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Galina Kurlyandskaya Overview of CFP Work on OSI/LGI FDI Projects in Moldova, Kyrgyzstan, Armenia and Tajikistan Istanbu

Galina Kurlyandskaya Overview of CFP Work on OSI/LGI FDI Projects in Moldova, Kyrgyzstan, Armenia and Tajikistan Istanbul, November 29, 2006. The Framework of Programs with CFP Involvement. Policy Forums

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Galina Kurlyandskaya Overview of CFP Work on OSI/LGI FDI Projects in Moldova, Kyrgyzstan, Armenia and Tajikistan Istanbu

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  1. Galina Kurlyandskaya Overview of CFP Work on OSI/LGI FDI Projects in Moldova, Kyrgyzstan, Armeniaand Tajikistan Istanbul, November 29, 2006

  2. The Framework of Programs with CFP Involvement • Policy Forums • National forum onfiscal decentralization: challenges for the Republic of MoldovaChisinau, Moldova,9-10 March, 2006 • Delegated and own local self-government functions in the Kyrgyz Republic – legal, administrative and fiscal aspect and impact on intergovernmental transfersBishkek, Kyrgyz Republic, June 29-30, 2006 • Technical Assistance • Reform of the intergovernmental relation system in Moldova: Technical Assistance to the Ministry of Finance November 2005-September 2006 • Development of Financial Equalization Mechanism in ArmeniaApril 2006, September 2006 • Financing Education in TajikistanOctober 2006 • Training • Fiscal equalisation in theCaucasusBodrum, Turkey,15-18 June, 2005

  3. Major Goals • Involvement of local stakeholders into the decentralization process • Clear and fair delineation of revenue and spending responsibilities between central and local governments • Introduction of formalized procedure for allocation of equalizing transfers • Policy support in financing education

  4. Major Activities and Achievements • Policy Forums • Communicating the necessity of decentralization to major stakeholders • Sharing international experience with local partners • Revealing the various approaches to the problem by stakeholders • Development of road map to decentralization designed by all stakeholders together • Technical Assistance • Analysis of the current situation in quantitative terms • Simulation of different revenue and spending allocation scenarios • Assistance to local stakeholders in decisions making • Assistance in developing the equalization formula • Development of recommendations re efficient government spending on education

  5. Positive Features of OSI/LGI FDI Projects • Involvement of all the stakeholders into discussions and decision making • Systematicefforts to coordinate all donor activities in the field • Short term response to client’s needs and timeliness of projects

  6. Some Internal Difficulties • Involvement of various stakeholders into the Project makes it more difficult: • to distribute and coordinate work • to produce results in due time • to come to commonly agreed decisions

  7. Some External Difficulties • Lack of coordination of technical assistance sponsored by different donors and difficulties in its coordination (Tajikistan, Kyrgyzstan,) • Poor articulation of national laws (Kyrgyzstan) • Insufficientstatistical and budgetary data (Kyrgyzstan) • Low qualification of government employees (Moldova, Kyrgyzstan) • Artificial enforcement of reforms (Moldova, Kyrgyzstan) • Designing reforms in a rush (Moldova)

  8. Recommendations for Future OSI/LGI FDIPlans • After the transfer formula is developed: assistance in its legislative approval and making sure it works • Assistance in development of proper reporting and monitoring systems at local level • Assistance in local data generation and collection • Shifting technical assistance in public finance management to municipal level

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