GIZ South Caucasus. Together in Europe. Implemented by:

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1 GIZ South Caucasus Together in Europe Implemented by:

2 Sustainable biodiversity management in the South Caucasus Biodiversity benefits us all Client: German Federal Ministry for Economic Cooperation and Development (BMZ), Austrian Development Agency (ADA) and Friends of the Earth Norway Partners: Ministry of Environment and Natural Resources Protection, Azerbaijan, Georgia, Ministry of Territorial Administration, Armenia, municipalities, non-governmental organisations, schools and colleges Duration: 10/ /2017 Budget: 20,6 Mio. Euro Countries: Armenia, Azerbaijan and Georgia An example - the way we achieve impacts: Monitoring Biodiversity Strategy Action Plan Implementation On 8 May 2014, the Georgian Cabinet adopted the new National Biodiversity Strategy, which was developed in consultation with numerous civil society groups with GIZ s support. Georgia is thus among the first 20 out of a total of 168 signatory states to achieve this goal, defined in the Convention on Biological Diversity (CBD). By adopting this new strategic direction, Georgia is attempting to further improve its conservation of biodiversity. The Strategy will be implemented through annual action plans whose impacts will be tracked using a dedicated national monitoring system. In the context of forest remote sensing, Georgia is drawing on the results achieved by the programme in Armenia and Azerbaijan. In return, our Georgian partners are sharing their experience of developing Georgia s National Biodiversity Strategy with these two neighbouring countries. Objectives Together with our partners, we are developing and implementing strategies to facilitate the sustainable management of biodiversity by state, private sector and civil society actors. With this approach, we aim to safeguard biodiversity in the South Caucasus on a long-term basis. Challenges Intensive exploitation is putting considerable pressure on natural resources in the South Caucasus. Stringent nature conservation measures have only been able to curb the loss of species of flora and fauna to a limited extent. Sustainable management of biodiversity is an alternative response to local people s various requirements and needs. Implemented by: Activities We advise our partners on developing national biodiversity strategies and establishing monitoring systems. Besides implementing environmental education schemes, we are also supporting the comprehensive reform of forest management training. We demonstrate the practical application of principles of sustainable forest management and climate-adapted agriculture, and integrate these principles into national regulations. Impacts Biodiversity conservation is a task for society as a whole. It requires technical expertise, environmental awareness and an appropriate political and strategic framework. Through the sustainable management of natural resources, we not only protect rare species but also help to maintain the livelihoods of rural communities.

3 Published by: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Registered Offi ces: Bonn and Eschborn, Germany GIZ Regional Offi ce South Caucasus Tbilisi, Georgia T E [email protected] I Editorial: Responsible: Martin Homola Editing: Tea Melanashvili, Tobias Niewianda Design & Layout: Batash Studio GmbH Printed by: Cezanne Ltd July 2014

4 Integrated erosion control in mountainous regions of the South Caucasus Erosion control: safeguarding the future Client: German Federal Ministry for Economic Cooperation and Development (BMZ), Austrian Development Agency (ADA) Partners: Ministry of Environment and Natural Resources Protection, Azerbaijan and Georgia, Ministry of Territorial Administration, Armenia, local communities and associations Duration: 10/ /2017 Budget: 6,7 Mio. Euro Countries: Armenia, Azerbaijan and Georgia Example - the way we achieve impacts: In the South Caucasus, degradation of natural vegetation and erosion are often the result of overgrazing. GIZ and its partners in Armenia have therefore developed a satellite imagery-based method to assess the sensitivity of high-mountain pastures. This sensitivity model uses multispectral satellite images to determine the vitality of vegetation cover. Based on calculations of slope inclination and soil and meteorological data, maps are then produced to provide information about the risk of erosion and the maximum grazing capacities for the areas concerned. Pastoral communities can draw on the information contained in the maps to make appropriate adaptations (such as rotation or seasonal restrictions) to the management of their herd/flock. In 2014, pastoral communities in the pilot region of Sisian used this information to introduce sustainable, soil-conserving grazing in 30 municipalities, yielding environmental and economic benefits. Objectives The project aims to develop strategies for integrating erosion control into national regulations on sustainable land use and the conservation of biodiversity. Challenges Local people s acceptance, based on strong and sustained self-interest, is essential for the project s success. Developing incentive schemes that appeal to local communities is therefore a key success factor. Implemented by: Activities Erosion and the condition of pasture land are assessed and mapped in the pilot regions as a basis for identifying suitable erosion control measures. Targeted reforestation of small areas, community forest management and mechanical and biological erosion protection measures are carried out. Incentive schemes to encourage integrated erosion control are being developed and innovative value chains promoted. Impacts Soil erosion has been reduced and degraded areas rehabilitated, which contributes to the conservation of biodiversity. Sustainable pasture management safeguards the livelihoods of local communities and improves living conditions in rural areas. The participatory, community-based approach also helps to maintain peaceful social relations.

6 Local Governance in the South Caucasus Strengthening local governments Promoting transparency and citizen participation Client: German Federal Ministry for Economic Cooperation and Development (BMZ) Partners: Ministries, Parliament Duration: 01/ /2016 Budget: 9,0 Mio. Euro Countries: Georgia, Azerbaijan, Armenia South Caucasus National level Regional level Local level (Pilots) Multi-Level and Multi-Actor-Approach Network formation, regional exchange and mutual learning Developing legal and institutional frameworks: Legislation Steering of reforms National standards (trainings, methodology) Improved cooperation between the different levels of administration Mechanisms and processes of cooperation Regional governance Supporting good local governance Training and coaching Process support Developing and piloting of suitable approaches, instruments, and procedures Multi-Level- Governance Evidence-based policy-making Networking and mutual learning Sharing best practices and learning experiences Example - the way we achieve impacts: Excessive red-tape, time-consuming administrative procedures and the widespread impression of bureaucratic arbitrariness explain why citizens in the countries of the South Caucasus traditionally have little confidence in local government. Since 2007, GIZ has supported the establishment of citizen offices, which operate as onestop shops for public information and services. Modern administrative practice and qualified staff serve now as the basis of an efficient, transparent and citizencentered service provision. The average processing time of requests could be reduced by 50 % as a result. In Georgia, already more than half of the 76 municipalities run a citizen office, and in Armenia their proliferation continues steadily. Inspired by regional exchange, three Public Service Halls have been introduced in Azerbaijan since Objectives Strengthening local democracy and public service delivery based on higher levels of transparency, accountability and citizen participation. Challenges Local Governance: In all three countries, local selfgovernment is still weak and municipalities tend to fall short of meeting basic standards of good governance. Local authorities lack technical, financial and human capacity to provide public services efficiently and addressing the needs of citizens. Implemented by: Activities We advise our partners on governance reforms and the development of suitable legal frameworks. We support municipalities on a pilot basis in the implementation of national reforms and strategies. The focus of our cooperation lies on territorial and administrative reforms, regional development policy as well as local financial management and development planning. Moreover, we are managing a fund for cross-border projects on behalf of the EU and thus prepare local structures for the effective use of EU financial instruments. Impacts Legal and institutional frameworks for local and regional development improve. Coherence in national and local planning ensures that public spending responds effectively to local needs. Capable municipalities provide public services efficiently and are accountable to their citizens. Confidence in democratic institutions is growing.

8 Public Financial Management in the South Caucasus Target-oriented, efficient and transparent use of public funds Client: German Federal Ministry for Economic Cooperation and Development (BMZ) Partners: Ministry of Finance, Parliament, Supreme Audit Institution Duration: 04/ /2016 Budget: 4,5 Mio. Euro Countries: Armenia, Georgia Example - the way we achieve impacts: Discharge of Government by Parliament Budget Preparation Budget Cycle Audit by Supreme Audit Institution Budget Implementation With support of GIZ the Georgian State Audit Office conducted a performance-audit of medical emergency ambulances in order to trial their efficiency and effectiveness. Special attention was drawn to the reaction time and the quality of the medical aid provided. The auditors exposed the need for improvement and suggested various recommendations to enhance the performance of the system. With the recommendations implemented the responsiveness in emergencies is supposed to improve. Furthermore qualified personnel to provide rapid assistance will be available even in rural areas. By dialing the emergency number immediate medical advice is provided by a doctor. Through these measures many lives can be saved in cases of emergencies and medical complications in Georgia. Objectives The reforms of our partner institutions are targeting the use of taxpayers money in line with national development strategies whilst improving transparency, efficiency and accountability. The GIZ advisory approach is aiming for an enhanced budgetary system and the introduction of European standards. Challenges Our partners are going through complex transformations which require new approaches towards management culture and involve significant legal and methodological changes. This also applies to fundamental issues concerning checks and balances within budget management, such as the cooperation between Government, Parliament and the Audit Institution. Activities We advise our partners on the introduction of a results-oriented budgeting system, improved internal and external control mechanisms and taxation in line with European standards being the benchmark. In order to ensure sustainable change we provide trainings for those involved in the processes and promote cooperation between all stakeholders. Impacts Public Finance is a vital policy political strategies can only be successfully implemented where necessary funds are provided. A government that manages to deploy public funds in a target-oriented, effective and transparent way is also able to foster national development, to prevent corruption and to improve public trust. Implemented by:

10 Legal and Judicial Reforms in the South Caucasus Rule of Law Reform Regional Cooperation and Dialogue on the Rule of Law Client: German Federal Ministry for Economic Cooperation and Development (BMZ) Partners: Ministries of Justice, High Judicial Councils, Courts, Judicial Academies Duration: 01/ /2015 Budget: 16,7 Mio. Euro Countries: Armenia, Azerbaijan, Georgia Advice on Legislation Implementation Rule of Law Dialogue Dissemination Example - the way we achieve impacts: With the introduction of administrative law in the South Caucasus, the legal framework for administrative acts and the creation of a specialized branch of courts has been developed. The program has supported the training of judicial professionals and has familiarized the population with the new law. By this, administrative acts have become more transparent and state-sanctioned abuse has decreased. Based on the Georgian experience, administrative proceedings and administrative courts were introduced. Today, more than half of the objections filed against administrative acts are successful. Experiences in administrative law are being shared across the region. Quoting a high-level official in the Armenian Ministry of Justice: For sure we took Azerbaijan s experience regarding legal persons and public law into consideration! This is a remarkable statement given the tensions between both countries, and an example of the opportunity for a regional approach. Objectives The reform of the legal and judicial systems in the countries of the South Caucasus has been aligned with EU standards and has utilized instruments of regional cooperation. The advisory approach of GIZ supports dialogue on the Rule of Law and the dissemination of information about the content and best practices of reforms from other countries. Challenges The use of the judiciary as a service for citizens in the countries of the South Caucasus is a total switch from the previous approach: the realisation of private interests via the judiciary needs modern instruments with a legal framework and their implementation. Activities Support of the dialogue on the Rule of Law with Germany and within a country; court partnerships; advisory services on strategies and legal acts, particularly in the fields of private and administrative law and the EU acquis; implementation of the new law through materials, trainings and organisational developments; communicating the contents of the reforms to the population. Impacts The citizens have trust in their newly structured judicial institutions, and through administrative courts they can defend themselves against illegal action of the state. They can use instruments of civil law to protect their private interests. Professional legal practitioners are orienting towards EU-standards. Implemented by:

12 Private Sector Development in the South Caucasus Inclusive Growth and Vocational Qualification for Economic Diversification and Internationalization Client: German Federal Ministry for Economic Cooperation and Development (BMZ) Partners: Ministries of Economy Duration: 11/ /2016 Budget: 11 Mio. Euro Countries: Armenia, Azerbaijan, Georgia Ownership of initiative by the private sector Diversification of the export markets Contribution in policy making Fair competition in each country Objectives Economic diversification for broad-based inclusive growth in the South Caucasus countries is internationally oriented. The framework conditions are constantly adjusted in order to develop competitive enterprises and value chains. The promotion of the private sector complies with international business requirements, so that the enterprises can take advantage of updated vocational training offers for professionals. Challenges Diversification of economy Green economy Increased competitiveness Access finance Quality Communication to/ from local actors Professionalised implementation agencies Developing innovative entrepreneurship Inclusive growth Institutions for private sector promotion are often newly established, and still not being engaged in a structured dialogue with the business sectors and enterprises. Future oriented strategic approaches in economic policies are not co-developed and supported by the business community. Support programs for enterprises, including vocational qualification offers do not yet reach the private sector. Example - the way we achieve impacts: When processed agricultural products are delivered to international and industrial customers, these products have to be tested, measured, calibrated and adjusted. This is required by the European food labelling for consumer protection. Hazelnuts from the South Caucasus gained increased sales internationally in Pro - fe ssionals from technical institutes, as well as technical service providers have been trained in Armenia, Azerbaijan and Georgia in this field. They calibrate, adjust devices and advise companies regarding the tests and certificates. A cross-national competency network of specialized institutes, technical service providers and trained professionals of quality assurance in the agrobusiness is available by New agricultural pro ducts and processes are promoted, such as wine, fruit juices, honey, dried fruits. The professional expertise of the trained specialists is also introduced for improving the vocational qualification and curriculum development. Activities In selected sectors of the economy, a future-oriented dialogue between the economic development partners is organized regarding the international cooperation potential and the governmental economic promotion programmes. The jointly developed improvement projects for enterprises and the vocational qualification offers are carried out and consulted. Development networks for the promotion of regional and international cooperation are initiated. Impacts Companies get committed to the vocational qualification development. The established businesses contribute to reform issues and compliance projects. Governmental promotion programmes and services are geared, through the prism of industry needs, to improved employment policies regarding the integration of women and young people particularly in rural areas. Implemented by:

14 A reliable partner in the South Caucasus for over 20 years On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), GIZ has been supporting the South Caucasus countries since the 1990s in becoming social market economies and adopting the rule of law and democracy. We opened a regional office in Georgia in 2006 and also have country offices in Armenia and Azerbaijan. Together in Europe Alongside democracy, local governance and the rule of law, German Development Cooperation in the South Caucasus also focuses on sustainable economic development, the environment, the sustainable use of natural resources and energy. These issues are cornerstones of EU policy as well. Through its European Neighbourhood Policy, the EU cooperates closely with those neighbours that are likewise committed to these values or that want to implement reforms in these areas. Working together as partners at all levels In the three South Caucasus countries, GIZ is working on an ongoing basis with the ministries of finance, justice, economic affairs, education and natural environment. We also carry out activities at local level. In addition, we are engaged in intensive dialogue with the private sector, civil society and the community. In order to achieve sustainable, positive change, we believe that the involvement of these groups is just as important as that of state institutions. GIZ carries out supra-regional activities that have an impact in at least two countries. The focus is on three main topics: Democracy, local governance and the rule of law Sustainable economic development The environment and the sustainable use of natural resources GIZ is implementing several regional programmes within these priority areas. In addition, there are several integrated and returning CIM experts in the region. They work in a range of institutions, such as the public administration, local environmental organisations and business associations.

15 GIZ around the globe An innovative partner for the global challenges of tomorrow GIZ operates throughout Germany and in more than 130 countries worldwide. Our registered offices are in Bonn and Eschborn. We have more than 16,000 staff around the globe, some 70% of whom are employed locally as national personnel. GIZ s business volume was about EUR 2.1 billion as at 31 December Most of our work is commissioned by the German Federal Ministry for Economic Cooperation and Development (BMZ). However, GIZ also operates on behalf of other German ministries and public and private bodies in Germany and abroad. These include governments of other countries, the European Commission, the United Nations and the World Bank. We are equally committed to helping our clients in the private sector attain their goals. How we work We manage change: As an implementing organisation, GIZ works with its partners to initiate change processes and provides long-term support. In this way, we make a direct contribution to the sustainable success of these processes. We offer long-term, local support: Our commissioning parties and partners benefit from our expertise and services in the field of international cooperation and our long-standing experience in the individual countries. We provide context-specific solutions: Together with our partners, we develop solutions that are tailored to the situation in their country. We are flexible: We use our diverse instruments flexibly and can quickly adapt to the different requirements of our commissioning parties and partners. We secure results: Our projects and programmes focus on measurable results. Together with our partners, we assume responsibility for achieving objectives.

16 Our activities in the South Caucasus Sustainable economic development Over the past few years, the three South Caucasus countries have enjoyed substantial economic growth and are now facing the challenge of maintaining this trend. GIZ is supporting its local partners in creating and promoting inclusive growth that helps close the urban-rural divide and reduce poverty in rural areas in particular. The focus is on promoting private sector development and introducing modern, labour market-oriented vocational training. Private Sector Development in the South Caucasus Promoting the private sector in selected industries: We provide information on modern management methods in key employment sectors and sustainable value chains, those that play a vital role in foreign trade. We also help improve access to regional and international markets. Vocational training: We support the development and implementation of vocational qualification approaches that meet the needs of the labour market and the business sector. Working with governments, education providers and the private sector, we draw on our well-established German expertise and experience in vocational education and training. Improving the economic and education policy framework: We advise the governments in all three countries on creating an enabling environment for a competitive private sector and labour market and businessoriented vocational training. The environment and the sustainable use of natural resources Few other regions in the world have such a wide range of different ecosystems as the South Caucasus, and few have such an extraordinary diversity of plant and animal species. GIZ supports its local partners in conserving this natural heritage and using biodiversity and natural resources in a sustainable way. Sustainable Biodiversity Management in the South Caucasus Biodiversity strategies and biodiversity monitoring: We advise the three governments on assessing the condition of the natural resources in their country and on working with all stakeholders to take the right decisions on their use. Environmental education: We help people understand the importance and the value of natural resources and encourage them to support resource conversation. Sustainable forest management: We promote the implementation of sustainable forest management, which originated in Germany some 300 years ago, and provide forestry personnel with suitable training. Sustainable agriculture: We develop ways to adapt agricultural practices to climate change and increase crop yields. Wild harvesting: We advise local and international companies on the sustainable collection and marketing of wild plants. Regional exchange: We promote dialogue at regional level on environmental issues, which fosters mutual learning and understanding. Integrated Erosion Control in the South Caucasus Assessment of erosion risks and pasture conditions: We promote the sharing of know-how to better assess the condition of pastures and their vulnerability to erosion. Integrated erosion control measures: In collaboration with our partners, we develop ways to combat and prevent erosion by combining smart pasture management, afforestation and soil bioengineering. Incentives: We find ways to ensure that all stakeholders benefit economically from erosion control and prevention measures. Regional exchange: Recognising that pasture management in the South Caucasus often has a regional dimension, we promote cooperation between the three countries.

17 Our activities in the South Caucasus Democracy, local governance and the rule of law Dynamic societies depend on pluralism and active participation. Modern states are based on the rule of law, citizen-oriented services and transparent financial systems at both the central and local levels of the state. GIZ is supporting transition in the South Caucasus with three programmes in this area. The focus of the activities ranges from providing advisory services on the judicial system and the rule of law to strengthening local self-government and improving management of public finances. Legal and Judicial Reform in the South Caucasus Dialogue on the rule of law: Transnational exchange of experience between legal professionals of three South Caucasus countries and transfer of know-how by European experts fosters competence and creates mutual trust. Advice on legislation: To ensure the production of high-quality laws, we provide expertise, support the capacity development and promote public participation. Implementation: By offering training and producing modern textbooks and commentaries, we help judges, civil servants and notaries to apply new laws according to European standards. Raising awareness: Women s rights, legal aid for the poor and those living in remote areas, training for journalists: we support efforts to protect and raise awareness of human rights within society. Local Governance in the South Caucasus Good local governance: We support local democracy and advise municipalities on providing efficient, citizen-oriented services. Coherent national and local policy design: We support coordination between ministries, regions and municipalities to ensure that local needs are taken into account to a greater extent and that public spending is more demand-driven and development-oriented. Political and administrative framework: We advise ministries on their reform processes to promote local and regional development and local self-government. Mutual learning in the South Caucasus: Through exchange on issues related to local politics, municipalities benefit from the experience of their neighbouring countries. Public Financial Management in the South Caucasus Results-oriented budgeting: We support the introduction of a new budgeting format that will help improve the implementation of our partner countries development strategies. Supporting public internal financial control: Our expertise and capacity development measures support our partner ministries in introducing new regulations and internal auditing procedures. Strengthening supreme audit institutions: Our advice on improving auditing methods and enhancing reporting procedures strengthens external financial control and increases transparency and accountability. Advising parliamentary budget committees: From approving the budget to overseeing its implementation: we support the legislative bodies in performing their role in the budget cycle.

18 Published by: Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Registered Offi ces: Bonn and Eschborn, Germany GIZ Regional Offi ce South Caucasus 31 Griboedov Street 0108 Tbilisi, Georgia T E [email protected] I Editorial: Responsible: Martin Homola Editing: Tea Melanashvili, Tobias Niewianda Photos: GIZ, Ralf Baecker, Thomas Imo Design & Layout: Batash Studio Ltd Printed by: Cezanne Ltd July 2014