PRS implementation in Serbia Deputy Prime Minister’s Poverty Reduction Strategy Implementation Focal Point Aleksandra Jovic, Team Manager

Development Framework of Serbia Strategy of EU Accession Poverty Reduction Strategy for Serbia Public Administration Reform Strategy Sector strategies

Poverty Reduction Strategy Multisectoral strategy of socio-economic development Multisectoral strategy of socio-economic development Complementary goals with EI process and EU Social Inclusion Agenda Complementary goals with EI process and EU Social Inclusion Agenda Aligned with UN MDGs – MDG’s as benchmarks in the implementation process Aligned with UN MDGs – MDG’s as benchmarks in the implementation process Key pillars Key pillars Dynamic economic growth with equity; emphasis on private sector development and job creation Dynamic economic growth with equity; emphasis on private sector development and job creation Prevention of new poverty as a consequence of economic reforms Prevention of new poverty as a consequence of economic reforms Maintenance and improvement of social safety net for the traditionally poor and vulnerable groups Maintenance and improvement of social safety net for the traditionally poor and vulnerable groups

PRS Implementation Principles Mainstream poverty alleviation into day-to-day activities and regular programming of all stakeholders Mainstream poverty alleviation into day-to-day activities and regular programming of all stakeholders Ensure linking the PRS with other Serbia’s development priorities primarily EI process Ensure linking the PRS with other Serbia’s development priorities primarily EI process Strong emphasis on local level implementation Strong emphasis on local level implementation Build partnerships to ensure synergy and maintain national ownership Build partnerships to ensure synergy and maintain national ownership

Progress in PRS Implementation - Mainstreaming - PRS priorities integrated in plans and budgets - 75% of consolidated expenditures PRS priorities integrated in plans and budgets - 75% of consolidated expenditures National Investment Plan based on the PRS priorities National Investment Plan based on the PRS priorities European Commission MIPD document recognizes PRS as complementary with EI. Stresses EU support for PRS implementation at the local level European Commission MIPD document recognizes PRS as complementary with EI. Stresses EU support for PRS implementation at the local level Key international donors support PRS implementation (EC/EAR, WB, DFID, USAID, NOR, SIDA) Key international donors support PRS implementation (EC/EAR, WB, DFID, USAID, NOR, SIDA)

Progress in PRS Implementation - participation and ownership - Parliamentary Forum for PRS implementation Parliamentary Forum for PRS implementation Civil society Focal Points Civil society Focal Points Local level planning and implementation Local level planning and implementation →87% municipalities has some kind of the strategic plan →65% of the local plans contains PRS recommendations

Setting indicators Optimization of the existing data and PRS indicatorsOptimization of the existing data and PRS indicators Introducing social inclusion indicatorsIntroducing social inclusion indicators Data collection – RSO capacities improved Assumed responsibility for reporting on poverty statistics using Household Budget Survey as of 2006Assumed responsibility for reporting on poverty statistics using Household Budget Survey as of 2006 Living Standard Measurement Survey in May 2007 – comparable with 2002/ basis for impact assessment and policy revision processLiving Standard Measurement Survey in May 2007 – comparable with 2002/ basis for impact assessment and policy revision processReporting Annual Report of the GoSAnnual Report of the GoS 2nd Progress Report on the PRS implementation2nd Progress Report on the PRS implementation Progress in PRS Implementation - statistical base -

In 2003, 10.6% of poor (LSMS) In 2003, 10.6% of poor (LSMS) In 2006, 8.8% of poor (HBS) In 2006, 8.8% of poor (HBS) Economic growth 6.2%5.7% Inflation rate 17.7%6.6% FDI 1.25 bill € 4.08 bill € Current account balance mill € € Total employment Progress in PRS Implementation - main indicators -

Challenges in implementing national strategies/priorities Policy directions come from various strategic documents Policy directions come from various strategic documents Lack of capacity for planning, implementation and monitoring across Government Lack of capacity for planning, implementation and monitoring across Government Weak link between policies and resources (budget and international assistance) Weak link between policies and resources (budget and international assistance) Weak central policy coordination Weak central policy coordination Introduce integrated system of planning, budgeting, monitoring and reporting Improve the way GoS work by increasing accountability and transparency

Integrated system of planning, budgeting, monitoring and reporting GOP planning process at the level of line ministries (17 LMs in 2008)GOP planning process at the level of line ministries (17 LMs in 2008) →GOPs as 3-year planning documents reflecting policy priorities with detailed budget for 1 year →Consolidates national and sector strategies Budgeting based on programmatic classificationBudgeting based on programmatic classification →Shift focus from input to outcome →Piloted in 5 Line Ministries in 2007 Programming of international assistanceProgramming of international assistance Monitoring and reporting - PRS, MDG and social inclusion indicators integrated in GOPMonitoring and reporting - PRS, MDG and social inclusion indicators integrated in GOP

Key messages for the future… Strengthen link with EIp – stronger focus on social inclusion Strengthen link with EIp – stronger focus on social inclusion Review impact and update pro-poor policies Review impact and update pro-poor policies Bring national strategies into one consolidated national strategic framework Bring national strategies into one consolidated national strategic framework Maintain strong national ownership Maintain strong national ownership Continue building effective financial planning and implementation system Continue building effective financial planning and implementation system

Contacts Government of Serbia Deputy Prime Minister’s Poverty Reduction Strategy Implementation Focal Point Address: Nemanjina 11/ Room Belgrade, Serbia Phone: