INTER-MUNICIPAL COOPERATION (THE CASE OF MACEDONIA) Ilmiasan Dauti, UNDP-Macedonia June 12, 2008 Peccioli, Italy

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1 INTER-MUNICIPAL COOPERATION (THE CASE OF MACEDONIA) Ilmiasan Dauti, UNDP-Macedonia June 12, 2008 Peccioli, Italy

2 Background-Ongoing decentralization process (Why is IMC needed in Macedonia) Devolution of centralized competencies to municipalities Territorially fragmented system (small, rural municipalities) Increased citizens expectations for better service provision Lack of guidance from central institutions and weak capacities and experience at local level for implementation of decentralized functions Limited financial and human recourses

3 Constraints to IMC Insufficient legal framework and lack of support and incentives Lack of partnering experience among municipalities Possible resistance

4 International donor community support to IMC Promotion of the concept of IMC Project Support Communal Enterprise, GTZ Pro-aqua, KfW and EBRD Grant scheme for IMC, OSCE IMC projects in 12 municipalities, UNDP Policy support Manual on IMC (UNDP, EAR) Drafting of Law on IMC, UNDP

5 UNDP support to IMC in Macedonia Support to municipalities (Three IMC projects in 12 municipalities) Support to the Ministry of Local-self Government at policy level (support in drafting Law on IMC, IMC manual) Support to the Ministry of Local-self Government at technical level (collection and dissemination of best practices, capitalization of results)

6 UNDP support to IMC in Macedonia 2 Process/steps In-depth functional analysis of the organizational structure and capacities of the municipalities and defining intermunicipal cooperation model: Joint administration bodies Inter-municipal Partnerships for Improved Public Service Quality IMC1 (Inspection department in Bosilovo, Tax administration department in Vasilevo and Urban planning department in Novo Selo) Buying/selling of services Inter-municipal Cooperation for Efficient Delivery IMC 2 (Municipalities of Brvenica and Caska buying services from tax department of the municipalities of Tetovo and Veles) Territorial amalgamation Synchronization for cooperation IMC 3 (Municipalities of Drugovo, Vranestica, Zajas, Oslomej and Kicevo)

7 UNDP support to IMC in Macedonia 3 Joint administration bodies Department in each municipality (back-office) that provides services for all citizens from the three municipalities, while ensuring that citizens have access to those services in the resident municipality through Citizen service centers (front-office) Establishment of wireless network between three municipalities enabling documents flow of front and back offices Organizational redesign, trainings, consultations, coaching and study visits to assure the necessary level of capacity for service provision

8 UNDP support to IMC in Macedonia 4 Buying/selling of services Tax departments in urban municipalities providing services to rural municipalities for agreed fee Establishment of wireless network between partnering municipalities, enabling documents flow and ensuring delivery of services in resident/rural municipalities Technical assistance, trainings, consultations, coaching and study visits to assure the needed capacity for service provision

9 UNDP support to IMC in Macedonia 5 Territorial amalgamation Replication of IMC best practices/experiences as a preceding support of operational merging of five municipalities into one larger municipality Streamlining of functions and synchronization of work processes of five municipalities for more efficient operation and service delivery of the new municipality Introducing of front-office back office concept, to maintain the services closer to citizens in the larger territory of the merged municipality

10 Lessons learned for successful IMC - 1 Prior and comprehensive capacity development of involved municipalities, for achieving the required standard of operations, for ex.: review of the organizational structure and job description redesign update of taxpayers databases by evaluation of the real estate market value promotional campaign to raise awareness regarding tax registration and collection support in preparation of urban plans, IT and specialised equipment

11 Lessons learned for successful IMC - 2 Upfront investment for establishment of IMC that later provides for cost savings Clear understanding of roles and actions of all involved stakeholders Transparent communication and consultation with citizens

12 Challenges Long term sustainability of IMC, beyond the terms of mandate of present local authorities Permanent facilitator (UNDP role in this case) to disseminate experiences, balance interests and to provide the necessary TA and financial support for the initial set-up Hesitation of local authorities to embark on IMC due to lack of experience and resources to go through the process

13 Further steps for supporting IMC Ministry of Local Self-government Involve relevant line ministries to further support IMC Enforce IMC legislation that will stimulate municipalities to establish IMC (incentives, financial and technical assistance, sustainability) ZELS - share best practices and act as resource center for IMC Donor community support new and innovative IMC models further replication and promotion

14 QUESTIONS/ANSWERS THANK YOU VERY MUCH