Shaping the Future of ESP – ESF and Europe 2020 | Workshop 4 | www.budapestinstitute.eu

Draft presentation of Ágota Scharle, Budapest Institute, Hungary Brussels, 23 June, Wednesday, 14.30/16.30 1. Approach

- priorities derived from goals and potential for added value - goals derived from EU 2020: smart and inclusive growth - consider four sources of added value, coming either from the general weekness of

democratic procedures to accommodate the interests of weak social groups (among them the unborn generations) or from the potential of transnational sharing and learning

1. [future] if the next generation will benefit from intervention (which national gov may not be able to generate enough support for)

2. [voice] if the intervention helps weak and discriminated groups, confronting the sentiment of the median voter (improving the outcome of short-sighted political bargains)

3. [transparency] increase transparency of resource allocation and thereby increase accountability of governments (by reducing the cost of information and thereby assymetry of information for civil society)

4. [governance] transfer of good governance procedures/tools across nations and government functions

- consider the specific needs of new member states (NMS) 2. Proposals: what follows from the above four sources of added value?

What to do How Example of concrete measure

1 future Target children, mothers

Early development as a priority, care provision to increase female employment

Compulsory minimum „income” for children (cf Atkinson), to be spent on child care services

2 voice Narrow targets to truly disadvantaged

Introduce indicators that reflect flows/mobility (from inactivity and poverty, at household and regional level)

Focus on rehabilitation services (facilitate reintegration)

Impose conditionality of inclusion on all other spending

3 trans-parency

Enforce transparency, make information easily available at EU level

Strengthen EC role in pooling and sharing info

Initiate peer review on involving civil society in resource allocation and monitoring

Revive multilateral working groups under EMCO/EPS (e.g. country reviews, thematical sessions)

4 gover-nance

4.1. Reduce admin, increase NPM

4.2. Promote problem-based, coordinated intervention: complex programmes

4.3. Foster involvement of local communities

Introduce result-based financing – first as a bonus

Promote intra gov coordination, remove constraints to complex programmes

Capacity building in the implementation system

Establish separate evaluation agency

Training for auditors, review appeal procedures

OECD review of national management and admin practices

Increase share of ESF but at the same time increase share allowed to spend on ERF type spending within that

Significantly increase 2% error rate for complex programmes

Ear-marked use of TA resources for improving project management

Shaping the Future of ESP – ESF and Europe 2020 | Workshop 4 | www.budapestinstitute.eu

3. Proposals: what follows from specific needs of �MS?

3.1. Weak governments: need extra support for introducing NPM tools Fit with European Principles of Administration

Current fit Post accession change

High Mediumto high Medium Medium to low Low

Continued reform

Lithuania Latvia Estonia

Mixed Hungary Slovenia

Reform reversal Slovak R Poland

Czech R

Source: Meyer-Sahling 2009. Based on analysis of legal changes between 2004-2008 and survey data and interviews conducted in 2008 3.2. Weak civil society: need extra supply of information, enforcement of transparency, and reliable/stable financing structures

Participation in civil organisations by type of organisation and country group

global

political

labour market leisure

church

0

0.5

1

EU Eastern Europe

Nordic Europe

Central (Western

Europe)

Southern Europe

Source: Pichler and Wallace (2008), based on the World Value Survey 2005

Shaping the Future of ESP – ESF and Europe 2020 | Workshop 4 | www.budapestinstitute.eu

3.3. Low employment of uneducated population is main source of long term poverty and little convergence has happened (following recovery from transitional recession, or EU accession) Need more assistance in policy design and ALMPs. Employment rate of uneducated population as compared to EU15 (age 25-64)

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

EU 15

Slovakia

Lithuania

Czech R

Poland

Hungary

Estonia

Latvia

Bulgaria

Slovenia

Slovenia

Romania

Source: Eurostat on-line database [tsdec430] References Meyer-Sahling, J.H. (2009): Sustainability of civil service reforms in Central and Eastern Europe five years after EU accession, OECD Sigma paper no. 44. Pichler and Wallace (2008): Civil Society in Eastern Europe 1995-2005. A comparative analysis including Western Europe, Russia and the US. Presented at the Cinefogo conference „Squaring the Circle: The Relationship between Civil Society and Social Capital in Central and Eastern Europe?”, 13 June, 2008