Transcript Implementation of the

Albania
Progress in strategic planning
2005-2007
National Strategy for Development and Integration
Forum on energy and poverty reduction strategies
26 June 2007  Athens
National Strategy for Development
& Integration
2001
2002
2007
National Strategy
for
Growth & Poverty
Reduction
National Strategy
for
Socio-Economic
Development
National Strategy
for
Development &
Integration
•Started as donor
driven process
•broad consultations
•expanded sectors
•4-year action plans
•400+ priority actions
•not linked to budget
•focus on EU Integration
•7-year planning horizon
•30+ sector, cross-cutting
strategies
•informs decisions on
budget ceilings
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NSSED goals and achievements
National Strategy for Socioeconomic Development (NSSED)
was the Albanian version of the PRSP (November 2001)
Goal (unit)
Actual
Target
2001
2002
2003
2004
2005
2006
1339
1456
1883
2414
2673
2660
GDP growth rate (%)
7.1
4.3
5.7
6.7
5.5
6.0
Budget deficit as proportion of GDP (%)
6.8
6.0
4.8
4.9
3.4
5.0
Inflation rate (%)
3.1
5.2
2.4
2.9
2.4
3.0
Growth
GDP per capita ($)
Poverty
Absolute poverty headcount rate (%)
25.4
18.5
20.0
Extreme poverty headcount rate (%)
4.7
3.5
3.0
Unemployment rate (%)
16.4
15.8
15.0
14.4
14.1
12.0
Infant mortality per 1000 live births
17.4
17.5
15.5
15.1
14.7
15.0
Maternal mortality per 100,000 live births
22.7
25.9
21.3
12.0
Health
15.0
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Weaknesses of NSSED
as strategic planning framework
However, NSSED had weaknesses as planning framework:
 only covered part of the strategic agenda of the
Government of Albania: e.g. reducing poverty and
achieving European integration require different
approaches and sector involvement
 Covered only a limited number of sectors
 poor links to budget; 4-year action plans overlapped
with the 3-year medium-term budget; duplicate
reporting
 document was ad hoc; no links with strategic planning
inside line ministries
4
Integrated Planning System
In November 2005, the Government streamlined the core
planning and budgeting processes by introducing the
Integrated Planning System (IPS):
 For the first time attempts to integrate all main
processes of Government (NSDI, budget, EUI process,
NATO membership, Public investment process, donor
coordination)
 Creation of Strategic Planning Committee, chaired by
PM, to oversee IPS
 Transfer of strategic planning (NSSED) function from
the Ministry of Finance to the new Department of
Strategy and Donor Coordination (DSDC) in the Office of
the Council of Ministers
 Explicit links between strategy and budget
 renaming of NSSED – National Strategy on Development
and Integration (NSDI)
5
IPS Accountability
Council
of Ministers
Inter-Ministerial
Committee chaired by
the Prime Minister
Strategic Planning
Committee
Minister
chaired by Minister
with DMs, General
Secretary , senior
Department Directors
Strategy, Budget &
Integration Group
Department of Strategy
& Donor Coordination,
with MoF and MEI, to
provide central
coordination
Programme Management
Teams
6
Overview of NSDI - 1
The National Strategy for Development and
Integration (NSDI) has the following main
characteristics:



replaces the NSSED as principal strategic
document of the Government
has a medium- to long-term horizon (2007-2013)
elaborates the 4 strategic priorities of the
Government Programme:
1. NATO and European integration (including the key points
of the National Plan for SAA Implementation)
2. democratisation
3. rule of law
4. social and economic development
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Overview of NSDI - 2
Synthesis of full set of sector and crosscutting strategies
 Sector strategies (20)
 follow a given structure and set of standards approved by the
Strategic Planning Committee
 describe the full extent of activities for each ministry which
are broadly costed
 can be updated whenever policy priorities change as part of a
regular planning and budgeting cycle
 Crosscutting strategies (12)
 describe selective policy priorities that are not under the
mandate of a single ministry
 are fully consistent with the underlying sector strategies
8
NSDI timeline
 March 2006: Strategic Planning Committee decisions on
strategic planning methodology
 June 2006: NSDI, sector and crosscutting strategy
preparation instructions issued for line ministries
 October 2006: first drafts of sector and crosscutting
strategies submitted
 November-December 2006: review of first drafts
 February-June 2007: consultation of sector and
crosscutting strategies
 July 2007: public consultation and launch of first draft
of NSDI
 October 2007: approval of NSDI
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Example: Energy Sector Strategy
 Lead: Ministry of Economy, Trade and Energy
 Strategic priorities
 Restructure energy system according to market principles to
establish effective institutional and regulatory framework
 Use energy more efficiently
 Optimise energy supply system
 Increase energy supply security through diversification and
investments in generation capacity and interconnections
 Increase use of renewable sources of energy
 Open domestic market of electric energy and participate
actively in regional market
 Protect poor households through electricity subsidy scheme
(a strategic priority of the social protection sector strategy) 10
NSDI – MTBP Linkages
Sector &
CrossCutting
Strategies
[2007-13]
Macroeconomic
Framework
Priorities
Policy Note
Proposed
MTBP
3-Year
Budget
Ceilings
This process begins
in January; Budget
Instructions sent out
to ministries in early
March
Budget
Instructions
Strategic Planning
Committee
MTBP
3-Year
Budget
Ceilings
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Consultation
Advisory Groups
All ministries have formally established advisory groups
for each strategy consisting of 10-15 people representing
domestic non-government policy stakeholders; Groups to
assist not only in preparation but also in implementation
Donors
Line ministries invite donors to discuss advanced drafts
Parliamentary commissions
Each strategy must be submitted for information
TV debates
To take place across the country in July and September
on core policy themes
12
Monitoring - 1
Clear distinction of monitoring arrangements
1. Monitoring of inputs and outputs is part of budget
(MTBP) documentation, not of NSDI
 Core document is the Ministry Integrated Plan, which
summarises the outputs to be delivered in the current
year according to the ministry’s medium-term budget
submission
 First set of Ministry Integrated Plans prepared in 2007;
ministries will report against them in 2008
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Monitoring - 2
2. Monitoring of impacts and outcomes is in the focus of
the NSDI
 Core document is the Annual Progress Report, which is
the responsibility of the DSDC and focuses on high-level
indicators in a format accessible to the general public;
not to be used as update to the strategy in the way
PRSP progress reports were expected to be
 Reports against the list of NSDI monitoring indicators
 First report produced for 2005 experimentally to mark
the transition to the new style; the 2006 report will be
benchmark for the NSDI
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Donor alignment
 An output of the NSDI will be an external assistance
guidance document to be produced by the end of 2007
 will provide overview of national external
assistance performance (e.g., disbursement rate)
and progress towards Paris Declaration on
Harmonization
 will review each sector’s existing external assistance
portfolio, assess against NSDI/sector priorities and
identify gaps
 will encompass all external assistance, including IFI
loans, IPA and other multi-bilateral donors
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Conclusion
 the 2001 poverty reduction strategy did serve as the
first attempt to develop a strategic, horizontal
approach to policy planning and priority setting
 the complex, far-reaching commitments of European
Integration necessitated a new government-wide
approach
 poverty reduction goals and broad commitments (e.g.,
MDG’s) are still reflected in individual sector and crosscutting strategies
 however, this no longer stands as the exclusive driver
of strategic planning
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