Download Reforma_miro

Slovak experience on reforming the
territorial administration, and the
process of devolution of
responsibilities and competences to
local self-governments
Miroslav Beblavý
State Secretary
Ministry of Labour, Social Affairs and Family
Zagreb, 23/01/2006
October 2004
1
Some background facts:
 2900 municipalities (average size 1 800)
 8 regions (average size 675 000)
 GDP structure: agriculture: 4.5%, industry: 31.8
services: 63.8%
 GDP per capita on a PPP basis: EUR 12 000
October 2004
2
Recent Slovak political
history:
 1990 - 1992: In hurry, vol. 1
 1992 - 1998: Out of Europe
 1998 - 2002: Back to Europe
 2002 - 2006: In hurry, vol. 2
October 2004
3
Reforms in Slovakia:
2 stages
 Back to Europe 1998-2002: macroeconomic
stabilisation, regulatory reform, acquis adoption,
financial system reform, political decentralisation,
partial tax reform
 Successful Europeans 2002-2006: Labour market
reform, pension reform, fundamental tax reform,
social benefits reform, civil service and
government reorganisation, primary and
secondary education reform, fiscal
decentralisation, health care reform
October 2004
4
Public administration reform as an
element of the reform package:
 Political reform
 Shift to independent regulation in many areas
 Political effects of decentralisation
 Ethics and anticorruption efforts
 Budgeting reform
 Strategic budgeting: emphasis on deficit-reduction, programs
and priorities, the medium-term outlook
 Civil service reform
 Pay reform
 Creation of the Civil Service Authority
 Decentralisation and organisation reform
October 2004
5
Decentralisation as an element of public
administration reform:
 1989: Fall of communism
 1990: Creation of elected municipal authorities
 2001: Creation of elected regional authorities
 2002-2004: Decentralisation of many service
delivery responsibilities to regions and
municipalities
 2004: EU entry, associated with large influx of
funds for regional development
 2005: Fiscal decentralization
October 2004
6
The new model of local development
 Strong role of municipalities – elected mayors
and councillors
local development
primary education
basic health care and long-term care
housing and zoning
local „infrastructure“ (small roads, garbage, parks,
cultural facilities)
October 2004
7
Continued:
 Supplementary role of the regions
 secondary education
 regional transport
 regional development
 Central government
 sectoral administrations for service delivery:
 pensions, social benefits and active labour market policies
 taxes and customs
 law and order + the military
October 2004
8
2005 – fiscal decentralisation:
 Greater emphasis on local/regional resources and stable
formula for distribution of central taxes
 Municipalities: 100% of locally determined real estate tax +
70.3% of centrally collected personal income tax distributed
according to a formula taking into account number of
inhabitants, age structure and altitude
 Regions: 100% of tax on business-owned vehicles + 23.5%
of centrally collected personal income tax distributed
according to a formula taking into account size, number of
inhabitants, age structure and road density
 + direct transfers from central ministries for tasks
delegated by them
October 2004
9
This model places emphasis on:
 Strong local accountability (no compulsion to
provide certain, „own“ services – kindergarten
and after-school programs, long-term care, local
roads etc., autonomy in the manner of provision
of others – primary and secondary education)
 Intermunicipal and interregional redistribution
 Uniformity in social policy (pensions, benefits),
taxes and law and order
October 2004
10
Issues and problems:
 Efficiency vs. Community and corruption
 Insufficient debate on individual, community and
national goods
 Limited policy capacity of subnational governments
and other actors
 Lack of public sector ethos
October 2004
11