Economic development is a complex economic course by which a country gradually leave economic underdevelopment and poverty, achieving higher developmental levels. In order to obtain a picture of the achieved level of development of a country, one should take into account national product per capita and other social indicators (life expectancy, literacy rate, (un)employment, the number of doctors per 1,000 population, etc.). Economic development is based on the strategies, policies and programs through which the State improves economics, politics and welfare of the people.
Economic growth and development is achieved by countries that transform their local competitive advantages in global advantages. This goal is achieved through decentralization of economic decision-making and management of local economic development and thus the role of local communities is strengthened. Local economic development implies growth capacity of the local economy, creating wealth for the inhabitants, in order to improve their quality of life through increased employment, real wages, value of personal property, the scope and quality of services by local authorities. To effectively manage local economic development, addressing the significant local needs and problems if possible, it is necessary to do strategic planning.
With the EU integration process, in addition to local economic development, increasing public attention is paid to regional development policy. The focus of regional development is to reduce regional disparities by improving economic development, recognizing the development potential of the area, and encouraging their management. Balanced economic development of all regions of one country is realized along with national, regional and local economic development.
In mid-2010, the Government of Montenegro adopted the Strategy for Regional Development of Montenegro from 2010 to 2014, in whose preparation were involved the experts of IPER.