The partnership between the cities of Buzet, Labin, and Pazin, Croatia and the cities of La Grande and Pendleton and Union County, Oregon was initiated in October 2004 as part of the second phase of U.S. Agency for International Development/Croatia's Local Government Reform Program (LGRP II). 

Buzet, Labin, and Pazin are historic cities located in the interior of the beautiful Istrian Peninsula of Croatia. As they transition from a socialist system based on large industrial and manufacturing employers and strive to become competitive in a global market economy, attracting investment and creating new jobs - especially in the small and medium enterprise sector - are major challenges, limiting their tax base and ability to provide quality services and infrastructure to their citizens.  All three cities are engaged in a range of activities to retain and attract businesses, including financial assistance through low-interest loans, establishing small industrial parks, and promoting business incubators.  However, they recognize that they lack a coherent, comprehensive approach that ties all of these initiatives together.  They seek to identify additional tools and partners in their economic development efforts, and to develop a regional strategy that will help them market their communities to potential investors and more effectively collaborate in growing their economies.  

As small communities that have struggled to restructure and diversify their economies in the face of the declining timber/wood products industry on which they have historically depended, the NE Oregon cities of La Grande and Pendleton, and Union County share many of these challenges with their Istrian peers. Through strong regional collaboration, creative public-private partnerships and support from organizations like the Northeast Oregon Economic Development District, they have been able to develop effective strategies to promote economic growth and job creation, and their experience offers useful lessons for Buzet, Labin and Pazin.

The partners have developed a work plan around two core objectives:

• The development of a comprehensive economic development strategy for each of the three Croatian cities that builds on their respective assets and resources to foster sustainable economic growth and job creation. 
• Crafting a regional marketing plan that capitalizes on the region's strengths and comparative advantages and identifies strategies and actions that the cities can take to encourage greater cooperation and collaboration in promoting the region as a good place to do business.

While the primary focus of the partnership is on providing support to the Croatian cities, the NE Oregon communities recognize that there is much they can learn from their Croatian peers, and have identified early childhood education and tourism as two areas of special interest that will be examined over the course of the program.

Over the course of the next year and a half, they will work towards achieving their partnership objectives through additional technical exchanges and ongoing communications.