From Poverty Reduction to Social Inclusion...

1. From Poverty Reduction to Social Inclusion... Improved delivery of government policy! Zarko Sunderic Head of Deputy Prime Minister’s Poverty Reduction Strategy Implementation Focal Point Zagreb, 27 November 2008

2. Poverty Reduction Strategy of Serbia • First multi-sector strategy of democratic government • Comprehensive approach: socio-economic development • National ownership – participatory process • Multidimensional understanding of poverty • Evidenced based – LSMS 2002 and 2003 • Complimentary to European Integration process • Aligned with UN MDGs – used as benchmarks Key pillars: • Dynamic economic growth with equity; emphasis on private sector development and job creation • Prevention of new poverty as a consequence of economic reforms • Maintenance and improvement of social safety net for the traditionally poor and vulnerable groups

3. Policy framework • European Integration • Poverty Reduction Strategy • Public Administration Strategy • Sustainable Development Strategy • 20+ sector strategies • Thematic policy documents Fragmented policy framework Challenging implementation...

4. PRS Implementation Principle • Mainstream poverty alleviation into day-to-day activities and regular programming responsible government institutions. • Linking PRS with other development priorities primarily EI process – avoid fragmentation • Strong emphasis on local level implementation • Build partnerships to ensure synergy and maintain national ownership

5. Poverty Statistics: 2002 vs.2007 • Absolute poverty: consumption - LSMS (2002, 2003 and 2007) • RSD 8,883 monthly (app. 111€) per consumption unit • RSD 19,543 monthly(app. 244€) for three-member household • Poverty halved in a five-year-period – PRS main goal achieved • 2002: 14,0% • 2007: 6.6% - app. +500,000 brought out of poverty • Extreme poverty/food line is not identified • Concentration above poverty line still high – vulnerable to external shocks (current financial crises) • Inequality low and unchanged • Poverty profile unchanged • The main cause of poverty is unemployment, largely resulting from low education among labour active members of a household

6. Who are the most poor in Serbia?

7. Main achievements of PRS Implementation (I/II) • Poverty halved between 2002 and 2007, • PRS priorities integrated in Budget Memorandum, National Investment Plan (NIP), • PRS priorities in strategies and annual operation plans of line ministries – GOP process, • Strengthened Policy Coordination Function in the General Secretariat of Government of Serbia, • EC MIPD 2007-2009 reflects PRS priorities and recognized PRS as complementary to European Integration process, • Programming of donor support based on PRS priorities,

8. Main achievements of PRS Implementation (II/II) • Increased cooperation between stakeholders in and out of Government: • NGOs through Civil Society Focal Points and Local Initiatives participated in policy development and implementation • National priorities reflected in strategies and implementation on local level • Involvement of business sector – Corporate Social Responsibility • Policy Impact Assessment of implemented policies 2003-2007 as basis for future policy development • Smooth transition toward social inclusion?

9. Mechanisms for M&EMeasuring policy implementation and results Data for policy making, RSO capacities improved • Assumed responsibility for reporting on poverty statistics using Household Budget Survey as of 2006 (relative poverty) • Living Standard Measurement Survey in May 2007– basis for impact assessment and policy revision process • Unit for social statistics established • Preparation for SILK – nationalise Laeken indicators Setting indicators • Optimization of the existing dataand PRS indicators • Introducing social inclusionindicators Reporting • Annual Report of the GoS • 2nd Progress Report on the PRS implementation

10. Key policy challenges • Employment and job creation, including for vulnerable groups, • Better targeting of social benefits (cash), • Improved integration of education and employment • Decrease drop-out and improve quality and efficiency of education system (PISA) • Rural development • Improve healthcare for vulnerable groups • Social housing • Reform of pension system • Fight against discrimination

11. Challenges in improving delivery of Government policies • Improve strategic planning, policy coordination and priority setting at Government level, • Link policy and resource allocation (Budget and International) on annual and medium term, • Improve accountability across Government by setting clearer targets and regular reporting/monitoring • Strengthen capacity for policy development at LM level and develop coherent requirements for sector strategies, • Develop requirements and improve capacity for operational planning, implementation and monitoring across Government, • Improve relevance and quality of documentation submitted to Government for decision

12. Lessons learned – international support... • Projects with strong national leadership and ownership has bigger chance to succeed, • Timing and choice of delivery mechanism are key successes factors, • In an changing environment, predictable and flexible support has the better chance to succeed, • Limited absorption capacity of recipient / national partner are a key challenge, • International support can provide critical expertise and resources but this is not alone enough to achieve sustainable change and reform

13. Government of Republic of Serbia Deputy Prime Minister’sPoverty Reduction Strategy Implementation Focal Point Phone: +381 11311 47 98 prs.ifp@sr.gov.yu www.prsp.sr.gov.yu