Progress in PRS Implementation: The Republic of Serbia

1. Progress in PRS Implementation: The Republic of Serbia Conference on Labor Markets, Growth and Poverty Reduction Strategies May 27-28, 2005 Presented by Ivana Aleksić, Team Manager Poverty Reduction Strategy Implementation Focal Point Deputy Prime Minister’s Office of the Republic of Serbia

2. Presentation Outline • Recent PRS development in Serbia • Serbia’s Development Framework • PRS implementation principles • Priority areas for implementation process • Challenges

3. Looking back… • The Government of Serbia adopted PRS in October 2003, after a wide participatory process • PRS implementation design for a medium term period (2004-2007) with effects expected in the long run as well (2010) • Key elements of the PRS as a programmatic government document: • Analysis of poverty characteristics and profile in Serbia • Key strategic directions/ areas of recommendations

4. Reminder: PRS key pillars • Dynamic economic growth with emphasis on job creation • Prevention of new poverty as a consequence of economic restructuring • Maintenance and improvement of social safety net for the traditionally poor and vulnerable groups Nearly halving poverty by 2010

5. DPM’s PRS Implementation Focal Point • Role to support, coordinate, oversee and report about the PRS implementation • Established in September 2004, fully operational since November 2004 • Development of the operational framework for the PRS implementation • Participatory approach: support to reactivation of Advisory Committees • Promotion of the PRS in general • IFP initiative and Government decision on the establishment of the Working Group for Poverty Measurement

6. Serbia’s Development Framework • Linking European Integration process and PRS implementation: • Multidimensional and multisectoral • Complementarity of the goals of European Partnership and Poverty Reduction Strategy • PRS aligned with the European Social Inclusion agenda • Alignment with the UN MDGs • Relation of the PRS to sector strategies: • National Employment Strategy, National Plan of Action for Children, refugees, people with disabilities, other sectoral strategies

7. Principles of implementation • Mainstreaming • Promoting national ownership • Linking PRS and EU integration priorities • Local level implementation • Partnership in implementation • Catalyst for sustainable changes of the government system

8. Priority areas • Promotion of PRS implementation • Monitoring and Evaluation • Communication/ Outreach/ Participation • Institutional arrangements to sustain PRS implementation Towards improving policy coordination and prioritization at the central government level HIGHLIGHTS TO FOLLOW…

9. Working Group on Poverty Measurement (M&E) • To adjust existing methodology for poverty monitoring to the permanent national data source (HBS of Republic Statistical Office instead of LSMS) • Potentially, a permanent expert body for poverty analysis and social statistics • Gradual introduction of European indicators (based on the relative poverty concept) and social inclusion

10. Poverty in 2003 vs. 2002 (M&E)(G.Krstic) • Based on preliminary analysis, every tenth citizen of Serbia is poor in 2003 (10.5%) • Proportion of poor in general population most likely between 8.5%-12.9% in 2003 • Poverty rate unchanged between 2002 and 2003 (10.6% in 2002) • Relative to the region, poverty in Serbia similar to Romanian, lower than in Albania, higher than in Bulgaria and Poland (ECAPOV II, World Bank, 2005) 2004 poverty estimates expected by July 2005

11. Poverty in 2003 vs. 2002URBAN vs. RURAL

12. Poverty in 2003 vs. 2002REGIONAL DISTRIBUTION

13. Participatory approach (comm./outreach) • Line ministries as key actors in the implementation • DPM’s Office and PRS Implementation Focal Point • National Assembly: Committee for Poverty Reduction • Other PRS Advisory Committees: • Civil Society • Local Self-Governments • Social partners (business and employers’ associations and trade unions) • International development partners (donors)

14. Promotion of PRS implementation • Sectoral action plans in the line ministries: linking PRS and EU priorities • Integration of PRS priorities into the budget—full budget cycle: • Political decision • Technical/ sector level implementation • Sector support approach in allocation of the development assistance

15. Promotion of PRS implementation • Participation in the Joint Project: • Central policy coordination—5 central gov’t institutions: PRS IFP, Serbian European Integration Office, Ministry of Finance, Ministry of Int’l Economic Relations, General Secretariat • Integrated Plans of Action in 4 pilot ministries: • Ministry of Labor, Employment and Social Policy • Ministry of Economy • Ministry of Trade, Tourism and Services • Ministry of Health

16. Progress report in preparation • Reform framework • Economic performance update • Line ministries reports • Working Group on Poverty Measurement • Advisory Committees’ activities • Legislative overview • Challenges in implementation

17. Inst. arrangements to sustain PRS implementation • Improving government planning and prioritization process: • Links to the budget • Links to the available development funds • Shift towards programmatic budget planning • Shift towards sector support in allocation of development aid assistance • Future arrangements for PRS function at the central government level

18. Looking ahead: challenges • Lack of policy coordination function at the central government level • Lack of operational knowledge to translate policy objectives into measures and activities • Qualifying for the support from the European development funds in the next budget period 2007-2013 • Implications of the new status in the accession process

19. Conclusions • PRS - one of priorities of the Government of RS • Strategic goal: halve poverty until 2010 • Government and non-government stakeholders together • Key contribution of the IFP: active in changing the approach