Local/National Level Economic Policy Dialogue: the Competitiveness Council and Economic and Social Councils in Croatia

1. Local/National Level Economic Policy Dialogue: the Competitiveness Council and Economic and Social Councils in Croatia Joe Lowther; Kresimir Sever February 1, 2006

2. Institutional Framework • National Competitiveness Council • National Economic and Social Council (GSV) • Local Economic and Social Council • Ad hoc local economic development groups • Participation in Parliament and other Bodies • Parliament committees (non-voting) • Management boards of employment service, health insurance institute, pension insurance institute • National committees and councils

3. USAID’S Projects to Assist Policy Dialogue in Croatia • Competitiveness Project Goals re NCC • Develop a business competitiveness council Develop a national competitiveness council • Tripartite Dialogue Project Goals • Improve dialogue, nationally and locally, on important economic and social issues • Develop a secretariat for the GSV to provide unbiased analysis and logistical support. • Improve methods for resolving disputes between the social partners.

4. Challenges for the Councils • How to agree on the problem (a precondition for developing solutions)? • How to make their joint work more efficient? • How to avoid unproductive squabbles in the media? • How to get the public and policymakers to take the GSV seriously?

5. Learning from Other Countries • Ireland: a role model • Austria: trade partner with historical influence • Netherlands: successful Polder model • Belgium: regional and national approaches • E.U.: upcoming accession

6. Implementing Lessons Learned from Other Countries • Establish secretariats • Obtain unbiased analysis and use it to develop consensus on policy • Develop a vision and strategy • Limit issues to work on • Project image of competence and importance

7. Local Input on Policy Success Stories • Brodsko-Posavska County hosted a national Government cabinet session to discuss local issues. • Medimurska County is a model local GSV that has successfully tackled many local and national issues Problems • Local government stymies progress due to lack of commitment, politics, and changing representatives • Employers lack commitment and don’t have time to fully participate • Sometimes trade unions cannot fill the leadership void due to lack of confidence or competence

8. Lessons Learned by Councils • The council secretariat is important and should answer to the entire council • A vision and strategy document should be based on analysis and thorough dialogue • Committees need a mandate, leadership, and their results must be used by the council • Local councils need local commitment and attention from the national government

9. What the project did right Delivered research, analysis, and training to the social partners Facilitated development of improved labor conciliation Attained broad understanding of policy issues and dialogue process Supported local GSVs Attempted to facilitate GSV strategic management What the project did wrong Failed to obtain acceptance, buy in, on behalf of the GSV members Failed to obtain commitment by social partners to develop the Office for Social Partnership Too slow to facilitate dialogue Did not put enough emphasis on GSV committees and their results Tripartite Dialogue Project

10. Questions and Answers