Why NGOs? Selected illustrations Eugen Jurzyca, INEKO, November 2012

Why NGOs? Motivation of politicians and administration versus NGOs: Long term projects (political cycle) Creativity Result oriented versus process oriented Problem identification in the interest of NGOs, not the other groups (problems without easy solutions) Examples: INEKO, BAS, but see also Hartz, NERV…

Why NGOs? INEKO portal on schools Comparisons among primary schools Comparisons among secondary schools Tests Unemployment of upper secondary schools graduates, including regional comparisons Financing School equipment, PCs… Number of teachers per student

Why NGOs?

Why NGOs? Portal motivates society so search better schools. What better teachers mean?

Why NGOs?

Why NGOs? Similar INEKO portal for municipal finances Both identify problems with complicated solutions NGO motivation as opposed to…

Why NGOs? Business Alliance of Slovakia Business environment index Universities, Ministry of Economy, Finance, BEI and Profits Labor legislation

Why NGOs? What politicians said The State Secretary of the Ministry of Labor, Social Affairs and Family of the Slovak Republic: “BAS considerably contributed to the Labor Code Revision by means of putting pressure on public opinion as well as through particular suggestions.”

Why NGOs? Out of the original 24 principal comments of BAS 16 have been taken into consideration in the present Labor Code that came into force as of 1 July 2003. Doing Business, The World Bank: The Labor Code Revision implemented in 2004 was assessed by the World Bank: “The trend in the last two decades is toward more flexibility... Last year continued the trend. Slovakia introduced the most far-reaching changes.”

Why NGOs?

Why NGOs?

Why NGOs?

Economic reforms

Why NGOs Why successful reforms were implemented in 2004, 2005, survey The difference in GDP between reformed and non reformed country “distributed” to the particular reforms (not “scientific”).

Why NGOs? I. Government reform Measures Weight of reforms by panel Benefit for one year Reforms with costs estimated Author’s costs estimation Reforms of first wave: Border opening, price liberalisation, privatisation 10 % 500 Privatisation and restructuring banks 7 % 350 0,15 Increasing transparency (e.g. Freedom of Information Act, public procurement) 3 % 150 0,03 Allowing foreign investors to participate in Slovak privatisation Tax reform (flat tax, unification of VAT rates) 21 % 1050 Labour market reform (Labour Code) 0,01 Pension reform 4 % 200 0,06 Health care reform 2 % 100 Others: Increasing reliability abroad, public finance reform, investment incentives, etc. 5 % 250 Management of the entry to EUROZONE Abolishing the marginal payments in health care system, changes in tax system... -1 % -50 EU entry 12 % 600 World economic boom Globalisation impact Majority of people in Slovakia is willing to work for low salaries Others: Geographic location, decrease of oil prices, weakening of USD, etc.. Total: 100,0% € 5000 mil. € 2250 mil. € 0,28 mil. 8000%

Why NGOs? Investment into business environment is extremely efficient, but difficult to organize Investment into social rules, as well. Although, it can be hardly estimated how much would comparisons of schools and identification of hidden municipal deficts bring.

Thank you for your attention Why NGOs? Thank you for your attention