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MASTERING
DECENTRALIZATION
AND PUBLIC ADMINISTRATION
REFORMS
IN CENTRAL AND EASTERN EUROPE
Edited by
GBOR PTERI
MASTERING DECENTRALIZATION AND PUBLIC ADMINISTRATION REFORMS IN CENTRAL AND EASTERN EUROPE
Address
Ndor utca 11.
H-1051 Budapest, Hungary
Mailing Address
P.O. Box 519
H-1357 Budapest, Hungary
Te l e p h o n e
(36-1) 327-3104
Fax
(36-1) 327-3105
E-mail
lgprog@osi.hu
We b S i t e
http://lgi.osi.hu/
OSI/LGI, 2002
All rights reserved.
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Contents
Gbor Pteri, Violetta Zentai
Lessons on Successful Reform Management ....................................................................................... 13
Introduction ................................................................................................................................. 15
Articulation of Reform Concepts ................................................................................................. 16
Domestic Political Context .......................................................................................................... 19
Economic Conditions .................................................................................................................. 19
Professional Expertise ................................................................................................................... 22
Governments Reform Management Capacities ........................................................................... 24
Public Support ............................................................................................................................. 25
Conclusions .................................................................................................................................. 28
About the Project ......................................................................................................................... 29
Notes ............................................................................................................................................ 30
PART I.
DECENTRALIZATON AND PUBLIC ADMINISTRATION REFORM ........................... 31
Kenneth Davey:
Decentralization in CEE Countries: Obstacles and Opportunities .............................................. 33
Introduction ................................................................................................................. 35
Elements and Stages of Reform .................................................................................... 35
Territorial Structure: The Municipal Tier ............................................................. 35
Territorial Structure: Higher Levels ....................................................................... 36
Assignment of Competencies ................................................................................ 37
Finance .................................................................................................................. 38
Property Rights ..................................................................................................... 39
Vested Interest .............................................................................................................. 39
Opportunity ................................................................................................................. 40
Preparedness ................................................................................................................. 40
A . J . G . Ve r h e i j e n :
Removing Obstacles to Effective Decentralization:
Reflecting on the Role of the Central State Authorities ................................................................ 43
Introduction .......................................................................................................... 45
Linking the Worlds of Administrative Reform and Decentralization .................... 45
Structural Problems in Public Administration and Their Implications
for Fecentralization Policies ................................................................................... 46
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PART II.
COUNTRY STUDIES ..................................................................................................... 73
Bulgaria
Aleko Djildjov:
Methods and Techniques of Managing Decentralization Reforms in Bulgaria ............................. 75
Introduction ................................................................................................................. 77
Typical Reform Trajectories .......................................................................................... 77
Review of the Past Decade of Decentralization ..................................................... 77
Aims of the Reform ........................................................................................ 78
Stages of the Reform ...................................................................................... 78
Decentralization and Public Administration Reform ..................................... 79
Legal and Constitutional Basis of the Local Self-government ............................... 80
Structure and Operation of Local Self-government .............................................. 81
Management of the Reform Process ............................................................................. 82
Adjustment to Political Changes, Election Cycles ................................................. 82
Domestic and International Professional Capacity to Prepare Reforms ................ 83
USAID, FLGR, Associations of Municipalities .............................................. 83
KPMG ........................................................................................................... 84
International Monetary Fund ........................................................................ 85
UNDP ........................................................................................................... 85
Council of Europe .......................................................................................... 85
Accession to the EU ....................................................................................... 86
Economic Conditions ........................................................................................... 86
Currency Board and Decentralization ............................................................ 86
Decentralization and Privatization ................................................................. 87
Regionalization and Local Self-government ................................................... 87
Administrative Capacity to Manage the Reform ................................................... 87
Policy Lessons ....................................................................................................... 88
Annex ........................................................................................................................... 90
Basic Laws on Local Government ......................................................................... 90
References .................................................................................................................... 91
Notes ............................................................................................................................ 92
Julian Boev:
Bulgaria: Decentralization and Modernization of the Public Administration .............................. 93
Introduction ................................................................................................................. 95
New Vision of the State ............................................................................................... 95
MASTERING DECENTRALIZATION AND PUBLIC ADMINISTRATION REFORMS IN CENTRAL AND EASTERN EUROPE
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Croatia
Te o d o r A n t i c :
Decentralization of Public Administration in the Republic of Croatia
Reform Process Management ..................................................................................................... 121
Introduction ............................................................................................................... 123
Reform Guidelines, Activities, Results ....................................................................... 125
Guidelines and Initial Activities .......................................................................... 125
Conducted Activities and Accomplished Results ................................................. 126
Projects ......................................................................................................... 126
Regulatory Framework ................................................................................. 127
Current Situation ................................................................................................ 129
Problems in the Implementation of Decentralization ................................................ 130
Limiting Factors in Relation to Local Self-government ....................................... 131
Recommendations for the Future Implementation of the Process ............................. 132
Notes .......................................................................................................................... 134
Hungary
Pter Szegvri:
Methods and Techniques of Managing Decentralization Reforms in Hungary .......................... 137
Preface ........................................................................................................................ 139
Components and Procedures of Decentralization ...................................................... 139
Typical Reform Trajectories ................................................................................. 139
Management of the Reform Process .................................................................... 142
Adjustment to Political Changes, Election Cycles ........................................ 142
Domestic and International Professional Capacity to Prepare Reforms ....... 143
Economic Conditions .................................................................................. 145
Administrative Capacity to Manage the Reform .......................................... 146
Areas of Reform Policies ............................................................................................ 148
Lessons and Recommendations .................................................................................. 150
Annex ......................................................................................................................... 151
1057/2001. (VI. 21.) Government Resolution
On the Plan of Governmental Tasks Concerning the Continued Development
of the Public Administration System in 2001 and 2002 ..................................... 151
I.
The Review of the Tasks and Spheres of Competence of the System ..... 151
MASTERING DECENTRALIZATION AND PUBLIC ADMINISTRATION REFORMS IN CENTRAL AND EASTERN EUROPE
Latvia
Svetlana Proskurovska:
Structural and Organizational Reform: The Experience of Latvia .............................................. 163
Introduction ............................................................................................................... 165
Structural and Civil Service Reform in Latvia in 19931997 .................................... 166
First Program of Reform of Public Administration in Latvia .............................. 166
Early Transformation of Public Administration .................................................. 168
Establishment of Civil Service. Training ............................................................. 168
Commercialization of the Public Sector. State Non-Profit Companies ............... 170
Administrative Territorial Reform ....................................................................... 170
Evaluation of Implementation of the First Reforms (19971998) ............................ 172
Fragmentation versus Centralization ................................................................... 172
Unified or Decentralized Civil Service ................................................................ 173
Transparency, Accountability and Steering of Public Bodies ............................... 174
New Public Administration Reform Program ..................................................... 175
Models of Management of Public Sector Reforms ..................................................... 177
Ministry of State Reforms ................................................................................... 177
Changes in Reform Management Model during 19952000 ............................. 177
Optimal Reform Management Model ................................................................ 179
Functional Reviews .................................................................................................... 180
Objectives of Functional Reviews ........................................................................ 180
Management of Functional Reviews ................................................................... 180
Lessons Learned .................................................................................................. 181
Proposed Structures for Managing and Sequencing
of Public Administration Reforms ............................................................................. 181
Conclusions ............................................................................................................... 185
Bibliography ............................................................................................................... 186
Notes ......................................................................................................................... 187
Poland
Michal Kulesza:
Methods and Techniques of Managing Decentralization Reforms in CEE Countries:
The Polish Experience ................................................................................................................ 189
Transformation in Poland After 1989 ........................................................................ 191
Decentralization and Public Administration Reform
as a Reinventing Factor for the Political System in Poland ........................................ 192
Course of the Reforms ............................................................................................... 193
Implementation Issues (19982000) ......................................................................... 203
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PART III.
List of Contributors .......................................................................................................................... 233
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