Strong reforms underway in Serbia, still numerous Strong reforms underway in Serbia, still numerous challenges aheadchallenges ahead

Importance of setting priorities within national Importance of setting priorities within national

agendaagenda

Joint efforts of all relevant stakeholders and Joint efforts of all relevant stakeholders and

increased responsibilities in implementationincreased responsibilities in implementation

Main goals and commitments of the Government of Serbia:Main goals and commitments of the Government of Serbia:

improved coordination and planning of development improved coordination and planning of development assistanceassistance improved aid effectiveness and efficiencyimproved aid effectiveness and efficiency improved coordination of internal and external funds improved coordination of internal and external funds planningplanning alignment of development assistance with national alignment of development assistance with national prioritiespriorities setting rules to make these tasks regular an repetitivesetting rules to make these tasks regular an repetitive

NA - a three-year, multi/inter sectoral, programmatic document, drafted in wide NA - a three-year, multi/inter sectoral, programmatic document, drafted in wide consultations of relevant stakeholders and adopted by GoS in January 2007, to consultations of relevant stakeholders and adopted by GoS in January 2007, to be revised on a one year roll-on basis, providing for:be revised on a one year roll-on basis, providing for:

the mid-term policy objectives and priority programs within sectorsthe mid-term policy objectives and priority programs within sectors inter-sectoral priorities for international assistanceinter-sectoral priorities for international assistance assessment of needed external support.assessment of needed external support.

based on:based on: the Poverty Reduction Strategythe Poverty Reduction Strategy EU agenda (European Partnership priorities, National EU accession EU agenda (European Partnership priorities, National EU accession

strategy)strategy) Sectoral strategies and Action PlansSectoral strategies and Action Plans Memorandum on the Budget and Economic and Fiscal Policies for 2007 with Memorandum on the Budget and Economic and Fiscal Policies for 2007 with

projections for 2008 and 2009projections for 2008 and 2009 GOPs- Annual Operational Action Plans for pilot ministries included in the GOPs- Annual Operational Action Plans for pilot ministries included in the

processprocess

Joint project identificationby LM, MIERand donor communityfor 2008 (n)

EU support IPA 2008

Needs Assessment Document(07-09)

Needs Assessment Document(07-09)

Preparing draft Budget Memo (incl NIP)

Preparing draft Budget Memo (incl NIP)

Programming of EU assistance including preparation of FICHE, negotiation, intern-agency consultations and signing of FA

Final BudgetMemorandumand Budget

Prepare final GOP1 (08-10) for LM

GoS Work Program

Budget ExecutionBudget Execution

GoS Annual Report

MFIN final accountsMFIN final accounts

Implementation – Management by performance using GOPsImplementation – Management by performance using GOPs

LM preparingBudget requestLM preparingBudget request

MIPD (n to n+2) drafting, Consultations and approval

Preparing draft GOP1 (08-10) in LM (EI, PRS, PAR and sector strategy)

Detail design of projects / plan for implementation

Implementation of projects/programme (36 months)

Other international assistance

Programming including detail design and plan for Implementation

Implementation of projects/programme

Update Needs Assessment document (n to n+2)

Year 2008 (n)Year 2007 (n-1)December January

Year 2009 (n+1)December JanuaryDecember January

Monitoring and Evaluation

Individual AssistanceStrategy / Action Plans

LM final accounts

The chart is based on the assumption of the 3 year rolling process where for each cycle one additional year is included. Hence to get fulloverview of activities the specific calendar year it is necessary to include activities from the previous two years.

Final LM GOP1 (07-09)Final LM GOP1 (07-09)

1 GOP (Godisnji operativni plan / Annual Operational Plan): Three year rolling medium term planning document developed by line ministries (6 pilot ministries) comprising the detailed budgeted operational plan for the first year. GOP planning methodology is designed to be used as basis for development of Government’s annual Work Program, budgeting according to the programmatic classification, programming of international assistance, monitoring and reporting.

Final BudgetMemorandumand Budget

Final BudgetMemorandumand Budget

  

Assessed financial needs for international support (disbursement)- in mil eurosAssessed financial needs for international support (disbursement)- in mil euros

  2007. 2008. 2009. 2007-2009.

Grants 466466 428428 382382 1.2761.276

Concessional loans 300300 200200 200200 700700

Total 766766 628628 582582 1 9761 976

2007.2007. 2008.2008. 2009.2009. 2007-2009.2007-2009.

Projected needed grant Projected needed grant disbursementdisbursement

466466 428428 382382 1.2761.276

Estimated disbursement of Estimated disbursement of grants approved by 2006. grants approved by 2006.

390390 279279 204204 873873

DifferenceDifference 7676 149149 178178 403403

Defined Intersectoral priorities for International Assistance:Defined Intersectoral priorities for International Assistance:

Employment generationEmployment generation Institutional Capacity BuildingInstitutional Capacity Building Infrastructure Development Infrastructure Development Environment ProtectionEnvironment Protection Rural DevelopmentRural Development

Based on the following criteria:Based on the following criteria: Priority level according to the existing strategic documentsPriority level according to the existing strategic documents, , Achieved level of reforms and strategic goals in the areaAchieved level of reforms and strategic goals in the area, , Importance of international technical assistance and expertise for Importance of international technical assistance and expertise for

implementation of planned activities andimplementation of planned activities and Need for securing additional financial resources for Need for securing additional financial resources for

implementation implementation

Employment generationEmployment generation

Linking the economic development and market forecasts with education and Linking the economic development and market forecasts with education and labour market (qualitative labour supply to meet labour demand)labour market (qualitative labour supply to meet labour demand)

Pilot sector in the sector support initiativePilot sector in the sector support initiative

Institutional capacity buildingInstitutional capacity building

Strengthening and development of institutions on the central and local levelsStrengthening and development of institutions on the central and local levels

Harmonization of legislation with the Acquis and implementationHarmonization of legislation with the Acquis and implementation

Basis: Basis: Action Plan for strengthening institutional capability for taking over Action Plan for strengthening institutional capability for taking over the obligations deriving from the European integration process and the the obligations deriving from the European integration process and the

Strategy for Public Administration ReformStrategy for Public Administration Reform

Infrastructure developmentInfrastructure development integration into the regional and international networksintegration into the regional and international networks local infrastructure developmentlocal infrastructure development

Environment protectionEnvironment protection institution building and legislation developmentinstitution building and legislation development reduction of pollution (including water, air and land) from all reduction of pollution (including water, air and land) from all

sources of pollutionsources of pollution improvement of waste management, particularly hazardous improvement of waste management, particularly hazardous

wastewaste

Rural developmentRural development economic development and diversification, competitivenesseconomic development and diversification, competitiveness agriculture promotionagriculture promotion improvement of standard of living improvement of standard of living

Overview of the situation, priorities and needs per sectorOverview of the situation, priorities and needs per sector

Principles:Principles:

Unique strategy platform for external and internal Unique strategy platform for external and internal resources, including NIP financingresources, including NIP financing

Priority projects/ activities based on the priority midterm Priority projects/ activities based on the priority midterm goals defined in the strategic documentsgoals defined in the strategic documents

Main achievements and implemented projects includedMain achievements and implemented projects included

Further steps:Further steps:

Programming of international assistance based on the NA Programming of international assistance based on the NA documentdocument

Revision and updating on yearly basisRevision and updating on yearly basis Initiation overall strategic planning, sharing lessons learnedInitiation overall strategic planning, sharing lessons learned

Planned upgrading of the document:Planned upgrading of the document:

Better inclusion of the local level needsBetter inclusion of the local level needs Inclusion of institutions other than line ministriesInclusion of institutions other than line ministries Monitoring of the achievement in mobilizing national and Monitoring of the achievement in mobilizing national and

external resourcesexternal resources Impact assessment of external assistance? All or pilot sectorImpact assessment of external assistance? All or pilot sector