Implementation of the Poverty Reduction Strategy in Serbia

1
Implementation of the Poverty Reduction Strategy
in Serbia

• Second National Conference on Poverty Reduction
• Bela Crkva, 20th September, 2006
• Ivana Dulic Markovic

2
Development Framework of Serbia

• Strategy of EU Accession

• Poverty Reduction Strategy for Serbia

• Public Administration Reform Strategy

• Sector strategies

3
Meanings of Big Words

• Transition
• Reforms
• Restructuring and privatization
• European Integrations process
• Poverty Reduction Strategy implementation process

• Building a more efficient and sustainable public
  sector and institutions
• Rule of law
• Sustainable economic growth based on the private
  sector development
• Poverty reduction

BETTER QUALITY OF LIFE OF THE POPULATION
4
Macroeconomic Indicators

• GDP growth (PRS envisages 4 - 5 annually)
• In 2003 ? 2.4
• In 2004 ? 8.6
• In 2005 ? 6.5
• Share of investments in GDP has increased (PRS
  envisages 25 by 2010)
• In 2001 ? 12
• In 2004 ? 18
• In 2005 ? 21
• GDP debt share has decreased
• In 2002 ? 78,6
• In 2004 ? 63,8
• In 2005 ? 56
• The share of private ownership in the
  privatization process increased to 75

5
Dynamic Economic Growth and Development

• Strengthening of the private sector and SME
  development
• Creation of stimulating institutional and
  legislative environment
• Improved access to information and
  business-related services
• Increase in available financial resources and
  their facilitated usage

• Results
• Facilitated registration of SME higher number
  of SME
• One stop shop service introduced
• Facilitated access to financial resources,
  special incentives for underdeveloped regions
• Increased allocations for SME loan support 50 m
  annually

6
Forthcoming Challenges

• Unfinished privatization and restructuring
  process
• Low productivity and competitiveness
• Economic growth is not in correlation with the
  employment growth
• Insufficient level of investments
• More intensive involvement of local
  self-governments in creating environment
  favorable for economic growth
• Removal of administrative obstacles for
  developing the private sector (Constitution
  Article not allowing private ownership over town
  building site)
• Strengthening the rule of law

7
Mitigating Transition Effects

• Creation of incentives for inflow of investments
  and opening of new jobs
• Creation of a flexible and competitive labor
  market
• Creation of efficient programmes of retraining
  and employment of redundant workers
• Subsidizing a part of employers expenditures for
  particularly vulnerable groups
• Introduction of new education profiles in line
  with labor market requirements

• Results
• Suggested fiscal measures for reducing the income
  contributions and income tax
• Stimulation of direct investments conducive to
  opening new jobs (2-10,000 per post)
• Support to employing persons with disabilities
  and opening of protection workshops (for 2003/05
  5mil allocated)
• Initiated the reform of secondary vocational
  education and 31 new profiles are introduced
• Easier access to loans

8
Forthcoming Challenges

• High unemployment rate
• Low labor force mobility
• High unemployment rate among youth and vulnerable
  groups. The unemployment rate of women is 27.4,
  men 17,6, youth (15 - 24 godine) 47,7
• Higher number of programmes for employing
  redundant workers, with emphasis on active
  employment measures

9
Access to Services

• Results
• Refugees and displaced persons involved in the
  system of material allowances
• Decreased number of children in institutions in
  regard to foster care (from 63 to 40 in the
  last two years)
• Designed specific health programmes for
  vulnerable groups
• Increased allocations for education from 3.6 to
  3.9 GDP

• Ensuring access to services for all citizens
• Social protection system reforms with further
  improvement of the system of material allowances
  and service decentralization
• Equal and fair access to quality health care
• Improvement of the education quality and
  introduction of inclusive education

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10
Forthcoming Challenges

• Transfer of children and adults from social
  residential institutions into families
  (de-institutionalization)
• Addressing the problems of children and adults
  without access to services due to the lack of
  personal documents
• The increase encompasses Roma children and
  children with special needs in education
• Better linkage of education with labor market
  needs
• Introduction of functional education of adults

11
Rural Development

• Results
• Established rural development support measures
• Constant increase of budget resources targeting
  rural dev. (2004 450 mil, 2006 4,000 mil)
• Over 5000 beneficiaries of resources for
  improving production and placement and some 1000
  beneficiaries for rural infrastructure
• Initiated (EU project) preparation of the
  National Rural Development Plan and establishment
  of regional RD agencies and Payment Administration

• Rural policy
• MARKET SUPPORT Removal of support to prices and
  payment per hectare, and replacement with input
  subsidies (reduction from 90 to 38)
• STRUCTURAL SUPPORT Introduction of material
  support for rural development and support to
  investment (25 of total support)
• CREDIT SUPPORT Introduction of CREDIT support
  (22)
• INCOME SUPPORT Significant income support (12)

12
Forthcoming Challenges

• Development of a rural payment system in line
  with the EU model
• Agricultural Payment Administration
• Central office
• Decentralized offices for rural payment
• National Rural Development Programme
• Preparation for an efficient usage of resources
  provided by the EC IPARD Fund
• Regionalization and establishment of rural
  development regions

13
National Investment Plan2006/07 ? 1.674 bill

• Sectors
• Education improvement
• Modernization of the health care system and
  environmental protection
• Transport infrastructure construction
• Economic development stimulation
• Housing construction
• Improving the standards of the population
• Improving the work of public administration

• Objectives
• Increased employment rate
• Sustainable economic growth
• Balanced regional development
• Improved infrastructure
• Decreased unemployment rate
• GDP increase per capita
• Improved education, culture and health care
  institutions
• Increased competitiveness
• Poverty Reduction Strategy implementation

14
Partnerships for Results

• National Assembly
• Government
• Local authorities
• International development partners
• Business sector
• Employers and trade unions
• Media

Poverty reduction and European Integrations for a
better quality of life of all Serbian citizens