FOURTH POVERTY REDUCTION STRATEGIES FORUM
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FOURTH POVERTY REDUCTION STRATEGIES FORUM BOSNIA AND HERZEGOVINA. Ljerka Maric , BH Council of Ministers 26. June, 2007 Ath ens, Greece. MTDS - LATEST INFORMATION ON IMPLEMENTATION. Report on Implementation of MTDS is prepared on semi-annual basis .

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FOURTH POVERTY REDUCTION STRATEGIES FORUM BOSNIA AND HERZEGOVINA

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FOURTH POVERTY REDUCTION STRATEGIES FORUM

BOSNIA AND HERZEGOVINA

Ljerka Maric, BH Council of Ministers

26. June, 2007 Athens, Greece


MTDS - LATEST INFORMATION ON IMPLEMENTATION

Report on Implementation of MTDS is prepared on semi-annual basis.

  • By the end of 2006, 922 measures were planned for implementation

  • Close to 62% of the measures, or 569 measures were either completed or in continuous implementation

  • Out of the total number of measures, 66 measures were not implemented, which is 7.2% of the total number of measures


MTDS - LATEST INFORMATION ON IMPLEMENTATION (2)

Success in implementation of MTDS measures by B&H governments


MTDS - LATEST INFORMATION ON IMPLEMENTATION (3)

Success in implementation of MTDS measures by B&H parliaments


MTDS - LATEST INFORMATION ON IMPLEMENTATION (4)

Success in implementation of MTDS measures in area of macro-economic framework and private sector growth

Source: Report on implementation of MTDS for period August 2003-December 2006


MTDS - LATEST INFORMATION ON IMPLEMENTATION (5)

Success in implementation of MTDS measures in area of sectoral priorities


BASIC ECONOMIC INDICATORSGROSS DOMESTIC PRODUCT

Gross domestic product, KM million

Source: BiH Agency for Statistics

*Estimate


FOREIGN TRADE SECTOR

Introduction of VAT

Source: BiH Central Bank


REGISTERED NUMBER OF UNEMPLOYED IN B&H,MONTHLY DATA (in ,000)

Source: Employment agencies of FBiH, RS and DB, DB Statistical office


AVERAGE WAGES IN B&H (in KM), MONTHLY DATA

Source: BiH Agency for Statistics


INDIRECT TAXATION INCOME (in KM million)

January 1, 2006 – Introduction of VAT

January 1, 2005– Transfer of all authority for collection of indirect taxes to B&H Indirect Taxation Authority

Source: B&H Indirect Taxation Authority


B&H APPROACH TO DEVELOPMENT

Post-war BiH has had two types of documents which define strategic development directions at the state level, to date:

  • Documents oriented towards World Bank / IMF documents targeting international donations and loans/credits (PRSP, MTDS..)

  • Documents oriented towards EU  targeting the EU accession process (EU Accession Strategy, NDP...)

  • Apart from those there are other policy analysis documents:

    • Variuos types of statistical research

    • UNDP Human Development Report

    • Strategic donor documents, which represent the basis for their support

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    MAIN CHARACTERISTICS OF THE MTDS PROCESS

    The planning of national development is the core of the MTDS document and process and it consisted and consists of the following steps :

    • Status diagnosis

    • Moves toward planning and allocation of funds

    • Policy Implementation process

    • M&E development

      These steps should provide precondition for evident based policy makingapproach.

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    CHALLENGES IN IMPLEMENTING & MONITORING THE MTDS

    • MTDS has wide spread of terminology, targets and indicators

    • Multi level Government with variable response to implementation of MTDS measures

    • Limited capacity to manage implementation and monitor

    • MTDS not effectively connected with budgets

    • Very poor prioritization of the measures in the original MTDS

    • Little connection between macro goals and local planning

    • Many information and data gaps, particularly regarding social sector

    • EPPU/DEP Lacking of contacts at local levels to develop qualitative monitoring

    • Information related to administrative measures rather than impact on service delivery or Impact citizens

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    CHALLENGES IN IMPLEMENTING & MONITORING THE MTDS (2)

    • MTDS process represents progression and learning process

    • Up to date implementation & monitoring process increase capacity of public administration on state and entity levels for creation of evident base policy making

    • DEP and partners currently

      • building capacity

      • developing new information and new processes

      • establishing local linkages to build up local level dataand connections

      • working on qualitative information on effective implementation performance

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    LESSONS LEARNED and MAIN RESULTS OF MTDS PROCESS

    • Common activities relating to development of B&H ( state, entities, DB) are possible

    • For successful implementation it is necessary to respect political reality

    • Commitment of the decision makers required for achievement of goals

    • Prioritisation of activities and resource allocation required

    • Introduction of responsibilities

    • Initial steps in capacity building of the public administration bodies

    • Better coordination between governmental structures on all levels

    • Creation of the structure for support of evidence base policy making

    • Creation of the structure for M&E of implemented tasks and activities

    • Cooperation with civil society is crucial for the success of the process

    • Without support of international community B&H would not be able to implement the process

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    EU INTEGRATION PROCESS- FROM MTDS TO NEW DEVELOPMENT STRATEGY (DS) and STRATEGY for SOCIAL INCLUSION (SIS)

    EU integration process includes several milestones:

    • Stabilisation and Accession Process (SAP)

    • Stabilisation and Accession Agreeement (SAA)

    • Preaccession road starts

    • European partnership

    • The status of country candidate

      This process also includes preparation of development documents like B&HDS 2008-2013 that will be a basis for NDP.

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    NEW B&H DS 2008-2013 – BASIC CONTEXT

    In accordance with obligatory directives of the Community, new Strategy as a basis for NDP should contain:

    • National development goals;

    • Instruments to be used for achieving these goals;

    • Financial and institutional conditions necessary for implementation;

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    DS – STRUCTURE

    In accordance with obligatory provisions and informal guidelines of EC, the new DS ( and future NDP)should includes the following:

    • Analysis of situation (estimate of current social –economical situation)

    • SWOT analysisof situation

    • Development strategy and goals

    • Ex ante evaluation (estimation of feasibility and expected impacts of programmes before their implementation)

    • Coherency and consistency of strategy

    • Financial tables: budgetary and others programmes

    • The Action Plan for implementation of measures must be connected to DS

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    ACTION PLAN

    An Action plan would include

    • Brief description of operational programmes

    • Action plan of activities

    • Institutional structure of implementation

      A detailed DS and Action Plan could be a preliminary NDP

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    SOCIAL IINCLUSION STRATEGY (SIS), JOINT INCLUSION MEMORANDUM (JIM) AND NATIONAL ACTION PLAN (NAP)

    • Considering that the new B&H DS 2008-2013 will be more focused to economic development of the B&H, DEP will also prepare Social Inclusion Strategy.

      The reasons for preparation of SIS are:

    • The number of excluded citizens in B&H is extremely high ( 50,32% ) but some groups are more jeopardize than others

    • Momentarily the social policy in B&H is more focused to social protection than to social inclusion

    • The main characteristics of social protection and spending for social protections are: lack of targeting (defining the groups of users), lack of adequacy and efficient centralization

    21


    SOCIAL IINCLUSION STRATEGY (SIS), JOINT INCLUSION MEMORANDUM (JIM) AND NATIONAL ACTION PLAN (NAP) -3

    • In 2007 B&H will start with preparation of the first SIS

    • The purpose of SIS is to ensure better social inclusion and equal treatment of all B&H citizens as well as to fulfil precondition for EU integration.

    • Beside sectoral and intersectoral orientation the SIS will be focused to specific target groups as well

    • The main elements and strategy recommendations from B&H Strategy for disabled persons will be part of SIS

    • The values from DS and SIS will be framework for JIM.

    • The JIM has to prepare country for full legal participation in Open method of coordination of social inclusion.

    • Under this process, every country has to prepare a National Action Plan for exclusion(NAP/inclusion) for every two years based on common goals.


    RELATIONSHIP BETWEEN DS, SIS and MTDS, MTEF and OTHER DEVELOPMENT DOCUMENTS

    The new B&H DS and SIS should take account of existing:

    • Previously adopted socio-economic development documents of the country (The priorities from MTDS that were not implemented)

    • Four year or three year fiscal strategy & Public investment documents

    • Sectoral strategies

    • EU accession documents

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    CONCLUSION

    • B&H is to embark on successor to MTDS

    • This should be a natural development from the PRSP and MTDS process toward the EU models and new DS and SIS

    • Take account of MTDS learning

    • Reflect current needs of B&H including jeopardized groups (disabled persons, as well)

    • Be coordianted through DEP

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