COORDINATION OF FOREIGN ASSISTANCE IN THE REPUBLIC OF MACEDONIA Katerina Kus-Ivanova UNDP/Secretariat for European Affairs – R. Macedonia Saraevo, March 2006

Organisation / Organigram Foreign Assistance Co-ordination Government of the Republic of Macedonia, Prime Minister Deputy Prime-Minister in charge of European Integration National Aid Coordinator (Chair Person of the CMCFA) Committee of Ministers for Coordination of Foreign Assistance (CMCFA) - Deputy Prime-Minister in charge of Implementation of Framework Agreement - Minister of Foreign Affairs - Minister of Interior - Minister of Finance - Minister of Economy - Minister of Education and Science Ministry of Finance Central Donor Assistance Database of the Government of RoM - CDAD Organisation / Organigram Foreign Assistance Co-ordination Co-ordinative technical group of CMFCA - representatives of the Ministers Secretariat for European Affairs - Aid Co-ordination Unit - Technical co-ordination - Database - Communication - Co-ordination - Information - Strategies - Policies - Priorities - Programmes Competencies I II III IV V - Registering - Financial effects - VAT, customs - Control - implementation Ministries Other state institutions Local self-government Other aid beneficiaries / NGOs

Organisation / Organigram Foreign Assistance Co-ordination LEVEL I Government of the Republic of Macedonia, Prime Minister - Strategies - Policies - Priorities - Programmes I Competencies Government of the Republic of Macedonia, Prime Minister Deputy Prime-Minister in charge of European Integration National Aid Coordinator (Chair Person of the CMCFA) Committee of Ministers for Coordination of Foreign Assistance (CMCFA) - Deputy Prime-Minister in charge of Implementation of Framework Agreement - Minister of Foreign Affairs - Minister of Interior - Minister of Finance - Minister of Economy - Minister of Education and Science Ministry of Finance Central Donor Assistance Database of the Government of RoM - CDAD Organisation / Organigram Foreign Assistance Co-ordination Co-ordinative technical group of CMFCA - representatives of the Ministers Secretariat for European Affairs - Aid Co-ordination Unit - Technical co-ordination - Database - Communication - Co-ordination - Information - Strategies - Policies - Priorities - Programmes Competencies I II III IV V - Registering - Financial effects - VAT, customs - Control - implementation Ministries Other state institutions Local self-government Other aid beneficiaries / NGOs LEVEL II - Co-ordination - Information Competencies Deputy Prime-Minister in charge of European Integration National Aid Coordinator (Chair Person of the CMCFA) Committee of Ministers for Coordination of Foreign Assistance (CMCFA) - Deputy Prime-Minister in charge of Implementation of Framework Agreement - Minister of Foreign Affairs - Minister of Interior - Minister of Finance - Minister of Economy - Minister of Education and Science

Organisation / Organigram Foreign Assistance Co-ordination Government of the Republic of Macedonia, Prime Minister Deputy Prime-Minister in charge of European Integration National Aid Coordinator (Chair Person of the CMCFA) Committee of Ministers for Coordination of Foreign Assistance (CMCFA) - Deputy Prime-Minister in charge of Implementation of Framework Agreement - Minister of Foreign Affairs - Minister of Interior - Minister of Finance - Minister of Economy - Minister of Education and Science Ministry of Finance Central Donor Assistance Database of the Government of RoM - CDAD Organisation / Organigram Foreign Assistance Co-ordination Co-ordinative technical group of CMFCA - representatives of the Ministers Secretariat for European Affairs - Aid Co-ordination Unit - Technical co-ordination - Database - Communication - Co-ordination - Information - Strategies - Policies - Priorities - Programmes Competencies I II III IV V - Registering - Financial effects - VAT, customs - Control - implementation Ministries Other state institutions Local self-government Other aid beneficiaries / NGOs LEVEL III Competencies Co-ordinative technical group of CMFCA - representatives of the Ministers - Technical co-ordination - Database - Communication Secretariat for European Affairs - Aid Co-ordination Unit Central Donor Assistance Database of the Government of RoM - CDAD

Organisation / Organigram Foreign Assistance Co-ordination Government of the Republic of Macedonia, Prime Minister Deputy Prime-Minister in charge of European Integration National Aid Coordinator (Chair Person of the CMCFA) Committee of Ministers for Coordination of Foreign Assistance (CMCFA) - Deputy Prime-Minister in charge of Implementation of Framework Agreement - Minister of Foreign Affairs - Minister of Interior - Minister of Finance - Minister of Economy - Minister of Education and Science Ministry of Finance Central Donor Assistance Database of the Government of RoM - CDAD Organisation / Organigram Foreign Assistance Co-ordination Co-ordinative technical group of CMFCA - representatives of the Ministers Secretariat for European Affairs - Aid Co-ordination Unit - Technical co-ordination - Database - Communication - Co-ordination - Information - Strategies - Policies - Priorities - Programmes Competencies I II III IV V - Registering - Financial effects - VAT, customs - Control - implementation Ministries Other state institutions Local self-government Other aid beneficiaries / NGOs LEVEL I V Ministry of Finance - Registering - Financial effects - VAT, customs Competencies LEVEL V - implementation Competencies Ministries Other state institutions Local self-government Other aid beneficiaries / NGOs

Key Operational Bottlenecks Previously Identified Lack of overall national reform strategy; Lack of clearly defined and synchronised sector strategies and priorities; Insufficient information about priorities in ministries resulting with absence of a unified approach towards the donors; Communication constraints both horizontally and vertically, between the ministries; Human resources constraints. The previous resulting with donor independent actions.

UNDP Aid Coordination, phase 2 project Continuation of UNDP project which involved the provision of a hardware, software and technical assistance to the Secretariat for European Affairs for strengthening the national co-ordination system and creation of the Central Donor Assistance Database (CDAD). General Objective: The general objective of the project is to strengthen the coordinated planning among line ministries and between the Government and donors for more efficient coordination of donor assistance. Partnership: Secretariat for European Affairs in cooperation with 7 line ministries.

Project Outputs & Activities Improved content and usage of CDAD: CDAD fully redesigned according to the latest OECD and EU classifications; CDAD continuously up-dated; CDAD promoted and used by ministries and donors; Web-site redesigned and regularly up-dated.

Project Outputs & Activities Strengthened capacities for Monitoring, Analyses and Policy Support (MAPS): Team of national professionals fully dedicated to MAPS engaged within the SEA and 7 line ministries; Prepared documentation for donor coordination meetings; Along with CDAD updating, number of thematic reports prepared and distributed.

Project Outputs & Activities Strengthened coordination activities: Support for organisation of government and donor coordination meetings (organisation/ documentation prepared). Professionals trained and skilled for MAPS and coordination (trainings, seminars, workshops): Projects Cycle Management; Aid Coordination; Policy Formulation and Analyses.

Progress Achieved Multi annual planning: National Plan for Adoption of Acquis (NPAA) outlining the short- and medium-term priorities within the European Partnership presenting overall and comprehensive reform strategy; Fiscal strategy 2006-2008; Ministerial strategic plans. Annual Action Plans on European Partnership prepared on annual basis with monthly progress reports (monitoring); Strategic priorities of the Government determined on annual basis; Foreign Assistance Coordination process shifted from donor to Government driven.

Government Driven Coordination of Foreign Assistance Thematic/sectoral and central coordination meetings organised on monthly basis; Themes agreed with donors on semi-annual basis (January-June); Meetings organised by Secretariat for European Affairs (SEA) in cooperation with the relevant ministry and the most active donor in the field : Public Administration Reform and PIP 2006-2008 (General Secretariat of the GoRM and British Embassy/DFID; MoF and World Bank); Strategic priorities within the European Partnership/NPAA (SEA and EC Delegation); Strategic priorities of the Government for 2007 and Judiciary Reform (SEA; MoJ and USAID); Agricultural policy and Rural Development (MAFWE and Swedish Embassy / SIDA) Private investments promotion (Ministry of Economy and Dutch Embassy) Environment (MoEPP and UNDP)

Further Challenges Establishment of the decentralized system for management of EU funds; Ensuring complementarity between EU and bilateral donor funding; Ensuring complementarity of sectoral strategies with Strategic plans and NPAA; Further consideration of National Development Plan preparation (synchronized with EU requirements); Establishment of horizontal coordination mechanism to ensure efficiency of the multi-sectoral approach trough: Further strengthening of strategic planning (ministries & General Secretariat - SSPM); Further strengthening of administrative capacities for aid coordination; Further strengthening of the SEA coordinating role in cooperation with MoF.