PETROVAC- DRINIĆ MUNICIPALITY

PLAN FOR STRATEGIC DEVELOPMENT
March 2006

INTRODUCTION

The Petrovac Municipality was founded after the Dayton Agreement out of the Bos. Petrovac Municipality. The newly founded municipality is located southeast of the Bihać - Jajce highway, around 7 km from Škrakić Hill, at the split which is about 2.5 km from the center of Bos.Petrovca.

The municipality was formed as a much needed solution to the basic needs of the residents of Serbian nationality who on September 14, 1995 had to flee from their homes and whose majority had temporarily lived in Derventa. Immediately after relocation to Derventa, a committee that tried to solve the most basic refugee problems was formed. After efforts for the bare minimal conditions of returning, 20 of the most daring already returned at the beginning of March 1996 to a demolished and ransacked Drinić, which in the Dayton Agreement fell to the Republic of Serbia. At the head of these brave people was the director of Forestry Management »Oštrelj-Drinić» Milanko Brkljač, who realized that for the refugee Serbs from Bos.Petrovca, the best option was to form a township in Drinić, so that in March 1998 the township was formed with the necessary Municipal administration.

In the beginning the problems were great; torched, ransacked, no electricity, running water, telephones, basic necessities, nearness of entity lines when crossing those lines was extremely risky, but great wishes and a greater will to return to their homes, they maintained their conviction and wishes to rebuild their homes and all that is necessary for life.

Work began on the reconstruction of homes and schools, renovation of the healthcare center, development of new facilities for the Municipal Administration Offices, post office, bank, Forestry and Farming administrative offices, police station, etc. which was the foundation of moving ahead with manufacturing capacities, afterwards commercial, hospitality and other facilities which arose from the need for satisfied residents.

In addition to the populated areas of Drinić, areas of Bunara as well as Bukovača belong to the Petrovac Municipality.

For further development of the Petrovac Municipality it is imperative to bring a strategic development plan to fruition within five to six years for this place to become a place of happy living for all its residents and for its population to continue grow in the years following. It is because of these reasons that the newly formed municipality started working on the resolution to move forward with the strategic development plan. Therefore a local development team »LRT», whose assignment was to develop the strategic plan for the municipality was formed.

After that, the Director of the Municipality contacted representatives of «EUREDA», and «Arda» from Banja Luke with the aim that these agencies could serve as expert consultants to our development team. For that purpose the coordinator whose assignment was to establish a connection between the skilled experts and the development team was assigned.

Because it was working with a relatively young municipality, »LRT» approached forming work groups with the aim of gathering as much essential data as possible so that a quality analysis of the socio-economic status could be performed. Because the Municipality existed from only 1998, it was difficult to obtain this essential data, and it was obtained mostly through directly gathering it in the field from individual workers.

On the basis of these data we will try to establish what force the Petrovac Municipality drives WEAKNESSES, POSSIBILITIES, and threats, and on the basis of those facts compose an analysis of the foundation which the following text of the Strategic Development plan of the Municipality for the period between 2005-2006 is composed.

I.GEOGRAPHIC LOCATION & NATURAL RESOURCES

I.1.Geographic Location

The municipality of Petrovac -Drinić is located in the northwest part of BiH. The territory in its longest part borders the municipality of Bos. Petrovac in addition to the municipalities of Ključ, Ribnik, East Drvar and Drvar. The coordinates are 44°34`Latitude and 16° 23` Longitude, and it is 700 m above sea level. The area of the municipality is 136.48 km2, about 16 % of the pre-war municipality's 853 km2.

From a relief perspective, the populated area of Drinić, the center of the Municipality opens up toward Bos. Petrovac to its west, bordered by Srnetica to the north, Klekovača to the south, and to the east over Kozila, the road opens toward Potok (a small municipality of East Drvar) and further toward the township of Ribnik.

The area of Drinić is situated between the Una River to its west, the Sana river to its east, and the Unac river to the south. As the Sana and Unac rivers are tributaries of the Una, the area of the Petrovac Municipalities lie in the Una river basin territory.

I.2.Analysis of the Land

Agricultural land has good analytical characteristics and makes possible the raising of almost all agricultural products. From an Analysis from the Agricultural Institute of Banja Luka, it has been established that for some parcels measures of correction are necessary with regards to calcification but with smaller doses of limestone, but for the majority of the parcels the use of lime materials is not applicable. All parcels are well supplied with fertilizers the contents of available phosphorus in 98% of the parcels is very low. The content of calcium in the majority of parcels is average. With regards to the data carried out by the analysis of the agricultural products in the municipality good conditions for:
- grass/clover mixtures,
- potatoes,
- fruit orchards and
- other farming agricultural.
Because of the land's basic shortage of available phosphorus it is recommended that NPK fertilizer with high levels of phosphorus, such as NPK 7:20:30, NPK 10:20:30 and NPK 8:16:24 are used when planting root vegetables and corn.

I.3.Climate

The climate of this territory is a temperate continental climate with occasional mountainous climate tendencies. The average yearly precipitation measured over several years is approximately 530-590mm. This climate is ideal for grasses and spring grains. The driest month is August though it can be relatively dry in July as well. The average temperature is 7.8° C. The warmest month is July with an average daily temperature 16 °C, and the coldest month is January -2,8 °C. The greatest absolute temperature measured in June and July are 34.20 °C to 35.10°C, and the lowest is in January at -24.5 °C. On average the vegetational period in regards to the temperature and precipitation is considered favorable. The total sum of energy in the long vegetational period (235 days) is around 15,918 J, but in the shorter period (156 days) it is 11,729J to 13,405J which is plenty for the intensive growth of grass and clover as well as the ripening of corn from group 100 (100 being the designation for hybrid corn of the mountainous sort and it stands for the 100 days needed from germination to ripening).

I.4.Infrastructure

I.4.1 Road Network

The territory of the Petrovac municipality is connected to the Bihać-Jajce-Sarajevo highway, at the Škrakić Hill (2.5 km from Bos. Petrovac), with an asphalt paved road which is 7 km long. It goes through the village of Drinić and continues up to the Hunter's Lodge at Veliko Vrelo for another 7.5 km. From Veliko Vrelo toward the southwest the road winds through the woods for 15 km and comes out at Runić at the Bos.Petrovac-Drvar highway. East of Drinić, approximately 3 km away lays the logging site Kozila from which the road begins toward Srnetica (formerly the site of the train station and work settlement) and continues east-northeast toward Wolf Meadow and Ribnik township where it connects to the Bihać-Sarajevo highway (near the restaurant 'Kod Babe Ruže') 5 km east of Ključ. Toward the north from the Gavrić village over the Srnetica mountains the highway exits out of Jasenovac, for approximately 12 km back to the Bihać-Sarajevo highway which is about 15 km east of Bos. Petrovac. The populated areas of the municipality are tied together with approximately 10 km of local roadways. The closest train station is currently in Ripač, within Bihać city limits, a distance of about 60-65 km, and the closest airport is in Banja Luka, which is about 130 km away from Drinić.

I.4.2. Telecommunication

Momentarily, the status of telecommunications is such that landlines and mobile lines exist, however the connections are very unreliable. The municipality is connected with Telecom RS aka CLL network. This type of connection is not fit to support the Internet reliably at this time.

I.4.3 Electric Network

The electric grid is in very poor condition. The main source of electricity comes from the Bos. Petrovac municipality via the Elektrodistribucija Bos.Petrovac division of the public utility company «Slapovi na Uni» Bihać. From the transformer in Lower Bišcan to the calculated place at the territory's border, approximately 10 kilometers of high voltage lines are in poor condition since they've been built 10 years ago. From the supply center to the center of Drinić a new 110 KV long distance power line as well as a new transformer station have been built. In the entire municipality the low voltage network is also in poor condition, however reconstruction is in the developmental phase. Reconstruction of the villages Špirića, Savuljević i Kecman Valley are scheduled for completion by the end of this year. Reconstruction of the entire grid is scheduled for completion within the next couple of years. All the newly constructed factories currently have a regular supply of electricity, but for the future and for higher demand, it is necessary to rebuild high voltage lines before anything else from Lower Bišcan to the border.

I.4.4.Public Services

Public Service Company »Uzor» has been the supplying the municipality since 2001. Uzor works alongside the local sanitation and waste disposal management. The firm is self financed and subsidized out of the Municipality's budget.

The water system is brought together by the main water distribution center that was built from sources in Ograđenica and Medenac with the help of the World Bank in 2001. The water system has partially been renovated and tied in with the few existing plumbing lines. Existing factories (i.e. lumber mills) are currently not using water in their technical process so that the existing capacity is enough to supply water for livestock and industry. A few lumber mills have started to bring in more phases of production in which they need a greater amount of water so that the need to obtain a greater capacity will arise, though some research shows that there is water on the Drinić territory, but the possibility exists as well as an agreement CONCORD with the Municipal Council in Bos. Petrovac for the Petrovac Municipality to join the Municipal Water Grid Sanica-Bos.Petrovac at Škrakić Hill.

With the exception of a few drainage pipes, a sewerage system does not exist. Sewerage is mainly released into individual septic tanks.

I.4.5 Space planning

The municipal council adopted an urban plan at the beginning of 2002 that has not yet been regulated. In the course of this year, the activities have been carried out so that the municipal center would regulate a plan of how newly constructed and renovated facilities would be able to obtain suitable, usable permits.

The survey records of land plots is kept within the scope of the Republic's regulations of Surveyor and Landowner Rights through the office in Drinić, and was based on documentation from 1953. It is planned that in the next two years, a report of the land inspections is executed and the land records verified.

The factories damaged by war have been over 90% renovated with the help of the forestry management firm Oštrelj-Drinić, resources from the local landowners, the Red Cross of the Republic of Serbia, and under the direction of the World Bank, the Headquarters for the Rebuilding & Development of the Republic of Serbia. There are no mines on the municipal territory.

I.6.Natural Resources

The Territory of Petrovac Township represents one of the richest forested territories in the Republic of Serbia as well as BiH. About 90% of the Municipality's surface, or 12,902 ha, are located here in the high forested mountains. With natural regeneration, this represents the most meaningful economic and developmental resource. Forestry is the most elemental economic branch and absorbs the greatest number of currently employed workers.

The next resource of significance is agricultural land: 620 ha of the 5th and 6th Class, 420 ha of the 7th and 8th Class, and 544 ha of unfertile land. There are plenty of pastures favorable for raising livestock in the 5th and 6th class parcels. The forests are managed by »Srpske šume»RS, and the Forestry Management Firm »Oštrelj-Drinić». The lumber industry is currently in the primary phase of lumber processing, which has developed STARTED into 8 sawmills, two of which produce a capacity of 15,000-30,000 cubic meters of product per year.

Agricultural land is individual agricultural property. Registration of the Agricultural Commission, which will have the goal to organize production with individual land owners and facilitate some new forms of agricultural operations is currently in progress.

Like any valuable resource in the territory, wildlife (wolves, foxes, grouse) exists in the adjacent forests and the 16 occupant Hunter's Lodge located in Veliko Vrelo offers good hunting for gamesmen. Also, the forested mountains in Klekovača has shown to be rich in iodine rich air which has shown to be very beneficial to those with compromised thyroid glands, therefore introducing a possibility for the development of the health spa tourism industry.

I.7.Economy

The economy of Drinić has its beginning with the return of people to the community in 1996. The first economic move was started when the Forestry Management group Oštrelj-Drinić started exploiting the various trees from the forest from the territory that they owned. In the beginning, the greatest number of workers had held residence in nearby Derventa, Banja Luka, Prnjavor, while they spent the work week in the forest of Drinić doing their jobs. The logical result of this economic activity was to establish small firms for the primary processing of lumber, but mostly sawmills for log production. Around 1977 the municipal territory had nearly 70 operating sawmills in which the cutting of logs was done manually. Then the formation of the Municipal Administration in Drinić in 2000 commenced and only those that fulfilled the necessary conditions were given permission to operate sawmills. This reduced the number of sawmills to near 20 and with the following book of regulations (issued by the government of the Republic of Serbia in the beginning of 2004) which laid out the minimum technical requirements for sawmill operations, only 9 of those 20 fulfilled the requirements. Of the nine sawmills that exist in the municipal territory today, only two manage technical personnel and other requirements that represent the real basis for the development of greater phases of lumber processing. One of these firms is «Drvokomerc» Pribinić, PJ Pilana Drinić which has employed over 100 workers, and already this year has invested in greater phases of production, mainly in drying beech wood intended for export. The second of these firms is MB Razvoj which employs about 60 workers and who have also prepared an investment program for more lumber processing which should come to realization in Spring 2006.

The remaining seven sawmills are of smaller capacity, producing from 1500-3500 square meters of logs per year.

In addition to the sawmills leading the workforce as the biggest employers, they have caused beneficial economic growth emerging from the lumber industry, such as merchants and restaurants-- mainly small businesses and small scale commercial trade, food stores, housing, etc. When speaking of the restaurants, these are privately owned café-bars. The restaurant/lodge Lovačka Kuća (owned by the Forestry Commission Oštrelj-Drinić) located in Veliko Vrelo offers attractive forested ambiance and is a plus for tourism. In the interest of increasing hunting related tourism, there are plans to build more lodging in Veliko Vrelo in the form of two new bungalows. Close to completion is another 20 occupant lodge near the Hunter's Lodge, and in the Kozila region there is a 5 HECTORE wildlife reservation. Another leading employer in the Municipality is the petrol station Drinić-Petrol that was established by Bosna-impex out of Banja Luke. With its offerings, it possible to satisfy all the gas and oil needs as well as an assortment of fill station offerings.

The work force of all the economic subjects along with the domestic population from Drinić is for the most part of Serbian nationality that have returned to the homes they fled from in September 1995 on the territory of the Bos. Petrovac municipality, but because of a lack in job openings within the municipality, they were employed by the lumber and sawmills in Drinić.

Operating in the agricultural region is unwinding in the form of farming the land and raising of livestock, but only on the privately owned farms for whom that work serves as a satisfying need for their household while a small portion of their products are taken to market. Along with this increased need for the sales of agricultural products especially healthy organic food an idea has risen that an Agricultural Committee should be formed to carry out the agricultural development in a modern business way. The role of this committee would be to market farming and livestock products as primary products and become a base processing center, like the dairy products in larger towns such as Vitaminka in Banja Luka, Agrokomerc in Velika Kladuša and Lijanovići in Široki Brijeg.

The territory of Drinić has a great basis for fruit and honey export, along with gathering, exporting, and processing of medicinal herbs, which should also with some assistance of the Agricultural Committee be marketed with intensity.

In the table below, the basic economic show of business for 2004 the plans of business for the following year for the most important economic subject in this municipality:

Firms	Total income		Realize a profit		Number of employees
forestry
Š.G."Oštrelj-Drinić	6.918.156	6.490.835	598.496	306.134	109	167
lumber industry
"Drvokomerc"	6.944.155	10.567.200	2.777.662	4.226.880	49	76
"MB Razvoj"	1.688.302	1.819.897	89.350	15.852	41	57
"DIM produkt"	660.458	739.313	181.017	150.973	17	18
"Mimag"	107.881	63.871	6.114	-12.085	5	5
"Mikitrans"	507.042	613.059	22.838	87.274	3	3
"Gradina"	203.779	169.281	9.574	9.699	7	7
SZR "Kecman"	80.000	80.000	25.000	25.000	3	3
construction
"Gratod"	3.344.275	2.857.047	31.948	25.154	21	21
SZR "Konstruktor"	-	27.689	-	-		1
store
STR "Nada"		80.000				1
STR "Palam"		17.688				1
STR "Boki"	13.291	8.209			2	2
restaurants
SUR "Kod Likote"	9.673	12.893			3	3
TOTAL:	20.477.032	23.546.982	3.713.999	4.834.881	260	365

From the above table it is obvious that the biggest and most basic economic activity unwinds into the lumber production that has a base of raw material from forestry, which along with planned deforestation, is engaged in preservation and regrowth of a variety of trees in the forest. The total income, realized fain, and number of employed workers observed are given in two columns for 2003 and 2004.
Ascertain that it is total whole profit is significant observed economic subjects in 2004 grew by 15%, profit by 30%, and the number to employed by 40%. From this data it can be concluded that the observed manufacturing firms can invest in the next period out of the actual profit.

That activity can be noticed from the blow table, which is put together on the basis of data, which have been obtained from the observed firms.

From the above chart we can conclude that the firms in the lumber industry will change the economic activity in the next years of planned investment in new investment which will have the result an additional 268 workers employed of which 80% will be used by «Drvokomerc which has grown into the leading firm in the lumber industry not just in Drinić, but also in a wider area of BiH.

The economic structure of the municipality of Petrovac-Drinić can be evaluated as a positive as a newly founded municipality the economic development has started with development of the production capacity in lumber processing which has a raw material base in the forest as so the basic/essential resources of the municipality.

Currently the only favorable public activity in the municipality is carried out by the Public Utility Uzor which manages the local water grid/ plumbing system and the disposal of solid waste mainly sawmill refuse.

It is logical to expect that in the years following that the remaining favorable activity will start intensive development even more so trade, hospitality then also favorable skills which will be supportive to the lumber industry.

I.8.NON ECONOMIC ACTIVITY

All non economic activity which are unfolding in the municipality have become and are developing along with the formation of the municipalities directly as leaders and coordinators of all the economic and non economic activities in the municipality. Along with the administration which has been organized in a unified entity municipal administration, are important segments of life as a whole in the municipality are: the Drinić healthcare center, the Drinić Elementary School, the police station, Hypo-Alpe-Adria bank, PTT RS (Republic of Serbia Post Office), Republic's Survey and Landowner's Rights office, health insurance administration, Republic of Serbia's telecom office, the RS tax office, the RS weather station, the Municipality's Red Cross organization and the following non-government organizations: the veterans organization, the youth organization LET», the sports club, the hunters association »SRNDAĆ» and the association or retired persons.
Healthcare & Welfare, education, culture and sports, and municipal administration will be further analyzed.

I.8.1 Healthcare & Welfare

I.8.1.1.Healthcare

Petrovac-Drinić Municipality was established in the Post Dayton Agreement period so in regards to that it falls in a relatively young, small & distinct undeveloped municipality, and therefore the healthcare system is not well developed at all. It started with an ordinary poorly equipped clinic and with one midlevel medical worker. Today that same clinic has grown to become the JZU Healthcare Center which is like the one registered July 2000 with several highly skilled specialties-18 house and visiting employees.

Healthcare in the municipal territory is exhausted thru primary healthcare in reference to the healthcare center until secondary healthcare is used in Mrkonic Grad and finally in the Clinical Center in Banja Luka.

The healthcare Center operates in a small, cramped space. Healthcare activity unfolds in a building that 75.8 m2. The administrative portion is in the Municipal Administration building and is 16m2, the Ultrasound area is 18 m2, and the office space for doctor and nurse are on the first floor of the building where medical services are rendered is 76.5 m2. The health center also uses 2 garages for medical vehicles.

The entire space is hardly enough to render all the healthcare activities necessary by normal standards that regulate this field.

The entire space is hardly enough to render all the healthcare activities necessary by normal standards that regulate this field. The technical equipment followed the development of the health center and it currently owns: 1 EKG machine, 1 Reflotron machine for the laboratory, 1 TWINKEL for the laboratory, 1 oxygen machine, 1 completely outfitted dental office, 1 CITROEN JUMPI vehicle used as ambulance, 1 computer with printer, 3 blood pressure cuffs, 2 dry heat sterilizers, 1 autoclave, 1 ultrasound machine
In the future it is necessary to obtain the following equipment: 1 x-ray machine, equipment for ob/gyn emergencies, and an all terrain vehicle for emergencies.
The financial foundation of the healthcare center is a public fund from health insurance which finances only the most elemental activities and even those are suffering. One part of the financial resources supplied is fro the founding municipality, but even those resources are minimal so that even the PARTIPACIJA supplies a portion.

The healthcare center employs one general practioner and five rotating doctors, three nurses, an administrator, a financial manager, an administrative assistant, two ambulance drivers, and one maid.

From the previous statements, it is obvious that the health center has made a solid move forward in the past 5 years, but in the years ahead it will be necessary to obtain, more space, equipment, and staff.

According the data, the office of healthcare insurance in Drinic has 2,267 users of health insurance.

There is a small number of poor within the municipality who are a burden of the healthcare center even though it isn't foreseen in the regulations, the healthcare center is not a welfare system.

The healthcare center as accepted the concept of family practitioners and it has started to train the personnel in that direction.

I.8.1.2 Welfare

The municipality does not have any minors registered who need protection in regard to Welfare Law-this meaning children without parents, children who are physically or mentally developmentally challenged, children whose development is endangered by their domestic life, or neglected or abandoned children.

When we are speaking of people of legal age, again there are no registered welfare users. This meaning those who need financial assistance because they are incapable or unable to work, those who have no income of their own and have no relatives obligated to support them as determined by family law, or those who live below the poverty level.

Welfare in accordance with Ammendment 19 of the Welfare system is distributed from the Municipality's budget twice a year in the form of monetary assistance to the household in the amount of 205 KM, and in extraneous circumstances that assistance can be greater if it is decided by the authorized person of the welfare organization which enforces this rule. In 2005, three such assistance checks were distributed.

In the municipal territory, doesn't exist any of social establishments circumstances of not one of these types, but in the circumstances of eventual need, the service of the establishment in the Republic of Serbia will be used.

I.9. Education

Education in the Petrovac - Drinić municipality is organized through the Elementary Education Institute which was formed in the 2000-2001 school year at which time 72 students were enrolled. The job of educating the elementary school students was accompanied by difficulty due to inadequate and insufficient space for the students as well as a lack of students and teachers (staff). Meanwhile with thanks to the municipality's chief's understanding and support and the Forestry Managements Administration, every year was able to achieve more staff, as well as student and staff transportation from Bos. Petrovac, even transportation for staff from Drvar.

During the 2005-2006 school year, the elementary school had 71 students, 2 teachers, 5 instructors, principal, and 2 housekeepers.

After finishing elementary school, the majority of students continue to secondary school in Bos. Petrovac. Here they can enroll in general studies, economics, forestry, and 2 or 3 other specialties depending on the students' interests.

As far as secondary education is concerned, it would be beneficial to achieve a tighter collaboration with the directors of the Bos. Petrovac Municipality, administrators at the mixed middle school, and the authorized ministry of the Una-Sana County. How in the next several years will the students which will be needed for the economy of this municipality, like the lumber workers, tourist agents, farmers, machinists, skilled labor etc.
Also in the following period the municipality must allow in its development plan for highly skilled workers that could regulate the distribution of stipends for these skills, which are most important to their municipality and its economy.

I.10.Culture and Athletics

As the Petrovac municipality was established in the post Dayton period it falls into the category of smallest townships in the Republic of Serbia, though it is spacious as well as populated. Life started practically from the ashes because for the time of war, especially when mid September 1995 the people had to flee Drinic, as well as the whole Bos Petrovac territory, almost 100% of the housing fund was devastated as were the buildings in the town center. With regards to this fact, culture and sports has completely slowed down. A sports club was introduced but in the beginning it wasn't a priority since the priority was to develop the economy. Therefore culture and sport are a widespread and big problem and it is as if a "baby in swaddling clothes".

I.10.1 Culture

Currently our municipality does not have a cultural center nor anyone employed in the cultural field nor a space devoted to that purpose. Of Cultural institutes, only the school library that is used by the elementary school students and teachers is worth mentioning, but it is rarely visited by the remaining residents.
In the folds of the school, an assembly hall exists in which the municipality and some enthusiasts occasionally organize a book reading or concert. Recently a folklore ensemble has begun for the elementary school children that can be the foundation for further development of cultural contents of the field of folklore and music along with adequate support f appropriate costumes and musical instruments.

I.10.2 Sport

As in culture, likewise in sport-the problems are similar if not the same. The municipality helped obtain association with sport that needs to be a leader of development in the field. The association has already shown itself through the organization of the Zoran Stoisavljević memorial football tournament which brings together 8-10 years every year, from our Municipality as well as the surrounding townships. The association has initiated the upkeep of the football matches between veteran footballers of Petrovac and Drvar, alternating between the villages each year. Similar matches occur between the veterans of Petrovac and Čelarevo, where a majority of displaced Petrovacans of the Second World War colonized. Joining the veteran players at these matches is a number of younger players which are showing a greater interest in sports.

It is also worth mentioning that at the site of the Hunter's Lodge in Veliko Vrelo there is a small court for mini football, hand ball, and volleyball. This is a good start for the future of sport in the municipality. Currently there are no registered sports clubs in the municipality. As states, sports are not yet developed but serious assumptions can be made that it could be the main gatherer and positive educator of the youth.

I.11.Local Administration

The local administration of the Petrovac Drinić municipality is organized thru the Municipal Board, the Municipality Administration and the Mayor. The Board has 11 board members, which, based on the foundation of their developmental plan, discuss, decide, and bring to resolution all the matters important for the life of their residents and development of the municipality.

The Chief of the municipality was chosen immediately after the 2004 Election and is concerned with carrying out the Boards decisions, but the execution of governmental functions is done thru the Municipal Administration which employs 12 employees. In addition to the Chief, the following positions are represented: Secretary of the Municipal Board, Financial Administrator, Cashier, Social & Veteran Administrator, Registrar, Public Inspector & Urban Development Administrator, Economic Administrator, Technical Secretary, 2 drivers, and one janitor.
The Municipal Administration Office (MAO) is a united entity without offices and departments which the Chief directs. Currently the MAO contains the following: 2, 4, 1, 2, 1, and 1. In addition to the cited functions with the MAO performs, there exists the need to occasionally hire a business commissioner and sanitation inspector.

In possession of the MAO are five computers that are not networked. Each administrator works separately, and from respective software they have programs for bookkeeping, Disabled veterans, welfare, and Election Board BiH ballots. The possibility of being linked to the Internet exists but because of poor telephone connections that attempt failed.

I.12.Demographics and the Job Market

The population of one local community represents the greatest worth in its development and has two roles: the role of producers and the role of consumers. Observing the demographic picture and the job market in the Petrovac municipality requires a short review of history. That is to say that it is familiar the Petrovac Municipality became through the division of Bos Petrovac be cause of the Dayton Peace Agreement. Seventeen percent territorially of the Petrovac Municipality is owned by the RS, and the county seat in the village of Drinić which, in the Municipality, includes the greatest part of the territory, as well as the greatest part of residents. If two previous census reports are observed, those from 1981 and 1991 then it can be concluded that the number of residents is decreasing. There were 16,374 residents reported in 1981 and 15,552 in 1991. The village Drinić has the same tendency even though it was part of the Bos. Petrovac municipality: 400 residents in 1981 and 362 residents in 1991. .

The Petrovac Municipality was founded as a need for the worried population of Serbian nationality in Derventa (the place where the greatest numbers of Petrovcani Serbs found accommodation).It is known that reporting residents after the war did not happen so that the Municipal Administration Office of Petrovac Municipality because of the need for a real budget and development plans carried out an unofficial report and confirmed the following December 31, 2004:

-population with permanent resident status 376
-population with temporary resident status: 1250 (mostly from the Bos. Petrovac municipality)

The demographic breakdown of the 376 permanent residents is as follows: 191 males, 185 females, 119 employed, 62 unemployed, 111 retirees, 9 college students, 55 elementary/secondary school students, 20 children under 6 years of age Demographics by age: 95 under 18 years of age, 161 between 19 and 50 years of age, 120 over 50 years of age.

Demographics by skill level: VSS 14, VŠ 17, VK 8, KV 40, SSS 131, OŠ 70 and without school 32.

Demographics by industry(does not necessarily give a clear picture of the population because there are 504 workers within the territory): 167 Forestry, 224 Lumber processing, 21 Construction, 5 Trade, 8 Hospitality, 5 Public Service, 3 Banks, 10 Healthcare, 13 Education, 12 Government Administration, 7 Law Enforcement, 28 other

Data regarding the unemployed can be taken with reserve since many don't report to the Employment Bureau because they don't trust that the bureau can ensure a job. Like wise the data for the employed may not be accurate since there exists a number of unreported workers ('under the table' workers). On the basis of the data, it can be concluded:

-the number of employed workers in the Municipality is greater than the population of permanent residents in the village,

-in the majority of firms, the management isn’t trained enough for current conditions of the economic market,

-workers in firms, establishments, and local administration are not outfitted with modern conditions of business (information/computer technology, knowledge of foreign languages, etc.)

-to create conditions for new job positions like those from the Drinic Bureau as well as the surrounding municipalities, mainly from the Bos. Petrovac municipality