Cooperation Strategy Serbia 2010 - 2013 - Deza - admin.ch
Cooperation Strategy Serbia 2010 - 2013 - Deza - admin.ch
Cooperation Strategy Serbia 2010 - 2013 - Deza - admin.ch
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COOPERATION<br />
STRATEGY<br />
SERBIA <strong>2010</strong>–<strong>2013</strong>
Editors and Publishers<br />
Federal Department of Foreign Affairs<br />
Swiss Agency for Development and <strong>Cooperation</strong> (SDC)<br />
Freiburgstrasse 130<br />
3003 Berne<br />
www.deza.<strong>admin</strong>.<strong>ch</strong><br />
Federal Department of Economic Affairs<br />
State Secretariat for Economic Affairs (SECO)<br />
Effingerstrasse 1<br />
3003 Berne<br />
www.seco-cooperation.<strong>admin</strong>.<strong>ch</strong><br />
Swiss <strong>Cooperation</strong> Office Belgrade<br />
Knez Mihaila 10/IV<br />
11000 Belgrade<br />
www.swiss-cooperation.<strong>admin</strong>.<strong>ch</strong>/serbia/<br />
Layout<br />
Publikum d.o.o<br />
11000 Belgrade<br />
Slavka Rodica 6<br />
+381 11 23 222 01<br />
Pictures<br />
Swiss Agency for Development and <strong>Cooperation</strong> (SDC)<br />
United Nations Development Programme<br />
Available at<br />
Swiss Agency for Development and <strong>Cooperation</strong> (SDC)<br />
State Secretariat for Economic Affairs (SECO)<br />
Swiss <strong>Cooperation</strong> Office Belgrade<br />
An electronic version is available via Internet<br />
Organisational Units in Charge<br />
Swiss Agency for Development and <strong>Cooperation</strong> (SDC)<br />
<strong>Cooperation</strong> with Eastern Europe<br />
Western Balkans Division<br />
State Secretariat for Economic Affairs (SECO)<br />
Economic <strong>Cooperation</strong> and Development Department<br />
Private Sector Development Division<br />
© SDC <strong>2010</strong>
SERBIA <strong>2010</strong>-<strong>2013</strong><br />
The Swiss Agency for Development and <strong>Cooperation</strong> (SDC) and the State Secretariat for Economic<br />
Affairs (SECO) have together drawn up the <strong>Cooperation</strong> <strong>Strategy</strong> <strong>Serbia</strong> <strong>2010</strong>-<strong>2013</strong> in association<br />
with development partners in <strong>Serbia</strong> and with various interested parties from the Swiss government.<br />
The <strong>Strategy</strong> represents Switzerland’s commitment to supporting <strong>Serbia</strong>’s transition towards a functioning<br />
democracy and a sustainable market economy.<br />
The <strong>Cooperation</strong> <strong>Strategy</strong> has been prepared in line with relevant national documents, su<strong>ch</strong> as the<br />
National Programme for Integration with the European Union, the Needs of the Republic of <strong>Serbia</strong> for<br />
International Assistance, social inclusion policies, and selected sector policies and strategies. It is further<br />
based on the experiences gained and lessons learned by Swiss <strong>Cooperation</strong> partners in the past.<br />
This is the third <strong>Cooperation</strong> <strong>Strategy</strong> for <strong>Serbia</strong>. Switzerland has been supporting <strong>Serbia</strong> since 1991.<br />
The initial focus on humanitarian aid activities has shifted to a support for the transition process. The<br />
present <strong>Strategy</strong> sets the framework and broad directions of Switzerland’s cooperation in <strong>Serbia</strong> from<br />
<strong>2010</strong> to <strong>2013</strong>.<br />
The document contains six main parts. The first is concerned with how the context has developed and<br />
the current situation. The second focuses on a review of the cooperation from 2007 to 2009, and the<br />
third part outlines strategic orientations. The fourth part gives an overview of strategic principles, the<br />
fifth addresses budget and programme management, and the sixth part describes the monitoring<br />
and controlling system.<br />
While both SECO and SDC will work together closely on the implementation of the <strong>Strategy</strong>, ea<strong>ch</strong><br />
institution fulfils a specific role and remains responsible for the financing and execution of its part of<br />
the Swiss portfolio and for the a<strong>ch</strong>ievement of the corresponding objectives and results.<br />
The <strong>Cooperation</strong> <strong>Strategy</strong> <strong>Serbia</strong> <strong>2010</strong>-<strong>2013</strong> was approved in December 2009.<br />
Swiss Agency for Development<br />
and <strong>Cooperation</strong>, SDC<br />
State Secretariat for Economic<br />
Affairs, SECO<br />
Martin Dahinden<br />
Director-General<br />
Jean-Daniel Gerber<br />
State Secretary<br />
I
ACRONYMS<br />
CG<br />
EBRD<br />
EIB<br />
EFSE<br />
EU<br />
FIAS<br />
FOM<br />
GDP<br />
GI<br />
GLOBALGAP<br />
HEKS<br />
ICTY<br />
IDP<br />
IFC<br />
IMF<br />
IPA<br />
MoE<br />
MoJ<br />
NCC<br />
NGO<br />
PRS<br />
PSD<br />
REF<br />
RPP<br />
RRPP<br />
SAA<br />
SCO<br />
SCOPES<br />
SCP<br />
SCTM<br />
SDC<br />
SECO<br />
SIFEM<br />
SIPPO<br />
SME<br />
TENT B<br />
tbd<br />
WB<br />
WTO<br />
WTO-TRIPS<br />
Corporate Governance<br />
European Bank for Reconstruction and Development<br />
European Investment Bank<br />
European Fund for Southeast Europe<br />
European Union<br />
Foreign Investments Advisory Service<br />
Federal Office for Migration<br />
Gross Domestic Product<br />
Geographical Indication<br />
European retailers’ programme for good agricultural products<br />
Hilfswerk der Evangelis<strong>ch</strong>en Kir<strong>ch</strong>en der S<strong>ch</strong>weiz (Swiss NGO)<br />
International Criminal Tribunal for the former Yugoslavia<br />
Internally Displaced Person<br />
International Finance Corporation<br />
International Monetary Fund<br />
Instrument of Pre-Accession Assistance<br />
Ministry of Education<br />
Ministry of Justice<br />
National Control Centre<br />
Non-Governmental Organization<br />
Poverty Reduction <strong>Strategy</strong><br />
Private Sector Development<br />
Roma Education Fund<br />
Regional Police Programme<br />
Regional Resear<strong>ch</strong> Promotion Programme in Social Sciences<br />
Stability and Association Agreement<br />
Swiss <strong>Cooperation</strong> Office<br />
Scientific <strong>Cooperation</strong> Programme between Eastern Europe and Switzerland<br />
Swiss Cultural Programme<br />
Standing Conference of Towns and Municipalities<br />
Swiss Agency for Development and <strong>Cooperation</strong><br />
State Secretariat for Economic Affairs<br />
Swiss Investment Fund for Emerging Markets<br />
Swiss Import Promotion Programme<br />
Small and Medium Enterprise<br />
Nikola Tesla Thermal Power Plant B<br />
to be defined<br />
World Bank<br />
World Trade Organization<br />
WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights<br />
II
TABLE OF CONTENTS<br />
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . i<br />
Acronyms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii<br />
Table of Contents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iii<br />
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . iv<br />
1 Context and Develovment Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1<br />
1.1 Political developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1<br />
1.2 Economic developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1<br />
1.3 Social developments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3<br />
1.4 International aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3<br />
2 Review of Switzerland’s cooperation 2007-2009 . . . . . . . . . . . . . . . . . . . . . . . . 4<br />
2.1 Education (SDC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4<br />
2.2 Public Infrastructure (SECO) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4<br />
2.3 Local Governance (SDC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5<br />
2.4 Private Sector Development PSD (SECO/SDC). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5<br />
2.5 Major lessons learned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6<br />
3 Strategic orientation <strong>2010</strong>-<strong>2013</strong> . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7<br />
3.1 Overall strategic framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7<br />
3.2 Objectives framework and programme structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7<br />
3.3 Economic Development (SECO and SDC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7<br />
3.4 Rule of Law and Democracy (SDC). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10<br />
3.5 Education (SDC) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11<br />
3.6 Energy Efficiency and Renewable Energy (SECO). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13<br />
3.7 Regional programmes, Swiss NGO programmes and Migration . . . . . . . . . . . . . . . . . . . 14<br />
3.8 Transversal themes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14<br />
4 Strategic principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15<br />
5 Budget and programme management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16<br />
6 Monitoring and controlling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17<br />
List of Annexes: . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18<br />
Annex 1 – Swiss <strong>Cooperation</strong> <strong>Strategy</strong> for <strong>Serbia</strong> <strong>2010</strong>-13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18<br />
Annex 2 – Budget details . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19<br />
Annex 3 – Map of <strong>Serbia</strong> . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20<br />
Annex 4 – Monitoring system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21<br />
Annex 5 – <strong>Serbia</strong> at a glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23<br />
III
SWISS COOPERATION<br />
Executive Summary<br />
<strong>Serbia</strong> has experienced considerable economic<br />
growth in recent years and is now a country<br />
with a clear European orientation and strong<br />
will to take the social inclusion agenda forward.<br />
The <strong>Cooperation</strong> <strong>Strategy</strong> <strong>2010</strong>-<strong>2013</strong>, therefore,<br />
builds on past programme experience and<br />
makes use of new opportunities to align itself<br />
with <strong>Serbia</strong>’s policies and strategies. While the<br />
<strong>Strategy</strong> thus has elements of continuity, it is<br />
also designed to adjust to emerging <strong>ch</strong>allenges,<br />
including the repercussions of the global economic<br />
crisis on <strong>Serbia</strong>.<br />
<strong>Serbia</strong> has begun defining and implementing<br />
reforms in many sectors, with the aim of improving<br />
state effectiveness and fulfilling the criteria<br />
for becoming a European Union (EU) candidate<br />
country. However, overall progress with modernizing<br />
the judiciary, combating corruption and<br />
implementing decentralization has been slower<br />
than expected. Respect for human rights and<br />
the integration of minorities remain <strong>ch</strong>allenges,<br />
despite the fact that minorities are officially<br />
recognized and an anti-discrimination law has<br />
recently been passed.<br />
From 2006 to 2008, annual real Gross Domestic<br />
Product (GDP) growth rates ranged from<br />
5.5% to 7.5%, while poverty rates decreased<br />
from 8.8% to 6.6% of the population. GDP per<br />
capita rea<strong>ch</strong>ed USD 7,000 in 2008, placing<br />
<strong>Serbia</strong> firmly in the upper bracket of middle-income<br />
countries. The official unemployment rate<br />
in 2008 remained at a high 14%, with vulnerable<br />
sections of society su<strong>ch</strong> as young people<br />
and minorities especially badly hit. As a consequence<br />
of the global economic crisis, <strong>Serbia</strong>’s<br />
economy has contracted by an estimated 3%<br />
in 2009 and it is anticipated that growth will<br />
resume in <strong>2010</strong>.<br />
After years of positive trends, poverty has recently<br />
increased again to 7.9%. This affects the elderly,<br />
young people and <strong>ch</strong>ildren in particular. In addition,<br />
as many as 20% of the population live<br />
just above the poverty line and are vulnerable<br />
to external shocks. As in other countries in the<br />
region, the Roma population and the other 20<br />
recognized “national minorities” are in a difficult<br />
situation, both economically and socially. As<br />
a response to these social <strong>ch</strong>allenges, the government<br />
has decided to draw up and implement<br />
social inclusion policies as well as a comprehensive<br />
migration management strategy. Both are<br />
essential to the EU integration process.<br />
Switzerland established a humanitarian aid programme<br />
in <strong>Serbia</strong> in 1991. This was phased out<br />
only recently. In 2001, an emergency assistance<br />
programme was laun<strong>ch</strong>ed to support the incoming<br />
democratic government. This was followed<br />
by the development of a medium-term cooperation<br />
programme for 2002 to 2006. In addition,<br />
the Federal Office for Migration (FOM) financed<br />
significant return assistance and reconstruction<br />
programmes throughout this period. The<br />
last <strong>Cooperation</strong> <strong>Strategy</strong> covered the period<br />
from 2007 to 2009. Its relevance with regard to<br />
national priorities was high, and implementation<br />
effective. Switzerland consequently continues to<br />
enjoy an excellent reputation, owing to its focus<br />
on a<strong>ch</strong>ieving results, its flexibility of approa<strong>ch</strong><br />
and its strong partnership orientation.<br />
The overall goals of the <strong>Cooperation</strong> <strong>Strategy</strong><br />
<strong>2010</strong>-<strong>2013</strong>, related to European integration,<br />
and the four domains (Economic Development,<br />
Rule of Law and Democracy, Education, Energy<br />
Efficiency and Renewable Energy), are well in<br />
line with the government’s priorities, as formulated<br />
in several strategic documents.<br />
IV
SERBIA <strong>2010</strong>-<strong>2013</strong><br />
1. Context and development policies<br />
The evolution of the context in <strong>Serbia</strong> was encouraging<br />
in recent years, after the difficult period in<br />
the nineties and the political <strong>ch</strong>anges in 2000.<br />
Between 2007 and 2009 – the time-frame of the<br />
previous <strong>Cooperation</strong> <strong>Strategy</strong> – the country made<br />
good progress in its transition process and placed<br />
itself firmly on the path to European integration.<br />
That said, two major developments – the secession<br />
of Montenegro and Kosovo’s unilateral declaration<br />
of independence – significantly <strong>ch</strong>anged<br />
<strong>Serbia</strong>’s geo-political environment. During this<br />
period, <strong>Serbia</strong> was generally on track with the<br />
implementation of essential reforms. These resulted<br />
in high economic growth rates and a decrease<br />
in poverty – factors whi<strong>ch</strong> are now endangered by<br />
the global economic crisis.<br />
The Western Balkans region in general, and <strong>Serbia</strong><br />
in particular, will continue to be of strategic priority<br />
for the Swiss foreign policy for reasons of proximity,<br />
closeness of interaction and a significant diaspora<br />
living in Switzerland. Bilateral relations between<br />
<strong>Serbia</strong> and Switzerland intensified in 2009 with a<br />
series of high-level visits, after a slow-down in 2008<br />
when <strong>Serbia</strong> recalled its ambassadors from countries,<br />
including Switzerland, whi<strong>ch</strong> had recognized<br />
Kosovo’s independence. <strong>Cooperation</strong> between the<br />
two countries, whi<strong>ch</strong> are in the same constituency<br />
within the Bretton Woods Institutions, has evolved<br />
very positively in recent years.<br />
1.1 Political developments<br />
The prospect of integration into the EU clearly<br />
remains the major driving force behind political<br />
and <strong>admin</strong>istrative reforms. However, while the<br />
<strong>Serbia</strong>n parliament has ratified the Stabilization<br />
and Association Agreement (SAA), the EU has<br />
not yet done so, on grounds that <strong>Serbia</strong>’s cooperation<br />
with the International Criminal Tribunal<br />
for the former Yugoslavia (ICTY) is still not fully<br />
satisfactory. <strong>Serbia</strong>’s accession to the S<strong>ch</strong>engen<br />
“White List” in December 2009 – enabling visafree<br />
travel to Europe – was an essential step<br />
towards <strong>Serbia</strong>’s European integration.<br />
Early elections in May 2008 brought a pro-European<br />
coalition government to power. It seems<br />
to be solid, but the opposition continues to block<br />
important reforms in parliament and regularly<br />
calls for new elections. The stability of the government<br />
will depend largely on the effects of the<br />
global economic crisis on the country, and the<br />
response by the authorities.<br />
<strong>Serbia</strong> has begun defining and implementing<br />
reforms in many sectors, with the aim of improving<br />
state effectiveness and fulfilling the criteria<br />
for becoming an EU candidate country. Overall<br />
progress with modernizing the judiciary, combating<br />
corruption and implementing decentralization<br />
is slower than expected. Respect for human<br />
rights and the integration of minorities are still<br />
<strong>ch</strong>allenges, despite the fact that minorities are<br />
officially recognized and an anti-discrimination<br />
law has recently been passed.<br />
It remains to be seen how far the prevailing “distributive”<br />
political discourse – on the fair allocation<br />
of economic and social resources – will win<br />
over the previously dominant “symbolic” discourse<br />
aimed at uniting the people under the flag of a<br />
strong <strong>Serbia</strong>, including Kosovo. <strong>Serbia</strong>’s plea to<br />
refer Kosovo’s unilateral declaration of independence<br />
to the International Court of Justice has<br />
been accepted by the United Nations. The advisory<br />
opinion of the Court is expected in <strong>2010</strong>.<br />
1.2 Economic developments<br />
From 2006 to 2008, annual real GDP growth<br />
rates ranged from 5.5% to 7.5%, while poverty<br />
rates decreased from 8.8% to 6.6% of the population.<br />
GDP per capita rea<strong>ch</strong>ed USD 7,000 in<br />
2008, placing <strong>Serbia</strong> firmly in the upper bracket<br />
of middle-income countries. The official unemployment<br />
rate in 2008 remained at a high 14%,<br />
with vulnerable sections of society su<strong>ch</strong> as young<br />
people and minorities especially badly hit.<br />
As a consequence of the global economic crisis,<br />
the <strong>Serbia</strong>n economy has contracted in 2009 with<br />
an estimated 3% decline in GDP. An International<br />
Monetary Fund (IMF) stand-by arrangement (EUR<br />
3 billion in 2009-10), new loans from the World<br />
Bank (WB) and the use of EU IPA (Instrument for<br />
Pre-Accession Assistance) funds in 2009 are all<br />
1
2<br />
SWISS COOPERATION
SERBIA <strong>2010</strong>-<strong>2013</strong><br />
means of assistance that are required to stabilize<br />
the economy. These will most probably help<br />
maintain the relative stability of the domestic currency.<br />
The public sector must revert to a rigorous<br />
austerity policy, whi<strong>ch</strong> includes lowering public<br />
spending, as well as reducing transfers to local<br />
governments. Efforts to increase revenue levels<br />
are ongoing, but require measures in the politically<br />
sensitive issue of taxation. The private sector<br />
has been faced with a drop in demand and<br />
in foreign direct investment, leading to declines<br />
in production, imports and exports, as well as an<br />
increased unemployment.<br />
Despite significant withdrawals of domestic savings<br />
and foreign credit funds, the banking system has<br />
remained relatively stable, owing to the National<br />
Bank of <strong>Serbia</strong>’s discipline. Compared with neighbouring<br />
countries, <strong>Serbia</strong>n banks have appropriate<br />
capital adequacy ratios and are not facing solvency<br />
problems. The government has set up a package<br />
of measures aimed at providing incentives to boost<br />
economic activity. Evidently, mu<strong>ch</strong> will depend on<br />
whether the current global crisis abates soon, or<br />
the recession drags on.<br />
1.3 Social developments<br />
After years of declining trends, poverty has recently<br />
increased again to 7.9%, affecting the elderly,<br />
young people and <strong>ch</strong>ildren in particular. In addition,<br />
as mu<strong>ch</strong> as 20% of the population live just<br />
above the poverty line, and are vulnerable to<br />
external shocks su<strong>ch</strong> as the current global crisis.<br />
Regional disparities are pronounced, with rural<br />
areas (in the south-west and south) having the<br />
highest poverty rates. <strong>Serbia</strong> shows an accelerated<br />
process of demographic ageing, with a rural<br />
exodus emptying entire villages.<br />
As in other countries of the region, the Roma<br />
population and the other 20 recognized “national<br />
minorities” are in a difficult situation, both<br />
economically and socially. Exclusion and discrimination<br />
persist, in particular with regard to<br />
housing and access to basic services su<strong>ch</strong> as<br />
health and education. The global crisis is likely<br />
to worsen the living conditions and prospects of<br />
marginalized groups.<br />
Overall, the civil society in <strong>Serbia</strong> is not very<br />
strong, and the well-established NGOs are<br />
mostly concentrated in Belgrade. Social dialogue<br />
and partnerships are advancing slowly, with difficulties,<br />
especially at the national level. Migration<br />
constitutes an important issue, as many refugees<br />
and internally displaced persons (IDPs) are still<br />
not really integrated in the society. The number<br />
of returnees from Western Europe is increasing.<br />
As a response to these social <strong>ch</strong>allenges, the<br />
government has decided to draw up and implement<br />
social inclusion policies, as well as a comprehensive<br />
migration management strategy. Both<br />
are essential to the EU integration process.<br />
1.4 International aid<br />
<strong>Serbia</strong> currently receives around EUR 400 million in<br />
international aid annually, with IPA funding expected<br />
to increase over the next years. Covering only<br />
4% of overall public expenditures, this aid is marginal,<br />
but its importance is increasing in the light of<br />
the current budgetary problems. In fact, the global<br />
crisis has further exposed the need to strengthen<br />
dialogue between the <strong>Serbia</strong>n government and its<br />
international development partners.<br />
<strong>Serbia</strong> has signed the Paris Declaration on Aid<br />
Effectiveness and developed a National Aid<br />
Effectiveness Agenda. In cooperation with other<br />
ministries, the Ministry of Finance – through its<br />
Sector for the Programming and Management<br />
of EU Funds and Development Assistance – has<br />
made a significant effort in the implementation<br />
of the National Agenda. Nevertheless, many<br />
donors continue to pursue diverse priorities and<br />
approa<strong>ch</strong>es, leading to a fragmentation of aid.<br />
The government intends to align donor activities<br />
more closely with national priorities by means of<br />
the recently updated Needs Assessment of the<br />
Republic of <strong>Serbia</strong> for International Assistance.<br />
The document is focused on priorities linked to<br />
EU accession. The main instrument, the IPA funds<br />
(50% of international aid), are routed first and<br />
foremost through the government, while the local<br />
levels do not have direct access to them. Another<br />
effort undertaken by the Ministry of Finance is to<br />
provide support to line ministries in the process<br />
of planning and prioritizing international aid, as<br />
capacity in this area is still weak.<br />
Donor harmonization includes periodic coordination<br />
meetings and information sharing between<br />
multilateral and bilateral agencies, as well as the<br />
co-financing of projects to an increasing degree.<br />
Donors and the government all agree that sector-related<br />
policy dialogue and sector-based<br />
approa<strong>ch</strong>es should increase. However, in order<br />
to progress along this track, national capacities<br />
need to be improved to allow the government to<br />
assume full leadership. Existing sector coordination<br />
groups are mainly donor-driven and do not<br />
yet work at a strategic level. The programming of<br />
IPA funds for the 2007-<strong>2013</strong> period provides an<br />
excellent opportunity to enhance the <strong>admin</strong>istrative<br />
capacities of state institutions and to improve<br />
aid effectiveness in <strong>Serbia</strong>.<br />
3
SWISS COOPERATION<br />
2. Review of Switzerland’s<br />
cooperation 2007-2009<br />
Switzerland established a humanitarian aid programme<br />
in <strong>Serbia</strong> in 1991. This was phased<br />
out only recently. In 2001, an emergency assistance<br />
programme was laun<strong>ch</strong>ed to support the<br />
incoming democratic government, followed by<br />
the development of a medium-term cooperation<br />
programme for 2002 to 2006. In addition, during<br />
this period the Federal Office for Migration<br />
financed significant return assistance and reconstruction<br />
programmes. The last <strong>Cooperation</strong><br />
<strong>Strategy</strong> covered the period from 2007 to 2009.<br />
Its main a<strong>ch</strong>ievements are discussed below.<br />
The overall effectiveness of the projects has been<br />
mixed, however, owing to the low status of education<br />
among national priorities and the ensuing<br />
lack of continuity at the political level. Examples<br />
of results are: a) Accreditation and professional<br />
tea<strong>ch</strong>er training system established, with 45,000<br />
tea<strong>ch</strong>ers trained in 2008; b) 12,000 beneficiaries<br />
(Roma, <strong>ch</strong>ildren with disabilities, parents)<br />
supported in inclusive education in over 60<br />
municipalities, resulting in a 20% increase in<br />
enrolment rates and almost 100% graduating to<br />
the next grade.<br />
2.1 Education (SDC)<br />
SDC began to support the education sector in<br />
2000. Since 2006, it has concentrated efforts on<br />
three areas: (i) institutional support for the Ministry<br />
of Education to develop international and<br />
EU-compliant policies and standards; (ii) direct<br />
system development for the professional training<br />
of tea<strong>ch</strong>ers in compulsory education; and<br />
(iii) the community-based inclusion of Roma and<br />
marginalized <strong>ch</strong>ildren in the formal education<br />
system.<br />
SDC’s activities in this domain have contributed<br />
significantly to the reform process at national,<br />
regional and local levels by improving the legal<br />
framework, strengthening institutions and directly<br />
supporting beneficiaries. Across the portfolio<br />
of projects, a steady and coherent evolution is<br />
evident. It has progressed from internal ministry<br />
reforms to sector reforms, from pilot models<br />
to their being an<strong>ch</strong>ored in educational systems<br />
and rolled out. Consequently, the support to<br />
education for Roma <strong>ch</strong>ildren has been redesigned,<br />
shifting from a project to a programme<br />
approa<strong>ch</strong>. This is expected to position inclusive<br />
education better on the political agenda, and to<br />
increase harmonization between implementing<br />
partners. Related to this is the need for a more<br />
active role of the ministry in sector coordination.<br />
As the recognized lead donor in education, SDC<br />
is able to enhance joint policy dialogue, as well<br />
as alignment and the attainment of agreed milestones.<br />
2.2 Public Infrastructure<br />
(SECO)<br />
Since 1999, SECO’s main investments have<br />
been in the electricity infrastructure, through<br />
various projects linked to emergency needs and,<br />
between 2003 and 2007, the renewal and modernization<br />
of the National Control Centre (NCC).<br />
The project made the high-voltage transmission<br />
system in <strong>Serbia</strong> more secure, optimised and<br />
efficient. It also enabled the establishment of a<br />
regional electricity market, by enabling accurate<br />
measurements of the energy ex<strong>ch</strong>anged between<br />
neighbouring countries. The pioneer nature of<br />
the project, in terms of both its state-of-the-art<br />
te<strong>ch</strong>nology (mostly of Swiss origin), and its central<br />
status, ensured high visibility. It ran in parallel<br />
with the modernization of the telecommunications<br />
network for data transmission, funded by<br />
the Economic Bank for Reconstruction and Development<br />
(EBRD) and the European Investment<br />
Bank (EIB), whi<strong>ch</strong> gave it a stamp of approval as<br />
an international effort.<br />
Based on the success of the NCC project, a followup<br />
project was developed with the same partner<br />
institution, the Electric Power Industry of <strong>Serbia</strong>.<br />
The modernization of the monitoring and control<br />
system at the largest thermal power plant, Nikola<br />
Tesla B (TENT B), was approved in 2008 and will<br />
be implemented over the next years. With mostly<br />
Swiss equipment, the project is expected to stabilize<br />
the electricity supply while improving environmental<br />
conditions around the power plant.<br />
4
SERBIA <strong>2010</strong>-<strong>2013</strong><br />
In addition to energy, SECO organized the supply<br />
of trams from the city of Basel to the public<br />
transport system of Belgrade. Accompanied by<br />
workshop modernization and staff training, this<br />
project met with high approval rates from passengers<br />
and continues to give good visibility.<br />
Among the results a<strong>ch</strong>ieved in this area are the<br />
acquisition of data about all electricity flows in<br />
<strong>Serbia</strong> and the reconnection of <strong>Serbia</strong> to the<br />
south-eastern European energy grid. While relevant<br />
and effective, interventions in public infrastructure<br />
have resulted in limited policy dialogue.<br />
In the future, these measures must be more firmly<br />
embedded in a defined energy sector strategy.<br />
2.3 Local Governance (SDC)<br />
SDC has been supporting decentralization and<br />
democratization processes at the local level<br />
since 2000. An initial project involved seven<br />
municipalities in central <strong>Serbia</strong>, where local<br />
capacities were assessed and improved. Successes<br />
were replicated in eight municipalities in<br />
south-western <strong>Serbia</strong>, in a co-funding arrangement<br />
with the EU. Effectiveness was satisfactory<br />
and a<strong>ch</strong>ievements are encouraging. Results<br />
are mainly related to the improved quality of<br />
public services (e.g. opening of 14 one-stop<br />
shops), the introduction of citizen participation<br />
me<strong>ch</strong>anisms (e.g. new municipal statutes<br />
in six municipalities and draft laws on popular<br />
initiatives and referenda), the setting up of<br />
inter-municipal cooperation me<strong>ch</strong>anisms (e.g.<br />
support for the establishment of three Regional<br />
Development Agencies), and the improvement<br />
in strategic planning at local and regional levels.<br />
However, the programme is still infrastructure-driven<br />
(significant infrastructure projects<br />
implemented in 15 municipalities), and works<br />
only partly within the public financial and<br />
<strong>admin</strong>istrative systems.<br />
The main lesson for the future is to reinforce<br />
capacity-building in municipal <strong>admin</strong>istrations<br />
in order to increase the efficiency and effectiveness<br />
of public spending at the local level.<br />
Specific topics su<strong>ch</strong> as the cooperation between<br />
local governments, civil society and the private<br />
sector, and the preparation of project proposals<br />
for external funding (especially EU funds)<br />
will be even more important in the context of<br />
the economic crisis. Also, a strong need has<br />
emerged to strengthen advocacy and lobbying<br />
for the interests of local governments at central<br />
government level and to foster a better integration<br />
of local and central state levels. Finally,<br />
the global crisis has revealed the need to help<br />
municipalities raise their own funds and economize<br />
on resources.<br />
2.4 Private Sector<br />
Development (SECO/SDC)<br />
Economic development, based on the enhancement<br />
of private sector activity, has been one of<br />
the pillars of Switzerland’s cooperation with <strong>Serbia</strong><br />
since 2000. Within the framework of a trade<br />
promotion programme, SECO has successfully<br />
supported <strong>Serbia</strong> in its WTO negotiations, bringing<br />
the country close to accession. In collaboration<br />
with the Swiss Import Promotion Programme<br />
(SIPPO), it has also boosted the export of products<br />
in traditional sectors of the economy. Some<br />
elements of the trade programme, su<strong>ch</strong> as trade<br />
efficiency measures, produced mixed results and<br />
were discontinued.<br />
Switzerland’s aid has been expanded, from<br />
access to finance for Small and Medium Enterprises<br />
(SMEs) and financial intermediaries to<br />
broader financial sector support, including the<br />
restructuring and privatization of banks and<br />
insurance companies, the strengthening of system<br />
stability, and the provision of access to insurance.<br />
A critical mass has been rea<strong>ch</strong>ed in terms<br />
of sector portfolio size and contributions were<br />
made to financial sector deepening, but also to<br />
employment creation.<br />
SECO has also been engaged in improving<br />
corporate governance (CG) and the business<br />
enabling environment. It has done so through the<br />
introduction of CG principles, as well as through<br />
legal and regulatory reforms – thereby moving<br />
from the regional and national level to the subnational<br />
level, with an increased focus on policy<br />
implementation rather than policy advice alone.<br />
SDC has concentrated on promoting SME startups.<br />
However, the envisaged shift to a more systemic<br />
and more easily scalable approa<strong>ch</strong> did<br />
not materialize. This showed that reorienting<br />
programmes is time consuming. As a result, the<br />
SDC part of the portfolio was never in full swing.<br />
Therefore, innovative ways for rea<strong>ch</strong>ing more<br />
scalability are being explored.<br />
Overall, the PSD portfolio has been comprehensive<br />
and well-balanced, but there is a need<br />
to reduce the number of individual projects, to<br />
increase scale and to ensure full government<br />
ownership. Specific examples of results are: 43<br />
companies accompanied to trade fairs, over<br />
EUR 3 million in exports contracted, CG manual<br />
published and a post-graduate CG course introduced,<br />
and several hundred SME start-ups initiated<br />
or supported.<br />
5
SWISS COOPERATION<br />
2.5 Major lessons learned<br />
Overall, the Swiss portfolio displayed considerable<br />
relevance in the light of national priorities,<br />
and implementation was effective. Switzerland’s<br />
cooperation consequently continues to enjoy an<br />
excellent reputation, owing to its focus on a<strong>ch</strong>ieving<br />
results, its flexibility and its strong partnership<br />
orientation.<br />
There is still some work to be done concerning<br />
aid effectiveness. National systems and joint aid<br />
implementation arrangements should be utilized<br />
to the extent possible, and parallel project structures<br />
avoided wherever feasible.<br />
Alignment with national and sector policies and<br />
strategies should be clearly defined and monitored,<br />
with a strong emphasis on support for the<br />
implementation of reforms. <strong>Serbia</strong> has recently<br />
drafted and passed many new laws, policies<br />
and strategies, but implementation often lags<br />
behind.<br />
Switzerland is one of the major bilateral donors,<br />
but does not have sufficient visibility. The potential<br />
that exists to increase visibility and position<br />
Switzerland’s cooperation in policy dialogue<br />
should be utilized more effectively through more<br />
vigorous efforts to communicate results and success<br />
stories.<br />
6
SERBIA <strong>2010</strong>-<strong>2013</strong><br />
3. Strategic orientation <strong>2010</strong>-<strong>2013</strong><br />
The overall goal of European integration and<br />
the four domains of the <strong>Cooperation</strong> <strong>Strategy</strong><br />
2007-2009 (see <strong>ch</strong>apter 2) remain well in line<br />
with current government priorities, as formulated<br />
in several strategic documents and confirmed by<br />
the <strong>Serbia</strong>n Ministry of Finance. This, along with<br />
long-term partnerships yielding tangible results<br />
and a relatively stable context, provides a sound<br />
basis for the future. Consequently, there is no<br />
need for the programme to be reoriented substantially.<br />
What is required is rather a refinement<br />
of thematic priorities and certain adjustments in<br />
approa<strong>ch</strong>es and work modalities.<br />
Europe provides the legal basis, and funding<br />
derives from the frame credit on the Continuation<br />
of <strong>Cooperation</strong> with Eastern Europe and the<br />
Commonwealth of Independent States approved<br />
in 2007.<br />
Finally, the international points of reference are<br />
the Millennium Development Goals and the Paris<br />
Declaration on Aid Effectiveness, with the related<br />
Accra Agenda for Action.<br />
Based on these parameters, the <strong>Cooperation</strong><br />
<strong>Strategy</strong> <strong>2010</strong>-<strong>2013</strong> has been designed with the<br />
following objectives framework and related programme<br />
structure.<br />
3.1 Overall strategic<br />
framework<br />
<strong>Serbia</strong> has experienced considerable economic<br />
growth in recent years and is now a country with<br />
a clear European orientation and a strong will<br />
to take the social inclusion agenda forward. This<br />
and the Swiss programme experience are strong<br />
assets on whi<strong>ch</strong> to build the <strong>Cooperation</strong> <strong>Strategy</strong><br />
<strong>2010</strong>-<strong>2013</strong>, making use of new opportunities<br />
for alignment with <strong>Serbia</strong>’s policies. While the<br />
new medium term programme thus contains elements<br />
of continuity, it is also designed to adjust<br />
to emerging <strong>ch</strong>allenges, including the repercussions<br />
of the global economic crisis on <strong>Serbia</strong>.<br />
Key national references are the National Programme<br />
for Integration with the European<br />
Union, the Needs of the Republic of <strong>Serbia</strong> for<br />
International Assistance, social inclusion policies<br />
– whi<strong>ch</strong> are to replace the <strong>Serbia</strong>n Poverty<br />
Reduction <strong>Strategy</strong> (PRS) – and selected sector<br />
policies and guidelines. A “selective” alignment<br />
approa<strong>ch</strong> will help to focus on topics where<br />
Switzerland has a comparative advantage, and<br />
to keep a distance where no agreement can be<br />
rea<strong>ch</strong>ed on basic concepts or methods. Selective<br />
alignment may also refer to programmes of other<br />
partners than the central government.<br />
On the Swiss side, the objectives of the <strong>Strategy</strong><br />
for the Western Balkans of the Federal Council<br />
continue to provide the overall frame of reference.<br />
The Law on <strong>Cooperation</strong> with Eastern<br />
3.2 Objectives framework<br />
and programme structure<br />
Overall goal<br />
Switzerland will support <strong>Serbia</strong>’s efforts towards<br />
European integration, by contributing to (1)<br />
improving social inclusion and reducing poverty,<br />
and (2) increasing the competitiveness of its<br />
economy.<br />
3.3 Economic Development<br />
(SECO and SDC)<br />
National priorities<br />
Within the <strong>Serbia</strong>n government’s numerous economic<br />
priorities, SECO and SDC will align with<br />
the following: maintaining macroeconomic sta-<br />
7
SWISS COOPERATION<br />
Sub-domain: business environment<br />
reform (SECO)<br />
Economic competitiveness depends on a conducive<br />
business environment. SECO will continue to<br />
promote new reforms, especially at the sub-national<br />
level in medium-sized municipalities, with<br />
an emphasis on implementing policies, enforcing<br />
the regulatory framework and building related<br />
capacities. Ten out of twenty leading municibility,<br />
improving the competitiveness of SMEs,<br />
employment creation and regionally-balanced<br />
economic development.<br />
Domain objectives (SECO/SDC)<br />
SECO and SDC’s domain portfolio contributes<br />
to (i) a functioning public and commercial financial<br />
sector, (ii) a conducive business environment<br />
and regulatory framework, (iii) strengthening the<br />
export potential of private enterprises, and (iv)<br />
SME-driven pro-poor market growth.<br />
Interventions in this domain will build on emerging<br />
needs and potentials in order to address the<br />
impact of the global economic crisis in a flexible<br />
manner.<br />
Sub-domain: financial sector support<br />
(SECO)<br />
The current macroeconomic imbalances impact<br />
directly on the public sector’s fiscal position, as<br />
well as the private sector’s access to finance.<br />
In the public domain, activities relate first and<br />
foremost to improving public financial management<br />
in order to optimize the use of increasingly<br />
scarce budgetary resources. It is expected<br />
that the resulting <strong>ch</strong>anges will have a positive<br />
effect on the country’s management of public<br />
finances – as monitored by Public Expenditure<br />
and Financial Accountability (PEFA) indicators<br />
– in terms of improved fiscal discipline, allocative<br />
efficiency, and operational performance. In<br />
addition, opportunities to help improve stability<br />
and integrity through regulatory measures will<br />
be explored.<br />
In the commercial domain, a sustained access<br />
to finance and related services for SMEs must be<br />
ensured. The main activity lines are (i) expanding<br />
financial intermediation in the banking and<br />
non-banking sectors and (ii) ensuring a greater<br />
depth of the financial sector and a stronger market<br />
infrastructure, in particular by restructuring<br />
the banking and insurance sectors. Measures to<br />
enhance the efficiency and effectiveness of payment<br />
transfers to <strong>Serbia</strong> will be explored further<br />
as opportunities arise. The specific contribution<br />
made by projects in this sub-domain will<br />
be measured in terms of employment creation,<br />
leverage, and the effects on the local economy.<br />
The government’s commitment to continue macro-economic<br />
stability policies and to restructure<br />
the banking and insurance sectors will be the<br />
crucial context variables to be monitored.<br />
8
SERBIA <strong>2010</strong>-<strong>2013</strong><br />
palities will be targeted in the short to medium<br />
term. Complementary activities will be explored<br />
at the national level.<br />
Interventions to enhance economic governance<br />
will include support for international standards<br />
and codes aimed at a sound institutional and<br />
market infrastructure.<br />
This sub-domain is aimed at producing direct<br />
improvements to generate competitive, transparent,<br />
and reliable regulatory environments at<br />
national and local levels, thereby allowing SMEs<br />
to formalize their operations, do more and better<br />
business, and create new jobs. The regular Foreign<br />
Investments Advisory Service/International<br />
Finance Corporation (FIAS/IFC) sub-national<br />
“Doing Business” surveys in selected ben<strong>ch</strong>mark<br />
municipalities will assess progress in relevant<br />
performance indicators. These surveys are co-financed<br />
by SECO. In addition, the government’s<br />
progress in implementing strategies su<strong>ch</strong> as the<br />
“regulatory guillotine” will be a core context<br />
development to be monitored.<br />
Sub-domain: trade cooperation (SECO)<br />
<strong>Serbia</strong>’s traditional, large current account deficit<br />
calls for growth in sectors with export potential,<br />
hence an increased competitiveness of exports.<br />
To allow <strong>Serbia</strong> to capitalize on its WTO membership<br />
– expected in <strong>2010</strong> and for whi<strong>ch</strong><br />
SECO’s support has been essential – trade-related<br />
deficiencies and opportunities are being<br />
addressed to increase the export potential of private<br />
enterprises. Main lines of intervention are (i)<br />
intellectual property rights through the enforcement<br />
of geographical indications (GIs); these are<br />
related to WTO-TRIPS and intended to designate<br />
product quality, highlight brand identity and preserve<br />
cultural traditions; (ii) the European retailers’<br />
programme for good agricultural products<br />
(GLOBALGAP) quality standard for export-oriented<br />
commercial agriculture; and (iii) export promotion<br />
for specific traditional agricultural products<br />
(in cooperation with SIPPO), as well as commodities<br />
and services with a high te<strong>ch</strong>nological<br />
value (development of specific export clusters).<br />
Expected outcomes are directly related to these<br />
activity lines. Exports by commercial entities<br />
whi<strong>ch</strong> introduce GIs and quality standards should<br />
increase measurably. The wider context must be<br />
monitored in terms of government policies and<br />
regulations that impact on the export industry.<br />
Sub-domain: making markets work for<br />
the poor/M4P (SDC)<br />
A systemic SME-focused market development<br />
approa<strong>ch</strong> is relatively new to <strong>Serbia</strong>. Consequently,<br />
the potential for alignment with existing<br />
policies and strategies is limited. SDC has<br />
begun rolling out the innovative “Making Markets<br />
Work for the Poor” (“M4P”) concept, whi<strong>ch</strong><br />
intends to develop market systems so that they<br />
function more effectively and, in particular, also<br />
9
SWISS COOPERATION<br />
10<br />
benefit the poor. To reduce regional imbalances,<br />
the focus of activities is to be in the southern and<br />
south-western regions, where five markets are to<br />
be developed. <strong>Cooperation</strong> with SDC and SECO<br />
activities in these regions – related to decentralization<br />
and local governance, as well as sub-national<br />
competitiveness – will be actively sought.<br />
This new SDC programme thus complements the<br />
SECO programme.<br />
The expected outcome is that systematic<br />
approa<strong>ch</strong>es to market growth will be introduced,<br />
with local facilitators in five markets in southern<br />
and south-western <strong>Serbia</strong>. This will, in turn, result<br />
in substantial growth in terms of job creation,<br />
SME turnover, and fiscal revenue generation.<br />
3.4 Rule of Law and<br />
Democracy (SDC)<br />
National priorities<br />
From the many priorities of central and local<br />
governments, SDC will selectively align itself with<br />
the following: the introduction of social inclusion<br />
policies, local-level institutional capacitybuilding,<br />
regional development, decentralization<br />
(including fiscal decentralization and municipal<br />
property divestment), municipal advocacy and<br />
lobbying capacities at the central government<br />
level, institutional capacity-building in the judiciary.<br />
Domain objectives (SDC)<br />
SDC’s domain portfolio contributes to (i) fostering<br />
vertical integration between municipal and<br />
central state levels and promoting popular rights,<br />
as well as municipal support programmes,<br />
increasing the absorption capacity for decentralized<br />
responsibilities and competencies while<br />
respecting good governance principles and ii)<br />
drafting and implementing the social inclusion<br />
agenda and judicial reform.<br />
Sub-domain: decentralization and local<br />
governance<br />
Municipal development remains the focus of the<br />
programme, whi<strong>ch</strong> will support the implementation<br />
of the recently-passed laws on municipalities,<br />
local self-government and regional development.<br />
Strategically, the programme will concentrate on<br />
(i) vertical integration and advocacy for municipalities’<br />
interests in central government and, (ii)<br />
strengthening management capacities and good<br />
governance practices of municipalities in line<br />
with their increasing tasks and responsibilities in<br />
the course of the current progressive decentralization<br />
in <strong>Serbia</strong>.<br />
SDC will provide an institutional support to the<br />
Standing Conference of Towns and Municipalities<br />
(SCTM), the association of <strong>Serbia</strong>n municipalities,<br />
with a view to contribute to improving<br />
interactions between the local and central levels
SERBIA <strong>2010</strong>-<strong>2013</strong><br />
of government, by enabling the SCTM to develop<br />
its advocacy function and implement its strategies<br />
and priorities.<br />
At the level of individual municipalities, the<br />
approa<strong>ch</strong> of working directly through local systems<br />
will be emphasized. The current level of<br />
harmonization with other donors must be maintained<br />
at least.<br />
Relevant context variables are i) the level of government<br />
commitment to decentralization, in particular<br />
related to a conducive legal framework,<br />
fiscal decentralization, as well as the transfer of<br />
municipal property and ii) the political willingness<br />
of municipalities to team up with the SCTM<br />
to advocate their interests at central level.<br />
Sub-domain: judicial reform and social<br />
inclusion<br />
While <strong>Serbia</strong> has already developed a national<br />
judicial reform strategy, implementation has not<br />
progressed in earnest, and there is a continued<br />
lack of public trust and confidence in the judiciary.<br />
The Ministry of Justice (MoJ) is aware of<br />
these shortcomings and has requested that the<br />
donor community supports the updating and<br />
implementation of the reform strategy. SDC has<br />
agreed to co-finance a World Bank multi-donor<br />
trust fund. The expected outcome is a national<br />
judicial reform action plan for implementation.<br />
At the explicit request of the government, SDC<br />
has agreed to provide institutional support to the<br />
Social Inclusion Unit, whi<strong>ch</strong> is responsible for<br />
drafting and implementing social inclusion policies<br />
jointly with line ministries, local governments<br />
and civil society. This follows on from the success<br />
of mainstreaming the poverty reduction strategy<br />
as part of the regular activities of all relevant<br />
governmental and non-governmental institutions.<br />
As a means of lifting marginalized groups<br />
out of poverty, social inclusion complements<br />
SDC’s domain portfolio, and progress monitoring<br />
in this regard is essential for EU candidate<br />
countries and member states alike.<br />
3.5 Education (SDC)<br />
National priorities<br />
From a broad range of government priorities,<br />
SDC will selectively align itself with the following:<br />
an enhanced quality of education, the inclusion<br />
of the vulnerable population (minorities and persons<br />
with special needs), and reforms to enhance<br />
the efficiency and relevance of education.<br />
Domain objectives (SDC)<br />
SDC’s domain portfolio contributes to (i)<br />
strengthening the capacities of the Ministry of<br />
Education (MoE) with regard to drafting and<br />
implementing EU-compatible, equality and quality-driven<br />
reforms and policies; it also supports<br />
the full integration and formalization of all components<br />
of in-service tea<strong>ch</strong>er training in the <strong>Serbia</strong>n<br />
compulsory education system, and (ii) the<br />
implementation of the national Roma inclusion<br />
action plan in education, through system development<br />
and lobbying for better integration in the<br />
government agenda.<br />
11
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12<br />
Sub-domain: education system<br />
development<br />
SDC will provide further institutional support<br />
to the MoE in building a system to improve<br />
the quality of compulsory s<strong>ch</strong>ooling in <strong>Serbia</strong>.<br />
Within the framework provided by the new law<br />
on basic education and the general education<br />
strategy, the MoE is being supported in its<br />
drafting and coordination of reform initiatives<br />
related to capacity building, the integration of<br />
quality standards and the decentralization of<br />
the education system, as well as planning, budgeting<br />
and monitoring.<br />
In compulsory education, SDC will continue to<br />
support the institutionalization of a nationwide<br />
in-service tea<strong>ch</strong>er training system at the regional<br />
and national levels. Main activity lines are (i)<br />
consolidating the network of regional centres,<br />
(ii) finalizing the relevant legislative frameworks<br />
and support for their full application, (iii)<br />
designing a system for professional tea<strong>ch</strong>ers’<br />
career development, and (iv) the vertical and<br />
horizontal strengthening of system monitoring<br />
and evaluation.<br />
Key context variables to be monitored are the<br />
political willingness to start decentralizing education<br />
systems to a certain extent and to adhere<br />
to key principles su<strong>ch</strong> as quality and efficiency in<br />
education and lifelong learning.<br />
Furthermore, an existing programme of s<strong>ch</strong>olarships<br />
for <strong>Serbia</strong>n students will be expanded,<br />
thereby contributing to improve <strong>Serbia</strong>’s international<br />
integration and access to international<br />
good practice.<br />
Sub-domain: Roma education<br />
The inclusion of minorities in general and the<br />
Roma in particular in the public education system<br />
is a recurring <strong>ch</strong>allenge in most countries of the<br />
region. In <strong>Serbia</strong>, SDC can build on substantial<br />
experience and expertise. As part of the government’s<br />
Roma action plan, models for pre-s<strong>ch</strong>ool,<br />
primary and secondary levels have been successfully<br />
developed and tested, and are now being<br />
implemented in 50 municipalities. The time is<br />
thus right to institutionalize and mainstream the<br />
system nationwide.<br />
Main activity lines are: (i) the strengthening of
SERBIA <strong>2010</strong>-<strong>2013</strong><br />
national and local capacities to implement the<br />
models, (ii) the introduction of best practices in<br />
regular curricula, (iii) ensuring skills development<br />
that is relevant to the job market, and (iv) designing<br />
reliable monitoring and evaluation tools.<br />
Activities are aligned directly with the education<br />
part of the government’s Roma action plan, and<br />
are harmonized effectively in the joint implementation<br />
plan.<br />
The government’s commitment to the social<br />
inclusion agenda is the key context variable to<br />
be monitored leading to a sustainable inclusion<br />
of minorities, and in particular the Roma, into<br />
the education system.<br />
3.6 Energy Efficiency and<br />
Renewable Energy (SECO)<br />
National priorities<br />
<strong>Serbia</strong>’s electricity generation and distribution<br />
systems are outdated. Generation relies heavily<br />
on fossil fuels (mainly coal), and there is no<br />
functioning incentive system for customers to<br />
save energy. Consequently, <strong>Serbia</strong> is one of<br />
Europe’s least energy efficient economies, requiring<br />
4-6 times more energy than EU countries<br />
for an equivalent output. <strong>Serbia</strong> is committed to<br />
address this situation and has passed legislation<br />
to this effect. Furthermore, in the process of EU<br />
integration, the government is carrying out regulatory,<br />
organizational and te<strong>ch</strong>nical preparations<br />
for <strong>Serbia</strong>’s inclusion in regional and European<br />
energy networks.<br />
Domain objectives (SECO)<br />
SECO’s domain portfolio corresponds to the<br />
reform effort undertaken by the <strong>Serbia</strong>n authorities<br />
by supporting projects that i) modernize<br />
power generation and improve energy efficiency<br />
and ii) introduce – as pilots – the use of renewable<br />
energy sources.<br />
Sub-domain: energy production and<br />
efficiency<br />
SECO will explore integrated approa<strong>ch</strong>es to<br />
increased efficiency in power generation, distribution<br />
and use. Demonstration projects are<br />
expected to comprise te<strong>ch</strong>nology transfers, financial<br />
incentives and information campaigns and<br />
may be accompanied by a policy dialogue with<br />
the authorities in <strong>ch</strong>arge, in order to increase<br />
their sustainability.<br />
Activities in this sub-domain will focus primarily<br />
on the electricity sector and, more specifically, on<br />
the modernization of the monitoring and control<br />
system at <strong>Serbia</strong>’s largest thermal power plant,<br />
as a part of a wider upgrade effort. Opportunities<br />
for further demonstration projects in this subdomain<br />
will also be explored.<br />
13
SWISS COOPERATION<br />
The expected outcome, in terms of measurably<br />
more reliable and efficient energy generation,<br />
distribution and/or use, is contingent on the government’s<br />
willingness to implement tariffs that<br />
reflect production and distribution costs, and<br />
the Electric Power Industry of <strong>Serbia</strong>’s ability to<br />
collect revenues from its consumers and reduce<br />
non-te<strong>ch</strong>nical losses.<br />
Another focus in this sub-domain will be an<br />
increase in energy efficiency in the transport sector.<br />
SECO will continue to consider assisting the<br />
provision of second-hand trams to public transport<br />
companies should su<strong>ch</strong> vehicles become<br />
available in Switzerland.<br />
3.7 Regional programmes,<br />
Swiss NGO programmes and<br />
migration<br />
In addition to the bilateral portfolios described<br />
above, SDC supports the following regional programmes:<br />
(1) the Swiss Cultural Programme (SCP);<br />
(2) the Scientific <strong>Cooperation</strong> Programme between<br />
Eastern Europe and Switzerland (SCOPES); (3) the<br />
Regional Resear<strong>ch</strong> Promotion Programme in Social<br />
Sciences (RRPP); (4) the Regional Police Programme<br />
(RPP); (5) the Roma Education Fund (REF) and (6)<br />
in micro finance the European Fund for Southeast<br />
Europe (EFSE).<br />
Some SECO projects are explicitly designed as<br />
regional programmes and implemented by<br />
international agencies su<strong>ch</strong> as IFC concurrently<br />
in <strong>Serbia</strong> and other western Balkan countries.<br />
Partners of SDC’s co-funding s<strong>ch</strong>eme for Swiss<br />
NGO programmes in <strong>Serbia</strong> are HEKS, the<br />
Pestalozzi Children’s Foundation and Swiss<br />
Labour Assistance.<br />
Given the importance of migration from the<br />
Western Balkans, Switzerland maintains migration<br />
partnership relations with several countries<br />
in the region, and SDC implements operational<br />
programmes funded by the FOM. The <strong>Serbia</strong><br />
migration programme concentrates on (i) institutional<br />
support at central government level to<br />
draw up migration management policies and<br />
build up related capacities, and (ii) the social<br />
and economic integration of vulnerable groups<br />
in southern and south-western <strong>Serbia</strong> in order to<br />
reduce irregular migration from these areas.<br />
14<br />
Sub-domain: renewable energy<br />
As part of a multi-donor approa<strong>ch</strong>, SECO will<br />
explore options for an innovative renewable<br />
energy demonstration project. This will make use<br />
of <strong>Serbia</strong>’s untapped renewable resources. Since<br />
hydropower has been known in <strong>Serbia</strong> for a long<br />
time, the focus will be on other renewable sources<br />
su<strong>ch</strong> as wind, biomass or solar energy.<br />
The expected outcome is the sustainable generation<br />
of energy from a renewable source, demonstrating<br />
one way that energy sources in <strong>Serbia</strong><br />
might be diversified.<br />
3.8 Transversal themes<br />
The <strong>Cooperation</strong> <strong>Strategy</strong> observes the two<br />
transversal themes of gender equality and good<br />
governance.<br />
A key element in gender is to address structural<br />
inequalities and the imbalance of power as both<br />
an aim and an essential part of development.<br />
Equal access to resources and services is to be<br />
promoted across all programmes to reduce existing<br />
discrepancies between the social inclusion of<br />
women and men.<br />
Good governance aims to create an environment<br />
in whi<strong>ch</strong> constitutionality and human rights, an<br />
appropriate division of power and macroeconomic<br />
stability are strengthened. Core good governance<br />
principles that must be implemented in the<br />
programmes are accountability, transparency, the<br />
right to information, non-discrimination and participation.<br />
These are likewise suitable “vehicles” to<br />
induce specific Swiss values into the portfolio.
SERBIA <strong>2010</strong>-<strong>2013</strong><br />
4. Strategic principles<br />
Aid arrangements: The Swiss cooperation programme<br />
will continue to align itself with the<br />
government’s national and sector-related strategies.<br />
An active role will be played in specific<br />
thematic coordination groups, and alliances<br />
will be sought with like-minded donors to<br />
contribute to the implementation of the Accra<br />
Agenda for Action. Synergies between bilateral<br />
and multilateral donors will be used to a<strong>ch</strong>ieve<br />
a greater leverage in policy dialogue. Programmes<br />
will increasingly be implemented via<br />
national systems, and aid arrangements su<strong>ch</strong><br />
as on-budget support and management for<br />
results will be promoted. In sectors like education,<br />
where Switzerland is the designated lead<br />
donor, SDC will be particularly active and play<br />
a strategic role.<br />
Complementary approa<strong>ch</strong>: A particular importance<br />
is atta<strong>ch</strong>ed to the coordination and selective<br />
harmonization with EU programmes, in<br />
order to ensure a complementary approa<strong>ch</strong> and<br />
to identify where Switzerland can provide an<br />
added value. The existing experience with joint<br />
SDC / EU programme financing in the Rule of<br />
Law and Democracy domain is an asset. In general,<br />
complementarity with the bi- and multilateral<br />
cooperation programmes of other donors<br />
helps to leverage limited Swiss funds. It enhances<br />
the potentials for synergies at a strategic level<br />
(policy influence) and for scaling up innovative<br />
operational approa<strong>ch</strong>es.<br />
Levels of intervention and geographic focus:<br />
Interventions are complementary at the central<br />
and local levels, and include policies, strategies,<br />
system development and implementation. A specific<br />
emphasis is given to the vertical integration<br />
between local and central programmes. Where<br />
local-level activities are concerned, SDC’s geographical<br />
focus remains on south-western and<br />
southern <strong>Serbia</strong> owing to these regions’ remoteness<br />
and relative underdevelopment. Both areas<br />
are also the origin of a substantial diaspora living<br />
in Switzerland. SECO`s instruments and<br />
interventions at the sub-national level will, whenever<br />
possible and feasible, also focus on these<br />
disadvantaged regions.<br />
Inclusion of minorities: The EU accession process,<br />
in particular the Lisbon and Copenhagen<br />
agendas, is the main incentive for integrating<br />
minorities more effectively and for increasing<br />
social inclusion in <strong>Serbia</strong>. With specific minorityfocused<br />
activities, and by concentrating on the<br />
south-western and southern regions, with their<br />
relatively important minority populations, Switzerland<br />
intends to sharpen its profile and use<br />
its particular expertise in this field. At the central<br />
government level, this intention translates into<br />
support for the social inclusion strategy. Locallevel<br />
instruments include, first and foremost, a<br />
focus on Roma education and efforts towards<br />
inclusive municipal services.<br />
15
SWISS COOPERATION<br />
5. Budget and programme<br />
management<br />
The overall Swiss programme budget for the<br />
period from <strong>2010</strong> to <strong>2013</strong> is approximately<br />
CHF 63 million. SDC plans with an annual<br />
budget of around CHF 7 million (without the<br />
contingent s<strong>ch</strong>olarship project). The envisaged<br />
distribution of the operational budget is<br />
approximately 45% for Education, 35% for Rule<br />
of Law and Democracy, and 20% for Economic<br />
Development. A separate budget is provided to<br />
SDC by the FOM to cover activities related to<br />
migration partnerships.<br />
SECO has allocated an annual budget of<br />
approximately CHF 8 million for <strong>Serbia</strong>. This<br />
does not include the financing of regional (e.g.<br />
SIFEM) and global programmes (e.g. the SECO<br />
Start-Up Fund) whi<strong>ch</strong> also target <strong>Serbia</strong>. Of its<br />
operational budget, some 60% are provisionally<br />
earmarked for Energy Efficiency and Renewable<br />
Energy and 40% for Economic Development.<br />
The following table provides an overview of the<br />
agencies’ budgets from <strong>2010</strong> to <strong>2013</strong>. Further<br />
details are given in Annex 1.<br />
The envisaged slight budget increase over the<br />
period as compared to the <strong>Cooperation</strong> <strong>Strategy</strong><br />
2007-2009 and new demands to improve<br />
the effectiveness and efficiency of programme<br />
management indicate that the current level of<br />
expatriate and local staff must be maintained, at<br />
least. Management staff, in particular, in <strong>ch</strong>arge<br />
of policy dialogue, the supervision of operations,<br />
and financial and human resources, should be<br />
kept at the current level. The delegation of additional<br />
tasks from head office to the field, as proposed<br />
in the SDC reorganization process, would<br />
require the corresponding human resources.<br />
Annual bilateral budgets<br />
(estimated disbursements in CHF million)<br />
By agency <strong>2010</strong> 2011 2012 <strong>2013</strong> Total<br />
SDC 7.0 7.0 7.0 7.0 28.0<br />
SECO 7.1 8.1 9.1 9.1 33.4<br />
FOM (SDC) 1.0 0.5 tbd tbd 1.5<br />
Total 15.1 15.6 16.1 16.1 62.9<br />
16
SERBIA <strong>2010</strong>-<strong>2013</strong><br />
6. Monitoring and controlling<br />
The monitoring and controlling system has three<br />
components and levels of observation:<br />
The first component monitors the general development<br />
of the country context. Its tasks are (1)<br />
to assess the development of the economic crisis<br />
and its effects on the social and political situation;<br />
and (2) to monitor the government’s activities<br />
in the selected domains and sub-domains.<br />
The second component monitors the actual<br />
programme implementation to assess whether<br />
(1) the desired outcomes have actually been<br />
a<strong>ch</strong>ieved in the sub-domains; (2) this has contributed<br />
to the country’s priorities being met; and<br />
(3) the programme is thus contributing to the<br />
<strong>Cooperation</strong> <strong>Strategy</strong>’s objectives.<br />
The third component monitors the efficiency and<br />
effectiveness of programme management, as well<br />
as the overall visibility and positioning of Switzerland<br />
in the donor and government context.<br />
Strategic steering is effected mainly through<br />
annual monitoring, reporting and planning, as<br />
well as operational reviews and evaluations.<br />
17
SWISS COOPERATION<br />
Annex 1: Swiss <strong>Cooperation</strong> <strong>Strategy</strong><br />
for <strong>Serbia</strong> <strong>2010</strong>-13<br />
Overall goal<br />
Switzerland will support <strong>Serbia</strong> in its efforts towards European integration, by contributing to (1) improving<br />
social inclusion and reducing poverty, and (2) increasing the competitiveness of its economy<br />
Domains<br />
Economic<br />
Development<br />
Rule of Law and<br />
Democracy<br />
Education<br />
Energy Efficiency<br />
and Renewable<br />
Energy<br />
National priorities<br />
– (macro-economic<br />
stability)<br />
– economic competitiveness<br />
– regional<br />
development /<br />
decreasing disparities<br />
– SME promotion<br />
strategy<br />
– (fiscal) de centra lization<br />
& regional<br />
develop ment, municipal<br />
property<br />
manage ment<br />
– democratic participation<br />
& popular rights<br />
– judicial reform<br />
– social inclusion<br />
policies (SIP)<br />
– quality of education<br />
(tea<strong>ch</strong> ing and<br />
learning)<br />
– equal access to<br />
education<br />
(Roma Action Plan)<br />
– EU-compatible<br />
reforms<br />
– SIP<br />
– construction and<br />
modernization of<br />
energy infrastructure<br />
SDC / SECO portfolio contributions<br />
SECO/SDC SDC SDC SECO<br />
Economic competitiveness<br />
enhanced and<br />
regionally<br />
balanced<br />
Municipal management<br />
and lobbying<br />
and selected central<br />
capabilities increased<br />
Quality and inclusiveness<br />
of education<br />
improved<br />
Sustainable energy<br />
generation and environmentally-conscious<br />
consumption<br />
enhanced<br />
– public and private<br />
financial sector<br />
strengthened<br />
– business environment<br />
& regulatory framework<br />
improved<br />
– trade and export<br />
potential increased<br />
– SME-driven pro poor<br />
domestic market<br />
growth in troduced<br />
– vertical integra tion<br />
of municipal and<br />
central state levels<br />
improved<br />
– municipal management<br />
and governance<br />
practices<br />
enhanced<br />
– judicial reform designed<br />
and action<br />
plan underway<br />
(co-financing)<br />
– social inclusion<br />
policies drafted and<br />
implementation underway<br />
(co-financing)<br />
– capacities for the<br />
design and implementation<br />
of reforms<br />
and professional<br />
de velopment system<br />
consolidated<br />
– inclusiveness of<br />
education system<br />
improved<br />
– reliable energy<br />
generation improved<br />
– energy efficiency<br />
increased<br />
– solutions for renewable<br />
energy supply<br />
introduced<br />
Transversal themes: gender & governance<br />
18
SERBIA <strong>2010</strong>-<strong>2013</strong><br />
Annex 2: Budget Details<br />
Planned disbursements (CHF millions)<br />
<strong>2010</strong> 2011 2012 <strong>2013</strong> Total<br />
SDC Economic Development 1.0 1.2 1.2 1.2 4.6<br />
SECO Economic Development 3.5 3.5 3.5 3.5 14.0<br />
SDC Rule of Law and Democracy 2.0 2.2 2.2 2.2 8.6<br />
SDC Education 2.9 2.5 2.5 2.5 10.4<br />
SECO<br />
Energy Efficiency and<br />
Renewable Energy<br />
3 4 5 5 17.0<br />
FOM via SDC Migration (inter-sector) 1.0 0.5 tbd tbd 1.5<br />
SDC SCO and Small Actions 1.1 1.1 1.1 1.1 4.4<br />
SECO SCO 0.6 0.6 0.6 0.6 2.4<br />
Total 15.1 15.6 16.1 16.1 62.9<br />
Bilateral Domain Budgets (CHF millions)<br />
Economic<br />
Development<br />
Rule of Law<br />
and<br />
Democracy<br />
Education<br />
Energy<br />
Efficiency<br />
and<br />
Renewable<br />
Energy<br />
Migration SCO Total<br />
SDC 4.6 8.6 10.4 4.4 28.0<br />
SECO 14.0 17.0 2.4 33.4<br />
FOM via<br />
SDC<br />
1.5 1.5<br />
Total 18.6 8.6 10.4 17.0 1.5 6.8 62.9<br />
19
SWISS COOPERATION<br />
Annex 3: Map of <strong>Serbia</strong><br />
20
SERBIA <strong>2010</strong>-<strong>2013</strong><br />
Annex 4: Monitoring System<br />
The <strong>Cooperation</strong> <strong>Strategy</strong> (CS) is subject to a systematic,<br />
ongoing Monitoring, basically serving a<br />
double purpose: (i) keeping on track the effectiveness<br />
and relevance of the Swiss portfolio (steering);<br />
(ii) accounting for results (reporting), mainly<br />
between Swiss <strong>Cooperation</strong> Offices and head offices,<br />
indirectly vis-à-vis external stakeholders as well.<br />
The applied monitoring concept basically consists<br />
of three levels of observation.<br />
a) country outputs and outcomes in fields relevant<br />
for the CS;<br />
b) Swiss portfolio outputs and outcomes;<br />
c) portfolio management by the Swiss <strong>Cooperation</strong><br />
Office (SCO).<br />
Additionally, an observation of <strong>ch</strong>anges in the<br />
wider development context (MERV) in [<strong>Serbia</strong>] is<br />
carried out, supporting an ongoing risks assessment<br />
for the Swiss portfolio.<br />
Monitoring of Country outputs and outcomes<br />
means verifying whether:<br />
• [<strong>Serbia</strong>] is moving towards the set objectives<br />
relevant for defined components of the CS<br />
(country level outputs and outcomes);<br />
• these objectives keep their validity or need to<br />
be revised (from the donor’s point of view);<br />
• the observed status of country outputs and<br />
outcomes provides a basis for a possible correlation<br />
with the Swiss portfolio outputs and<br />
outcomes.<br />
Monitoring of the Swiss portfolio outputs and outcomes<br />
means verifying:<br />
• whether the portfolio is evolving in line with<br />
the set objectives<br />
• whether the expected portfolio contributions to<br />
the country level keep their validity or need to<br />
be revised<br />
• if and how observed portfolio outputs and outcomes<br />
relate to country outputs and outcomes<br />
as possible contributions.<br />
Levels of observation for CS monitoring<br />
Contribution<br />
SCO<br />
Portfolio<br />
Management<br />
Swiss<br />
Portfolio<br />
Outputs &<br />
Outcomes<br />
Country-level<br />
outputs & outcomes<br />
(including specific context<br />
elements relevant to<br />
Swiss Portfolio)<br />
Wider Country<br />
Context<br />
(MERV/scenarios)<br />
Harmonisation<br />
Alignment<br />
21
SWISS COOPERATION<br />
Monitoring of the Portfolio Management by the<br />
SCO means verifying:<br />
• whether portfolio management supports result<br />
a<strong>ch</strong>ievement in the following dimensions:<br />
— approa<strong>ch</strong>es and strategies, including crosscutting<br />
issues;<br />
— relationship management;<br />
— aid modalities;<br />
— human resources;<br />
— learning and knowledge management;<br />
— allocation of financial resources<br />
— to what extent portfolio management<br />
relates to national processes<br />
— whether portfolio management is sensitive<br />
to risks and context/scenario development<br />
Assessing results and Reporting: The monitoring<br />
process for the CS is tied to the annual<br />
reporting and planning process and is under<br />
the responsibility of the SCO. As far as possible<br />
country outputs and outcomes are assessed jointly<br />
with the main stakeholder groups of the Swiss<br />
<strong>Cooperation</strong>. Project and programme implementing<br />
partners are included for the assessment<br />
of the Swiss portfolio outputs and outcomes.<br />
The monitoring is structured according to the<br />
main components of the CS. The key product<br />
of the monitoring process is the result statement,<br />
i.e. a critical overall assessment both on<br />
the extent and how the results are a<strong>ch</strong>ieved with<br />
an emphasis on plausible “output and outcome”<br />
and “portfolio to country level” contributions.<br />
Reporting on CS monitoring, overall assessment<br />
of performance, and steering decisions are done<br />
by the means of the Annual Report delivered by<br />
the SCO to SDC and SECO head offices.<br />
The Monitoring of the CS will be done against<br />
the following Result Framework (in synopsis),<br />
more detailed result frameworks per component<br />
or sub-component of the CS being elaborated<br />
separately.<br />
22
SERBIA <strong>2010</strong>-<strong>2013</strong><br />
Annex 5: <strong>Serbia</strong> at a Glance<br />
Europe & Upper<br />
Key Development Indicators Central middle<br />
<strong>Serbia</strong> Asia income<br />
( 2008)<br />
Population, mid-year (millions) 7.4 445 823<br />
Surface area (thousand sq. km) 77 23,972 41,497<br />
Population growth (%) -0.3 0.0 0.6<br />
Urban population (% of total population) 56 64 75<br />
Age distribution, 2007<br />
Male<br />
75-79<br />
60-64<br />
45-49<br />
Female<br />
GNI (Atlas method, US$ billions) 41.6 2,694 5,750<br />
GNI per capita (Atlas method, US$) 5,650 6,051 6,987<br />
GNI per capita (PPP, international $) 10,220 11,116 11,868<br />
GDP growth (%) 5.6 6.8 5.8<br />
GDP per capita growth (%) 5.7 6.7 5.1<br />
(most recent estimate, 2003–2008)<br />
30-34<br />
15-19<br />
0-4<br />
10<br />
5 0 5 10<br />
percent<br />
Poverty headcount ratio at $1.25 a day (PPP, %) .. 5 ..<br />
Poverty headcount ratio at $2.00 a day (PPP, %) .. 11 ..<br />
Life expectancy at birth (years) 73 69 70<br />
Infant mortality (per 1,000 live births) 7 23 22<br />
Child malnutrition (% of <strong>ch</strong>ildren under 5) .. .. ..<br />
Adult literacy, male (% of ages 15 and older) 97 99 94<br />
Adult literacy, female (% of ages 15 and older) 96 96 92<br />
Gross primary enrollment, male (% of age group) 99 98 112<br />
Gross primary enrollment, female (% of age group) 99 96 109<br />
Under -5 mortality rate (per 1,000)<br />
60<br />
50<br />
40<br />
30<br />
20<br />
10<br />
Access to an improved water source (% of population) 99 95 95<br />
Access to improved sanitation facilities (% of population) .. 89 83<br />
0<br />
1990 1995 2000 2006<br />
<strong>Serbia</strong><br />
Europe & Central Asia<br />
Net Aid Flows 19 8 0 19 9 0 2000 2008<br />
(US$ millions)<br />
Net ODA and official aid .. .. 1,134 1,586<br />
Top 3 donors (in 2006):<br />
European Commission .. .. 471 334<br />
.. .. .. ..<br />
.. .. .. ..<br />
Aid (% of GNI) .. .. .. ..<br />
Aid per capita (US$) .. .. .. ..<br />
Long-Term Economic Trends<br />
Consumer prices (annual % <strong>ch</strong>ange) .. .. 70.0 11.7<br />
GDP implicit deflator (annual % <strong>ch</strong>ange) .. .. 79.3 13.5<br />
Ex<strong>ch</strong>ange rate (annual average, local per US$) .. .. 44.4 55.7<br />
Terms of trade index (2000 = 100) .. .. .. ..<br />
15<br />
10<br />
5<br />
0<br />
-5<br />
-10<br />
-15<br />
-20<br />
-25<br />
-30<br />
-35<br />
1980–90 1990–2000 2000–08<br />
(average annual growth %)<br />
Population, mid-year (millions) 7.7 7.6 7.7 7.4 .. 0.1 -0.5<br />
GDP (US$ millions) .. .. 8,963 50,061 .. -4.7 5.4<br />
(% of GDP)<br />
Growth of GDP and GDP per capita (%)<br />
1995 2005<br />
Agriculture .. .. 20.6 10.8 .. .. ..<br />
Industry .. .. 31.4 23.7 .. .. ..<br />
Manufacturing .. .. .. .. .. .. ..<br />
Services .. .. 48.1 65.5 .. .. ..<br />
Household final consumption expenditure .. .. 88.7 78.1 .. .. ..<br />
General gov't final consumption expenditure .. .. 18.9 21.3 .. .. ..<br />
Gross capital formation .. .. 8.4 23.4 .. .. ..<br />
Exports of goods and services .. .. 23.0 29.7 .. .. ..<br />
Imports of goods and services .. .. 39.1 52.4 .. .. ..<br />
Gross savings .. .. 3.7 6.2<br />
GDP<br />
GDP per capita<br />
23
SWISS COOPERATION<br />
Balance of Paymenta and Trade<br />
2000<br />
2008<br />
Governance indicators, 2000 and 2007<br />
(US$ millions)<br />
Total mer<strong>ch</strong>andise exports (fob)<br />
Total mer<strong>ch</strong>andise imports (cif)<br />
Net trade in goods and services<br />
Current account balance<br />
as a % of GDP<br />
1,645<br />
3,227<br />
-1,441<br />
-153<br />
-1.7<br />
10,842<br />
21,997<br />
-11,404<br />
-8,557<br />
-17.1<br />
Voice and accountability<br />
Political stability<br />
Regulatory quality<br />
2007<br />
2000<br />
Workers’ remittances and<br />
compensation of employers (recepts)<br />
1,132<br />
4,579<br />
Rule of law<br />
Control of corruption<br />
Reserves, including gold<br />
Central Government Finance<br />
(% of GDP)<br />
Current revenue (including grants)<br />
Tax revenue<br />
Current expenditure<br />
524<br />
32.4<br />
29.1<br />
29.8<br />
11,477<br />
40.9<br />
35.8<br />
39.0<br />
Source: Kaufman Kraa Mastruzzi, World, NY Bank<br />
0 25 50 75 100<br />
Country's percentile rank 0-100<br />
(higher values implay better ratings)<br />
Overall surplus/deficit<br />
-0.2<br />
-2.5<br />
Te<strong>ch</strong>nology and Infrastructure<br />
2000<br />
2007<br />
Highest marginal rate (%)<br />
Individual<br />
Corporate<br />
External Debt and Resource Flows<br />
..<br />
..<br />
15<br />
10<br />
Paved roads (% of total)<br />
Fixed line and mobil phone<br />
subscribers (per 100 people)<br />
High tecnology exports<br />
(% of manufactured exports)<br />
62.7<br />
4<br />
9<br />
3.2<br />
..<br />
107<br />
4.3<br />
(US$ millions)<br />
Total debt outstanding and disbursed<br />
Total debt service<br />
Debt relief (HIPC, MDRI)<br />
10,830<br />
-65<br />
−<br />
30,708<br />
-4,927<br />
−<br />
Environment<br />
Argicultural land (% of land area)<br />
Forest area (% of land area)<br />
Nationally protected areas (% of land area)<br />
..<br />
..<br />
..<br />
..<br />
..<br />
..<br />
Total debt (% of GDP)<br />
Total debt sevice (% of exports)<br />
120.8<br />
-1.9<br />
63.6<br />
-24.2<br />
Freshwater resources paer capita (cu. meters)<br />
Freshwater withdrawal (% of internal resources)<br />
..<br />
..<br />
..<br />
..<br />
Foreign direct investment (net inflows)<br />
Portfolio equity (net inflows)<br />
145<br />
..<br />
2,717<br />
-132<br />
CO2 emission per capita (mt)<br />
..<br />
..<br />
Composition of total external debt, 2008<br />
Short-term,<br />
3,417<br />
IBRD,<br />
2,237<br />
IDA,<br />
650 IMF,<br />
0<br />
GDP per unit of energy use<br />
(2005 PPP $ per kg of oil equivalent)<br />
Energy use per capita (kg of oil equivalent)<br />
World Bank Group portfolio<br />
..<br />
..<br />
2000<br />
..<br />
..<br />
2007<br />
Other mulilateral,<br />
1,665<br />
(US$ millions)<br />
Private,<br />
19,578<br />
Bilateral,<br />
3,161<br />
IBRD<br />
Total debt outstanding and disbursed<br />
Disbursements<br />
Principal repayments<br />
Interes payments<br />
1,538<br />
−<br />
−<br />
104<br />
2,364<br />
−<br />
2<br />
302<br />
US$ millions<br />
Private Sector Development<br />
2000<br />
2008<br />
IDA<br />
Total debt outstanding and disbursed<br />
Disbursements<br />
Total debt service<br />
0<br />
202<br />
1<br />
627<br />
94<br />
5<br />
Time required to start a business (days)<br />
Cost to start a business (% of GNI per capita)<br />
Time required to register property (days)<br />
Ranked as a major constraint to business<br />
(% of managers surveyed who agreed)<br />
n.a.<br />
n.a.<br />
Stock market capitalization (% of GDP)<br />
Bank capial to asset ratio (%)<br />
−<br />
−<br />
−<br />
2000<br />
..<br />
..<br />
4.6<br />
18.3<br />
2<br />
73.6<br />
111<br />
2007<br />
..<br />
..<br />
59.7<br />
15.9<br />
IFC (fiscal year)<br />
Total disbursed and outstanding portfolio<br />
of whi<strong>ch</strong> IFC own account<br />
Disbursements for IFC own account<br />
Portfolio sales, prepayments and<br />
repayments for IFC own account<br />
MIGA<br />
Gross exposure<br />
New guarantees<br />
−<br />
−<br />
−<br />
−<br />
−<br />
−<br />
249<br />
249<br />
8<br />
525<br />
−<br />
−<br />
24