Public Administration Reform and Local Self Government

Transcription

1 Public Administration Reform and Local Self Government List of Contents Public Administration Reform...1 Introduction...1 Overarching values and characteristics...2 The challenge...2 Current status...3 Internal and external factors of administrative reform...5 Future policy priorities in the public administration field/policy outputs...5 Conclusion...10 Local Self Government...11 Introduction...11 Current status and challenges...12 Future policy priorities...13 Conclusion...16 Appendix 1: Key stakeholders of the reform:...17 Introduction Public Administration Reform The process of transition requires the reform and modernisation of most aspects of public administration and service provision. By reforming the civil service, improved coordination and coherence will be achieved in the field of policy formulation, greater accountability will be introduced vertically while the quality of service provision will be improved. However, in order to bring this about, various steps, presented in this documented, should be followed. From the very beginning, the Government of Serbia is committed to the overall reform of society, based on democratic principles and values. One of the areas requiring reform was public administration, which was under the burden of the relics of a post communist system. When the Government was established in the beginning of 2001, the responsibility for public administration was within the competencies of the Ministry of Justice and Local Self Government. This changed in 2002, when the new Ministry for Public Administration and Local Self Government was established. This change resulted from: Lack of overall progress and unclear responsibilities in the field of public administration reform The Government s strong commitment to undertake and implement the reforms in this field; Need for a more efficient and transparent co-ordination of all activities and bodies in the public administration area; Commitment to determine and apply new methods of work. Public Administration Reform and Local Self Government 1

2 Public administration reform is critical for achievement of the three fundamental objectives of the Serbian policy: the transition to a market economy, stable democratic order and integration into the European Union. Overarching values and characteristics Currently, Serbia is on the path of becoming the full member of the European Union, through regional co-operation and a complex Stabilisation and Accession process. To be able to achieve this, the Government, as the executive power, needs to be organised and work in accordance with the following values: Democracy decisions made by the public administration must reflect the will of the political leadership; Rule of law administrative decisions must be authorised by law, predictable and based on the principle of non-discrimination; Efficiency there must be correspondence between the Government s statements and actions, coherency across the different parts of the government institutions, both in implementation and opinions, and appropriate use of resources in order to solve problems at hand; Expertise the executive power should have the available resources and the access to use the needed expertise in various fields. Additionally, Serbia as a young and progressive democracy, wishing to develop an efficient administration, should aim to align itself with the following features that generally characterise a western- European democracy: The constitution should ensure the Government the necessary freedom to organise its activities, structures and staff, through a clear separation between executive and legislative powers and mandates; Procedures that are enabling the assessment of financial, economic and social impact of policies, measures to be implemented, reform and introduction of legislation, regulations and statutes, ensuring that they are sound from a technical, political and legal perspective; Government organisation that is transparent and which enables efficient co-ordination between ministries and institutions and clear links between budgeting, prioritisation and public expenditure management, giving the Prime Minister the sufficient authority to assume the political leadership of the Government and the collective responsibility of the Government; Capable and effectively organised ministries which will give ministers and other politically appointed staff, time to focus on the policy evolution process, drafting of plans, strategies, legislation and regulations, as well as their implementation; A public administration which, based on a framework of precisely defined legal structures, is given a certain degree of management autonomy in order to complete the tasks in the relevant areas. A civil service which loyally implements government policies, while the hiring and dismissal procedures are governed by laws, based on human resource management policies, merit, skills, motivations, personal features, etc. The challenge A decade of isolation and political turmoil adversely affected the key Serbian Government institutions. The previous regime left Serbia with a legacy of politicised and inefficient Public Administration Reform and Local Self Government 2

3 administration, ill-suited to performing the framework-setting role that public administrations are expected to play in a modern democracy. The role of the government sector has fundamentally changed with Serbia s transition to a market economy. The role of the state sector, and thus the aim of public expenditure, has changed from provision of all economic and social services, to: (i) ensuring an appropriate legislative and regulatory framework for economic activity, particularly in the private sector; (ii) providing an enabling environment (e.g. through reducing unnecessary bureaucratic impediments) to facilitate a vibrant private sector development; and (iii) either contracting or being the direct service provider, in areas in which the market fails to produce the right level of services at socially acceptable prices (e.g. public health services). This implies a close partnership between all stakeholders, including all levels of government, private and civil sector, including media, labour unions, employer associations, NGO, etc. Such a government need to be result-oriented, transparent and accountable, both with regards to delivery of services and the effective use of public resources. This implies the need to set clear standards within each domain of public activities and continuously monitor the implementation of activities and projects. The main goal of public sector activities is to meet citizens needs. This implies active participation of citizens in the process of designing, implementation and monitoring of services. Therefore, there is a need to shift from a client based approach, to a customer based one. Successful functioning of the whole system implies partnership and collaboration at all government levels (central and local), as well as the teamwork. These relations imply decentralization of competences and finances, strengthening of the rule-of-law state, market model of economy and market principles. A well-organized and competent public administration is a key factor for a successful integration into the European Union. The European integration is probably the most vital catalyst for reform of the public administration during the coming period, due to both its importance and the massive task of making the all-legislative and administrative procedures compatible to EU standards and the acquis communautaire. Current status Development of the public administration of Serbia, despite the significant steps initiated toward its transformation, as well as creation and stabilization of democratic institutions and civil society, is still lagging behind. In comparison with the Western-European Parliaments, the Serbian National Assembly seems to enjoy a number of opportunities to intervene in the Government- constitution process and its working methods. This makes it difficult for the Government to adapt its organisation and working method efficiently to a very dynamic environment. As in many Western- European countries, the Serbian Government s functions are heavily regulated by written rules. Nevertheless, in Serbia, a large number of these regulations are laws, not regulations determined by the Government. The relative large number of ministries and the congestion within certain areas (economy), indicates that there is a need to review the structure of ministries. Public Administration Reform and Local Self Government 3

4 Weak central government co-ordination mechanisms, limited capacity within the General Secretariat to support the leadership functions of the Prime Minister and the Government, in their collective efforts as a united body, make it difficult to co-ordinate, oversee and ensure accountability. There is weak co-ordination of initiatives, projects and information flow within and across sectors, as well as between governmental agencies and ministries working within the same or related fields. Since it has been important to launch reforms quickly in many individual areas of the administration, adequate attention may not always have been given as to how various measures affect each other and the total effect thereof. As a result, a large number of new bodies and agencies has been established, rather than restructuring and adapting the existing administrative structure. Consequently, in some cases, this has resulted in more complex administrative structures, overlapping responsibilities and unclear decision making. Efficient and rapid implementation of new and revised legislation would ensure sufficient and clear institutionalisation of the reforms. Ministry structures ill-suited to the needs of the public sector in a market economy. Technical work is overemphasised and relatively limited attention paid to policy and strategy development. The lack of independent civil service, hinders stability in ministries and makes undertaking the changes in management structure over the medium-term, difficult. Frequent changes at the top (minister level), often lead to changes in the senior managerial ranks (e.g. assistant ministers and to a lesser extent department heads). It is difficult for senior management to propose and implement institutional reform if they (and their staff) know that they may not be in post in 12 months time. High turnover of staff results in ministries and agencies being unable to hold on to key skills, particularly in new skill areas. This is due primarily to the poor level of salaries public sector. Highly skilled staff, particularly senior policy making and managerial staff, tends to be tempted away by the private sector, aid agencies or technical assistance projects and assume the consultancy work. There is a lack of appropriate technical skills to match the new roles required by market reforms. This shortage of skills is exacerbated by the high turnover of staff, with the highly skilled staff tending to leave the public sector faster than the other. Due to limited resources for fulfilling the task at hand, unclear delegation of responsibility, lack of professional development and carrier opportunities, as well as frequent changes of senior staff, motivation in parts of the civil service is taking a downturn. This is exacerbated by the lack of a functioning and neutral staff recruitment and promotion process. There is old fashion management in ministries/agencies, which tends to be dominated by a hierarchical and command-and-control approach, as well as the lack of transparency and coherence in decision-making processes. Staff training does not tackle core problems. The experience of other countries in transition shows that the reform of a state administration is the most difficult to carry out and the most time-consuming, not only because of the resistance of the bureaucracy protecting its interests, but also because too much attention is given to the re-organization and too little to the general re-education and training of administrative personnel for the new mission of the state administration. Public Administration Reform and Local Self Government 4

5 Internal and external factors of administrative reform Planning and carrying out of the administrative reform is based on the results of a systematic research of internal and external factors affecting it. Internal factors The current domestic political situation makes it challenging to develop and launch comprehensive public administration reforms and initiatives; Inherited legal, political, organizational and administrative discipline; Economic potential and needs; Absorptive capacity of personnel involved in change; Administrative process: what constitutes mission, values, objectives, activities and tasks to be performed by administration; Innovative performance, courage, motivation and determination, reasonable risk-taking capacity; Administrative culture and managerial skills of the key personnel; Ethical standards, mentality and social values; Readiness to implement the new methods of functional review and organizational analysis - systemic, horizontal, vertical - and willingness to introduce the recommendations. External factors As previously mentioned, harmonization with the system of EU legislation, acquis communautaire, is a very challenging task. The system of the European legislation does not always contain direct requirements for harmonizing the internal administrative law with the European administrative law. However, the respect of the rules and standards set by international agreements is required (Maastricht, Amsterdam, Nice, Copenhagen criteria, etc.). Additionally, the public administration reform in Serbia will be affected by the following external factors: Obligations stemming from the membership in international organizations: UN, World Bank, OECD, OSCE, etc; Familiarity with the modern organization, functioning, ambient and operating conditions of the state administration and public services in developed countries, Readiness to introduce new managerial methods and techniques General acceptance of the standards of participative and partnership democracy, efficiency and effectiveness coming into being in Europe, The use of successful experience and best practice of other transition countries. Future policy priorities in the public administration field/policy outputs Definition of Public Administration Reform Strategy Strategy of Public Administration Reform is the main document which should lay down the objectives to be achieved as well as the concrete steps and measures for their fulfilment. It should emphasise two main points customer oriented public administration and efficient and effective public administration. Progress made and steps to be taken: Public Administration Reform and Local Self Government 5

6 Draft strategy is being prepared and is expected to be adopted by the Government within the next 3 months; The Government will consult relevant stakeholders during the drafting process. Review of core functions for all ministries and departments and the Government as a whole, in order to reflect the move to market economy. Transition to market economy as the precondition for the future accession to the EU but also a parameter for the economic recovery of the country, entails the redefinition of functions of Government and all line ministries, in order to respond to forthcoming challenges. Establishment of the new Ministry for Public Administration, and other relevant bodies in the reform; Formation of reformist teams in ministries and the Government, and Administration for common affairs of republic organs, with a task of directly performing activities in the process of reforming public administration; Successful completion of transfer of competences and employees from the federal to republic level after the adoption of the Constitutional Charter; Legislative reform. The new constitution of Serbia needs to take into account the new functions of the Government and the public administration and ensure that the responsibilities and obligations of the Government, Parliament and the Judiciary are clearly defined. In this context, it is important that the Government is given the necessary control of the organisation and management of its resources; Functional analysis of work of all ministries and execution of all duties from prescribed field of work, would create the basis for carrying out the steps mentioned below; Redefinition of the role and functions of the Government through adoption of a new Law on Public Administration and Law on Government; Adjustment of organizational structures to reflect new functions and enhance the efficiency of the ministries; Establishment of a set of explicit standards and goals for all ministries and departments, as well as the appropriate revision of their performance. Strengthening of the central Government co-ordination functions - accountability Strengthening the central co-ordination mechanisms of the Government, including the support function of the PM and the Government, with the objective to facilitate the effective and efficient performance of the Government collective duties, is of a great importance. As public administration involves all line ministries and special organisations, the inter-ministerial coordination becomes very important, especially in the preparation of laws which intersect with different ministries. Definition of the new Administrative Legal Framework; Creation of a new Sector for Human Resource Development and Project Coordination in the MPALSG; Initiative for the establishment of the Public Administration Reform Council. Public Administration Reform and Local Self Government 6

7 Strengthening of the General Secretariat/Cabinet to ensure coordination across departments and issues: regularised meetings for policy formulation and review between civil servants from line ministries and civil servants/advisers from secretariat general / PMs office; Using ad-hoc inter-departmental operation working groups, composed of civil servants on cross sectoral issues: e.g. children (ministries of health, education, social welfare), trade (ministries of industry and commerce, finance, foreign affairs). Formalising the system of working groups and ensuring the results feed into work of relevant ministries. This cooperation is very important in the preparation of relevant legislation; Institutionalising regular meetings of ministerial advisers in order to reach agreement on different issues, before the collegial meeting of the cabinet. Reform of public expenditure management Experience from other transitional countries has indicated that a rapid increase in the efficiency of the public expenditure management, has proven to be valuable. This is especially important for Serbia and Montenegro, considering the inherited weak financial management. This question became even more important with the transfer of competences from the federal to the level of member states and with the new financial system of local bodies. Law on Tax Procedure and Tax Administration; Budget System Law; Law on the National Bank; Law on Public Procurement. Decreasing the number of employees, where appropriate; Improving the budget control; Reform of financing of local governments; Computerisation of work, resulting in its rationalisation. Promotion of modern management The introduction of modern management practices in the public administration is a critical element of the overall public administration reform. Definition of the new Administrative Legal Framework; Definition of adoption and implementation strategies for the Administrative Legal Framework; Creation of a new Sector for Human Resource Development and Project Coordination in the MPALSG; Change Agents for public administration reform in most key ministries. Devolving of responsibilities: disaggregating the units (need for unbundling the monolithic, centralised ministries into smaller units, operating on decentralised budgets and with greater autonomy), e.g. utilisation of existing local government structures to decentralise particular services; Public Administration Reform and Local Self Government 7

8 Central ministry should be the core of strategic policy-making, whereas local government would represent a larger decentralised operational periphery; Movement away from centralised command and control of central ministry to new management styles; Output defined performance- setting out the explicit standards and measures of performance: defining goals, targets and indicators of success, and providing greater accountability with setting out clear statements of goals and objectives; Improvement of the managerial control through clear lines of accountability and authority, as well as the establishment of mechanisms for constant monitoring of performance. Change from control-oriented to service-oriented system Shift to control-oriented service in public administration is the core of the reform of public administration and a ratio behind the functioning of public administration. The public administration was until very recently, perceived as bureaucratic machinery inaccessible for citizens to achieve their rights. Revision of legislation in this field; Simplification of administrative procedures for achievements of citizens rights; Increased use of information technology to store and transfer information; Improvement of inspection of work of administrative bodies; Focusing on service provision and quality, with a mechanism for reflecting user concerns within the management process with need for participation and accountability; Improvement of transparency and user friendliness of service provision. Improvement of administrative supervision This policy priority becomes very important in transition countries, with the high level of corruption and inadequate protection of citizens rights. Anti-Corruption Council was established; Draft Law on Ombudsman is in the parliamentary procedure; Public Procurement Law was adopted. Establishment of Ombudsman adoption of a Law on Ombudsman, its implementation and building of adequate infrastructure; Legal reform adoption of new Law on Public Administration, including provisions on independent administrative inspection, attached to the Government and not within any Ministry; Improvement of relationship between the Government and the Anti-Corruption Council, considering the current lack of coordination between them; Adoption of the Anti-Corruption Strategy. Strengthening of administrative capacities through training programmes With regards to the personnel policy, the undertaken reform activities were oriented towards the creation of professional civil service, through training of candidate and civil servants for work in public administration, promotion of civil servants and the motivation of employees. The result should be the improvement of the overall efficiency and effectiveness of work, in the direction of creating a new profile of administrative employees. Public Administration Reform and Local Self Government 8

9 Significant number of training programmes were organised with the aim of developing skills of civil servants. These programmes were organised in almost all line-ministries, in numerous areas such as the languages, IT, HRM, project management, basis of the EU and EU law. However, this practice should become compulsory, with improved co-ordination and targeting, as well as the implementation of the acquired knowledge; Law on Amendments and Modifications of Law on Labour Relations in State Bodies. Strategy of education of civil servants on central and local level; Organisation of permanent education of civil servants thorough training programmes. Reform of human resource management and policies Professional, effective and efficient administration entails competent, motivated, loyal and politically neutral civil servants, who work in a well-organized system with the aim of serving the public interest. It is necessary to move towards creative, flexible performance and introduce a management role instead of an administrative one. Law on Amendments and Modifications of Law on Labour Relations in State Bodies; Reform of central administration (APAD). Career development (introduction of grading system establishment of criteria); Changing of recruitment procedure - attraction of civil service by stressing public service and introduction of merit based recruitment, not subject to dismissal on political grounds in politicised bureaucracy; Senior departmental civil servants should be given greater responsibility for running departments, while maintaining an emphasis on performance; Attempt to increase publicity, in order to improve public perception of civil service career; Improvement of working conditions and salaries. E-government E-government is an inevitable parameter in the reform of public administration. It is a precondition for the catalyst for the creation of client-oriented system, quality decisionmaking, efficient human resources management and use of modern working methods. IT networking in public administration; Development of Intranet in some ministries; Launching of web sites of the Government and most key ministries; Organisation of training courses for civil servants; Purchase of IT equipment; Support to the Serbian IT Agency to develop an IT strategy and make and inventory of existing resources; TA to MIER Development and Aid Coordination Unit. Public Administration Reform and Local Self Government 9

10 IT networking and creation of IT infrastructure; Training of personnel; Organisational changes within government; Improved information sharing through IT within departments; Improve the provision of basic information / services to clients online. Improving partnership with non-governmental organisations The role of non-governmental organisations in Serbia is still undermined and their contribution to the overall reform of public administration is not clear and appreciated enough, which again depends on specific ministries. Partial participation of NGOs in the drafting of laws regulating the public administration field. Emphasis on knowledge sharing; Effective communication with all actors of public administration reform; Raising of public awareness. Conclusion The reform of public administration in Serbia is a continuous and a long-term process which involves the Government and other state bodies. However, it is conditioned by the overall dynamics of other economic and social reforms, and the organisation and management of all three branches of the government. Steps to be taken are examined in this paper. Public Administration Reform and Local Self Government 10

11 Local Self Government Introduction Many of the issues and considerations related to the management, structures and capabilities, discussed in connection to the central public administration reform also apply for the Local Self Governments. Unfortunately, due to the traditionally weak capacities within many LSG, the challenges facing the local level of Government in many cases are more overwhelming than on the central level. As a result in many municipalities, no comprehensive local development or reform initiatives are currently undertaken. With the decentralisation of governance, the development of functioning democratic mechanisms and institutions on the local level, is critical to the democratic and efficient transition of Serbia. The reform of municipal administration must also be intensified as they in many cases are organised in an obsolete manner, using outdated methods of work, operating with inadequate capacity and poor equipment. Municipalities will also be given more financial autonomy in an effort to create greater incentives to improve management systems. The Government of Serbia is in the process of implementing the administrative reform that will decentralise the administrative system as well as financial resources. The adoption of Law on Local Self-Government in February 2002 is perceived as one of the steps needed to change the previous centralised system. The law is in line with Council of Europe recommendations and introduces important innovations and reforms: widening of municipal competencies, direct election of mayors, establishment of new institutions, special institutes for human rights and minority protection, some financial decentralization, and limitation of undue interference by central authorities. The mentioned Law has just initiated the decentralization, while the forthcoming constitutional reform is to create the normative basis for a further decentralization and a functional reform of all the governmental levels. The process of modernisation and strengthening of the status and functional capacities of the local government, implies a new distribution of competences, and a new type of partnership relations among the various levels of government, the new forms of coordination and establishing of new financial arrangements, together with strengthening of the local government autonomy (fiscal federalism). Regulations on municipalities and other types of territorial organization, public administration, property, local finances etc, are a precondition of reform in this area. The new Law on the Local Self-Government has expanded the scope of the competences of the local government. Consequently, the following area currently falls under the responsibility of the municipalities: provision of utility services such as supply of water and gas, sewage, sanitation, collecting and disposing of garbage, as well as certain parts of the traffic infrastructure and the road network, in addition to the areas of elementary education and primary health care, cultural institutions and activities, social services, sports, recreation, ecology and environmental protection and finally, stimulating the economic development. In the area of the social care, certain competencies have been transferred from the national to the municipal level, but these are still out under the auspices of the State bodies. Moreover, the original competencies of a municipality include the provision of the expanded entitlements of citizens, and the development of specific forms of the social care and protection as well. Public Administration Reform and Local Self Government 11

12 The establishment of the Ministry of Public Administration and Local Self-government in May 2002 was also an important step forward. The reform should enable municipalities to increase their performance especially as client-oriented service. Current status and challenges It is needed to continue the process of clarifying the division of competences and the relationship between the municipal and Republic authorities. In this context, it is necessary for different line ministries to clarify management systems and structures between local and central level. There is also a need to ensure closer, more transparent and structured flow of information between the local and the central level of Governments since the flow of information is insufficient and inefficient. In this context it will also be important to look at the relationship between the semiindependent agencies, especially for utilities, with the objective to define the appropriate role of local government (regulatory, guarantor ) and how to move towards greater financial independence. The co-ordination, co-operation and linkages between municipal authorities, services providers and different governmental bodies operating on the local level (health, education, social, enterprise development, labour, etc.) should be strengthened. The objective is to increase the efficiency of service delivery and to exploit synergies. The reform of local government entails the restructuring of the local government from the supervision body and administration to client oriented service. Besides increasing the performance for these client-oriented services, the main engine for the ongoing reform process on the local level is the increased decentralisation and democratisation, as well as the mounting focus on the rights of the citizens. As a result, there is a need to improve capacity and develop more efficient organisational and management needed to increase the transparency and productivity of local bodies. The Law on Local Self-Government modernised the organisation and work of the units of local government through delegation of competences to municipalities and cities. Instead of complex and inefficient system that existed before, the new division of powers between the Assembly as the legislative body, and the president of the municipality as the representative of executive power, are clear and transparent. This system functions currently in 10 municipalities, but it will be present in all municipalities after the elections in The future ways forward depend very much on the adoption of the new Serbian Constitution which will lay out new territorial organisation of the Republic of Serbia. The Municipal Assembly which traditionally has been viewed as weak institution, is also gaining new authorities particularly with regard to oversight of municipal finances and development planning. Additionally, local councillors' individual accountability was strengthened with the recent decision of the Serbian Constitutional Court that also in municipal assembly s mandates would belong to councillors rather than political parties. There is the need to strengthen the policy making capacity of the local self government through strengthening the institutions responsible for this aspect on the local level. In this context it will be important for the municipalities to become more proactive regarding local development and encouragement of investments. The present organization of municipal authorities is a classical European assembly-mayor model, with strong elements of system of authority unity. The new Law on Local Self-Government, which will come into force on the Public Administration Reform and Local Self Government 12

13 occasion of next local elections in 2004, provides for two new optional models of authority organization: the mayor-assembly model, and the assembly-manager model. The financial autonomy of the municipalities has been strengthened, giving them the right to raise loans, collect several republican taxes, and a portion of receipts is re-distributed back to them. Currently some 35% of the total municipal revenues originate from the resources partly or totally controlled by the local government, which represents a considerable share, compared to the countries in the region. Despite this, there is a need to investigate if the municipalities have adequate financial autonomy and resources to solve the task at hand. There is also a need to introduce modern budget and treasury functions in local government, and links to central government. The newly established Municipal Infrastructure Agency will assist municipalities and local public utility companies (PUC) to access financial resources for creditworthy infrastructure projects. The specific objectives of this Agency are: 1) improvement of the efficiency of service delivery in the selected municipalities by assisting municipal authorities and/or PUCs with the preparation and implementation of priority municipal infrastructure projects; 2.) improvement of the financial management and project management in municipalities and PUCs; 3.) encouraging development of a self-sustainable private-sector municipal credit market. 4.) establishment of a financial and technical database on municipalities and PUCs to assess the credit/default risk for municipalities; 5.) conducting a detailed technical and financial analysis of proposed investment projects and package eligible projects for submission to interested international and local financial institutions; and 6.) presenting the packaged projects to interested financial institutions and preparing the loan finance arrangements. As a result of the introduction of the Value Added Tax (VAT) and the abolishment of the sales tax planned for 2004, the system of local government financing will have to suffer radical changes, since the current sales tax adds up to 30 percent of the Local Self Government total revenue. It is the intention of the Government that the introduction of the VAT will be revenue neutral for the LSG. To achieve this, the LSG will receive a larger portion of income and the direct transfers from the budget will increase from 1-1,5 billion dinars in 2003 to a projected level of around 8 billion dinars. As on the central level there is a need to look into general public administration reform areas as pay, recruitment, training, modern management, promotion schemes based on merit, etc. The municipalities should also contribute to the overall strengthening of democracy as a key objective of the administrative reform at the local level. Hence there is a need to strengthen civil participation and develop arrangements for ensuring effective public consultation, promote transparency and more open dialog between the local self governments and the general public. Future policy priorities Promotion of effective decentralisation and participation by strengthening the capacity of municipalities Law on Local Self-Government; Law on Amendments and Modifications of Law on Local Self-Government. Public Administration Reform and Local Self Government 13

14 Adoption of Serbian constitution; Breaking of hierarchical relationship between central and local government; Strengthening of budget independence; Strengthening of personnel independence; Strengthening of organisational independence; Freedom of association and cooperation of local bodies; Freedom of establishment companies for providing necessary services to the citizens; Freedom of administrative decision-making at local level with adequate supervision of local bodies; Strengthening and clarifying the role of administrative inspection at the central level. Improvement of cross border municipal cooperation The strengthening of the Standing Conference of Cities and Municipalities. Improved use of IT technology and networking within and between municipalities; Training of employees. Improvement of cooperation with central bodies, ministries and utility companies Regional Socio-economic Development; Municipal Support Programme for Eastern Serbia; Improvement of Voter Registers for the Municipalities of Bujanovac, Presevo and Medvedja. Setting up working groups composed of civil servants from central and local levels on common issues. This cooperation is very important in the preparation of relevant legislation; Developing the permanent vehicles and systems for strengthening the cooperation and coordination between the local and national level. Improvement of the efficiency of municipalities as client-oriented services Adoption of Law on civil registers. Simplify the procedure for achievement of citizens rights; Increase the awareness among the general public regarding their rights; Improve access to information through applying modern IT and Internet technology; Improve the service and motivation of staff providing public services; A greater focus on service provision and quality with a mechanism for capturing user concerns within the management process with need for participation and accountability; Improvement of inspection of work of administrative bodies. Public Administration Reform and Local Self Government 14

15 Strengthening the administrative capacities through training and personnel policy In a number of municipalities throughout Serbia, training of staff in modern management and budgeting has been initiated with international support. Strategy of education of civil servants at local level; Organisation of permanent training programmes. Further reform of financing system of local bodies Law on Local Self-Government; Law on Amendments and Modifications of Law on Local Self-Government; Budget System Law. Support of central bodies, namely Ministry of Finance and Economy, in the implementation of new tax system and other relevant ministries; Introduction of system of transfer of assets in accordance with the Law on Local Self- Government; Develop skills and systems needed to manage new tax system. Reform of human resource management Law on Local Self-Government; In a number of municipalities throughout Serbia training of staff in modern management and budgeting has been initiated with international support. Education of civil servants; Career development (introduction of grading system establishment of criteria); Changing of recruitment procedure; Attempt to increase publicity and transparency in order to improve public perception of civil service career; Improvement of working conditions and salaries. E-government A number of Municipalities throughout Serbia has developed website to inform its citizens and other stakeholders; In a number of municipalities throughout Serbia training of staff in the use of modern IT technology has been initiated with international support. IT networking within each municipality and between municipalities; Provision of Internet service for clients (on-line services). Public Administration Reform and Local Self Government 15

16 Stronger partnership with non-governmental and other citizens organisations A number of Municipalities are more actively consulting and including external stakeholders in policy development and prioritisation The established Social Innovation Fund provides an incentive for partnership between governmental and non-governmental bodies in service delivery; Consultations on the PRSP were done on the local level throughout Serbia. Emphasis on knowledge sharing; Participation of civil societies through different non-governmental and citizens association in the projects concerning the local government; Raising of public awareness. Conclusion The above-mentioned priorities, namely objectives, imply a long-term and continuous process which will take time to make a balance between the central and local level. This approach also entails the wide involvement of all central and local levels but also wide involvement of citizens and organisations. The financial assistance from the international community in coming years is very important for the further development of local government, especially local infrastructure. Public Administration Reform and Local Self Government 16

17 Appendix 1: Key stakeholders of the reform: The Government of the Republic of Serbia manages general public administration reform. The Government manages the policy of administrative reform in Serbia, executes and proposes laws, adopts rules and regulations, decisions and other acts for the enforcement of laws; determines development programmes, budget and final account; determines principles for internal organization of the ministries and other special organizations; appoints and dismisses officials in the ministries and special organisations; directs and adjusts work of the ministries and special organizations; supervises the work of ministries and special organizations; gives opinions on draft laws, other rules and regulations and a general act proposed to the National Parliament. Board for legal system and state bodies of the Government as the key body for coordination of public administration reform directly participates in the building of the system. In relation to public administration issues its main role is to examine draft laws, other acts, general acts, acts proposals of the Government and other issues concerning the reform and the organisation and work of the Government; organisation, work and jurisdiction of the ministries, administrative bodies within ministries, special organisations and the overall system of public administration; territorial organisation of the Republic and the local government system and territorial autonomy; labour relations in administrative bodies; development of IT system of administrative bodies and local government and other duties from the field of judiciary and public administration. The Board is also responsible for monitoring the realization of reform. Parallel to this, the Government of Serbia, in its Conclusion 05 No /2002 of 15 March 2002, accepted the Information of the Ministry of Justice and Local Government about a need to form organs on central and operational level for undertaking reform of public administration and elected the Board as a central strategic body for the reform of public administration. Ministry of Public Administration and Local Government of Serbia - According to the prescribed competences in the Law on Government of Republic of Serbia, the Government evaluated as inadequate the organizational model whereby all activities of public administration and local self-government were performed within the Ministry of Justice and Local Self-Government and proposed to the Parliament of Republic of Serbia the formation of a separate ministry. The Parliament adopted the Law on ministries according to which the Ministry of Public Administration and Local Government was established. It started its work on 24 May The Ministry responsible for public administration activities was determined as a central operational body for the reform of public administration; Agency for public administration development as an expert body of the Government established by the Regulation of the General Secretariat and other services of the Government of Serbia (Official Journal of Republic of Serbia No. 15/01, 16/01, 29/01, 32/01, 64/01); Civil Service Council is the advisory body of the Government established by the Decision of the Government of Serbia (Official Journal of the Republic of Serbia, No. 15/2001), which will abolished with the adoption of the Public Administration Reform Council. Public Administration Reform Council this body will replace the Civil Service Council and it will be a body which will give political impetus to the implementation of the public administration reform. This is the last organisational change and it arises from the unsatisfactory results in the implementation of the public administration reform. Public Administration Reform and Local Self Government 17

18 The reason for this was the lack of direct political support for reformist activities. Consequently, the Prime Minister initiated the formation of the Public Administration Reform Council which will replace the Civil Service Council. This measure should reduce the number and complexity of bodies dealing with reform of public administration and would result in much better coordination, focus, and setting of priorities at the centre of government backed by Prime Minister s authority. Other relevant bodies in the reform: Commission for optimisation of public expenditure The Ministry of International Economic Relations Council for fight against corruption Council for European integration Commission for coordination of accession process to the European Union Commission for monitoring the work of the public administration bodies in the performance of inspection Public Administration Reform and Local Self Government 18