MANAGING EXTERNAL AID MANAGING EXTERNAL AID PROGRAMMESPROGRAMMES

mag. Peter Ješovnikmag. Peter JešovnikDeputy DirectorDeputy Director

Beograd, 7-8 december 2005Beograd, 7-8 december 2005

• 1992: PHARE Framework Agreement signed (September)1992: PHARE Framework Agreement signed (September)• 1993: Cooperation Agreement signed (April)• 1993: Cooperation Agreement entered into force (September)• 1993: Exploratory talks for Association Agreement with

started (December)• 1995: Negotiations for Association Agreement started (March)• 1996: Association Agreement signed (June) and the

Slovenia applied for full membership.• 1997: Interim Agreement entered into force (January)• 1998: Accession negotiations started (April)1998: Accession negotiations started (April)• 1999: Association Agreement entered into force (February)• 2002: Accession negotiations concluded (13th December)2002: Accession negotiations concluded (13th December)• 2003: Accession Treaty signed (16th April)• 2004: Membership in the EU (1st May)2004: Membership in the EU (1st May)

PRE-ACCESSION PROCESS – MILESTONESPRE-ACCESSION PROCESS – MILESTONES

• Major structural changesstructural changes.• Shift from social to private ownershipprivate ownership.• Shift from industrial to service economyservice economy.• Shift from large to small-sized companies.• RedirectionRedirection from the markets of former Yugoslavia into

more competitive European markets.• Shift from a supply driven economy into a demanded led.

This was made possible by the liberalization of This was made possible by the liberalization of trade, liberalization of trade, liberalization of the Company law, as well as the Company law, as well as the changes in ownership structure of the existing the changes in ownership structure of the existing socially owned companies.socially owned companies.

TRANSITION INTO MARKET - DRIVEN ECONOMY

AND WHAT IS THE FINAL ROLE OF THE ACCESSION TO THE UNION

• BREAKING OF THE EXISTING BARRIERS OF INWARD-ORIENTED STATE OF MIND BY MORE REFRESHING OPEN-SOCIETY WIND, INCREASED SELF-CONFIDENCE

• ESTABLISHMENT OF COMMON EUROPEAN RULES RESULTING IN INCREASED TRANSPARENCY, STABILITY AND PREDICTABILITY OF THE ECONOMY, WHICH IS PARTICULARLY IMPORTANT FOR OPERATING OF ECONOMIC SUBJECTS

• BECOMING A PART OF EUROPEAN AREA OF STABILITY SECURITY AND PROSPERITY BASED ON POSITIVE INTERNAL SOLUTION SEEKING INSTITUTIONAL FRAMEWORK

PRE-ACCESSION PROCESS – FINANCIAL ASPECTSPRE-ACCESSION PROCESS – FINANCIAL ASPECTS• Between 1992-20031992-2003, Slovenia has received assistence from three pre-accession instruments:

– PHARE PHARE – 339,1 MEUR339,1 MEUR– ISPAISPA – 84,5 MEUR84,5 MEUR and – SAPARDSAPARD – 25,725,7 MEURMEUR

TOTAL: 449,3 MEURTOTAL: 449,3 MEUR

0

20

40

60

80

100

120

1992–1996 1997 1998 1999 2000 2001 2002 2003

PHARE ISPA SAPARD

EVOLUTION OF PHARE – ROADMAP FOR CARDS/ISPA

PERIOD

1989 – 1997CENTRALISED

• SUPPORT TO ECONOMIC TRANSITION OF THE CENTRAL EUROPEAN COUNTRIES

• DEMAND DRIVEN

1997 – 2002DECENTRALISED

• SUPPORT THE PROCESS OF THE ACCESSION

• ACCESSION DRIVEN (ONLY PRIORITIES FOR ACCESSION)

2002 – ACCESSIONDECENTRALISED + EXTENDED DECENTRALISED

• SUPPORT FOR TRANSITION TO STRUCTURAL FUNDS AND COHESION FUND

• DEVELOPING MANAGEMENT FOR THE COMMUNITY ASSISTANCE FOR MEMBER STATES.

MANAGEMENT REFORM FOR PHARE 1997 REFORM (ACCESSION DRIVEN)

Before After

Management model

Development Aid

Partnership

Strategy Demand driven Accession Driven

Implementation Centralised Decentralised

Monitoring Centralised Joint

Evaluation Centralised Centralised

1997

DIVISION OF RESPONSIBILITIES UNDER DIFFERENT IMPLEMENTATION

SYSTEMS

Type of Implementatio

n SystemCentralised

Deconcentrat-ed

Decentralised(DIS)

Extended decentralise

d(EDIS)

Phase

Programming(ex-ante

evaluation)

EC, NAC, line

ministries

EC, EC Delegations, NAC, (EAR), Ministries

EC, EC Delegations,

NAC,line Ministries

EC, NAC, line Line

ministreies

Implementation EC, line

ministries

Line ministriesDEK, EAR

Line inistries, CFCU

Line ministries,

CFCU

Monitoring EC EC Delegations (EAR)

Ministries, NAC, EC Delegation

Line ministries,

NAC

Interim evaluation

EC EC Delegations (EAR)

EC Delegations NAC

Ex-post evaluation

EC EC Delegations EC EC

PROGRAMMING

• Line ministries

• National Aid Co-ordinator (NAC)

• EC Delegation

• Commission Services HQ

IMPLEMENTATION

• National Fund = MF/NAO (Paying)

• Implementing Authority= CFCU/PAO (Tendering, Contracting)

• Implementing Agencies at the Ministries (Tendering, Contracting)

• Final beneficiaries: ministries/institutions/local communities (Contracting Authority)

• EC Delegation (ex-ante control) & NAC (Observers)

• LINE MINISTRIES/CONTRACTING AUTHORITIES/AT PROGRAMME LEVEL;

• STEERING COMMITTEES/AT PROJECT LEVEL;

• SECTORAL MONITORING SUB-COMMITTEES (2 PER YEAR);

• MONITORING COMMITTEES ISPA, SAPARD (2 PER YEAR);

• JOINT MONITORING COMMITTEE (1 PER YEAR) .

* Under centralised implementation system monitoring was responsibility of the european commission.

MONITORING

EVALUATION

1. Centralised Implementation System (CIS)a) Ex-ante: ECb)Mid-term: ECc) Ex-post: EC

2. Decentralised Implementation System (DIS):a) Ex-ante: EC Delegationb)Mid-term: EC (OMAS, EMS etc.)c) Ex-post: EC

3. Extended Decentralised Implementation System (EDIS):a) Ex-ante: CFCU & Line ministriesb)Mid-term: NACc) Ex-post: EC

* SAPARD is implemented exclusively under EDIS.

NATIONAL AID COORDINATOR - GOEA

• Overall responsibility for planning, programming, implementing and monitoring of PHARE programme.

• Responsible also for co-ordination of activities, related to accession activities.

• Minister, responsible for European Affairs in Slovenia was nominated as NAC.

• Sector for technical assistance have implemented co-ordinatio tasks on his behalf.

LESSONS LEARNED AT GOEA

• PLANNING OF TIME SCHEDULE FOR THE WHOLE PROJECT CYCLE.• ROLES AND PROCEDURES AT EACH STAGE MUST BE CLEAR.• ADDRESSING OF PROBLEMS IN A TIMELY MANNER (EXPIRY DATES).• ABSORPTION CAPACITY OF BENEFICIARY SHOULD BE CHECKED BEFORE

APPROVING NEW PROJECTS/ LESSON LEARNED FROM PREVIOUS PROGRAMME YEAR.

• FOR PROJECTS WITH SEVERAL BENEFICIARIES, STEERING COMMITTEES ARE NECESSARY.

• THE PROGRAMMING CYCLE MUST FIT WITH THE NATIONAL BUDGETARY CYCLE (GOOD PLANNING OF NATIONAL CO-FINANCING FUNDS – MULTI-ANNUAL APPROACH).

• ASSURANCE OF ADEQUATE LOCAL STAFF SUPPORT (TWINNING).• CO-ORDINATION WITH OTHER DONORS.• INCLUSION OF EC DELEGATION STAFF IN ALL PHASES OF PROJECT

MANAGEMENT CYCLE TO AVOID PROBLEMS AT LATER STAGE (MONITORING, EVALUATION).

• EXCEPTIONS ARE ALWAYS POSSIBLE – NEGOTIATE WITH EC AND DELEGATION FOR DEROGATIONS ON CASE-BY CASE BASIS.

40,0

60,0

80,0

100,0

120,0

140,0

ECONOMIC COHESION OF EU-15 IN 1980ECONOMIC COHESION OF EU-15 IN 1980

OECDOECD, 200, 20044

40.0

60.0

80.0

100.0

120.0

140.0

ECONOMIC COHESION OF EU-15 IN 2002ECONOMIC COHESION OF EU-15 IN 2002

OECDOECD, 200, 20044

Time distances in years between EU15 average

and Slovenia for selected indicators for 2003 (+

time lead, - time lag for the EU15)

18 4 0 26 14

-2

6

-15

-10

-5

0

5

10

15

20

25

30

GDP per capita EmploymentRate

Annual HoursWorked

GDP peremployed

R&D per capita Life expectancyfemales

Infant survivalrate

S-t

ime

-dis

tan

ce

in

ye

ars

economic indicators soc ial indicators

(2002)

Time distances in years between EU15 average and Slovenia for

selected indicators for 2003 (+ time lead, - time lag for the EU15)

18 4 0 26 14

-2

6

-15

-10

-5

0

5

10

15

20

25

30

GDP per capita EmploymentRate

Annual HoursWorked

GDP peremployed

R&D per capita Lifeexpectancy

females

Infant survivalrate

S-t

ime

-dis

tan

ce

in y

ea

rs

economic indicators soc ial indicators

(2002)

COMPARISON OF TIME DISTANCES: USA-EU15 AND EU15-SLO

Year in which Slovenia catches up the EU15 average under

various assumptions

2000

2010

2020

2030

2040

2050

2060

2070

2080

2090

2100

2110

2120

2130

0,5% 1% 1,5% 2% 2,5% 3% 3,5% 4% 4,5% 5%

Required positive growth rate of Slovenia compared to the EU15 average

Ye

ar

of

ca

tch

up

GDP per capita

Employment Rate

GDP per employed

GDP per hour

R&D per capita

IS SLOVENIAN ECONOMIC COHESION IMPROVED?IS SLOVENIAN ECONOMIC COHESION IMPROVED?OLD RESULTS – NEW MESSAGES?OLD RESULTS – NEW MESSAGES?

Current development model

Vision of the new social development model

regulation and bureaucratisation of markets

deregulation and liberalisation of markets

restrictive business enviroment promoting the creation and growth of enterprises

relatively closed financial markets open financial markets and competition

insufficient flexibility of the labour market

a more flexible labour market

collective social security systems individual needs and responsibility

corporatism of large social partners open, broad-based partner co-operation

bureaucratic and hierarchical public administration

decentralisation and public-private partnerships

focus on macroeconomic and social balances

focus on sustainable development based on structural reforms and a more

dynamic society

SHARE OF HI-TECH PRODUCTS IN EXPORT (1999)SHARE OF HI-TECH PRODUCTS IN EXPORT (1999)

IRL

USANLD

GBR

J PN

HUNFRA

FIN

SWE CHE

DNKISR

DEU NORISL

CAN

AUT

RUS

EST

LTU

KAZHRV

CZE

GRC

ESPITA

BEL

KGZMDA

ARMALB

MKDBLR

ROM

LVABGR TUR

POL

SVK

SVN

PRTCYP

0

10

20

30

40

50

0 5000 10000 15000 20000 25000 30000 35000

GDPpc

EX

PO

RT

(%

)

1990/91 2003/04

University of Ljubljana: 22.824 55.993University of Maribor: 10.741 24.020University of Primorska: - 4.373Colleges: - 2.545Upper-secondary schoole: - 12.061SUMMARY: 33.565 98.992

GROWHT OF STUDENT POPULATIONGROWHT OF STUDENT POPULATION