case, the optimal funds allocation has to be based on development priorities of the
municipality as defined in the strategic planning process. Municipalities that go through
strategic planning are as a rule more successful, customer-related, demonstrating
increasing responsibility for the needs of the local community. At the same time
strategic planning is a highly transparent process which makes sure that all relevant
subjects participate in planning the future of the local community.
What is strategic planning?
The following is one of the adopted and widely used definitions in projects: “Strategic
planning is a systematic process through which the local self-government, jointly with
local business subjects and citizens, identify pressing issues and set tangible
objectives, tasks and strategies in order to tackle the issues. Strategic planning can be,
for instance, applied when planning the economic development or capital investment.”
In the light of this definition, the most important elements of strategic planning are the
following:
• Planning is not an ad hoc activity, rather a systematic, continual and cyclic
process. This means that it has to be carried out in regular intervals, thus
becoming a routine activity in the operation of the local self-government
(covering the period of three-four years).
• Planning is a complex process that includes all relevant subjects of the local
community:
o Local authorities
o Citizens and groups of citizens
o Public companies
o Enterprises
Planning is a means of administration for the purpose of meeting the current needs and
solving the existing problems of the local self-government. As such it can be applied in
deciding on capital investments, public services and future economic development.
What are requisite preconditions for the initiation of a strategic planning
process?
• Adequate surrounding - political, legal and economic, with special emphasis on:
o Sufficiently wide and clear authoritisation over local resources for successful
strategic planning at the local level
o Understanding of the framework within which strategic planning should be
carried out, especially readiness to accept or realise the necessary changes
in the local setting for the purpose of correct realisation of the process
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