Vera M. Budway-Strobach Donor Assistance for Supporting Local Democracy in South Eastern Europe Vera M. Budway-Strobach Program Manager PASOS vbudway@pasos.org October 15, 2005

Donors’ Assistance Database for 2003 for the Stability Pact Beneficiary Countries on Local Democracy Donor Assistance Mapping Exercise project on Local Democracy (DAME), undertaken by : Open Society Institute – Local Government and Public Service Reform Initiative (OSI-LGI), under the auspices and in close cooperation with the OECD / Development Assistance Co-operation (OECD/DAC) and the Stability Pact for South Eastern Europe (SP) http://lgi.osi.hu/projectsdb/ http://www.stabilitypact.org

Local Government Assistance in Perspective # of Projects % of all projects Average budget (USD) Total budget (USD) $000 Share in total aid expenditure Class A 2519 73.5% 1,018,000 2,564,129 75% Class B 491 14.3% 1,009,000 495,634 14.5% Class C 415 12.1% 865,000 358,976 10.5% Total 3,425 100.0% 998,000 3,418,739 100%

Recipients of Local Government Related Assistance Number of Projects % of All Projects Average budget, $000 Total budget, $000 Share in total aid expenditure Albania 99 23.9% 1,126 111,452 31.0% Bulgaria 34 8.2% 302 10,257 2.9% Bosnia 51 12.3% 319 16,246 4.5% Croatia 17 4.1% 2,745 46,666 13.0% Kosovo 8 1.9% 1,254 10,029 2.8% Moldova 22 5.3% 1,017 22,376 6.2% FYR Macedonia 33 8.0% 954 31,482 8.8% Countries of the former Yugoslavia 10 2.4% 617 6,175 1.7% Romania 65 15.7% 398 25,871 7.2% Serbia and Montenegro 76 18.3% 1,032 78,423 21.8% TOTAL 415 100.0% 865 358,976

Share in Total aid expenditure Donors Number of Projects % of all Projects Average Budget, $000 Total Budget, $000 Share in Total aid expenditure Austria 31 7.5 % 145 4,481 1.2% Belgium 24 5.8% 17 407 .1% Canada 4 1.0% 150 598 .2% Switzerland 16 3.9% 522 8,346 2.3% Germany 7.5% 2,625 81,381 22.7% Denmark 2 .5% 2,278 4,556 1.3% European Commission 10 2.4% 6,789 67,891 18.9% Spain 26 6.3% 391 10,174 2.8% Finland 6 1.4% 156 937 .3% France 211 2,105 .6%

Donors Number of Projects % of all Projects Average Budget, $000 Total Budget, $000 Share in total aid expenditure UK 6 1.4% 164 985 .3% Greece 84 20.2% 687 57,683 16.1% IDA 5 1.2% 8,500 42,500 11.8% Ireland 17 4.1% 40 681 .2% Italy 43 10.4% 467 20,067 5.6% Japan 205 3,483 1.0% The Netherlands 16 3.9% 491 7,853 2.2% Norway 35 8.4% 349 12,212 3.4% Sweden 7 1.7% 360 2,519 .7% USA 25 6.0% 1,205 30,117 Total 415 100.0% 865 358,976

Major Fields of Emphasis Recipient Largest field Second largest field (1) Albania Secondary education Primary education (2) Serbia & Montenegro Government administration Waste management/disposal (3) Croatia Water supply & sanitation - large systems Rural development (4) FYR Macedonia Social/welfare services Urban development and management (5) Romania Basic health care

Largest Receivers in Major Fields Field of assistance Largest receiver Second largest receiver (1) Water supply & sanitation large systems Croatia Albania (2) Government administration Serbia and Montenegro Romania (3) Social/welfare services FYR Macedonia (4) Secondary education Bulgaria (5) Primary education Kosovo

Key Conclusions The amount of specific local government aid in terms of the total amount of donor assistance to the Stability Pact countries is 10 - 15 % The biggest recipients of local government assistance are Albania and Serbia and Montenegro with 31% and 22% of all local govt. assistance,respectively Croatia, FYRMacedonia, Romania, and Moldova follow, all amounting to between 6% and 13% of all local government assistance 20 donor countries were active in funding local government assistance projects in the region (EC, IFIs counted as separate donors) There is a large concentration among donors: more than 2/3 of assistance funds were provided by Germany, Greece, EC, and IDA. More than 1/3 of local government related assistance supported water supply and sanitation projects. 1/5 of aid funds were spent on both education and government/civil society projects. The remaining 1/4 was spent on other fields such as health and population programs

Vera M. Budway-Strobach Donor Assistance for Supporting Local Democracy in South Eastern Europe Vera M. Budway-Strobach Program Manager PASOS vbudway@pasos.org October 15, 2005