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Mastering Decentralization and Public Administration Reforms in Central and Eastern Europe

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Mastering Decentralization and Public Administration Reforms in Central and Eastern Europe Local Government and Public Service Reform Initiative MASTERING DECENTRALIZATION AND PUBLIC ADMINISTRATION REFORMS IN CENTRAL AND EASTERN EUROPE Edited by GÁBOR PÉTERI MASTERING DECENTRALIZATION AND PUBLIC ADMINISTRATION REFORMS IN CENTRAL AND EASTERN EUROPE OPEN SOCIETY INSTITUTE LOCAL GOVERNMENT AND PUBLIC SERVICE REFORM INITIATIVE Address Nádor utca 11. H-1051 Budapest, Hungary Mailing Address P.O. Box 519 H-1357 Budapest, Hungary Telephone (36-1) 327-3104 Fax (36-1) 327-3105 E-mail [email protected] Web Site http://lgi.osi.hu/ ISSN: 1586 4499 ISBN: 963 7316 76 0 © OSI/LGI, 2002 All rights reserved. Copies of the book can be ordered by e-mail or post from OSI. Printed in Hungary, April 2002. Design & Layout by Createch Ltd. 4 LOCAL GOVERNMENT AND PUBLIC SERVICE REFORM INITIATIVE CONTENTS Contents Gábor Péteri, 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 Government’s 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. Verheijen: 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 5 MASTERING DECENTRALIZATION AND PUBLIC ADMINISTRATION REFORMS IN CENTRAL AND EASTERN EUROPE A Lack of Progress in Rethinking the Role of the State .................................. 46 ‘Leftover’ Elements of the Previous System Reduce the Scope for the Re-allocation of Scarce Resources ....................................................... 47 Lack of Vertical Coherence in Policy Sectors Reduces Reliability and Predictability ............................................................ 47 Weakness of Inter-sectoral Coordination Makes the Adoption of Strategic Approaches More Difficult .......................................................... 48 Limited Strategic Capacity Leads to Over-reliance on Outsiders ................... 48 Conclusions: The Problematic Nature of Structural Reform and its Implications for Decentralization Policies .......................................... 49 The Role of Civil Service Reform.......................................................................... 50 Thinking About Local Government in Administrative Reform Processes: Creating Better Conditions for Successful Decentralization.................................. 51 References ............................................................................................................. 53 Notes ..................................................................................................................... 54 Miroslav Beblavy´: Management of Civil Service Reform in Central Europe ............................................................. 55 Introduction ................................................................................................................. 57 Key Factors Influencing Civil Service Reform and its Management ............................ 58 Heritage of Communism ...................................................................................... 58 Governance and Public Administration Reform ................................................... 59 Labor Code Reforms ............................................................................................. 60 Institutions Responsible for Civil Service Reform Management and Effects of the Choice ............................................................................................. 60 Interior Ministries ................................................................................................. 61 Labor Ministries .................................................................................................... 61 Single-purpose Agencies ........................................................................................ 62 Other Actors—Incentives and Roles ............................................................................ 63 Civil Servants ........................................................................................................ 63 Foreign Partners—EU and Others........................................................................ 63 The Media and the Public..................................................................................... 64 Political Parties ...................................................................................................... 65 Trade Unions and Other Interest Groups ............................................................. 65 Timing in Reform Management .................................................................................. 66 Timing of Civil Service Reform—When to Start Reform ..................................... 66 Sequencing of Components of Civil Service Rreform ........................................... 67 Is There an End to Civil Service Reform? ............................................................. 68 References .................................................................................................................... 70 Notes ............................................................................................................................ 71 6 LOCAL GOVERNMENT AND PUBLIC SERVICE REFORM INITIATIVE CONTENTS 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
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