almanac on security sector oversight in the Western Balkans

5.1.2. Lessons learned from implementation
Implementation of the procedures aimed at fostering state financial transparency
(especially within the security sector) has progressed greatly. It finally created a realisation
among state actors supposedly working for the public good that society’s
resources are lent to them in order to achieve results for society. It has been a long and
troublesome process, and although it would be wrong to conclude the job is over and
there is no danger of the reversal of positive trends, the results are obvious.
One element is related to the necessary and sustainable level of decentralisation in
this process. It would be beneficial to reduce the level of centralisation and disperse
the budgetary and financial authorities to the local authorities and communities – districts
and municipalities. This is problematic because approximately one-third of the
communities on all levels do not raise sufficient funds and therefore rely heavily on
the state budget.
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5.2. Procurement aspects
Procurement is one of the most sensitive parts of the overall activities of the state. It
lends the possibility for many abuses. It is not surprising that most recent investigations
are related to this field. After almost two decades of independence, Croatia
finally has reached the point where such irregularities are not accepted. The role of
media and civil society, as well as the unwillingness of the majority of citizens to comply
with theft of the public revenues, cannot be overestimated in this process.
5.2.1. Procurement transparency
Political steering of the budget is fully implemented, with all state administrative services
fulfilling tasks in supporting societal values. Otherwise, attempts to implement a
multi-annual strategy of state expenditures and procurement so far were unsuccessful.
This is not because of ineptitude of political and state administrative structures
but for a simple pragmatic reason of the economic crisis, which made all analysis and
simulations irrelevant. A clear example is represented by the Long Term Development
Plan of the Armed Forces 2006-2015. Prepared in different and better times, it became
the victim of the deteriorated economy. Currently, no institution is considering it.
Financial accountability of security institutions is in line with other state agencies and
because of the importance of security they are among the most scrutinised parts of
the state by media and civil society. All necessary regulations that provide instruments
for more substantive democratic oversight in terms of financial accountability are in
place. The security or military budget is not separated from the overall budget and
does not have special treatment compared with budgets of other state institutions.
Security sector procurement, by its nature, faces experiences of much public interest.
Due to the classified nature of some security related documents, however, if there is