Public Administration in Kosovo

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Draft Discussion Paper

Public Administration in Kosovo
Situational Analysis & Strategy

Department of Economic and Social Affairs Division for Public Administration and Development Management United Nations, New York

25th July 2003

Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

Table of Content
Page Executive Summary

1.

Introduction

1

2.

Public Administration System 2.1 Analytical Framework

3 4

3.

Situational Analysis 3.1 Enabling Environment 3.2 Institution Building 3.3 Human Resources Development

8 8 14 23

4.

Public Administration Strategy

27

5.

Management of the Reform Process

37

6.

Suggested Next Steps

38

7.

List of Recommendations

39

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

Acronyms
AD CB CF CIDA COEDM CSL DCSA DCSA DFID EAR ED EN EU FSU GGB ICA JIAS KCB KEK KIPA KRA KTA MPS MTEF NPM OBK OHCHR OLSS OPM OSCE OSPP PIAU PIO PIS PISG SBPA SIDA SPU SRSG TC TOR UNDESA UNDP UNMIK UNSCR 1244 USAID Administrative Direction Consolidated Budget Constitutional Framework Canadian International Development Agency Council of Europe Decentralization Mission Civil Service Law Department of Civil Service Administration Department of Civil Service Administration Department for International Development European Agency for Reconstruction Evaluation Document Explanatory Note European Union Financial Strategy Unit General Government Budget Institute of Civil Administration Joint Interim Administrative Structure Kosovo Consolidated Budget Kosovo Electric Company Kosovo Institute of Public Administration Key Results Area Kosovo Trust Agency Ministry of Public Services Medium-term Expenditure Framework New Public Management Oversight Board of Kosovo Office of the High Commissioner for Human Rights Office of Legal Support Services Office of the Prime Minister Organization for Security and Cooperation in Europe Office for Strategic Policy and Planning Program Implementation Advisory Unit Principal International Officer personnel information system Provisional Institutions of Self-Government Steering Board on Public Administration Swedish International Development Agency Strategic Planning Unit Special Representative of the Secretary General Transfer Council terms of reference United Nations Department of Economic and Social Affairs United Nations Development Programme United Nations Interim Mission in Kosovo United Nations Security Council Resolution 1244 United States Agency for International Development

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

Executive Summary
1. The Civil Administration Pillar of the United Nations Interim Mission in Kosovo (UNMIK) and the Provisional Institutions of Self-Government (PISG) decided in early 2003 to embark on a process to formulate a public administration strategy for Kosovo. This decision was very much influenced by the findings and conclusions of a series of meetings that took place in late 2002. A delegation of PISG leaders, headed by Mr. Bajram Rexhepi, Prime Minister, had visited the United Nations Department of Economic and Social Affairs (UNDESA) in New York from 15th –16 th October and participated in a roundtable meeting on the strengthening of the public administration system in Kosovo; a donor conference, organized by UNMIK in cooperation with the World Bank and the European Union in Brussels on 5 th November had placed the strengthening of the public administration system at the center of a growth-oriented development strategy for Kosovo; and a seminar on civil administration, organized by UNMIK (civil administration) in Kosovo from 29 th–30th November had also highlighted the need to consolidate ongoing and future initiatives in this area within a strategic framework. UNDESA was formally requested by UNMIK (civil administration) in January 2003 to assist local partners in the development of the public administration strategy. This Discussion Paper has been prepared as a background document for a stakeholders’ workshop to be convened by UNMIK (civil administration) and the PISG in September in Kosovo. The primary purpose of the paper is to facilitate a systematic process of exploration, discussion and decisionmaking on the next set of public administration-related reform initiatives in Kosovo. Much progress has been achieved over the past four years under the leadership of UNMIK in promoting political, economic and institutional development in post-conflict Kosovo - often under the most challenging circumstances. Following the adoption of the UNSCR 1244, UNMIK embarked on a major program to develop a new legal, policy and regulatory framework for civil service management. This framework has generally been designed based on good European standards for public sector management. UNMIK has also systematically transferred more than 60 per cent of public administration to the PISG, including control over the relevant budgets. These are no small accomplishments, considering the complexities of the inherited conditions. A unique feature of the public sector system in post-conflict Kosovo is that it requires transformational change from the earlier mode of administration. While transformation is required, not all systems and capacities will need to be developed from scratch. There is also the risk that some reform initiatives may fail to take sufficient account of the intrinsic biases and legacies of the previous system. A public sector tr ansformation, on the scale required in Kosovo, will take time and demand patience and perseverance, as well as clarity of vision, strong sense of direction and committed and consistent leadership, and significant amount of resources. A three-level capacity building framework, focusing on (a) the enabling environment, (b) institution building, and (c) human resources development, was used to assess the strengths and weaknesses of the current public administration system in Kosovo. The key findings and recommendations of this review are summarized here below. Enabling Environment The new legal, policy and regulatory framework developed for civil service management in Kosovo includes the Constitutional Framework (Regulation 2001/9), Executive Branch of PISG (Regulation 2001/9), Kosovo Civil Service Law (Regulation 2001/36), Administrative Direction (2003/2), and the Kosovo Local Government Law (Regulation 2000/45). While this framework has been developed based on good European standards, Regulations 2001/36 and 2000/45 only provide the basic legal infrastructure for civil service management at the central and municipal levels. This legal framework will need further strengthening in the near future, both in terms of the range of issues covered, but also to eliminate ambiguities in the interpretation of the two laws. It is particularly important to sharpen the delineation of powers and responsibilities between the two tiers of self-government, as well as to clarify the meaning of the term “central authority”, referred to in UNMIK Regulation 2000/45. It is recommended that a review be undertaken of the legal and policy framework

2.

3.

4.

5.

6.

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

governing civil service management at both central and municipal level in Kosovo, as soon as feasible. 7. The PISG manifesto, adopted by the Kosovo Assembly in May 2002, commits the government to undertake a legislative campaign to promote transparency and accountability in governance. The existing legal and policy framework in Kosovo is weak when it comes to the promotion of transparency, accountability and integrity in public sector management. The PISG, for example, has not yet adopted a comprehensive Kosovo-wide integrity system or anti-corruption strategy. The overall objective of establishing a firm legal code against corruption is to ensure that corruption is not a ‘low risk, high profit’ activity but rather the opposite – a ‘high risk, low profit’ venture. To deter corrupt practices in public administration, a comprehensive set of laws is generally required, comprising most, if not all, of the following: (a) law that criminalizes the offering and soliciting, and the giving and accepting, of a bribe; (b) law that enables the tracing, seizure, freezing and forfeiture of the illicit earnings from corruption; (c) law that requires the regular declaration of the assets, income, liabilities and life-styles of decision-makers and other public officials who hold positions where they transact with the public and are well-placed to extract bribes; (d) law to identify, and prevent or resolve conflict of interests; (e) “whistleblower” legislation to protect employees who notify authorities of corruption from civil, criminal and disciplinary proceedings and retaliatory action by their employer; (f) law to enable the citizen to obtain information in the possession of the state, i.e. Access to Information Act; (g) constitutionally entrenched Bill of Rights that recognizes the rights of citizens to freedom of expression, assembly and association; (h) strong recovery mechanism under the civil law (as distinct from the criminal law). While the Kosovo Assembly has passed a Freedom of Information Act, and a draft Law on Financial Disclosure has been prepared, none of the other above -cited legal instruments have so far been enacted. A common practice around the world is for governments to issue green and white papers in advance of legislative proposals. The idea is not only to inform stakeholders, particularly members of Parliament, about the main principles and content of forthcoming legislation but also t solicit o their inputs and advice. The PISG may wish to consider adopting this useful practice in the formulation of new policies in Kosovo. Taking into account the heavy politicisation of government institutions in Kosovo, a notable weakness of the existing public administration system is the poor state of oversight bodies. Although both Auditor General and Ombudsman offices have been set-up, they are still at a very nascent stage of institutional development, with the post of Auditor General yet to be filled. The Kosovo Civil Service Regulation 2001/36 also provides for the establishment of the Oversight Board of Kosovo (OBK) to ensure that selection and recruitment of civil servants is based on the merit principle. The OBK, however, has not yet been established, which has undermined transparency and accountability of the recruitment process in the civil service.

8.

9.

10. Oversight bodies can only be effective if fully independent from the executive, adequately resourced and staffed with qualified employees. Ove rsight institutions stand little chance of success without these three prerequisites. The funding of constitutional bodies should also be secure by law to further strengthen their independence from the Executive. The status of oversight bodies within the governance system is a good indicator of political commitment towards high ethical standards in public management. An effective institutional set-up to promote oversight of the Executive would generally consist of the following: (a) independent commission against corruption charged with the implementation of anti-corruption legislation. The independent commission should report to the legislature. An anti-corruption agency that is not fully independent may find it difficult to provide adequate checks and balances of the Executive; (b) independent prosecuting agency; (c) independent, impartial and informed judiciary; (d) Auditor-General with responsibility for auditing government income and expenditure; (e) Office of Contractor General to provide oversight of government procurement and contracting. Like other ‘watchdog’ agencies, this office should be independent of the executive; and (f) Ombudsman who receives and investigates allegations of mal-administration. The only oversight bodies established so far in Kosovo are the Office of the Auditor General and the Office of the Ombudsman.

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

11. One of the principal functions of parliament is to provide oversight of the executive on behalf of the public. In post-conflict Kosovo, the Assembly assumes a particularly important role in the governance system because it is composed of all major ethnic groups in society. The public scrutiny to which the Assembly subjects the Executive, through debate and question time, promotes both transparency and accountability in governance and more effective use of public resources. Portfolio committees of the Kosovo Assembly have a particularly important role to play in oversight of the Executive. Strengthening the capacity of portfolio committees to provide financial and programmatic ove rsight of the PISG can further enhance the quality of the governance system in Kosovo. In addition, it is suggested that special committees be set up in the Legislature to participate in the process of developing the various laws proposed in the draft public administration strategy. 12. As executive functions are gradually handed over to local staff, UNMIK (civil administration) will be expected to strengthen its oversight and advisory role of the public administration. A structured oversight framework that enables UNMIK to regularly monitor and evaluate the progress in creating sustainable institutions and systems, will be required to promote efficient transfer of line functions from internationals to local staff. In addition to its oversight role, UNMIK (civil administration) should also have the capacity to provide strategic and substantive advice to central and local institutions to help set up proper administrative systems, such as directives, rules, regulations, guidelines, manuals etc. for the functioning of ministries and municipal administrations. Institution Building 13. The continued existence of parallel administrative structures in post-conflict Kosovo challenges the day-to-day operations of some ministries and municipalities, particularly in the areas of education, health and administrative services. Integration of all structures under a joint UNMIK-PISG authority is critical for the implementation of a strategy to strengthen the public sector in Kosovo. Ongoing efforts by UNMIK to negotiate an agreement with the authorities in Belgrade on this important issue need to be supported by all stakeholders. 14. The representation of minorities in the civil service remains also highly inadequate at all levels, or approximately 8 per cent in the central government and significantly lower at the local level. The Executive Branch Regulation (2001/19), stipulates that the civil service should comprise about 15 per cent Kosovars-Serbs and 10 per cent from other minority communities. As a matter of priority, UNMIK and PISG should ensure that the goals of equitable representation of all communities in governing institutions are fully achieved. 15. Based on consultations between UNMIK (civil administration) and relevant stakeholders in October 2001, it was decided that the organizational structures of ministries would consist of the following administrative units: departments, divisions, sections and units. The implementation of this standardized structure, however, has not been as consistent as envisaged. The result has been the creation of structures, which, in some cases, are not even compatible with the conventional organization of government. There are ministries, for example, that are organized into ten departments, which by any standard, would create an inordinately long span of control for ministers and permanent secretaries. Weak harmonization of structures of ministries has also led to the creation of more than 1.200 job designations in the civil service. At the earliest, MPS should issue an Administrative Direction that defines the structural taxonomy of ministries. The management of ministries could also be further strengthened by the establishment of Management Boards, appointed by the respective Minister and composed of the Permanent Secretary and all Directors of the ministry. 16. Most municipalities have put in place the necessary structures and procedures essential for effective functioning of these bodies, including a statue; rules and procedures for the conduct of meetings; financial management systems and procedures; and establishment of the mandatory committees. While the basic legal, policy and institutional infrastructure has been put in place, the performance of municipalities has so far been quite uneven for various reasons. In some municipalities, for example, assembly and/or committee proceedings are characterized by intense political and personal rivalry, often irrelevant to the actual business of local self-government. It is

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

felt that the performance of many municipal assemblies, as well as the Boards of Directors, has not met expectations so far. Municipalities have also to a very limited extent engaged local citizens in consultations on important policy and work planning issues. 17. Generally, the functioning of municipal assemblies could be improved by better-prepared and conducted meetings, including providing documents on time; greater public input into policy deliberations; more efficient secretariat services; enhanced work of committees; and better links with outlying villages. Municipalities also regularly suffer from lack of professionalism in public administration; absence of essential rules for the functioning of the assembly secretariat; guidelines for the establishment of portfolio committees; inadequate administrative systems and infrastructure; weak management; insufficient understanding of assembly members of their roles and responsibilities; and poor institutionalization of the principles of transparency and accountability in public management 18. There is also lack of effective institutional capacity to formulate, coordinate and evaluate strategic policy options in the civil service in Kosovo. To address this capacity constraint, a proposal has been developed to set up an Office of Strategic Policy and Planning (OSPP). The OSPP would consist of three divisions/units, namely, a Program Implementation Advisory Unit (PIAU), a Strategic Planning Unit (SPU), and a Financial Strategy Unit (FSU). The PISG, as soon as possible, should establish the OSPP within the Office of the Prime Minister. The primary role of this office would be to track the implementation of the PISG program; to provide the cabinet with evidence-based policy analysis of challenges facing the long-term prospects of Kosovo; and to undertake strategic financial analysis of the overall policy planning process. 19. Citizens’ charters, service and quality standards, performance contracts, report cards and complaint centers are some of the innovations recently introduced in a number of countries to promote greater accountability of pu blic organizations and senior officials to citizens. Client surveys, published benchmarks, value-for-money studies and codes of conducts are other examples of reforms to alter the relationship between civil servants and the public. Contracting out service delivery to private firms or civil society organizations has also become increasingly popular by governments as a mechanism to improve cost-effectiveness in the provision of public goods. PISG may wish to study whether there are certain areas of service delivery, where enhanced competition could improve cost-effectiveness and client satisfaction. 20. While the legal, policy and regulatory system for human resources management (HRM) in Kosovo has generally been developed based on good European standards there is evidence of low level of compliance by PISG ministries with key aspects of this framework. The challenges experienced in institutionalising a modern HRM framework underline the inherent difficulties in creating from scratch a transparent and rule-based system in an environment where public administration had for a long time been based on a very different tradition. It is therefore of great importance to strengthen both oversight and compliance mechanisms (e.g. OBK) in the public service in order to change deep-rooted behavioral patterns of civil servants. It should also be a priority to strengthen the functioning of HRM units in ministries and municipalities, as they play a key role in ensuring that personnel standards are adhered to. 21. The planned pay and grading review should develop concrete proposals to better link pay and career progression with a formal performance appraisal mechanism in order to promote greater wage de-compression in the public sector. In Kosovo, it’s particularly important to improve the conditions of service for senior officials who formulate policies and direct their implementation. In addition, the PISG and UNMIK could consider the creation of a Public Sector Remuneration Review Board to advise the self-government on salary and wage policies for civil servants. Other key priorities should include the full establishment of KIPA; finalization of a Personnel Manager Handbook; the development and installation of a personnel information system in ministries and municipalities; creation and intensive capacity development of HRM units in municipalities; major capacity building of the Department of Civil Service Administration (DCSA) as the center of modern and professional personnel policy development in the civil service; establishment of a university program in public administration; and training of ministers, permanent secretaries, as

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

well as municipality presidents and CEOs in their respective roles in the public administration system. 22. There is also need to build up strong administrative and financial management systems in the public service. At the earliest, the PISG, with technical support from UNMIK (civil administration), should develop handbooks for administrative and financial management in the civil service. UNMIK should particularly strengthen the capacity of those central departments charged with the development of administrative, human resources and financial management standards, rules, procedures and capacity building material. PISG should also invest in the development of sound systems for monitoring, accounting and auditing. An important prerequisite for effective transfer of responsibilities from international staff to locals is the existence of clear rules and procedures for the executive functions of government, including mechanisms to ensure compliance. Much work needs to be undertaken in this area in order to strengthen transparent public administration in Kosovo. 23. Effective application of information technology can help to strengthen the efficiency and common identity of the Kosovo civil service. The formulation of an e-government strategy could become an integral part of a comprehensive IT transformational process in Kosovo. Human Resources Development 24. The UNMIK-PISG capacity development strategy, adopted in April 2001, requires departments to recruit or appoint citizens of Kosovo to all senior and middle level posts in the civil service, and to systematically transfer substantive responsibilities and authority to them from international staff. The availability of qualified senior and middle level managers, however, is likely to remain a key constraining factor for the realization of this strategy, particularly in the short-term. This highlights the importance of investing in capacity building of existing staff. To promote more strategic development of the human capital in the civil service, it is recommended that the PISG prepare a manpower plan for the next 5-10 years. 25. The ability of PISG to attract and retain a fair share of the best talent is essential for long-term development prospects of Kosovo. In this context, the PISG needs to examine a range of relevant issues, including review of salaries and incentives in the public service, within the relevant budget constraint; redesign of career paths; and changing the image of the public sector in order to attract talented individuals into managerial and policy-making functions in government. It is recommended that PISG formulate a specific strategy to attract a fair share of the best talent into managerial and policy-making positions in the civil service. 26. The recently conducted training needs assessment study provides very useful baseline information for capacity development and training in the civil service. The study identified six generic priority areas f r training, namely, (a) public administration (role and responsibility, good governance, o service management and delivery), (b) legal framework (new Kosovo laws and regulations), (c) economy and finance (budget procedures, general financial procedures), (d) human resources issues (appraisal, recruitment and procedures, coaching), (e) management (strategic, operational), (f) communications. Based on feedback from stakeholders, the training needs assessment study should be revised, as needed, and adopted, as the framework for capacity development in the public sector in Kosovo. 27. Of all public sector employees, administrative support staff is generally in most need of capacity development. More investment should also be made in leadership and change management training of managers and senior officers, including increased exposure to ‘best practices’ in other countries. Most ministries and municipalities similarly suffer from lack of specialized expertise to formulate cost effective policies and regulations. In addition, PISG should make special efforts to strengthen the technical and consultative skills of staff in policy units in ministries and municipal administrations. 28. The poor motivation and work ethic of some public servants is a major factor in reducing the overall efficiency of the civil service in Kosovo. Professionalization of the civil service should be accorded

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

high priority in the next phase of the public administration reform program. The concepts of transparency, accountability and efficiency in public management, for example, need to be much better understood by both managers and staff of ministries, municipalities and agencies. Public Administration Strategy 29. This report provides approximately seventy recommendations to further strengthen the public administration system in Kosovo. It is proposed that the Steering Board for Public Administration (SBPA) would assume the main responsibility for executive direction and guidance of the design and implementation of the public administration strategy. A full-time Technical Secretariat, headed by a civil servant at the Permanent Secretary level, could provide day-to-day coordination of the reform process, including the development of an output-based implementation plan, specifying the short, medium, and long-term priorities. The SBPA would be expected to discuss and approve the implementation plan. It is also proposed that three working groups be established under the SBPA to deal with (a) policies, (b) institution building, and (c) human resources development. Each working group could form sub-groups, as needed. Based on the situational analysis and to facilitate constructive discussions at the stakeholders’ workshop, the following components and sub-components are suggested as priority areas of the public administration strategy:
1. Legal, Policy & Regulatory Reform
Civil service management Local government Accountability, transparency & integrity Vision statement Salaries & incentives Career system Civil society development Cabinet decision-making Policy coordination Aid coordination & management Central-municipality relations Monitoring & evaluation

§ § § § § § § § § § § §

4.

§ § § § § § §

Civil Service Management

Functional analysis Systems & procedures Performance management Service charters, client surveys & report cards E-government strategy Rules for executive business of government Codes of conduct

2.

Executive & Central Management

5.
§ § §

Human Resources Development
Manpower planning & human resources development Staff training Human resources management units Kosovo Institute of Public Administration

§
6.
§ §

3.
§ § § § §

Executive Oversight
Auditor General Ombudsman Office Oversight Board of Kosovo Independent Commission Against Corruption Kosovo Assembly

Management & Coordination
Steering Board on Public Administration Communications & information

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

1.

Introduction

The Civil Administration Pillar of the United Nations Interim Mission in Kosovo (UNMIK) and the Provisional Institutions of Self-Government (PISG) decided in early 2003 to embark on a process to formulate a public administration strategy for Kosovo. This decision was very much influenced by the findings and conclusions of a series of meetings that took place in late 2002. A delegation of PISG leaders, headed by Mr. Bajram Rexhepi, Prime Minister, had visited the United Nations Department of Economic and Social Affairs (UNDESA) in New York from 15th –16 th October and participated in a roundtable meeting on the strengthening of the public administration system in Kosovo; a donor conference, organized by UNMIK in cooperation with the World Bank and the European Union in Brussels on 5th November had placed the strengthening of the public administration system at the center of a growth-oriented development strategy for Kosovo; and a seminar on civil administration, organized by UNMIK (civil administration) in Kosovo from 29 th –30 th November had also highlighted the need to consolidate ongoing and future initiatives in this area within a strategic framework. UNDESA was formally requested by UNMIK (civil administration) in January 2003 to assist local partners in the development of the public administration strategy. The formulation of the public administration strategy is particularly intended to achieve the following: to consolidate ongoing and planned initiatives within a coherent strategic framework; to galvanize commitment of stakeholders to the agreed framework; to facilitate dialogue amongst stakeholders on important public administration-related issues; to promote enhanced resource flows for the strengthening of the public administration system; and to mobilize support of development partners for the efforts of UNMIK and the PISG in this area. An important objective of this exercise is to secure ownership of the strategy through active participation of stakeholders. The role of UNDESA is mainly to provide technical support to Kosovar stakeholders and international development partners. The development of the strategy will involve a thorough self-examination and assessment by all the relevant stakeholders in the Kosovo. The process will include the following steps: preparation of a situational analysis to provide baseline information on the challenges facing the public sector in Kosovo; design of a draft strategy for strengthening the public administration system; organization of a stakeholders’ workshop to discuss the draft situational analysis and the proposed strategic priorities; convening of stakeholders’ events to discuss the revised draft strategic framework for public administration strengthening; and finalization of the strategy document based on inputs from various consultations, including wide dissemination to stakeholders and others interested in public sector reform. To initiate the preparation of the situational analysis and the strategy formulation process, UN/DESA undertook a fact-finding mission to Kosovo from 12 th to 18th April 2003. The team was composed of Mr. Kristinn Sv. Helgason, Public Administration and Governance Systems Specialist and Mr. Jose Manuel Sucre, Governance and Public Administration Expert, Division for Public Administration and Development Management, UN/DESA. During the mission, which was coordinated and organized by UNMIK (civil administration), the UN/DESA officials met with large number of stakeholders at both central and local levels. These consultations have greatly shaped the situational analysis and the proposed priority components of the public administration strategy, which are presented in this document to facilitate discussion among stakeholders. UN Security Council Resolution 1244 of 10th June 1999 (UNSCR 1244), “authorized the Secretary General, with the assistance of relevant international organizations, to establish an international civil presence in Kosovo in order to provide for an interim administration for Kosovo under which the people of Kosovo can enjoy substantial autonomy within the Federal Republic of Yugoslavia, and which will provide transitional administration while establishing and overseeing the development of provisional democratic self-governin g institutions to ensure conditions for a peaceful and normal life for all inhabitants of Kosovo”. include: UNSCR 1244 also “decided that the main responsibilities of the international civil presence will (a) Promoting the establishment, pending final settlement, of substantial autonomy and selfgovernment in Kosovo, taking full account of annex 2 and the Rambouillet accords (S/1999/648); 1

Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

(b) (c) (d) (e) (f) (g) (h) (i) (j) (k)

Performing basic civilian administrative functions where and as long as required; Organizing and overseeing the development of provisional institutions for democratic and autonomous self-government pending a political settlement; Transferring, as these institutions are established, its administrative responsibilities while overseeing and supporting the consolidation of Kosovo’s local provisional institutions and other peace-building activities; Facilitating a political process designed to determine Kosovo’s future status, taking into account the Rambouillet accords (S/1999/648); In its final stage, overseeing the transfer of authority from Kosovo’s provisional institutions to institutions established under a political settlement; Supporting the reconstruction of key infrastructure and other economic reconstruction; Supporting, in coordination with international humanitarian organizations, humanitarian and disaster relief aid; Maintaining civil law and order, including establishing local police forces, and meanwhile through the deployment of international police personnel to serve in Kosovo; Protecting and protecting human rights; Assuring the safe and unimpeded return of all refugees and displaced persons to their homes in Kosovo”.

Much progress has been achieved over the past four years under the leadership of UNMIK in promoting political, economic and institutional development in Kosovo as stipulated in UNSCR 1244, often under the most challenging circumstances. As a result, Kosovo has been gradually progressing towards selfgovernment since the end of the conflict in June 1999. A legal, institutional and administrative framework for civil service management, for example, has been built up in its entirety at both central and municipal levels. This new framework, which has been developed based on good European standards for public sector management, has gradually laid the foundation for the institutionalization of modern governance and civil service management arrangements in Kosovo. In pursuance of UNMIK Regulation 2001/19, eleven ministries have been established to carry out executive functions of the PISG, as defined in Chapter Five of the Constitutional Framework. Out of the eleven ministries, seven deal with subjects considered part of the Civil Administration Pillar of UNMIK. The seven ministries are successors to the Joint Interim Administrative Structure (JIAS) departments established by UNMIK Regulation1999/1. The JIAS had been created by the Special Representative of the Secretary General (SRSG) in order to incorporate Kosovars-Albanian participation into government structures after more than a decade of exclusion, effectively ending the parallel government structures previously established by ethnic Albanians, and thereby paving the way for the creation of a multi-ethnic civil service in Kosovo. UNMIK has already transferred about 60 per cent of public administration to the PISG, including control over relevant budgets. This is no small accomplishment considering the complexities of the inherited conditions. Transfer Council has also been established and composed of an equal number of representatives from UNMIK and Kosovo institutions, to decide on the specific modalities of how executive functions will be handed over from international staff to locals in an effective and sustainable manner. Despite some considerable progress in setting up a sound constitutional, legal and regulatory framework for socio-economic development, Kosovo is facing numerous development challenges. An unemployment rate of approximately 60 per cent is of major concern, with significant implications for political, economic and social stability, including public administration reform. The electric power supply remains unreliable; the industrial sector of the economy is weak; the banking sector is still at a nascent stage; the level of per capita income remains one of the lowest in the region; and poverty is widespread. The paucity of socio-economic data is also a considerable impediment to effective development planning in Kosovo, making it difficult to monitor and evaluate progress in implementing specific public policy priorities. Addressing these and other related development challenges will require effective public administration capacities at both central and municipal levels. To strengthen democratic governance, Municipal Elections were held in Kosovo in September 2000, followed by Ge neral Elections in November 2001. The new PISG that came into power in early March 2002 adopted a manifesto that focuses on eight priority areas for economic, social and political development in Kosovo, namely:

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

1. 2. 3. 4. 5. 6. 7. 8.

Consolidating the democratic structures of Kosovo; Increasing transparency and efficiency of the administration; Improving educational standards for all inhabitants of Kosovo; Improving the quality of health for all inhabitants of Kosovo; Promoting economic development and international economic cooperation; Increasing employment; Establishing pension insurance and social assistance for vulnerable groups; and Integrating all ethnic communities into Kosovars society.

The development and successful implementation of the proposed public administration strategy will not only enable the PISG to realize the second policy priority “Increasing transparency and efficiency of the administration” but also be an essential prerequisite for the attainment of other socio-economic policy goals as well. The establishment of effective institutional machinery capable of formulating sound public policies, as well as managing complex economic, fiscal and public administration-related reforms is critical for the realization of these important objectives. In order to enhance the coordination and implementation of ongoing and future initiatives to strengthen the public sector, the PISG and UNMIK have recently set up a joint Steering Board for Public Administration (SBPA). The main tasks of the SBPA will be to develop and announce a Vision Statement on Public Administration; to approve the short and medium-term strategy for public administration; to set up working groups for in-depth analysis of public administration issues, where required; to provide overall guidance to relevant agencies as it relates to capacity building measures; and to guide the process of transfer of responsibilities from UNMIK to local authorities and related successor arrangements. In this context, the preparation of the public administration strategy plays a particularly important role. The SBPA approved the TOR for the development of the public administration strategy, and the preparation of this Discussion Paper is the first step in that process. SBPA is also expected to have a more direct role in coordinating the formulation and implementation of the public administration strategy and program. This would involve not only internal coordination of ministries and self-government agencies, but also active coordination of the contributions of development partners to the reform process.

2.

Public Administration System

Many countries, including those in a post-conflict situation, have undertaken reform of their national governance system in recent years. This process has generally included the re-definition of the role of the state in public management, as well as greater emphasis on collaboration with the private sector and civil society in service delivery. In most instances, the objective of these efforts has been to re-focus and strengthen the capacities of the public sector to meet ever growing economic, social and environmental challenges. Greater interconnectedness in the global economy; enhanced citizen demand for cost-effective service delivery and; government resource constraints, have brought t e performance of public sector h institutions to the center of the political debate, including the need for more transparent and accountable public management to achieve national development goals. For the purpose of this report, the public sector is defined as including institutions in all branches of the state - the Executive, the Legislative and the Judiciary. The Executive arm is considered to encompass the civil service, local governments, publicly owned and socially owned enterprises and the quasi-public sector. The public service comprises all institutions in the Executive. The civil service generally constitutes the permanent secretariat or appointed officials of a national government. In Kosovo, on the other hand, the civil service has been defined as including all the approximately 65,000 staff, whose salaries are paid out of the Kosovo Consolidated Budget (KCB). Out of this total, it is estimated that between 5-7,000 staff work directly for the PISG ministries in Kosovo. The central government consists of all agencies financed by the budget, which includes Schedule I (PISG) and Schedule II (reserved powers). The central government and the municipalities (Schedule III)

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

combine to form the General Government Budget (GGB). Public enterprises are excluded from the government sector but are included in the definition of the public service. Policy priorities of the selfgovernment are prescribed in the Medium-term Expenditure Framework (MTEF).

2.1)

Analytical Framework.
CHANGE AND CAPACITY - WITHIN AN ENABLING ENVIRONMENT CONTEXT

In a typical situation, it is sometimes estimated that organizations can absorb about 30 per cent change at any given time. In post-conflict Kosovo, on the other hand, organizations are expected to undergo 100 per cent change most of the time. The pace of change is likely to accelerate further as the PISG asserts greater authority over the reform process, and citizens learn to demand better services and more accountable government. This process may lead to the redefinition of the role of the government in public management, restructuring of the government machinery, new laws and regulations, and major capacity building of staff.

Level 1

THE BROADER ENABLING ENVIRONMENT

Level 2

THE ENTITY

Level 3

INDIVIDUAL and TEAMS

Governance and public sector management capacity development in post-conflict Kosovo must be seen from a broader perspective. For example, training cannot be isolated from the performance expectations of a particular job or position. Job performance and human resources development plans for staff cannot be separated from the goals and service objectives of the employing organization, and goals and organizational structure cannot be disconnected from an understanding of the policy framework, including demand for services from the respective community. At the same time, the goals, priorities and performance objectives of an organization cannot be determined outside the broader national and government policy agenda and macro socio economic framework. Capacity building of public administration in post-conflict Kosovo will therefore require action at three main levels, namely, the enabling environment, the organizational level, and human resources1. This Discussion Paper attempts to analyze the current ‘capacity challenges’ in the civil service in post-conflict Kosovo based on this three-level conceptual framework. This document, therefore, begins with a brief description of the conceptual underpinnings of this approach as it relates to capacity assessment of the public administration system in Kosovo. A unique feature of the system of governance and public sector management in post-conflict Kosovo is that it requires transformational change from the earlier mode of administration. While a transformation is required in the management of the public sector, not all systems and capacities will need to be developed from scratch. There is a risk that some capacity development initiatives may fail to take sufficient account of the intrinsic biases and legacies of previous systems. Many Kosovo-specific factors will also have to be incorporated into the development of the public administration strategy, such as need for an enabling environment for return of refugees and displaced persons; the difficult process of reconciliation; the establishment of a multi-ethnic civil service; and the constant struggle to maintain law and order, as well as peace and security. A transformation such as the one required in post-conflict Kosovo, will take quite some time and demand both patience and perseverance. The capacity development and confidence-building process will also require clear vision and strong sense of direction, including committed and consistent leadership at both political and technical levels, as well as substantial amount of resources. Upon the adoption of a public administration strategy, it is envisaged that an implementation plan be drafted by the Technical Secretariat ( ee section on management and coordination arrangements) that s would outline in some considerable detail the short, medium, and long-term priorities, including the responsibilities for the delivery of particular outputs, as well as the costing of the program. In this context, it is particularly important that the process of re-building the public administration system be used as a confidence-building measure to advance reconciliation among conflicting groups in Kosovo.

1

UNDP-developed capacity building framework.

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

Capacity is defined as the ability o individuals and organisations (departments, agencies, other f entities) to perform functions effectively, efficiently and sustainably. That is a standard definition. It implies that capacity in post-conflict Kosovo, as elsewhere, is not a passive state but part of a continuing process of change. The overall context, within which organisations in Kosovo will undertake their functions are also key considerations in the management of change. Capacity is the power to perform or to produce. Capability, a closely allied term, can be synonymous with capacity, or else simply defined as undeveloped or unused capacity. Change defines the difference in capacity over time. Capacity development is a process by which individuals, groups, organizations, institutions and societies increase their abilities to perform core functions, solve problems, define and achieve objectives, and to understand and deal with their development needs in a broad context and in a sustainable manner. The core capacities of an organization, or community, or sector, (or enabling environment) are often considered to consist of ability to define and analyse the environment or overall enabling environment; to identify needs and/or key issues; to formulate strategies to respond to or meet needs; to devise or implement actions; to assemble and use resources effectively and sustainably; to monitor performance, to ensure feedback, and to adjust courses of action to meet objectives; to acquire new knowledge and skills to meet evolving challenges. From this definition, it is felt that some of the capacity development initiatives in post-conflict Kosovo are following this general approach, while others are not. It is not to say that every discrete capacity development activity (such as a training event) needs to embrace all these features, but it does say that individual initiatives should be part of a broader strategy. This is the main purpose of formulating a public administration strategy (including implementation plan) for Kosovo. This Discussion Paper isn’t intended to provide a ‘blueprint’ for reforms, but rather to promote frank exchange at a workshop to be organized by UNMIK (civil administration) and PISG in September in Kosovo. It is impossible – or at least impractical – to develop capacities without knowing what the needs are. Capacity assessment is a structured and analytical process whereby the various dimensions of capacity are assessed within the broader environment and evaluated for specific entities and individuals within the environment. Future capacity needs are evaluated in order to determine the nature and magnitude of the necessary change. From the capacity assessment, better plans and projects can be formulated and then implemented to meet the defined needs.

Level 1: Enabling Environment
This is the highest level within which capacity and change initiatives may be cast. Various methodologies refer to this level as the ‘situation’, the ‘market’, the ‘action environment’, or simply as the ‘environment’. For capacity initiatives that are national in context (e.g. governance and public sector management), the enabling environment would include Kosovo, its macro-economic environment, the s ciety and all the subo components that would be impacted. For capacity development projects and programs at the sector level, the enabling environment might include only those components that are relevant to the respective sector program. Examples of this might include health, natural resources, infrastructure, or governance and public sector management.
LEVEL 1 - THE ENABLING ENVIRONMENT
FACTORS: 1 Socio -political
GOVERNMENT DEPARTMENT

2 External Partners
PRIVATE COMPANY

Inter-Relationships amongst Entities

DONOR

3 Global/ Regional
GROUP

AGENCY

NGO

4 Physica l Environment

Forces as noted in the above-cited chart may be seen to act on the post-conflict Kosovo system of public administration. These pressure points are socio-political in nature, economic, global/regional, and physical. Technological advances and globalisation may indeed increasingly be seen as significant external catalysts for change, requiring the development of special skills and the selection of particular approaches to build up national capacities. The enabling environment for public administration in Kosovo may be seen to contain capacities across a number of dimensions.

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003 § Policy frameworks. The enabling public administration environment will have a purpose and it will exist to meet needs of society. This dimension would include the Kosovo ‘value systems’ or culture that govern the behaviour and conduct of entities, but appropriately adapted to the needs of a modern administration. Also included are special constraints, such as those pertaining to financial resources. This would cover the macro-economic development framework for Kosovo, which would set certain parameters for government and public sector management capacity development Legal/regulatory fr ameworks. This includes rules, laws, policies, directives, norms and standards that govern the Kosovo system of public administration. Much effort has already been invested by UNMIK in establishing the legal and regulatory framework for effective civil service management in Kosovo. Accountability structures. The overall roles, responsibilities, authorities and accountabilities of various organizations and individuals operating within the public administration system. From a capacity development perspective, this would include identifying who is responsible for what, how and what authorities are delegated, and what types of controls are put in place. Accountability relationships between various public organizations in Kosovo at both central and municipality levels generally need to be more clearly articulated. Resource flows. This dimension defines the human, financial and information based resources that may be available to the broader system of public administration (e.g. in the current context, internal resources and external resources from the UN and donor community). For example, manpower planning and the development of a human resources development strategy is particularly important considering the need to build up the human capital in Kosovo. Also, the current technological constraints limiting Internet connectivity in Kosovo make it more difficult to harness information resources on the worldwide web to modernize the public administration system. Broader relationships. This covers inter-relationships, inter-dependencies, and information flows within the Kosovo system of governance (state sector, private sector and civil society); between the major branches of government (executive, legislative, judiciary); between central and local levels of administration; and between the government and its external partners such as the UN and donors. Considering that the new PISG only assumed office in March 2002, relationships with civil society and the private sector remain at a nascent stage of development.

§

§

§

§

Level 2: the Organization or Entity
Unlike traditional approaches to capacity development that focus their attention almost entirely on human resources, processes and organizational structuring matters, the more successful approaches examine all dimensions of change and capacity at the entity level. Seven indicative dimensions of capacity at the organizational level are:
§
LEVEL 2 - THE ORGANIZATION OR ENTITY
INTERACTION WITHIN THE ENABLING ENVIRONMENT

VISION MISSION and STRATEGY CULTURE, STRUCTURE and COMPETENCIES PROCESSES HUMAN RESOURCES

FINANCIAL RESOURCES Vision, mission and strategy. This dimension comprises the vision, mission, INTERACTION role, mandate, goals, direction, ‘business plans’, and definition of WITH OTHER INFORMATION RESOURCES ENTITIES OR products/services for the organization. Also covered are the clients/customers “STAKEHOLDERS” INFRASTRUCTURE served, performance measures, expected results, and core strategic management capacities. Capacity building of this particular dimension has started in many ministries and departments in Kosovo. The proposed Management Boards (see section on institution building) for each ministry could take the primary responsibility for the formulation of vision statements and ‘business plans’.

§

Culture/structure and competencies. This dimension consists of the internal organizational structuring, internal accountability structures, management and organizational values, management style and standards, and core competencies. Generally, much work needs to done to inculcate a sense of performance and results-orientation in public sector organizations in Kosovo. This reflects the inherent difficulties in transforming a socialistic administrative tradition in the public sector into a more modern performance-driven organizational culture. Processes. Consists of the processes that are internal and external to the organization. These processes are seen to support planning, service delivery, public relations, relationships with other organizations, communications, policy development, monitoring and evaluation, performance/quality management, financial and human resources management, and so on. Careful design of processes can play an important role in ensuring fair representation of different groups in policy and decision-making processes – an important policy priority for the PISG. Human resources. This dimension defines the most valuable resource of any organization and upon which change, capacity and development primarily depend. This is perhaps the most critical dimension in the present Kosovo public administration context. The strengthening of human resources management units and the establishment of the Kosovo Institute for Public Administration should become high priorities for the PISG. Financial resources. These resources consist of both operating and capital that are required for the efficient and effective functioning of the organization. Of special concern in Kosovo are the impacts of technical assistance projects on recurrent costs and affordability. Sustainability of reforms is also an important issue, as funding from development partners will decline in the coming years. Additionally, strategic management of scarce financial resources assumes greater importance in an environment characterized by increasing number of competing domestic demands. Information resources. Of growing importance, this dimension includes how information resources are managed to support the mission and strategies of the entity. Information is seen to support the management of ‘knowledge’. Filing and records management, libraries, correspondence control and the like are included under this capacity dimension. Lack of effective

§

§

§

§

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003 information collection and knowledge management systems is hampering the modernization of public administration in Kosovo. At the earliest, the PISG could consider formulating an e-government strategy. § Inter -relationships. Covers the specific relationships and communications between the particular organizational unit and the community it serves (e.g. clients, citizens), as well as relationships with other organizations in the administration. (e.g. to support or be part of sectoral and donor coordination mechanisms). Generally, the involvement of civil society and the private sector in policy-making and service delivery in Kosovo is low. Infrastructure. The final dimension includes the physical assets of the organization such as property, facilities and movable assets, computer systems, telecommunications infrastructures, and office space. The current state of infrastructure in the public sector is a considerable capacity constraint and undermining the quality of service delivery to clients.

§

Level 3. The Individual
Capacity development at the third or individual level i s considered to be the most critical in post-conflict Kosovo. This level addresses the individual's capacity to function efficiently and effectively within both the organization (or teams) and within the broader government and society. Capacity assessments are designed according to the individual’s existing and potential future function and relationship to the organization.
LEVEL 3 - THE INDIVIDUAL
JOB REQUIREMENTS SKILL LEVELS AND NEEDS TRAINING / RE- TRAINING INDIVIDUAL LEARNING CAREER PROGRESSION ACCOUNTABILITY ACCESS TO INFORMATION PERSONAL/PROFESSIONAL NETWORKING PERFORMANCE / CONDUCT INCENTIVES / SECURITY VALUES, ETHICS AND ATTITUDES MORALE AND MOTIVATION WORK RE- DEPLOYMENT JOB SHARING

Depending on the status, function or role, the individual will have a differing set of capacities. For example, executive, management, supervisory, professional, and administrative staff will clearly require different types of capacities to be effective in their roles. Special roles such as those of international staff, volunteers, contract staff, part-time workers and others will also have their special sets of capacities. The chart above is meant to be indicative of the generic types of capacities that may be required, although many more would need to be included for this list to be comprehensive, and they would be specific to the particular job and individual.
INTER- RELATIONSHIPS AND TEAMWORK INTER- DEPENDENCIES PROFESSIONAL INTEGRITY COMMUNICATIONS SKILLS

In the post-conflict Kosovo context, the skills and capacity needs of different levels will need to be carefully analysed in the context of the role of government and other capacity limitations.

Designing a Public Administration Strategy
In post-conflict Kosovo, capacity development strategies will need to focus much more on the building of trust among different ethnic groups, as well as the creation of collaborative or cooperative arrangements between the Kosovars and the donor community, UNMIK and PISG. Other important design features for the proposed public administration strategy include:
§ Localization of capacity development. Beyond the more technical aspects of staffing the management of the public sector with Kosovars of all ethnic affiliation, the process of localization also includes the inculcation of indigenous values by the Kosovars into the management and organizational culture of the administrative system, insofar as such values are compatible with a performance-based, open, cost-effective and accountable system. § Localization means ownership, participation and consultation. For key policy decisions and the production of results, the PISG will need to be vested with appropriate accountability and decision-making authority. In other situations, where management capacities are weak, responsibility for management (especially of external inputs) may need to be shared with donors and other organizations. § Expanding awareness and understanding – communications. Improved communications are required to expand the awareness and understanding of the many changes being introduced through a new public administration strategy. Increased efforts will be required to improve horizontal and vertical communications within the PISG, and between the government and the broader Kosovo society. § Keeping things simple, basic and flexible. Policies, procedures, systems and so on must be designed and adapted in the most simple and basic form possible. A future administration will then have greater flexibility in terms of sustaining or modifying such capacities to meet the evolving needs. § Managing expectations. Management of expectations on all sides of the transition equation has been a major challenge. The reality is that the process of capacity development has been slow and mistakes have been made. This pattern will not likely change

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003 in the near future. The expectations on all sides must be clearly understood, with no presumptions and as few assumptions as possible. § Managing risk (not avoiding it). An important consideration in the Kosovo context is to emphasize greater innovation and the taking of risks, to make and learn from mistakes, to be more entrepreneurial in finding and adapting capacity development solutions to meet unique needs.

3.

Situational Analysis

The three-level capacity assessment framework outlined here above will be used to analyze the strengths and weaknesses of the current public administration system in post-conflict Kosovo, including the perceived ‘capacity challenges’. More specifically, the purpose of the review is to examine the progress in setting up an effective civil service system, as well as to identify priorities for capacity development during the next phase of the public administration reform program. Integral to the review process will be assessment of capacities of both central and local authorities to formulate and implement public policies effectively. The situational analysis is not intended to be exhaustive, but rather to facilitate constructive exchange at a stakeholders’ workshop to be organized by UNMIK and the PISG in September in Kosovo. Considering that mission members only spent one week in Kosovo to consult with stakeholders, the analysis relies heavily on desk review of documents provided by UNMIK, PISG, development partners and other stakeholders. It is expected that the situational analysis be updated to reflect the findings and recommendations of the above-cited workshop.

3.1

Enabling Environment

Legal, Policy & Regulatory Frameworks.
Following the adoption of the UNSCR 1244, UNMIK embarked on a major program to develop an effective legal, policy and regulatory framework for civil service management in Kosovo. This legal infrastructure includes the Constitutional Framework (Regulation 2001/9), Executive Branch of PISG (Regulation 2001/9), Kosovo Civil Service Law (Regulation 2001/36), Administrative Direction (2003/2), Kosovo Local Government Law (Regulation 2000/45), and the Terms of Reference for the Transfer Council. The Civil Service Law (CSL), the Administrative Direction (AD) and the recently developed ten Personnel Procedures constitute the legal, policy and regulatory framework for human resources management in the civil service in Kosovo. The CSL was adopted before the PISG assumed office in March 2002, and may therefore not have the same degree of local ownership as those human resources management instruments developed after the formation of the new self-government. The Ministry of Public Services, for example, has been keen for quite some time to undertake a thorough review of the CSL. While the legal infrastructure has generally been developed based on good European standards for public sector management, it is felt by key stakeholders, particularly the MPS, that Regulations 2001/36 and 2000/45 only provide the basic framework for civil service management at the central and municipal levels. This legal framework is perceived to need further strengthening, both in terms of the range of issues covered, but also to eliminate ambiguities in the interpretation of the two laws. Some of the areas in need of review include the delineation of responsibilities between the Ministry of Public Services and the Ministry of Finance and Economy as it relates to personnel management; the establishment control for the civil service; salaries and allowances of civil servants; and the management of a personnel information system, including its link to the budget. Policy makers have also complained that regulations governing civil service management are not always internally consistent, sometimes enabling civil servants at central and municipal level to exploit legal ambiguities in order to avoid accountability for the delivery of public services. Another factor impacting the enabling environment for effective civil service management is the perceived power imbalance between political advisors and permanent secretaries, which is considered to contribute to existing inefficiencies in

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

the central government. Both issues should be addressed in a review of the legal framework governing civil service management. Many countries, in comparison, have decided to adopt a relatively comprehensive public service act, spelling out in some detail the responsibilities and relationships of key actors in the management of the civil service, such as the Ministry of Public Services, Ministry of Finance and Economy, Office of the Prime Minister, ministers, permanent secretaries, civil service commissions, directorates of public service, as well as carefully defining other important aspects relating to civil service management, including the rights and responsibilities of civil servants, career development, codes of conduct, obligation of civil servants to inform about irregularities (‘whistle-blowing’), potential conflict of interest, reporting requirements of both the MPS and the MFE to the cabinet etc. The PISG is currently in the final stages of adopting ten Personnel Procedures, developed with the assistance of DFID. These procedures will constitute a comprehensive and coherent operational framework for the selection, recruitment and management of staff in the core civil service. The Personnel Procedures deal with the following aspects of the Civil Service Law and the Administrative Direction: recruitment and selection, employment contracts, probation, job description, performance assessment, employee personnel files, working hours, attendance and leave, conduct and discipline, appeals, and termination of employment. Three procedures have been approved by the Minister of Public Services (as of April 2003) and issued in the form of an Administrative Instruction. The Personnel Procedures, however, have not yet been applied to other categories of staff in the public service, such as those working in the education, health and other sectors. The PISG, as a matter of priority, should make it mandatory for all sectors of the public service to apply the Personnel Procedures in recruitment processes. The Constitutional Framework (CF) created a two-tier self-government in post-conflict Kosovo at the central and municipal levels. UNMIK Regulation 2000/45 devolved a number of powers and responsibilities to the 30 municipalities in Kosovo, which are divided into three main categories, namely, subjects where: (a) the municipality is responsible within the laws regulating each activity; (b) the municipalities may take action within their territories; and (c) the municipalities shall be responsible for implementing regulations promulgated by the central authority, and for which commensurate resources are to be made available by the central authority. The CF also placed certain responsibilities on the PISG in the field of local administration. These duties relate particularly to matters aimed at enhancing inter-municipal cooperation and the strengthening of administrative systems in order to enhance efficiency in local government functioning. These central responsibilities have been placed under the purview of the Ministry of Public Services (MPS). The Council of Europe Decentralization Mission (COEDM) is currently reviewing a number of options that could serve as the basis for reforming local governance in Kosovo. The aim of the proposed reform is to bring services and decision-making closer to the people. The COEDM expects to present its findings in the fall of 2003. The recommendations of the COEDM will cover the issues of territorial units, institutional structures, division of competency and financial means, as well as the process of elections and appointments in local administration. It is generally felt that the division of labor between the municipalities and the central authority in service delivery in Kosovo could be improved by more careful delineation of powers and responsibilities. For example, some of the more visible functions of municipalities relate to the provision of services connected with public utilities and infrastructure, including water supply, sewage, waste management and local heating systems. The provision of these services is undertaken by the municipality through the relevant enterprises, whose command and control structure is not in the municipal hands. Legal ambiguities also exist when it comes to certain central government services, such as cadastre and civil registries that are delivered by municipalities. In addition, the UNMIK Regulation 2000/45 assigns responsibility for pre-primary, primary and secondary education to municipalities without clarifying the role of the Ministry of Education, Science and Technology in this area; garbage collection and drinking water are supposed to be under the purview of municipalities, but are currently managed centrally; some municipalities have created Directorates of Agriculture, although this subject is the responsibility of central government; and Regulation 2001/9 assigns

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

responsibility to the PISG to direct fire and rescue services in close cooperation with municipalities, although these responsibilities are not adequately defined in the regulation. Municipalities have also complained that they are not receiving adequate support from the central police service in enforcing decisions more effectively, including those relating to the management of public property and illegal construction. The delineation of responsibilities between municipalities and the Kosovo Trust Agency (KTA) could similarly benefit from more coherent interpretation of the applicable law. Greater complexity in relations between the two tiers of self-government has also heightened the need to clarify the meaning of the term “central authority”, referred to in UNMIK Regulation 2000/45. It is, therefore, recommended that a review be undertaken of the legal framework governing municipal administration, upon the completion of the COEDM study. While public utilities play a key role in service delivery in Kosovo, their operation is hampered by lack of the necessary laws and regulations governing the development of each sector. It is recommended that PISG accord some considerable priority to reforms of the legal and policy framework governing public utilities. The PISG manifesto, adopted by the Kosovo Assembly in May 2002, commits the government to undertake a legislative campaign to promote transparency and accountability in governance. The existing legal and policy framework in Kosovo is weak when it comes to the promotion of transparency, accountability and integrity in public sector management. The PISG, for example, has not yet adopted a comprehensive Kosovo-wide integrity system or anti-corruption strategy (a draft has been prepared). To deter corrupt practices in public administration, a comprehensive set of laws is generally required, comprising most, if not all, of the following: • Law that criminalizes the offering and soliciting, and the giving and accepting, of a bribe; • Law that enables the tracing, seizure, freezing and forfeiture of the illicit earnings from corruption; • Law that requires the regular declaration of the assets, income, liabilities and life-styles of decision-makers and other public officials who hold positions where they transact with the public and are well-placed to extract bribes; • Law to identify, and prevent or resolve conflict of interests; • “Whistleblower” legislation to protect employees who notify authorities of corruption from civil, criminal and disciplinary proceedings and retaliatory action by their employer; • Law to enable the citizen to obtain information in the possession of the state, i.e. Access to Information Act; • Constitutionally entrenched Bill of Rights that recognizes the rights of citizens to freedom of expression, assembly and association; • Strong recovery mechanism under the civil law (as distinct from the criminal law). Unless there is strong political will and public support to tackle corruption, legal and institutional change s will not have the desired impact. At the same time, a functioning legal system and rigorous enforcement are central to anti-corruption efforts. It can be argued that the introduction of a tough anticorruption legislation and its enforcement by a strong independent commission against corruption, reinforced by an independent judiciary, were in fact more important in reducing corruption in many countries than the raising of salaries of staff in the public sector. The overall objective of establishing a firm legal code against corruption is to ensure that corruption is not a ‘low risk, high profit’ activity but rather a ‘high risk, low profit’ venture. The Kosovo Assembly has passed a Freedom of Information Act, and a draft Law on Financial Disclosure has been prepared. However, none of the other above-cited legal instruments have been put in place. Some countries, for example, have opted to include provisions related to ‘whistle-blowing’ and conflict of interests into the respective public service acts. The enactment of an effective ant-corruption legal regime would send a powerful message that PISG is highly committed to the promotion of accountability, transparency and integrity in governance.

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

A common practice around the world is for governments to issue green and white papers in advance of legislative proposals. The idea is not only to inform stakeholders, particularly members of Parliament, about the main principles and content of forthcoming legislation but also to solicit their inputs and advice. This very useful practice has not been adopted in the formulation of new policies in Kosovo. The PISG may wish to consider introducing this instrument into the policy formulation process as part of its next series of reform initiatives.

Accountability Structures.
A Transfer Council (TC) composed of an equal number of representatives from UNMIK and Kosovo institutions, has been established to decide on the specific modalities of how executive functions will be handed over from international staff to locals in an effective and sustainable manner. The council, which met for the first time on 8th April 2003, will provide overall coordination of the transfer process and can appoint sub-groups to consider specific aspects of its work. In line with the mandate for substantial self-government, the TC will initially focus on the following: complete the transfer process outlined in Chapter Five of the Constitutional Framework (CF); increase the involvement of Kosovars in areas covered by Chapter Eight of the CF; and improve the checks and balances - Kosovars and international - that enforce UNSCR 1244 (1999) and the CF through monitoring and remedial intervention. The TC will also consider how Kosovo institutions can be involved in monitoring, evaluation and remedial processes, as required. In addition, the TC will discuss appropriate strategies to realize UNSCR 1244 and the CF with respect to specific concerns, particularly the rights of communities and their members, and the rule of law. The TC will similarly consi der issues related to municipal governance, particularly whether the current distribution of power and responsibilities between international staff and local appointees is appropriate. To facilitate its work, the TC has set up three working groups dealing with (a) finance, recruitment and logistics, (b) technical assistance, and (c) remedial intervention respectively. The TC should therefore be well positioned to oversee the transfer process. Considering the heavy politicisation of government institutions, a notable weakness of the existing governance and public sector management system in Kosovo is the poor state of oversight bodies, which undermines the accountability of public organizations to citizens. Although both Auditor General and Ombudsman offices have been set-up, they are still at a very nascent stage of institutional development. For example, the post of Auditor General has not yet been filled. The Kosovo Civil Service Regulation 2001/36 provides also for the establishment of the Oversight Board of Kosovo (OBK) to ensure that selection and recruitment of civil servants is based on the merit principle. This Board, however, has not been established to date, which has, undermined transparency and accountability of the recruitment process in the civil service. The existence of OBK, in fact, is essential to the effective implementation of the CSL. The absence of this institution has also meant that those applying for posts in the civil service have had no recourse except the judiciary, if concerned about unfair treatment in the recruitment process. Notably, the number of such appeal cases has been increasing rapidly in recent months. For effective implementation of national anti-corruption efforts, it is important that oversight bodies be fully independent from the executive, adequately resourced and staffed with qualified employees. Oversight institutions stand little chance of success without these three prerequisites. The funding of constitutional bodies should also be secure by law to further strengthen their independence. The status of oversight bodies within the governance system is a good indicator of political commitment towards high ethical standards in public management. An effective institutional set-up to promote oversight of the Executive would generally consist of the following: • Independent commission against corruption charged with the implementation of anticorruption legislation. The independent commission should report to the legislature. An anticorruption agency that is not fully independent may find it difficult to provide adequate checks and balances of the executive; • Independent prosecuting agency; • Independent, impartial and informed judiciary; • Auditor-General with responsibility for auditing government income and expenditure; • Office of Contractor General to provide oversight of government procurement and contracting. Like other ‘watchdog’ agencies, this office should be independent of the executive;

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003



Ombudsman who receives and investigates allegations of mal-administration.

Most of these important oversight institutions have not yet been established in Kosovo. The creation of an effective institutional oversight framework should be accorded high priority in the planned public administration strategy. Effective oversight instituti ons can play a key role in improving the quality of service delivery and financial resources management in the public sector. It is also essential that the Oversight Board of Kosovo (OBK) be established as soon as possible. In addition, an independent Office of the Contractor General and an anti-corruption commission have not been set up in Kosovo to date. It is recommended that the PISG consider establishing such bodies as part of an effort to strengthen the oversight machinery in Kosovo. Oversight bodies and the Assembly of Kosovo play a key role in ensuring accountability of the executive when it comes to agreed standards in the area of service delivery. The Auditor General, the Ombudsman, and the respective portfolio committees of the Assembly are expected to probe the costeffectiveness of the use of public resources. Regular use of value-for-money studies by the Office of the Auditor General can also provide incentives for managers in the public service to continuously review the performance of their respective agencies. The Office of the Auditor General and the Office of the Ombudsman need significant institutional strengthening in order to promote greater accountability of the executive towards the public. Building the capacities of these bodies is an important precondition for more effective service delivery in Kosovo, as well as continued strengthening of financial resources management in the public sector. One of the principal functions of parliament is to provide oversight of the executive on behalf of the public. In Kosovo, the Assembly assumes a particularly important role in the governance system because the House is composed of all major groups in society. The public scrutiny to which the Assembly subjects the executive, through debate and question time, promotes both transparency and accountability in governance and more effective use of public resources. Portfolio committees of the Kosovo Assembly have a particularly important role to play in oversight of the executive. Strengthening the cap acity of portfolio committees to provide financial and programmatic oversight of the PISG can further enhance the quality of governance arrangements in Kosovo. The legislative branch should also strengthen its review of secondary legislation. In order to further strengthen democratic governance, it is suggested that special committees be set up in the Kosovo Assembly to participate in the process of developing the various laws proposed in this draft public administration strategy. An effective and vigilant press, lies also at the heart of the integrity system. A professional and ethical media, operating within a sound legal framework that enables it to convey information freely, fairly and responsibly, has an important role to play in exposing corruption and in building support for efforts to combat it. The degree to which the media is independent is determined by its ability to perform an effective watchdog function when it comes to the conduct of public officials. Just as the legislature is expected to keep the executive under continuous scrutiny, the media has a responsibility to keep both the legislature and the executive, along with all other actors whose offices impinge on the public domain, carefully monitored to promote accountability, transparency a high ethical standards in governance. In this context, it is nd proposed that a review be undertaken of the legal and policy regime governing the development of the media sector in Kosovo. It is also suggested that training of reporters in investigative journalism be further strengthened. As executive functions are gradually handed over to local staff, UNMIK will be expected to strengthen its advisory and oversight role of the public administration. This would include ensuring adequate quality of administrative, financial and personnel systems used by PISG staff, including providing necessary capacity development opportunities. As significant know how in these areas resides with UNMIK staff, they should also be encouraged to codify the various operational rules and procedures, as part of the overall process of transferring knowledge to local staff. This should also include their active contribution to the development of handbooks and manuals for Kosovars civil servants. A structured oversight framework that enables UNMIK to regularly monitor and evaluate the progress in creating sustainable institutions and systems, will be required to promote efficient transfer of line functions from internationals to local staff. The framework could particularly focus on those functions

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considered to have a bearing on (a) good governance issues, as well as matters mandated by the UNSCR 1244 and the Constitutional Framework (CF), (b) policy development, (c) planning, budgeting and expenditure activities, and (d) oversight of public officials. UNMIK (civil administration) should not only have an important oversight role but also have the capacity to provide strategic and substantive advice to local institutions to help set up proper administrative systems, such as directives, rules, regulations, guidelines, manuals etc. for the functioning of ministries; and the ability to provide expert advice on specific issues critical for sustainable institution building in Kosovo, including the development of the civil service system, finance and accounting, and procurement methodologies. As UNMIK strengthens its advisory and oversight role, it may have to revisit its staffing profile. For example, as locals take over many of the executive line functions, UNMIK may be called upon to provide more specialized technical services to the PISG. Instead of being responsible for day-to-day management of the executive, UNMIK could de facto become more of a technical resource facility for the PISG, while simultaneously ensuring quality control and oversight of administrative systems and institutions.

Resource Flows.
While inflows of donor assistance remained the same in 2002 as in 2001, or approximately USD500 million, a declining trend is expected in 2003. The projected drop in financial resources is likely to test the sustainability of Kosovo’s economic recovery, and to heighten the need for political leaders to formulate a clear vision and strategy for the public administration reform process, as more-and-more resources will have to be generated domestically. UNMIK, OSCE, EAR, DFID, UNDP and other development partners have so far invested considerable amount of resources in strengthening the capacity of the public service in Kosovo. Considering the high volume of technical assistance, there is much need for enhanced coordination among development partners, as well as within the machinery of PISG itself. The creation of the joint Steering Board for Public Administration and the proposed establishment of a Technical Secretariat to provide day-to-day coordination of the reform program should strengthen both internal and external coordination, as well as resource mobilization. The Board is expected to play a key role in regularly assessing the progress of PISG institutions in meeting the benchmarks, set out by the SRSG on behalf of the international community. The SBPA should initiate as soon as possible the development of the Vision Statement for the public administration in Kosovo. Following the adoption of the Vision Statement and the public administration strategy, including the preparation of a detailed and costed implementation plan, a comprehensive program should be developed as the overarching framework for reform efforts, and as the precursor for the convening of a donor conference.

Broader Relationships.
It is now an accepted proposition that informing and responding to citizens will raise the effectiveness of government institutions by improving monitoring of public goods and services and encouraging greater transparency in decision-making processes. Three important steps have been taken in Kosovo in the first few months of 2003 to further enhance the participatory culture in public policy -making, namely the strengthening of institutions to support minority participation in the central administration; the registration of civil society organizations; and the creation of five inter-ministerial committees by the cabinet. Such initiatives aimed at fostering greater participation of stakeholders in policy-making should be actively promoted. Many studies have concluded that incomes are generally higher in communities with a strong endowment of social capital. In almost every society, the needs and preferences of the powerful are well reflected in public policies and priorities. On the other hand, ordinary citizens and particularly the poor and the marginalized struggle to get their voices heard in the corridors of power. Essential to the strengthening of the institutions of self-government is to bring them closer to the people. That means enhancing opportunities for citizens’ participation in policy-making and monitoring of implementation arrangements. In some cases, this may mean greater need for enhanced decentralization of service delivery. Considering that civil society is at a nascent stage of development in Kosovo, the PISG can facilitate its growth by putting in place the necessary legal framework and guidelines that promotes its participation in policy -making, service delivery and monitoring.

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In many successful countries, policy-making is embedded in consultative processes, which provide civil society, labor unions and the private sector opportunities for participation and oversight. The privatepublic deliberations councils in East Asia are good examples of mechanisms that have provided effective feedback, information sharing and coordination on important policy issues. PISG should begin to develop and/or strengthen such consultative processes, as part of its overall development strategy.

3.2

Institution Building

Vision, Mission & Strategy.
The PISG firmly believes that Kosovo’s future lies in Europe, and, therefore, intends to make sure that all legislation, especially those relating to the economy, education and health, are in accordance with European Union (EU) standards. The fact that laws will be aligned to European standards should ensure that economic growth and institutional development would not be hampered by a weak policy regime. The challenge instead would be to strengthen the capacity of public institutions to implement policies in a thoroughly efficient and transparent manner. This process of raising the capacity of public institutions to European standards is likely to require immense political commitment, patience, careful planning and longterm vision because consistent and effective application of the adopted EU rules is critical for sound socioeconomic development in Kosovo, including the ability of PISG to attract foreign and domestic private investment. If the PISG wants to effectively implement its fast-growing executive responsibilities and succeed in building up a vibrant market economy, it has to further strengthen its institutional capacity to coordinate and synchronize economic, fiscal and public administration-related reforms, including the strategic management of financial resources. In this regard, the formulation of a Vision Statement and the preparation of a public administration strategy would be an important step in asserting local authority over the institutional development process in Kosovo. At the earliest, the Steering Board for Public Administration (SBPA) should initiate the process of formulating the Vision Statement, as well as the public administration reform program.

Culture, Structure & Competencies.
Kosovo has been gradually progressing towards self-government since the end of the conflict in June 1999. On the basis of the United Nations Security Council Resolution 1244 (UNSCR 1244), the Secretary General established the UN Interim Administration in Kosovo (UNMIK), charged with organizing and overseeing the development of provisional institutions for democratic self-government, pending a political settlement. The UNSCR 1244 further charged the international civil presence to progressively transfer administrative responsibilities, while overseeing and supporting the consolidation of local provisional institutions and other peacekeeping activities. In pursuance of UNMIK Regulation 2001/19, eleven ministries have been established to carry out executive functions of the PISG, as defined in Chapter Five of the Constitutional Framework (CF). Out of the eleven ministries, seven deal with subjects considered part of the Civil Administration Pillar of UNMIK. The seven ministries are successors to the Joint Interim Administrative Structure (JIAS) departments, established by UNMIK Regulation 1999/1. The JIAS had been created by the Special Representative of the Secretary General (SRSG) in order to incorporate Kosovars-Albanian participation into government structures after a decade of exclusion, effectively ending the parallel government structures previously established by ethnic Albanians and thereby opening the way for the creation of a multi-ethnic civil service in Kosovo. UNMIK has already transferred about 60 per cent of public administration to PISG, including control over relevant budgets. More responsibilities will be transferred as the PISG demonstrates its administrative and managerial capacity to execute responsibilities currently within its purview. The continued existence of parallel administrative structures in Kosovo challenges the day-to-day operations of some of the ministries, as well as municipalities, principally in the areas of education, health and administrative services. Integration of all structures under a joint UNMIK-PISG authority is critical for the implementation of a strategy to strengthen the public sector in Kosovo. Ongoing efforts by UNMIK to

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negotiate an agreement with the authorities in Belgrade on this important issue need to be supported by all stakeholders. The representation of minorities remains also highly inadequate at all levels, or approximately 8 per cent in central government and significantly lower at the local level. According to the Executive Branch Regulation (2001/19), the civil service s hould comprise about 15 per cent Kosovars-Serbs and 10 per cent from other minority communities. It’s, therefore, an important challenge for UNMIK and PISG to ensure that the goals of equitable representation of all communities in governing institutions are fully achieved. As it is very difficult to dislodge bad systems when they have been put in place, it is important to create from the outset an effective civil service in Kosovo. A well-designed civil service system would generally be characterized by the following: (a) uniformity in organizational structures, job designations and pay grades, and (b) and strong systems for administrative, financial and personnel management of ministries and agencies, including cross-sector policy coordination. Notable p rogress has been made since the establishment of PISG in March 2002 in setting up the civil service system in Kosovo. Most ministries, for example, have reviewed their organizational structure, mission statement and strategy. Overall strengthening of these systems, including ensuring their coherence with good civil service design principles is an important next step in consolidating the progress made so far in building the capacity of the public sector in Kosovo. The management of ministries could also be further strengthened by the establishment of Management Boards, appointed by the respective Minister and composed of the Permanent Secretary and all Directors of the ministry. Based on consultations between UNMIK (civil administration) and relevant stakeholders in October 2001, it was decided that the organizational structures of ministries would consist of the following administrative units: departments, divisions, sections and units. The implementation of this standardized structure, however, has not been as consistent as earlier envisaged. The result has been the creation of structures, which, in some cases, are not even compatible with the conventional organization of government. There are ministries, for example, that are organized into ten departments, which by any standard, would create an inordinately long span of control for ministers and permanent secretaries. The lack of uniform standards for structures of ministries has certainly made it more difficult to create a coherent civil service system at the central level. The reason for this weak compliance by ministries can partly be explained by the fact that no administrative direction was issued immediately following the promulgation of Regulation 2001/19 of 13th September 2001. As the regulation only defined the functions and responsibilities of ministries and permanent secretaries, the design of the formal structures of ministries did not follow a common standard. Weak harmonization of structures of ministries has also led to the creation of more than 1.200 job designations in the civil service. The Ministry of Public Services, at the earliest, should issue an Administrative Direction that defines the structural taxonomy of ministries. As an important organizing principle, the role and functions of central PISG ministries should be focused on policy-making, human and financial resources management, performance management and monitoring and evaluation, while execution and service delivery should be largely devolved to field offices and agencies. Regulation 2001/19 on the Executive Branch of the Provisional Institutions of Self-Government in Kosovo promulgates what functions have been transferred to ministries and other organs of selfgovernment. It also specifies that the exercise of Executive responsibilities in no way affects or diminishes the ultimate authority of the Special Representative of the Secretary General (SRSG) for the implementation of UNSCR 1244. The regulation also makes it clear that the SRSG can assign international and other personnel to ministries and executive agencies to perform such functions judged by him to be appropriate and necessary. In this context, the SRSG appointed Principal International Officers (PIOs) to each ministry and other entities in the PISG. Later, as Kosovars 2 assumed greater responsibilities for functions of the Executive, the terms of reference (TOR) for the PIOs were revised by UNMIK to reflect primary focus on the advisory and oversight role. The TOR for Municipal Administrators has similarly been revised to reflect a comparable role at the local level.

2

In this paper, the term ‘Kosovars’ generally refers to all ethnic groups in Kosovo, namely, Albanians, Serbs, Roma, Turks and others.

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The transfer of civil administration functions from UNMIK to the new PISG is guided by the “standards before status” policy, articulated by the SRSG on behalf of the international community. The handing over process has two distinct dimensions: (a) the transfer of political authority to make certain decisions, and (b) the passing of executive functions from international staff to Kosovo civil servants. With the establishment of the PISG, the transfer of political authority in agreed areas (Chapter Five) has taken place. The second part or the handing over of executive functions from internationals to the Kosovo civil service is an ongoing process. This transfer of managerial and decision-making authority in the civil service is no small undertaking, considering the extensive involvement of international staff in the running of government. While local staff played an important supporting role, decision-making and management, until very recently, was largely vested with international staff. To provide strategic direction to the transfer process, the SRSG, on behalf of the international community has developed benchmarks, which provide the standards for measuring progress of the PISG in building sustainable institutional capacity. The benchmarks are intended to facilitate closer integration of Kosovo into the European Community. More specifically, UNMIK has developed the following criteria for the transfer of executive responsibilities from international staff to local civil servants3: (a) there should be stability during the transition, (b) the handing over should be sustainable, and (c) the process should incorporate provisions for adequate safeguards for ensuring that the responsibilities of the UN, through the SRSG, for compliance with the requirements of the SCR 1244 and its important elements can be carried out. PISG institutions are expected to develop concrete plans on how to realize the targets set out in the benchmarks. Most of the competencies listed in Chapter Five of the CF have already been transferred to the PISG. Kosovo institutions now control well over two-thirds of the Consolidated Budget (CB), and enjoy wideranging powers in many fields of government, such as health, education, social welfare, and municipal government. In February 2003, the SRSG formally transferred the tax administration function from the Central Fiscal Authority to the Ministry of Finance and Economy. From now on, the Minister of Finance and Economy will issue administrative instructions necessary for the effective operation of the tax administration system. Some ministries, such as the Ministry of Trade and Industry and Ministry of Transport and Communications, already perform all the responsibilities ascribed to them by Chapter Five. As of April 2003, there were approximately forty-four Chapter Five responsibilities that had not yet been transferred to the PISG. The TC will discuss the exact timing of the handing over of these specific functions based on the above -cited criteria. As mentioned earlier (see enabling environment), the transfer process will be conducted progressively to ensure that adequate capacities are in place to realize the standards as stipulated in the benchmarks. The powers and responsibilities set out in Chapter Eight of the CF are reserved for the SRSG, and shall remain so. However, Kosovars acting under the authority of the SRSG already perform a number of related operational and administrative functions, and others are carried out in consultation with Kosovo institutions. The TC will discuss how the involvement of Kosovars and local institutions can be further increased in the reserved areas. Both UNMIK and the PISG will monitor and report on progress in realizing the targets set out in the benchmarks, including the compliance of relevant institutions. Generally, the responsibilities of Kosovars and their institutions to meet the standards will increase with enhanced involvement and capacity development. UNMIK has further delineated the essential prerequisites for the successful transfer of responsibilities from international staff to Kosovo civil servants. These include: (a) sound organizational structure of ministries, (b) recruitment of appropriate local staff to perform the relevant vacancies, (c) development and implementation of relevant rules and procedures for carrying out the functions of ministries, (d) capacity building strategies to strengthen the functioning and sustainability of the public administration system, and (e) the establishment of sound internal and external control mechanisms, particularly considering the oversight role of UNMIK as defined in UNSCR 1244. Most municipalities have put in place the necessary structures and procedures essential for effective functioning of these bodies, including a statue; rules and procedures for the conduct of meetings; financial management systems and procedures; and establishment of the mandatory committees. While the
3

See a paper prepared by Madhav Lal, Head of Management Review Unit, Pillar II, UNMIK, September 2002

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basic legal, policy and institutional infrastructure has been place, the performance of municipalities has so far been quite uneven for various reasons. In some municipalities, for example, assembly and/or committee proceedings are characterized by intense political and personal rivalry, often irrelevant to the actual business of local government. It is felt that the performance of many municipal assemblies, as well as the Boards of Directors, have so far not met expectations. Municipalities have also to a very limited extent engaged local citizens in consultations on important policy and work planning issues. Generally, the functioning of municipal assemblies could be improved by better-prepared and conducted meetings, including providing documents on time; greater public input into policy deliberations; more efficient secretariat services; enhanced work of committees; and better links with outlying villages. Many municipalities also suffer from lack of professionalism in public administration; absence of essential rules for the functioning of the assembly secretariat; guidelines for the establishment of portfolio committees; inadequate administrative systems and infrastructure; weak management; insufficient understanding of assembly members of their roles and responsibilities; and poor institutionalization of the principles of transparency and accountability in public management. As part of regular oversight, UNMIK and MPS should undertake periodic organizational reviews of municipal administrations to promote enhanced efficiency and results-orientation in their work. The delive ry of public services in many municipalities also suffers due to weak productivity of staff and a highly inefficient administrative culture. As municipalities put in place the basic infrastructure for public administration, the focus of institutional strengthening has to move towards the creation of a performance-based organizational culture. This would undoubtedly require strengthening of pay and incentives and performance management systems, including performance appraisal, as well as the development of clear codes of conduct for municipal employees. As stipulated in the Constitutional Framework, the Prime Minister is responsible for a coordinated and coherent government policy. The Office of the Prime Minister (OPM) also monitors the progress of the PISG in formulating and enacting its legislative agenda in the Kosovo Assembly. Draft Guidelines on Executive Business have been developed to regulate the coordination of governmental policy at the highest level. These guidelines are intended to balance the principle of individual ministry responsibility with the need for collective responsibility of the cabinet for overall government policy. The purpose of the draft Guidelines on Executive Business is to ensure the unity and coherence in overall government policy and politics; to support the Prime Minister as the coordinator of the government, including providing the incumbent with an instrument to coordinate ministries; to introduce the notion of collective government responsibility in addition to individual ministry responsibilities; to promote decision-making by consensus; and to ensure that the views of communities are represented in all major decisions made by the PISG. With support from OSCE, the PISG has created two advisory offices in the Office of the Prime Minister, namely, the Advisory Office of Good Governance, Human Rights, Equal Opportunity and Gender, and the Advisory Office on Communities. These offices are staffed and led by Kosovo civil servants and supported by international advisors. Their mandate is to advise the Prime Minister and the PISG ministries; to review draft legislation; and to develop policies and guidelines that are aligned with European and international standards regarding good governance, human rights and equal opportunity principles. The Advisory Office on Good Governance, in cooperation with the World Bank and the Council of Europe, has also drafted a comprehensive anti-corruption plan for the PISG. A proposal on reporting by ministries with respect to both the PISG’s program and the benchmarks has also been developed. The new reporting structure envisages that ministries prepare semi -annually reports on what has been accomplished in the past six months, as well as detailed plan for future program implementation. It would b the responsibility of the proposed Office for Strategic Policy and Planning e (OSPP) to compile and analyze the information provided by ministries and to prepare an overall report for the whole of government. At the initial stage, the focus of the reporting structure would be on progress realized in implementing the PISG program. Consultations held to introduce the draft reporting structure revealed that in many ministries those responsible for the implementation of the PISG program were not adequately familiar with this important policy document. The plan is that as soon as the reporting machinery has been sufficiently internalized by ministries, the emphasis would shift towards focus on the

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implementation of the benchmarks. This reporting structure would also be fully aligned with the UNMIK benchmarks reporting formats. Guidelines have recently been issued by the Office of the Prime Minister for drafting and submitting laws to the PISG and the Kosovo Assembly. The law-making process would begin with the respective ministry developing an Explanatory Note (EN) and forwarding to the Ministry of Finance and Economy, the Ministry of Public Services, UNMIK Office of the Legal Adviser, and Office of Political Affairs for review and comments. For the development of each law, a drafting team is set up. Upon completion of the draft law, the Office of Legal Support Services (OLSS) and the drafting team are required to develop an Evaluation Document (ED) for the Prime Minister and the respective sector minister. The Evaluation Document is intended to demonstrate that the draft law is sufficiently in compliance with (a) the previously agreed principles articulated in the EN, (b) EU standards, (c) protection of community rights and interests, and (d) the overall legal framework in Kosovo. The draft guidelines for legislative drafting also require ministries to perform a cost-benefit analysis of the respective law, including discussing the administrative consequences for the PISG and municipalities. Draft law in three languages and an Explanatory Memorandum, outlining the purpose of the law and other relevant information, will accompany the ED. Upon approval of the PISG, the Permanent Secretary in the OPM will forward the draft law to the Secretary of the Assembly. If well implemented this new framework has the potential to greatly improve the quality and cost-effectiveness of the legislative drafting process in Kosovo. Although the PISG has put in place important rules and regulations to facilitate policy-making processes at the governmental level, there is lack of critical mass of effective institutional capacity to formulate, coordinate and evaluate strategic policy options in Kosovo. To address this capacity constraint, a proposal has been developed to set up an Office of Strategic Policy and Planning (OSPP), which would be located within the Office of the Prime Minister. The OSPP would consist of three divisions/units, namely, a Program Implementation Advisory Unit (PIAU), a Strategic Planning Unit (SPU), and a Financial Strategy Unit (FSU). The PIAU would track the implementation of the PISG’s program; identify short-term challenges; provide tactical recommendations; and provide building blocks for an update or a new program. The role of the SPU would be to provide the PISG with impeccable evidence-based policy analysis of challenges affecting the long-term prospects of Kosovo. The FSU would provide strategic financial analysis of the overall policy planning process. The FSU would also become a depository on activities of development partners in Kosovo. Building strong central institutions for strategic policy-making is very important for sound socioeconomic development in Kosovo. While the Ministry of Finance and Economy (MFE) can be expected to play the leading role in the formulation of strategic policy options in the economic sphere, there is much need for the creation of a mechanism at the highest level of government to link such important work to other key development planning processes. The Office of the Prime Minister, for example, has a particular responsibility to ensure that public administration-related strengthening is effectively coordinated with both economic and fiscal reforms. A major challenge in Kosovo is to provide politicians with the flexibility needed to formulate policies, but embed their decision-making in processes that allow for input and oversight from stakeholders. While politicians set strategic goals, only strong institutional capacities will ensure that those objectives are realized. Effective policy-making bodies can also make the costs of competing alternatives transparent, ensuring that leaders are well informed in selecting the preferred option. The rules and norms embedded in the policy-making should similarly be designed to curb uncoordinated political pressures on the decisionmaking process. If politicians and civil servants only pursue their constituents’ immediate agenda, the results may be collectively undesirable, if there is no mechanism in place to shape them towards a common goal. With this in mind, it is recommended that PISG set up as soon as possible the proposed Office of Strategic Policy and Planning within the Office of the Prime Minister. At the heart of policy-making systems are mechanisms for reviewing and preparing policy proposals. Policy units in ministries play a key role in formulating the sector policies in Kosovo. In addition, a vital component to these mechanisms is effective capacity at the center of government, such as a wellfunctioning cabinet office that can facilitate consultations and coordination among ministries and

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government entities. To promote greater discipline in the policy-making process, some countries have even begun to require ministries and departments to publicize the medium-term cost of competing options. Strong institutions also provide safeguards against political instability. It is recommended that PISG make special efforts to strengthen the technical and consultative capacity of policy units in ministries and municipal administrations as part of the institution building process in Kosovo. In Kosovo, it seems that clear lines of accountability between ministries and executive agencies have not yet been established in the area of service delivery, mainly due to the very recent form ation of the PISG. The basic tenet of this approach is that ministries develop service delivery standards and monitor the implementation of specific outputs and outcomes, while agency heads are given greater managerial autonomy and flexibility to achieve the agreed targets. The so-called information asymmetry between ministries (purchaser) and executive agencies (suppliers) when it comes to service delivery is primarily dealt with through contract -based arrangements. Service agreements specify the expectations of both sides, including the costs, the quantity and quality of services purchased, as well as the timing of delivery. In order to promote greater clarity in the roles and responsibilities of the PISG and the municipalities in service delivery, the PISG could consider piloting the use of service agreements between ministries and executive agencies. Contracting out service delivery to private firms or civil society organizations are also options that governments have used to improve cost-effectiveness of the provision of public goods. In countries where both markets and state capacities are weak, options for contracting out are fewer. But, where outputs are easily specified and direct competition is impossible, competition managed through such arrangements as service contracts, management contracts, leases, and long-term concessions can yield efficiency gains. Better management of the principal-agent relationship is particularly important when it comes to service delivery. This means greater clarity in the roles and responsibilities of the funding organization, typically a ministry, and the supplier of the service, generally an executive agency, a publicly owned enterprise, civil society or private sector organization. However, contracting out is no panacea, and often subject to corruption within the public sector. Strong oversight is therefore required to limit such opportunities (see section on enabling environment). In Kosovo, the PISG may wish to study whether there are certain areas of service delivery, where enhanced competition could improve cost-effectiveness and client satisfaction. Considering the high socio-economic benefits of incremental improvements in service delivery, the PISG could make it mandatory for executive agencies and those involved in service delivery to undergo at regular intervals organizational review and re-engineering. The institutionalization of such processes in key organizations could help foster a culture of continuous improvements in the public sector. Each public organization involved in the delivery of services should similarly be required to have in place an institutional development plan that defines specific capacity development needs, and how they will be addressed. Public utilities are particularly important for service delivery in Kosovo. However, they generally suffer from similar problems, such as major under funding; poor management; decrepit or inadequate equipment; lack of coherent vision for the development of the relevant sector; and almost complete insulation from competitive pressures. Public utilities are also in need of substantial investment in the near future. The scale of resources required to develop most sectors far exceeds funds locally available, which means that the only sustainable solution is to attract private sector investment. It is recommended that PISG undertake a feasibility study to examine the costs and benefits of privatizing some of the public utilities. Some countries have created a central feedback mechanism that collects information from the public on services delivered by government institutions. The PISG, and particularly the MPS, may wish to consider establishing such a mechanism at the central level to enhance voice and participation of citizens in public management. There are also strong arguments for greater involvement of the public in the design and implementation of services and programs, such as those dealing with education. Citizens’ charters, service and quality standards, performance contracts and report cards are other recent innovations being used in some countries to promote greater accountability of public organizations and senior officials in civil service management and service delivery. Performance contracts, for example, are instruments increasingly used to strengthen the accountability of top-level officials for the overall performance of ministries and agencies. PISG has yet to

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move in a significant way in that direction. Such accountability arrangements foster clarity of purpose and task when it comes to the expectations of senior civil servants. Any increase in the salaries of senior officials as the result of the introduction of an innovation of this type, would most likely have to be compensated with a reduction in the overall staff establishment in the civil service. It is suggested that the PISG study the costs and benefits of establishing a system of performance contracts for senior civil servants. Client surveys, published benchmarks, value-for-money studies and codes of conducts are other examples of innovations introduced in recent years to change the relationship between civil servants and citizens. These mechanisms also provide increased external pressure on managers to deliver services efficiently and effectively. In many countries, there are increased pressures on public agencies to report annually on their performance, as well as on the main inputs invested in the production of outputs. To create enhanced demand for better services, the PISG could improve education to citizens in terms of what services they should expect from public organizations. The PISG could also enhance the use of client surveys, published benchmarks, value -for-money studies and codes of conduct in the public service, as tools to promote greater cost-effectiveness and responsiveness in the delivery of services. The notion of civil servants being accountable to citizens is still new to many PISG employees, as well as the general public. Respect for important governance principles, such as transparency, rule of law, efficiency, results-based management, equity, and integrity, is also at an incipient stage of development in the Kosovo society, including the public sector. Institutions involved in the delivery of public services, therefore, are often not judged by their performance in meeting the needs of clients, but rather by strict adherence to rules, regulations and procedures. Civil servants sometimes do not treat services as the right of citizens, but rather as resources to be controlled. The net result is that performance and service-orientation is lacking in the organizational culture of most public institutions in Kosovo.

Processes.
Participatory policy-making is slowly beginning to take hold in Kosovo. For example, the new Green Book – Strategy for Sustainable Agriculture, Forestry and Rural Development, was developed with extensive participation of the staff of the Ministry of Agriculture, Forestry and Rural Development, and external stakeholders. The Green Book describes the agricultural policy and strategy for the next few years in Kosovo. The development of the new agricultural strategy is generally considered a model in participatory policymaking in Kosovo. Another good example of participatory policy-making in Kosovo was the UN -Habitat organized public forums to discuss the preparation of legislation on spatial planning. Since assuming office in March 2002, the various ministries of the PISG have either begun formulating new sector policies or updating those already on the books. These exercises have undoubtedly helped to further strengthen the policy formulation capacities of ministries and contributed to the development of an organizational culture of consensus building. At the same time, the work of many ministries continues to suffer due to heavy backlog of laws, by-laws and policies that need to be formulated and adopted. While it is important to further strengthen the technical and analytical capacity of policy units in ministries, it is no less important, particularly in the context of post-conflict Kosovo, to build-up the skills of staff in consultative policy-making.

Human Resources Management.
While the legal, policy and regulatory system for human resources management in Kosovo generally constitutes a ‘good practice’ based on European standards, there is evidence of low level of compliance by PISG ministries with key aspects of this framework. This may be partly explained by the following: (a) lack of awareness and understanding by politicians and senior civil servants about their responsibilities for the implementation of the law, (b) possibly lack of willingness to implement key principles of recruitment and political impartiality, (c) absence of an independent oversight function to ensure compliance with the law, (d) pressure to rapidly recruit staff to transferred functions, (e) delays in finalizing and promulgating the AD and key personnel procedures to support the law and the AD, (f) key appointments to the Ministry of Public Services (MPS) and the Department of Civil Service Administration (DCSA) only being made and confirmed towards the end of 2002 and early 2003, (g) potential rapid expansion of ‘core’ civil service due to reserved functions being transferred to PISG, and (h) limited progress on key supporting initiatives, such as the Kosovo Institute of Public Administration (KIPA), the pay and grading exercise, and the development of a personnel information system (PIS).

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

The challenges experienced in institutionalising a modern human resources management framework in Kosovo clearly underline the inherent difficulties in creating from scratch a transparent and rule-based system in an environment where public administration had for a long time been based on a very different tradition. It is therefore of great importance to strengthen both oversight and compliance mechanisms (e.g. OBK) in the public service in order to change deep-rooted behavioural patterns of civil servants. It should also be a priority to strengthen the functioning of human resources management units in ministries and municipalities, as they play a key role in ensuring that personnel standards are adhered to. An important reason for the current lack of managerial and leadership capacity in the civil service is the fact that for more than a decade Kosovars-Albanians were largely excluded from senior posts under the previous regime. This lack of qualified human capital constitutes a major constraining factor for civil service management in Kosovo. It also highlights the need for the formulation of a human resources development strategy that effectively addresses the current capacity gaps in the public sector. Another notable weakness of the civil service system in Kosovo is that ministries have been allowed to create posts without adequate review by an establishment authority at the central level. In most countries, the Ministry of Finance would exercise the establishment control in the public service, while in Kosovo, UNMIK, in collaboration with the Ministry of Public Services, performs this function, although to a limited extent. As a result, the number of senior posts has expanded quite rapidly in some ministries, which, in certain instances, has made the organizational structure very top-heavy. There is real possibility that continued weak establishment control, could lead to further burgeoning of posts in the civil service in Kosovo. As a priority, the MFE and MPS, in close cooperation with UNMIK, should discuss ways to reform the establishment control system in the public service. The ongoing pay and grade review should also result in an Administrative Instruction, defining the salary levels for each post based on work-related responsibilities. Without standard structures, post classification and pay grades, it is difficult to develop a coherent civil service system. The PISG may also wish to consider establishing a sub-committee of the proposed Institutional Development Group (see management and coordination arrangements), charged with responsibility for certifying that the structures of ministries meet agreed standards. Transparent and accountable personnel management in the civil service, including the development of a career-based system, relies heavily on a common organizational structure of ministries. The pay and grading review should also develop concrete proposals to better link pay and career progression with a formal performance appraisal mechanism in order to promote greater wage de-compression in the public sector. It’s particularly important to improve the conditions of service for senior officials who formulate policies and direct their implementation. In addition, the PISG and UNMIK could consider the creation of a Public Sector Remuneration Review Board to advise the self-government on salary and wage policies for civil servants. The PISG has not yet adopted an integrated human resources management system, consisting of components dealing with (a) a career development, (b) remuneration, (c) ethics and professionalism, (d) training, and (e) personnel information. While considerable work has been undertaken in some of these areas, it has not yet been integrated into a coherent human resources management system. Other important priorities in the area of human resources management include the finalization of a Personnel Manager Handbook; the development and installation of a personnel information system in ministries and municipalities; the creation and intensive capacity development of human resources management units and plans in municipalities; major capacity development of the Department of Civil Service Administration (DCSA) as the center of modern and professional personnel policy development in the Kosovo civil service; and training of ministers, permanent secretaries, as well as municipality presidents and CEOs in their respective roles in the public administration system. So far, the PISG has opted for a position rather than a career-based (mandarin) system for recruitment into the civil service. Career-based systems have been used in countries such as France, Germany and Japan, while position-based (open) systems are more common in countries following the Anglo-Saxon administrative tradition, including the United States and New Zealand. Open systems provide more flexibility to match job requirements with available skills, including hard-to-find technical expertise. Open systems also discourage insularity in the civil service by bringing in, at all levels, staff with fresh perspectives and new

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

ideas. Career-based systems, on the other hand, are generally characterized by highly competitive entrance require ments and closed entry at middle and senior levels. Where well-qualified human resources are in short supply, as in Kosovo, mandarin systems may well be the preferred basis for more selective approach to personnel management, particularly as a career-based system promotes loyalty of the civil servant to the long-term objectives of Kosovo. Considering the importance of good public management for socio-economic development in Kosovo, it is suggested that PISG undertake, as soon as possible, a study to review the advantages and disadvantages of adopting a career-based system for personnel management in the civil service at both central and local levels. The training needs assessment, undertaken by MPS in close cooperation with OSCE, UNDP and EAR, concluded that KIPA should be small, flexible and financially sustainable, and funded from the Kosovo Consolidated Budget during the ‘development phase’. While the establishment of KIPA should be accorded high priority, there is also need for the initiation of an academic and professional public administration program at the university level – a program that could build up advanced public policy skills of welleducated young civil servants in Kosovo. With support from the OSCE, the PISG is planning to start a Batchelor Program in Public Administration in the fall of 2003 In Kosovo, MPS performs many of the policy-making functions traditionally assigned to a Public Service Commission. It is suggested that the PISG consider creating a Public Service Council, charged with providing expert advice to senior PISG and UNMIK policy-makers in the area of human resources development and management. A Public Service Council could also act as a forum for various stakeholders to debate strategic issues related to the management of the human capital in the civil service, as well as the delivery of cost-effective services to the population.

Financial Resources Management.
A sound financial management system is central to the effective implementation of a prudent fiscal policy. In January 2003, the Kosovo Assembly adopted a Law on Public Finance and Accountability. This law is currently with the SRSG for review. A Public Procurement Law is also at the final stages of approval by the cabinet before submission to the Kosovo Assembly for review and adoption. These important laws, when adopted, will provide an important enabling environment for the development of much needed systems and procedures to manage public resources. In Kosovo, there is great need to build up strong administrative and financial management systems in the public service. The PISG, as soon as possible, and with support from UNMIK (civil administration), should develop handbooks for administrative and financial management in the civil service, followed by intensive capacity development and training of staff. UNMIK could particularly strengthen the capacity of those central departments charged with the development of administrative, human resources and financial management standards, rules, procedures and capacity building material. PISG would also do well to invest in the development of sound systems for monitoring, accounting and auditing. While training is essential to bring about an attitudinal change in civil servants at both central and municipal level, it is probably more important, particularly in the short-term, to institutionalize the use of rules and procedures in the civil service, including those governing the executive business of the government (a draft has been prepared); office management, including r utine matters, such as travel o entitlements, expenditures on hospitality etc; delegation of financial and administrative powers; pay, including defining the salary levels attached to individual posts; and accounting. There is also great need to further strengthen rule-based financial, administrative and personnel management systems in the civil service at both central and municipal level. Strengthening of administrative and financial systems, for example, could help sharpen the demarcation between politics and civil service management at both levels.

Information Resources.
Effective application of information technology can also help to strengthen the common identity of the Kosovo civil service. Although there are some considerable technological hurdles to be overcome to effectively utilize information technology in Kosovo, the PISG could consider the formulation of a short, medium and long-term e-government strategy. This process could begin by creating a uniform home page for the PISG with the intention that all ministries would subsequently follow the same format, once on line.

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

The PISG program, adopted in May 2003, has identified the development of a comprehensive telecommunications law and the establishment of an independent regulator, as important public policy priorities for the self-government. The formulation of an e-government strategy could become an integral part of this comprehensive IT transformational process. The PISG could also promote, through IT-based solutions, the sharing of ‘best practices’ in service delivery to foster greater comparison and competition among agencies. Some agencies, such as the Kosovo Electric Company (KEK) are trying to inculcate values that aim to promote a culture of customer service and efficiency among staff. The KEK, for example, has put in place an information system that enables customers to inquire about usage of electricity, outstanding balances etc. Customers can also complain if they are not happy with the services of the KEK. The PISG could publicize such IT-based innovations to promote enhanced comparison and competition among service delivery agencies. The general paucity of socio-economic data does hamper regular assessment of progress made in human, social and economic development in Kosovo. Without longitudinal data, for example, it is almost impossible to assess the impact of government policies, or to identify areas where additional resources could have high socio-economic impact. Where data exists, institutions lack capacity to analyze and use such information for planning purposes and to improve service delivery. As an example, Kosovo spends more than 20 per cent of its annual budget on education and health, but has one the highest infant and maternal mortality rates in Europe, and literacy rates among women and girls that remain well below the regional average. The strengthening of statistics collection in the public sector should be an important policy priority for the PISG.

3.3

Human Resources Development

Job Requirements, Skills & Needs.
The civil service in Kosovo generally suffers from a capacity deficit, where only a small percentage of public servants have completed tertiary education, and the vast majority has merely basic or low education levels. The public service particularly lacks e xperienced and senior civil servants, reflecting the fact that Kosovars-Albanians were largely excluded from management positions in the civil service during the 1990s. The UNMIK-PISG capacity development strategy, adopted in April 2001, requires departments to recruit or appoint citizens of Kosovo to all senior and middle level posts in the civil service, and to systematically transfer substantive responsibilities and authority to them from international staff. Realizing this objective, particularly in the short-term, will be no easy task for the above -cited reasons. The civil service, therefore, needs a major investment in human resources development. If managed effectively, this investment in the human capital could offer high economic and social rates of return for Kosovo. As a first step, it is recommended that the PISG prepare a manpower plan for the civil service for the next 5-10 years. The plan could identify critical competencies required for an effective public administration in Kosovo; assess current and projected capacity gaps; and formulate a strategy on how to further build up the quality of the human capital in the civil service. The establishment of a professional, stable and multi-ethnic civil service, composed of motivated and knowledgeable personnel and capable of performing their functions efficiently and effectively, is essential for socio-economic development in Kosovo. However, as mentioned earlier, the availability of qualified human resources to assume senior and middle level managerial positions is likely to remain an important constraining factor for effective management of the civil service, particularly in the near-term. The PISG will therefore have to focus primarily on capacity development of existing staff, as the supply of welleducated entrants into the civil service is likely to remain low for quite some time. The ability of PISG to attract and retain a fair share of the best talent is essential for the long-term development prospects of Kosovo. Studies by OECD 4 and others have highlighted the role of pay and
4

OECD, Public Sector – An Employer of Choice? Report on the Competitive Public Employer Project, 2001

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

incentives, career prospects and the image of the public sector in attracting a sufficient pool of competent individuals into the civil service. Based on the proposed manpower plan, the PISG should formulate a strategy that would propose specific measures aimed at attracting and retaining a fair share of the best talent for employment in the civil service. This may require activities to enhance trust in government; to reform human resources management systems; to improve working conditions of staff; and special efforts to enhance the professional image of the public service. About 5-7,000 civil servants work directly for ministries, a group that constitutes the core civil service in Kosovo, as it is usually defined. The efficacy and organization of this key group of civil servants has major implications for the overall throughput of the public service in Kosovo. As PISG asserts greater authority over executive line functions, the capacity building of this cadre becomes particularly important for the long-term development and integrity of the civil service. It is, therefore, recommended that the PISG mandate each ministry to formulate a capacity development plan for staff, particularly as external resources decline, ministries, will increasingly have to budget for training-related activities from own funds. OECD countries, for example, spend on average about 6-7 per cent of the wage bill on capacity development of employees in the public sector. PISG also needs to begin the development of a strategy to further strengthen policy capacities in government at both central and municipal levels. More specifically, there is need to increase the number of policy experts and legal draftsmen in the service of the self-government, by inter alia establishing a university program in public administration that attracts promising young graduates. The PISG also needs to examine a range of issues relating to the enabling environment for the development of effective policymaking competencies in the civil service. This may require review of salaries and incentives in the public service, within the relevant budget constraint; redesign of career paths; and changing the image of the public sector in order to attract talented individuals into managerial and policy-making functions in government.

Training, Re-training & Individual Learning.
During the first phase of UNMIK’s mission from mid-1999 to early-2000, the focus of work was mainly on moving from emergency and humanitarian crisis management to the performance of day-to-day civil service functions5. Rudimentary institutions were established during this period, mainly staffed by internationals with local employees performing support functions. Most of the training was focused on capacity development of international staff and skill building of locals in basic administrative functions. The Municipal Elections held in October 2000 heralded the transfer of administrative and managerial functions to local administrations. Considerable basic training was provided to local government staff by OSCE, which had been mandated to provide civil service training, through the Institute of Civil Administration (ICA), following the election. In total, the ICA has trained more than 5.000 civil servants at both central and municipal level through a variety of courses, both short and longer-term. It is estimated that OSCE has provided approximately 85 per cent of the civil service training in Kosovo to date. Other important training suppliers in Kosovo include UNDP, DFID, USAID, CIDA, EAR, World Bank, Swiss Agency for Development Cooperation, Council of Europe, Sida, Kosovo Foundation of Open Society, OHCHR, Kosovo Police Service School, Kosovo Civil Society Foundation, and the Kosovo Education Center. In 2001, the JIAS departments were increasingly tasked with policy, legislative and public services’ functions, whilst accountable to a group of representative political bodies, chaired by the SRSG. In order to achieve the goals set out in the UNMIK-PISG capacity building policy, adopted in April 2001, more specific and job-related skills development needs were identified and many workshops were organized to build up core public administration competencies. Since the General Elections in November 2001 and the creation of the PISG in March 2002, the training of civil servants has been further intensified, as executive line functions have been rapidly transferred from UNMIK to the new self-government. A working group composed of representatives from local stakeholders and selected development partners had formulated a training policy towards the end of 2001. One of the recommendations of the working group was to establish a dedicated civil service training institute - the Kosovo Institute of Public
5

See paper prepared by Mr. Peter Schumann, Principal International Officer, MPS, November 2002.

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

Administration (KIPA) - as an executive agency of MPS. It was envisaged that KIPA would deliver core courses for all civil servants with the aim of promoting high professional and ethical standards in the civil service. In the short-term, however, development partners under the coordination and quality control of KIPA would mainly provide training. More specialized courses would be supplied by the respective sector ministries. From October to November 2002, MPS with support from OSCE, UNDP and EAR conducted a detailed training needs assessment of all ministries, the Office of the Prime Minister and three municipalities, as a precursor for the establishment of KIPA. This important study was the first attempt to develop a comprehensive capacity development and training strategy for the civil service. The training needs assessment study revealed that staff would particularly like to focus capacity development efforts in the following areas: computer skills, the English language, budget and finance, procurement, personnel administration, and management. The study also identified six generic priority areas for capacity development and training in the civil service: (a) public administration (role and responsibility, good governance, service management and delivery), (b) legal framework (new Kosovo laws and regulations), (c) economy and finance (budget procedures, general financial procedures), (d) human resources issues (appraisal, recruitment and procedures, coaching), (e) management (strategic, operational), and (f) communications. Prior to the organization of the training needs assessment, the planning of capacity development activities had not been based on a common strategy amongst the suppliers of training services. For obvious reasons, the training had also focused primarily on imparting basic knowledge and core skills, considered essential for a functioning public administration to managers, middle and senior officials, specialists and administrative staff. The training did not focus so much on changing the values and attitudes of civil servants with the aim of transforming the administrative culture of the civil service in Kosovo. Based on the findings of the training needs assessment, the UNMIK Administrative Direction (2003/2), stipulated that future training should particularly focus on general management principles, and on areas, such as the Kosovo legal framework, human resources management, public finance, budget management, information management, and general administration. Three priority groups were identified for training at the central level: (a) a core group of Permanent Secretaries and Chief Executive Officers in the ministries and executive agencies, (b) employees of the Department of Civil Service Administration (DCSA) in each ministry, and (c) he ads of departments and divisions. At the municipal level, the training is to focus on the Chief Executive Officers, the heads of departments, and those responsible for general administration. KIPA is expected to play a key role in developing a competent civil service in Kosovo. The institution is also expected to focus on adapting the skills and qualifications of civil servants to modern administrative and technological changes. The primary target group for training at central and municipal level is estimated to be around 7,000-9,000 civil servants. It is quite critical for the effective functioning of the PISG, that this core group of staff in ministries and local government be highly motivated, capable and anchored in a value system that promotes results and customer-orientation. In the future, when a training market has evolved, ministries, agencies and municipalities, would be expected to earmark specific funds for training in their respective budgets. As the supply of training opportunities by development partners gradually declines over the next few years, the PISG would need to put in place an enabling environment that encourages staffdriven capacity building. Most ministries and municipalities suffer from lack of policy and legal expertise to formulate costeffective policies and regulations. Officials in ministries, for example, have not been adequately trained in performing cost-benefit analysis of alternative policy options. Policy advisers and legal draftsmen also need specialized training to further enhance their capacity to formulate and evaluate laws, regulations and policies. There is similarly need for much greater investment in leadership and change management training of managers and senior officers of important service organizations in Kosovo, including increased exposure to ‘best practices’ in other countries. The training of managers could inter alia focus on (a) how to set performance standards and incentives for staff, (b) how to ensure compliance of staff, and (c) techniques to seek the views of clients as it relates to the delivery of services.

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

Of all public sector employees, administrative support staff is generally in most need of capacity development and training. For this group, there is particularly need to strengthen induction training 6 (ethics, service provision, organization, protocol); office administration (filing system, documentation usage, form usage, reporting); communications (oral, written, meetings, group work); service training (telephone answering, dealing with problems, conflict resolution); and IT end user development (MS Word, MS Excel, MS Outlook, MS Access). Specialized regulatory bodies in Kosovo also require significant strengthening of policy-making capacities, particularly considering that the vast majority of rules and regulations, issued by the PISG, is secondary legislation that can have profound impact on the lives of citizens, as well as the enabling environment for private sector development. A careful cost-benefit analysis of regulations can often greatly improve their cost-effectiveness. Taking into account the growing importance of regulations for socioeconomic development, the Kosovo Assembly should also strengthen its capacity to provide legislative oversight of such secondary law instruments. Addressing the current deficit of policy specialists will require intensive training of both senior civil servants and promising middle-level staff in ministries in the core skills required for effective policy development in government. The training offered by development partners will increasingly have to focus on this target group, particularly as the PISG becomes more directly responsible for policy-making in the public sector. UNMIK may also have to engage experienced consultants and advisors with significant expertise in policy-making to train key officials in the self-government, as well as to provide advisory services in specialized areas. Opportunities may similarly have to be provided for legal draftsmen to attend overseas training programs in reputable institutions. Poor implementation skills of staff are a major impediment to socio-economic development in Kosovo, including the efficient service delivery. The inherited administrative tradition did neither reward nor promote client-oriented service delivery. A major change of attitude is needed – change that has to begin at the highest level of the civil service. Management training and enhanced emphasis on ethics and efficient provision of services to the public should become priority areas for the PISG in order to foster the creation of an organizational culture in the civil service that promotes accountability and customer-orientation among civil servants at all levels. Strengthening service delivery in the areas of education and health is also particularly important in Kosovo. This will require extensive training and capacity development of administrators and managers in both sectors. At the administrative level, the effectiveness of municipalities could be enhanced by further training, particularly on-the-job, in personnel management; finance and accounting and budget preparation; procurement; inventory management; administrative support services, including computer skills and data base management; office management; project identification, preparation, implementation and monitoring; report and memo writing; drafting of regulations; and internal control and auditing.

Values, Ethics, Attitudes, Morale & Motivation.
An important constraining factor for more effective civil service management in Kosovo is the poor motivation and work ethic of some public servants. Many factors explain this lack of motivation and resultsorientation, including poor salaries and incentives, particularly compared with international staff and the private sector; weak performance management systems and standards; poor training of staff; and undeveloped leadership and change management skills among senior staff. Changing the performance of service delivery organizations in Kosovo will require intensive training in customer-orientation among staff in the public sector. Professionalization of the civil service, including ethics and values training, should therefore be accorded high priority in the next phase of the public administration reform program. For example, the concepts of transparency and accountability in public management need to be better understood by both managers and staff of ministries, municipalities and agencies.

6

See Training Needs Assessment Report, prepared for the Ministry of Public Services.

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

3.

Public Administration Strategy

An important objective of the public administration reform program will be to consolidate the capacity of the PISG to execute those functions already transferred from UNMIK, as well as to plan for the absorption of the remaining powers and responsibilities. As more-and-more responsibilities are transferred, PISG institutions should be expected to become more authoritative and accountable for producing the results desired by citizens in Kosovo. Various needs, priorities, issues, strengths and weaknesses of the current administration at the central and local levels are discussed in previous sections of this Discussion Paper. Multi-dimensional capacities are seen to exist within the present administration, and immediate reform efforts would build upon these strengths. While more in-depth capacity assessments must be carried out at all levels, namely, the enabling environment, the organization, and the human resources, the findings of this study have identified the following strengths of the current system: - An existing, although not complete, constitutional, legal and regulatory framework for the public administration and the civil service (see section on the legal and policy framework); - An institutional framework consisting of established central line ministries and departments, as well as local administrative structures at the municipal level; - An existing partial base of operating policies, procedures and standards; - A political and executive management structure in the form of the PISG and the Cabinet, with evolving executive decision-making capacities. The capacity challenges, however, still outweigh the strengths and are seen to include the following (not in order of priority): Missing, and sometimes conflicting, laws, policies, procedures and regulations, some of which will need to be built from scratch, while others may be developed from what exists; An inadequate system of monitoring, evaluation and oversight of the administration and the civil service as a whole; A weak system of central/executive decision-making, strategic management and economic management, policy analysis, and overall program coordination; A lack of a vision and mandate for the ‘new’ or ‘reformed’ system that could otherwise set the direction, tone and tenor for capacity building efforts in the economic, fiscal and public administration spheres; A lack of an effective coordination mechanism to spearhead the public administration reform efforts, although structures are currently being put in place, such as the Committee of Permanent Secretaries and the SBPA; The transfer of responsibilities from international experts to ministries has proceeded somewhat unevenly; The division of responsibilities between the center and municipalities within the PISG remains insufficiently defined; High level of politicization of public institutions; There is uneven level of consultation and involvement of stakeholders in planning and decisionmaking processes. As a result, mechanisms that exist to promote the participation of minority communities, for example, are not always used effectively; Weak incentive scheme to attract fair share of the best talent to serve in the civil service due to widespread salary disparities with international staff and the private sector; Lack of standardization in organizational structures, job descriptions, recruitment and training in municipalities and within ministries; Decrepit office equipment, supplies, communications facilities, etc; Damaged or missing archives, records, document, filing systems and the like (the documented institutional memory of the administration);

-

-

-

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, July 2003

Perhaps most significantly, the absorptive capacity of the administration will remain quite weak for some time to come, leaving virtually all dimensions of capacity within the administration in need of strengthening. An important objective of the public administration strategy is to re-articulate the overall direction of the reform program. The current program consists of numerous initiatives led by UNMIK, development partners and the PISG. It is timely to bring these wide-ranging activities within a common and prioritized strategic framework that could lay the foundation for the formulation of a comprehensive public administration reform program. A common strategy would also greatly facilitate the work of the Steering Board for Public Administration (SBPA) and the proposed Technical Secretariat. The adopted public administration strategy could be further delineated into a concrete implementation plan, specifying the short, medium, and long-term priorities, including responsibilities for the delivery of specific outputs, as well as the costing of the program. It would subsequently be the role of the SBPA to negotiate with different development partners, the responsibility for the implementation of the various components and/or activities of the program. Based on the situational analysis presented in this report and to facilitate discussion at the stakeholders’ workshop, the following components and sub-components could become part of the public administration strategy and program:
q

Legal, Policy & Regulatory Reform
§ § § § § § § Civil service management Local government Accountability, transparency & integrity Vision statement Salaries & incentives Career development Civil society Cabinet decision-making Policy coordination Aid coordination & management Central-municipality relations Monitoring & evaluation

q

Civil Service Management
§ § § § § § § Functional analysis Systems & procedures Performance management Service charters, client surveys & report cards E-government strategy Rules for executive business of government Codes of conduct

q

Executive & Central Management
§ § § § §

q

Human Resources Development
§ § §

§
q § §

Manpower planning & human resources development Staff training Human resources management units Kosovo Institute of Public Administration Steering Board on Public Administration Communications & information

q

Executive Oversight
§ § § § §

Auditor General Ombudsman Office Oversight Board of Kosovo Independent Commission Against Corruption Kosovo Assembly

Management & Coordination

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Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, June 2003

Public Administration Strategy
Component/subcomponent Proposed Key Results Areas (KRAs)

1. Legal, Policy & Regulatory Reform
1.1 Legal Development
1.1.1 Civil Service Management: Review of the overall legal, policy and regulatory framework governing civil se rvice management in Kosovo in order to identify specific capacity gaps. For example, the review could inter alia consider the costs and benefits of opting for the development of a more detailed public service act; examine the benefits of differentiating th e core civil service from the wider staff in the public sector; develop recommendations to ensure that all categories of staff in the public service are subject to a coherent personnel management regime, as it relates to recruitment and selection procedures. The main output of this exercise could be a revised legal and policy framework for civil service management in Kosovo. The Ministry of Public Services could take the lead for this subcomponent, in close cooperation with a special committee of the Kosovo Assembly. 1.1.2 Local Government: The delineation of powers and responsibilities between the central government, municipalities, the Kosovo Trust Agency and public utilities in both public management and service delivery needs to be carefully reviewed. This exercise could involve a comprehensive analysis of the current legal and regulatory framework governing municipalities, taking into account the findings and recommendations of the Council of Europe Decentralization Mission. As this exercise would involve many ministries and actors, it could be led by the Office of the Prime Minister in close cooperation with the Ministry of Public Services, a special committee of the Kosovo Assembly, and the Association of Municipalities. 1.1.3 Accountability, Transparency & Integrity: Strengthening of the legal infrastructure as it relates to the promotion of accountability, transparency and integrity in governance and public administration is of great importance for the long-term development of Kosovo. An efficient civil service in Kosovo also needs an effective legal, policy and regulatory framework promoting high standards of integrity and transparency of civil servants. The Ministry of Law and Parliamentary Affairs could take the lead in examining the strengths and weaknesses of the existing laws and regulations in this area, in close cooperation with a special committee of the Kosovo Assembly. The main outputs of this sub-component could be either revisions of existing laws or the introduction of new legal instruments to promote enhanced transparency, accountability and integrity in governance in Kosovo. 1.1.4 Civil Society: An important priority for law-making in Kosovo is the formulation and adoption of legislation to promote the development of a vibrant civil society in Kosovo, capable of contributing effectively to both public policy-making and the delivery of public services. The weak state of civil society in Kosovo is a constraining factor for socio-economic development. The Office of the Prime Minister could assume the lead role for this sub-component, in close cooperation with a special committee of the Kosovo Assembly.

29

Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, June 2003 1.2.1 Vision Statement: It is important for the long-term capacity development of the public sector to articulate clearly the overall vision that should guide initiatives by individual actors. This could include the proper demarcation of roles and responsibilities of different players within the governance and public administration system, including the private sector and civil society. A Vision Statement could pronounce the long-term vision for the public sector, including what services and benefits citizens should expect from the reforms. The Steering Board for Public Administration composed of senior cabinet members and UNMIK representatives has been charged with leading this effort in close consultation with relevant stakeholders. 1.2.2 Career Development: It is proposed that the PISG study carefully the pros and cons of adapting a career-based system for the civil service, or possibly a combination of a post and career-based system. This is particularly important considering the small pool of highly educated candidates in the labor market in Kosovo. In countries that have opted for the creation of a Senior Civil Service and a post-based system for staff at the lower echelon, the labor market has generally been characterized by a large pool of available candidates for selection and recruitment into the civil service. It is proposed that the Ministry of Public Services, in close cooperation with the Ministry of Finance and Economy, could lead this sub-component. 1.2.3 Salaries and Incentives: The ongoing pay & grade review exercise could be utilized to formulate a salary and incentives policy for the civil service, within the existing budget constraint. The study could lead to the development of recommendations for the establishment of a new pay and incentives scheme for employees in the public sector. An important objective of this exercise could also be to simplify the salary system by reducing the number of pay grades for civil servants. The costs and benefits of creating a Public Service Remuneration Board including models for setting up such an institution could also be studied. The Ministry of Finance and Economy could lead this sub-component.

1.2 Policy Development

30

Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, June 2003

Public Administration Strategy
Component/subcomponent Proposed Key Results Areas (KRAs)

2.
2.1 Cabinet Decision Making 2.2 Policy Coordination

Executive and Central Management
2.1.1 Cabinet Secretariat: This could include the strengthening of the capacity of the Cabinet Secretariat to assume a broader role in supporting the Prime Minister and the Cabinet in fostering collective decision-making, including special measures to build cabinet solidarity; decision-making by consensus; leadership training of cabinet ministers; management of cabinet documentation; role of cabinet members vis -à-vis the Permanent Secretary of a ministry; linkages to the legislative agenda; policy and implementation coordination across ministries through mechanisms such as sub-committees of the cabinet; sector working groups to be the key interface with UNMIK. The Office of the Prime Minister could lead this sub-component, in close consultation with cabinet members. 2.2.1 Establishing the Office of Strategic Policy and Planning (OSPP): This office could be charged with the formulation, coordination and evaluation of PISG policies. The OSPP could be located within the Office of the Prime Minister and divided into three main units, namely, Program Implementation Advisory Unit (PIAU), Strategic Planning Unit (SPU), and Financial Strategy Unit (FSU). The PIAU could track the implementation of the PISG’s program; identify short-term challenges; provide tactical recommendations; and provide building blocks for an update or a new program. The role of the SPU could be to provide the PISG with impeccable evidence -based issue and policy analysis of challenges affecting the long-term prospects of Kosovo. The FSU could provide strategic financial analysis of the overall policy planning process. The FSU would also become a depository on activities of development partners in Kosovo. The Office of the Prime Minister could exercise leadership for this sub-component, in close cooperation with members of the cabinet. 2.3.1 Aid Coordination & Management: It is envisaged that the proposed Financial Strategy Unit could become the main depository of information on support by donors to Kosovo’s development, including the public administration strategy. Through systematic information gathering, the FSU could provide important support to the SBPA and the Technical Secretariat for the implementation of reforms in the public sector. The capacity of both the Secretariat and the FSU to exercise these responsibilities could be strengthened. The cabinet would decide whether the Office of the Prime Minister or the Ministry of Finance and Economy should take the lead role in aid coordination and management in Kosovo. 2.4.1 Establishing a Central-Municipal Liaison Unit: Considering the unique governance arrangements in Kosovo, it is important to have in place effective institutional mechanisms to foster good central -municipal relations. A Central-Municipal Liaison Unit could be attached to either the Ministry of Public Services, the Office of the Prime Minister or the Cabinet Secretariat. Its role could be to facilitate information sharing as well as high-level decision-making on matters of mutual concern. This forum could discuss important legislative issues governing central -municipal relations, with the aim of further clarifying the roles and responsibilities of both tiers of self-government in service delivery and policy-making. In addition, it could also act as a forum to discuss forward-looking policy issues of significance for the long-term development of municipal-central relations. The Ministry of Public Services could assume the lead role for this subcomponent. 2.5.1 Monitoring and Evaluation System: Both PISG and UNMIK need to have in place an effective monitoring system to assess progress in the realization of the benchmarks. As the PISG develops its institutional capacity and clear goals and output targets are set, monitoring and evaluation assumes ever-greater role. This sub-component could aim to strengthen capacities for monitoring and evaluation for the whole of government, including the public administration program. The M & E Unit could be located in the Cabinet Secretariat of the Office of the Prime Minister. It is suggested that the Office of the Prime Minister could assume a lead role in implementing this sub-component.

2.3 Aid Coordination & Management 2.4 Central-Municipal Relations

2.5 Monitoring & Evaluation

31

Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, June 2003

Public Administration Strategy
Component/subcomponent Proposed Key Results Areas (KRAs)

3. Executive Oversight
3.1 Auditor General Office 3.2 Ombudsman Office
3.1.1 Office of the Auditor General: Plays a key role in ensuring probity of financial resources management in the public sector through annual auditing and special investigations, such as value -for-money studies. Capacity building support could be provided to strengthen its oversight role of the Executive. The capacity of the OAG could also be enhanced to undertake value -for-money studies in the public sector, particularly of public utilities. In addition, this sub-component could include major strengthening of the auditing function in OAG. The OAG could assume leadership for this sub-component under the guidance of the Kosovo Assembly. 3.2.1 Office of the Ombudsman: This sub-component could involve major capacity building of the Secretariat of this watchdog agency, including the strengthening of its investigative capabilities. The objective could be to promote greater respect of civil servants for the rights of citizens in public administration. By addressing issues of mal-administration in an authoritative manner, the Office of the Ombudsman could play a key role in fostering enhanced service -orientation in the public sector. Regular reporting of this office to the Kosovo Assembly could help to further inculcate a respect for the rule of law and the rights of citizens. The Office of the Ombudsman could lead this sub-component in close cooperation with the Kosovo Assembly.

3.3 Oversight Board of Kosovo 3.4 Independent Commission Against Corruption 3.5 Kosovo Assembly

3.3.1

Oversight Board of Kosovo: Support could be provided to the Oversight Board of Kosovo to strengthen its role as a watchdog of recruitment and selection processes in the civil service. This sub-component could include the creation of an effective Secretariat to service the Board. The Ministry of Finance and Economy could assume leadership role for this sub-component. Independent Commission Against Corruption: It is proposed to establish an independent commission against corruption as an oversight body of the Executive. The legal and policy framework guiding the establishment and operation of this body could be based on the best international practice in this area to ensure its full independence, while being accountable to the Kosovo Assembly on behalf of the public. It is suggested that the Office of the Prime Minister could lead this sub-component in close cooperation with the Kosovo Assembly.

3.4.1

3.5.1

Committees of Parliament: Por tfolio committees play a key role in financial and programmatic oversight of the Executive. Capacity building support could b e provided to portfolio and standing committees, including the Public Accounts Committee, to enable them to pursue more active oversight of the Executive. This could include both skill building of members as well as institutional strengthening support. The Kosovo Assembly could lead this sub-component.

32

Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, June 2003

Public Administration Strategy
Component/subcomponent Proposed Key Results Areas (KRAs)

4. Civil Service Management
4.1 Functional Analysis 4.2 Systems & Procedures 4.3 Performance Management 4.4 Service Charters, Client Surveys & Report Cards
4.1.1 Organizational Structures: Support could be provided to the Ministry of Public Services to review organizational structures of ministries and public utilities, and to undertake functional analysis, as required. This sub-component could include the preparation of a specific law or Administrative Instruction that would standardize the structures of ministries. The MPS could set up a committee of experts to provide technical a dvice with respect to compliance by different ministries and public utilities in this area. Capacity assessments would also be undertaken of selected institutions at both central and municipal levels. Capacity of the DCSA to undertake functional reviews of institutions in the public sector could be enhanced. The Ministry of Public Services could lead this subcomponent. 4.2.1 Systems and Procedures: Capacity building assistance could be provided to the Ministry of Public Services to undertake a thorough review of the quality and relevance of HRM, administrative and financial systems and procedures used at both central and municipality levels in the civil service. This sub-component could also include the development of handbooks and manuals for use by ministries and municipalities, as well as guidelines for office-related procedures. The capacity of central departments charged with the development of administrative, financial and personnel standards, rules, procedures and capacity building material could also be enhanced. Extensive capacity building of staff in central departments responsible for the development of standards for OHM, administrative and financial management could be part of this sub-component, which could be led by the Ministry of Public Services. 4.3.1 Performance Management: Support could be provided to adopt and implement a performance management and appraisal system in the civil service at both central and local levels. All staff in the civil service would have to be subject to annual performance planning and appraisal to foster a culture of results and service-orientation. The Ministry of Public Services could lead this sub-component. 4.4.1 Service Charters, Client Surveys & Report Cards: Support could be provided to service delivery organizations to develop service charters where quality and quantity targets could be defined and published for easy reference by the public, as well as oversight bodies. This sub-component could also include the development of a common service strategy for the PISG as the guiding vision for ministries, agencies, public utilities and other relevant organizations. In addition, the PISG could create c entral feedback mechanism collecting information from the public on services delivered by public institutions to enhance voice and participation of citizens in public management. The Ministry of Public Services could lead this sub-component. The Ministry of Public Services could also be assisted in undertaking periodic client surveys to assess the satisfaction of citizens with service delivery of key institutions, including public utilities. Public organizations could similarly be encouraged to institute r port card systems where clients are provided with an e opportunity to submit feedback on services rendered. This sub-component could be piloted on selected public utilities. The Ministry of Public Services could lead this sub-component. 4.5.1 E-government Strategy: The PISG could formulate an e-government strategy as an integral part of the overall IT communications plan for Kosovo. This could include the initiation of pilot schemes to demonstrate the value of greater use of IT in service delivery and civil service management. A working group of experts could be formed to develop a short, medium and long-term strategy and action plan for the application of IT in the PISG at both central and municipal levels. The Ministry of Finance and Economy could lead this sub-component.

4.5 E-Government Strategy

33

Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, June 2003

4.6 Rules for Executive Business of Government 4.7 Codes of Conduct

4.6.1 Rules for Executive Business of Government: Common rules for policy -making across ministries are essential for the effective functioning of the PISG. Through this process, a set of rules and procedures could be formulated and institutionalized for policy-making in ministries in Kosovo. The Cabinet Secretariat of the Office Prime Minister could be charged with the implementation of this sub-component.

4.7.1

Codes of Conduct for Civil Servants: There is need to strengthen codes of conduct for civil servants as part of ongoing effort to enhance transparency, accountability and integrity in governance. Different sectors of the public service could formulate a code of conduct for members. The Ministry of Public Services, in consultation with relevant stakeholders, could take the lead role in formulating a revised overall code of conduct for civil servants at both central and local levels.

34

Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, June 2003

Public Administration Strategy
Component/subcomponent Proposed Key Results Areas (KRAs)

5. Human Resources Development
5.1 Human Resources Development 5.2 Staff Training 5.3 Human Resources Management Units 5.4 Kosovo Institute for Public Administration
5.1.1 Manpower Planning & Human Resources Development: One of the highest priorities for the PISG is to strengthen the capacity of the human capital in the public service. This sub-component could include the preparation of a manpower planning and human resources development strategy that could guide capacity building efforts by the PISG and various development partners. The Ministry of Public Services could lead this sub-component, in close cooperation with other ministries and other relevant stakeholders. 5.2.1 Training of Staff: As an integral part of the human resources development strategy, the PISG could formulate a more specific plan for capacity building priorities of staff through training. This sub-component could build on the training needs assessment and related documents prepared by the working g roup on training and led by the Ministry of Public Services. The Ministry of Public Services could take the lead in developing the training strategy in close consultation with all relevant stakeholders. 5.3.1 Human Resources Management Units: This sub-component could aim to undertake further strengthening of human resources management units in ministries and municipalities. These units play a critical role in effective civil service management in Kosovo. This would also include the strengthening of the capacity of the DCSA to provide effective central direction and policy-making in the civil service. The Ministry of Public Services could take the lead for this sub-component. 5.4.1 Kosovo Institute for Public Administration: It is envisaged that this institute will play an essential role in the planning, coordination and delivery of training of civil servants in Kosovo. The capacity of this institute to play its mandated role would be strengthened through support at three main levels, namely (a) the legal and policy (enabling environment), (b) institutional and (c) human resources. The Ministry of Public Services could lead this sub-component.

35

Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, June 2003

Public Administration Strategy
Component/subcomponent Proposed Key Results Areas (KRAs)

6. Management & Coordination
6.1 Steering Board for Public Administration 6.2 Communications & Information
6.1.1 Steering Board for Public Administration: This board, composed of both cabinet members and UNMIK representatives would play a key role in guiding, coordinating and facilitating the overall public administration program. The SBPA would have the powers to establish special working groups to undertake indepth technical analysis and preparation of policy recommendations to facilitate decision-making. The Board would be supported by a Technical Secretariat. This sub-component would support the establishment and operational costs of the Secretariat. SBPA would also take the lead the process of formula ting a Vision Statement for the public sector. The SBPA would lead this sub-component. 6.2.1 Advocacy and Outreach: Improved communications are required to expand the awareness and understanding of citizens of the many changes being introduced through the new public administration strategy. This sub-component could also provide support to strengthen efforts to improve horizontal and vertical communications within the PISG, and between the government and the broader Kosovo society. Reaching out to citizens will be essential for the success of the public administration reform program. The Secretariat would prepare a draft communications and outreach strategy for review and adoption by the SBPA. The Secretariat would assume the lead responsibility for this sub-component under the guidance of the SBPA.

36

Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, June 2003

5. Management of the Reform Process
It is proposed that the Steering Board for Public Administration (SBPA) assume the main responsibility for executive direction and guidance of the design and implementation of the public administration strategy. This high-level board is composed of cabinet members and UNMIK representatives. Day-to-day coordination of the implementation of the reform strategy could be provided by a full-time Secretariat, headed by a civil servant at the Permanent Secretary level. The Secretariat could provide technical and administrative support to the three proposed working groups and the various sub-groups. The Secretariat could also take the lead in formulating the implementation plan based on the adopted strategy. The Committee of Permanent Secretaries could provide expert advice to the SBPA in the design and implementation of the strategy and program. Three working groups dealing with policies, institutional development and human resources development respectively could bear the primary responsibility for in-depth technical analysis and the formulation of specific proposals for review and decision-making by the SBPA. The working groups and the sub-groups could be composed of representatives of both central and municipal governments and UNMIK to foster policy coherence, coordination and ownership. Prominent experts in the respective fields could lead the three working groups. Each group could form subgroups, as required. Based on the proposed priority components of the public administration strategy, some of the issues that could be dealt with by the respective working groups are listed here below.
Steering Board for Public Administration

Technical Secretariat

Permanent Secretaries

Policy Group

Institutional Development Group

Human Resources Group

SubGroup

SubGroup

SubGroup
w w w w

SubGroup

SubGroup

SubGroup

w w w w w w w w

Vision Statement Legal, policy & regulatory frameworks Monitoring of benchmarks Salaries & incentives Accountability structures Socio-economy Relations with key stakeholders Internal & external coordination

w w w w

E-government strategy Organizational structures Functional reviews Human resources, administrative, financial systems Performance management systems Service charters & standards Client surveys & report cards Codes of conduct

w

w w w

Manpower planning and human resources development strategy Staff training Human resources management units KIPA

Policy Team

Institutional Development Team

Human Resources Team

37

Kosovo Provisional Institutions of Self-Government & UNMIK Public Administration Strategy First draft, June 2003

6.

Proposed Next Steps

To facilitate discussions at the stakeholders’ workshop, the following next steps are suggested for the continued strengthening of the public administration system in Kosovo.

a) Public Administration Strategy
The situational analysis and the draft public administration strategy presented in this document have been developed to facilitate discussion and debate that could lead to consensus among stakeholders in Kosovo on priority areas for reform. Based on the feedback received from policy makers and stakeholders, the draft public administration strategy would be revised. It is envisaged that UNMIK, in close cooperation with the PISG, will also organize stakeholders’ events to promote discussion and consensus on the priority areas for public administration-related reforms in Kosovo. Upon the adoption of the strategy, an implementation plan could be developed to define in some detail the short, medium and long-term priorities, roles and responsibilities, as well as the financial implications.

b) Lessons Learned Analysis
While much progress has already been achieved by UNMIK (civil administration) in setting up the public administration infrastructure and systems in Kosovo, no comprehensive review and/or lessons learnt analysis has been performed of this unique capacity development process. Various staff members and consultants have codified lessons learned from selected aspects of the reform process, but no overall review has so far been undertaken of the whole program. Taking stock of lessons learnt is particularly important at this juncture, as the PISG and UNMIK begin to chart a new course for the next set of initiatives to strengthen the public administration system in Kosovo. The findings and recommendations of the lessons learnt analysis could also enable various organizations and actors to review and update their own strategies and capacity development programs. Lessons learnt analysis might take the form of an independent and objective evaluation, viewing the transitional civil administration as the first phase of a longer-term public administration program. It may take the form of a mid-term technical review, adapting review methodologies that are common to most donor-funded projects and programs. It may also take the form of an in-depth capacity assessment that could become the first major activity in the development of a public administration reform program. In addition, it may take the form of a joint UNMIK-donor sector review. The purpose of such a review would be to extract lessons learned, ‘best practices’, successes and areas in need of improvement. The review could particularly identify the strengths and weaknesses of the current administration and suggest specific priorities and needs for capacity development for the remainder of the transitional administration. Such a review could also guide policy and planning for a successor UN mission.

c) Public Administration Reform Program
Based on the above, an immediate objective of UNMIK (civil administration) and the PISG could be to prepare a general progr am that would contain options for continued institutionalization and capacity development of the public administration system. The program could focus on high priority components, such as those identified in this draft framework document (e.g. legal, policy & regulatory reform, executive and central management, executive oversight, civil service management, human resources development and management & coordination). A public administration reform program would clearly not preclude policy decisions of the new government on the structuring or the role of the administration. The program would rather support the executive decision-making processes in respect of priorities, allocation of resources, and internal-external coordination of capacity development initiatives across the administration. The program would be a dynamic strategic management tool of the government, maintaining and updating priorities, fostering cross-administration innovation and learning, reducing potential for duplication, promoting some degree of integration and consistency, and contributing to the achievement of results. A detailed action plan would need to be prepared for developing such a program, involving a small project team, composed of representatives of key ministries and development partners.

d) Management and Coordination
To provide enhanced executive direction, steering and guidance to the reform program in Kosovo during the transition period, it is suggested that the Steering Board for Public Administration (SBPA) be charged with deciding on all relevant matters pertaining to the internal operation and structuring of the public administration system. The SBPA, which is composed of both UNMIK and PISG representatives, could function as the senior executive body with respect to the formulation and implementation of the public administration reform program, and could ensure coordination across departments and agencies. A secretariat could be created to provide day-to-day technical and coordination support to the SBPA. It is also proposed that three working groups be established to analyze priorities and prepare specific policy proposals for decision-making by the SBPA.

38

List of Recommendations UNDESA Report July 2003

7.

List of Recommendations
Enabling Environment
Proposed Module
Legal/Policy Development

Category:

Recommendations
1. To strengthen the legal, policy and regulatory framework governing civil service management and service delivery at both central and local levels To improve the legal and policy framework governing public utilities To enhance the legal and policy framework promoting transparency, accountability and integrity in public sector management To strengthen the legal framework promoting participation of civil society in policy making, service delivery and monitoring To further strengthen the legal and policy regime governing the media sector To adopt the practice of issuing White and Green Papers in advance of new legislative proposals To put in place an effective oversight framework to monitor and evaluate progress in creating sustainable public administrationrelated institutions and systems (in lieu of the benchmarks) To strengthen in house capacity for monitoring and evaluation To make the Oversight Board of Kosovo fully operational

Sub-Module
Civil Service Management

Priority
High

Prime Mover
Ministry of Public Services

Key Collaborating Partners
Special Committee of the Kosovo Assembly, Office of the Prime Minister, Ministry of Finance and Economy, Association of Municipalities, UNMIK, others Special Committee of the Kosovo Assembly, Ministry of Finance and Economy, Association of Municipalities, UNMIK, others Special Committee of the Kosovo Assembly, Office of the Prime Minister, Ministry of Public Services, UNMIK, others Special Committee of the Kosovo Assembly, UNMIK, relevant civil society organizations, others Special Committee of the Kosovo Assembly, UNMIK, relevant media organizations, others Kosovo Assembly, Ministry of Finance and Economy, UNMIK, others Office of the Prime Minister, Kosovo Assembly, Ministry of Public Services, Ministry of Finance and Economy, others Office of the Prime Minister, Kosovo Assembly, Ministry of Public Services, Ministry of Finance and Economy, others UNMIK, Ministry of Public Services, Kosovo Assembly, Office of the Prime Minister, others OAG, Ombudsman Office, UNMIK, Ministry of Finance and Economy, Ministry of Public Services, Office of the Prime Minister, others

2.

Legal/Policy Development

Public Utilities

High

Ministry of Public Services

3.

Legal/Policy Development

Accountability, Transparency and Integrity

High

Ministry of Economy

Finance

and

4.

Legal/Policy Development

Civil Society

Medium

Office of the Prime Minister

5. 6.

Legal/Policy Development Legal/Policy Development

Media Policy Instruments

Medium Medium

Ministry of Information Office of the Prime Minister

7.

Executive Accountability

Oversight

High

UNMIK (Civil Administration Pillar)

8.

Executive Accountability

Oversight

High

UNMIK (Civil Administration)

9.

Executive Accountability Executive Accountability

Oversight Oversight

High High

Ministry of Economy

Finance

and

10. To significantly strengthen the institutional capacities of the Office of Auditor General and the Office of Ombudsman to exercise their

Kosovo Assembly

39

List of Recommendations UNDESA Report July 2003

Recommendations
constitutional and legal mandates 11. To further strengthen the institutional machinery for executive accountability by creating new oversight bodies, such as an Independent Commission Against Corruption and Independent Office of the Contractor General 12. To build-up capacity within the Office of the Auditor General to undertake value -for-money studies in the public sector 13. To significantly improve the capacity of portfolio committees in the Kosovo Assembly to provide oversight of the PISG 14. To strengthen the capacity of portfolio committees in the Kosovo Assembly to provide oversight of secondary legislation promulgated by PISG 15. To intensify training of reporters in investigative journalism 16. To further strengthen consultative processes involving civil society, labor unions and the private sector in economic and development policy making 17. To continue ongoing efforts to eliminate parallel administrative structures at central and municipal levels in Kosovo 18. To ensure equitable representation of all ethnic communities in public administration and governing institutions 19. To develop a Vision Statement for the public sector 20. To establish a full-time Technical Secretariat to provide coordination and support to the overall public administration reform process 21. To establish working groups of the SBPA to provide in-depth analysis and policy options for informed decision making

Proposed Module
Executive Accountability

Sub-Module
Oversight

Priority
Medium

Prime Mover
Kosovo Assembly

Key Collaborating Partners
Office of the Prime Minister, Ministry of Finance and Economy, OAG, UNMIK, others

Executive Accountability

Oversight

Medium

Office of the Auditor General

Kosovo Assembly, Ministry of Finance and Economy, UNMIK, others Office of the Prime Minister, Ministry of Finance and Economy, UNMIK, others Office of the Prime Minister, Ministry of Finance and Economy, UNMIK, others

Executive Accountability

Oversight

High

Kosovo Assembly

Executive Accountability

Oversight

Medium

Kosovo Assembly

Executive Accountability Executive Accountability

Oversight Oversight

Medium Medium

Ministry of Information Office of the Prime Minister

UNMIK, relevant media organizations, others Relevant civil society and private sector bodies , UNMIK, others

Executive Accountability

Community Relations

High

UNMIK

Executive Accountability

Community Relations

High

Office of the Prime Minister

Executive Accountability Executive Accountability

Management Coordination Management Coordination Management Coordination

and and

High High

Steering Board for Public Administration Steering Board for Public Administration Steering Board for Public Administration

Kosovo Assembly, Office of the Prime Minister, Ministry of Public Services, Ministry of Finance and Economy, others Ministry of Public Services, Ministry of Finance and Economy, Oversight Board of Kosovo, UNMIK, Association of Municipalities, others Office of the Prime Minister, Ministry of Public Services, Ministry of Finance and Economy, UNMIK, others Office of the Prime Minister, Ministry of Public Services, Ministry of Finance and Economy, UNMIK, others Office of the Prime Minister, Ministry of Public Services, Ministry of Finance and Economy, UNMIK, others

Executive Accountability

and

High

40

List of Recommendations UNDESA Report July 2003

Recommendations
22. To formulate a comprehensive and prioritized reform program upon the adoption of the public administration strategy 23. To develop an outreach strategy to expand awareness and understanding among citizens of the public administration reform strategy and program

Proposed Module
Executive Accountability

Sub-Module
Management Coordination Management Coordination and

Priority
High

Prime Mover
Steering Board for Public Administration Steering Board for Public Administration and the Technical Secretariat

Key Collaborating Partners
Office of the Prime Minister, Ministry of Public Services, Ministry of Finance and Economy, UNMIK, others Office of the Prime Minister, Ministry of Public Services, Ministry of Finance and Economy, UNMIK, others

Executive Accountability

and

High

41

List of Recommendations UNDESA Report July 2003

Category:

Institution-building
Proposed Module
Civil Service Management

Recommendations
24. To strengthen the functioning of ministries by establishing Management Boards, composed of the Permanent Secretary and all the Directors of the respective ministry 25. To issue an Administrative Direction to regularize the structures of ministries 26. To provide technical and other support to ministries to undertake functional review and restructuring, as needed 27. To establish a sub-committee of the Institutional Development Group to certify that structures of ministries meet agreed standards 28. To establish a central -municipal liaison unit to further facilitate coordination and cooperation among these two levels of selfgovernment and across PISG departments 29. To undertake a feasibility study to consider the costs and benefits of privatizing some of the public utilities 30. To further strengthen the involvement of citizens in public decision making processes at the municipality level 31. To enhance the consultative capacities of policy units in ministries and municipal administrations 32. To improve policy making capacities of specialized regulatory bodies 33. To establish a complaint mechanism at the central level to allow citizens to raise concerns about the quality of service delivery 34. To examine whether there are specific areas of service delivery where the use of service agreements between ministries and executing agencies could improve cost-effectiveness and client

Sub-Module
Management

Priority
Medium

Prime Mover
Office of the Prime Minister

Key Collaborating Partners
Ministry of Public Services, Ministry of Finance and Economy, UNMIK, others

Civil Service Management Civil Service Management

Structures Structures

High High

Ministry of Public Services Ministry of Public Services

Office of the Prime Minister, Ministry of Finance and Economy, UNMIK, others Ministry of Finance and Economy, UNMIK, others SBPA, Office of the Prime Minister, Ministry of Finance and Economy, UNMIK, others Ministry of Public Services, Ministry of Finance and Economy, UNMIK, Association of Municipalities, others

Civil Service Management

Structures

High

Ministry of Public Services

Civil Service Management

Structures

High

Office of the Prime Minister

Civil Service Management

Structures

Medium

Ministry of Finance and Economy Association of Municipalities

Ministry of Public Services, Office of the Prime Minister, Association of Municipalities, UNMIK, others Ministry of Public Services, UNMIK, others Association of Municipalities, Ministry of Finance and Economy, UNMIK, others Ministry of Public Services, Office of the Prime Minster, UNMIK, others Ministry of Finance and Economy, Association of Municipalities, UNMIK, others Ministry of Public Services, UNMIK, others

Civil Service Management

Policy Making

High

Civil Service Management

Policy Making

High

Ministry of Public Services

Civil Service Management Civil Service Management

Policy Making Performance Management Performance Management

High High

Ministry of Finance and Economy Ministry of Public Services

Civil Service Management

Medium

Ministry of Finance and Economy

42

List of Recommendations UNDESA Report July 2003

Recommendations
35. satisfaction To undertake periodic organizational reviews of municipal administrations to promote greater efficiency and results-orientation in their work To make it mandatory for executing agencies and other institutions involved in service delivery, to undergo periodic organizational review and re-engineering To strengthen the use of performance management systems in the civil service at both central and municipal levels To pilot in selected sectors the development of service and quality standards, as well as the use of report cards, client surveys and published benchmarks To strengthen the existing Code of Conduct for civil servants at both central and municipal levels To significantly strengthen the collection of statistics in the public sector to enable better assessment of the effectiveness of policies and programs To strengthen the capacity of central departments responsible for the development of administrative, financial and human resources management systems, standards, rules, procedures and capacity building material To build up strong capacity in the PISG for monitoring, accounting and auditing

Proposed Module
Civil Service Management

Sub-Module
Performance Management

Priority
Medium

Prime Mover
Ministry of Public Services

Key Collaborating Partners
UNMIK, municipalities, Ministry of Finance and Economy, others

36.

Civil Service Management

Performance Management

Medium

Ministry of Public Services

Ministry of Finance and Economy, UNMIIK, Association of Municipalities, others Ministry of Finance and Economy, Association of Municipalities, UNMIK, others Ministry of Finance and Economy, Association of Municipalities, UNMIK, others Ministry of Finance and Economy, UNMIK, KIPA, others Ministry of Finance and Economy, Office of the Prime Minister, Association of Municipalities, others Ministry of Finance and Economy, UNMIK, others

37.

Civil Service Management

Performance Management Performance Management

High

Ministry of Public Services

38.

Civil Service Management

Medium

Ministry of Public Services

39. 40.

Civil Service Management Civil Service Management

Performance Management Performance Management

Medium High

Ministry of Public Services Ministry of Public Services

41.

Civil Services Management

Administrative Systems

High

Ministry of Public Services

42.

Civil Service Management

Administrative Systems

High

Ministry of Finance and Economy Ministry of Public Services

Ministry of Public Services, UNMIK, others Ministries , state and socially owned enterprises, municipalities, UNMIK, others Ministry of Finance and Economy, Association of Municipalities, UNMIK, others Ministry of Finance and Economy,

43. To make it mandatory for all sectors of the public service to apply the recently developed Personnel Procedures in recruitment processes 44. To complete the development of handbooks for administrative and financial management at both central and municipal levels 45. To establish an Office of Strategic

Civil Service Management

Administrative Systems

High

Civil Service Management

Administrative Systems

High

Ministry of Public Services

Executive

and

Central

Policy Coordination

High

Office of the Prime Minister

43

List of Recommendations UNDESA Report July 2003

Recommendations
Policy and Planning to coordinate policy making and long-term planning in the central government 46. To finalize and adopt the Rules for Executive Business of Government 47. To strengthen the capacity of the Cabinet Secretariat to assume a broader role in supporting the work of the Prime Minister and the Cabinet 48. To enhance capacities for aid coordination and management in PISG 49. To formulate a short, medium and long-term e -government strategy

Proposed Module
Management Executive and Management Executive and Management Central Central

Sub-Module

Priority

Prime Mover

Key Collaborating Partners
UNMIK, others

Policy Coordination Policy Coordination

High High

Office of the Prime Minister Office of the Prime Minister

Ministry of Finance and Economy, Ministry of Public Services, UNMIK, others SBPA, Ministry of Finance and Economy, UNMIK, others

Executive and Management Executive and Management

Central Central

Policy Coordination E-government

High Medium

Ministry of Finance Economy & Office of Prime Minister Ministry of Finance Economy & Office of Prime Minister

and the and the

UNMIK, others Ministry of Public Services, Association of Municipalities, others

44

List of Recommendations UNDESA Report July 2003

Category:

Human Resources
Proposed Module
Human Management Human Management Human Management Resources

Recommendations
50. To undertake a study to examine the feasibility of establishing a career system in the civil service at both central and municipal levels 51. To formulate a human resources development strategy for the public sector 52. To establish a Public Service Council to provide expert advise to senior policy makers in the area of human resources development and management 53. To prepare a manpower plan for the civil service for the next 5-10 years 54. To formulate a strategy to attract and retain a fair share of the best talent in the public service 55. To strengthen human resources management units in ministries and municipal administrations 56. To reform establishment control in the civil service at both central and municipal levels 57. To ensure that the ongoing pay and grade review result in an Administrative Instruction, defining the salary levels for each post based on work-related responsibilities 58. To develop concrete proposals to better link pay and career progression with a formal performance appraisal mechanism in order to promote greater wage de-compression in the public sector 59. To raise the salaries of senior officials in ministries that formulate policies and direct their implementation 60. To establish a Public Sector Remuneration Review Board to advise PISG on salary and wage policies for civil servants 61. To adopt an integrated human resources management system consisting of components dealing with (a) career development, (b)

Sub-Module
Policies

Priority
High

Prime Mover
Ministry of Finance and Economy Ministry of Public Services Office of the Prime Minister

Key Collaborating Partners
Ministry of Public Services, Office of the Prime Minister, Association of Municipalities, UNMIK, others Office of the Prime Minister, UNMIK, Association of Municipalities, others Ministry of Public Services, Ministry of Finance and Economy, Association of Municipalities, UNMIK, others Ministry of Finance and Economy, Office of the Prime Minister, UNMIK, others Ministry of Finance and Economy, Office of the Prime Minister, UNMIK, others Ministry of Finance and Economy, UNMIK, Association of Municipalities, others Ministry of Public Services, UNMIK, Association of Municipalities, others Ministry of Public Services, UNMIK, others

Resources Resources

Policies Policies

High Medium

Human Management Human Management Human Management Human Management Human Management

Resources Resources Resources Resources Resources

Planning Planning Personnel Management Personnel Management Personnel Management

Medium Medium High High High

Ministry of Public Services Ministry of Public Services Ministry of Public Services Ministry of Finance and Economy Ministry of Finance and Economy

Human Management

Resources

Personnel Management

High

Ministry of Finance and Economy

Ministry of Public Services, UNMIK, others

Human Management Human Management Human Management

Resources

Personnel Manageme nt

High

Ministry of Finance and Economy Ministry of Finance and Economy Ministry of Public Services

Ministry of Public Services, Office of the Prime Minister, UNMIK, others Ministry of Public Services, Office of the Prime Minister, UNMIK, others Ministry of Finance and Economy, Office of the Prime Minister, UNMIK, Association of Municipalities, others

Resources

Personnel Management

Medium

Resources

Personnel Management

High

45

List of Recommendations UNDESA Report July 2003

Recommendations
remuneration, (c) ethics and professionalism, (d) training, and (e) personnel information To finalize a human resources management handbook for use by personnel units in ministries and municipal administrations To undertake major capacity development of the Department of Civil Service Administration To make the Kosovo Institute for Public Administration fully operational To train ministers, permanent secretar ies, municipality presidents and CEOs in their respective roles in public administration To establish an academic and professional public administration program at the university level To require ministries to prepare an overall capacity development plan for civil servants To significantly strengthen the capacities of administrative support staff in the civil service To make management training and greater emphasis on ethics and efficient provision of services to the public as priority areas for capacity building in the civil service at both central and municipal levels To strengthen staff training at the municipal level in the following areas: personnel management, finance and accounting, budget preparation, procurement, inventory management, administrative support services, office management, report writing, and internal control and auditing

Proposed Module

Sub-Module

Priority

Prime Mover

Key Collaborating Partners

62.

Human Management Human Management Human Development Human Development Human Development Human Development Human Development Human Development

Resources

Personnel Management

High

Ministry of Public Services

Ministry of Finance and Economy, Association of Municipalities, UNMIK, others Ministry of Finance and Economy, UNMIK, others UNMIK, Ministry of Finance and Economy, others KIPA, Ministry of Finance and Economy, Office of the Prime Minister, Association of Municipalities, UNMIK, others KIPA, Ministry of Public Services, Ministry of Finance and Economy, UNMIK, others KIPA, Ministry of Finance and Economy, Office of the Prime Minister, UNMIK, others Ministry of Public Services, Ministry of Finance and Economy, UNMIK, others Ministry of Public Services, Ministry of Finance and Economy, Office of the Prime Minister

63. 64. 65.

Resources Resources Resources

Personnel Management Capacity Building Capacity Building

High High High

Ministry of Public Services Ministry of Public Services Ministry of Public Services

66. 67. 68. 69.

Resources Resources Resources Resources

Capacity Building Capacity Building Capacity Building Capacity Building

High Medium High High

Ministry of Education and Science Ministry of Public Services Kosovo Institute of Public Administration Kosovo Institute of Public Administration

70.

Human Development

Resources

Capacity Building

High

Kosovo Institute of Public Administration

Association of Municipalities, Ministry of Public Services, Ministry of Finance and Economy, UNMIK, others

46

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