Progress in PRS Implementation: The Republic of Serbia

1
Progress in PRS Implementation The Republic of
Serbia
Conference on Labor Markets, Growth and Poverty
Reduction Strategies May 27-28, 2005

• Presented by Ivana Aleksic, Team Manager
• Poverty Reduction Strategy Implementation Focal
  Point
• Deputy Prime Ministers Office
• of the Republic of Serbia

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Presentation Outline

• Recent PRS development in Serbia
• Serbias Development Framework
• PRS implementation principles
• Priority areas for implementation process
• Challenges

3
Looking back

• The Government of Serbia adopted PRS in October
  2003, after a wide participatory process
• PRS implementation design for a medium term
  period (2004-2007) with effects expected in the
  long run as well (2010)
• Key elements of the PRS as a programmatic
  government document
• Analysis of poverty characteristics and profile
  in Serbia
• Key strategic directions/ areas of recommendations

4
Reminder PRS key pillars

• Dynamic economic growth with emphasis on job
  creation
• Prevention of new poverty as a consequence of
  economic restructuring
• Maintenance and improvement of social safety net
  for the traditionally poor and vulnerable groups

Nearly halving poverty by 2010
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DPMs PRS Implementation Focal Point

• Role to support, coordinate, oversee and report
  about the PRS implementation
• Established in September 2004, fully operational
  since November 2004
• Development of the operational framework for the
  PRS implementation
• Participatory approach support to reactivation
  of Advisory Committees
• Promotion of the PRS in general
• IFP initiative and Government decision on the
  establishment of the Working Group for Poverty
  Measurement

6
Serbias Development Framework

• Linking European Integration process and PRS
  implementation
• Multidimensional and multisectoral
• Complementarity of the goals of European
  Partnership and Poverty Reduction Strategy
• PRS aligned with the European Social Inclusion
  agenda
• Alignment with the UN MDGs
• Relation of the PRS to sector strategies
• National Employment Strategy, National Plan of
  Action for Children, refugees, people with
  disabilities, other sectoral strategies

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Principles of implementation

• Mainstreaming
• Promoting national ownership
• Linking PRS and EU integration priorities
• Local level implementation
• Partnership in implementation
• Catalyst for sustainable changes of the
  government system

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Priority areas

• Promotion of PRS implementation
• Monitoring and Evaluation
• Communication/ Outreach/ Participation
• Institutional arrangements to sustain PRS
  implementation

Towards improving policy coordination and
prioritization at the central government level
HIGHLIGHTS TO FOLLOW
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Working Group on Poverty Measurement (ME)

• To adjust existing methodology for poverty
  monitoring to the permanent national data source
  (HBS of Republic Statistical Office instead of
  LSMS)
• Potentially, a permanent expert body for poverty
  analysis and social statistics
• Gradual introduction of European indicators
  (based on the relative poverty concept) and
  social inclusion

10
Poverty in 2003 vs. 2002 (ME) (G.Krstic)

• Based on preliminary analysis, every tenth
  citizen of Serbia is poor in 2003 (10.5)
• Proportion of poor in general population most
  likely between 8.5-12.9 in 2003
• Poverty rate unchanged between 2002 and 2003
  (10.6 in 2002)
• Relative to the region, poverty in Serbia similar
  to Romanian, lower than in Albania, higher than
  in Bulgaria and Poland (ECAPOV II, World Bank,
  2005)

2004 poverty estimates expected by July 2005
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Poverty in 2003 vs. 2002URBAN vs. RURAL
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Poverty in 2003 vs. 2002REGIONAL DISTRIBUTION
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Participatory approach (comm./outreach)

• Line ministries as key actors in the
  implementation
• DPMs Office and PRS Implementation Focal Point
• National Assembly Committee for Poverty
  Reduction
• Other PRS Advisory Committees
• Civil Society
• Local Self-Governments
• Social partners (business and employers
  associations and trade unions)
• International development partners (donors)

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Promotion of PRS implementation

• Sectoral action plans in the line ministries
  linking PRS and EU priorities
• Integration of PRS priorities into the
  budgetfull budget cycle
• Political decision
• Technical/ sector level implementation
• Sector support approach in allocation of the
  development assistance

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Promotion of PRS implementation

• Participation in the Joint Project
• Central policy coordination5 central govt
  institutions PRS IFP, Serbian European
  Integration Office, Ministry of Finance, Ministry
  of Intl Economic Relations, General Secretariat
• Integrated Plans of Action in 4 pilot ministries
• Ministry of Labor, Employment and Social Policy
• Ministry of Economy
• Ministry of Trade, Tourism and Services
• Ministry of Health

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Progress report in preparation

• Reform framework
• Economic performance update
• Line ministries reports
• Working Group on Poverty Measurement
• Advisory Committees activities
• Legislative overview
• Challenges in implementation

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Inst. arrangements to sustain PRS implementation

• Improving government planning and prioritization
  process
• Links to the budget
• Links to the available development funds
• Shift towards programmatic budget planning
• Shift towards sector support in allocation of
  development aid assistance
• Future arrangements for PRS function at the
  central government level

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Looking ahead challenges

• Lack of policy coordination function at the
  central government level
• Lack of operational knowledge to translate policy
  objectives into measures and activities
• Qualifying for the support from the European
  development funds in the next budget period
  2007-2013
• Implications of the new status in the accession
  process

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Conclusions

• PRS - one of priorities of the Government of RS
• Strategic goal halve poverty until 2010
• Government and non-government stakeholders
  together
• Key contribution of the IFP active in changing
  the approach