Republic of Montenegro: Public Expenditure and ... - Vlada Crne Gore

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50 Chapter 3: Public Administration Reform had good cooperation from State agencies and courts in resolving complaints and has enjoyed strong support from Parliament (both the governing coalition and opposition). 3.30 Looking forward, Government could strengthen its new institutions of accountability in the following ways: • Strengthen the capacity of the Administrative Court to render decisions on a timely basis to preserve the integrity of the system. To that end, the staffing resources (either in judges or judicial support) should be expanded to help clear the back log of cases and to keep up with the flow of new cases that come in. • Enhance the budgetary independence of the Ombudsman, possibly giving a Parliamentary committee responsibility for determining its budget allocation. D. ORGANIZATIONAL CHALLENGES TO SUSTAINING REFORM 3.31 The 2003 PAR strategy provided a vision for restructuring the State Administration in order to foster harmonization with external bodies such as the EU and to enhance the effectiveness of internal relationships within the Republic. In the three years hence, substantial progress has been made to put institutional and legal structures in place. But adoption of laws must be followed up by consistent and high quality implementation. Critical decisions need to be taken now in order to strengthen the process of implementation in the years ahead. 3.32 The EU agenda and the need for internal restructuring of the public administration will become increasingly complementary. With spending on the public administration already quite high by EU standards, future capacity building efforts will become contingent on finding savings within the current budget levels. While the first phase of the PAR resulted in the adoption of European principles of administrative structure, the next phase must focus rationalizing the activities of the public sector and streamlining inefficient administrative functions. Achieving this transformation will likely require a stronger center-of-government policy coordination mechanism than is currently in place. Addressing Structural and Organizational Fragmentation 3.33 During the first phase of structural reform, the government focused on clarifying the relative roles and accountability between government ministries and other State administrative bodies. The Law on State Administration introduced a general separation between policy-making bodies (ministries) and policy-implementation bodies of the state administration (e.g., secretariats, directorates, administrations, services, and agencies). 53 Consistent with the organizational principles established by the new Law, Government adopted its current organizational structure in 2004 through issuance of the Decree on Organization and Activities of State Administration. The Decree identifies a list of functions for individual Ministries and other state administration bodies. Pursuant to the Decree, Montenegro now has 15 53 Whereas secretariats, directorates, administrations and services represent “classical” public administration implementation bodies, the agencies operate at arms length from the Government, with the right to have their own sources of finance. One of the implications of this, is that agencies are able to compensate staff at higher rates than possible within the civil service.
Chapter 3: Public Administration Reform 51 ministries, 12 administrations, 2 secretariats, 7 services and 4 directorates. More importantly, the Decree clarifies the accountability relations between different bodies (e.g., the Civil Service Administration and the Penitentiary Service report to the Ministry of Justice, as presented in Table 3.2), which in turn should enhance the effectiveness of the overall system. Table 3.2. Accountability Lines between Different State Administration Bodies Ministries which oversee work of different bodies Bodies which report to the designated Ministries Ministry of Justice Civil Service Administration Penitentiary Service Ministry of Finance Tax Administration Real Estate Administration Customs Administration Anti-Corruption Initiative Administration Anti-Money Laundry Administration Ministry of Education and Science Bureau for Education Service (Institute) Vocational Education and Training Center Examination Center Ministry of Culture and Media State Archive Ministry of Economy Ministry of Maritime and Traffic Affairs Ministry of Agriculture, Forestry and Water Management Ministry of Environmental Protection Ministry of Labor and Social Protection Ministry of Interior Directorate for small and medium size enterprise development Naval Safety Administration Directorate for State Roads Directorate for highway Construction Veterinary Administration Forestry Administration Water-management Administration Hydro-Meteorology Service Seismology Service Directorate of Public Works Administration for Sport and Youth Statistical Service (Office) Police Administration Agency for National Security Source: Government Decree on Organization and Activities of State Administration, Official Gazette of Montenegro, No. 53/2004, 61/2005, 06/2006, 32/2006. 3.34 Some substantial functional areas are not adequately addressed through the existing legislative framework and should be reviewed to assure that proper accountability exists. For example, Government’s employment, health, and pension insurance funds are not governed by the Law on State Administration, but have a distinct legal status defined by separate laws on health and pension insurance. 54 As mentioned in chapter 4, these funds represent a substantial share of public outlays and contribute to fiscal risk for the Republic budget. Furthermore, Montenegro has a number of independent regulatory bodies which are not governed by the Law on State Administration, but operate in accordance with the laws that establish them. 55 These 54 The World Bank Policy Note, Serbia and Montenegro, Public Administration Development: Creating the conditions for effective economic and social reform, 2004. 55 These are: Telecommunication Agency, Agency for Restructuring of Economy and Foreign Investment, Broadcasting Agency, Agency for Foreign Investment Promotion, Regulatory Agency for Energy.
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Report No. 36533 Republic of Monten
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CONTENTS ACKNOWLEDGMENTS ..........
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TABLES Table 1.1. Montenegro’s Gr
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ACKNOWLEDGMENTS This is the first v
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ii Executive Summary and procuremen
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iv Executive Summary 2006-2010 is p
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vi Executive Summary bill in the ke
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viii Executive Summary 23. Going fo
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100 Annex 4 Local roads planning, f
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102 Annex 4 with EU standards and d
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104 Annex 4 Most of the railway’s
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Republic of Montenegro: Public Expenditure and ... - Vlada Crne Gore

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