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Republic of Serbia Report No. 116776-YF Official Use Only Republic of Serbia Horizontal Functional Review of Central Administration Task 1: Optimizing Organization of the Central Administration June 30, 2017 Document of the World Bank Acknowledgments This report was prepared by a team comprised of Raymond Muhula, Senior Public Sector Specialist and Srdjan Svirčev, Public Sector Specialist (Task Team Leaders); Gianni Laferrara and Aleksandra Rabrenovic (Consultants). Kornel Drazilov and Hermina Vuković Tasić (Program Assistants) provided administrative support. The report was prepared under the leadership of Adrian Fozzard (Practice Manager, Governance Practice) and Tony Verheijen (Country Manager, Serbia). The report is the result of close collaboration with the Ministry of Public Administration and Local Self- Government of the Republic of Serbia. The team is especially grateful for the strong support and technical feedback provided by various officials of the ministry. The team is also grateful to the representatives of various institutions who provided valuable information during the preparation of this report. The preparation of the report was financed by the European Commission through the Instrument for Pre- Accession Assistance (IPA II) 2014-2020. Standard Disclaimer This report is a product of the staff of the World Bank Group. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank Group or the governments they represent. The World Bank Group does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations and other information shown on any map in this work do not imply any judgment on the part of the World Bank Group concerning the legal status of any territory or the endorsement or acceptance of such boundaries. 2 Table of Contents Acknowledgments ....................................................................................................................................................... 2 Abbreviations and Acronyms ...................................................................................................................................... 5 Executive Summary .................................................................................................................................................... 6 A. Background .................................................................................................................................................... 6 B. Key Strategic Issues and Options at the Central Level ..................................................................................... 7 C. Action Plan for Implementation .....................................................................................................................13 Chapter 1: Introduction ............................................................................................................................................... 1 A. Background .................................................................................................................................................... 1 B. The Program................................................................................................................................................... 1 C. Legislative and Strategic Framework .............................................................................................................. 2 E. About this Report ................................................................................................................................................ 6 Chapter 2: Organizational Transparency ..................................................................................................................... 8 A. Introduction .................................................................................................................................................... 8 B. Data Availability ............................................................................................................................................ 8 C. Data Relevance ...................................................................................................................................................... 9 Chapter 3: Macro-Organization ..................................................................................................................................15 A. Introduction ...................................................................................................................................................15 C. Specifics by Groups of Institutions .................................................................................................................19 D. Implementing Bodies in Serbian Context ...............................................................................................................29 Chapter 4: Micro-Organization ...................................................................................................................................36 A. Introduction ...................................................................................................................................................36 B. Internal Fragmentation ...................................................................................................................................36 C. Specifics by Groups of Units .........................................................................................................................41 LIST OF TABLES Table 1: Organizing Functions: Implementation Action Plan .......................................................... iii Table 2: Staffing in Selected EU Countries (2015) ........................................................................ 10 Table 3: Distribution of Staff in Serbia’s Central Administration .................................................. 11 Table 4: Potential Exemptions and Savings ................................................................................... 13 Table 5: Number of Ministries in Selected European Countries ..................................................... 16 Table 6 Central Administration Institutions in Serbia and EU Member States ............................... 16 Table 7: Size of Selected Serbian Institutions ................................................................................ 17 Table 8: Distribution of Positions at the Center of Government ..................................................... 21 Table 9: Possible Re-Organization of Government Services .......................................................... 22 3 Table 10: SIGMA Principles of Public Administration, Chapters 2 (Policy Development and Coordination) and 4 (Accountability) ............................................................................................ 22 Table 11: Policy Making and Implementation Functions in Ministries........................................... 23 Table 12: Distribution of Staff in Policy Related Tasks ................................................................. 25 Table 13: SIGMA Principles - Chapter 4 (Accountability), Principle 1 (Rational organization) ..... 26 Table 14: Levels of Autonomy in Selected EU Countries .............................................................. 27 Table 15: Bodies in Ministries and Staffing Profile ....................................................................... 30 Table 16: Special Bodies and Staffing Profiles .............................................................................. 31 Table 17: Public Agencies and Staffing Profiles ............................................................................ 32 Table 18: Typology of Central Administration Institutions ............................................................ 35 Table 19; SIGMA Principles - Ch. 4 (Accountability), Prin. 1: The overall organization of central government […] provides for appropriate internal accountability .................................................. 37 Table 20: Criteria for Establishing Organizational Layers ........................................................... 37 Table 21: Span of Control in the Institutions of the Serbian Central Administration ...................... 39 Table 22: Organization of Ministerial Departments in Serbia ........................................................ 42 Table 23: Staff Allocation to Typical Support Functions ............................................................... 44 4 Abbreviations and Acronyms DPIOS Decree on Principles for Internal Organization and Systematization EC European Commission EU European Union HFR Horizontal Functional Review IMF The International Monetary Fund LBS Law on the Budget System LCS Law on Civil Service LoG Law on the Government LoM Law on the Ministries LMNE Law on the Maximum Number of Employees LSA Law on State Administration LPA Law on Public Agencies LPS Law on Public Services MAEP Ministry of Agriculture and Environmental Protection MCTI Ministry of Construction, Transport and Infrastructure MCM Ministry of Culture and the Media MoD Ministry of Defence MoE Ministry of Economy MEST Ministry of Education, Science and Technological Development DMoF Ministry of Finance MFA Ministry of Foreign Affairs MoH Ministry of Health MoI Ministry of Interior MoJ Ministry of Justice MLEV Ministry of Labour, Employment, Veterans and Social Issues SIMME Ministry of Mining and Energy MPAL Ministry of Public Administration and
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