1. Decentralization Survey 2009 osce.org/skopje

2. General Status of the Decentralization Process Progress in Public Administration Reform at Municipal Level Decision-Making Process in the Municipal Councils Status of Local Economic Development Progress in Fiscal Decentralization Status of Inter-ethnic Relations Achievements in Education Reform osce.org/skopje Contents

3. Questionnaires sent by OSCE to all - mayors - municipal administration - municipal councils Answers received from 69 municipalities (81.17 %) Opinion poll conducted by Brima Gallup-Skopje among 1,547 citizens countrywide osce.org/skopje Methodology

4. 4 Implementation and Financing of Municipal Competencies

5. 5  Local government revenues 88% higher in 2008  Share of local government expenditures on GDP: 4.7% in 2008 (2.9% in 2007)  17 municipalities still in the first phase of fiscal decentralization  Fiscal disparities: revenues per capita (2008) >Skopje-Centar: 10,217 Denars >Plasnica: 416 Denars Implementation and Financing of Municipal Competencies

6. 6 Municipal Survey

7. 7 Implementation and Financing of Municipal Competencies Activities undertaken by the Municipalities to further Local Economic Development in 2008

8. 8 Anticipated problems in the implementation of competencies  Lack of financial resources  Lack of qualified staff  Unclear legislative provisions  Insufficient assistance from the central government Implementation and Financing of Municipal Competencies

9. 9 Recommendations  Revise the revenue redistribution allowing for a more equitable service delivery  Increase the share of municipal revenues  Encourage inter-municipal cooperation  Further local economic development – PPP as an avenue for reducing unemployment  Coordinate donor assistance in the area of decentralization  Promote transparency and accountability of local authorities towards citizens Implementation and Financing of Municipal Competencies

10. 10 Professionalisation of Municipal Administration

11. 11 Professionalisation of Municipal Administration Equitable Representation  47 municipalities comply with the requirements.  16 muncipalities do not comply due lack of qualified staff among underrepresented ethnic groups.

12. 12 Professionalisation of Municipal Administration Staff changes in the municipal administration Before the 2009 ElectionsAfter the 2009 Elections Total number2,8072,833 Civil servants1,2001,230

13. 13 Professionalisation of Municipal Administration Citizens’ opinion about their municipal administration

14. 14 Professionalisation of Municipal Administration  70% believed that employment was politically motivated.  Almost half believed that corruption existed in their municipalities. Citizens’ perception about the municipal administration

15. 15 Measures to be undertaken to professionalize municipalities Professionalisation of Municipal Administration

16. 16 Professionalisation of Municipal Administration Recommendations  Standardize employment procedures: recruitment, dismissal, promotion, retirement  Invest in staff training and staff qualification  Take measures to prevent and fight corruption

17. 17 Citizens’ Participation

18. 18 Citizens’ Participation Informed citizen  74% of the citizens are not informed about the decisions taken by the municipal councils.

19. 19 Citizens’ Participation Informed citizen  50% of the citizens do not know from which sources their municipalities are financed.  More than 60% of the informed citizens were not willing to pay more.

20. 20 Citizens’ Participation Citizens’ communication with the municipal administration

21. 21 Citizens’ Participation Participatory budgeting  36 out of 69 municipalities organized up to 10 meetings with their citizens.  13 municipalities held more than 10 meetings.

22. 22 Citizens’ Participation Committees for Inter- Community Relations  Established in 19 out of 20 municipalities that are required to do so.

23. 23 Recommendations  Undertake further efforts to improve communication with the citizens >Reach out to the citizens through the media >Organise citizen gatherings (e.g. for each stage of the budgeting process and throughout the fiscal year)  Encourage the Committees for Inter-Community Relations to take up their role as advisory body to the municipal decision makers Citizens’ Participation

24. Decentralization Survey 2009 osce.org/skopje