Decentralisation and local development in Western Balkans: convergences and divergences among different contexts by Raffaella Coletti with the collaboration of Andrea Stocchiero Second research report June 2011 SeeNet Programme: A trans-local network for the cooperation between Italy and South East Europe Horizontal Action C - Research In partnership with Piazza Margana 39 – 00186 Roma (Italia) – Tel. +3906 6990630 – Fax +3906 6784104 – e-mail: [email protected] - web: www.cespi.it TABLE OF CONTENTS OVERVIEW……………………………………………………………………………………….3 ALBANIA: REGION OF SHKODRA……………………………………………………………….29 BOSNIA & HERZEGOVINA: MUNICIPALITY OF TRAVNIK……………………………………...49 BOSNIA & HERZEGOVINA: MUNICIPALITY OF TREBINJE……………………………………..63 CROATIA: REGION OF ISTRIA………………………………………………………………….83 KOSOVO: MUNICIPALITY OF PEJË/PEĆ………………………………………………….…….99 MONTENEGRO: MUNICIPALITY OF BUDVA……………………………………………..…….109 SERBIA: AUTONOMOUS PROVINCE OF VOJVODINA………………………………….…….…121 2 OVERVIEW Executive summary This general introduction to the second SeeNet report, focussed on decentralisation, includes four sections. The first section is dedicated to the “state of the art” in the European Union’s support towards decentralisation in the Countries included in the research activity: Albania, Bosnia & Herzegovina, Croatia, Kosovo, Montenegro and Serbia. Decentralisation is a key topic in the Western Balkan Countries in light of the enlargement perspective and the multilevel institutional architecture adopted in many European Countries for the management of structural funds. The decentralization process in Albania, despite delays, has been consensual and steady since 1998. Nowadays, the overall regulatory framework is almost complete while the real transfer of function is still to be consolidated. Croatia, that might join the EU as the 28th Member State in 2013, is forced to put a strong commitment towards the decentralisation process, particularly with the aim of preparing local government units to manage the funds that will be available within the Community Cohesion Policy after enlargement. The issue of decentralization is also particularly relevant in the EU strategy towards Kosovo, following the provisions of the Athissari Proposal. In Montenegro the decentralisation process is considered to be at an early stage; a key challenge for the future is the establishment of transparent and fully accountable administrations at the local level. In Serbia, implementation of the constitutional provision relating to decentralisation and ensuring the resources for local governments are foreseen in the medium term priorities; it is worth mentioning that the peculiarity of the Kosovo status is an issue in EU-Serbia relations. In the general support paid by the European Union towards decentralisation and the strengthening of local governance, a partial exception is represented in the case of Bosnia and Herzegovina. The fragility of the current institutional arrangement, as it emerged from the Dayton Agreement in 1995, and the persistence of ethnic issues in the Country makes it urgent for the European Union to concentrate its efforts towards the strengthening of the government (at central and entity level) and its general efficiency. The second section is focussed on the role of local and regional authorities in the framework of IPA cross border cooperation activities and the Ionian-Adriatic macroregional perspectives. The aim is to complete a general view on the ongoing decentralisation processes following the first section: not only central governments but also local authorities and local stakeholders from Balkan countries are involved in what can be defined as efforts towards decentralisation as they collaborate in several programmes and projects, that aim at strengthening their role and capacities in the institutional architecture of the countries. In this framework IPA CBC play a very important role: strengthening the cooperation at local and regional levels is a key objective in all CBC programmes developed in the Adriatic area. IPA CBC programmes are not the only active networks across the Adriatic Sea. On the contrary, the Adriatic Basin shows numerous and strong networks at local and non- governmental levels, alongside the equally relevant relations among the governments of the area that have been developed in recent years through the framework of the EU enlargement process and of the Adriatic-Ionian Initiative. This framing draws a multi-level and multi-actor region that may find, in the near future, a new strategic framework in the creation of an Adriatic and Ionian Macroregion. The common Declaration for the creation of the macro-region was signed in the city of Ancona on May 5th, 2010. A new political declaration has resulted from the 2011 meeting of the Ionian Adriatic Initiative, held in Brussels on May 23rd. Overall, the multilevel governance structure that is proposed within the Macro-region will potentially enhance the role of local and regional authorities in the management of the Adriatic territory. Moreover, the structured involvement of different institutional levels will guarantee a better ownership of development strategies increasing their efficiency and a better application of the subsidiarity principle may follow. 3 The third section summarizes the main findings that emerge from the case studies, on three different topics: the institutional and political framework for decentralisation; power and resources of local self-governments units; multi-level dynamics. In fact, the seven territories have been analysed according to a common research methodology, aiming at providing an exhaustive picture of the ongoing decentralisation process and of the competencies of local and regional governments in each country with a special focus on the key themes of SeeNet intervention. The presentation of the main findings of the research reports has the aim of offering a general overview of the situation in the Balkan countries and specifically in the SeeNet territories with regards to decentralisation. Convergences and divergences between the different contexts have been identified. The analysis should help in designing possible network and cooperation activities that could be supported by the IPA CBC component and in the foreseen macro-regional strategy. Finally the report includes some general conclusions. Although the decentralisation process is generally perceived as favourable and positive for its links with democratization and efficiency of the State, numerous scholars have reflected on the risks of the decentralisation process in post- ethnic conflict situations. These kinds of risks are clearly perceived in the public opinion in countries like Bosnia and Herzegovina, Serbia and Kosovo. The path towards European integration and the growing cooperation between European and Balkan local and regional authorities require a stronger capacity in the local and regional governments; but it is important that European partners at all levels reflect upon the implications of this approach in each different context, and are well-aware of the sensitivity of this topic in the South-Eastern Europe Countries. It is important for European counterparts to avoid the risk of strengthening ethnic divisions while sustaining the decentralisation process. Overall, SeeNet offers, at present, and might offer, in the future, an exceptional platform for cooperation at local and regional levels between Italy and the Countries of the Western Balkans, to improve decentralisation and foster local development. Italian Regions, Autonomous Provinces and Local authorities could offer a key contribution towards a peaceful development of partner countries in the path towards European integration, avoiding the creation of new tensions and divisions and fostering a balanced development of the Adriatic area, eventually in the future framework for the Ionian-Adriatic Macroregion. 4 FOREWORD This report is the second of a series realised within the SeeNet Programme by a research network coordinated by CeSPI and composed of seven research organisations from South East Europe. Research activities aim at supporting the SeeNet programme through the analysis and systematization of local development governance experiences for the territories of South East Europe involved. The unit of analysis for the research is the territory. Seven territories in South East Europe have been chosen according to the following criteria: i) articulation of partnership relations; ii) coverage of the four themes of the SeeNet Programme; iii) representation of partner local authorities of South East Europe; iv) coverage of different administrative levels of South East Europe; and v) different Italian partners. Each territory is involved in one SeeNet project, led by local partners and supported by an Italian region or autonomous province on one specific theme. Each of the seven partner research organizations has been entrusted with the analysis of one territory and relative theme. Table 1: Case studies Territory Theme Albania Region of Shkodra Social planning Bosnia & Herzegovina Municipality of Travnik Mountain tourism Bosnia & Herzegovina Municipality of Trebinje Rural tourism Croatia Region of Istria Cultural and environmental heritage Kosovo Municipality of Pejë/Peć Environmental tourism Montenegro Municipality of Budva Territorial and environmental planning Serbia Autonomous Province of Vojvodina Local productive systems This report is focussed on decentralisation. This issue is particularly relevant in Western Balkan