Strengthening the Competitiveness of the Montenegrin Economy

Integrated Local Development


This project has been implemented by UNDP and Ministry of Economic Development and Tourism of Montenegro, based on a co-funding principle between both parties, since 2013. Our joint goal is to further improve the sustainable and inclusive development at the local level for the purpose of delivering better quality of services to citizens in a cost-effective manner and enhancing competitiveness of economy. 

Please describe how the project aims to address the issue and create impact. Please make sure to include gender related information where possible! This could be done within any section which is most convenient, not necessarily this one. 


The overall objective of UNDP and its integrated approach to the capacity development at the local level is to contribute to achieving the key national priorities on the way towards EU, related to smart, sustainable and inclusive development and continued growth at the local level, in order to deliver better quality of services to the citizens, in a cost-effective manner. For efficient implementation of this objective, the good governance, as well as increasing transparency, accountability, and quality of institutions in the public sector is a precondition.

In order to respond to these challenges, UNDP Montenegro is supporting the Ministry of Economic Development and Tourism in several areas:

  1. Expert support to the preparation of legal, strategic and policy documents in the field of entrepreneurship, competitiveness, regional development;
  2. Consultancy assistance in the area of strategic planning at the local level;
  3. Technical support to the implementation of the Programme for Improving Competitiveness of Economy in Montenegro consisting of several programme lines of financial and non-financial assistance to entrepreneurs and MSMEs;
  4. Expert and technical support to the process of national brand development;
  5. Raising professional capacities of the Ministry’s staff through targeted education and training.  

Project Outcome

  • Development of Strategy for Development of Micro, Small and Medium Enterprises in Montenegro (2018-2022), Strategy for Life-Long Entrepreneurial Learning (2020-2024), Strategy for the Development of Women’s Entrepreneurship (2021-2024);  

  • Drafting of the new Law on Regional Development;  

  • Preparation of the Guidelines and Programme for the Revitalization and Development of Processing Industry;  

  • Provision of support to the Montenegrin municipalities in the preparation of the Strategic Development Plans;  

  • Upgrade and maintenances of Software for allocation of subsidies during COVID pandemic and Software for online implementation of the Programme for improving competitiveness of economy;  

  • Preparation of the Final Report on the Implementation of the Regional Development Strategy of Montenegro (2014-2020);

  • Ongoing support to the Ministry of Economic Development and Tourism in the preparation of the updated Decree on the Methodology for Calculation of Competitiveness Index of Local Government Units in Montenegro and Calculation of New Competitiveness Index in line with the updated Decree;  

  • Support to the implementation of Cluster Support Programme through the provision of consultancy assistance to all interested clusters in the preparation of project documents and reporting from 2014-2019.

Major Achievements

The project was subject to the external assessment conducted by the Independent Country Programme Evaluation on the 1st of November 2020, which particularly acknowledged “UNDP’s knowledge generation, policy advice and convener role (…) in the process of development of strategies, which create important foundations for further investment in the improvement of business climate, entrepreneurship, competitiveness and lifelong learning, particularly the promotion of entrepreneurship among women and youth and private sector growth”.


Montenegrin municipalities have received expert support from the Ministry of Economic Development and Tourism and UNDP in the preparation of the Strategic Development Plans


Strategic Development Plans were finalized and adopted so far by the relevant municipal assemblies