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Galina Kurlyandskaya Overview of CFP Work on OSI/LGI FDI Projects in Moldova, Kyrgyzstan, Armenia and Tajikistan Istanbul, November 29, 2006. The Framework of Programs with CFP Involvement. Policy Forums

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Galina Kurlyandskaya

Overview of CFP Work on OSI/LGI FDI Projects in Moldova, Kyrgyzstan, Armeniaand Tajikistan

Istanbul, November 29, 2006


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The Framework of Programs with CFP Involvement

  • Policy Forums

    • National forum onfiscal decentralization: challenges for the Republic of MoldovaChisinau, Moldova,9-10 March, 2006

    • Delegated and own local self-government functions in the Kyrgyz Republic – legal, administrative and fiscal aspect and impact on intergovernmental transfersBishkek, Kyrgyz Republic, June 29-30, 2006

  • Technical Assistance

    • Reform of the intergovernmental relation system in Moldova: Technical Assistance to the Ministry of Finance November 2005-September 2006

    • Development of Financial Equalization Mechanism in ArmeniaApril 2006, September 2006

    • Financing Education in TajikistanOctober 2006

  • Training

    • Fiscal equalisation in theCaucasusBodrum, Turkey,15-18 June, 2005


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Major Goals

  • Involvement of local stakeholders into the decentralization process

  • Clear and fair delineation of revenue and spending responsibilities between central and local governments

  • Introduction of formalized procedure for allocation of equalizing transfers

  • Policy support in financing education


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Major Activities and Achievements

  • Policy Forums

  • Communicating the necessity of decentralization to major stakeholders

  • Sharing international experience with local partners

  • Revealing the various approaches to the problem by stakeholders

  • Development of road map to decentralization designed by all stakeholders together

  • Technical Assistance

  • Analysis of the current situation in quantitative terms

  • Simulation of different revenue and spending allocation scenarios

  • Assistance to local stakeholders in decisions making

  • Assistance in developing the equalization formula

  • Development of recommendations re efficient government spending on education


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Positive Features of OSI/LGI FDI Projects

  • Involvement of all the stakeholders into discussions and decision making

  • Systematicefforts to coordinate all donor activities in the field

  • Short term response to client’s needs and timeliness of projects


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Some Internal Difficulties

  • Involvement of various stakeholders into the Project makes it more difficult:

    • to distribute and coordinate work

    • to produce results in due time

    • to come to commonly agreed decisions


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Some External Difficulties

  • Lack of coordination of technical assistance sponsored by different donors and difficulties in its coordination (Tajikistan, Kyrgyzstan,)

  • Poor articulation of national laws (Kyrgyzstan)

  • Insufficientstatistical and budgetary data (Kyrgyzstan)

  • Low qualification of government employees (Moldova, Kyrgyzstan)

  • Artificial enforcement of reforms (Moldova, Kyrgyzstan)

  • Designing reforms in a rush (Moldova)


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Recommendations for Future OSI/LGI FDIPlans

  • After the transfer formula is developed: assistance in its legislative approval and making sure it works

  • Assistance in development of proper reporting and monitoring systems at local level

  • Assistance in local data generation and collection

  • Shifting technical assistance in public finance management to municipal level


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