Evolution of projects financed by international funds in Osijek-Baranja County and their influence to local economy and social life

This paper aims to define the direct and indirect influence of projects funded by international funds to the local economy and social life in the region. The project is a series of activities that together achieve clearly defined objectives in a specified period of time and with a clearly defined budget and sources of funding. Such an inflow of capital has an impact on the local economy but also to the society itself.During the early nineties projects mainly dealt with direct distribution of goods through various chains of humanitarian aid distribution. Free food and clothing had negative influence to the retail of these goods, being a direct and unfair competition.End of nineties transfers the focus to works. Various programs for reconstruction with secure funding caused the founding of numerous construction companies and associated businesses.After the peaceful reintegration of territories direct help shifts towards services. UNHCR (United Nation’s High Commissioner for Human Rights) and various foundations financed civil associations specialized for offering various forms of legal aid. These associations point out to faults in public practices, institutions or even laws. Skill of writing projects is present in associations exclusively. Large number of associations is founded and civil society is growing.CARDS (Community Assistance For Reconstruction, Development and Stabilisation) program started at 2000. Program focuses on administration and puts pressure to associations to turn to cooperation with public administration instead of being an informal opposition. Cross-sector cooperation is developing to deal with public problems.PHARE (Pologne et Hongrie - Aide á Restructuration Economique – Program for the Reconstruction of the Economy of Hungary and Poland), ISPA (Instrument for Structural Policies for Pre-accession) and SAPARD (Special Pre-accession Assistance for Agriculture and Rural Development) programs bring concrete projects but also concrete rules for spending funds. Associations struggle to cope with complex procedures and face specialization or closing down while public administration is getting involved more. There is still a prevailing belief that complexity of these procedures makes national funding preferable. Consulting agencies for international funds are emerging. Project management relies to informal education and foreign consultants dominate. Reducing incentives in agriculture is putting pressure but adjustment to EU rules is upgrading production quality.IPA (Instrument for Pre-Accession assistance) Program comes parallel with administrative reforms on the national level. Writing projects remains a problem. Regional development agencies are founded and adjusted development strategies made to deal with the problem. Project manager becomes an occupation and formal education necessity. Cooperation becomes an obligation.Upcoming period 2013-2020 will be emphasizing cross-border cooperation and multi-annual planning. Project managers will become consultants and associations will specialize or close. Preparation for this period will mean the difference between success and lagging behind.