NGO (and private) service providers - Projectisation versus outsourcing Sofia Consultations, July 2007 Working Group 3: Family Support Services

NGO (private) service providers – case of Bosnia and Herzegovina NGO (private) sector social protection service provision introduced through projects/international influence. NGO (private) sector social protection service provision introduced through projects/international influence. The mixed economy of welfare: from state and informal (family) to introducing NGO and private provision. The mixed economy of welfare: from state and informal (family) to introducing NGO and private provision. Projectisation still present and we are still not at the stage of the system outsourcing Projectisation still present and we are still not at the stage of the system outsourcing

Project example – Piloting of Child Protection System Reform at Central and Local Level in BiH (UNICEF, IBHI) Situation analysis/identification of child protection problems/needs Situation analysis/identification of child protection problems/needs Child protection system mapping Child protection system mapping Identification of gaps in the child protection system Identification of gaps in the child protection system Training of key actors Training of key actors Establishment of Municipal Management Boards (MMBs) Establishment of Municipal Management Boards (MMBs) Selection of priorities for intervention Selection of priorities for intervention Development of Municipal Action Plans (MAPs) Development of Municipal Action Plans (MAPs) MAPs implementation and monitoring MAPs implementation and monitoring Special Focused Projects (25 projects in 5 municipalities) Special Focused Projects (25 projects in 5 municipalities) Ensuring sustainability/budget allocations by municipality primarily Ensuring sustainability/budget allocations by municipality primarily

Special Focused Projects Purpose: i) to pilot services, ii) to meet the priority need identified Meeting a priority need through provision of service Meeting a priority need through provision of service Locally owned Locally owned Tender for delivering services for priority groups/interventions (at municipal level) Tender for delivering services for priority groups/interventions (at municipal level) Cooperation between state and NGO sectors and inter-sectoral cooperation a must Cooperation between state and NGO sectors and inter-sectoral cooperation a must Selection of the best service and awarding of grant (5 grants per municipality of approx. 7,500 EURO each) Selection of the best service and awarding of grant (5 grants per municipality of approx. 7,500 EURO each) Delivery and delivery monitoring (project implementer and MMB) Delivery and delivery monitoring (project implementer and MMB)

What is good about this model? Governmental – Non-governmental (private?) sector model of cooperation introduced and demonstrated (trust building) Governmental – Non-governmental (private?) sector model of cooperation introduced and demonstrated (trust building) Governmental sector given opportunity to outsource services and focus on its core function Governmental sector given opportunity to outsource services and focus on its core function Service provision opened to NGO/private sector Service provision opened to NGO/private sector Service providers can compete for provision of services in a transparent way/under the same conditions Service providers can compete for provision of services in a transparent way/under the same conditions

What is missing? Still project driven and not systemic Still project driven and not systemic Little control over services provided and users: type and content of service not controlled and no referral mechanism Little control over services provided and users: type and content of service not controlled and no referral mechanism Limited control over quality of service: no standards (what outcomes are they to achieve for the user) Limited control over quality of service: no standards (what outcomes are they to achieve for the user) The issue of scaling up and sustainability The issue of scaling up and sustainability

Moreover There is still mistrust between state/NGO sectors There is still mistrust between state/NGO sectors Governmental sector: Governmental sector: Engages NGO sector because donor insists Engages NGO sector because donor insists Sees NGO sector as non-transparent (funds, beneficiaries) Sees NGO sector as non-transparent (funds, beneficiaries) Does not see NGO sector as competent (no capacity to resolve the case; the case ends up with state services) Does not see NGO sector as competent (no capacity to resolve the case; the case ends up with state services) NGO sector: NGO sector: Sees governmental sector as without initiative, rigid, rule bound and bureaucratic Sees governmental sector as without initiative, rigid, rule bound and bureaucratic Does not necessarily see the need to engage with the governmental sector Does not necessarily see the need to engage with the governmental sector Sees themselves as independent Sees themselves as independent

The mixed economy of welfare framework The role of the state in services provision: The role of the state in services provision: Regulation Regulation Financing (but not solely) Financing (but not solely) Provision (to be kept to a minimum) Provision (to be kept to a minimum) Providers of services (NGO, private and state) compete for service provision Providers of services (NGO, private and state) compete for service provision

Some preconditions for closer cooperation between statutory bodies and service providers Some preconditions for closer cooperation between statutory bodies and service providers Trust and adequate understanding of their respective roles and the potential of working in collaboration Trust and adequate understanding of their respective roles and the potential of working in collaboration Funding for services provision existent within the system (currently project funding; allocation of funds for services within budgets; money follows client) Funding for services provision existent within the system (currently project funding; allocation of funds for services within budgets; money follows client) Legislative/regulative framework for outsourcing and opening this to NGO/private sector as service providers Legislative/regulative framework for outsourcing and opening this to NGO/private sector as service providers Existence of standards for services provision (outcomes expected for user; costing), licensing and accreditation, and monitoring of delivery Existence of standards for services provision (outcomes expected for user; costing), licensing and accreditation, and monitoring of delivery Identifying what is to be outsourced/planning of services required: which services, for how many users, over what period of time, etc. Identifying what is to be outsourced/planning of services required: which services, for how many users, over what period of time, etc. Existence of required services/service providers capacity Existence of required services/service providers capacity Tendering, contracts, MoUs, agreements, enabling standards Tendering, contracts, MoUs, agreements, enabling standards