Government of Republic of Montenegro

Ministry of International Economic Relations and European Integration

The Foundation Open Society Institute

Representative Office Montenegro

Programme Progress Report

February - April 2004

Podgorica, April 30th 2004

SUMMARY PROGRAMME INFORMATION

  • Title: Capacity Development Programme for the State Administration of Montenegro
  • Thematic Area: Democratic Governance
  • Executing Agency: UNDP Serbia and Montenegro
  • Location: Montenegro/Serbia and Montenegro
  • Duration: 18 months, starting September 8th 2003
  • Total Budget: 550,000 US$
  • Budget by Source of Funding: 150,000 US$ UNDP

200,000 US$ FOSI ROM

200,000 US$ Government of Montenegro

Objectives of the programme:

This programme of institutional capacity-building is designed to contribute to successful achievement by the Government of Montenegro of its own strategic aims to develop governance and public administration in Montenegro to levels of efficiency and performance consistent with general European standards, and principles of democracy and the rule of law, with the ultimate purpose of improving the quality of life of the citizens of Montenegro.In particular, the programme will aim to strengthen the government's overall capacity to make and administer policy in accordance with its own strategic priorities, to participate in the process of stabilisation and association with the European Union, and to play a full part in the integration of Serbia and Montenegro in the wider international community.

PART A – PROGRAMME DESCRIPTION

A.1 Development problems to be addressed

The programme recognises that the development of institutional capacity in the Republic of Montenegro has to be at the same time a process of institutional reform. The special requirements of capacity building in such a case, therefore, include crucial aspects of institutional change:

  • Existing structures, rules, procedures, patterns of conduct, competences and even attitudes, largely determined by the historical experience of a one-party state deferring to a fixed ideology, must be adapted to new influences, brought up-to-date with innovations and improvements in public management; and generally re-designed to fit a much more pluralistic relationship between state and society, above all one in which the state is conceived as service to the citizen rather than the reverse.
  • Secondly, the structures and functions of the state in Montenegro have to be adjusted following a prolonged period of constitutional and political uncertainty, affecting the very form of the state itself.
  • A period of involuntary isolation has been replaced by a desire for constructive international engagement, and active participation in the process of European integration, which makes its own demands for re-adjustment of state institutions.

The development priority most likely to meet these needs over the long term is establishment of a professional civil service, based on a comprehensive legal framework; and protected from undue political interference. In the meantime the Government will need temporary support to maintain the institutional capacity to undertake reforms consistent with its overall strategic objectives.

A.2 National strategy

The programme is intended to support the Government in implementation of its three inter-related strategic priorities of economic reform, educational reform and reform of public administration. The programme will, therefore, include capacity-building measures designed to assist the government in performance of its commitments in relation to the Poverty Reduction Strategy.

A.3 Contribution to MDGs/Stability Pact

In its special association with the Government of Serbia and in cooperation with the international community at large, the Government of Montenegro is working towards the eight Millennium Development Goals, which are designed to implement the principles and objectives enunciated in the United Nations Millennium Declaration, adopted by resolution of the General Assembly of the United Nations. The CDP supports the Government in that commitment by strengthening its capacity in key areas of policy making and public management.

At the same time the government is committed to develop its institutions in accordance with benchmarks of best European practice, and gradually build the capacity of its public administration to a level appropriate for its eventual position within the European Union.

A.4 Description of planned activities

During the initial pilot phase of eighteen months, the programme will work with three selected ministries of the Government of Montenegro, in phased implementation of a series of capacity-building measures. Typical programme outputs will include: (a) technical support to establish, equip and develop change and project management units within a ministry or group of ministries; (b) additional expertise required to carry out assessments of capacity and functional reviews; (c) courses of coaching and training for ministry staff geared to new functions and methodologies; (d) direct provision of appropriate national and international expertise for policy advice. Outputs will be delivered, from existing funds, when available, on the basis of a detailed work plan that will have emerged from a series of prior discussions between the CDP's managers and technical advisers, and the ministry or ministries as beneficiaries.

Assistance from the CDP normally proceeds by helping the government counterpart to make an assessment of the existing gap between needs and capacity, and of the best available means of filling that gap. The assessment should ideally use an approved methodology of functional analysis in relation to the overall strategic aims of the government. Expert advice is also provided to assist the beneficiary to make an inventory of available existing resources, and to select appropriate technical assistance, in accordance with international benchmarks and best practice.

Additional beneficiaries may be added in the course of the pilot phase in accordance with the programme criteria and objectives, and depending on availability of funds, by decision of the Supervisory Board of the programme.

A.5 Programme partners

Capacity Development Programme is a joint initiative of UNDP, Government of Montenegro and Foundation Open Society Institute – Representative Office Montenegro. The pilot programme will be undertaken for an initial period of 18 months, starting September 2003. Three ministries have been selected as initial partners in government: Ministry of International Economic Relations and European Integration (MIEREI), Ministry of Education and Science, and Ministry of Justice.

The ultimate vision is that of a fully-fledged programme of capacity assessment and development with financial and technical cooperation from a wide range of organisations.

The programme will be considered complete, as soon as the Government of Montenegro has sufficiently built its own capacity, and has progressed far enough with reform, to assume responsibility itself for continuation of a programme with similar objectives and using similar benchmarks.

European Agency for Reconstruction (EAR) and World Bank have been identified as key future partners, and informal discussions with local representatives of both organisations are now an integral part of programme management and development.

PART B – PROGRESS TOWARDS THE ACHIEVEMENT OF RESULTS

(February 1st - May 1st 2004)

General orientation of the programme

The programme is observing three key principles in pursuit of its objectives:

Sustainability - a high priority is placed on government 'ownership' which we take to imply a willingness and ability to assume responsibility, on the part of the beneficiaries themselves. The programme management have found that these qualities have to be carefully cultivated in the ministries concerned, especially in the early stages; it is necessary to be gradual, thorough and understanding in the performance of activities, and adopt a 'hands-on' approach, with active and regular consultation of ministry counterparts, and team-building among the personnel associated with the programme.

Partnership - the programme is being managed as the government's own instrument of reform, but a special effort is also being made to engage different donors and international agencies, and not only those making a financial contribution to the programme itself. A strong working partnership has already been established with World Bank, especially in relation to technical assistance for the SAC (see below). The EAR has also been approached with a proposal for cooperation in the sphere of reform of state administration, where the CDP might play a similar role in provision of technical assistance for EAR, as it now does for the World Bank.

Dynamism - linked to sustainability, this principle means that assistance given through the CDP is closely related to change, usually intended to contribute directly to building capacity for change management. This in turn demands improved communication both within government itself and between government and civil society. The CDP has emphasized improved flow of information in its activities so far, especially where consultation with a wider public is concerned. Both introduction of new information technology, and knowledge transfer through training, have become key elements of a distinctive CDP approach.

In accordance with these principles, the CDP has developed an approach to

Capacity - building in the state administration both on a "vertical" and on a "horizontal" plane. The first three main activities mentioned below belong on the vertical plane, and the remainder on the horizontal plane.

B.1 Progress towards the achievement of outputs:

Ministry of International Economic Relations and European Integration

This relatively new Ministry has a vital contribution to make an economic recovery of Montenegro, in view of its responsibilities for international trade, for European integration, and for coordination of foreign assistance and promotion of inward investment. During the period of this report, the Ministry has undergone a complete overhaul, with appointment of new personnel, and adoption of a new organigram and systematisation. These and other changes are directly related to outputs planned through the work-plan prepared by CDP, in particular:

  • The Minister appointed a Working Group on re-organisation and staffing, which made a functional review with the help of an expert international consultant and produced an action plan for implementation of measures in relation to the new systematisation and for upgrading of IT in the ministry.
  • An acting head of the department for European Integration has been appointed, who, with assistance from international consultants, has reviewed the organisation of this department, and drawn up action plans for a government strategy for European Integration, for a training programme, and for improved public information on European integration.
  • On proposals from the Ministry the Government has established basic framework of organs for the coordination and promotion of European affairs within the state administration as a whole, and in government's relations with the public, including a Council for European Integration, an inter-ministerial commission, and individual officials to be appointed by their respective ministers as "focal points'" within each ministry.
  • The Minister has appointed a head of unit for coordination of foreign assistance
  • The Minister has appointed an acting head of the department for international trade.
  • The Minister has proposed to the Government of Macedonia adoption of a Memorandum of Understanding for cooperation in relation to EI.

CDP has provided the following main inputs:

  • An international expert consultant, who assisted with the functional review, and delivered recommendations on training for European Integration and organisation of the Ministry,
  • An international expert consultant, who is currently head of the sector for European integration in the government office of Macedonia, has supplied substantial information relating to the Macedonian government's experience in developing a capacity to deal with European integration, and provide direct consultancy on issues such as formulation of strategy for an SAP, public information on EI, and training.
  • The same consultant has proved substantial guidance and advice to the new head of the unit for donor coordination.
  • CDP has provided national consultants to serve as probationary heads of, respectively, the department of European integration and the department of international trade.
  • The SPA has provided substantive advice on request on issues of European integration, including material directly supplied to the Prime Minister’s adviser on European integration.
  • The CDP Senior Policy Advisor and Programme Management Unit have assisted the Department for European Integration to formulate a plan for a special one-week training programme for Montenegrin civil servants to be provided by the College of Europe out of funds made available to Serbia and Montenegro by the EAR, and have mediated with the College of Europe, at the latter's request, for delivery of this service.

CDP will have a vital role in relation to the following future developments:

  • Assisting the Ministry to formulate a long-term training programme in European integration, and to organise the special College of Europe training programme mentioned above
  • Establishing an effective department for coordination and management of foreign assistance, including data collection and storage.
  • Providing additional bilateral contacts with neighbouring governments in the region (Croatia, Slovenia)
  • Appointment of a probationary secretary for the Ministry with related training.

Ministry of Education and Science

The two expert consultants appointed to strengthen the Minister's Cabinet have continued lead innovations in the Ministry's methods of working:

The ExpertConsultant for Information and Communication Technologyhasassisted the Minister with the following:

  • Development of Ministry’s Central Data Base – CDB includes relevant information about Ministry agencies and schools (staffing, number of sections/classes, number of children attending etc). The action plan for data gathering has been accepted by the Bureau for Education Services, which has take over the competencies over data base managing.
  • Finalizing an action plan for Montenegrin educational information system (MEIS) implementation with appropriate budget allocations.
  • Finalizing tender documents for implementation of computer network system in 30 schools in Montenegro. Tender has been successfully completed and the contract was awarded to Faculty of Mathematics and Sciences.
  • Develop curricula and manage ICT training course for ministry staff. CDP has been instrumental in organizing 3 months training course (beginner and intermediate) on ICT for 40 ministry staff.

The Expert Consultant for Public Information and External Relationsis responsible for the substantive content of the public information programme, and at the same time has assisted the Minister to establish a permanent department for public information and communication, as part of the management of structural adaptation and change. In addition, the Consultant has assisted with the following:

  • Establish procedures for managing the contacts with electronic and printed media, as well as providing advises to senior ministry staff on the content and form of information disseminated to public.
  • Develop Ministry’s press clipping book. Following appropriate training Minister has appointed a permanent staff to manage the process and assist senior officials with browsing the clippings.
  • Provide assistance to Minister’s advisors on how to compose speeches, and address questions that are distributed through Government PR Bureau, other ministries or Prime Minister Office.
  • Assist with selection and recruiting of staff for newly established department for public information and communication.

Further actions that are being considered for inclusion in the work-plan for this Ministry are (i) assistance with drafting of laws, especially in the sphere of higher education and as part of the process of harmonisation with EU law, and (ii) a functional review of public agencies operating in the sector of education and science as a whole (iii) further development of the Ministry's capacity for quality assurance.

Ministry of Justice

The CDP is providing an Expert Consultant for Local Self Government and Public Administrationtogether with a Research Assistant, with the primary task of improving consultative processes in the sphere of reform of public administration and local self-government. A primary aim is to improve implementation of new reforming legislation by ensuring that procedures are in place to ensure adequate consultation of those who will be directly affected by the new legislation, and responsible for its application in practice. This initiative is seen as a preliminary step towards institution of a fully operational system of legislative impact analysis, including transfer of knowledge and skills in the various techniques used for this purpose (see below). The expert appointee, on a part-time basis, is a senior official, with direct experience of implementation of reforms, and of harmonisation with European standards, from the Slovenian Ministry of the Interior.

According to the approved Action plan, during the first three months the Consultant will assist the Minister with the following:

  • Provide substantial advise (including Council of Europe and EU directives/standards) on drafting of laws: on Capital, Territorial organization, and law on Residence
  • Assistance with developing pilot project for the organization of one municipality in the context of implementation of law on local self government
  • Assist in developing and action plan for ministry employees training

Despite a tender for a parallel position of expert consultant for judiciary reform, and holding of interviews with a number of candidates, it has not yet been possible to fill this post.

Legislative impact assessment

In cooperation with the World Bank an international expert consultant has been employed to prepare a methodology for introduction of systematic assessment of the fiscal impact of legislation in the Government of Montenegro. When the methodology is adopted, the CDP will provide additional assistance for training and monitoring required to ensure implementation of the methodology. This project will have Ministry of Finance as its main counterpart.

The project to introduce FIA is seen as preliminary to the introduction of legislative impact assessment over a wider range of economic, social and environmental impacts.

Development of Capacity for Human Resource Management

A project has been designed for a pilot introduction of performance-related appraisal in the three ministries currently benefiting from the CDP. The Ministry of Justice as the main counterpart will lead this project.

In addition, it has been proposed that the CDP organise a conference to increase awareness and understanding in the government regarding the role and functions of state secretaries.

B.2 Constraints Encountered and Future Challenges:

  • Overall management capacity of the Programme Management Unit is becoming stretched with rapid expansion of activities. Beneficiary ministries should take more responsibility for administration of projects.
  • There is an evident shortage of local experts in key areas. However, this can be partly compensated by use of experts in neighbouring, Balkan countries that should become a major contribution of CDP, including the facilitation of short training course and internships for Montenegrin officials in those countries.
  • Insufficient consultation between donors especially regarding future plans

PART C – FINANCIAL REPORT