1. The Urban Institute – a USAID Contractor CAPACITY BUILDING & JOINT SERVICE DELIVERY ZAGREB, 23 JANUARY 2006

2. The Urban Institute – a USAID Contractor I. JOINT SERVICE DELIVERY

3. The Urban Institute – a USAID Contractor IMPLICATIONS OF FRAGMENTATION Fragmentation is recent… –In 1990: 103 towns + City of Zagreb –In 2003: 124 towns + 426 municipalities  This is a 5-fold increase in the number of local units Many cases of separation due to perceived inequity : funds not equitably distributed within the territorial unit Amalgamation is not a viable option in the present context IF all LGs cannot provide same level of public services, how to ensure that Croatia’s citizens receive a basic level of service?

4. The Urban Institute – a USAID Contractor JOINT SERVICE DELIVERY in LEGAL FRAMEWORK Legal framework is permissive…”LG can cooperate to promote economic and social development of their communities” (Article 12, Law on Local and Regional Self-Government) As a voluntary system, the framework enables cooperating LGs to find best possible options There are (almost) no incentives to encourage cooperation –Such incentives exist in Hungary, France There is no obligation to cooperate –Such requirements exist in Hungary, France Thus, the framework hinders cooperation in difficult contexts (personal, political relations, lack of trust…)

5. The Urban Institute – a USAID Contractor JOINT SERVICE DELIVERY in PRACTICE Who is cooperatingService providedMeans of cooperation Rijeka + its ring (8 LGs) Water supply and wastewater treatment -Joint ownership of water company -Rijeka is founder Krk Island “Coordination” (7 LGs) Water/wastewater Kindergartens Fire-fighting Joint ownership Contracting out Zadarska county Ugljan island (3 LGs) EU CARDS 2002 funds Multi-media center Promote extension of tourist season Agreement among LGs for co-financing share, activities to organize Slunj and neighboring municipalities (7 LGs) Regional development project Cooperative / informal Contract between each LG and the project developer

6. The Urban Institute – a USAID Contractor JOINT SERVICE DELIVERY – KEY FINDINGS (1) Role of the Center City –Prior networks still exist (transport, water, wastewater), they have become an organizing principle –Jointly owned communal service enterprises Role of the Active Mayor / Leader –Cooperation needs a champion –Cooperation needs a long view, see beyond immediate local concerns Role of the County –Positive role (encouraging cooperation) or passive role –Regional Operational Programs (ROPs) –Environmental management (landfills) –Tourism development strategies –Tapping in to EU accession funds

7. The Urban Institute – a USAID Contractor JOINT SERVICE DELIVERY – KEY FINDINGS (2) Availability of Financing can encourage LG cooperation Role of EU Accession Funds –CARDS, cross-border cooperation mechanisms –Border area local governments can observe experience of new EU members first-hand (Slovenia, Hungary) –Capacity-building and experience will be important –Counties can also play an enabling / assistance role Regional Development Fund –Priority given to projects which involve 2 or more LGs

8. The Urban Institute – a USAID Contractor UNDERSTANDING AND PROMOTING COOPERATION Legal framework is not an immediate issue or barrier Disseminate information and experiences –What can LG gain, what are the advantages of cooperation? –What do LG risk to lose by not engaging in cooperation? –What key issues to take account of in the development of cooperation (roles, responsibilities, financing, types of agreements, formal or informal cooperation)? –What are the advantages and disadvantages of informal type cooperation structures? Of more formalized cooperation structures? Promote the role of the county in LG cooperation Establish a LG cooperation “observatory”

9. The Urban Institute – a USAID Contractor II. CAPACITY BUILDING

10. The Urban Institute – a USAID Contractor WHY DECENTRALIZE? local decisions will lead to the quantity, quality, cost and mix of services that most closely match local needs and preferences

11. The Urban Institute – a USAID Contractor FRAGMENTATION AND CAPACITY BUILDING Knowledge and process are meaningful ONLY if they lead to tangible results that are valued by the local community Is process part of a broader approach to implement participatory, transparent and accountable local governance? Any process of capacity-building should focus not only on large cities but also on the small towns and the municipalities

12. The Urban Institute – a USAID Contractor CAPACITY BUILDING : EXAMPLES (1) 1.Asset Management in Split –Inventory of city property well advanced and making good progress –Information is now transparent and structured –Properties which have been identified so far include: 969 apartments: value of € 36.5 mn 994 business premises: value of € 108 mn Indirect subsidies to users : € 1.4 mn –Future potential to reduce asset management costs / increase revenues

13. The Urban Institute – a USAID Contractor CAPACITY BUILDING : EXAMPLES (2) 2. Information management : E-Government –By end December 2005, already in active use in 44 LGs in Croatia –By end March 2006, a further 11 LGs will start up e-government services –Three key objectives: Internal business and administrative activities (Intranet) Service provision to citizens: real-time internet based (such as “one- stop shop”, business activity guide) Development of citizen participation in local governance (ex. real-time Internet broadcast of city council meetings in Osijek)

14. The Urban Institute – a USAID Contractor CAPACITY BUILDING : EXAMPLES (3) 3.Economic Development Strategic Plan in Vojnić (pop. 5490) –Prepared in cooperation between LG, business community, civil society and adopted in December 2003 –Implementation of EDSP since 2004 includes: Adopting of zoning (urban) plan Developing a 4-year capital improvement plan (CIP) Using EDSP & CIP to obtain funding for several projects –Water distribution infrastructure (European Investment Bank) –Documentation for solid waste disposal site –Construction of a nursing home Establishing SME credit fund with county government

15. The Urban Institute – a USAID Contractor CAPACITY BUILDING : EXAMPLES (4) 4. Communicating with Citizens – Citizen participation task forces –Majur municipality (1,500 pop.) : Newsletter on LG activities / organization Survey of 600 households on public services and fees Survey results announced at public hearing –Sunja municipality Distributed 1,000 copies of 16-page newsletter to neighborhoods and posted in public spaces –Hrvatska Dubica municipality Developed a brochure including basic information on municipal programs, municipal budget, services, investments –Zabok City Held sessions of the City council in various neighborhoods of the city Issue local newsletter 6-7 times / year, 3,000 copies distributed Public discussion on plans for detailed zoning plan for new center of Zabok

16. The Urban Institute – a USAID Contractor DECENTRALIZATION AND PUBLIC SERVICE DELIVERY There are active, knowledgeable and inspired local leaders who are seeking to improve public service delivery in their communities Capacity, like financial resources, is unevenly distributed As reform moves forward, learn from and adapt what works (there are already plenty of successful Croatian examples) Understand (and avoid) what doesn’t work Share experiences, successful LGs can become mentors