (Chapter 5.2.7). 59 6. DEVELOPMENT OF THE PARTICIPATORY PLANNING PROCESS

6.1 Mobilisation of stakeholders In the process of drafting the NSSD Montenegro, efforts were made to mobilise as wide a number of stakeholders as possible to contribute to formulation of the Strategy and the Action Plan through diverse forms of consultations and public participation. 7RWKDWHIIHFWWKH¿UVWDQGWKHVHFRQGSURMHFWZRUNVKRSVZHUHKHOGDVZHOODVWZR PHHWLQJVRIWKHSURMHFW6WHHULQJ&RPPLWWHH7KHEDVLFGRFXPHQWVWKH¿UVWDQGWKH ¿QDO GUDIW RI WKH 6WUDWHJ\ ZHUH GLVFXVVHG E\ WKH 1DWLRQDO &RXQFLO IRU 6XVWDLQDEOH Development. In the period between August and November 2005, a total of 7 participatory meetings were held covering all the municipalities in Montenegro. Participants included representatives of local authorities, NGOs and other organisations at the level of the local community, professional associations, businesses, the media and other stakeholders. The participatory process was organised and led by the NGO Most and a large number of issues related to sustainable development of Montenegro were discussed. The second round of participation, again organised by the NGO Most, was held in February and March 2006 through three regional conferences. The civil sector, as well as the representatives of local governments, showed great interest and motivation to contribute to the NSSD process. ,Q WKH 166' GUDIWLQJ SURFHVV VLJQL¿FDQW LQYROYHPHQW RI GLIIHUHQW VWDNHKROGHUV was achieved through the composition of the expert team and the advisory forums. :LGH VWDNHKROGHUV LQYROYHPHQW ¿UVW RI DOO UHIHUUHG WR YDULRXV VHJPHQWV RI SXEOLF administration, but also to academics and experts from specialised institutions. The participation of the business community and/or private sector in the so far process was not at the satisfactory level and was mainly limited to the participation of a few business associations in the Steering Committee work and in the process of setting priorities. Few businesses also took part in the participatory process at the local/regional level and at the national workshops. Establishment of on-going dialogue and partnership between the public and the private sector regarding the attainment of NSSD goals is on the other hand essential for successful implementation of the Strategy. :LWKWKLVLQPLQGLQWKHFRPLQJSHULRGLWLVQHFHVVDU\WRPDLQWDLQWKHLQWHUHVWDQGWKH active role of already involved stakeholders, as well as to ensure the inclusion of even ODUJHUQXPEHURIVWDNHKROGHUVDWDOOOHYHOV7KH2I¿FHIRU6XVWDLQDEOH'HYHORSPHQW and the National Council for Sustainable Development have the competencies and the structures needed to contribute to this.

6.2 Participatory planning process 7KH GLVFXVVLRQ GXULQJ WKH ¿UVW URXQG RI WKH SDUWLFLSDWRU\ SURFHVV ZDV RUJDQLVHG LQ VXFKDZD\WRFRYHUGLIIHUHQWWRSLFVLQWKH¿HOGRIHFRQRPLFDQGVRFLDOGHYHORSPHQW and environmental protection/natural resources management, inline with local and regional interests and priorities. The problems present in the considered sectors/topic were examined, as well as the challenges for overcoming them, and the objectives and PHDVXUHVWREHXQGHUWDNHQIRUWKHDWWDLQPHQWRIREMHFWLYHVZHUHGH¿QHG LGHQWLI\LQJ the responsible agencies and timeframe for their implementation). As a result, many detailed and interesting views and proposals were collected and were eventually 61 submitted to the expert team in the form of individual and one summary report (prepared RQWKHEDVLVRIDOOWKHSDUWLFLSDWRU\PHHWLQJVKHOGLQWKH¿UVWURXQG 7KHH[SHUWWHDP endeavoured to integrate the main messages from the participatory process in the First Draft of the Strategy. As was already mentioned in the Chapter 3 - Methodology and Process of Preparation, representation of different stakeholders in the planning process was also ensured with the organisation of round tables in January 2006, where priorities were determined IURP WKH VHW RI JRDOV DQG REMHFWLYHV HQFRPSDVVHG LQ WKH ¿UVW GUDIW RI WKH 6WUDWHJ\ Besides the members of the expert team, the members of the Steering Committee and the representatives of the participatory process organised at the local level have also had the possibility to give their contribution in setting priorities. The second round of the participatory process - the three regional conferences - focused RQFRPPHQWLQJWKH¿UVW166'GUDIWDQGUHFRPPHQGLQJPHDVXUHVIRUWKHDFKLHYHPHQW of priority goals/objectives. The views of participants to the regional conferences were also submitted to the expert team through the participatory process co-ordinator - NGO Most. The expert team considered these comments and recommendations in drafting WKH$FWLRQ3ODQDQGUHYLVLQJWKH¿UVWGUDIW The expert team made an attempt to integrate as much as possible the recommendations and comments received from different sources (national workshops, individual members of the expert team, round table discussions held in January, participatory process and the sessions of the Steering Committee and the National Council for 6XVWDLQDEOH'HYHORSPHQWDQGRWKHUV ZKHQGHYHORSLQJWKHVHFRQG¿QDO166'GUDIW and the Action Plan (which comprises an integral part of the Strategy).

6.3 Access to information and communication policy The information on NSSD Montenegro has been communicated to the participants in the process through several channels. Promotional materials with key massages of the process were prepared in August 2005 and were disseminated to the participants and other interested parties. NGO Most set up a web site (www.nsor.info) where diverse information on the process was available. Several press conferences were also held, and the participants were also informed on the progress through regular monthly reports. In addition, all the other available information relevant for the process was exchanged among the participants as needed. At the meetings of the MCSD held during the NSSD drafting process and at the XIV regular session of the signatory parties to the Barcelona Convention, MEPPP informed, through formal and informal contacts, the MAP member states on the progress made in drafting the Montenegrin Strategy. MEPPP regularly exchanged information on the drafting process with the international partners who supported the process (this, among others, includes the Stocktaking Report that the MEPPP submitted to UNEP/MAP in October 2005) In the implementation phase, it is important to ensure further exchange of information among all the interested parties and to further enhance of the communication policy. 7KH PRVW VLJQL¿FDQW IRUXP IRU WKH H[FKDQJH RI LQIRUPDWLRQ DPRQJ WKH DFWRUV LV the National Council for Sustainable Development, particularly when it comes to harmonisation of sectoral policies, plans and strategies with NSSD. The annual 62 SURJUHVV UHSRUWV RQ 6WUDWHJ\ LPSOHPHQWDWLRQ ZKLFK ZLOO EH SUHSDUHG E\ WKH 2I¿FH for Sustainable Development (in co-operation with MEPPP and other relevant ministries and institutions), will be a basic tool for information exchange. The 2I¿FHIRU6XVWDLQDEOH'HYHORSPHQWDOVRQHHGVWRIRFXVRQWKHFRPPXQLFDWLRQZLWK the international partners and ensure a co-ordinated approach of all the segments of administration in the presentation of NSSD in the international contacts. The media FDQDQGVKRXOGJLYHDPRUHVLJQL¿FDQWFRQWULEXWLRQWKDQZDVWKHFDVHLQWKHGUDIWLQJ stage of the document. 63 7. PROCESS OF NSSD MONTENEGRO IMPLEMENTATION Having in mind the so far experiences with dissatisfactory level of implementation of strategic documents, a large number of participants in the NSSD drafting process highlighted the importance of consistent implementation and argued in favour of PHFKDQLVPVZKLFKZRXOGHQVXUHWKDWWKLVGRFXPHQWEHFRPHVDELQGLQJRQH:KLOHWKH factors needed to improve enforcement of laws and policies in general are discussed in Chapter 5.3.1 (Governance and public participation in decision making), during the drafting process it was concluded that the manner in which the NSSD will be DGRSWHGPLJKWVLJQL¿FDQWO\LQÀXHQFHLWVLPSOHPHQWDWLRQ,WKDVEHHQSRLQWHGRXWWKDW it is highly important to secure engagement and coordinated action of all the social actors, primarily those with the executive and legislative powers. Such an approach would enable the achievement of the objectives of sustainable development and full societal recognition of sustainable development.

7.1 NSSD Action Plan and co-ordination of implementation The Action Plan for the NSSD implementation (Appendix 1) gives an overview of priority objectives and measures for their implementation by sector/topic, as well as the link between particular objectives and general NSSD goals. The Action Plan also envisages the timeframes and agencies responsible for implementing the given measures, and indicators to monitor the level of implementation. The basic cycle of LPSOHPHQWDWLRQ PRQLWRULQJ LV D RQH\HDU SHULRG DQG HYHU\ ¿YH \HDUV LW LV SODQQHG WR XQGHUWDNH D GHWDLOHG DVVHVVPHQW RI WKH LPSOHPHQWDWLRQ 7KH ¿UVW 166' $FWLRQ Plan was prepared for the period 2007-2012. The progress achieved in the NSSD LPSOHPHQWDWLRQ ZLOO EH WKH VXEMHFW RI DQQXDO UHSRUWV WR EH PDGH E\ WKH 2I¿FH IRU Sustainable Development (with support from MEPPP and in co-operation with other relevant ministries and governmental agencies and institutions). At the end of the three years to which the Action Plan refers (i.e. in late 2010) a detailed progress report will be made and the changes and amendments to the Action plan for the remaining two years RIWKH¿UVWLPSOHPHQWDWLRQSHULRGZLOOEHGUDIWHG$WKRURXJKUHYLHZRIWKHGRFXPHQW is envisaged for late 2012. The NSSD implementation reports will be discussed at the sessions of the National Council for Sustainable Development and submitted to the Government of the Republic of Montenegro. 2YHUDOO FRRUGLQDWLRQ RI LPSOHPHQWDWLRQ HIIRUWV ZLOO EH WKH WDVN RI WKH 2I¿FH IRU Sustainable Development (in co-operation with MEPPP and other relevant ministries and institutions), which is well positioned to carry out this task given its place in the organisational structure of the Government and the role it plays in the work of the National Council. It is recommended that the key ministries, other governmental agencies and institutions, and public institutions being assigned responsibility for implementation of a large number of NSSD activities, should appoint the contact person WRFRPPXQLFDWHZLWKWKH2I¿FHIRU6XVWDLQDEOH'HYHORSPHQWDQGPRQLWRUSURJUHVVLQ LPSOHPHQWDWLRQ 7KH 2I¿FH IRU 6XVWDLQDEOH 'HYHORSPHQW PD\ JLYH D FRQVLGHUDEOH contribution to improving the inter-sectoral co-ordination, which is one of the preconditions for integration of sustainability requirements into sectoral policies, the HI¿FLHQW166'LPSOHPHQWDWLRQDQGWKHQHFHVVDU\KDUPRQLVDWLRQRIYDULRXVVWUDWHJLF documents. The National Council for Sustainable Development will play an important role in supervising the NSSD implementation and in providing the political support to the process. 65 As was already mentioned, other factors that will contribute to successful implementation are the appropriate adoption of the document, inclusion of a wide range of stakeholders and development of partnerships and co-operation. Changes in the governance approaches and the political will are absolutely critical, since they are a precondition for an effective and co-ordinated collective action necessary for overcoming the existing development imbalances and for guiding the economy and society towards the sustainability.

7.2 Consistency evaluation of NSSD goals and objectives During the Strategy drafting process, consistency evaluation of priority objectives set for different areas was done, as well as evaluation of consistency between the NSSD goals and objectives and other strategic documents. The analysis showed that NSSD tasks mainly supported and reinforced each other. However, some existing and/or potential FRQÀLFWVZHUHLGHQWL¿HGEHWZHHQGHYHORSPHQWWDVNVRIFHUWDLQHFRQRPLFVHFWRUVDQG WKHLUSODQQHGDFWLYLWLHV ¿UVWRIDOOIRUHQHUJ\WUDQVSRUWDQGWRXULVP DQGWDVNVLQWKH areas of nature and biodiversity protection, protection of waters, preservation of space and landscape values, the sea and the coastal zone (which are the components of natural DQGPDQPDGHHQYLURQPHQWWKDWUHSUHVHQWVRPHRIWKHPRVWVLJQL¿FDQWFRPSDUDWLYH advantages of Montenegro). One of major challenges in the implementation of NSSD Montenegro will be to manage WKHVHFRQÀLFWVLQVXFKDPDQQHUWKDWWKHLUUHVROXWLRQZLOOJXDUDQWHHWKHEHVWRXWFRPH in the long-term. The general NSSD recommendation is to apply the sustainability principles (such as preservation of the resources base, equity, transparency, public participation, co-operation and agreement, precaution in case of lack of information), up-to-date mechanisms and international knowledge and skills in managing these FRQÀLFWV 6SHFL¿F UHFRPPHQGDWLRQV DQG PDQQHUV RI WKHLU UHVROXWLRQ DV ZHOO DV WKH steps that need to be undertaken to that effect within certain sectors, are given within respective sectoral discussions. The consistency analysis also revealed synergies between NSSD goals and objectives and other strategic documents. It is particularly important to highlight the existing synergy of the NSSD goals with the Action Plan for EU Accession, Development and Poverty Reduction Strategy23 and Development Directions of Montenegro as an Ecological State. 7KH FRPSDWLELOLW\ DQG V\QHUJ\ KDYH DOVR EHHQ LGHQWL¿HG IRU WKH UHODWLRQ RI 166' goals and the Economic Reforms Agenda. Nevertheless, it has been established that there is a certain difference in the general approach these two documents take, i.e. in the way they treat several issues. Although the Economic Reforms Agenda 2002- 2007 pays considerable attention to the balanced development (including the social and environment-related development factors), the document is primarily focused on the reforms related to the establishment of the market economy24. The NSSD, on the 23) The DPRS set a number of important development and poverty reduction goals for Montenegro and linked them to Millennium Development Goals. 24) Biannual review of the Agenda revealed that the progress of reforms in the environment sector until the beginning of 2005 was one of the slowest. During the past two years, this area was given due attention, already yielding some positive results. Particular attention paid to environment sector re- forms is still necessary, especially in the context of EU integrations and in the light of the fact that the 66 other hand, puts much more emphasis on the environmental issues, issues related to governance and participation, as well as on the issues of promoting knowledge, research and development (which are essential for economic and any other development). Harmonisation of these differences and strategic documents in general is an important task for the coming period that apart from the technical aspects also implies the political choices of development orientations i.e. of the dominant development model. 7KHGHYHORSPHQWRIVHYHUDOVLJQL¿FDQWVHFWRUDOVWUDWHJLHVDQGWKH6SDWLDO3ODQRIWKH Republic is under way. In some of these processes it is evident that efforts are made to integrate the sustainability requirements, and it is crucial to ensure the same approach be taken with the other documents as well. desire for fast economic recovery may in the long run lead to unsustainable trends. 67 8. MONITORING AND EVALUATION OF THE IMPLEMENTATION

8.1 Measuring and assessing the effectiveness of policies and measures Measuring and assessing effectiveness of actions undertaken within the framework of any policy or strategic document is necessary for successful implementation, for two reasons: 1) to enable the assessment of progress in the attainment of set goals (thus providing information for the review of initial goals and measures), and 2) to ensure comparability of the national state of the affairs and trends with other countries. :KHQLWFRPHVWRWKHDVVHVVPHQWRIHIIHFWLYHQHVVRI166'SROLFLHVDQGPHDVXUHVD particular problem in this respect will be the weaknesses of the data collection and processing system in Montenegro in almost all the sectors relevant for NSSD. Further UHIRUPRIWKHVWDWLVWLFVV\VWHPDQGKDUPRQLVDWLRQZLWK(8VWDQGDUGVLQDOOWKH¿HOGVLV thus essential. Another issue is to harmonise the environment monitoring system with the EEA system. The selection of indicators is vital for successful assessment of effectiveness of measures DQGSROLFLHV:KHQGHWHUPLQLQJWKH166'LQGLFDWRUVVHYHUDODVSHFWVZHUHWDNHQLQWR account. Firstly, efforts were made to introduce different kinds of indicators such as process, impact and outcome indicators. Secondly, it was taken into account whether proposed indicators were already compiled/monitored in Montenegro, or whether they could be introduced with relatively small efforts and in a short period of time. The indicators that require long-term changes in the national monitoring and statistical systems were mainly not considered. During the NSSD Montenegro implementation process, the possibilities for obtaining technical assistance to identify and monitor such sustainability indicators, i.e. those that are currently not monitored and which are not easy to derive should be investigated. In order to provide for comparability, MSSD indicators, EU sustainability indicators and MDG indicators (those not covered by the MSSD and which proved relevant for the set goals) were taken as a starting point.  'H¿QLWLRQDQGLPSOHPHQWDWLRQRIWKHPRQLWRULQJSURFHVVDQGLGHQWL¿FDWLRQRI responsible actors The NSSD monitoring process will be implemented in the same way as the overall implementation co-ordination, that is through co-operation of relevant ministries and other government agencies and expert institutions (key agencies responsible for LPSOHPHQWDWLRQRI166'DFWLYLWLHV ZLWKWKH2I¿FHIRU6XVWDLQDEOH'HYHORSPHQW7KH basis for monitoring will be the set of indicators given through the Action Plan, i.e. the set of key indicators derived from this wider set (the key indicators are presented in the Chapter 8.3). The NSSD Action Plan includes certain measures relating to the improvement of the monitoring system (especially regarding the environmental management, energy, ELRGLYHUVLW\ ZDWHUV DLU VSDWLDO SODQQLQJ WKH VHD DQG WKH FRDVWDO ]RQH  DQG GH¿QHV the agencies responsible for the implementation of these activities. Nevertheless, monitoring and evaluation of the NSSD Action Plan 2007 – 2012 will predominantly rely on the existing data sources. %HVLGHVWKHGDWDRIWKHRI¿FLDOVWDWLVWLFDOLQVWLWXWLRQVDQG*RYHUQPHQWDJHQFLHVWKH NSSD monitoring process will also make use of the data of independent research 69 institutions, the private sector, the NGOs and international organisations which monitor DQGJDWKHUFHUWDLQGDWDHLWKHUIRUWKHQHHGVRIVSHFL¿FSURMHFWVRUV\VWHPDWLFDOO\7KHVH GDWDFDQVHUYHDVDVLJQL¿FDQWVXSSOHPHQWWRWKHRI¿FLDOVWDWLVWLFV,QWKHFRPLQJWKUHH years, new research and data collection activities (apart from the regular monitoring and operation of statistical institutions and other sources of information) are not envisaged for the NSSD monitoring needs.

8.3 Indicators for monitoring the NSSD implementation The NSSD Action Plan contains a large number of process indicators attached to certain NSSD measures and/or objectives. In some sectors, the goals and measures KDYHQRWEHHQGH¿QHGDVTXDQWLWDWLYHDQGPHDVXUDEOH ZKLFKLVXQGHUVWDQGDEOHJLYHQ the fact that they relate to certain social processes), therefore some of the indicators are more qualitative than quantitative by their nature. It is also important to mention that some of the indicators involved (especially those to monitor the outcomes of long-term actions) are of a stable nature and that changes in these indicators may not be expected in the short-term. As the time passes, it will be necessary to work on the standardisation of methodologies (since it is possible now to have different data from different sources) and to increase the list of sustainability indicators including those currently unavailable. As was already mentioned, the reform of the statistics system and the EU accession process will have a great impact on both of these factors – the methodology and the types of indicators relevant for NSSD. The key indicators for monitoring and evaluation of the implementation of NSSD general goals are show in Table 8.3-1. Table 8.3-1Key NSSD indicators and the link with general goals NSSD goal Indicator GDP per capita GDP by regions Unemployment rate Contribution of SME to GDP 7UDGHGH¿FLW Foreign Direct Investments and ODA Accelerate economic growth and development, and reduce regional Annual investments in infrastructure development disparities International revenues from tourism Share of beds not located in the coastal region in the total number of tourist beds Public and private expenditures for research and development Energy consumption per capita Energy consumption per GDP unit (total and by sector) Share of energy generation from renewable sources in the total energy generation 70 Poverty rate and inequality indicators (Gini FRHI¿FLHQWGHFLOHUDWLR WRWDODQGE\UHJLRQV and vulnerable groups Enrolment rate in primary school Reduce poverty; ensure equitable Literacy for15 – 24 age group access to services and resources Infant mortality rate Children under 5 mortality rate :RPHQXQHPSOR\PHQWUDWH Percentage of the territory protected to preserve biodiversity Area of marine protected areas and coastal zone :DWHUFRQVXPSWLRQSHUFDSLWD Share of wastewater being treated (QVXUHHI¿FLHQWSROOXWLRQFRQWURO and reduction, and sustainable Territory under forests management of natural resources Tourism density at the coast CO2 emissions per capita Consumption of substances damaging for the ozone layer Improve governance system and Share of tax revenues of local governments public participation; mobilise all expressed as the share of total tax revenues stakeholders, and build capacities at all levels 71 9. FINANCING OF THE NSSD PROGRAMME

9.1 Financing sources and cost estimate for NSSD implementation /RZ*'3VXEVWDQWLDOSUHVVXUHVRQSXEOLFVSHQGLQJORZ¿QDQFLDOUHVRXUFHVDYDLODEOH to local governments, etc. are but a few of the factors limiting the possibility for more VLJQL¿FDQW¿QDQFLDOVXSSRUWWR166'LPSOHPHQWDWLRQIURPWKHSXEOLFVHFWRU)LQDQFLDO strengthening of local governments is an important task in the coming period, since WKHIXO¿OPHQWRIDODUJHQXPEHURIVXVWDLQDEOHGHYHORSPHQWREMHFWLYHVLVOLQNHGWRWKDW level. 7KHUHGLVWULEXWLRQRIHFRQRPLFEHQH¿WVDQGVWDWHLQWHUYHQWLRQLQRUGHUWRHQVXUHWKH protection of disadvantaged categories of the population and equal access to services (as well as their quality) such as education, health care and social protection is also necessary. At the same time, an attempt should be made to rationalise relatively high expenditures these sectors currently have. The implementation of the ‘polluter pays’ principle as the fundamental principle of sustainable development and environmental policy through better application of economic instruments and earmarking of generated revenues is one of the possible ways to ensure the increase of funding for the environmental protection. In the past, WKHVKDUHRIHQYLURQPHQWDOH[SHQGLWXUHVLQ*'3ZDVYHU\ORZDQGWKHLUVLJQL¿FDQW increase is particularly necessary in the context of the Stabilisation and Association process. Funding of environmental protection projects and programmes by the industry and the private sector is very low due to the lack of economic incentives, poor enforcement of OHJLVODWLRQDQGGLI¿FXOW¿QDQFLDOVLWXDWLRQ7KHSURPRWLRQRIVXVWDLQDEOHGHYHORSPHQW DV D IDFWRU FRQWULEXWLQJ WR HFRQRPLF HI¿FLHQF\ LV WKXV YHU\ LPSRUWDQW DV ZHOO DV stimulating social and economic responsibilities of the private sector and the application of the ‘polluter pays’ principle. (I¿FLHQW HQIRUFHPHQW RI UHJXODWLRQV DQG DSSOLFDWLRQ RI PDUNHW PHFKDQLVPV PD\ stimulate the change of behaviours, that is to bring about the establishment of public- private partnerships and investments into protection measures, cleaner production and new technologies, which is particularly important with large industrial plants that are recognised as the main polluters. These facilities are either privatised or are expected to EHSULYDWLVHGVRRQ .$36WHHO:RUNV1LNãLü7KHUPDO3RZHU3ODQW3OMHYOMD 5HDOLVWLF HQHUJ\DQGZDWHUSULFHVPD\DOVRSOD\DVLJQL¿FDQWUROHIRUWKHUDWLRQDOXVHQRWRQO\LQ the business sector, but also in households. 2I¿FLDO'HYHORSPHQW$VVLVWDQFH2'$ QHWDPRXQW GURSSHGIURPRI*'3LQ to below 1% in 2003, i.e. from 83 to 23 USD per capita25. In order to attain sustainable development goals in Montenegro it is necessary to continue with the implementation of activities that will create the conditions for further ODA growth. At the same time, it is necessary to provide for better co-ordination of international development aid and to use it in the most effective and sustainable way. Of particular importance is to gain access to the EU funds in the framework of the Stabilisation and Association Process. Foreign Direct Investments have a positive trend, although their level is still considerably below the level needed for accelerated economic recovery. 25) Primary source: UNDP/ISSP – Human Development Report; secondary source: Ministry of Fi- nance 73 7KH PHDVXUHV FRQWDLQHG LQ WKH 166'$FWLRQ SODQ FDQ EH FODVVL¿HG LQWR ¿YH PDLQ FDWHJRULHVDFFRUGLQJWRWKHVRXUFHVRI¿QDQFHPHDVXUHVZKRVHLPSOHPHQWDWLRQFDQ EH¿QDQFHGIURPWKHH[LVWLQJEXGJHWPHDVXUHVWKDWFDQEHLPSOHPHQWHGWKURXJKEHWWHU coordination of activities in the public administration, measures that can be offered WRGRQRUVIRU¿QDQFLQJPHDVXUHVWKDWFDQEHLPSOHPHQWHGWKURXJKWKHSDUWQHUVKLSV between the public and the private sector, and measures that represent an additional cost of Strategy implementation. Having in mind that the state budget will not be DEOH WR ¿QDQFH WKH RYHUDOO 166' LPSOHPHQWDWLRQ DSDUW IURP WKH GRQRU DVVLVWDQFH ERUURZLQJ PLJKW UHSUHVHQW DQ DGGLWLRQDO VRXUFH RI ¿QDQFH UHVSHFWLQJ WKH DGHTXDWH criteria on the management of the existing and taking new loans. In order to implement the Sustainable Development Strategy, it is necessary to provide the funds that will ensure implementation of measures projected in the Action plan, that is, the state budget should be structured in such a way that it supports NSSD implementation. In this way, a framework will be created that will give clear guidelines to the donors and the private sector, whose participation is very important in NSSD implementation. Starting from the analysis26 of the budget structure27, the NSSD Action plan was analyzed in order to estimate the funds necessary for its implementation. However, VXFK DQ DVVHVVPHQW FRXOG QRW EH DFFHSWHG DV VXI¿FLHQWO\ UHOLDEOH DQG DV D FUHGLEOH analysis that gives guidelines for the planning of the amount and structure of the budget WKDWZRXOGVXSSRUWHI¿FLHQWLPSOHPHQWDWLRQRIWKH166'$FWLRQSODQLQWKHXSFRPLQJ ¿YH\HDUSHULRG28, but it gave important recommendations for the implementation of measures from the NSSD Action plan. The Analysis consisted of the assessment of the expenditure side of the budget29 that HQDEOHV LGHQWL¿FDWLRQ RI H[SHQGLWXUHV LQYHVWPHQWV DQG SURJUDPV  WKDW FRQWULEXWH to sustainability30 GH¿QLWLRQ RI LWV VWUXFWXUH DQG DVVHVVPHQW RI VXVWDLQDELOLW\ RI WKH 26) The state budget fro 2004 and 2005 has been analyzed. The 2006 budget could not be analyzed, as the report on its execution will be prepared only in early 2007., and the 2007 budget could not be analyzed because it was in the preparatory phase when the Analysis was made. The Analysis of use of funds was done at the level of the eco- QRPLFFODVVL¿FDWLRQRIH[SHQGLWXUHV7KHVKDUHRISDUWLFLSDWLRQRILQGLYLGXDOEXGJHWDU\XVHUVLQWKHEXGJHWZDV analyzed; an assessment was made only about the budgetary expenditures, without taking into consideration the consumption from other sources (local budgets, donations). 27) Due to the lack of data on GDP and its distribution, as well as the changes in some other macroeconomic indicators, the state budget was used as a basis for the analysis. 28) There are numerous factors that caused unreliability of the prepared analysis: budget planning is not pro- gram planning; the Action plan has been prepared at the level of measures that need to be elaborated to the level of projects and activities in individual sector strategies, which have either not been prepared or they do not con- WDLQ¿QDQFLDOHVWLPDWHVODFNRIVWDWLVWLFDOGDWDHWF 29) From that aspect, the Ministry of Finance uses most of the budgetary funds, having in mind that this ministry KDVH[HFXWHGRUDOPRVWPLOOLRQ(85RIWKHWRWDOEXGJHWDU\H[SHQGLWXUHVIRU6XFKDODUJH¿QDQFLDO RXWÀRZKDVEHHQFDXVHGE\WKHDPRXQWRILQWHUHVWVWKDWWKHPLQLVWU\SD\VRQWKHH[LVWLQJGHEW LQWHUHVWUHSUH- VHQWHGRYHUSIWKHH[SHQGLWXUHVRIWKHPLQLVWU\IRU $VLJQL¿FDQWVKDUHRIWKHEXGJHWDU\H[SHQGLWXUHV – 15.22% went to the Ministry of education and science. The Ministry of labor and social welfare and the Min- istry of Interior have executed 9% and 8% of the total budget respectively. The Pension fund - 8,44 %, and the Ministry of Defense 7, 4 %. Other ministries and agencies have executed around or below 4% of the budgetary H[SHQGLWXUHVZKHUHDVWKHVKDUHRIH[SHQGLWXUHVLQWKH¿HOGRIHQYLURQPHQWLQWKHRYHUDOOEXGJHWDU\H[SHQGLWXUHV represented 0.18%. 30) A number of budgetary activities are already supporting the sustainable development of the country. These are, primarily, the activities to improve the knowledge and research activities, activities that support art and cul- ture, primary, secondary and university education, as well as adult education, activities to protect and improve the environment, activities to increase the living standard of the individual social groups, social activities and activities aimed at providing equal opportunities, individual activities related to sustainable transport, forestry and KHDOWKDVZHOODVWKHDFWLYLWLHVWR¿JKWFRUUXSWLRQ 74 current budgetary expenditures. The following recommendations have been derived from the analysis: x The Government should secure program planning of the budget that will support strategic priorities; x The Government should ensure increase in budgetary expenditures that support sustainable development31 and increase of the currently low level of LQYHVWPHQWLQWRHQYLURQPHQWDOSURWHFWLRQEHFDXVHWKHUHLVDVLJQL¿FDQWVKDUHRI expenditures in the budget that do not contribute to sustainable development; x Government ministries should improve coordination in the implementation of YDULRXVVHFWRUVWUDWHJLHVDQGLPSOHPHQWDWLRQRIPHDVXUHVGH¿QHGLQ166' x It is necessary to undertake continuous monitoring and evaluation, with continuous improvement of the Action plan measures. Introduction of the program planning of the budget would have positive effect on WKH HI¿FLHQF\ LQ WKH XVH RI IXQGV DV ZHOO DV RQ WKH LPSOHPHQWDWLRQ RI FRQWLQXRXV monitoring and evaluation. Having in mind that the concept of sustainable development HQDEOHV XQL¿FDWLRQ RI HFRQRPLF VRFLDO DQG HQYLURQPHQWDO DVSHFWV RI GHYHORSPHQW VSHFLDOFDUHVKRXOGEHJLYHQWRWKHLQFUHDVHLQHI¿FLHQF\RIWKHDGPLQLVWUDWLRQWKURXJK coordinated action of the various ministries in the implementation of sector plans and projects, which will require planning in the state budget of the integral programs for several sectors/ several budget users. It is also necessary to evaluate and adjust the existing and new sector strategies with NSSD. +DYLQJLQPLQGDOOWKHPHQWLRQHGVRXUFHVDQGUHFRPPHQGDWLRQVIRU¿QDQFLQJRI166' implementation, it will be necessary to secure the following: x 3HUPDQHQW166'¿QDQFLDOPRQLWRULQJ32 in order to secure maximum rationality of expenditures, i.e. to achieve, with minimum investments, the expected EHQH¿WVLQDFFRUGDQFHZLWKWKHREMHFWLYHVRIWKH6WUDWHJ\ x 7KH *RYHUQPHQW VKRXOG DOORFDWH UHVRXUFHV ¿QDQFLDO UHVRXUFHV DQG SHRSOH  for the development of projects for donors, connecting this process with the highest level of state administration. The body that would be responsible for SURMHFWGHYHORSPHQWVKRXOGGH¿QHWUDQVSDUHQWSURFHGXUHVIRULGHQWL¿FDWLRQRI projects and their proposal (they should be open to ministries, agencies, NGO’s and other stakeholders) and assess their quality. These procedures must also be established in order to create the conditions for the implementation of projects of the highest importance at the national level, which, at the same time, secure the integration of the social and economic development and environmental protection; x The Government should intensify the efforts to prepare and monitor the projects that can be implemented in the form of public-private partnership. It is also necessary to secure adequate mechanisms for the prioritization and coordination of implementation of these projects. 31) 6KDUHRIH[SHQGLWXUHVLQWKHEXGJHWZLWKDSRWHQWLDOO\SRVLWLYHLQÀXHQFHRQWKHDFKLHYHPHQWRIWKHVXV- tainable development objectives was 43.82% in 2005. In 2005, as compared to 2004, the share of expenditures ZLWKDSRWHQWLDOO\SRVLWLYHLQÀXHQFHIHOOE\DOPRVWZKLOHWKHH[SHQGLWXUHVWKDWKDYHQRFOHDULQÀXHQFHKDYH increased by approx. 1%. Having all this in mind, the future budgetary structure should be changed in order to ensure NSSD implementation. 32) Result indicators should be monitored at the level of each individual ministry, and the remaining LQGLFDWRUVDWWKHOHYHORIWKH2I¿FHIRUVXVWDLQDEOHGHYHORSPHQWWKDWLVWKH*RYHUQPHQWRIWKH5HSXE- lic of Montenegro. 75

APPENDIX 1 – ACTION PLAN Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Further development and implementation of ± *RYHUQPHQWRIWKH instruments of credit and fiscal policy in order to Republic of Montenegro; develop the service sectors Ministries of Finance, 7RXULVP0DULWLPHDQG 6KDUHRIWRXULVPLQ*'3 7UDQVSRUWDWLRQ&HQWUDO Bank and commercial Size of naval fleet Stimulate the development banks of service economy $WWUDFWLRQRIIRUHLJQGLUHFWLQYHVWPHQWV ± 0LQLVWU\RI)RUHLJQ *'3SHUFDSLWD (tourism, maritime Economic Relations and transport, etc) European Integration; 7UDGHGHILFLW LQDEVROXWH Agency for the Promotion WHUPVDQGDVRI*'3  (general goal 1) of Foreign Investments /RQJWHUPSODQIRUUHYLWDOLVDWLRQDQGLQFHQWLYHV ± 0LQLVWU\RI0DULWLPHDQG for naval industry and its phased implementation 7UDQVSRUWDWLRQ Stimulating entrepreneurship, SME development /RFDOVHOIJRYHUQPHQWV SME participation in (especially in tourism and agriculture), self- especially from the tourism and agriculture, employment and employment; priority should be ± northern region; by regions given to the northern region (programmes: Directorate for SME Programme for continuous stimulation of Development; Number of employees in employment and entrepreneurship, Banking Development Fund; Fund SMEs (in agriculture and sector support, Incentives for dynamic for the Development of tourism, and by regions) entrepreneurship, Fund for Diaspora, Increase 1RUWKHUQ5HJLRQ )256 in competitive capacities of local producers, Montenegro); Employment SMEs contribution to Incentives for the successful ones, etc.) Agency; Ministry of *'3 7RXULVPDQG Environmental Protection; *'3E\UHJLRQV SME development and MAFWM increase of employment; Development of human resources /RFDOVHOIJRYHUQPHQWV Number of highly priority is the northern ± Employment Agency; educated persons by 0LQLVWU\RI+HDOWK/DERXU regions region, i.e. the development 77 and Social Welfare Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Quality execution of the programme budget of the ± 0LQLVWU\RI7UDQVSRUW Percentage of the budget Ministry of Transport, Maritime and Maritime and allocated for construction 78 Telecommunications, based on short term and Telecommunications of transport long term plans of the individual sectors (with the Ministry of Finance infrastructure; aim to better maintain the existing and invest into Transport Directorate Kilometres of asphalt new infrastructure) layer and m2 of covered road holes; Number of hours of interruptions on state roads due to Improvement of infrastructure problems transportation connections, Co-operation with international financial ± 0LQLVWU\RI7UDQVSRUW Constructed km of roads especially in the northern institutions and provision of support for the Maritime and construction of highways (priority: highway/ Telecommunications Constructed km of region, through better SDUWVRIWKHKLJKZD\3RGJRULFD±ERUGHUZLWK Transport Directorate highways and regional maintenance of the existing Serbia) and reconstruction of regional and main roads and construction of new roads infrastructure; development Provision of financial and economic relieves for 2007 -2009 Ministry of Transport, Goods transported by of combined transport combined transport, mainly through the support to Maritime and railway railway and maritime transport Telecommunications Reloaded goods in the Railway of Montenegro port of Bar Port of Bar JHQHUDOJRDO Protection of road infrastructure from further 2007 -2008 Ministry of Transport, degradation caused by overweight freight vehicles Maritime and Telecommunications Transport Directorate Crnagoraput Strengthening the process of implementation of  0LQLVWU\RI7UDQVSRUW Number of traffic the legal framework in the field of safety and Maritime and accidents security of transport and increase in efficiency of Telecommunications control in accordance with the legal regulations Ministry of Interior and and international standards for all types of Public Administration transport Transport Directorate Department for Maritime Full integration of Safety Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) environmental requirements Familiarisation of all the participants in transport 2007 -2008 Ministry of Transport, Training programmes for in the development of sector with the EU norms related to environmental Maritime and all the participants in infrastructure projects and protection; preparation of the plan for phased Telecommunications transport in the adoption of introduction of the EU standards related to motor Ministry of Tourism and vehicles Environmental Protection EU standards for motor regulations in the field of Transport Directorate vehicles are applied transport; reduced pollution Department for Maritime from transportation and Safety increased transportation Increase the efficiency of technical control of 2007 -2008 Ministry of Transport, safety vehicles Maritime and Telecommunications Ministry of Interior and Public Administration Adopt the best international standards that define 2007-2008 Ministry of Transport, (general goal 3) the guidelines for feasibility studies in the Maritime and transport sector with the aim of protecting the Telecommunications environment Ministry of Tourism and Environmental Protection Transport Directorate Department for Maritime Safety Strengthen the organisational and physical 2007-2008 Ministry of Transport, Number of capacities for the protection of sea from pollution Maritime and environmental accidents from ships in accordance with international Telecommunications RQWKHVHD±RSHUDWLRQDO agreements (MARPOL Convention and other Ministry of Tourism and pollution from ships relevant agreements) Environmental Protection Department for Maritime Safety PE Morsko dobro (coastal zone management) 79 80 Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Increasing the level of environmental protection in 2007-2008 Ministry of Transport, Number of ports Maritime and environmental accidents Telecommunications in ports Ministry of Tourism and Environmental Protection Department for Maritime Safety PE Morsko dobro (coastal zone management) Ports, shipyards, marinas Preparation of pilot projects for locations Directorate for the identified in development studies; priority to be 2007 - 2010 Development of SMEs given to projects that create a tourist product Ministry of Tourism and based on sustainable use of natural resources, i.e. Environmental Protection on minimising negative effects on environment Private sector International organisations Share of number of beds NGOs that are not located in the Diversification of tourist Establishment of tourist organisations in Local self-governments coastal zone in the total offer (development of municipalities that still don't have them; 2007 - 2010 Tourist Organisation of number of tourist beds village, agro-, eco-, establishment of regional tourist organisations Montenegro Tourism density along mountain, cultural, sports the coast (expressed, for Establishment of associations of tourism Tourism companies and other forms of tourism, companies in order to plan joint appearances in 2007 - 2010 Ministry of Tourism and example, as a ratio especially in the northern the tourism fairs and organise other forms of Environmental Protection between the surface of part of the Republic) in informative and promotional activities in order to National and local tourist coastal area and number support of the extension of attract tourists of higher purchasing power organisations of daily tourists) tourist season and attraction (especially foreign ones) of guests with the higher Provision of funds and credit lines for Ministry of Tourism and International revenues purchasing power (the final implementation of projects 2007 - 2010 Environmental Protection from tourism aim being increase of direct Commercial banks Foreign investors Total investments in Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) and indirect revenues from Implementation of media campaign on ± Tourist organisations tourism tourism) possibilities and importance of development of (continuously) N Os tourism in rural areas according to the principles RIVXVWDLQDEOHGHYHORSPHQW±GLYHUVLILFDWLRQRIWKH tourist offer and development of other JHQHUDOJRDO  complementary forms of tourism (GXFDWLRQRIVWDII ± Ministry of Education and (continuously)Science Ministry of Tourism and Environmental Protection Tourist industry Centre for ocational Training, scientific- educational institutions, international partners Adoption and implementation of the principles ± Ministry of Tourism and and guidelines that define sustainable (continuously) Environmental Protection Integration of sustainability development of tourism, in accordance with good National Council for criteria in sanctioning international practice and standards (starting Sustainable Development tourism development point are UN TO principles of sustainable projects (i e for the tourism) adoption and assessment of Review of the Master plan for tourism 2007 Ministry of Tourism and Revised document development in Montenegro and its harmonization Environmental Protection adopted plans), especially when it with the principles of sustainable development Local and international comes to coastal and winter e perts mountain tourism N Os Consistent implementation of impact assessment ± Ministry of Tourism and uality of impact (general goal 3) in the implementation of big development projects (continuously) Environmental Protection assessment studies (especially in order to protect biodiversity and Local self-governments sensitive eco-systems, accessibility of space on Private sector investors 81 the coast and protection of the authentic PE Morsko dobro (coastal appearance of the coast and the coastal region) zone management), e pert institutions Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) 82 and indirect revenues from Implementation of media campaign on ± Tourist organisations tourism tourism) possibilities and importance of development of (continuously) N Os tourism in rural areas according to the principles RIVXVWDLQDEOHGHYHORSPHQW±GLYHUVLILFDWLRQRIWKH tourist offer and development of other JHQHUDOJRDO  complementary forms of tourism (GXFDWLRQRIVWDII ± Ministry of Education and (continuously)Science Ministry of Tourism and Environmental Protection Tourist industry Centre for ocational Training, scientific- educational institutions, international partners Adoption and implementation of the principles ± Ministry of Tourism and and guidelines that define sustainable (continuously) Environmental Protection Integration of sustainability development of tourism, in accordance with good National Council for criteria in sanctioning international practice and standards (starting Sustainable Development tourism development point are UN TO principles of sustainable projects (i e for the tourism) adoption and assessment of Review of the Master plan for tourism 2007 Ministry of Tourism and Revised document development in Montenegro and its harmonization Environmental Protection adopted plans), especially when it with the principles of sustainable development Local and international comes to coastal and winter e perts mountain tourism N Os Consistent implementation of impact assessment ± Ministry of Tourism and uality of impact (general goal 3) in the implementation of big development projects (continuously) Environmental Protection assessment studies (especially in order to protect biodiversity and Local self-governments sensitive eco-systems, accessibility of space on Private sector investors the coast and protection of the authentic PE Morsko dobro (coastal appearance of the coast and the coastal region) zone management), e pert institutions Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Harmonisation of policy and regulations in the 2007 - 2010 MAFWM New regulations adopted Provision of a stable and field of fishery with the EU Common Fishery EC programmes good-quality food offer Policy; strengthening of capacities for through the increase in development of fishery competitiveness of local Increased budgetary support (in relation to the ± Government of RoM Share of total state scope, as well as in relation to effectiveness) to (continuously) support to the producers and sustainable the development of agriculture and fishery, development of management of resources especially for young producers agriculture in GDP(increased) Share of the agricultural (general goals 1 and 3) budget in the total budget (increased) Providing for a better access to credit funds for ± MAFWM Number/scope of producers in primary agriculture and fishery (continuously) Directorate for SME modernised food Development production facilities Commercial banks Establishment of business connections among ± MAFWM Presence of agricultural farmers (co-operatives and other forms) in order (and onwards) Association of agricultural products from individual to eliminate shortcomings of the small scale producers holdings on the market production (economy of scale) Co-operatives Expert services Development of agricultural market infrastructure ± MAFWM Agricultural stock and strengthening of the vertical integration of (continuously) Associations of food exchange established primary agriculture and processing industry processors International organisations Licensing of buyers Attraction of foreign capital to the sector of food ± Agency for the Attraction Level of foreign production and support to investments into (continuously) of Foreign Investments investments into processing facilities and distribution channels Directorate for SME agriculture Development 83 68 Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Construction and continuous improvement of the ± MAF M uality standards 84 food safety control system (and onwards) - Responsible introduced inspections - Laboratories System for products (veterinary, phyto- traceability introduced sanitary, mil laboratory) Administration trained Ministry of ealth, Labor and Social elfare EC programmes (TAIE and twinning) Development of organic agriculture (improved ± MAF M Organic production legal and institutional framewor , vocational (and onwards) Certification Agency certified training, incentives) (Monteorganica) Presence of organic International organisations products in the mar et E pert services (especially in the tourist offer) Promotion of specificity of Montenegrin food ± MAF M Presence on international production (high value and specific products, (and onwards) Directorate for SME and national fairs and products with protected geographic origin, Development e hibitions products of organic agriculture, etc ) Associations of producers and processing companies Tourist organisations Preparation of guidelines manuals for integration 2008 - 200 MAF M rochures manuals of environmental protection (protection of waters, E pert institutions ( io- prepared agricultural land, fish, biodiversity, and genetic technical institute) resources) into the technological development of International organisations agriculture and processing industry, and EC programmes promotion of good practice of the EU countries N O sector Provision of special support to the areas where ± MAF M Strategy for rural wor ing and production conditions are aggravated (and onwards) Secretariat for development prepared, Development and less favoured areas International organisations identified EC programmes Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Improvement of living conditions in rural areas ± MAFWM Investments into village through improvement of village infrastructure (and onwards) Secretariat for roads and water supply Rural development and Development systems provision of adequate living International organisations EC programmes Accessibility of schools standard for the rural Local communities population Promotion of traditional and sustainable ± MAFWM production technologies, as well as maintenance (continuously) Associations of producers JHQHUDOJRDOVDQG  of aesthetic and tourism development functions of International organisations landscapes in agricultural areas Local communities Diversification of economic activities and sources ± 0$):0 Number of programs for of revenues in rural areas, with special emphasis Ministry of Tourism development of agro- on various forms of tourism Secretariat for tourism Development Directorate for SME Development Local communities Preparation of the annual Action Plan for the annually Ministry of Economic implementation of the Energy Efficiency Strategy Development Rational use of electricity Office for Energy with the increase of at least Efficiency /RVVHV  LQWKH LQHQHUJ\HIILFLHQF\E\ Reduction of technical and commercial losses in  0LQLVWU\RI(FRQRPLF transmission and Development distribution networks LQFRPSDULVRQWR all the segments of electrical power sector (3&*$'1LNãLü Promotion and implementation of projects for ± Ministry of Economic Final energy JHQHUDOJRDOVDQG  increase in energy efficiency in the public sector (and onwards) 'HYHORSPHQW±2IILFHIRU consumption per capita (e.g. public lighting system, schools, hospitals, Energy Efficiency administration) and in households Final energy and Establishment of energy related data base, which 2007 Ministry of Economic electricity consumption 85 would be consistent with EUROSTAT system of 'HYHORSPHQW±2IILFHIRU per GDP unit presentation of national energy data Energy Efficiency (total and by sectors) Provision of incentives (institutional and Ministry of Economic financial) for implementation of programs of ± Development energy efficiency (and onwards) 86 Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Adoption of the Energy Sector Development 2007 Ministry of Economic Strategy of the Republic of Montenegro until Development 2025 and preparation of the Action Plan for its Reduction in energy import implementation dependence through Creation of legislative, institutional, financial and ± overnment of RoM optimal use of available regulatory framewor for greater participation of (and onwards) Ministry of Economic Data on production, national resources and with the private sector and larger investments in Development imports and energy priority to utilisation of sustainable development of the energy sector, Regulatory Energy Agency consumption from the with simplification of the procedures for the Energy alance Sheets renewable sources of RoM issuance of adequate permits Maintenance, revitalisation and modernisation of ± overnment of RoM (general goal ) the e isting and construction of new infrastructure (and onwards) (3&*$'1LNãLü for the needs of production and use of energy Share of energy Providing for the operation of the electrical power ± Ministry of Economic produced from renewable system according to mar et principles with the (and onwards) Development sources in the total introduction of tariffs that would reflect real costs Regulatory Energy Agency energy production (3&*$'1LNãLü armonisation of national legislation in energy ± Ministry of Economic sector with the EU legislation (and onwards) Development Price of electricity by Creation of preconditions for greater use of ± Ministry of Economic different sectors renewable energy sources, combined production (and onwards) Development of electricity and heat (C P) and use of fossil fuels with clean technologies; analysis of Subsidies for socially possibilities for the implementation of projects vulnerable population within the Clean Development Mechanism groups defined (CDM) of the yoto Protocol Ensuring energy availability to all the population 2007 overnment of RoM groups (determining the energy pricing and tariff Ministry of Economic policies and preparation of programmes for Development subsidising socially most vulnerable population groups) Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) E change of information and dialogue between 2007 - 200 Ministry of Economic the public sector and industry about the Development obligations specified in the newly adopted and Ministry of Tourism and planned laws on environment in the conte t of EU Environmental Protection integration (especially the IPPC law); preparation Industrial companies and of plans for gradual implementation of EU business associations standards International organisations Implementation of obligations from the IPPC law 2008 - 200 Industrial companies Number of applications (obtaining integrated permit, monitoring and Ministry of Tourism and number of integrated harmonisation of emissions with the standards) Environmental Protection permits issued Implementation of the polluter pays principle ± 0LQLVWU\RI7RXULVPDQG Collected financial in industry Environmental Protection resources MAF M Eco-fund ater Administration Encourage and stimulate business sector ± 0LQLVWU\RI(FRQRPLF Number of companies (especially industrial companies) to introduce Development that implement one of voluntary mechanisms for improvement of Ministry of Tourism and these instruments ,PSURYHPHQWRILQGXVWU\¶V environmental performance (EMAS, ISO Environmental Protection environmental performance standards, environmental label) usiness associations Analysis of possibilities for the development of 2007 - 20 0 Ministry of Economic ( eneral goal 3) incentives for introduction of cleaner and more Development energy-efficient technologies and implementation Ministry of Tourism and of feasible solutions (possible forms of incentives Environmental Protection subsidies, soft loans, ta relieves) Ministry of Finance Further development and implementation of the 2007 - 2008 Industrial companies (big system of water recycling in industrial plants water consumers) MAF M Ministry of Tourism and Environmental Protection 87 University Clean-up of the past pollution by the state 2007 - 20 0 overnment of RoM REOLJDWLRQVDFFHSWHGIRUWKHDOXPLQLXPSODQW± AP, and for the mining tailings in Moj ovac and Pljevlja) 88 Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Preparation of the strategy for development, 2007 - 2008 Ministry of Education and Strategy adopted innovations and technology Science Ministry of Economic Development Secretariat for Development Creation of economic instruments (compensations 2007 - 2009 Ministry of Tourism and and subsidies for new projects, improvement of Environmental Protection technologies, patents) which would stimulate Ministry of Economic research and development Development Number of patented University research results Stimulating research, Investing in reform of technological education to ± University develop human resources for introduction and (continuously) Ministry of Education and Public and private development and implementation of new technologies Science expenditures for research innovations and development State support in the initial phases of transition to  0LQLVWU\RI(FRQRPLF «clean technologies» through: Development - Technical assistance, demonstration projects Ministry of Tourism and Participation of SMEs *HQHUDOJRDOVDQG and training; and Environmental Protection and private sector in - Establishment of the Centre for Cleaner Ministry of Education and financing the research Technologies Science University Participation in International organisations international research Increased financing of research and innovations  %XVLQHVVVHFWRU funds and projects by SMEs and by the industrial sector Increase in budgetary funds for scientific and ± *RYHUQPHQWRI5R0 research work and development University Mobilisation of international resources through ± Ministry of Education and securing part of the funds for participation in (continuously) Science international projects University Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Definition of the networ of nature protected 2007 - 20 0 Ministry of Tourism and 3URMHFWLRQLQWHJUDWHGLQ DUHDV±SURMHFWLRQV Environmental Protection the SP RIPN Faculty for iology Natural Museum; Institute for Marine iology; io- technical Institute; Increase national nature Municipal secretariats departments for protected areas to 0 of environmental protection the territory and protect at N Os least 0 of the coastal Designation of new protected areas to achieve 2008 - 200 Ministry of Tourism and Percentage of protected zone by 200 ; in identifying 0 of the territory of the Republic (priorities Environmental Protection territory protected areas, European 133URNOHWLMHUHJLRQDOSDUNV.RPRYLDQG%LRþ, RIPN classification of habitats MagliüDQG9ROXMDN  Municipal secretariats significant for protection departments for purposes (EMERALD, environmental protection 1DWXUD VKRXOGEH Faculty of iology; used, ma ing sure that all Institute for Marine the representative iology; N Os ecosystems are included Designation of 0 of the coastal zone territory 2008 - 200 Ministry of Tourism and Percentage of protected DVSURWHFWHGDUHD SULRULWLHV7LYDW¶V6ROLODDUHDV Environmental Protection territory in the coastal LQWKHPXQLFLSDOLW\RI8OFLQM6RODQDâDVNR PE for coastal zone zone JHQHUDOJRDO  /DNH.QHWHDQG$GD%RMDQD%XOMDULFD  management (Morsko designation of protected areas in the sea (zones by dobro 3ODWDPXQL2OG8OFLQMDQG.DWLüLLVODQGV  RIPN Municipal secretariats departments for environmental protection Institute for Marine 89 iology; N Os Priority objectives Measures Deadlines Responsible agencies Indicators 90 (relationship with general goal) Establishment of managers for all the nature ± 0XQLFLSDOVHFUHWDULDWV 0DQDJHUVIRUSURWHFWHG protected areas and development of adequate departments for areas established human resources environmental protection 0LQLVWU\RI7RXULVPDQG Environmental Protection Establish an efficient PE for coastal zone V\VWHPIRUPDQDJLQJQDWXUH management (Morsko SURWHFWHGDUHDV WKHV\VWHP dobro) should be harmonised with RIPN the IUCN management Adoption of management plans for all the nature ± 0DQDJHUVRIQDWXUH 0DQDJHPHQWSODQV categories and provide for SURWHFWHGDUHDVWKURXJKWKHSDUWLFLSDWRU\SURFHVV protected areas adopted SDUWLFLSDWRU\DSSURDFKWR and in accordance with the IUCN guidelines PE National Parks management) RIPN 0LQLVWU\RI7RXULVPDQG (general goal 3) Environmental Protection PE for coastal zone management (Morsko dobro) 0XQLFLSDOVHFUHWDULDWV departments for environmental protection Consistent implementation of the existing ± 3(1DWLRQDO3DUNV management plans (development and protection 0XQLFLSDOVHFUHWDULDWV programmes) and prevention of events that can departments for KDUPWKHLQWHJULW\RIWKHQDWXUHSURWHFWHGDUHDV environmental protection (such as unplanned construction, uncontrolled use 0LQLVWU\RI7RXULVPDQG RIELRGLYHUVLW\DQGXQFRQWUROOHGIRUHVWFXWWLQJLQ Environmental Protection WKHSURWHFWLYHDQGERUGHU]RQHV HVSHFLDOO\LQWKH 0$):0 13V'XUPLWRUDQG6NDGDU/DNHFDSDFLW\EXLOGLQJ N Os in the PE National Par s and in other parts of the International organisations administration tas ed with the protection of nature DQGELRGLYHUVLW\ Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Adoption and implementation of the National ± 0LQLVWU\RI7RXULVPDQG BSAP adopted and Biodiversity Strategy and Action Plan Environmental Protection action plans implemented (in co-operation with UNDP) Improve the legal RIPN PE National Parks framework for the PE for coastal zone SURWHFWLRQRIELRGLYHUVLW\ management (Morsko VWUHQJWKHQKXPDQUHVRXUFHV dobro) and develop an effective 0XQLFLSDOVHFUHWDULDWV system for biodiversity departments for monitoring environmental protection )DFXOW\RI%LRORJ\ (general goal 3) 1DWXUDO0XVHXP,QVWLWXWH IRU0DULQH%LRORJ\%LR WHFKQLFDO,QVWLWXWH1*2V Review (harmonisation with the EU legislation) ± 0LQLVWU\RI7RXULVPDQG 1HZUHJXODWLRQVDGRSWHG DQGLPSOHPHQWDWLRQRIUHJXODWLRQVRQELRGLYHUVLW\ Environmental Protection SURWHFWLRQQDWXUHSURWHFWHGDUHDVDQGSURWHFWLRQ RIPN RIQDWXUHLQJHQHUDO PE National Parks 0XQLFLSDOVHFUHWDULDWV departments for environmental protection 1*2V 91 92 Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Implementation of priority actions and national 2007 - 20 2 Ministry of Tourism and Action plans action plans from the SAP IO report Environmental Protection implemented RIPN PE National Par s PE for coastal zone management (Morsko dobro) Municipal secretariats departments for environmental protection Faculty of iology Institute for Marine iology; N Os Training and employment of new staff for the 200 (and Ministry of Tourism and Number of newly hired areas of specialisation in the field of biodiversity onwards) Environmental Protection specialists for nature protection and protected areas management where RIPN protection competent staff is currently lac ing PE National Par s PE for coastal zone management (Morsko dobro) Municipal secretariats departments for environmental protection Faculty of iology Institute for Marine iology; io-technical Institute; N Os Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Review of the programme for biodiversity 2007 Ministry of Tourism and New (revised) monitoring and provision of necessary financial Environmental Protection biodiversity monitoring resources for its implementation RIPN programme adopted PE National Parks PE for coastal zone management (Morsko dobro) Municipal secretariats/ departments for environmental protection Protect and adequately control springs/sources for ± 0$):0 Consumption of water water supply for the cities; prevent devastation of Local self-governments per capita Ensure sufficient quantity forests in the zones of springs used for water of good quality drinking supply Losses in water supply Identify new springs/sources of drinking water  0$):0 systems water and protect them adequately Local self-governments Preparation of plans for provision of drinking ± 0$):0 Price of water / water to rural areas :DWHU$GPLQLVWUDWLRQ wastewater collection Public Companies for (general goals 3 and 2) Managers for rural water :DWHU6XSSO\DQG 6HZHUDJH supply systems identified Reduction of losses in water supply systems for ± 0$):0 20% by 2008 and halting the use of drinking :DWHU$GPLQLVWUDWLRQ 6KDUHRISRSXODWLRQZLWK water for other purposes, in order to bring the use Public Companies for access to safe drinking of drinking water closer to the EU standards :DWHU6XSSO\DQG water (total, urban, 6HZHUDJH rural), relationship with Introduce continuous monitoring of drinking 2007 - 2009 Public Companies for MDGs water quality in all the water supply systems :DWHU6XSSO\DQG 6HZHUDJH Reduction of number of Ministry of Health, Labor samples of 93 DQG6RFLDO:HOIDUH microbiologically Institute for Public Health unacceptable water 94 Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Set the water prices at the level of cost recovery y 200 Ministry of Tourism and Share of population with (first of all of economic costs, and then gradually Environmental Protection access to sewage of environmental costs, as prescribed by the EU Local self-governments facilities (total, urban, :DWHU)UDPHZRUN'LUHFWLYH±:)'  Public Companies for UXUDO UHODWLRQVKLSZLWK ater Supply and 0'*V Sewerage Investments in maintenance of city water supply 2007 - 20 0 Local self-governments systems in order to ensure good quality of DQGRQZDUGV  Public Companies for drin ing water; identification of bodies ater Supply and responsible for management of rural water supply Sewerage systems and improvements in managing these systems Construction of regional water supply system for ± *RYHUQPHQWRI5R0 the coastal region International financial organisations Local self-governments 3(5HJLRQDO:DWHU6XSSO\ Programme of use of potential springs for the 2007 - 2008 MAF M implementation of water bottling projects Ministry of Economic Development Adoption of the new Law on aters, harmonised 2007 - 20 0 MAF M New regulations adopted with the EU ater Framewor Directive; ater Administration adoption of the plan for protection of waters; Ministry of Tourism and Introduce integrated river adoption of the Law on Financing of ater Environmental Protection basin management, with Management and of relevant bylaws necessary legal and Signing and ratification of international  3DUOLDPHQWRIWKH5R0 Conventions ratified conventions ( elsin i, Stoc holm, Protocol on other responsible bodies National plan for the institutional changes and :DWHUDQG+HDOWKDQGRWKHUV  and institutions implementation of the improvements in the quality Stoc holm Convention Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) control and monitoring of Capacity building for the implementation of ± 0$):0 waters integrated river basin management and :DWHU$GPLQLVWUDWLRQ improvement of horizontal and vertical co- 0LQLVWU\RI7RXULVPDQG ordination between various segments of Environmental Protection (general goal 3) administration )XWXUH(QYLURQPHQWDO 3URWHFWLRQ$JHQF\ 0LQLVWU\RI(FRQRPLF Development 0LQLVWU\RI7UDQVSRUW 0DULWLPHDQG 7HOHFRPPXQLFDWLRQV 0LQLVWU\RI+HDOWK/DERU DQG6RFLDO:HOIDUH PE for coastal zone management (Morsko dobro) /RFDOVHOIJRYHUQPHQWV Preparation and implementation of projects for ± 0$):0 LQWHJUDWHGPDQDJHPHQWRI7DUDDQG/LPULYHU 0LQLVWU\RI7RXULVPDQG EDVLQVDQGRI6NDGDU/DNHHFRV\VWHP Environmental Protection :RUOG%DQN ,PSOHPHQWDWLRQRIZDVWHZDWHU0DVWHU3ODQV ± /RFDOVHOIJRYHUQPHQWV /HQJWKRIFRQVWUXFWHG - Reconstruction and construction of Public Companies for sewage network priority sewage systems :DWHU6XSSO\DQG - Reconstruction of pumping stations (PS) Sewerage Number of reconstructed - Construction of priority plants for 0LQLVWU\RI7RXULVPDQG PS ZDVWHZDWHUWUHDWPHQW 1LNãLü3RGJRULFD Environmental Protection / coast) future unit for the Percentage of population - Connection of big generators of implementation of connected to the sewage wastewater to the sewage network (after communal infrastructure system 95 the construction of the treatment plants) projects and ensuring adequate pre-treatment in Share of treated industry wastewater Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) 96 Consistent implementation of the IPPC Law (with ± Ministry of Tourism and phased implementation of AT requirements (and onwards) Environmental Protection immediately for the new facilities, until 20 5 for future Environmental the e isting ones) Protection Agency Private business sector Consistent implementation of water quality  Ministry of Tourism and monitoring, in accordance with the EU regulations (and onwards) Environmental Protection encompassed under the FD ( ater Framewor future Environmental Directive); provide adequate funds for Protection Agency implementation of the monitoring programme MAF M armonise national regulations with the EU 2007 - 2008 Ministry of Tourism and Regulations adopted Preserve, and if possible directives in the field of air quality Environmental Protection improve air quality, especially in urban areas Ratification of relevant (non-ratified) supporting 2007 - 2008 Parliament of the Republic Protocols ratified protocols of the Convention on Long-range of Montenegro, other Transboundary Air Pollution responsible bodies and institutions (general goal 3) Preparation of a long term strategy for air quality 2007 - 2008 Ministry of Tourism and Strategy and Action Plan management; preparation of an Action plan Environmental Protection adopted future Environmental Protection Agency Phasing-out of leaded petrol and reduction in  0LQLVWU\RI7RXULVPDQG Consumption of sulphur content of diesel fuel and oil Environmental Protection unleaded fuel; Ministry of Economic consumption of diesel Development and oil with low sulphur content Introduction of integrated permit in accordance 2008 Ministry of Tourism and Number of IPPC permits with the IPPC Law Environmental Protection future Environmental Protection Agency Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Establishment of a national network for 2007 - 2008 Ministry of Tourism and Air quality reporting monitoring of air quality in accordance with the Environmental Protection/ EU standards future Environmental Protection Agency Improved monitoring of soil in relation to the ± ,QVWLWXWLRQVUHVSRQVLEOHIRU Map indicating contents content of hazardous and harmful materials; soil monitoring/ future of hazardous and preparation of maps on the contents of hazardous Environmental Protection dangerous substances in and harmful substances in the soil Agency soils prepared University of Montenegro ±%LRWHFKQLFDO,QVWLWXWH CETI Prevention (reduction to the lowest possible level) ± MAFWM Surface of agricultural of the conversion of agricultural land through the (permanently) Ministry for Economic land definition of agricultural land use policy, Development improvement of the legal framework (adoption of Local self-governments the Law on Agricultural Land) and consistent implementation of regulations and spatial plans Improvement of soil Ratification of the UN Convention on Combating 2007 Parliament of the RoM Convention ratified management and prevention Desertification (UNCCD); of the causes of land Preparation of the national action programme for degradation and damages prevention of land degradation in accordance with 2008 - 2009 MAFWM, Ministry of National action UNCCD Tourism and programme prepared Environmental Protection Introduction of the system of soil fertility control MAFWM Surface of fertile land and control of the rational use of fertilisers on ± University of Montenegro cultivable land for as many households as possible (permanently) ±%LRWHFKQLFDO,QVWLWXWH (general goal 3) Users of soil/land resources 97 Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) radual re-cultivation of damaged land, primarily Ministry of Tourism and in the municipality of Pljevlja ± Environmental Protection 98 future Environmental protection Agency Companies whose activities caused soil damages University of Montenegro ±%LRWHFKQLFDO,QVWLWXWH Erosion mapping according to the type and degree ± 0$):0 Maps on land of erosion; development of programmes and Ministry of Tourism and erosion eroded areas measures for the protection and mitigation of Environmental Protection prepared eroded areas future Environmental Protection Agency University of Montenegro ±%LRWHFKQLFDO,QVWLWXWH 3UHSDUDWLRQRI1DWLRQDO)RUHVWU\3ROLF\RI  0$):0 National forestry policy Montenegro adopted Preparation of the new Law on forests, law on  0$):0 New laws and bylaws hunting, as well as preparation of supporting adopted bylaws ,PSURYHPHQWVLQWKHV\VWHPRIPRQLWRULQJDQG  0$):0 New regulations adopted, controlling plans and management practices in defining responsibilities Obtaining of sustainable forestry and hunting, while providing for an in the forestry hunting forestry certificate (in adequate basis for these activities in the relevant monitoring and control DFFRUGDQFHZLWK)RUHVW laws and bylaws system; improved system 6WHZDUGVKLS&RXQFLO)6& implemented methodology) Development of institutional capacities for the  0$):0 Training (number of implementation of improved methodology of )RUHVW$JHQF\ trained people) forest inventories Development of institutional capacities for the  0$):0 Training (number of implementation of improved methodology of )RUHVW$JHQF\ trained people) (general goal 3) forestry planning (based on the principles of Planning documents sustainability and economic efficiency, and on the prepared according to the concept of ecological forest industry) improved methodology Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Establishment of a central data base and GIS in 2007 - 2008 MAFWM Provided equipment and forestry / hunting and provision of necessary Forest Agency training equipment and training Established data base and GIS National forest inventory: MAFWM - Preparatory actions 2007 Forest Agency Preparations executed - Field work ± Field works executed - Data processing  National Forest Inventory available Production of seeds from autochthonous genetic MAFWM resources Forest Agency Number of separated and - Review of the existing and identification of ± registered seed contents new forests for seed production Number of facilities - Implementation of nursery and other ± where measures were measures in identified forests performed - Purchase of equipment, training and 2007 - 2008 Equipment procured, construction of facilities training completed and facilities constructed 0RQLWRULQJRIWKHKHDOWKVWDWHRIIRUHVWV± 2007 MAFWM Network of bio- establishment of bio-indicating points Forest Agency indicating points established; necessary surveying performed Establishment of the protection system against 2007 - 2008 MAFWM Procurement and forest fires (video surveillance) Forest Agency installation of equipment, training Construction of 50 km of forest roads (10 ± 0$):0 Length of constructed km/year) and reconstruction of 50 km of forest Forest Agency and reconstructed roads roads (10 km/year) Identification and protection of autochthonous ± 0$):0 Identification activities dendro-flora and fauna, with special emphasis on Forest Agency executed 99 endemic and relic species Users of hunting areas Renewal and restoration of Preparation of planning documentation 2007 MAFWM Surface of the area where degraded forests Implementation of planned activities (500 ha total 2007 - 2012 Forest Agency the activities have been (general goal 3) or 100 ha/year) executed 84 Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) 100 Change and amend the Environment Law in 2007 - 2008 Ministry of Tourism and Amended Environment accordance with the ongoing reforms of Environmental Protection Law adopted environmental legislation, and continue with harmonisation of national legislation with the EU Environmental laws regulations harmonised Development of administrative capacities for 2007 - 20 0 Ministry of Tourism and The European Union harmonisation of environmental legislation Environmental Protection guide implemented Provide for training and professional development 2007 - 2008 Ministry of Tourism and Number of organised of staff for the implementation of new laws (EIA, Environmental Protection wor shops, training SEA and IPPC) as well as for the other programs and seminars environmental regulations that are currently being Establishment of efficient drafted (that is, for the ones that will be prepared legislative and institutional by 2008 at all levels) framewor for Prepare bylaws for the law on impact assessment, y 2008 Ministry of Tourism and ylaws adopted environmental protection law on strategic impact assessment and law on Environmental Protection (particularly in respect to integrated pollution prevention and control free access to information, Prepare plan of implementation for the IPPC Law y 2008 Ministry of Tourism and IPPC implementation implementation of EIA, Environmental Protection plan adopted Local self-governments SEA and IPPC legislation Efficient implementation of the e isting ± Ministry of Tourism and and strengthening of other environmental laws (and in time, of the ones the and onwards Environmental Protection regulatory and mar et adoption of which is forthcoming) instruments for Establish Environmental Protection Agency and 2007 Ministry of Tourism and Agency established environmental create preconditions for efficient wor of this Environmental Protection management) institution armonise the program of monitoring and system 2007 - 2008 Ministry of Tourism and (new) Monitoring of reporting with EEA standards and thus create Environmental Protection program prepared preconditions for establishment of a MAF M comprehensive information system in the field of CETI environmental protection ydro-met Institute ealth Institute RIPN Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) (General goal 3) Prepare joint programme for exchange of 2007 - 2008 Ministry of Tourism and Programme for exchange information and their dissemination among Environmental Protection of information developed republican and local authorities, non- Local self-governments governmental organisations and other local NGOs organisations, with the aim to encourage and stimulate public participation in environmental decision making process, especially at the local level Ratification of Aarhus Convention 2008 Responsible authorities in Convention ratified the RoM Ministry of Tourism and Environmental Protection Adopt the Law on Eco-fund and establish eco- 2006 - 2007 Ministry of Tourism and Law on Eco-fund fund, while strengthening the role of economic Environmental Protection adopted/ institution instruments and implementing the «polluter pays» Ministry of Finance established principle consistently Adoption of the national Spatial Plan (SP) and 2007 Ministry for Economic Strategic impact Adoption of new and integration of sustainability requirements into the Development assessment study updating of the existing SP through the strategic impact assessment Parliament of the RoM SP adopted spatial plans at all levels (from the national spatial Adoption of the Spatial Plan for Special Purpose 2007 Parliament of the RoM SPSPAMD adopted Area Morsko dobro (coastal zone) plan to municipal detailed urban plans), and Harmonisation of spatial plans for special purpose 2007 - 2009 Ministry for Economic (Number of) Changes integration of sustainability areas and of municipal spatial plans with the Development and amendments of requirements into spatial Spatial Plan of the Republic Local self-governments spatial plans plans and documents Adoption/ update of municipal general and 2007 - 2009 Local self-governments Number of adopted/ (general goal 3) detailed urban plans (GUP and DUP); priority to Ministry for Economic updated GUPs and DUPs be given to coastal and municipalities that Development 101 comprise some of the national parks Responsible expert institutions Provision of timely and effective access to 2007 - 2010 Ministry for Economic information and public participation in drafting Development spatial and urban planning documentation Local self-governments NGOs 86 Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) 102 Capacity building (especially at municipal level) ± Local self-governments (Number of ) Training for continuous planning and implementation of (continuous) Ministry for Economic programmes for modern trends, and integration of sustainability Development municipal institutions requirements (through environmental impact Domestic e pert responsible for planning assessment of plans ) institutions Establishment of a regional planning centre (for 2007 Local self-governments Institution established municipalities in the northern region) Establishment of an integrated information system ± Ministry for Economic with adequate sub-systems (cadastre, spatial (continuous) Development planning, urban planning, infrastructure) Local self-governments Capacity building in relevant inspections for ± Ministry for Economic implementation of laws and plans; improvements (continuous) Development in co-ordination and separation of responsibilities, Local self-governments and consistent implementation of punitive measures in case of non-compliance with regulations plans Adoption of the policy for landscape protection in 2008 Ministry for Economic Landscape protection accordance with the Council of Europe Development policy adopted Convention Protection of natural and cultural landscape Identification and evaluation of landscapes and ± 0LQLVWU\IRU(FRQRPLF Landscapes identified integration of landscape protection into spatial Development and evaluated, and planning, environmental protection policy, Ministry of Tourism and included in the new (general goals 3 and 5) cultural and other relevant policies Environmental Protection spatial and urban plan of Responsible local self- the municipalities government institutions E pert institutions (for urban planning and design, protection of cultural heritage, protection of nature, Faculty of Architecture) Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Define the border of coastal zone according to the 2007 overnment of RoM Coastal zone defined in guidelines of arcelona Convention, supporting Ministry for Economic the Spatial Plan of the protocols and draft IC M protocol; recognise the Development Republic border of the coastal zone in the Spatial Plan of Ministry of Tourism and the Republic Environmental Protection PE for coastal zone management Prepare and adopt National Strategy for Integrated 2007 overnment of RoM National IC M Strategy Coastal one Management in Montenegro - NS Ministry of Tourism and adopted Introduction of integrated for IC M in Montenegro Environmental Protection coastal zone management Coordination body for IC M Define the line beyond which there is no 2007 overnment of RoM Line beyond which there (general goal 3) construction or establish parameters according to Ministry of Tourism and is no construction which this line will be defined in the plans of a Environmental Protection determined (or lower ran PE for coastal zone parameters for its management definition) within the SP Municipalities erceg or through a legal act Novi, otor, Tivat, udva, ar, Ulcinj Change the Law on Morsko dobro (coastal zone) 2007 overnment of RoM New law adopted or adopt the new Law on Coastal one; the law Ministry of Tourism and should be harmonised with arcelona Convention, Environmental Protection supporting protocols and other international Ministry for Economic conventions Development Create institutional framewor (institution, agency 2008 overnment of RoM Institution agency or similar) for the implementation of new Ministry of Tourism and established 103 regulations and National IC M Strategy Environmental Protection Ministry for Economic Development 104 Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Secure implementation of Barcelona Convention ± Parliament of RoM Level of fulfilment of and supporting protocols, MARPOL Convention (phased, long Government of RoM duties from the national and other relevant international agreements term) Ministry of Tourism and Report on the (through the adjustment of national regulations, Environmental Protection implementation of adoption and implementation of relevant Ministry of Transport, Barcelona convention; strategies, action plans and measures) Maritime and Level of implementation Telecommunications of MARPOL and other conventions Recognise and clearly separate responsibilities for 2007 - 2008 Government of RoM Competencies defined integrated management at the local, regional and Ministry of Tourism and national level Environmental Protection PE for coastal zone management Municipalities Herceg Novi, Kotor, Tivat, Budva, Bar, Ulcinj Prepare CAMP Montenegro (Programme of 2008 - 2009 Government of RoM CAMP Montenegro integrated coastal zone management) (and onwards) Ministry of Tourism and adopted Environmental Protection PE for coastal zone management Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Prepare a comprehensive program of continuous 2007 - 2008 overnment of RoM Programme prepared and monitoring of oceanographic, physical-chemical, Ministry of Tourism and adopted biological and other parameters of the sea and Environmental Protection coastal area (monitoring) that will integrate MAF M Funds for the individual programmes, and identify new Ministry of Transport, implementation of the financing sources; implementation of the Maritime and Programme secured and programme from 2007 Telecommunications allocated PE for coastal zone Provide necessary equipment for monitoring of 2007 - 20 2 management Equipment for all the parameters in the sea; establish IS data Municipalities erceg institutions appointed to base on the sea and coastal zone, provide Novi, otor, Tivat, udva, perform the monitoring mechanisms of continuous financing and identify ar, Ulcinj provided institutions for maintenance of the data base ydro-met Institute CETI IS data base established Reduction of pollution of Institute for Marine and regularly updated the sea and coastal zone iology, other relevant institutions Adoption and implementation of the National plan ± overnment of RoM Plan of action in case of of interventions in case of accidental pollution of and onwards Ministry of Transport, accidental pollution of (general goal 3) the sea from the ships, as a basis for accession to Maritime and the sea from ships the Sub-regional Plan for the Adriatic Telecommunications prepared and adopted Agency for Naval Safety and other relevant Involvement in activities institutions of implementing the Sub- regional plan for the Adriatic Adoption of the Law on Protection of the Sea 2007 overnment of RoM Laws adopted from Pollution from essels, Law on Ports, Law Ministry of Transport, on Sea, Law on ydrographic Activities, Law on Maritime and Sea Navigation, Law on Safety and Security of Telecommunications 105 Navigation Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Provide mechanisms for efficient distribution and 2007 -2008 Government of RoM Mechanisms defined in co-ordination of competencies for the control of Responsible ministries the National Strategy for activities in the coastal zone (which implies PE for coastal zone ICZM 106 cross-sectoral co-operation and co-operation of management local and national inspections) Municipalities of Herceg Novi, Kotor, Tivat, Budva, Bar, Ulcinj Review and adopt the National Action Plan for 2007 Ministry of Tourism and National Action Plan for Reducing Pollution from Land Based Sources in Environmental Protection Prevention of Pollution accordance with the goals stated in the Strategic and other ministries and from Land-based Sources Action Plan adopted in 1997 within UNEP/MAP institutions involved in the prepared and adopted implementation of Barcelona Convention and its protocols on the operational level in Montenegro 3UHSDUDWLRQRIWKH1DWLRQDO&RPPXQLFDWLRQRQ 2007 - 2008 Ministry of Tourism and Inventory of greenhouse &OLPDWH&KDQJH LQFOXGLQJWKHLQYHQWRU\RI Environmental Protection/ gases (as a part of the Fulfilment of obligations JUHHQKRXVHJDVHVWKHSODQIRUUHGXFWLRQRI future Environmental National HPLVVLRQVDQGWKHSURJUDPPHWRPLWLJDWHWKH Protection Agency Communication) under the international FRQVHTXHQFHVRIFOLPDWHFKDQJH Hydro-met Institute CO2 emissions agreements on climate National Communication change and reduction in the adopted use of ozone depleting Ratification of Kyoto Protocol 2007 Parliament of the RoM Ratified Protocol substances (general goal 3) Implementation of the programme for phasing out ± 0LQLVWU\RI7RXULVPDQG Consumption of ozone the ozone depleting substances Environmental Protection/ depleting substances future Environmental Protection Agency Adoption of by-laws pursuant to the Waste 2007 Ministry of Tourism and Management Law Environmental Protection/ Further harmonisation with future Environmental the EU legislation, together Protection Agency with strengthening Relevant state and local bodies Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) capacities for proper waste National aste Management Plan 2007 Ministry of Tourism and handling and enhancing the Environmental Protection Number of constructed waste database Municipal aste Management Plans 2008 Local governments regional sanitary landfills Construction of regional sanitary landfills ± Local governments (priority landfills in the coastal region) (and onwards) Public Utility Companies Share of municipal Future unit for the wastes that are properly implementation of disposed (into sanitary (general goal 3) landfills) communal infrastructure projects Construction of a landfill for hazardous waste 200 Ministry of Tourism and Environmental Protection eeping data records on waste generation, solid 200 Ministry of Tourism and waste management and issued permits (pursuant Environmental Protection to Article of the aste Management Law) Ministry of ealth, Labor and Social elfare Local governments Raising awareness on the importance of proper  0LQLVWU\RI7RXULVPDQG handling of wastes Environmental Protection Public Utility Companies N Os 6WLPXODWLRQRIUHF\FOLQJSURJUDPPHV  0LQLVWU\RI7RXULVPDQG Environmental Protection Ministry for Economic Development Local governments Private sector Consistent application of sanctions in case of non- 2007 Public administration Efficiency of inspection compliance permanently bodies, especially services and courts inspectorates and courts 107 Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Improve enforcement of Gradual overcoming of the gap between the 2007 - 20 0 overnment and other ualifications and laws and implementation of e isting laws and strategic documents and the e ecutive bodies competencies of civil strategic documents, plans level of their implementation, primarily through udiciary - prosecutors servants and programmes; ensure institutional capacities building and by creating a and courts 108 favourable environment N Os (through proper Public perception of the adequate public monitoring and critical level of implementation participation in the process attitude towards the of regulations and plans of their preparation authorities) Continuation of public administration reform and ± *RYHUQPHQWDQGRWKHU Public perception of the (general goal ) LPSURYHPHQWRIDGPLQLVWUDWLRQ¶VHIILFLHQF\LQOLQH e ecutive bodies, with the openness of the decision- with the requirements resulting from the EU assistance of public ma ing process integration processes; improved vertical and agencies and institutions horizontal co-ordination within public University Number and quality of administration public discussions and Further steps on the establishment of a decision- ± All state administration other consultations in ma ing process that is transparent and open for (and onwards) bodies drafting policies and the public Political parties plans Civil sector Co-ordination mechanisms among different administration levels Adoption of anti-corruption policy with specific 2007 Parliament Anti-corruption policy measures to prevent corruption in certain areas, overnment and other adopted Prevention of corruption especially in privatisation, urban planning and e ecutive bodies construction industry, judiciary and natural Civil sector (N Os, Number of complaints resources management as the areas where media) due to non-compliance (general goal ) corruption may substantially jeopardise the public with the Law on Free interest Access to Information Consistent application of the Law on Free Access 2007 All state administration to Information permanently bodies Number of anti- Civil sector (N Os, corruption campaigns media) 2007 - 20 0 overnment Number of processed Anti-corruption campaigns Civil sector (N Os, cases of corruption and media) abuse of powers Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) More active contribution of the judiciary to anti- 2007 - 2010 Judiciary and prosecution corruption programmes Civil sector (NGOs, media) Further improvement of the legislation in the field 2007 All state administration of fight against corruption, strengthening permanently bodies institutions for the implementation of anti- Political parties corruption policy and increase in the efficiency of Civil sector (NGOs, the judicial system (changes and amendments of media) the Criminal Code, especially in the field of Education system at all FDSDFLW\EXLOGLQJRIWKH3URVHFXWRU¶V2IILFHDQG levels introduction of secret surveillance measures) Decentralisation Consistent implementation of the Law on Local 2007 - 2008 Local self-governments Self-government Government Judiciary Share of local (general goal 4) Institutional and financial strengthening of local 2006 - 2008 Government, in particular governments tax authorities, especially in the fields where the new Ministry of Finance revenues expressed as a laws devolve significant and demanding Local authorities % of total tax revenues; responsibilities to municipalities share of budgetary Capacity building at the local level, particularly in 2007 - 2012 Government, executive appropriations allocated the fields in which local bodies have significant bodies, public agencies to local governments and demanding responsibilities (including, but not and institutions limited to, water supply, water management, University Number of inter- waste, spatial planning) NGOs municipal projects International organisations and programmes Strengthening of inter-municipal co-operation and 2007 - 2009 Union of Municipalities of regional approaches in resolving problems Local self-governments Government, executive bodies, public agencies 109 and institutions Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Provide for all children (especially Roma) of 2007 - 20 0 Ministry of Education and Primary school 110 primary school age to enrol and complete primary Science enrolment rate education Institute for Education Number of children enrolled in fifth grade compared to the total Providing quality education number in that age group for all children; attainment Literacy in the age group of Millennium 5-2 Development oals and the Provide free te tboo s for Roma children and 2007 - 20 0 Ministry of Education and Number of distributed goals of the National Action children from disadvantaged families Science free te tboo s in relation Plan for Children Institute for Education to total number of children (MOP (general goals and 2) beneficiaries) Implement inclusive education 2007 - 20 0 Ministry of Education and Number of children Science covered by inclusive Institute for Education education Number of schools with technical possibilities for inclusive education Conduct teaching process based on the new 2007 - 20 0 Ministry of Education and Share of pupils curricula Science (percentage) studying Institute for Education according to the new Centre for ocational curricula Education and Training Schools Ratio between the number of PCs in schools and pupils Increase of sustainable Preparation of syllabi for optional subjects for 2007 - 20 0 Ministry of Education and Number of schools with development topics and elementary schools Science optional subjects contents in the educational Institute for Education curricula from pre-school to Preparation of syllabi for optional subjects for 2007 - 20 0 Ministry of Education and Number of schools with university levels general secondary schools Science optional subjects Institute for Education Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Quality implementation of the syllabi with ± 0LQLVWU\RI(GXFDWLRQDQG 1XPEHURIWHDFKHUV sustainable development topics Science WUDLQHGWKURXJK JHQHUDOJRDO ,QVWLWXWHIRU(GXFDWLRQ ZRUNVKRSVDQGVHPLQDUV &HQWUHIRU9RFDWLRQDO (GXFDWLRQDQG7UDLQLQJ 'HVLJQLQJRIWKHIUHHV\OODEL IURPSUH  0LQLVWU\RI(GXFDWLRQDQG 1XPEHURIV\OODEL VFKRROWRXQLYHUVLW\OHYHOV LQDZD\WR Science supplemented with LQFRUSRUDWHVXVWDLQDEOHGHYHORSPHQWWRSLFV ,QVWLWXWHIRU(GXFDWLRQ sustainable development Schools topics 5HDOLVDWLRQRIVSHFLILFSURMHFWVRIIHUHGE\1*2V  1*2V 1XPEHURISURMHFWV DQGUHODWLQJWRVXVWDLQDEOHGHYHORSPHQWDQG Schools implemented in schools HQYLURQPHQWDOSURWHFWLRQWKURXJKWKHVFKRROV 3URPRWLRQRIKHDOWK\OLIHVW\OHVWRFKDQJH ± 0LQLVWU\RI+HDOWK/DERU 3HUFHQWDJHRIVPRNHUVLQ EHKDYLRXUV 6PRNLQJ&RQWURO6WUDWHJ\6DIH)RRG DQG6RFLDO:HOIDUH the total population 6WUDWHJ\9LROHQFH3UHYHQWLRQ6WUDWHJ\DQGWKH ,QVWLWXWHIRU3XEOLF+HDOWK $FWLRQ3ODQIRU3UHYHQWLRQIRU'UXJ$EXVH DQG 0LQLVWU\RI(GXFDWLRQDQG 1XPEHURIFDPSDLJQV LPSURYHPHQWRIKHDOWKUHODWHGVDIHW\PHDVXUHV Science WUDLQLQJIRFXVHGRQ ,PSURYHWKHKHDOWKUHODWHG 0LQLVWU\RI,QWHULRUDQG VPRNLQJSUHYHQWLRQ TXDOLW\RIOLIH ZKLOH 3XEOLF$GPLQLVWUDWLRQ SURSHUQXWULWLRQYLROHQFH SURPRWLQJKHDOWK\OLIH /RFDOVHOIJRYHUQPHQWV SUHYHQWLRQGUXJDEXVH VW\OHV  1*2V SUHYHQWLRQSUHYHQWLRQRI FRQWDJLRXVGLVHDVHV LQFUHDVHGWUDIILFVDIHW\ JHQHUDOJRDOVDQG  ,PSURYHPHQWVLQWKHFRQWURORIKHDOWKVDIHW\RI  Relevant inspection 0LFURELRORJLFDOVDIHW\RI IRRGDQGFRQVXPHUJRRGVGULQNLQJZDWHUTXDOLW\ VHUYLFHV IRRGDQGGULQNLQJZDWHU DQGRWKHUSDUDPHWHUVWKDWDIIHFWKHDOWK ,QVWLWXWHIRU3XEOLF+HDOWK +HDOWKVDIHW\RIIRRGDQG KDUPRQLVDWLRQZLWKWKH(8VWDQGDUGV &(7, GULQNLQJZDWHU 'ULQNLQJZDWHUTXDOLW\ 111 $LUTXDOLW\LQXUEDQDUHDV Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Development of multi-sectoral programmes with 2007 - 20 0 Inter-sectoral teams Research projects the aim of establishing the importance of the Ministry of ealth, Labour developed and adopted influence of e ternal factors on health and the and Social elfare development of national environment and health Ministry of Tourism and National Environment 112 action plan Environmental Protection and ealth Action Plan E pert institutions (NE AP) (Institute for ealth, CETI, etc ), International organisations Development and enhancement of programmes 2007 - 20 0 Ministry of ealth, Labour ealth education aimed at raising the level of nowledge as a tool and Social elfare programmes developed for prevention of diseases (particularly for Ministry of Education and and adopted children and other vulnerable categories) Science Institute for ealth Indicators of public Relevant health institutions health Prevention, timely detection, treatment and 200 - 20 2 Ministry of ealth, Labour Morbidity indicators Preservation and suppression of contagious, chronic non- and Social elfare improvement of public contagious and malignant diseases, including the Institute for Public ealth Indicators on the health with particular immunisation against main contagious diseases, as Relevant health institutions coverage of the emphasis on vulnerable well as prevention and control of local endemic population with specific groups diseases health care measures ealth protection of general population, whereas 200 -20 2 Ministry of ealth, Labour (general goals and 2) priorities are protection of children and the young, and Social elfare Indicators of health protection of women in relation to family Relevant health institutions status of women and planning, pregnancy, delivery and maternity, as children (infant mortality well as protection of the elderly rate, children under five mortality rate, Increasing the level of mental health in general 2007 -20 2 Ministry of ealth, Labour mortinatality rate, population, treatment and rehabilitation of and Social elfare maternal mortality rate) mentally ill persons, and special accommodation Relevant health institutions and treatment of mentally ill persons who may International institutions Indicators of availability cause harm to themselves or to the environment in of health care to women which they live, in accordance with the Strategy and children of mental health improvement Indicators of mental Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Proper treatment of traumatised people, especially 2007 -2012 Ministry of Health, Labour patients morbidity and in cases of traumas caused by car accidents and Social Welfare mortality Relevant health institutions Potentially lost years of life Adopt the strategy for development of social and 2007 Government of the RoM child protection (the strategy consists of Ministry of Health, Labour programmes that need to be implemented to and Social Welfare enhance social and child protection) $GRSWLRQRIWKH³1HWZRUNRILQVWLWXWLRQVRIVRFLDO 2007 overnment of the RoM DQGFKLOGSURWHFWLRQ´±DQDFWWRHVWDEOLVKWKH Ministry of ealth, Labour 5DWLREHWZHHQWRWDO types, the number and distribution of these and Social elfare population and social institutions in Montenegro assistance beneficiaries Adoption of the Strategy for integration of people 2007 overnment of the RoM in a given area Enhancing the quality of ZLWKGLVDELOLWLHVLQWRWKH0RQWHQHJULQVRFLHW\ Ministry of ealth, Labour social protection services and Social elfare Poverty rate and and economic 1*2VHFWRU inequality indicators HPSRZHUPHQWRIQHHG\ Establishment of centre for local integration of 2007 Ministry of ealth, Labour (statistical data of the persons GLVSODFHGSHUVRQVZLWKLQWKH&RPPLVVDULDWIRU and Social elfare &HQWUHVIRU6RFLDO:RUN Displaced Persons &RPPLVVDULDWIRU 0RQVWDWDQG1*2V  (general goal 2) Displaced Persons International organisations 1XPEHURI,'3VDQG 1*2V REA employed through Employment programmes for displaced persons 2007 - 20 0 Ministry of ealth, Labour special programmes and Social elfare conducted by the Ministry of Education and Ministry of ealth, Science Labour and Social Employment Agency elfare Directorate for Development of SMEs 113 1*2V Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Programmes for provision of basic housing for 2007 - 2010 Ministry of Health, Labour displaced persons and Social Welfare Ministry for Economic 114 Development Local Governments Commissariat for Displaced Persons International organisations Access to social and child protection system 2007 - 2012 Ministry of Health, Labour financial assistance for displaced persons and Social Welfare Centres for Social Work Commissariat for Displaced Persons Red Cross NGOs International organisations Improving employment of RAE (Roma, Ashkelia, 2007 - 2012 Ministry of Health, Labour Egyptians) population and Social Welfare Ministry of Education and Science Union of Employers Roma Associations Local self-governments Adopt Gender Equality Law 2007 Government of the RoM Strengthening of gender Parliament of the RoM equality Adopt the National Action Plan for Gender 2007 Government of the RoM Enrolment rates of (general goal 2) Equality Gender Equality Office women to higher Implement the National Action Plan for Gender 2007 - 2009 Ministries educational institutions Equality Gender Equality Office Local self-governments Unemployment rates for NGOs women Ensure mechanisms for equal participation of 2007 - 2012 Government of the RoM women and man in decision-making regarding the Participation of women economic development and distribution of in the Parliament benefits Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) Development of the National Strategy on Cultural 2008 - 200 Ministry of Culture, Sports Presence and consensus Policy and Media of relevant institutions and organisations Transparency of the strategy drafting process Coverage of ey issues in culture Drafting a set of laws on cultural heritage 2007 - 2008 Ministry of Culture, Sports Enactment of the laws - Law on Cultural eritage and Media - Law on Museums - Law on Archives - Law on Libraries Development of data base on cultural heritage 2007 - 200 National Institute for Number of institutions (movable and immovable) Monument Protection involved in the unique National Museum of information system Montenegro Number of monuments Preservation of cultural with digitised records heritage and cultural Development of archaeological map and the ± &HQWUHIRU$UFKDHRORJLFDO Number of processed diversity archaeological sites data base Research of Montenegro municipalities for 2 months Number of (general goal 5) archaeological sites with digitised records Media campaigns on cultural diversity 2007-2008 Ministry of Culture, Sports Diversity and number of and Media activities during Local self-governments campaigns Funds spent on campaigns Development of the Management Plan for the 2007 Regional Institute for Municipality of otor orld eritage Site - otor Monument Protection Evaluation of the plan by 115 otor WKH81(6&2¶V:RUOG eritage Committee Preparation and adoption of the Law on Illicit 2007 - 2008 Ministry of Culture, Sports Enactment of the law Media Concentration and Media Parliament of the RoM Priority objectives Measures Deadlines Responsible agencies Indicators (relationship with general goal) ,QFUHDVLQJSURIHVVLRQDOLVP 7UDLQLQJIRUMRXUQDOLVWV SDUWLFXODUO\RQ³UHVHDUFK 2007 - 2008 0HGLDDVVRFLDWLRQV 1XPEHURIWUDLQLQJ¶V 116 RIWKHPHGLDDQGSURYLGLQJ MRXUQDOLVP´FRQWULEXWLRQWRIUHHDFFHVVWR 0HGLD participants IRUDPRUHVXEVWDQWLDO LQIRUPDWLRQDQGVXVWDLQDEOHGHYHORSPHQWLVVXHV  FRQWULEXWLRQWRUDLVLQJ SXEOLFDZDUHQHVVRQ ,QFUHDVHRISURJUDPPHVGHGLFDWHGWRVXVWDLQDEOH  3XEOLFEURDGFDVWLQJ 1XPEHURIKRXUVRI VXVWDLQDEOHGHYHORSPHQW GHYHORSPHQWLVVXHVLQWKHSULQWHGDQGHOHFWURQLF VHUYLFHVDQGRWKHU SURJUDPPHGHGLFDWHGWR 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areas (youth, elderly, women, etc) in order to create Centres for Culture better quality amenities for these target groups; Number of activated (general goals 2 and 5) encourage activities of N Os, businesses, public areas and number community-based organisations, associations of of activities underta en artists and others to develop programmes aimed at ³DFWLYDWLQJ´SXEOLFDUHDVVXFKDVWKHVTXDUHV par s, etc 117 APPENDIX 2 - REFERENCES

APPENDIX 2 – REFERENCES A.A.Tatsi and A.I.Zouboulis, A Field Investigation of the Quality and Quantity of Leachate IURPD0XQLFLSDO6ROLG:DVWH/DQG¿OOLQD0HGLWHUUDQHDQ&OLPDWH7KHVVDORQLNL*UHHFH Adv.Envi-ron.Res.6 (2002) 207-219 Agency for the Development of Small and Medium-sized Enterprises of the RoM, Strategy Policy for the Development of Small- and Medium-sized Companies in Montenegro, Podgorica (2002) Andrea Semprini, Multiculturalism, Beograd (1999) ASTM, Standard Test Method for Shake Extraction of Solid Waste with Water, ASTM D3987-85 (1995) %LOMDQD5RPLüGURestructuring Cultural Institutions, Beograd (2005) Brachya, V. Juhasz, F., Pavasovic, A. and Trumbic, I., Guidelines for the Integrated Management of Coastal and Marine Areas with Special Reference to the Mediterranean Basin, PAP/RAC, Split (1995) %XãNRYLü90DþLü9DQG,YDQRYLü$Status, Problems and Conservation of Coastal and Marine Biodiversity in Montenegro (State Union of Serbia and Montenegro), National Report produced within the Project Strategic Action Programme for the Conservation of Biological Diversity of the Mediterranean Region (SAPBIO), Podgorica (2004) %XãNRYLü9%XOLü=-RYRYLü96WHYDQRYLü9DQG0DQGLü6Natural and Landscape Values of Space and Nature Protection, Sectoral Study (SS-AE) 4.3. for the needs of the National Spatial Plan, University of Montenegro and the National Institute for Urban Planning and Design, Podgorica (2005) %XãNRYLü93RVVLELOLWLHVIRU0RUH(I¿FLHQW3ODQQLQJRI3URWHFWHG$UHDV0DQDJHPHQW, Kvalitet (journal for the introduction of quality management systems), Congress for the Introduction of ISO Standards in Montenegro, Herceg Novi, 8th September 1999 Buskovic, V., Report on Biodiversity Indicators for Montenegro, prepared within the Programme on Environment Millennium Development Goals (MDG) in Europe and Central $VLD7KH:RUOG%DQN  CEED, Montenegro Business Outlook, Podgorica (2005) CEED, The Discrimination of Women in the Employment Process and at the Work Place, Podgorica (2002) Centre for Eco-toxicological Research, Environmental Monitoring in Montenegro, Podgorica (2002) Claude Mollard, Cultural Engineering (L’ingenierie culturelle), Beograd (2000) Employment Agency of the Republic Montenegro, Monthly Report on Persons Seeking Employment, Podgorica (2004) (QHUJ\/DZ2I¿FLDO*D]HWWHRIWKH5R0QR 119 EPCD, Development Directions of Montenegro as an Ecological State (2002) EU Directives 75/442/ECC, 2000/532/EC and 2002/2150/EC European Commission, Communication from the Commission to the Council and the European Parliament, Stimulating Technologies for Sustainable Development: An Environmental Technologies Action Plan for the European Union, COM (2004) 38 European Commission, Communication from the Commission, Investing in Research: An Action Plan for Europe, COM (2003) 226 European Commission, Communication from the Commission, Sustainable Europe for a Better World: A European Union Strategy for Sustainable Development, COM (2001) 264 European Commission, Sustainable Development Indicators to Monitor the Implementation of the EU Sustainable Development Strategy, SEC (2005) 161 European Commission, Towards a European ICZM Strategy: General Principles and Policy Options, Luxembourg (1999) Expeditio, Attitude towards the Space – ESDP – European Sustainable Development Perspective, Kotor (2006) Expeditio, Attitude towards the Space – Green Paper, Kotor (2006) Expeditio, Attitude towards the Space – The European Urban Charter, Reclaiming City Streets for People, Kotor (2006) Faculty of Economy Podgorica, Development Level and Quality of the Operation of Transport System in Montenegrin Economy (working draft), Podgorica (2004) Faculty of Economy Podgorica, Maritime Industry, Podgorica (1995) Government RoM and GOPA, Master Plan for Solid Waste Management at the National Level, Podgorica (2004) Government RoM, Development and Poverty Reduction Strategy of Montenegro, Podgorica (2003) Government RoM, Economic Reforms Agenda for Montenegro 2002-2007, Podgorica (2005) Government RoM, Energy Policy of the Republic of Montenegro, Podgorica (2005) Government RoM, National Plan of Action for Children in Montenegro by the year 2010 (NPA), Podgorica (2004) Government RoM, Progress Report on the Achievement of Millennium Development Goals in Montenegro, Podgorica (2005) Government RoM, Stimulating New Employment, Podgorica (2004) *RYHUQPHQW5R0:RUNProgram of the Government of Montenegro for 2006, Podgorica (2006) Greater London Authority, Guide to Preparing Open Space Strategies: Best Practice 120 Guidance of the London Plan, London (2004) GTZ, Government of the RoM and the University of Montenegro, Sectoral Studies – Analyses and Expert Opinions for the Needs of the National Spatial Plan of Montenegro (draft) Institute for Public Health, Statistical Yearbooks on Public Health and Health Care System in the Republic of Montenegro 1998 - 2004, Podgorica ISSP, Household Survey of RAE, Refugees and IDPs in Montenegro, Podgorica (2003) ISSP, Household Survey, numbers 10 and 11, Podgorica (2005) ISSP, Human Development Report for Montenegro, Podgorica (2005) ISSP, Living Standards and Poverty in Montenegro 2002, Podgorica (2003) ISSP, Montenegro Economic Trends – MONET, numbers 19 and 22, Pogorica (2005 and 2006) ,YDQRYLü$Development of the Integrated Coastal Zone Management (ICZM) through the International Legal Framework and its Application to Yugoslavian Environmental Policy, Master of Science Degree Dissertation, Department of Environmental Sciences and Policy, Central European University, Budapest (1997) Juka Jokileto and Bernar M. 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2015 in the Republic of Montenegro, Podgorica (2005) 0LQLVWU\RI/DERXUDQG6RFLDO:HOIDUHRIWKH*RYHUQPHQW5R0Strategy for Durable Solution for Refugees and IDPs, Podgorica (2005) Ministry of Maritime Affairs and Transport of the Government RoM, Work Program of the Ministry of Maritime Affairs and Transport of the Government RoM, Podgorica (2003) Ministry of Maritime Affairs and Transport of the Government RoM, Maritime Budget for 2005 of the Ministry of Maritime Affairs and Transport of the Government RoM, Podgorica (2004) Ministry of Maritime Affairs and Transport of the Government RoM, Transport Development Strategy of Montenegro (draft), Podgorica (2006) Ministry of the Environment and Spatial Planning – Environmental Agency of the Republic of Slovenia, Environmental Indicators 2003, Ljubljana (2003) Ministry of Tourism of the Government RoM and DEG, Master Plan – Tourism Development Strategy until the Year 2020, Podgorica (2001) Ministry of Tourism of the Government RoM and the Institute for Tourism from Ljubljana, Mountain Tourism Development Program for Montenegro (draft), Podgorica (2005) MONSTAT, Gross Domestic Product and National Revenues of Montenegro, Podgorica (2004) 123 MONSTAT, Monthly Report on Wages, Podgorica (2004) Montecep and National Institute for Urban Planning and Design, Draft Physical Plan of the Special Purpose area Morsko dobro (coastal zone), Kotor and Podgorica (2006) National Institute for Urban Planning and Design and the University of Montenegro, Assessment of Current Status and Development Perspectives for the Needs of the Development of the Spatial Plan for the Republic of Montenegro and the Sectoral Study on Economic Development, Podgorica (2005) National Institute for Urban Planning and Design and the University of Montenegro, Waste Management, Sectoral Study (SS-AE) 5.0, Podgorica (2005) NSSD Reports on the Participatory Process 2005 – 2006 OECD DAC, The DAC Guidelines - Strategies for Sustainable Development, Guidance for Development Co-operation, Development Co-operation Committee, OECD, Paris (2001) Prieur, M. and Ghezal, M., National Legislation and Proposals for the Guidelines Relating to Integrated Planning and Management of Coastal Zones, Split (2000) PRSP team, Experiences from the Participatory Process, Podgorica (2004) 3XOHYLü9Protection of Flora and Vegetation in Montenegro, CANU, Section for Biological and Medical Sciences, Podgorica (1982) 5(&&RXQWU\2I¿FH<XJRVODYLDStrategic Environmental Analysis of FR Yugoslavia, Belgrade (2001) REC, Sourcebook on Economic Instruments for Environmental Policy, Central and Eastern Europe, Szentendre, Hungary (1999) Robert Picard, European Cultural Heritage, Podgorica (2004) 6ODYNR%RJGDQRYLü3UYRVODY0DUMDQRYLüDQG0LORUDG)LOLSRYLüEnvironment - Institutional Frameworks and New Tendencies in the Protection Policy, Federal Ministry for Environment, Beograd (1993) 6WHYDQRYLü9DQG9DVLü9 HGV Biodiversity of Yugoslavia with the Overview of Species of International Importance, Faculty of Biology and Ecolibri, Beograd (1993) 7KH:RUOG%DQN6HUELDDQG0RQWHQHJUR(QYLURQPHQWDO6HFWRU5HSRUW%HOJUDGH  7RPLVODYâRODMarketing in Museums, Zagreb (2001) UN DESA, Guidance in Preparing a National Sustainable Development Strategy: Managing Sustainable Development in the New Millennium, Background Paper No.13. DESA/DSD/ PC2/BP13 (2002) UN Division for Sustainable Development, Indicators for Sustainable Development - Review and Assessment, Background paper, New York (2005) UNDP, Guide for Good Environmental Management (2003) UNDP, Millennium Development Goals 124 UNDP, Strategic Framework for Sustainable Tourism Development in the Northern and Central Regions of Montenegro, Podgorica (2004) UNEP/MAP PAP/RAC, Guidelines for the Evaluation of Tourism Carrying Capacity in Mediterranean Coastal Areas, Split (1997) UNEP/MAP, Assessment of National Strategies for Sustainable Development in the Mediterranean Region, Athens (2004) UNEP/MAP, Convention on the Protection of the Mediterranean Sea against Pollution and the its Protocols, Barcelona (1995) UNEP/MAP, Draft Protocol on Integrated Coastal Zone Management (ICZM) in the Mediterranean (2005) UNEP/MAP, Mediterranean Strategy for Sustainable Development, Athens (2005) UNEP/MAP, Mediterranean Sustainable Development Strategy, translated by the NGO Greenhome, Podgorica (2005) UNEP/MAP, Visions and Framework Orientations for MSSD, Athens (2004) UNEP/MAP/PAPRAC, Good Practices Guidelines for ICAM in the Mediterranean, Split (2001) United Nations, Agenda 21 United Nations, Johannesburg Plan of Implementation United Nations, Millennium Declaration United Nations, The Habitat Agenda Goals and Principles, Commitments and the Global Plan of Action Vil Kimlika, Multiculturalism, Podgorica (2004) (Footnotes) 1 There is an ongoing review of the Master Plan for the Development of Tourism 125