NGO (and private) service providers - ‘Projectisation’ versus outsourcing

1. NGO (and private) service providers - ‘Projectisation’ versus outsourcing Sofia Consultations, July 2007 Working Group 3: Family Support Services

2. NGO (private) service providers – case of Bosnia and Herzegovina • NGO (private) sector social protection service provision introduced through projects/international influence. • The mixed economy of welfare: from state and informal (family) to introducing NGO and private provision. • ‘Projectisation’ still present and we are still not at the stage of the system outsourcing

3. Project example – Piloting of Child Protection System Reform at Central and Local Level in BiH (UNICEF, IBHI) • Situation analysis/identification of child protection problems/needs • Child protection system mapping • Identification of gaps in the child protection system • Training of key actors • Establishment of Municipal Management Boards (MMBs) • Selection of priorities for intervention • Development of Municipal Action Plans (MAPs) • MAPs implementation and monitoring • Special Focused Projects (25 projects in 5 municipalities) • Ensuring sustainability/budget allocations by municipality primarily

4. Special Focused Projects Purpose: i) to pilot services, ii) to meet the priority need identified • Meeting a priority need through provision of service • Locally owned • Tender for delivering services for priority groups/interventions (at municipal level) • Cooperation between state and NGO sectors and inter-sectoral cooperation a must • Selection of the best service and awarding of grant (5 grants per municipality of approx. 7,500 EURO each) • Delivery and delivery monitoring (project implementer and MMB)

5. What is good about this model? • Governmental – Non-governmental (private?) sector model of cooperation introduced and demonstrated (trust building) • Governmental sector given opportunity to outsource services and focus on its core function • Service provision opened to NGO/private sector • Service providers can compete for provision of services in a transparent way/under the same conditions

6. What is missing? • Still project driven and not systemic • Little control over services provided and users: type and content of service not controlled and no referral mechanism • Limited control over quality of service: no standards (what outcomes are they to achieve for the user) • The issue of scaling up and sustainability

7. Moreover • There is still mistrust between state/NGO sectors • Governmental sector: • Engages NGO sector because donor insists • Sees NGO sector as non-transparent (funds, beneficiaries) • Does not see NGO sector as competent (no capacity to resolve the case; the case ends up with state services) • NGO sector: • Sees governmental sector as without initiative, rigid, rule bound and bureaucratic • Does not necessarily see the need to engage with the governmental sector • Sees themselves as independent

8. The mixed economy of welfare framework • The role of the state in services provision: • Regulation • Financing (but not solely) • Provision (to be kept to a minimum) • Providers of services (NGO, private and state) compete for service provision

9. Some preconditions for closer cooperation between statutory bodies and service providers • Trust and adequate understanding of their respective roles and the potential of working in collaboration • Funding for services provision existent within the system (currently project funding; allocation of funds for services within budgets; money follows client) • Legislative/regulative framework for outsourcing and opening this to NGO/private sector as service providers • Existence of standards for services provision (outcomes expected for user; costing), licensing and accreditation, and monitoring of delivery • Identifying what is to be outsourced/planning of services required: which services, for how many users, over what period of time, etc. • Existence of required services/service providers capacity • Tendering, contracts, MoUs, agreements, enabling standards