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Financing Growth and Cohesion
in the Enlarged EU
“The European Social Fund
contribution”
Marie C. Donnelly
Head of Unit
ESF Policy Co-ordination, Employment, Local Development
-1-
Administrative Capacity
Institutional and administrative capacity in the public sector is usually
defined as the set of characteristics related to human capital and the
performance and success of public policies.
Paticular attention is given to the development of strategies and to the
capability to maximise the efficiency of policy delivery.
Typical aspects of capacity are the
 quality of civil servants,
 organisational characteristics,
 the diffusion of ICTs among organisational units,
 intergovernmental relations and
 the interaction between government and its social and economic
environment
-2-
Public employment as a % of total labour force
Source: OECD Economic outlook, no. 73, June 2003
-3-
Public employment ranking
Country
Public
Share in 2002 (%)
Position in
2002
Position in
1992
Position in
1982
Trend over 19932002
Finland
22.4
3.
3.
4.
constant
France
21.2
4.
4.
5.
constant
Belgium
16.8
7.
6.
6.
constant
Luxembourg
14.9
8.
10.
10.
constant
United States
14.7
10.
9.
8.
constant
Greece
11.4
15.
16.
16.
constant
Japan
8.1
19.
17.
17.
constant
Sweden
30.0
1.
1.
1.
decreasing
UK
17.8
5.
5.
3.
decreasing
Czech Rep.
14.8
9.
n.a.
n.a.
decreasing
Italy
14.4
11.
8.
7.
decreasing
Austria
12.2
13.
11.
13.
decreasing
Poland
12.1
14.
n.a.
n.a.
decreasing
Ireland
11.0
16.
14.
11.
decreasing
Netherlands
10.7
17.
15.
12.
decreasing
Germany
10.2
18.
12.
9.
decreasing
Denmark
29.0
2.
2.
2.
increasing
Portugal
17.0
6.
7.
14.
increasing
Spain
13.0
12.
13.
15.
increasing
-4-
Total government spend as a % of GDP
Source: Eurostat New Cronos, OECD, Wirtschaftskammer Osterreich
-5-
Public expenditure, by category, % GDP
Source: Eurostat New Cronos
-6-
Total taxes as a % of GDP
Source: OECD Revenue statistics, Paris
-7-
Public sector performance: 1990 - 2000
Source: ECB Working Paper No 242, July 2003
-8-
Rational for supporting
Administrative Capacity

 Well-functioning institutions and public administrations are a precondition for the successful design and implementation of policies to
promote socio-economic development and to contribute to growth and
employment
 Efficiencies in public services lead to increased productivity in the
economy e.g. through faster procedures, improved services, etc.
 Effective institutional and administrative capacity is the key to good
governance - an essential element of the Lisbon Strategy
 Institutional and administrative capacity includes the ability of Member
States and regions to contribute to the European Union's objectives and
to fulfil the conditions and obligations arising from membership
 PHARE no longer available
-9-
The new ESF priority
Administrative capacity
–
–
–
–
Supports reforms and modernisation
Supports Convergence Regions and Cohesion Member
States
Should not be mistaken with Technical Assistance!!!
Special focus on building capacity to:
• develop and design policies and programmes
• deliver and implement policies, programmes and
legislation
-10-
Examples of activities
Mechanisms to improve good policy and programme design, monitoring, evaluation
Legislation, policies and processes:





Analysis; Development of strategies and action plans; Development of impact assessment capacities;
Evaluation and monitoring of policies;
Introduction of accountability systems, including administrative, political, judicial;
Move from administrative accountability towards managerial accountability systems
Introducion of tools to assess the performance of administrations and public services
Structural reform of policy processes






Modernisation of structures and processes co-ordination systems;
The (re-)definition of the role and position of ministries, and internal units
Developing of standards of administrative conduct, their dissemination and implementation;
Supporting intra-departmental co-ordination (including strengthening managerial skills) and inter-connections between
central, regional and local levels including application of modern communication and information technologies;
Reinforcing dialogue and co-operation with social partners and non governmental organisations and citizens;
The modernisation or establishment of ombudsman institutions to enhance trust between citizens and administrations.
Capacity building in the delivery of relevant policies and programmes






Roll out of the implementation and delivery of services
Development of implementation tools and methodologies (including operational manuals, code of conducts etc);
Establishing standards and improving the professional qualifications of the officials and relevant staff;
Introduction of training as a part of government human resource policy including state training institutions;
Development of a broad range of training for staff in chosen policy areas including development of curricula;
Development and implementation of new methods and new forms of work organisation.
-11-
ESF experience with
Public employment services
Spain: The development of labour market instruments, systems of training and individual
orientation measures for unemployed including

tailor-made services and individual action plans

support people to reintegrate with a special focus on those who return to the labour
market after long periods of
unemployment or sick leave
 counselling, job broking, specialised services as well as the development of a
personalised approach to clients.
Germany: Support for capacity building of local authorities in the new tasks introduced by
recent labour market reforms. These new tasks required, for example,

the close cooperation of these authorities with the employment services,

training of staff of municipalities and local authorities in general.
Finland: Following a reduction in the number of employment services in Southeast Finland,
the remaining service points in municipalities offered not only information about the
supply of labour, training schemes, vacancies and employer services, but also access to
its electronic services and help in using information technology, in drafting documents
and in setting up business. The employment services staff had were trained to deliver the
new tasks.
-12-
ESF experience in Education
The ESF has contributed to the reform and modernisation of education and training
systems, and the adaptation of the training and education systems to the new
requirements of the labour market and to the needs of the knowledge-based society.
The ESF also supports the implementation of structural reforms through the development
of new curricula, preparation of the teaching staff and the development of new methods
of learning.
Ireland: the introduction of a national framework of qualifications establishing a single,
coherent award system for all levels of education and training. Also the launch of the
National Qualification Authority which implements the new system.
Portugal: According to data from 2000, over three million adults in mainland Portugal –
around 64% of the active population - had not completed lower secondary education.
This led the Government to launch a national system for recognising, validating and
certifying competences acquired through non-formal learning supported by ESF.
Belgium: a partnership between university and training institutions was established to
develop new educational methods to promote life-long learning, including distance
learning.
-13-
ESF experience in Portugal
1. Initial ESF programme contributed to the reform of the Portuguese
administration with
– support to the implementation of public finance reform,
– to the development of quality system in public services and
– to the introduction of a standardised code of administrative procedures.
The bulk of ESF interventions aimed at introducing new forms of services
for citizens and enterprises
2. Through the mid-term review process, introduced a new programme
– to further support the reform and modernisation of the Portuguese public
administration by contributing
– to the externalisation of functions,
– introduction of motivation and performance assessment system and
– to the establishment of "management by objective" principle.
An important objective of the programme is to increase the quality of
services provided to citizens and enterprises.
-14-
ESF experience in Greece
 Administrative reform based on raising the efficiency and productivity of
officials including
 Administrative re-organisation, research, evaluation, experimental actions
 Reorganisation of both initial and continuing training for staff in central,
regional and local administrations
 Modernisation of administrative and legislative procedures, and the
reorganisation of the departments
 Modernising public services including
 The Stock Exchange
 Local administrations
 The Finance Ministry's functions (taxes, budget, customs, salaries, pensions,
treasury)
 The social security system
 Regional statistics
-15-
Accountable
Participatory
Concensus
oriented
Effective
and Efficient
Transparent
Good
Governance
Equitable
and inclusive
Responsive
Follows the
rule of Law
-16-
More information!
Web: Europa.eu.int
= Employment = Social Fund
-17-