MANAGING EXTERNAL AID PROGRAMMES

1. MANAGING EXTERNAL AID PROGRAMMES mag. Peter Ješovnik Deputy Director Beograd, 7-8 december 2005

2. PRE-ACCESSION PROCESS – MILESTONES • 1992: PHARE Framework Agreement signed (September) • 1993: Cooperation Agreement signed (April) • 1993: Cooperation Agreement entered into force (September) • 1993: Exploratory talks for Association Agreement with started (December) • 1995: Negotiations for Association Agreement started (March) • 1996: Association Agreement signed (June) and the Slovenia applied for full membership. • 1997: Interim Agreement entered into force (January) • 1998: Accession negotiations started (April) • 1999: Association Agreement entered into force (February) • 2002: Accession negotiations concluded (13th December) • 2003: Accession Treaty signed (16th April) • 2004: Membership in the EU (1st May)

3. TRANSITION INTO MARKET - DRIVEN ECONOMY • Majorstructural changes. • Shift from social to private ownership. • Shift from industrial to service economy. • Shift from large to small-sized companies. • Redirection from the markets of former Yugoslavia into more competitive European markets. • Shift from a supply driven economy into a demanded led. This was made possible by the liberalization of trade, liberalization of the Company law, as well as the changes in ownership structure of the existing socially owned companies.

4. AND WHAT IS THE FINALROLE OF THE ACCESSION TO THE UNION • BREAKING OF THE EXISTING BARRIERS OF INWARD-ORIENTED STATE OF MIND BY MORE REFRESHING OPEN-SOCIETY WIND,INCREASED SELF-CONFIDENCE • ESTABLISHMENT OF COMMON EUROPEAN RULESRESULTING IN INCREASED TRANSPARENCY, STABILITY AND PREDICTABILITY OF THE ECONOMY, WHICH IS PARTICULARLY IMPORTANT FOR OPERATING OF ECONOMIC SUBJECTS • BECOMING A PART OF EUROPEAN AREA OF STABILITY SECURITY AND PROSPERITY BASED ON POSITIVE INTERNAL SOLUTION SEEKING INSTITUTIONAL FRAMEWORK

5. PRE-ACCESSION PROCESS – FINANCIAL ASPECTS • Between 1992-2003, Slovenia has received assistence from three pre-accession instruments: • PHARE – 339,1 MEUR • ISPA – 84,5 MEUR and • SAPARD – 25,7MEUR TOTAL: 449,3 MEUR

6. EVOLUTION OF PHARE – ROADMAP FOR CARDS/ISPA PERIOD

7. MANAGEMENT REFORM FOR PHARE 1997 REFORM (ACCESSION DRIVEN) 1997

8. DIVISION OF RESPONSIBILITIES UNDER DIFFERENT IMPLEMENTATION SYSTEMS

9. PROGRAMMING • Line ministries • National Aid Co-ordinator (NAC) • EC Delegation • Commission Services HQ

10. IMPLEMENTATION • National Fund = MF/NAO (Paying) • Implementing Authority= CFCU/PAO (Tendering, Contracting) • Implementing Agencies at the Ministries (Tendering, Contracting) • Final beneficiaries: ministries/institutions/local communities (Contracting Authority) • EC Delegation (ex-ante control) & NAC (Observers)

11. MONITORING • LINE MINISTRIES/CONTRACTING AUTHORITIES/AT PROGRAMME LEVEL; • STEERING COMMITTEES/AT PROJECT LEVEL; • SECTORAL MONITORING SUB-COMMITTEES (2 PER YEAR); • MONITORING COMMITTEES ISPA, SAPARD (2 PER YEAR); • JOINT MONITORING COMMITTEE (1 PER YEAR) . * Under centralised implementation system monitoring was responsibility of the european commission.

12. EVALUATION • Centralised Implementation System (CIS) • Ex-ante: EC • Mid-term: EC • Ex-post: EC • Decentralised Implementation System (DIS): • Ex-ante: EC Delegation • Mid-term: EC (OMAS, EMS etc.) • Ex-post: EC • Extended Decentralised Implementation System (EDIS): • Ex-ante: CFCU & Line ministries • Mid-term: NAC • Ex-post: EC * SAPARD is implemented exclusively under EDIS.

13. NATIONAL AID COORDINATOR - GOEA • Overall responsibility for planning, programming, implementing and monitoring of PHARE programme. • Responsible also for co-ordination of activities, related to accession activities. • Minister, responsible for European Affairs in Slovenia was nominated as NAC. • Sector for technical assistance have implemented co-ordinatio tasks on his behalf.

14. LESSONS LEARNED AT GOEA • PLANNING OF TIME SCHEDULE FOR THE WHOLE PROJECT CYCLE. • ROLES AND PROCEDURES AT EACH STAGE MUST BE CLEAR. • ADDRESSING OF PROBLEMS IN A TIMELY MANNER (EXPIRY DATES). • ABSORPTION CAPACITY OF BENEFICIARY SHOULD BE CHECKED BEFORE APPROVING NEW PROJECTS/ LESSON LEARNED FROM PREVIOUS PROGRAMME YEAR. • FOR PROJECTS WITH SEVERAL BENEFICIARIES, STEERING COMMITTEES ARE NECESSARY. • THE PROGRAMMING CYCLE MUST FIT WITH THE NATIONAL BUDGETARY CYCLE (GOOD PLANNING OF NATIONAL CO-FINANCING FUNDS – MULTI-ANNUAL APPROACH). • ASSURANCE OF ADEQUATE LOCAL STAFF SUPPORT (TWINNING). • CO-ORDINATION WITH OTHER DONORS. • INCLUSION OF EC DELEGATION STAFF IN ALL PHASES OF PROJECT MANAGEMENT CYCLE TO AVOID PROBLEMS AT LATER STAGE (MONITORING, EVALUATION). • EXCEPTIONS ARE ALWAYS POSSIBLE – NEGOTIATE WITH EC AND DELEGATION FOR DEROGATIONS ON CASE-BY CASE BASIS.

15. ECONOMIC COHESION OF EU-15 IN 1980 OECD, 2004

16. ECONOMIC COHESION OF EU-15 IN 2002 OECD, 2004

18. COMPARISON OF TIME DISTANCES: USA-EU15 AND EU15-SLO

20. IS SLOVENIAN ECONOMIC COHESION IMPROVED?OLD RESULTS – NEW MESSAGES?

21. SHARE OF HI-TECH PRODUCTS IN EXPORT (1999)

22. GROWHT OF STUDENT POPULATION 1990/91 2003/04 University of Ljubljana: 22.824 55.993 University of Maribor: 10.741 24.020 University of Primorska: - 4.373 Colleges: - 2.545 Upper-secondary schoole: - 12.061 SUMMARY:33.565 98.992