Priority areas of government reform in Serbia. Snežana Djordjević, Professor of Local Government Faculty of Political Sciences, Belgrade University

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1 Priority areas of government reform in Serbia Snežana Djordjević, Professor of Local Government Faculty of Political Sciences, Belgrade University

2 Map of Serbia

3 LEVELS OF STATE ORGANIZATION Union of Serbia and Montenegro Republic of Serbia Pokraina Vojvodina and Kosovo County (29) Municipality (163)

4 Priority Areas of Reform Reform of political system (government structure) Decentralization and strengthening of local government Reform of economy

5 Political system - unity of power System of unity of power is not still changed Assembly has huge influence on structure of Government and Ministries (number and organization) Prime Minister lack a lot of tools and instruments for organizing work of Government (no right to found or abolish some Ministries, to exchange some competences between Ministries, to decide on term or content of working bodies etc) Prime Minister Cabinet has poor influence (in comparison to other countries) Judicial system is not reformed (poor autonomy, strong influence of executive power)

6 Political system executive government Ministries have too many competences (centralization) Ministries are oriented to control their field of policy in details: non-adequate, irrational and unjust decisions Lack of institutional channels for exchange of information between local and central government (using party channels and private connections) Lack of coordination and team work between Ministries Administration has as the main aims: executing laws, deciding in administrative procedure on rights, obligations and legal interest of citizens and different organizations, inspection control etc.

7 Judicial system Strengthen independence (status of judges,) High Judicial Council Judicial Budget Codification of professional ethic Modernization of process laws, simplifying and more efficient Evaluation of accessibility to justice, quality of work New institutes:clerk, magistrate, judge police, judge executer, bankrupt manager and ombudsman

8 Reform of Public Administration State as civil service, the end of hierarchy, modernize the organization and management, decentralization Changing the status of civil servants, division political and professional positions, strengthening professionalism Law on public administration and Law on civil servants New institutes: Administrative Court, Administrative Tribunals and Ombudsman Strengthen state capacities (using state channels instead of party channels or private connections) Including mission driven government, strategic government, management and planning

9 Local Government System is still centralized and state has too many competences (rowing instead steering) and local government not enough Undeveloped network of local government levels (municipality, city but no regions or counties) Municipalities still don't have Property and assets, local finances are still too much dependent regarding type and rates of local taxes which are regulated by center and central collecting of taxes and limitation of bruto municipal budgets Formal and funcional municipal potentials are still undeveloped New entrepreneurila models of local government (Strong Mayor and City Manager model) are to be developed and implement Citizen participation is still marginalised

10 Economic reforms Various economic structure, low intensity, backward technology, poor organization and management, poor standard, poor quality and design State intervention (central redistribution) GDP $ (double less then in 1980), high level of unemployment (33 % to 50 %) State is the greatest owner and creditor in banking system Reform of market system Established stock exchange market and markets of value papers Banking laws are not harmonized with EU principles and standards Wages are risen, inequality is not risen (Gini coeficient went from 0,30 to 0,35).

11 Consequences of pure liberal concept Rising of poverty and inequality (social exclusion) Steering credit capital on speculating business (real-estate, bonds) Success of only short term projects caused by nature of credits (short term, high interest) Impossibility of investment in phased revitalization and strengthening economy branches (implemented researches) Pauperism of economic structure, ruining different economic branches

12 Alternate concept - Parnership relations between state and local government State Establishing the strategy of economic development: investment in development of competent economic branches Creating convenient legal ambience for market society: decreasing interventionism, strengthening strategic management capacities Entrepreneurial local governance: network of institutions, better organization and management, developmental activities

13 Entrepreneurial local government Financial authonomy (property and taxes) Competences (primary education, health care, social affairs and impetus of economic development) New government models (strong mayor, city manager) and strengthening of organizational and managerial potentials Developmental projects: incubator business centers: SME, local financial institutions, infrastrucure, techical help, consulting centers, tax releases, itd)

14 Public services: reform of public entreprises Public enterprises: monopolistic position, subventions, poor capacities, organization, equipment and management, over-employment (10% of all employed in Serbia, 36 % over-employed) Law productivity, ineficiency, non-market prices, poor competitiveness (use 38 % materials of the economy, create only 20 % of economy product, and 26% of depths) Necessity of reforms: modernization (organization, management), privatization, returning depths, consolidation, competitiveness

15 Evaluation of public policies Phases: creating, realizing, monitoring and evaluation Lack of strategic governing, planning and management Creating public policies: Ministries, Government; Assembly adopt it Municipalities are in charge for realizing it and for creating a small part of it Creating phase: lack of permanent expert work, empirical research and lack of contact and especially lack of citizens` participation Realizing phase: role organized institutions, sector - way of work, lack of monitoring, permanent control Evaluation: it is an goal-oriented and not result-oriented government, lack of standards, paying by position instead by results, there is no learning on experience etc.

16 Evaluation tools Central and local government: use inspection for basic control Ministries have the right and obligation to react in case of illegal normative acts and decisions of local government. Constitutional Court is in charge to solve the conflict if local government is not willing to accept suggestions of Ministries Socio - Economic Councils, a new form of work in Municipalities includes team work, strategic planning as well as monitoring and evaluating results A number of new multi-disciplinary and multi-sector projects is launched on central level. They ask for strategic managing, monitoring and permanent evaluation as important element of implementation process ( Strategy of Poverty decreasing etc).