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DEVELOPMENT AND POVERTY REDUCTION STRATEGY

M o n t e n e g r o. DEVELOPMENT AND POVERTY REDUCTION STRATEGY. Snežana Mijušković, Deputy Minister of Labour and Social Welfare, Head of the PRSP M&E Unit Thessaloniki, May 26-27 , 2005. Ongoing activities. Development and Poverty Reduction Strategy , 2003 (2004-2006) ;

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DEVELOPMENT AND POVERTY REDUCTION STRATEGY

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  1. M o n t e n e g r o DEVELOPMENT AND POVERTY REDUCTION STRATEGY Snežana Mijušković, Deputy Minister of Labour and Social Welfare, Head of the PRSP M&E Unit Thessaloniki, May 26-27, 2005

  2. Ongoing activities • Development and Poverty Reduction Strategy,2003(2004-2006); • Realization of projects within different sectors; • Strategic document referred to different problems solution – defined; • Monitoringa andevaluation system – institutionalized; • Establishing priorities (methodology defined and work of WGs reestablished)

  3. Project status • Over 400 projects were defined (2004-2006) • Financial resources planned for realization

  4. Forthcoming activities • Completing prioritization process (regional conference, national conference); • Publishing data on poverty profile for 2004; • Developing First Progress Report; • Costing; • Making link with budget; • Continuation of the monitoring and evaluation activities; • Defining system of indicators (determining values to be reached).

  5. DPRS – Labor market - characteristics • Employment– 154.300 persons (39.9 % women) • Unemployment - Unemployment rate – 22.3 % - Unfavorable ratio between employment and unemployment – 1:2.2 - Duration - Gender inequality - High share of youth in unemployment - Unbalance between offer and demand of labor force - Regional disharmony - Hidden employment - High unemployment rate among vulnerable population

  6. DPRS – Labor Market • Goals : 1. Labor legislation reform 2. Stimulation of new employment 3. Development and SME sector capacity building

  7. DPRS – Labor market – Labor legislation reform - Making prerequisites for dynamic employment growth and greater labor force mobility; - Harmonization with ILO standards and EU regulations.

  8. DPRS – Labor market- Stimulation of new employment • Stimulation of entrepreneurship a) Increasing competence of enterprises, products and services b) Stimulation of export c) Creation of institutional framework for accelerated entrepreneurship development • Increasing new employment a) Opening new jobs b) Legalization of hidden employment c) retraining and additional training of the unemployed and redundancies d) Substitution of the work of non-residents • Ensuring preconditions for new, primarily foreign investment

  9. DPRS – Labor market- Development and SME capacity building • Increasing number of SMEs in private sector • Increasing diversity among SMEs • Increasing competence • Increasing participation of SMEs in foreign strategic alliances and arrangements of joint investments • Increasing SMEs share in GDP • Increasing SMEs share in total employment

  10. DPRS – Labor market • Increasing RAE employment • Increasing employment of the disabled • Increasing employment of refugees and IDPs

  11. DPRS – Labor Market- effects • Decreased unemployment rate (2002 – 24%, 2004 – 22.3%); • “Program on legalization of existing and new job creation”; - Decree on tax relieves for the unemployed (tax relieves were related to 59.566persons); - Decree on labor engagement of non-residents (2.5€ per day – there were 50.024 persons engaged).

  12. DPRS – Labor market - limitations • Lack of financial resources for program implementation; • Underdeveloped monitoring mechanisms ; • Incompatibility of sectoral policies; • Lack of awareness of the limitations in the Budget resources; • Unbalance among average wage (195.2 € – 2004), poverty line116.2 € consumer basket (244.07 € – 2004).

  13. Labor market : Policies of the Government of Montenegro • “Program on continuing stimulation of new employment and entrepreneurship in Montenegro” – two credit line groups; • “Legalization of existing and new job creation”; • Preparation for quality improvement of the labor force offer (training, additional training,retraining, specialization); • Program on season employment; • Program on apprentice employment; • Program of public works; • Program on employment of non-residents; • Program on employment of the disabled; • Program on RAE employment; • Program on professionalne orientation.

  14. Monitoring and Evaluation Unit www.mnprsp.vlada.cg.yu e-mail:prsp@mn.yu phone: ++ 381 81 482 494

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