Decentralization of Public Administration in Slovak Republic Barbora Milotová Department of Regional Development Faculty of European Studies and Regional Development Slovak Agricultural University in Nitra

Content Basic information about Slovak Republic Aim and functions of Public Administration Historical background of Public Administration Phased reform of Public Administration Changes in the structure of PA Changes in scope of powers of PA Main challenges

Slovak Republic Area: sq km Population: 5.4 million Pop. density: 110 per sq km Political system parliamental democracy Ethnicity of the population Slovak (86%) Hungarian (10%), Czech (1%), Romany, Rusyn, Ukrainian, Russian, German, Polish and others(3%) Terrain mountains in the central and northern part and lowlands in the south 0,51% of area 0,42% of inh. (80% of Nanjing)

GDP by sectors: agriculture: 3.2% industry: 28.2% services: 69.6% GDP per capita in PPS: $ GDP real growth rate: 6.2% Labor force: 2.2 million people Unemployment rate: 9.5%

Slovakia – rural country Referring to the OECD method, rural and semi-rural areas are covering 87% of Slovak territory with more than 86% of Slovak inhabitants living in settlements, of which (95.2%) are in predominantly rural or semi-rural areas and 138 urban settlements.

Administrative-territorial division Žilina Region Bratislava Region Trnava Region Trenčín Region Nitra Region Banská Bystrica RegionKošice Region Prešov Region

Aim of Public Administration To satisfy public needs and to implement public priorities within the aim to ensure balanced economic and social development of the whole society and to overcome the poverty Public sector provides public services that have a character of: Original public services related to basic function of the state (organization-legislative, security-protective) – collective needs for all nation to secure the running of the society and the state from the point of organization, legislation and institutional system (e.g. justice, police, army) Mixed public services, communal as well as individual, that can be provide either by private or public sector (e.g. education, social security, health services, technical and social infrastructure)

Functions of Public Administration To provide services in sufficient quantity and guality to all or to individuals who have special needs. These services are provided either for free or in form of fees or allowments Redistribution of central public resources to public institutions and funds that provide public services To design and implement policies in areas of: Health services, Social security, Education and culture, Research & Development, Technical and social infrustructure constraction, Protection of the environment

Historical background

Untill 1947 Origins of state administration in the territory of Slovakia go back to the 9 th century Origins of self-governance go back to 13 th century (towns) Changes during periods of various forms of monarchy and later Republic period from the territorial administration of aristocracy through monarchist administration system up to state authorities and institutions of the Czechoslovak Republic in 1918 Transfer of power from the regional self-government level to more centralized state administration 1923: Abolishment of self-government

1947 – 1990 – period of Czechoslovak Socialistic Republic Integrated model – integration of the state administration and self-government where local and regional self-government are the part of state administration (they had neither priorities nor own financial sources to implement decisions) 3 tiers of national committies : regional – district – municipality 1969: federalization – autonomy in mixed public services provision 1971: decentralization of central state power to the regional national committies in the field of economic development of the region

After 1989 fall of socialism transformation process to democratic system

Why reorganization of PA through decentralization? The main philosophy: „We are convinced that decentralized state brings the possibility for the better use of the human, production and natural potential of Slovakia for all citizens. It is the tool to change the point of view of Slovak citizens to the state; not to see the state just as the institution but as a commonwealth of citizens who have a common interest on its [the state] prosperity.” Viktor Nižňanský Commissioner of the Government of SR for the decentralization of Public Administration

Why reorganization of PA through decentralization? PRINCIPLE OF SUBSIDIARITY to solve the problems and make decisions on such levels that are the most capable for it Higher participation of citizens in the public administration To enhance the position and competencies of territorial self-governance

Phased reform of Public Administration Changes in the structure of Public Administration Phase 1990 – 1991 Phase 1996 – 2000 Phase 2000 – 2009 Changes in scope of powers in Public Administration 2000: Introduction the Concept of decentralization and modernization of the public administration 1. Decentralization of competencies ( ) 2. Deconcentration of competencies (2004) 3. Financial decentralization (2004)

Changes in the structure of Public Administration I. Phase 1990 – 1991 II. Phase 1996 – 2000 III. Phase 2000 – 2009

State administration Regional level Local level 3 regions 33 districts Before 1989 District and sub-district level

State administration Regional level Local level 3 regions 33 districts District and sub-district level I. Phase 1990 – districts 121 sub-districts Self-government 2825 municipalities

State administration Regional level Local level 8 regions 38 districts District and sub-district level II. Phase 1996 – districts 121 sub-districts Self-government 2883 municipalities

State administration Regional level Local level 8 regions 79 districts III. Phase 2000 – 2009 District and sub-district level Self-government 2891 municipalities 8 higher territorial units (HTU) sub-districts

Structure of Public Administration 8 Higher territorial units (HTU) 2891 municipalities Regional level Local level National level State public sector Self-government public sector Government Ministries Central State Administration Bodies network of offices of specialized state administration directly subordinated to ministries no relationship of superiority

Changes in scope of powers in Public Administration Concept of decentralization and modernization of the public administration 1. Decentralization of competencies ( ) 2. Deconcentration of competencies (2004) 3. Financial decentralization (2005)

1. Decentralization of competencies ( ) More than 400 competencies were transferred from state administration to self-governments (local, regional) Self-governments – Municipalities and higher territorial units (HTU) - legal entities Self-governance – is implemented through activities of elected bodies, citizens’ vote, local referendum and public assemblies

Municipalities and HTU bodies Citizens of the region Head of the HTU Office of the HTU Office units Assembly of the HTU Commissions Chief Auditor’s dept.

1. Decentralization of competencies ( ) Original = competencies given by the law Transferred state administration duties = competencies under the responsibility of state administration, but performed by the self- government Competencies

MUNICIPALITIESHIGHER TERRITORIAL UNITS Transferred state administration duties registry offices, the construction order and a section of duties in the education sector a section of powers in the education sector, healthcare sector and road transport Original powers Technical infrastructure maintenance and construction local roads, public areas, green areas, water management, sewer system, municipal waste 2nd and 3rd class roads Social infrastructure maintenance and construction housing, pre-school and school establishments, social establishments, policlinics, certain hospitals secondary schools, hospitals, certain social service establishments (retirement homes, social services for children, crises centres, children’s homes, etc.), cultural establishments (galleries, museums, theatres, certain libraries, etc.) Service provision public transport, cleanness, culture, certification of documents, certain offences, municipal police participation in civil defence, licensing of pharmacies and private physicians, territorial planning, local development, participation in regional planning, collection of local taxes and fees, nature and environment protection territorial planning, regional development, own investment activities

Main problems of decentralization Unclear competencies between HTUmunicipalities in specific areas of social welfare Due to small sizes and fragmentation of municipalities – threat of insufficient provision of duties

2. Deconcentration of competencies (2004) To increase of the efficiency and quality of management in state administration The transfer of more than 400 powers from the state administration to municipalities and higher territorial units  Abolishment of regional and district state administration offices  The network of offices of specialized state administration directly subordinated to ministries

2. Deconcentration of competencies (2004) The basic areas of state administration: creation of economic, regional (shared with municipalities and regions), foreign and security policies; defence, civil protection, fire brigade, justice, prison service, customs and currency affairs; tax offices (except for local taxes); labour and employment services offices; Technical infrastructure maintenance and construction: railways, motorway system, 1st class roads, airports (the responsibility for regional airports is shared with municipalities and regions); selected healthcare, cultural and school establishments (the responsibility is shared with municipalities and regions), universities; nature protection

2. Deconcentration of competencies (2004) Main problem: Overlapping of competencies between specialized local state administration and self-governments

3. Decentralization of finances (2005) Aims: To strengthen the independence and responsibility of territorial self-government in the process of decision- making on the use of public funds when providing services to people, The stabilization of self-government revenues over a longer period of time (tax reform, local taxes), To create conditions for financial planning for several years ahead (3-years budget plans), Introduction of a fair and transparent system of financing based on specific measurable criteria (introduction of programming budgeting).

3. Decentralization of finances (2005) Realized through tax reform: 1. Introduction of local taxes for municipalities and HTU property tax, dog tax, public area use tax, accommodation tax, slot machine tax, gaming machine tax, tax on entry of historical centers of towns and nuclear facility tax 2. Redistribution of personal income tax Using the formula according to their specifications Redistribution 6.2 % state budget revenue 70.3% revenues of municipalities 23.5% revenues of HTU

Summary Main changes in Public Administration were made since 2000 Regional level of self-government was introduced 400 duties were transferred from state administration to self-government To increase the efficiency and the quality of management of state administration the deconcentration of state administration was done Fiscal decentralization brought the independence to self-government and increased the efficiency and the quality of self-government

Nowadays challenges Fragmentation of municipalities Small size of municipalities Low efficiency of their management Process of municipalization (integration of municipalities) Number of inhabitans Number of mun. Share in % to ,6% ,8% ,2% ,0% above ,4% sum ,0%

Process of municipalization Possibilities Intercommunal communities Common municipality offices (until today 234) Syndicates and town communities How? 1. Voluntary integration of municipalities 2. Integration forced by law

Thank you for your attention! Barbora Milotová