Evaluation of the Public Works Program in Serbia in the Period 2008-09 Branka Andjelkovic and Pavle Golicin Brussels, Belgium, December 14-15, 2010

Summary Definition of public works and international experience, Findings of the assessment, Recommendations for improvement of public works program in Serbia.

Starting dilemma To what extent policy-makers should rely on active labor market measures (ALMPs)? Nothing but the waste of funds or useful instrument for improving labor market and helping vulnerable groups?

Definition of public works Originally designed to increase labor demand as a counter-cyclical instrument; With time became mostly focused on low-qualified, long-term unemployed; Also serve as a short-term poverty intervention; Often used in the period of crisis to provide source of income to poor households by creating temporary jobs.

International experience Relevant impact evaluations (Betcherman, Kluve, Kuddo, etc) confirm that positive economic and labor market effects, if any, are mostly limited to the period of program; However, capable of protecting poor from income shocks; Subjective feeling of participants should not be forgotten either (Bonin and Rinne); Besides, creating useful public goods or services for local communities.

Public works program in Serbia Implementation started in 2006; Financial resources as well as number of beneficiaries constantly increasing since then; Government focused on public works in 2009 in an attempt to respond to challenges of the global financial crisis.

Calls for proposals 2008-09 Priorities, Activities, Contractors, Purpose of funds, Selection of projects.

Implementation of program – priority groups Level of education – the only characteristic followed by the Employment Service. Non-qualified workers had highest percentage (app. 60% in 2008 and 2009), followed by workers with secondary education. Men twice as represented as women; young significantly more than older workers. Only every 10th beneficiary was PWD, IDP, Roma or MOP user.

Implementation of program – activities Most projects focused on environmental protection, followed by humanitarian/social field and public infrastructure in both years. Irrespectively of type of activities, motivation of people was lower during agricultural season. Public works in social field attracted a lot of attention as a new type not present before in Serbia.

Implementation of program – contractors Contracts mostly won by public companies (286 out of 396 projects in 2009). CSOs were among the second largest group. Private companies were almost entirely absent. However, public companies and CSOs have limited employment capacity – the former are still banned to employ, the later operate and employ on project basis.

Recommendations Public works in Serbia are half way between social assistance and labor market program: In case that poverty reduction is primary aim, program should be tied more strongly to vulnerable and poor, but can work. In other case, different selection criteria for participating municipalities and contractors should be considered.

Thank you! CENTER. Public Policy Research Centre Branka Andjelkovic E-mail: branka_andjelkovic@hks11.harvard.edu Pavle Golicin E-mail: pavlegolicin@hotmail.com