Marek Brenčič, Slovak MFA Romanian Development Camp, September 2009

European Transition Compendium Useful instrument for: EU coordination, internal coordination, cooperation with countries in transition Financial means should be available?

Development of Slovakia – success story 1.Economic transition to a market – based economy 2.Political transition to a democratic state 3.Social transition to a social market economy - decrease of unemployment 4.Sharing of transformation know-how – Slovak Aid (2002-) – OECD, EU

: Early transition within Czechoslovakia Deep transition recession during , Swift privatisation along three fronts (restitution, small-scale privatisation, voucher privatisation), Price liberalization, Peaceful break-up of Czechoslovakia in a negotiated way and with strenuous attempts by both sides to minimize any economic fall- out.

: Independence and the stalled transition On January 1, 1993 foundation of the independent Slovak Republic, New currency, split of the monetary union, Building a strong civil society – sharing experiences, e.g. in Serbia, sharing election monitoring experiences in Eastern Europe

: Initial reforms and cleaning up the economy Floating exchange rate, Restored macroeconomic stability, Restructuralization and privatization of the banking sector, Restrictive fiscal policy measures, OECD Member (2000).

2002- : Completing the transition – structural reform and EU accession Reforms in many areas (pension reform, social insurance, labour market), creation of business-friendly environment, Public finance reform (incl. tax reform), Entry to the European Union, NATO, ERM II, Euro area, Accelerating economic growth (10,4% in 2008).

Basic rules for the provision and evaluation Act on ODA (2008), draft Act on grants Slovak Agency for International Development Cooperation (2007) Project Committee Coordination Committee Mid-term strategy : - aid effectiveness, - coherence and - flexibility

Slovak Aid Territorial Priorities Programme countries (3) Afganistan, Kenya, Serbia – (CSP) – Project countries – (16) Albania, Belarus, Bosnia and Herzegovina, Montenegro, Ethiopia, Georgia, Kazakhstan, Kyrgyzstan, Macedonia (FYR), Moldova, Mongolia, Sudan, Tajikistan, Ukraine, Uzbekistan and Vietnam

Why the Western Balkans and greater focus on Eastern dimension?  Ability to offer added value – transformation of know-how  Historical links, experience, knowledge  Language and cultural closeness  Bratislava process – Bratislava-Beograde Fund  Diplomacy (M. Lajčák, M. Mojžita, E. Kukan)

Sectoral Priorities of Slovak Development Assistance A. Building of democratic institutions, the rule of law, civic society and peace B. Social development C. Economic development, building of market environment, strengthening of macroeconomic environment, public finance management, support to small and medium-sized enterprises D. Infrastructure development with a positive impact on sustainable development and environmental protection

What else? CSP for Serbia and Montenegro  Assistance in the integration in the international organizations and groupings with special attention to the EU  Civil society development  Restoration and rehabilitation of the infrastructure

Key partners  CIDA – cofinancing 31 projects  ADA –cofinancing projects in Serbia, Kenya and Etiopia  UNDP Regional Centre in Bratislava – assists in capacity and institutional building  EC – linking Slovak ODA with EC financial tools, formulation of common development policy, compendium  OECD/DAC  EU member states – SIDA, V4 etc.

Thank You for Your Attention Contact Department of Development Cooperation Ministry of Foreign Affairs Hlboká 2, Bratislava Slovak Republic phone (02) fax (02) web

Elementary school in Afghanistan

Projects of Slovak Aid in Kenya

„Building bridges“ with Serbia and Montenegro

Regional development Local heating system in Kikinda Serbia and Montenegro