Road Map to Sustainable Local Government

8/8/2019 Road Map to Sustainable Local Government

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ROADMAPTOSUSTAINABLELOCAL

GOVERNANCEINKOSOVO

ConsolidatedActionProgramme

Pristina,26May2008

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Contents

SECTIONI:

ProgrammeOverview 3

AnintegratedKosovoprogrammeforsustainablelocalgovernance 3

(a)

Kosovos

commitment

to

decentralization

and

local

self

government

3

(b) Theroadmaptosustainablelocalgovernance 4TheconsolidatedActionProgram 5

(a) Objective 5(b) Keyprogrammeareas 5

ImplementationArrangements 6

SECTIONII:

Detailedprogrammeprofiles 8

_____________________________________________________________________

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SECTIONIPROGRAMMEOVERVIEW

AnintegratedprogrammeforsustainablelocalgovernanceinKosovo

(a)

Kosovos

commitment

to

decentralization

and

local

self

governance

Over the last six years, Kosovo has become increasingly committed to a strongly

decentralizedframeworkofgovernanceandservicedelivery,culminating intherecent

Law on Local Self Government which transfers to municipalities sole or shared

responsibilityoveraverybroadrangeofservicesectors includingnotonlythemore

common localservicessuchasstreetpaving,potablewater,andsanitationbutalso

many sectors that are normally considered among the more difficult services to

decentralizeincludinghealthcare,education,andsocialservices.Thebigquestionand

challengefacingKosovonow,after legislatingthisbolddecentralizationframework, is:

arethelocalandnationalinstitutionsreadytoassumethisnewmandate?Thebroad

consensusis

that,

no,

they

are

not

ready,

and

that

only

an

aggressive,

comprehensive

technical assistance and institution building effortwill begin to fill the gap between

mandatedresponsibilitiesonpaperandeffective localdeliveryontheground.The

currentActionProgrammeproposalisanattempttomoveinthisdirection.

TobetterunderstandthenatureofthechallengecurrentlyfacingtheGovernment,itis

important to remember thatKosovosdecentralizationprocess is grounded in a very

unusual set of geopolitical circumstances. Unlike most other countries, in Kosovo

decentralizationdidnotariseasagrassrootsdemandforempowermentfromamajority

of localcommunities. Itwasproposed,topdown,bythe internationalcommunityasa

vehiclefor

reengaging

the

minority

ethnic

Serbian

communities

into

the

political

process.1This strategicgeopoliticalpurpose tookon increasing importanceasKosovo

movedintodiscussionsonaStatusSettlement,culminatingintheAhtisaariProposal2in

early 2007 which, with the latter purpose in mind, proposed an aggressive local

empowermentagendaaimedmoreatplacatinginternationalgeopoliticaldemandsthan

atensuringeffectiveandsustainablelocalservicedeliveryontheground.

This shortcoming has been further exacerbated by an important stipulation in the

AhtisaariProposal indicatingthatwithin120daysofresolutionofKosovosstatus,not

onlymust a constitutionbedrafted and adopted,but also four critical lawson local

governancemustbedraftedandapprovedtheLawsonLocalSelfGovernment,Local

Boundaries,Local

Elections

and

Local

Finance.

The

problem

is

that

the

clear

urgency

and

priorityattachedtothepreparationofthese lawshasabsorbedmuchofthetimeand

technical capacity available in Government particularly the Ministry of Local

1Specifically,in2002,whenformerSRSGsuggestedforthefirsttimethestrategicimportanceof

decentralizationasavehicleforreintegrationofSerbiancommunities.2TheComprehensiveProposalfortheKosovoStatusSettlement,presentedtotheUNSecurityCouncilon

26March2007.Availableatwww.unosek.org

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Government Administration (MLGA) and Ministry of Finance and Economy (MFE),

leavingrelativelyunattendedthe followup requirements forGovernmentactionafter

the120TransitionPeriodrequirementsthat, infact,areequallycriticalasthe initial

legislationtoensurefeasibilityofthenewdecentralizedframeworkforservicedelivery.

(b)TheRoadmapexerciselookingbeyondthe120dayTransitionPeriodConsciousof these shortcomings, in the summerof 2007 concernsbegan to emerge

amongmanynationalandinternationalactorsthatsystematicattentionalsoneededto

begiventothemediumandlongtermneedsofthedecentralizationprocessafterthe

120 day Transition Period. In August, under coordination of theOffice of the Prime

Minister, an integrated Kosovoled programming initiative, the Roadmap to

Decentralization,wasagreedupon. Itspurposewas toprepareanationalprogramme

forthe implementationofthenewdecentralizationframeworkput intomotionbythe

Ahtisaari Proposal, aiming to createmore effective and sustainable systems of local

governanceandservicedeliveryinthecountry.

With coordination from theOfficeof the PrimeMinister, theRoadmap exercisewas

organized around an extensively participatory and consultative process involving not

onlytheMinistriesofLocalGovernmentandAdministration,andEconomyandFinance,

butalsomanyofthesectoral lineministries,theKosovoAssociationofMunicipalities,

and most of the international donor agencies who work actively in the sector.3

OrganizedaroundacentralSteeringCommittee,andseveralthematicworkinggroups,

this partnership of stakeholders worked continuously from SeptemberDecember,

preparing issuepapers andpreliminary recommendations for government action ina

totalof

20

thematic

areas.

The

results

of

this

joint

exercise

were

consolidated

into

a

PreliminaryProgrammingMatrix fortheRoadmapwhichwaspresentedfordiscussion

at a Stakeholder Workshop held in Gjakova on December 67, aimed at assessing

progressintheRoadmapandmakingrecommendationsonthefollowingwrapupphase

ofworkfortheexercise.

The largenumberofnationaland internationalparticipantsattheGjakovaWorkshop4

underscored the widespread, multiinstitutional interest that exists regarding the

decentralizationprocessinKosovo.Therewasconsensusatthemeeting,amongallthe

stakeholders, that the programming exercise had been successful and that it was

necessary tomoveaheadwith its finalconsolidation;along these lines, theworkshop

producedadetailedsetofrecommendationsfortheconcludingphaseofwork.Thiswas

reinforced by a memo sent by the former Prime Minister, after the workshop,

3Morespecifically,thefollowinglineministriesparticipatedactively: MinistryofHealth,Ministryof

EnvironmentandSpatialPlanning;MinistryofLaborandSocialWelfare,andMinistryofInternalAffairs.

Internationally,theRoadmapexercisecountedontheactivetechnicalparticipationof: USAID(EMI),

UNDP,EAR,SDC,DFID,IMF,VNGandtheWorldBank.4Eightgovernmentministriesandnineinternationaldonoragencieswererepresentedatthemeeting.

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congratulatingtheRoadmappartnersforthepreliminaryachievementsoftheexercise

and pledging his support to encourage continuation of the effort with the new

Government.

Onthebasisofthismandate,sinceDecember,acorecentralteamproceededwiththe

finalstage

of

work

in

the

Roadmap

exercise,

aimed

at

producing

afinal

proposal

and

document forjoint Government/Donor action, the Consolidated Action Programme.

Presented here in a draft version for final consultation with all the stakeholders

including,mostespecially, themunicipalgovernments theConsolidatedProgramme

was formulated on the basis of the ProgrammingMatrix and thematic Issue Papers

prepared previously by the Roadmap partners, updated to reflect conclusions and

feedbackfromtheGjakovaworkshop.

Inaddition,theimportantprogressmadeduringthisinterimperiodinfinalizingtheLaw

onLocalSelfGovernmentandLawonLocalFinancehashelpedsignificantlyinclarifying

the needs and priorities that governmentwill face in the coming two to three year

periodmakingthenewdecentralisedframeworkofgovernanceeffectiveandfunctional.

Theseneedsfigureprominently inthefinalmixofrecommendationsproposedforthe

Programme, including inparticular,theneed (i)tooperationalisethenewgovernance

structurewithclearer,morefunctionaldefinitionsofnewadministrativeresponsibilities

and accompanying procedures; (ii) to put in place a more effective central support

systemforthetrainingandcapacitybuildingofmunicipalgovernmentstaff(aswellas

thatofcentralgovernmentministries);(iii)toput inplaceaframeworkmechanism,at

thenationallevel,tosupportandspeeduptheprocessofcreationofnewmunicipalities

mandatedbytheAhtisaariProposal;and (iv)strengthencoordinationmechanisms for

internationalassistanceofmunicipaldevelopment,ensuringamoreequitable,effective,

andcomplimentary

distribution

of

aid

among

all

municipal

governments.

TheConsolidatedProgramme

(a)ObjectiveThe main objective of this proposal is to support implementation of the newly

mandated framework for local service delivery in Kosovo, by way of a set of pilot

programmeinterventionsaimedatovercomingtheprincipalbottlenecksstandinginthe

way

of

effective

and

sustainable

governance

at

the

local

level.

(b)KeyprogrammeareasTheConsolidatedProgamme consistsof12 individualprogrammeproposalsaimedat

comprehensivelyaddressingthemostcritical issuesandbottleneckscurrentlyfacedat

thelocalandnationallevelasaresultofthedecentralisationprocess.Theseproposals,

listed below, have been organised under four broad intervention groups (i) local

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governance and administration; (ii) local service delivery; (iii) intergovernmental and

municipal finance; and (iv) centrallocal cooperation derived from the four action

groupsorcomponentsinitiallytargetedbytheRoadmapexercise.

1. Localgovernanceandadministrationanewcultureofmanagement1. AddressingStaffingIssuesattheMunicipalLevel2. Effectivemanagementthroughtransparencyandaccountability3. StrengtheningSocialCohesionandPublicParticipationattheLocalLevel4. SupportingtheProcessofSettingUpNewMunicipalities

2. Deliveryoflocalservicessatisfyingtheenduser5. SupportingMechanismsforEfficientServiceDelivery6. SectorSpecificServiceDeliverySupport7. PublicPrivatePartnershipsforLocalEconomicDevelopment

3. Intergovernmental and municipal finances generating resources whilebuildingfiduciaryconfidence.

8. StrengtheningMunicipalFinanceSystems Localrevenueandexpendituresystems Participatoryplanningandbudgeting Localcapitalinvestmentsystems

4. Cooperative centrallocal relations building effective support andcoordination

systems

9. AddressingIntergovernmentalDisputeResolution10.Strengthened Local Government Association and Intergovernmental

Communication

11.CentralGovernmentSupporttoMunicipalDevelopment12.Systematizing Capacity Building Systems: Local Government Development

andResourceCentre

A detailed profile description and rationale for each of the individual programme

proposalsis

presented

in

Section

2of

this

document.

Implementationarrangements.

Implementation of the consolidated Programme will be the responsibility of MLGA

working through a small and flexibleProjectManagementUnit (PMU).Basedon the

experienceoftheRoadmapexercise,thePMUshouldbecomposedofacoreteamof

fivespecialistsandexperts(includingaUnitCoordinator).

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Partnership for sustainable local governance and donor coordination. Seeking to

continue the very successful process of stakeholder participation created under the

Roadmap exercise, the PMU will report to ajoint nationalinternational Programme

Steering Committee (PSC), collectively chaired by MLGA, MFE and OPM. This is

particularlyimportant

for

this

Programme,

in

light

of

the

strong

multi

sectoral,

cross

cuttingnatureofanyeffortaimedat localgovernmentstrengthening.ThePSCwillbe

supported by the current Donor Coordination cell in MLGA as well as the Donor

CoordinationCentre inOPM, inordertoensureeffectivedovetailingofdonorsupport

to municipal development. Also borrowing on the experience of the Roadmap,

stakeholderparticipationwillalsobeencouragedatthemoreworkinglevel,bycreating

thematicorsectoralworkinggroupstosupportthePMUintheimplementationofeach

ofthespecificprogrammeswithintheConsolidatedProgrammeframework.

Other implementation arrangements. As proposed in the profiles presented in the

followingSection,implementationarrangementsforindividualprogrammesvaryagreat

deal. Inmostcases,given thevarying institutionalcapacities thatexist inKosovo, the

programmes have been structured as pilot/showcase operations, limited to

representative samples of 35 pilot municipalities, with the understanding that, if

successful,theycouldbereplicatedfor larger,scaleup interventionscoveringtherest

of the municipalities. Depending on the institutional capacity that exists for each

programme area, coordination responsibility for the programme will sometimes be

assignedtoacentralgovernmentministry,whileinothercasesitisassigneddirectlyto

themunicipal governmentswith the supportof an internationaldonor institution. In

eithercase,thebeneficiarymunicipalitiesareexpectedtotakeplayastrongrole,both

intheformulationandimplementationstages.

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SECTION2:PROGRAMMEPROFILES

CONTENTS

ProgrammeProfile

no.

1:

Addressing

Staffing

Issues

at

the

Municipal

Level

..................

9

ProgrammeProfileno.2:Effectivemunicipalmanagementthroughtransparencyand

accountability............................................................................................................. 11

ProgrammeProfileno.3:StrengtheningSocialCohesionandPublicParticipationatthe

LocalLevel.................................................................................................................. 16

ProgrammeProfileno.4:SupportingtheProcessofSettingupNewMunicipalities....19

ProgrammeProfileno.5:SupportingMechanismsforEfficientServiceDelivery.........23

ProgrammeProfileno.6:Sectorspecificsupportforlocalservicedelivery................. 27

ProgrammeProfileno.7:PublicPrivatePartnershipsinsupportofLocalEconomic

Development.............................................................................................................. 31

ProgrammeProfileno.8:Strengtheningmunicipalfinancesystemsfollowingupon

theLawonLocalGovernmentFinance........................................................................ 34

ProgrammeProfileno.9:StrengthenedLocalGovernmentAssociationandInter

governmentalCommunication

Systems

......................................................................

38

ProgrammeProfileno.10:AddressingIntergovernmentalDisputeResolution..........40

ProgrammeProfileno.11:CentralGovernmentSupporttoMunicipalDevelopment..43

ProgrammeProfileno.12:LocalGovernmentDevelopmentandResourceCentre......45

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ProgrammeProfileno.1:

AddressingStaffingIssuesattheMunicipalLevel

Objective

Theoverall

objective

of

this

programme

is

to

address

issues

of

misaligned

staffing

at

the

municipal level. While the programme brings attention to a number of critical issues,

recommendedactivitiesfocusspecificallyontheneedforafunctionalreviewlikeapproach

toensuring thatmunicipal civil servantsareproportionatelyaddressingprofessionaland

administrativerequirementsofmunicipalfunctions.Othercritical issueshighlighted inthe

programmeareaddressedinotherProgrammeProfilesnotedbelow.

InstitutionalResponsibility

Overthelongrun,theMinistryofLocalGovernmentAdministration(MLGA)shouldassume

aleadnationalrole,inpartnershipwiththeAssociationofKosovoMunicipalities(AKM).In

theshortrun,however, internationaldonoragencieswill likelyhavetotakea leadrole in

the

execution

of

the

programme,

in

partnership

with

MLGA

and

AKM.

RecommendedBudget:TBD

Perhaps one of themost serious challenges that Kosovowill face as it decentralises service

delivery is the underdeveloped administrative and managerial capacity of most local

governments today much of it structurally entrenched issues of overstaffing and a poor

division of labour among civil servants. Without a significant, bigpush effort to engage

municipaladministrationsatalllevelsinasystematicmodernisationandrealignmenteffort,

the effective implementation of the new decentralisation mandates will be seriously mired

down.

Specifically,themunicipalitiesfacethreemajorcrosscuttingadministrativechallenges:

Municipal staffing.Kosovosmunicipal governmentsare saddledwithadaunting challenge in

theareaofstaffing:largenumbersofpoorlytrained,underpaidcivilservantswithaweaksense

of team purpose. This is largely the result of the role of employeroflastresult thatmost

municipalitiestookonintheimmediatepostconflictperiod.Actingasaninformalsocialnetfor

thelocallyunemployed,municipalitieshave,overtheyears,bloatedtheirstaffswithpoorlypaid,

poorlytrainedandpoorlymotivatedemployees.Correctingorundoingthissituationwillnotbe

simple, requiring multipronged initiatives including efforts to improve income and job

opportunities in the local economy (see Programme on Local Economic Development) a

seriouspolitical/managerial

commitment

on

the

part

of

local

leaders,

and

an

effective

partnershipbetweenmunicipalmanagementandstaff.

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ThenumberofAdministrativestaff ineachmunicipalitywasalsoasourceofconcernformost

mayors.WhileathemajorityofMayorscomplainedthattheydidnothaveenoughstafftofully

implementtheiragendasasignificantminoritycomplainedthattheyemployedtoomanystaff

andthatmanyofthemhadlittleornoworktodo.ThemayorsofDecanandPeja,forinstance,

both claim that theywould actually achievemorewith considerably smaller staffs than are

currentlyemployedbytheirmunicipalities.

Furthermore, only a tiny minority of mayors were confident of the technical skills and

competenciesoftheirstaff.Whilesignificantnumbersofmunicipalstaffthroughoutthecountry

have received relevant trainings fromawholehostofnationaland internationalagencies the

prevailing sentiment amongmayors is that personal competency levels among staff remain

extremely low.Computer skillswere listedbymanymayorsanddeputymayors as themost

obviousneedformostmunicipalstaff.Inmanyofthesmallerandmoreruralmunicipalitiesthe

legacyofcommunismhasyet tobeeliminated from theadministrative culture.Furthermore,

manyadministrativestaffseemtohavebeenhired,atleastinpart,duetotheroletheyplayed

in the war. The Mayor of Mitrovica believes that a University level course on public

administrationmight rectify some of these issues for the next generation of municipal civil

servants.

A recurring theme throughout the consultations was the lack of financial incentives for

attracting thehighlyqualifiedandcompetentpersonnel required toefficientlyadminister the

municipality.Salarytopups from internationaldonorswerefrequentlysuggestedasaremedy

forthisparticularproblem.

Whilesuchasolutionwouldnotbesustainable,analternativeapproachistoundertakeacross

theboardcutsinstaffwhicharesimplisticalthoughpoliticallyveryconflictive.Another,more

constructiveapproach, is tobuildon theexperienceofotherEasterEuropean countries that

havedealtwithsimilarstaffingchallengesbyrelyingonfunctionalreviewexercisesthataimat

systematically

identifying

and

redifining

critical

functional

needs

and

organisational

divisions

in

a

municipality,realigningstaffonthebasisoftheirskillsprofilesrelativetoredefinedfunctional

unitsofthemunicipality,coupledwithsignificantstafftrainingeffortsaimedatupgradingthe

skill set of existing staff. Such an initiative should also be complemented by a technical

assistance package aimed at creating a sustainable, meritbased system of personnel

management.

Management culture. Municipal managers are burdened by an outdated, bureaucratic

management culture that is illequipped to systematically identify critical local problems,

propose doable solutions, and convert proposals (even political manifestos) into effective

resultsanddeliverables.Managementmodernisationactivitiesbelowaimtocomprehensively

buildcriticalskillsandcollectivelyshiftthemindsetofmunicipalmanagersandstafftowardsa

proactiveculture

of

management.

This

issue

is

reflected

within

Component

1of

the

Programme

ProfileLocalGovernmentDevelopmentandResourceCentre.

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Understanding the responsibilities of local government. The capacity of municipal

administrations iscriticallyhamstrungbytheambiguitiesand imprecisionthatexistsregarding

theprecisedefinitionofcompetenciesandresponsibilitiesofmunicipalgovernments.Although,

criticalprogresshasbeenmadebytheLawonLocalSelfGovernmentandtheforthcomingLaw

on Local Government Finance in the definition of the broad categories of municipal

competencies, major work still lies ahead in clarifying, with functional and administrative

precision, the specific,detailedassignmentof competenciesbetweenmunicipal andnational

entities.Until the latter isundertaken systematically, sectorby sector,and functionalareaby

functionalarea,municipalaswellascentralgovernmententitieswillcontinuetooperatein

thedark,leadingtoconfusion,paralysisofinitiative,andlackofaccountabilityinbothlevelsof

government.Manymayorsexpresseddismayat the fact that theredoesnotappear tobea

harmonisingstrategyforthetwolaws.Thecontradictorynatureofthetwolawshasledtoasort

of legislativeparalysis inseveralmunicipalities.Manyalsocomplainedthatdifferentministries

appeartohaveinterpretedboththenewLawandtheRegulationdifferently.

Toaddressthisproblem,accompanyingProgrammeProfilesitisproposedtohaveasystematic

technical assistance effort aimed at clarifying detailed competencies between levels of

government,through

aseries

of

technical

dialogue

and

negotiation

processes

organised

sector

bysector betweenlocalandcentralgovernmententities(seeProgrammeProfileAddressing

IntergovernmentalDisputeResolution).

Components

Component1: Addressing Municipal Staffing Issues Functional review and

staff/organisationrealignment

Output1: Design and implementation of a Kosovospecific detailed methodology for local

functionalreviewandorganisational/staffrealignment;

Output2: Formulationandimplementationofatechnical/professionaltrainingprogrammeof

municipalstaff

at

all

levels

(politically

elected

leaders;

upper

and

middle

management; line staff) aimed at strengthening staff skills in critical functional

areas of municipalities (This is alsoforeseen in the Programme Profile on Local

Government Development and Resource Centre budgetary requirements are

reflectedthere);

Output3: Promotion of a sustainable, meritbased, secure and transparent personnel

management system through: a) establishment of procedures for appointment,

promotion and disciplinary measures, b) analysis of existing possibilities for

maintenance and upgrading of professional qualifications, and c) exploration of

possibleroleforthemunicipalassociationincapacitybuildingeffort;

Output4: Monitoringofresultsofpreviousactivities

ApproximateBudget:

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Effective municipal management through transparency and

accountability

Objective

Theoverallobjectiveofthisprogrammeistomainstreampracticesforincreasedtransparency

and accountability into municipal management processes. In particular, the programme

focuses on using transparency and accountability as management tools, to capacity build

municipal leaders to undertake selfassessments of the levels of transparency and

accountability in municipal processes, with particular focus on procurement, financial

management and urban planning, with the end goal of eventual ISO certification of

municipalitiesinKosovo.Thisprogrammeaimstopilottheseprocessesin5municipalities,with

foreseenscaleupforimplementationKosovowideafterthefirstphase.

InstitutionalResponsibilities

Executingagencies:

5municipalities,

supported

by

central

coordination

mechanism

funded

by

internationaldonor

Partnersupport:Partnershipofgovernmentandcivilsocietystakeholderorganizations

Recommendedbudget:TBD

Accountabilityandtransparencyareindispensablepillarsofdemocraticgovernancethatcompel

the state, private sector and civil society to focus on results, seek clear objectives, develop

effectivestrategies,andmonitorandreportonperformance.Throughpublicaccountabilityand

transparency,governments,

together

with

civil

society

and

the

private

sector,

can

achieve

congruencebetweenpublicpolicy,itsimplementationandtheefficientallocationofresources.

Transparency InternationalhasrankedKosovoasbeingthefourthmostcorruptcountry inthe

world.Atthe localgovernment level,eventhoughspecificdocumentation isoften lacking,the

currentperceptionamong localcitizens isthatcorruption isalsocommonplace,particularly in

three critical areas: contract procurement, permitting and taxation, and the hiring and

promotionofcivilservants.Kosovosabilitytofightpublicmismanagementandcorruptionwill

beacrucialtestforitspoststatusaspirationtojointheEuropeanUnion.Thiswillberendered

particularlychallengingbythedecentralisationprocessputinmotionbytheAhtisaariProposal:

the significant increase inpowerandautonomyof localgovernments, ifnotaccompaniedby

commensurate increases in transparencyandaccountability,willbringwith itanevengreater

riskofmismanagementandcorruptionatthelocallevel.

Municipalprocurement systems.Currently the internal control systems inKosovosmunicipal

administrationsareunderdeveloped.Monitoringand controlmechanismsare inefficientand

donotprovideguidelinesforfunctionaladministration.Thishasbeenclearlydocumentedinthe

caseof localprocurementsystems.AccordingtorecentreportsfromtheOfficeoftheAuditor

General,corruptionandmismanagement inmunicipalprocurement systems iswidespread. In

manycasescontractingdoesnotadheretoestablishedprocurementrulesandprocedures,thus

opening the door to practices of nepotism where contracts are awarded on the basis of

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friendship or family ties. Similarly, media outlets and civil society have often reported

accusationsofbriberyofprocurementofficers.

Transparencyasamanagementtool.Littlehasbeendonetoeducatemunicipalmanagersand

staff on the significant benefits that can accrue from the adoption of transparent and

accountablemanagementpractices.

Inthefirstplace,byachievinginternationallyacceptedpracticesinthisarea,municipalitiescan

muchmoreeasilyreceiveISOcertification,inturnopeningthedoorforthesamemunicipalityto

become eligible for direct international lending once subnational borrowing authority is

established. Irrespectiveof the latter, transparency and accountability systems constitute an

important management information tool for Mayors, providing useful feedback on the

effectiveness of a municipalitys service delivery and financial administration systems.

Moreover, the streamlining and standardisation of municipal operations that result from

transparency initiatives lead to significantefficiencygains in themanagementanddeliveryof

publicservices.

Themayor

of

Kaqanik

believes

that

his

greatest

challenge

and

the

feat

he

most

wishes

to

accomplish will be the changing of the management culture in his municipality. The

administrative culture of the communist era has not yet been fully eradicated in many of

Kosovosmunicipalities.CitizensthroughoutKosovoremainillinformedontheroleofmunicipal

civil servantsandevenon the roleof themunicipaladministration itself.Furthermore,many

mayors related how the procedures and processes involved in everyday municipal

administrationarealmostentirelyincomprehensibletotheaveragecitizen.Thereisasignificant

willamongmayors todramatically increase transparency andaccountabilityat themunicipal

level.TheMayorofKacqanik,alongwith severalothers, suggested thatagoodplace to start

promoting a culture of transparency was in the municipal work place itself. He advocated

tearingdownactualwallsinthemunicipalbuildingsothatcitizenscouldliterallyseemunicipal

staff

at

work.

In

Suhareke,

the

brand

new

Centre

for

Citizen

and

Business

Services

was

designed

specificallywithphysicaltransparencyinmind.

Components

Component1: Transparencyandaccountabilityassessmentofmunicipaloperations

Output1: Develop diagnostic tools for assessing integrity levels within a municipal

department. Determine the areaswhere lack of transparency and accountability

exist themost, aswell as areaswhere corruption is believed to occur themost

through interviewswithmayors and department directors/heads of department.

Areasthatshouldbeassessedmorethoroughlyare:

o urbanplanning(constructionpermits),o financialmanagement(taxcollections),o communalactivities(permitsfortaxis,businessesetc.),o publicprocurementwithinthesecategories;

Output2: Reviewthepublicprocurementprocedures,howtheyaretobepromulgatedwithin

publicsectorprocurementdepartmentsaswellastothebusinesscommunity,the

trainingrequirementsforensuringtheirintroductionandimplementationaswellas

themonitoringprocessesforensuringcomplianceofthoseresponsibleforensuring

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aneffectiveprocurementprocess.ExpertsinlocalgovernmentwiththehelpofAKM

andtheKosovoAntiCorruptionAgencyshouldconductthisexercise.

ApproximateBudget:

Component2: Incorporating transparency and accountability tools, aiming at ISO

certification

Output1: Standardisingmunicipaladministrativeprocedures in thethreehigh riskmunicipal

administration areas: urban planning, communal activities and financial

managementby:

o Mappingandstreamliningmunicipaladministrativeproceduresatlocallevel,o Develop amanual for local stakeholders on front and back office processes,

showing,bywayofsimpletablesanddiagrams,theprocedure,timeframeand

costofeachoperation,

o Developanddisseminatewrittenproceduresandrulesforprocurement;Output2: Prepareaninformationandresourcetoolkitforlocalgovernmentandcivilsociety,

whichcan

be

used

as

aguide

of

how

to

fight

against

corruption

and

improve

the

levelofgoodgovernanceatthelocallevel;

Output3: DevelopaCodeofEthicsforpoliticalappointeesatthelocallevel,supportedbythe

AKMandaselectgroupofinterestedmayors.

ApproximateBudget:

Component3: Municipal index of responsibility, transparency and accountability in the

areasofpublicprocurement,urbanplanningandfinancialmanagement

Output1: Createamethodologytoeliminateweakspotsontransparencyandaccountability

focusing

on

the

most

vulnerable

areas

identified

during

the

assessment

stage.

To

be

usedinfutureasaselfevaluationmechanismbylocalauthorities.Themethodology

shouldspecify:

o criticalpointsofcorruptionidentifiedinthefirststage,o anticorruptionmechanism,o indicatorsandquantificationoftheindicators;

Output2: ConductacomprehensivebaselineandperiodicassessmentformeasuringtheIndex

atthelocallevel;

Output3: Assistmunicipalities inestablishingaregisterofallofficialdocuments,databaseof

the requests submitted, and support them in accomplishing their obligation to

appoint a designated archivist, also to facilitate process of establishment of the

Commissionsfordraftingthelistofsensitivedocuments;

Output4:

Establish

mechanisms

to

monitor

implementation

of

the

Law

on

Access

to

Official

Documents.

ApproximateBudget:

Component4: Network of local watchdog NGOs focusing on transparency and

accountabilityofmunicipaloperations

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Output1: Provide capacity building for civil society organizations on watchdog functions,

includingbettercoordination.Thiscanbedonebyprovisionofgrantsfor23 local

NGOsineachmunicipalitytocreateawatchdognetworkwithoneNGOtakingthe

leadershiprole.RequiresanannualworkplanforNGOselection,andannualreport

attheendoftheyear.Activitiesshouldinclude:

o trainingofthemediaoninvestigativejournalism,o publicawarenessraisingonmunicipaltransparencyandaccountability,o abilitytoaccessinformationatlocallevel,o implementation of activities on the issues of transparency, accountability,

ethics,anticorruption,goodgovernanceaimingtoenhancecivilcontrol inthe

fightagainstcorruption.

ApproximateBudget:

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StrengtheningSocialCohesionandPublicParticipationatthe

LocalLevel

Objective

Strengthened social cohesion among municipal inhabitants by (i) advancing ethnic and

minority integration and gender equality, and (ii) strengthening citizen participation

mechanismsandtheuseoflocalvolunteerorganizationspilotedin5municipalities.


Executing agencies: Ministry of Local Government Administration (MLGA); Ministry of

CommunitiesandReturns(MCR);OfficeofthePrimeMinisterAgencyforGenderEquality

(OPMAGE)

Partners:CivilSociety

RecommendedBudget:

TBD

AcentralpremiseoftheAhtisaariProposalisthatKosovoshistoryofintenseethnicconflictcan

be overcome by empowering local communities and generating thebuilding blocks of social

cohesionfromthebottomup,atthe locallevel.Inorderforthistohappen,aconcertedeffort

mustbemadeinthreeimportantareas:(i)strengtheningofpublicparticipationmechanismsfor

allcitizens inmunicipalities, includingaproactiverelianceon localvolunteerorganizations; (ii)

targeted social and physical integration of marginalized ethnic community groups; and (iii)

proactiveeffortsaimedatreapingthebenefitsofimprovedgenderequalityinlocalgovernance

andadministration.Currently,themajorityoflocalgovernmentadministrationsinKosovohave

made relatively limited inroads in addressing problems of social/minority exclusion and

restrictedcitizen

participation

in

their

communities.

In

many

cases,

this

has

been

due

more

to

a

lackofcapacityandtechnicalandorganisationalknowhowamonglocaladministrators,thanto

alackofpoliticalwill.

Toaddress these shortcomings,a setof fourcomplementarycomponents isproposedbelow,

dealing respectively with: social and physical integration of minority communities; gender

equality; localvolunteerism;andpublicparticipation.Moreover,thecomponentonpromotion

of the rights ofminority communities to participate in decisionmaking isdivided into three

components (technical assistance to municipalities, facilitation of interethnic dialogue and

increasingaccesstopublicservicesofminoritycommunities).Theaimofthiscomponent isto

promote the rights of all communities living in Kosovo, as well facilitation of interethnic

dialogue.

The

component

on

gender

equality

mainly

consists

of

capacity

building

and

effective

coordinationoftheofficialsthatplanandaddressgenderissues.Theaimofthecomponenton

volunteerism aims to increase cooperationwith civil society and give theopportunity to the

citizenstohavesomepracticalexperienceandtocontributeinadministration.Also,thiswould

help the administration to select good capacities in their work. The component on public

participationaimsto improvethetransparencyoflocalgovernancetowardscitizens,aswellto

improvetheparticipationofcitizensinthegoverningoftheirownmunicipalities.

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Many mayors, throughout the consultation process, expressed a resolve to increase citizen

participation in municipal affairs. While the benefits to the public that come with citizen

participationareobviousmostof theMayorsunderstood that therewerealsobenefits tobe

gainedforthemunicipaladministration.Mostmayors,aspoliticians,arekeenlyawarethattheir

mandateswere grantedby the citizens and that they thusonly stand to gain from involving

these same citizens in the governing process. The mayor of Istog, by way of example,

encourages public debates on relevant social, economic and administrative issueswhile the

mayorofFerizajmeetsweeklywithgroupsofconcernedcitizens forupto fivehours.Mayors

throughout Kosovo have introduced similar schemes to promote social cohesion and public

participation.

Components

Component1: Socialandphysicalintegrationofminoritycommunities

Output1: Technicalassistancetostrengthenoutreachandparticipatoryplanningmechanisms

ofmunicipalitieswithminoritycommunities

a) Organizationofyearlypublic informationcampaignsbymunicipalgovernmentto

promote

the

rights

of

its

citizens

to

participate

in

decision

making;

b) Formulation of annual community integration action plans by the MunicipalCommunity Offices, with direct participation by minority communities, to

identifyandplanactivities regardinghousing,employment and integration in

publiclife;

c) IncreasingfrequencyofvisitsbytheCommunityOfficesthroughprovisionofnecessary transport infrastructure tominorityareasaimedat informing the

latter of relevant municipal government initiatives, and receiving inputs and

feedbackfromminorityresidents.

Output2: Facilitationofinterethnicdialogueandcooperation

a) In cooperation with civil society organisations, undertake local multiethnicactivitiesforyouth,suchascamping,seminarsandconcerts,aimedatbuildinga

newcultureofinterethniccooperationamongtheyouth;

b) Promotion of summer internships in themunicipal administrations, aimed atmobilizing a mix of secondary school students from different ethnic

backgrounds.

Output3: Expandedaccesstolocalpublicservicesbyminoritycommunities

a) Technical assistance to support Community Offices in the processing andpresentation of minority community action plans with their respective

Municipal Assemblies, aimed in particular at addressing critical shortfalls in

infrastructure

and

other

public

services

and

utilities;

b) Technicalassistancetomunicipalitiesinordertoraisecapitalinvestmentfundswith the Donor Coordination Cell of theMLGA, in order to financeminority

communityinvestmentneedsthatcannotbecoveredthroughregularmunicipal

budgetfunds.

ApproximateBudget:

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Component2: Technical Assistance to strengthen gender equality in municipal

administrations

Output1: SupporttotheAgencyforGenderEqualitytoorganisetrainingseminarsand/oron

thejob technical assistance formunicipal gender officers to: (i) disseminate and

discussimplementationoftheLawonGenderEquality;(ii)formulatelocalpolicyor

projectinitiativesinsupportofgenderequality,and(iii)reviewmunicipallegislation

andnormstoidentifyinconsistencieswiththelawongenderequality;

Output2: TechnicalassistancetosupportcooperationbetweenMunicipalGenderOfficersand

relevantcivilsocietyorganisations.

ApproximateBudget:

Component3: Formulationandimplementationofapolicyonlocalvolunteerism

Output1: Undertake a study to diagnose prospects for increased volunteerism at the local

level,and

propose

alternative

forms

of

support

promotion

of

the

findings

with

centralandlocalgovernment;

Output2: Provide technical assistance to ensure adequate local dimension in proposed

nationallegislationonvolunteerism;

Output3: Awareness campaign to inform and encourage local citizens andNGO sectors of

opportunities,rightsandresponsibilitiesofvolunteersandvolunteerorganisations,

as well as responsibilities of government and prospects for publicprivate

partnerships.

ApproximateBudget:

Component4: Strengthenedpublicparticipationandoutreachatthelocallevel

Output1: Technical assistance to municipalities on cooperation with media, informing the

publicofmunicipalactivitiesandperformance;

Output2: Technical assistance to improve dissemination and organisation of public

participationinmunicipalmeetingsandevents;

Output3: Technicalassistance tomunicipalitiesandcivilsocietyorganisations, toencourage

greaterparticipationinplanninganddeliveryoflocalservices;

Output4: Technical assistance to develop systems and procedures to ensure regular and

timelyupdatesofmunicipalwebpages (Please notewebpagemaintenance also

referencedinProgrammeProfileontransparency).

ApproximateBudget:

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SupportingtheProcessofSettingupNewMunicipalities

Objective

Theoverall

objective

of

this

programme

is

to

highlight

specific

process

related

issues

of

setting

upnewmunicipalities,asforeseenintheAhtisaariProposal,andlegislatedinthenewLawon

LocalSelfGovernmentandLawonMunicipalBoundaries.Movingbeyondspecific legislative

requirements,thisprogrammefocusesonaddressing(i) increasingcommunityacceptanceof

the creation of new municipalities, (ii) ensuring that the setup of the municipalities is

coordinated by a central oversightbody, (iii) setup is undertaken in a strategic andwell

plannedmanner,and (iv) fundinggapsforcriticalcomponentsofsetup(hardware,training,

humanresourcesetc.)arerapidlyaddressed.


Executingagency:PrimaryresponsibilityshouldliewiththeMLGA,particularlyin leadingthe

process

of

creation

of

an

implementation

over

sight

body

Coexecuting partners: Ministry of Finance and Economics (MFE), Ministry of Returns and

Communities (MRC), and the Association of Kosovo Municipalities (AKM), together with

internationalinstitutionswithspecificprogrammestosupportthisprocess(USAID,EAR).


Newly adopted legislation on the establishment of new municipalities (Law on Local Self

Government and Law on Administrative Municipal Boundaries) instructs the government of

KosovothatthecurrentmunicipalityofNovoBerde/NovoBrdoshallbeterritoriallyextended,as

wellas

the

current

municipality

of

Mitrovica,

two

new

municipalities

shall

be

established

(Mitrovice/MitrovicaNorthandMitrovice/MitrovicaSouth).Hence,newmunicipalitiesshallbe

established in: Gracanice/Gracanica, Ranillug, Partesh, and Kllokot. Also the existent pilot

municipalitiesestablishedin2005shallbecertifiedasregularmunicipalities(Junik,HaniiElezit

andMamusha).Establishmentofthesemunicipalitiesisagovernancepriorityandthusitishigh

intheagendaoflocalandinternationalinstitutions,includingthedonorsinKosovo.

Theprocessofestablishmentofnewmunicipalitiesbringsalongmanychallengesandtherefore

requiresgeneralmobilisationofgovernment institutionsandgreatercommitmentof relevant

internationalstakeholders.Itisimportanttostressthatwithoutsuccessfulestablishmentofthe

newmunicipalitiestheagendaofthepathofthereformoflocalselfgovernmentisatstake.Itis

highlighted by the Government of Kosovo and in particular by the international actors (EU,

ContactGroup countries, etc.) that success in establishment of newmunicipalities interlinks

directlywithsuccessoftransitionprocessinKosovoingeneral.

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However,thecreationofthenewmunicipalitiescontinuestobeoneofthemostcontentious

aspects of the Ahtisaari Proposal. While the majority of Kosovos municipalities will be

unaffected, the finaloutcomeof theestablishmentprocess remainsof critical importance to

those municipalities which will be affected. Many of the mayors of affected, or mother

municipalitiescomplained that itremainsunclearwhetherUNMIKorEULEXwillsupervisethe

process.Someof thesemayorseven feltthat theywerebeingdeliberatelyexcluded from the

processbyUNMIK.

Community Acceptance. The establishment of the newly createdmunicipalities requires not

only wide acceptance from their communities but it also seeks great participation in the

establishmentprocess.Inmostofthesemunicipalitiesthemajorityofthepopulationarefrom

theSerbiancommunitywhichis,infact,hesitanttoparticipateintheprocess.Thecooperation

of Serbian community is crucial to success. Therefore, the Kosovo Government and the

international commitment must play a crucial role in encouraging the cooperation of the

Serbiancommunity.

InMitrovicathereareasignificantnumberofAlbanianfarmerswhoselandswill lieinthenew

municipalboundary.

These

farmers

will

find

themselves

aminority

in

someone

elses

municipality instead of a majority in their own municipality. This is a matter of huge

significance to these farmers and their municipal leaders. In Gjilan, which faces the almost

identicalproblemofcedingsomeofitsterritorytothenewlyexpandedNovoBerde/NovoBrdo,

themayor is fearful of the potential reaction of Albanianswhowill find themselves on the

wrongsideofthenewboundary.Infact,thenewmunicipalborderbetweenGjilanandNovo

Berde/NovoBrdowillactuallycutseveralfarmerslandsintwo.

Implementation(MunicipalitieswithmajoritySerbandnonAlbanianpopulations).Thecontexts

for the implementation of the new municipalities differ from one another in a number of

politicalandeconomiccircumstances.Inmunicipalitieswheretherearelesspoliticalandethnic

tensions

(Novo

Berde/Novo

Brdo,

Mamusa,

Ranillug,

Junik)

the

implementation

process

should

proveeasier.However, inmunicipalities suchasGracanice/GracanicaandMitrovice/Mitrovica

difficultiesaremorelikelytoarise.

However, in all new municipalities, critical infrastructure and training needs must be

immediately addressed if commitments made within the Ahtisaari Proposal are to be met.

USAID and EAR local government support programmes have built within them specific

componentsfocussingontheseissuestoensurethatsuchissuesaspremises,ITinfrastructure,

andbasicorganizationalandmanagementtrainingsupportareprovided.

Several of the mMayors of mother municipalities also pointed out that while they may be

strugglingtocopewithallofthecompetenciesbeinghandedtotheminrecenttimes,thenew

municipalitiessimply

cannot

hope

to

effectively

handle

the

workload.

In

short,

the

mayors

fear

thenewmunicipalitieswillbe swamped.ThemayorofNovoBerde/NovoBrdohas indicated

(according to the Mayor of Gjilan) that his administration is struggling to cope with their

responsibilitiesevenwithintheterritoryalreadyallottedtothem.Howcanhehopetoprogress

afterhismunicipalityisexpanded?

CrossInstitutional Cooperation. The successful implementation of the establishment of new

municipalities is linkedwithwell coordinatedmanagement between the Kosovo Institutions

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(MLGA, MEF, MCR, and AKM etc) and the various international donor agencies. Without a

strategic joint implementation plan and clear division of responsibilities and, moreover, a

responsiblemanagerialandoverseeingbody,successmightbecompromised.

ResourceMobilisation.Theprocessofestablishmentofnewmunicipalitiesrequireslargefunds

thathavebeenonlyroughlyoutlinedintheKosovoConsolidatedBudget.Atthistimethereare

some budgetary estimates. However, these predictions are not specific and therefore it is

difficulttoaskforpledges.Acoordinatedandunifiedcommitmentfromallactors iscrucialto

thesuccessfulfundingandimplantationoftheprogramme.

Components

Component1: Increased acceptance and participation of the community needs undertaken

duringinitialstagesofmunicipalitycreation

Output1: Anawarenesscampaign,focusingonparticipationandacceptanceoftheprojectby

communities, with an emphasis on the benefits that the creation of the new

municipality brings should be prepared and conducted before the actual

implementationplan

for

the

establishment

of

the

new

municipalities;

Output2: TheSerbiancommunityandotherethnicitiesintherespectivemunicipalitiesshould

be continuously consulted by institutional and political leaders and respective

ministries;

Output3: Identification and presentation of a social welfare project for the area that will

tackle issues like employment and integration should be as implemented in the

earlystagesoftheprogramme;

Output4: Anextensiveseminarandtrainingprogrammeforthenewcivilservantsshouldbe

conducted thatwouldbeattendedjointlybyall theethnicitiesrepresented inthe

municipality;

Output5: Support for civil society, in particular local NGOs, will help acceptance of the

communities.

ApproximateBudget:

Component2: CreationofaStrategicJointImplementationPlanandOversightBody

Output1: AnoversightbodyconsistingofrepresentativesfromKosovoinstitutions,AKMand

the international community created to ensure the careful coordination and

implementationoftheprocesstoestablishnewmunicipalities.

ApproximateBudget:n/a

Component3: Developmentofastrategyforestablishingnewmunicipalities,withaspecific

focus on the municipalities that suffer from greater political and ethnic

tensions.

Output1: Rapiddevelopmentofastrategy/planforsettingupnewmunicipalities,withtesting

ofsetup inNovoBerde/NovoBrdo,Mamusa,Ranillug,Junik(wherethereare less

politicalandethnictensions)topresentasuccessfulprecedent.Suchastrategy/plan

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willalsoaddressissuesthatarenotstipulatedintheLawbutwhicharerelevantto

thesuccessfulstartupofnewmunicipalities.

Output2: Meetingsbetween theabovenewlyestablishedmunicipalitiesandotherplanned

new municipalities that are more reluctant to take part in the programme to

presentconcreteexamplesofthebenefitsoftheprocess.

ApproximateBudget:

Component4: AdoptionofastrategicfundingplanbytheKosovoAssembly,tosupplement

thefundsforeseenintheKosovoConsolidatedBudget

Output1: Rapidassessmentoffundingneeds,withincreasedallocationstomunicipalitiesthat

presentbiggerchallengetoimplementation;

Output2: Engageinternationaldonororganisationtomakedialoguewithcommunities.

Approximate Budget: n/a funding assessments have been undertaken, consolidation of the

recommendationscanbedonebyMFEtogetherwithitsinternationalpartners.

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SupportingMechanismsforEfficientServiceDelivery

Objective

Theoverall

objective

of

this

programme

is

to

provide

the

necessary

capacities

to

municipalitiesto improvethequalityandcosteffectivenessofsectoralservicesdeliveredto

the public. These capacities focus on setting standards based on public consultation,

measuring progress and implementing followup recommendations, streamlining

administrative services to improve theefficiencybywhich these servicesareprovided,and

implementing costeffective mechanisms for backoffice functions to lower the human

resourcescostsofservicedeliveryinordertoredirectcriticalfundstocapitalinvestmentand

communitydevelopmentprogrammes,pilotedinfivemunicipalities.


Centralexecutingagency:MinistryofLocalGovernmentAdministration(MLGA)

Coexecutorsandbeneficiaries:AssociationofKosovoMunicipalities(AKM),5municipalities

Additionalpartnersupportfrom:MinistryofPublicServices(MPS)/KosovoInstituteforPublic

Administration(KIPA);MinistryofTransportandCommunications(MTC);MinistryofFinance

andEconomy(MFE)


Inordertoeffectivelystrengthentheservicedeliverycapacitiesofmunicipalgovernments,not

onlymust attention be given to sector specific interventions such as those proposed in the

previousProgrammeProfile,butalsotoanumberofimportantgenericmanagementtoolsthat

as

international

experience

demonstrates

are

able

to

significantly

improve

the

productivity

ofabroadrangeofmunicipalservicesandutilitiesranging fromthemorepalpablesectoral

servicessuchaseducation,health,potablewaterandsanitation,andpublictransportation,to

themoreintangiblebutnolessimportantadministrativeservicessuchasbirthandmarriage

registration; building and construction permits; automobile registration; or the issuing of

passports.Thecurrentprogrammeproposestechnicalassistanceeffortsaimedatstrengthening

the capacity of municipalities in three of these service delivery areas: (i) service delivery

performance benchmarking; (ii) onestop shop facilities to streamline frontoffice delivery of

servicestolocalcitizensand(iii)improvingthecosteffectivenessofservicesbywayofpooled,

intermunicipalservicedeliveryagreements.

Unfortunatelymostofthemayorswhoparticipated intheconsultationsadmittedthat,intheir

municipalities,there

was

considerable

room

for

improvement

in

this

area.

In

particular

there

is

a

dire need to professionalise the small community officeswhich dealwith everyday requests

suchasdrivers licencesandbirthcertificates.Whilethesecommunityofficesarenotfound in

everymunicipalitytheypresentthepublicfaceofciviladministrationtohundredsofthousands

of Kosovars. The Mayor of Kacanik, in his attempts to alter the administrative ethos in his

municipality, suggests promoting a culture of customer care among municipal staff. This

approachmaygosomewaytowardshelpingtostreamlinetheprocessofbasicservicedelivery.

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24/47

Theefficientdeliveryofmunicipalservicesisdirectlylinkedtostaffskillsandfinancialresources.

Whilebasic infrastructure, likecomputer software, iscriticallyneeded,manymayors (suchas

Malisheva and Shtime) complained that many of their staff, both at the central municipal

buildingandintheoutlyingsatelliteoffices,donotevenknowhowtooperateacomputer.Thus

the retraining ofmunicipal staffwas frequentlymentioned in the consultations as away to

increasetheefficiencyofservicedelivery.

Need for performance benchmarking in service delivery. At the municipal level, regulatory

complexity and poor traininghas resulted in service delivery that is obscured by a seriesof

complex procedures, regulations, directives and licensing requirements. Citizens often

experience long delays in obtaining needed services, or are forced to rely on networks of

personal contacts. Adequate training and education opportunities are limited. This situation

oftenresultsinweakperformance,alackoftransparencyandcorruption.Theabilitytomeasure

the performance of service delivery is further undermined by standardised data collection

methodologies,andlackofproperlyrecordeddataforcomparability.Furthermore,benchmarks

cannot be arbitrarily set indepth consultative processeswith the local community (village

leaders, businesses, civil society) needs to be undertaken to establish benchmarks for key

servicessuch

as

health

care

and

education,

access

to

clean

water,

public

transport

and

waste

collection.

Needtostreamlinefrontofficeservicedeliverybymunicipalities.Themajorityofmunicipalities

in Kosovo have a "ReceptionOffice" that can be usually found at the entrance of themain

municipalbuilding.Thestaffatthisofficecandirectcitizenstothedepartmentinchargeoftheir

concern.However,citizensusuallyhavetowanderaroundthemunicipalbuildingandknockon

differentdoors inorder togetthe informationorservice theyrequire,asa resultofa lackof

clear understanding by reception staff of the functions and responsibilities of various

departments. Services are provided behind closed office doors and citizens cue up in the

municipalcorridorswaitingtobeserved.Forsomeissues,suchasbusinessregistration,notonly

are

municipal

licenses

required

but

also

licenses

from

various

ministries

depending

on

the

kind

of business provision of information for these procedures is often unclear and results in

confusion and improperly prepared documents. Streamlining and capacity building for front

offices must be prioritised in order to offer customers the convenience of obtaining their

requirementsinonestopbyprovidingmanyservicesinoneplace,therebyreducingtheamount

oftimecitizensrequiretoobtain information.Thiswillalsoreducetheamountofpaperwork

forthe largenumberofcivilservants itcurrentlytakestoaddressthespecific issuesraisedby

individualcitizens.

Previous activities initiated to set up onestopshops, or citizen service centres, in 6

municipalities(fundedbyUSAID),haveaimedtoachievesimilarreductionsinwaitingtimeand

traversingofmunicipalbuildingcorridors.ThenewlycreatedCSCsoffereveryservicepreviously

providedby

the

Intake

Office

and

Municipal

Directorates,

including

birth

certificate

issuance

and

many administrative, cadastralandbusiness certification requests.Citizens inmost casesare

abletohavetheirrequestsdealtwithimmediatelyor,inmorecomplexcases,aregivenspecific

timestoreturnfortheirdocuments.Moreover,EMIhasplacedmultilingualKosovarstaffatthe

CSCsandtrainedthemtofillouttherequestformsusinganonlinesystem,whicheliminatesthe

languagebarriersandlightentheburdenonthecitizensforobtainingadocument.However,a

critical weakness continues regarding the clear understanding of front office staff of the

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25/47

functionsandmandatesofvariousmunicipaldepartments,andthetypeofassistancewhichcan

beprovidedtocitizensinmostmunicipalities.

Improving efficiency of service delivery costs throughjoint administration. The objective of

intermunicipal cooperation is to improve the management of local affairs and quality of

municipal service delivery against acceptable costs. Intermunicipal cooperation is most

appropriatewhenitleadstogainsineconomicefficiency,incaseswheremunicipalitiescombine

their resources to take advantage of economies of scale and divide tasks according to

appropriate expertise. For example, a group of municipalities may join forces to reduce

administrative costs for tax collection, financial administration or building inspectors by

specializinginaspecificadministrativefunctionservingallmunicipalities,lesseningthenumber

ofcivilservantsrequired,andfreeingupfinancialresourcesforcapitalinvestments.Likewise,a

groupofmunicipalitiesmayalsojointlyfundaspecificfunction,suchasanotarypublicposition,

or localeconomicdevelopmentagency.Excellentexamplesof intermunicipalcooperationcan

beseeninMacedonia(jointadministration),Hungary(jointlyfundedposition),andFrance(joint

management of public utilities). While the concept and added value of intermunicipal

cooperation is understood, technical knowledge of planning, funding, and

implementation/managementmodalities

are

weak,

and

data

on

efficient

numbers

of

civil

servantsvisvisserviceprovisionhasnotyetbeenconstructed.

Components

Component1: Creation of service delivery performance benchmark systems in

municipalities. Creation ofminimum standards and baselines on sectoral

servicedeliverybymunicipalauthorities:

Output1: Undertake policy discussion and draft administrative instruction to require

municipalitiestoimplementastandardisedbenchmarkingsystem;

Output2: Initiateapilotprogrammeforbenchmarking,includingonthejobcoachingfordata

collection,analysis

and

setting

benchmark

recommendations

through

community

participation;

Output3: Basedonoutcomesofthepilotprogramme,createanactionplanforthescaleup

andinstitutionalisationofbenchmarkingofpublicservices.

ApproximateBudget:

Component2: Strengthening onestopshops as a tool for streamlining frontoffice

services of municipalities. In order to (i) strengthen frontoffice

responsiveness and efficiency of municipal governments in dealing with

citizen clients, (ii) improve accessibility to municipal services by citizens

residing

in

geographically

more

remote

locations,

it

is

proposed

to:

Output1: Undertake a costbenefit analysis of services most efficiently and effectively

providedviaOSSanddraftanMLGAadministrativedirectionontheestablishment,

function&operationalproceduresoftheOSS;

Output2: Pilot the set up ofOSS through the provision of training to municipal staff and

managementonthesoftwarerelatedtoOSSandoncustomerserviceandonestop

shop duties, including concrete knowledge of the functions and mandates of

municipaldepartments

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Output3: Establish satellite OSS of 12 staff in areas geographically removed from main

municipal building, based on a pilot funding programme from the central

government;

Output4: Increaseremoteaccessthroughensuringthatmunicipalwebsitesareupgradedand

maintained in order to cope with service/information requests from citizens

(particularlythoseresidingabroad)(Pleasenotethatwebsitestrengthening isalso

addressedintheprogrammeonmunicipaltransparency).

ApproximateBudget:

Component3: Intermunicipal cooperation for service delivery. To address the

widespread lack of technical knowledge on the advantages of joint

administrationofmunicipal functionsand servicesaswellasjointproject

management(particularlyinrelationtothemanagementofpublicutilities),

itisproposedto:

Output1: Implement a technical support programme to increase the awareness of IMC

modalities,particularlyonplanning,management,financingandimplementationof

jointprojects

and

joint

administration

programmes;

Output2: Undertakea costbenefitanalysisof the rational sizeofmunicipal civil service for

theprovisionofpublicservices;

Output3: Implementagovernmentprogrammetoprovideonthejobtechnicalassistanceto

pilot theplanningand implementationofjointadministrationagreements in two

microregionsinKosovo

Output4: FindouttherationalsizeforefficientserviceprovisionofdifferenttypesofPOEsfor

futuremunicipalbudgetrequeststothecentralgovernment.

ApproximateBudget:

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Sectorspecificsupportforlocalservicedelivery

Objective

The

objectives

of

this

programme

are

to

(i)

strengthen

local

delivery

mechanisms

in

four

sectorshealthmanagement,environmentalmanagement,socialservices,andcommunity

safety; (ii)establishmoreclearcut,operationaldivisionsof functions, responsibilities,and

fundingmechanisms/levelsbetweenmunicipalgovernmentsandcentralministriesincharge

ofthesesectors,pilotedinfivemunicipalities.


Executingagencies:MinistryofHealth(MoH),MinistryofEnvironmentandSpatialPlanning

(MESP),MinistryofLaborandSocialWelfare(MLSW),andMinistryofInternalAffairs(MIA),

respectively,forSubprogrammesA,B,C,andD(below)

Coexecutorsandbeneficiaries:5municipalitiesforeachcomponent

Additionalpartner:

Association

of

Kosovo

Municipalities

(AKM)


Kosovos new mandates on municipal competencies will require a significant technical

assistanceeffort,atboth localandcentral levelsofgovernment,tobecomeoperational i.e.,

for municipalities to be able to clearly and efficiently administer their responsibilities, and

coordinate with central government ministries. Eventually, individual exercises of technical

assistancewillneed tobe formulated and implemented for eachof the service sectors now

assigned

to

the

municipalities.

So

far,

the

Roadmap

exercise

was

successful

in

formulating

preliminaryprogrammeproposalsforfourofthesesectors:healthmanagement,environmental

management, social services, and community safety thanks principally to the clear

commitment shown by the respective central government ministries of these sectors to

proactively engage in the decentralization process. Accordingly, the programme presented

belowconsistsoffourstandalonecomponents,oneforeachoftheparticipatingsectors,each

withitsownexecutingstructure,ledorfacilitatedbytherespectivecentralministryinchargeof

thesector.

Themost common issue cited bymunicipal leaders in relation to servicedelivery in specific

sectors (education,health care, social servicesetc)was the lackof financial resources.While

manyofthemayorshadsectorspecificprojectstheywishedtoimplementthelackofavailable

capitalhas

continuously

held

them

back.

Generating

more

funds

for

sector

specific

services

is

seenasthepriorityinthisfieldbythemayorswhoparticipatedintheconsultations.

Health management. A number of critical bottlenecks in local health service delivery were

identifiedbytheRoadmapexercise,including:

aneedforfargreateroperationalclarityondecentralisationmandates,bothforprimaryhealth(inallmunicipalities)and,inthecaseofminoritycommunities,secondaryhealth

care;

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poor intergovernmental coordination, dialogue, and technical support mechanisms.The MoH currently lacks an adequate mechanism to respond to ongoing technical

supportandadministrativecoordinationneedsofmunicipalgovernments;

insufficientmanagementcapacityofmunicipalhealthauthorities.Poorqualityof localhealth services, due to lax application of standards and norms, and a poor

understandingofpatientsrights;

lackofcitizenawarenessonrightsandentitlementsregardinghealthcare,handinhandwithnocitizenparticipationinplanningandmonitoringofmunicipalhealthservices.

Environmental planning and management. As in the case of the other three sectors, the

overriding concern that exists regarding the local delivery of environmental management

services centres around the incomplete intergovernmental normative and operational

frameworkthatcurrentlyexistsforthetransferandimplementationofcompetenciesinthis

area.Inaddition,thefollowingspecificissueshavebeenidentifiedforpriorityaction:

ambiguityregardingintergovernmentalresponsibilityforEIAs; inadequatemechanismsinMESPforoutreachandtechnicalassistancetomunicipalities; insufficientmunicipalcapacityto:(i)formulateenvironmentalpolicyand(ii)implement

theenvironmental

protection

law

and

the

environmental

components

of

municipal

developmentplans;

Weakness of local system of environmental inspection and control. Inefficiency ofsystemfortheenforcementoffinesandpenalties;riskofcorruptionofenvironmental

inspectors due to low salaries; ineffective mechanisms for controlling illegal

construction.

Socialservices.AsaresultoftheAhtisaariProposal,municipalitieshavebeenclearlymandated

to assume responsibility for delivery of social assistance (with the exception of pension

payments)andsocialservices.Thereislittleclaritybothatthemunicipalandcentrallevels

overhow to implement thismandate.Upuntilnow,MLSWhasmanaged theseservicesviaa

deconcentrateddelivery

mechanism

of

municipal

Social

Work

Centres.

The

task

of

transferring

managementoftheseCentrestothemunicipalitieswillrequirecarefulplanning,coupledwith

systematic followup technical assistance. The sorting out of delivery mechanisms between

municipalities and MLSW will be particularly challenging, since the services offered by the

current Centres include the pension payment system, which is slated to remain under

responsibilityofMLSW.Toaddressthe latter,aswiththeothersectors,there isastrongneed

forawellstructuredsystemof intergovernmentalcommunication,negotiation,and technical

supportinthesector.Inaddition,theworkinggroupforthissectoralsoidentifiedahighriskof

municipalfundinggaps,asaresultofthenewcompetenciesonsocialandfamilyservicesthat

couldseriouslycompromisethequalityoffutureservicedeliveryinthesector.

Community

Safety.

Unlike

the

previous

three

sectors,

it

should

be

noted

at

the

outset

that

the

management capacity of municipalities in the area of community safety is currently quite

advancedandestablishedthankstothelongstandingtechnicalassistanceeffortsonthepartof

OSCEandother internationaldonorstocreateastrong,reliablevoicefor localstakeholders in

themanagementandplanningofactivitiesrelatedtocitizensecurityandsafetyirrespectiveof

thefactthattheexplicitdesignationofmunicipalcompetenceoverthissectorwasonlymade

officialveryrecently(undertheAhtisaariProposalandtheLawonLocalSelfGovernment).On

the other hand, quite irrespective of progress made within municipalities, at the inter

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governmentallevelsimilarbottlenecksandweaknessesexistasintheothersectors.Specifically,

there isno comprehensivepolicy frameworkat thenational level, to guideandassistpolicy

makingandstrategicplanningatthe local level.Similarly,therearenostructuredmechanisms

forlocalnationaldialogueonmattersrelatedtothesector,orforspecific,ondemandtechnical

assistanceneedsofmunicipalities.

Components

Component1: Municipalhealthmanagement

Output1: Technicalassistance to facilitateajointworkinggroup,with representatives from

MoH and the municipalities, to formulate an Administrative Instruction on local

health care delivery, defining operational procedures and assignments of

responsibility, minimum standards (where still unclear), and resources for both

levelsofgovernment;

Output2: Technical assistance to MoH in setting up a permanent body that collaborates

closely with municipalities to support the effective implementation of primary

healthcare policies. Specifically, to: (i) respond to specific technical assistance

requestsby

municipalities;

(ii)

monitor

the

implementation

of

good

practices

in

all

municipalities and assist in improving any weak areas including data and

information systems through National Institute of Public Health; (iii) establish a

regular communicationmechanismwith theAssociation of KosovoMunicipalities

andotherrelevantstakeholders;

Output3: With the support of the MoH, formulation and implementation of technical

assistanceprogrammestomunicipalhealthauthorities,payingparticularattention

to procurement andmanagement functions visvis health care supplies, capital

investmentsandoperatingcosts;

Output4: Technical assistance to municipal health authorities to create mechanisms for

citizen informationandoutreachand, to localadvocacygroups, to informcitizens

onhealth

care

options

and

rights.

ApproximateBudget:

Component2: Environmentalplanningandmanagementatthelocallevel

Output1: Technicalassistance to facilitateajointworking group,with representatives from

MESP and themunicipalities, to formulate an Administrative Instruction on local

environmental management services, defining operational procedures and

assignmentsofresponsibility,minimumstandards,andresourcesforboth levelsof

government with particular attention to the assignment of responsibilities

regarding

EIAs;

Output2: Technical assistance to MESP in setting up a permanent body that collaborates

closelywithmunicipalities to: (i) provide respond to specific technical assistance

requestsbymunicipalities; (ii)monitorthe implementationofgoodpractices inall

municipalities;(iii)establishregularcommunicationmechanismwiththeAssociation

ofKosovoMunicipalitiesandotherrelevantstakeholders;

Output3: Technical assistance programme to strengthen environmental inspection

mechanisms including (i) casespecific evaluations and proposed solutions

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regarding numbers of inspectors and salary levels; (ii) improved system of

environmental fines and fee structure; (iii) strengthening system for processing

buildingpermitsandbuildinginspection.

ApproximateBudget:

Component3: Localdeliveryofsocialservices

Output1: Technicalassistance to facilitateajointworking group,with representatives from

MLSWand themunicipalities, to formulateanAdministrative Instructionon local

socialservicedelivery,definingdetailedoperationalproceduresandassignmentsof

responsibility,resourcesforbothlevelsofgovernment;

Output2: TechnicalassistancetoMLSWinsettingupapermanentbodythatcollaborateswith

municipalities to: (i)provide responses tospecific technicalassistance requestsby

municipalities; (ii) monitor the implementation of good practices in all

municipalities; (iii) establish a regular communication mechanism with the

AssociationofKosovoMunicipalitiesandotherrelevantstakeholders;

Output3:

Costing

of

municipal

mandates

in

the

sector,

including

for

monitoring

and

enforcing

minimumstandards,ensuringtheminimum levelofserviceprovisionandapplying

remedialactionasneeded.

ApproximateBudget:

Component4: Communitysafetyservices

Output1: TechnicalassistancetoMIAinsettingupapermanentbodythatcollaboratesclosely

withmunicipalities to: (i)provide respondtospecific technicalassistance requests

bymunicipalities;

(ii)

monitor

and

disseminate

the

implementation

of

good

practicesatthe local level;(iii)establisharegularcommunicationmechanismwith

theAssociationofKosovoMunicipalitiesandotherrelevantstakeholders;

Output2: Technical assistance to support (i) an intergovernmental policy debate, and (ii)

formulation, approval, and budgeting of a national policy and strategy for

communitysafety;

Output3: With the support of the MIA, technical assistance in the preparation and

implementationofmunicipalcommunitysafetystrategies(in linewiththenational

strategy) giving special attention to issues of citizen access and information,

fundingshortfalls,andspecialtrainingneeds.

ApproximateBudget:

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PublicPrivatePartnershipsinsupportofLocalEconomic

Development

ObjectivesWorking with three pilot municipalities: (i) strengthen municipal capacity to engage in

partnerships with the local private sector in local economic development programme

planning and project execution; and (ii) implement specific technical assistance projects

jointlyfundedandexecutedbythelocalpublicandprivatesectors.


3municipalitiesaspilotexecutors, inpartnershipwith localchambersofcommerce,with

directcoordinationsupportfromspecializeddonoragencies

Possibleadditionalsupport(inSteeringCommittee)from:

MinistryofFinanceandEconomy(MFE)

Ministryof

Local

Government

Administration

(MLGA)

NationalChamberofCommerce(NCC)


Given the critically high levels of unemployment that currently exist in Kosovo, particularly

amongyouthandminority communities, there isagrowing consensusbothat thenational

and local level thatbusinessdevelopmentwith ahigh contentofjob creation and income

generation must be given high priority by government. International experience has

demonstrated that one of the most effective ways of creatingjobs and generating income

opportunitiesfor

large

numbers

of

people

is

by

encouraging

the

development

of

micro,

small

and medium size enterprises at the local level otherwise known as Local Economic

Development. Inthepast, internationaldonorsandgovernmentcentralormunicipalhave

providedlittlesystematicsupporttolocalbusinessdevelopment,jobcreation,orlocaleconomic

planning. Inthecaseofmuncipalities,thishasbeencompoundedbyvery low levelsofcapital

investmentinlocaleconomicinfrastructure(especiallytransportationandcommunication),and

theabsenceofanexplicitlegalmandateformunicipalitiestoengageinthiskindofsupport.

Under the Ahtisaari Proposal and the recently approved Law on Local SelfGovernment,

municipalities in Kosovo have now been assigned an explicit mandate over local economic

development activity. This opens the door for municipalities, with the support of central

governmentand

international

donors,

to

take

on

amore

proactive

role.

By

partnering

up

with

their localbusiness sectorsmunicipal governments can improve the competitivenessof their

regional economies by supporting regional business clusters and supply chains, encouraging

innovation, eliminating infrastructure bottlenecks, promoting exports and market access,

regionalbrandnames,and strengthening the local labourmarketwitheffective technicaland

professionaleducation. Itshouldbenotedthatsomedonororganizationshaverecentlybegun

respondingtothischallenge,turningtheirattentiontowardsnewprogrammaticlinesoffunding

inlocaleconomicdevelopment,suchasisproposedbelow.

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Manyofthemayorsconsultedhavealreadyimplementedpublicprivatepartnershipschemesto

promote localeconomicdevelopment.Somemunicipalities,as in IstogandPrizren,havebuilt

industrialzonesofferingsitestolocalbusinessesatveryreasonable,andevensymbolic,prices.

Theseschemeshavemetwithconsiderablesuccesssofarandareencouraging.

In another innovative scheme to promote publicprivate partnership the mayor of Rahovec

instigatedataxamnestywherebyanybusinesswhoowedrevenuetothemunicipalitycouldhalf

theirbilliftheyagreedtopaywithinadesignatedtimeframe.Thiswasaquickwayofsecuring

considerablemunicipalfundswhilealsoallowingmanylocalbusinessestosaveinthelongterm.

Another classic example of effective publicprivate partnerships which emerged during the

consultationswas the collaboration betweenmunicipalities and local businesses on tourism.

Obviouslytourismholdsmassivepotential formanyruralmunicipalities inKosovoandseveral

municipaladministrationshaveseizedontourismasasortofproverbialgoldengoose.

Othermunicipalitieshavetriedtopromotepublicprivatepartnershipbyestablishingmunicipal

centresforbusinesspromotion.Shtime,SuharekeandPejahaveallestablishedsuchinstitutions

andreport

considerable

success.

Despitetheseencouragingsignsitisworthnotingthatmanymayorsmadeitclearthatthereis

stillasizeablegapbetweenmunicipalandprivatebusinessactivities.ThemayorofShtime, in

particular,referredtothefactthatbeforethewarprivatebusinesshadseenlocalgovernment

(Serbadministered)asanadversary.The legacyof thispassiveresistanceto localgovernment

seemstolingerinatleastafewmunicipalities.

Components

Component1: Strengthen municipal capacities to promote and support local economic

development

Output1: Technical assistance to undertake individual business development needs and

projectidentificationassessmentsinthreepilotmunicipalities;

Output2: Technical assistance to pilot municipalities and the local business sector in the

formulationofjointpublicprivatestrategiceconomicdevelopmentplans;technical

assistancetomunicipalitiesintheformulationofCapitalInvestmentPlans(CIP);

Output3: Based on the business development assessments (recommended above) create

matching grant funds to finance demanddriven projects presented by local

institutions (local business collectives; locally active technology or education

entities; or joint publicprivate ventures) in diverse sectors such as tourism,

cultural industry,agriculture,metallurgy,artisanrydependingonthecompetitive

advantages

of

each

region.

These

projects

would

aim

at:

a. Supportingstrategicallycriticalneedsoflocalbusinessclustersinareassuchas:ITdevelopment; technologicaldevelopment; regionalbranding; eliminationof

logistic bottlenecks; strengthening of supply chains. The latter can include

collaborative agreements between individual entrepreneurs and knowledge

institutions,suchasuniversitiesorinternationaltechnicalcentres;

b. Strengthening a regions pool of social capital that supports businessdevelopment andjob creation, and generating a greater appreciation for the

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benefits that can be gained from collective action. Encourage joint venture

initiativesbetweenprivateandpublicsectorstakeholdersaimedatimprovinga

regionscompetitivestandinginthelargernationalandinternationalmarkets;

c. Strengtheningjointprivatepublicinitiatives,betweenmunicipalitiesandcentralgovernmentagencies,ontheonehand,andthelocalbusinesssectorandother

localinstitutions,ontheother,aimedatimprovingthecompetitivenessoflocal,

regionaleconomies.

Output4: Technical assistance to bolster intermunicipal cooperation for economic

developmentofmicroormesoregions,facilitatingcollaborationonprojectdesign,

financing,orexecution.Suchprojectscouldsupportdiversesectors,suchastourism

promotion,jointventures inagricultureoragribusiness,andpooling resources to

developindustriesthatemploylocalresidents;

Output5: Technical assistance to organize vocational education in areas such as trade,

agriculture,entrepreneurship,industryandservicesintherespectivemunicipalities

thathaveatraditioninoneoftheseparticularareasandthensharethatknowledge

withothermunicipalities.

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Strengtheningmunicipalfinancesystemsfollowinguponthe

LawonLocalGovernmentFinance

Objective

The overall objective of this programme is to create the necessary capacities in five

municipalitiesfortheimplementationoftheLawonLocalGovernmentFinance,toenhance

theprocessoffiscaldecentralisationinKosovo.


MinistryofFinanceandEconomy(MFE)

MinistryofLocalGovernmentAdministration(MLGA)

AssociationofKosovoMunicipalities(AKM)


Inkeepingwith theAhtisaariProposalandtherecentlyapproved framework lawon localself

government,anewLawonLocalGovernmentFinance(LLGF) iscurrentlybeingdraftedwitha

viewtosignificantlystrengthenthefiscalautonomyandfinancialmanagementresponsibilities

ofmunicipalitiescommensuratetotheirnewcompetencies inservicedeliverywhileatthe

same time ensuring an effective framework for intergovernmental fiscal responsibility. The

current programme proposal is aimed at complementing the LLGF with a set of follow up

supportactivitiesinthreepriorityareas:

Localrevenuegenerationandmanagement:Taxcollection isamassivechallenge forKosovos

municipalitieswho receivemostof their funding from the central governmentwho, in turn,

receivethe

vast

majority

of

their

funding

from

the

international

community.

If