Assessing the Impact of CD Investments Capacity Building Facility (CBF) Project Sofia 29-30 September 2008

1. Assessing the Impact of CD Investments Capacity Building Facility (CBF) Project Sofia 29-30 September 2008 KOSOVO

2. The making of Kosova/o - a brief introduction • On June 10, 1999, the UN Security Council passed UN Security Council Resolution 1244, placing Kosovo under transitional UN administration (UNMIK); • In May 2001, UNMIK promulgated a Constitutional Framework for Kosovo that established theProvisional Institutions of Self-Government (PISG), including an elected Kosovo Assembly, Presidency and office of Prime Minister; • International negotiations began in 2006 to determine the final status of Kosovo, as envisaged underUN Security Council Resolution 1244. In February 2007, Ahtisaari delivered a draft status settlement proposal to leaders in Belgrade and Prishtina; • 4th February 2008 the Council of the European Union, prepared the Joint Action 2008/124/CFSP which establishes the creation of the European Union Rule of Law Mission in Kosovo - EULEX • On the 17th of February 2008, the Assembly of Kosovo declared Kosovo's independence as theRepublic of Kosovo • Establishment of the International Civilian Office, as envisaged in the Comprehensive Proposal for the Kosovo Status Settlement; • Constitution of the Republic of Kosovo, certified by the International Civilian Representative on 2 April, entered into force on 15 June 2008.

3. The Problems Enabling Environment: Lack of vision from the beneficiaries:lack of defined long-term goals, priorities and expectation, uneven distribution of resources and access to training/development, insufficient evaluation of needs, an absence of any assessment of the content and impact of training, lack of ownership from the Government (passive receive mode), the public administration and civil service reform processes have been slow; Official Development Assistance (ODA) approach: ad-hoc, driven by donor supply and interests rather than Kosovo’s demands and needs, not linked to any reforms, mainly a singular focus on individual skills, little coordination amongst the donor community, use of expensive international technical assistance that has substituted rather than built the Government of Kosovo’s capacities, Individual level: The young generation: highly educated individuals without relevant work experience in the civil service and lacking managerial and leadership skills; The older generation: ample work experience (not necessarily in the civil service) in a non-existent system, equipped with outdated notions of management; Organisational level: Lack of clearly defined policies, uncoordinated and/or undefined procedures, weak or non-existent frameworks.

4. UNDP Intervention • Capacity Building Facility (CBF) Project: a joint UNDP and Kosovo Foundation for Open Society (Soros Foundation) initiative as well as Capacity Building for European Integration (CBEI) in partnership with European Agency for Reconstruction (EAR); • Aim: strengthening democratic institutions, improving public administration, and implementing “Standards for Kosovo” plan; • Concept: to provide relevant, on-the-job skills development based on the needs of beneficiaries, linked to a greater agenda yet paying particular attention to the individual, utilising national, regional and Diaspora expertise; • Why: lack of results from previous interventions, moving from supply driven interventions, little relevance for the civil servants, etc.; • How: demand-driven, participatory approach, ownership by the beneficiary, CB v CR; • Strategic approach: linked to Standards for Kosovo, attempt to link individual and organisational levels, concentration on core issues.

5. Impact on beneficiaries • Greatest impact in the area of core issues; • In terms of business processes, contributed to rationalising structures, simplifying procedure, more effective utilisation of human and financial resources; • Assisted in institutionalising processes, including knowledge sharing and communication; • Impact on organisational culture by improving information sharing, within the Ministry, with other ministries and external stakeholders; • Impact on individual level includes increased staff knowledge and confidence, promoting professionalism and a culture of accountability, introducing changes in attitude and/or behaviour.

6. Concrete results – sample Ministry of Finance and EconomyDepartment of Fiscal Policies: guidance and technical advice in reviewing and improving of duty & excise and taxation policies; recommendations for the development of a legal framework for fiscal policies;Permanent Secretary’s Office:advice and help build the technical knowledge of the Permanent Secretary and MEF Senior Officials on external relations framework and dialogue with the international financial institutions (IMF, World Bank, EBRD EIB etc.) on economic and financial policy; external borrowing and public debt management, and policy framework for creating enabling environment to attract foreign direct investments. • Ministry of JusticePermanent Secretary’s Office: assist in review of the organisational structure and provide recommendations where appropriate, resulting in improvement of administrative support at the Ministry and, particularly, the Kosovo Correction Services. • Ministry of Trade and Industry • Department of Trade: provided technical support and coaching toward the establishment of a Permanent Negotiation Team, the Secretariat for Coordination of Trade Policy Working Group, a consumer protection law, and an on-going dialogue with neighbouring countries about a Regional Free Trade Agreement.

7. Concrete results – sample Office of the Prime Minister Office for International Cooperation and Regional Dialogue: developed a “Road Map” and benchmarks for transforming the into a future Ministry of Foreign Affairs. Municipalities Pilot Municipality of Hani i Elezit: advising in the overall management of PMU and ensuring the functioning of PMU; using the proper information in the budget performance of the PMU; advising in the budget expenses ad help in the collaboration between PMU and MEF; effective and efficient management of the resources; advising in the proper application of Regulation, Administrative Orders, and personnel issues; advising in the promotion of the Development Strategy of the PMU. Ministry of Environment and Spatial PlanningWater Department: advice and guidance in legal drafting techniques, including recommendations for improvements in existing laws and administrative orders and completion of legal framework in accordance with the Acquis.

8. Lessons learned – what worked Demand-driven approach:allows for the beneficiaries to define their agenda, based on their, identified needs; Ownership: building ownership by involving the beneficiary at major decision points in the process ensures better results and a better chance for sustainability; Use of national, Regional, Diaspora experts:value for money, understands the context, ability to “get stuck in”; Linkage to “Standards”: ensured immediate buy-in by the Government due to the importance of the Standards for the future of the country; The right entry point: relating to individual development needs which is easier to understand.

9. Lessons learned – what should we have done better Lack of capacity assessment:unable to measure progress at individual and organisational level; Rigorous approach to CD:lack of defined baseline, targets and indicators; Comprehensive approach to CD for sustainable results:much of CD was informal and ad-hoc, and did not (always) link the three levels of CD; Not enough attention to institutional arrangements in weak organisations:running the risk of CR v CD and un-sustainability of results; Sustainability of CD investments:no clear indicators which would support the assessment of CD results and no exit strategy which would ensure sustainability of assistance.

10. What next? Capacity assessment Rigorous approach to CD Comprehensive approach to CD for sustainable results Attention to institutional arrangements Sustainability of CD investments Government leadership Leading to: Civil Service Capacity Development Strategy

11. Links www.eulex-kosovo.eu/home www.unmikonline.org www.crisisgroup.org www.ico-kos.org