1 -1- Financing Growth and Cohesion in the Enlarged EU Financing Growth and Cohesion in the Enlarged EU Marie C. Donnelly Head of Unit ESF Policy Co-ordination, Employment, Local Development The European Social Fund contribution

2 -2- Public sector performance (PSP) indicators (2000) Source: ECB· Working Paper No 242 · July 2003 Institutional and administrative capacity in the public sector is usually defined as the set of characteristics related to human capital and the performance and success of public policies. Paticular attention is given to the development of strategies and to the capability to maximise the efficiency of policy delivery. Typical aspects of capacity are the quality of civil servants, organisational characteristics, the diffusion of ICTs among organisational units, intergovernmental relations and the interaction between government and its social and economic environment Administrative Capacity

3 -3- Source: OECD Economic outlook, no. 73, June 2003 Public employment as a % of total labour force

4 -4- CountryPublic Share in 2002 (%) Position in 2002 Position in 1992 Position in 1982 Trend over Finland constant France constant Belgium constant Luxembourg constant United States constant Greece constant Japan constant Sweden decreasing UK decreasing Czech Rep n.a. decreasing Italy decreasing Austria decreasing Poland n.a. decreasing Ireland decreasing Netherlands decreasing Germany decreasing Denmark increasing Portugal increasing Spain increasing Public employment ranking

5 -5- Source: Eurostat New Cronos, OECD, Wirtschaftskammer Osterreich Total government spend as a % of GDP

6 -6- Source: Eurostat New Cronos Public expenditure, by category, % GDP

7 -7- Total taxes as a % of GDP Source: OECD Revenue statistics, Paris

8 -8- Source: ECB Working Paper No 242, July 2003 Public sector performance:

9 -9- Well-functioning institutions and public administrations are a pre- condition for the successful design and implementation of policies to promote socio-economic development and to contribute to growth and employment Efficiencies in public services lead to increased productivity in the economy e.g. through faster procedures, improved services, etc. Effective institutional and administrative capacity is the key to good governance - an essential element of the Lisbon Strategy Institutional and administrative capacity includes the ability of Member States and regions to contribute to the European Union's objectives and to fulfil the conditions and obligations arising from membership PHARE no longer available Rational for supporting Administrative Capacity Rational for supporting Administrative Capacity

The new ESF priority Administrative capacity –Supports reforms and modernisation –Supports Convergence Regions and Cohesion Member States –Should not be mistaken with Technical Assistance!!! – Special focus on building capacity to: develop and design policies and programmes deliver and implement policies, programmes and legislation

Examples of activities Mechanisms to improve good policy and programme design, monitoring, evaluation Legislation, policies and processes: Analysis; Development of strategies and action plans; Development of impact assessment capacities; Evaluation and monitoring of policies; Introduction of accountability systems, including administrative, political, judicial; Move from administrative accountability towards managerial accountability systems Introducion of tools to assess the performance of administrations and public services Structural reform of policy processes Modernisation of structures and processes co-ordination systems; The (re-)definition of the role and position of ministries, and internal units Developing of standards of administrative conduct, their dissemination and implementation; Supporting intra-departmental co-ordination (including strengthening managerial skills) and inter-connections between central, regional and local levels including application of modern communication and information technologies; Reinforcing dialogue and co-operation with social partners and non governmental organisations and citizens; The modernisation or establishment of ombudsman institutions to enhance trust between citizens and administrations. Capacity building in the delivery of relevant policies and programmes Roll out of the implementation and delivery of services Development of implementation tools and methodologies (including operational manuals, code of conducts etc); Establishing standards and improving the professional qualifications of the officials and relevant staff; Introduction of training as a part of government human resource policy including state training institutions; Development of a broad range of training for staff in chosen policy areas including development of curricula; Development and implementation of new methods and new forms of work organisation.

Spain: The development of labour market instruments, systems of training and individual orientation measures for unemployed including tailor-made services and individual action plans support people to reintegrate with a special focus on those who return to the labour market after long periods of unemployment or sick leave counselling, job broking, specialised services as well as the development of a personalised approach to clients. Germany: Support for capacity building of local authorities in the new tasks introduced by recent labour market reforms. These new tasks required, for example, the close cooperation of these authorities with the employment services, training of staff of municipalities and local authorities in general. Finland: Following a reduction in the number of employment services in Southeast Finland, the remaining service points in municipalities offered not only information about the supply of labour, training schemes, vacancies and employer services, but also access to its electronic services and help in using information technology, in drafting documents and in setting up business. The employment services staff had were trained to deliver the new tasks. ESF experience with Public employment services ESF experience with Public employment services

The ESF has contributed to the reform and modernisation of education and training systems, and the adaptation of the training and education systems to the new requirements of the labour market and to the needs of the knowledge-based society. The ESF also supports the implementation of structural reforms through the development of new curricula, preparation of the teaching staff and the development of new methods of learning. Ireland: the introduction of a national framework of qualifications establishing a single, coherent award system for all levels of education and training. Also the launch of the National Qualification Authority which implements the new system. Portugal: According to data from 2000, over three million adults in mainland Portugal – around 64% of the active population - had not completed lower secondary education. This led the Government to launch a national system for recognising, validating and certifying competences acquired through non-formal learning supported by ESF. Belgium: a partnership between university and training institutions was established to develop new educational methods to promote life-long learning, including distance learning. ESF experience in Education

Initial ESF programme contributed to the reform of the Portuguese administration with –support to the implementation of public finance reform, –to the development of quality system in public services and –to the introduction of a standardised code of administrative procedures. The bulk of ESF interventions aimed at introducing new forms of services for citizens and enterprises 2. Through the mid-term review process, introduced a new programme –to further support the reform and modernisation of the Portuguese public administration by contributing –to the externalisation of functions, –introduction of motivation and performance assessment system and –to the establishment of "management by objective" principle. An important objective of the programme is to increase the quality of services provided to citizens and enterprises. ESF experience in Portugal

Administrative reform based on raising the efficiency and productivity of officials including Administrative re-organisation, research, evaluation, experimental actions Reorganisation of both initial and continuing training for staff in central, regional and local administrations Modernisation of administrative and legislative procedures, and the reorganisation of the departments Modernising public services including The Stock Exchange Local administrations The Finance Ministry's functions (taxes, budget, customs, salaries, pensions, treasury) The social security system Regional statistics ESF experience in Greece

Concensus oriented Participatory Follows the rule of Law Effective and Efficient Accountable Transparent Responsive Equitable and inclusive Good Governance

More information! Web: Europa.eu.int = Employment = Social Fund