LOCAL DEVELOPMENT IN THE CONTEXT OF THE LOCAL GOVERNMENT REFORM PROJECT, CROATIA

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LOCAL DEVELOPMENT IN THE CONTEXT OF THE LOCAL
GOVERNMENT REFORM PROJECT, CROATIA
USAID/UI Project
prepared by marija raos

LGRPs objective is to introduce a modern system
of public administration management in local
governments throughout Croatia. LGRP is funded by
the USAID, and is implemented in Croatia by the
Urban Institute (UI), a non-profit research and
policy organization based in Washington, DC.
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LOCAL GOVERNMENT REFORM PROJECT

• About LGRP
• Partners in the Project
• Partner Local Governments
• Two stages of the LGRP
• Stage 1 2000-2004
• Stage 2 2004-2007
• Public opinion
• research results,
• May 2004

• NITs experience
• What was our part in LGRP?
• What have we experienced?
• EDSP Based On Community
• What will be the next?

The Urban Institute United States Agency for
International Development
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About LGRP

• The Local Government Reform Project (LGRP) began
  its activities related to local government reform
  in Croatia in 2000.
• The purpose of the Project is to support
  decentralization and build the managerial and
  administrative capacity of local governments in
  preparation for Croatias accession in the
  European Union.
• The Project runs through October 2007.

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LGRP (cont)

• financed by the United States Agency for
  International Development (USAID)
• provides technical assistance to local
  governments in Croatia with the objective of
  strengthening local governments' ability to
  address citizens' needs more efficiently and
  provide more transparency and accountability in
  local affairs

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Partner Institutions

• The Project works with many international and
  domestic organizations and institutions,
  including the Central State Office for Public
  Administration, the Parliamentary Committee for
  Local and Regional Self-government, the Croatian
  Association of Cities and Municipalities, the
  Economics Institute, the Institute of Public
  Finance, the European Commission delegation to
  Croatia, the World Bank, UNDP, the Open Society
  Institute and others.

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Partner Local Governments

• To date, LGRP has contacted and visited 47 local
  governments of various sizes - from small
  municipalities with a population of 1,050 to
  large cities with a population of over 300,000 -
  to acquaint them with LGRP's work areas and to
  invite them to become LGPR partner local
  governments.
• Each local government that has agreed to
  collaborate with LGRP has signed a Memorandum of
  Understanding (MoU) with USAID, expressing their
  willingness to cooperate on the implementation of
  the one or more of the management models.
• RESULT the Project has established partnerships
  with 47 cities and municipalities in Croatia (so
  far).

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Partner Local Governments (cont.)

• As the MoUs are negotiated and signed, LGRP
  technical staff begin working with their
  counterparts in partner local governments to
  create task forces and conduct orientation
  workshops.
• In addition, about 200 Croatian cities and
  municipalities are currently participating in
  LGRP's Cost-Share Program, which was initiated in
  2003 and continues through 2004-2006. (March 2005
  was the deadline for submission of contracts
  between consultants and local governments.)
• Under the Cost-Share Program, the LGRP and the
  local government jointly cover the labour costs
  of contracting LGRP-trained consultants to work
  with local governments.

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Map of Croatia Showing Partner Local Governments
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Two Stages of the Project

• 2000 2004
• 2004 2007

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1st stage of the LGRP

• FIVE MANAGEMENT MODELS
• THE PILOT-CITIES
• RIJEKA, CRIKVENICA, VARADIN, BJELOVAR,
  OSIJEK
• TRAINING OF CONSULTANTS FOR LOCAL GOVERNMENTS
• THE COST-SHARE PROGRAM, 2003
• HUKON

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FIVE MANAGEMENT MODELS

• AM Asset Management
• CP Citizen Participation
• ED Economic Development
• FM Financial Management
• IM Information Management

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Economic Development

• This model addresses local economic development
  from a community perspective by bringing local
  government, business leaders, and civic leaders
  together to forge and pursue a shared vision of a
  communitys economic potential and how to achieve
  it, resulting in development of Economic
  Development Strategic Plan, implementation of
  which is monitored and updated local entity.

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Citizen Participation

• This model enhances the participation of citizens
  in local government decision making as a tool for
  better resource allocation.
• It introduces a systematic approach for local
  governments to effectively communicate with
  citizens and to promote civic initiatives,
  resulting in better management, creating
  partnership and improvement of services.

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All models have been designed to help local
governments provide better public services more
efficiently and effectively. This is a multi-year
effort to introduce modern public administration
practices to many of Croatia's 550 local
governments.
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Pilot - cities

• ED gtRijeka http//www.rijeka.hr/
• Varadin http//www.varazdin.hr/index.h
  tml
• PP gtCrikvenica http//www.crikvenica.hr/index.a
  sp
• IM gtOsijek http//www.osijek.hr/
• FM gtBjelovar http//www.bjelovar.hr/
• AM gt Varadin

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What is the Cost-Share Program (CSP)?

• For local governments that don't have partner
  status on the Project, LGRP provides co-financing
  of the implementation of the five management
  models.

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Cost-Share Program (cont.)

• LGRP initiated its Cost-Share Program in 2003
• During 2003, 73 local and regional governments
  successfully implemented LGRP's management models
  with the assistance of LGRP-trained local
  government consultants, supported through the
  Cost-Share Program.
• Those Local governments who want to participate
  in the Cost-Share Program should contact
  LGRP-trained consultants. Under Cost-Share
  Program, LGRP-trained consultants implement
  modern management models in interested local
  governments.
• The consultants are not employees of UI and do
  not represent UI/Croatia.

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CSP 2003

• The List of Cost-Share Program 2003 Participants
  offers detailed list of all the local governments
  who participated in LGRP' Cost-Share Program in
  2003, as well as information about the type of
  assistance they have received.
• Please, take a look at
• http//www.urban-institute.hr/default.asp?ru143
  gl200502020000001sidjezik2

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CSP 2003 - conclusion

• A total of 73 local governments have taken part
  in the CSP 2003, out of which 27 cities, 42
  municipalities and 3 counties. In this way, the
  Project has directly influenced and improved the
  quality of life of more than one million citizens
  of Croatia.
• The list of LGRP consultants with their contact
  details
• http//www.urban-institute.hr/default.asp?ru144
  sidjezik2

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Association of consultants

• As an adjunct to the ToC, LGRP also promoted and
  nurtured the establishment of an Association of
  Local Government Consultants (as an umbrella
  association of LGRP-trained consultants in all
  management models) - HUKON (Croatian Association
  of Local and Regional Government Consultants).

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Association of consultants

• LGRP supports the creation of such an Association
  with hopes of it promoting the establishment of a
  viable consultancy market in Croatia to address
  public administration reforms in local
  governments.

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Croatian Association of Local and Regional
Self-Government Consultants (HUKON)

• is a voluntary, non-profit, professional
  organization with goal of affirmation and
  improvement of consulting services in local and
  regional self-governments
• Its founders are consultants, trained by the
  USAID's Local Government Reform Project,
  implemented by the Urban Institute (non-profit,
  Washington-based think-tank) in cooperation with
  the Government of the Republic of Croatia.
• Code of Ethics, Quality Standards

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2nd stage of the LGRP improving LG management
2004 - 2007

• SUPPORT NATIONAL POLICY DIALOGUE AND REFORM
• STRENGTHEN ADVOCACY OF LOCAL GOVERNMENT INTERESTS
• PROVIDE DIRECT TECHNICAL ASSISTANCE TO 65 CITIES
  AND MUNICIPALITIES LGRP
• DEVELOP A MARKET FOR LOCAL GOVERNMENT CONSULTING
  SERVICES
• CONDUCT TRAINING EVENTS, University Public
  Administration Programs

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Croatian Association of Towns and Municipalities

• Hrvatski savez gradova i opcina
• Udruga gradova (Association of Towns)
• Udruga opcina (Association of Municipalities)
• Projects and programs
• Benchmark
• The best practice
• Councilors education
• Good governance
• International cooperation
• Croatian InfoLoc System
• Newsletter
• http//www.savez-gradova-opcina-rh.hr/

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New management models

• Four new management models
• Investment Project Packaging (IPP),
• Performance Measurement (PM),
• Procurement Process (PP), and
• Organizational Development (OD).

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New models of the LGRP (cont)

• OD Model as the ninth model of local government
  management focuses on improving the
  organizational structure of local governments,
  which in turn will help facilitate the
  implementation of the other management models.

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New models development

• Performance Measurement (Split, Crikvenica,
  Glina)
• Investment Project Packaging (Novska, Koprivnica,
  Crikvenica)
• Procurement Practices(Pakrac, Hrvatska
  Kostanica, Bejlovar)
• Organizational Development (Slatina)

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Develop a market for LG consulting services

• LGRP has already trained 100 local consultants.
• Under CSP in 2003, the work of local consultants
  is being monitored and evaluated, and they
  receive technical support and additional training
  from LGRP staff.

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Develop a market for LG consulting services (cont)

• The second phase of the Cost Share Program (from
  May 2004 until April 2006), is expected to
  support model implementation in about 90
  additional local governments.

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Cost-Share Program 2004 2006 (cont)

• Though under the first phase of the Cost-Share
  Program, the LGRP covered up to 80 of the total
  labor cost of a consultant for their work with
  the local government, the second phase (2004 -
  2006) of the CSP covers an average of 50 of the
  total labor cost - this change in labor cost
  subsidy for local governments did not lessen
  their interest in the Program.

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Models Represented Under the Cost-Share Program
2004 - 2006

• Out of the five models for modern local
  government management offered, the Economic
  Development Model has generated the greatest
  interest among local governments under the
  Cost-Share Program 2004 - 2006.

Due to program limitations, the implementation
of the ED Model under the Cost-Share Program is
not possible anymore, and interested local
government units will be able to sign contracts
with consultants under market conditions.
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Application Requirements

• Cost-Share Program (CSP) manual with Book of
  standard CSP forms and contracts for the period
  2004 - 2006 can be downloaded from the
  "Publications" section of the UI web site.

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Seminars and Workshops

• Conferences
• - 3rd Regional Conference On Outsourcing In
  Osijek
• Training Events
• Various training events (predominately study
  tours) organized in cooperation with USAID-funded
  World Learning
• Opportunities to attend conferences or seminars
• Institutionalization of training activities,
  especially University level programs and
• Twinning of local governments from different
  countries
• Media's Role in Local Democracy

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Study Tours (cont)

• Croatian Officials in Germany to Learn About
  Asset Management
• Croatias Local Government Delegation Visits
  Cleveland To Improve Citizen Participation In
  Local Affairs
• Croatian Mayors in Great Britain to Exchange
  Practices on Local Economic Development
• Croatian Association of Cities and Municipalities
  Discuss the Efficient Advocacy of Local
  Government Interests with their U.S. Counterparts

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University Public Administration Programs

• Certificate Courses in Zagreb and ibenik New
  Methods in Local Capital Investments
• Roundtable Organizational Development Model in
  Local Government
• Seminars
• Communication Methods for Improving Management -
  Appreciative Inquiry for Organizations and
  Communities
• Sports, Tourism and Economic Development
• Human Resources Management in Public
  Administration

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First Master of Public Administration in Croatia

• First MPA in Croatia started at the Faculty of
  Economics in Rijeka on May 28, 2004.
• The curriculum was developed in co-operation with
  USAID's Local Government Reform Project, Maxine
  Goodman Levin College of Urban Affairs -
  Cleveland State University (USA) and Slovenian
  Faculty of Law, University of Ljubljana (Univerza
  v Ljubljani - Fakulteta za upravo).

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Twinning Programs

• Karlovac Kansas City
• Buzet, Labin, Pazin La Grande, Pendleton
• Dubrovnik Monterey
• Frequently Asked Questions About the LGRP
  Twinning Program
• http//www.urban-institute.hr/default.asp?ru18
  6gl200503040000003sidjezik2

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Media and Local Government

• A series of roundtables on local government for
  local and national media representatives "Media
  and Local Government - A Cultural Dialogue
  (October 2005, the LGRP, in cooperation with the
  Croatian Association of Journalists (HND))
• The roundtable's objective to create a dialogue
  between media representatives and local
  government officials.

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LGPR Publications

• Books and manuals
• http//www.urban-institute.hr/default.asp?ru152s
  idjezik2
• Brochures and Leaflets
• http//www.urban-institute.hr/default.asp?ru153s
  idjezik2
• LGRP Newsletter
• http//www.urban-institute.hr/default.asp?ru151
  sidjezik2
• Implications of EU Accession for Local
  Governments in Croatia (October, 2005)
• Economic Decentralization and Local Government
  (Rijeka, 2004)
• 2004 UI Annual Report The Big Picture

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Summary

• It is a multi-year effort to introduce modern
  public administration practices to most of
  Croatia's 548 local governments and to assist
  with policy reform to strengthen the local
  government sector.
• The Project started in the year 2000.
• So far it has cooperated with over 200 Croatian
  cities and municipalities.

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A vital role of LG

• Local and regional self-government have a vital
  role in the functioning of a modern society.
• They reflect the crux of democratic principles
  the right and duty of citizens to take part in
  decision-making that directly affects their
  everyday lives and to share responsibility for
  the functioning of common matters in their
  society.

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Public opinion research results, May 2004

• Prizma Istraivanja, a public opinion research
  agency, conducted a public opinion poll in May
  2004 using a representative sample of 619 adult
  citizens of the Republic of Croatia and covering
  issues such as local elections and local
  government.

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7 !
The results show that only 7 of citizens
consider themselves fully acquainted with the
work of the local government, 50 believe they
are partly acquainted with it, while as high as
38 are not acquainted with it at all.
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What was our part in LGPR? Croatia 2001 2003

• 2001 2002
• Pilot cities Rijeka and Varadin, ED model
• 2003
• Training of Consultants two components
  Consulting Methodology, ED model (w/Training
  Resorce Group)
• Cost-share program
• a) ED model, in 1 town (Slunj), and 4
  municiplaities (Rakovica, Cetingrad, umberak,
  Kraic)
• b) PP model in two towns (Glina, Crikvenica)

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What was our part in LGPR? Croatia 2004 2005

• 2004 2005
• Cost-share program
• ED model, in 4 towns (Ozalj, Zlatar, Ivanic
  Grad, Dugo Selo) and 10 municipalities (Kamanje,
  akanje, Draganic, Netretic, Brinje, Marija
  Bistrica, Marija Gorica, Puca, Brckovljani,
  Rugvica)
• Establisher (among the others) of HUKON member
  of the HUKONs Steering Committee
• Training/workshops for the UI

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What was our part in LGRP? in the region

• ED - Kosovo, 2003 Leposavic EDSP based on
  community process facilitation within the
  economic development project supported by the EAR
• PP, ED training Kosovo, 2005(2006) Kosovska
  Mitrovica - Training of local community leaders
  Community organization and mobilization, within
  the Open Society funded project Center for
  community development
• PP - Serbia, 2003 Ni, Kragujevac, Zrenjanin,
  abac, Cacak development of PP strategies
  (workshop on PP model and action planning) within
  Serbia Local Government Reform Program (SLGRP),
  contracted by DAI (Development Alternatives,
  Inc.) supported by USAID)

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Economic Development Strategic Planning Based On
Community Process Diagram
Community-based EDSP
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Community - Based Economic Development Strategic
Planning
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Intervention logic

• The logical framework approach
• Analysis problem tree, goal tree, log-frame
  matrix, risk analysis (assumptions test)
• Planning Gantt-table - action planning, resource
  allocation

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Economic Development Strategic Planning Based On
Community

• Demanding participatory learning process
  (contracting, preparation, implementation,
  drafting the plan, presentation of the draft)
• Consulting style?
• Strong communication, presentation, facilitation,
  team building, problem solving, organizational,
  and reporting skills?
• Experience-share
• Capacity building Organizational development?
• Communication with the Project
• Key-word of the process TRUST VISION

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Local development

• SWOT

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Strengths

• Local resources
• Location advantage
• Infrastructure
• Small/medium businesses
• People
• New ideas
• Public-private partnerships
• Civil society
• Development strategies
• Tools learned in the EDSP process

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Weaknesses

• Municipality/city capacity (knowledge, skills,
  information,experience, technology, structures,
  procedures, communication...)
• Social capital
• Infrastructure
• Mental models Perception of reality System
  thinking
• Credibility Accountability
• Politics, Corruption
• Civil society
• Corporate sector
• Flexibility Adaptibility
• Implementation Monitoring of the plans ,
  Performance/Result measurment
• Vision

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Opportunities

• Regional National politics
• Educational system
• EU Global politics and trends
• Decentralization, and other reform processes
• Regionalization
• National law frame
• Regional National strategy
• New investments/investitors
• National, Regional International funds
• Cooperation Partnerships
• Experience exchange
• Accession in the EU

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Threats

• National economy
• Regional politics
• National politics
• EU politics
• Globalization
• Law frame
• Regional strategy
• National strategy
• Educational system
• Corruption

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What now?

• This is already in place and it is supportive
• LGRP
• ROPs
• National strategies
• Law frame national level
• Cooperation partnerships
• Regional initiatives
• Teaming outsourcing
• Other national International projects/programs/
  initiatives

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What is our future?

• Implementation, Monitoring, Evaluation, Updating
• Continual process of learning and empowerment
• Learning organizations/communities/society
• Strategic thinking, win/win philosophy, permanent
  improvement and development
• EU membership
• Link w/the Millennium Development Goals

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• ?Any further information?
• chmura_at_urban-institute.hr
• marijar_at_myway.com
• Thank you?