Report of the National Seminar on a Strategicunpan1.un.org/intradoc/groups/public/documents/caricad/unpan015856.pdf · Report: National Seminar on a Strategic Framework for Governance

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MINISTRY OF HOME AFFAIRS

Report

NATIONAL SEMINAR ON A STRATEGIC FRAMEWORK

FOR GOVERNANCE: “Towards Consensus Building and Performance

Enhancement for Public Sector Reform”

October 22 and 23, 2003 Hotel Krasnapolsky

Report: National Seminar on a Strategic Framework for Governance

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Report

NATIONAL SEMINAR ON A STRATEGIC FRAMEWORK FOR GOVERNANCE:

“Towards Consensus Building and Performance Enhancement for Public Sector Reform”

DAY 1 October 22, 2003


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WELCOME - MR. ARUN HARDIEN Policy Officer Ministry of Home Affairs

After singing the national anthem Mr. Hardien, on behalf of the Ministry of Home Affairs and the Caribbean Center for Development Administration (CARICAD), warmly welcomes everyone to the opening of the two-day seminar.

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REMARKS BY MS. DWYNETTE D. EVERSLEY Program Coordinator Strategic Planning

in Public Services Project at CARICAD It is a pleasure to be in Suriname to participate in this important initiative taken by the Government. Let me, first of all, extend the best wishes for the successful outcome of this National Seminar from the Executive Director of CARICAD, Dr. Patrick I. Gomes, who regrets very much that another prior engagement prevented him from being here to participate in this event. However, CARICAD is also represented here today by our Deputy Executive Director and Senior Advisor, Mr. Richard Madavo and by Mr. Azad Hosein, a long time CARICAD associate. Later on in the proceedings, you will have the opportunity to hear more from these two gentlemen, who have a wealth of experience in public management and development at the regional and international levels. I should perhaps continue by sharing a little more with you about what CARICAD is. The Caribbean Center for Development Administration, CARICAD is a specialized institution of the Caribbean Community, CARICOM. Our mandate is to shape and enhance the development of strong leadership and governance systems in the Caribbean Community. To this end, we offer timely and relevant services to member states in the areas of strategic planning, e-government, institutional transformation, and provide a range of dedicated consultancy services to member states to further their respective public sector reform and development programs. We are pleased to be able to offer technical and financial support to the Government of Suriname for the convening of this very critical National Seminar on a Strategic Framework for Governance: towards consensus building and performance enhancement for public sector reform. We recognize and sincerely congratulate the Government of Suriname for taking this very significant step towards creating the framework for a strong and strategic partnership with the labor unions, the private sector, with civil society agencies and with other international partners to arrive at a common understanding, shared vision and strategy for mobilizing economic and social resources for national development as part of the process of its effective governance and public sector reform process.


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A key rationale behind regional efforts for public sector reform and modernization is a dedicated interest in restructuring state agencies efficiently and effectively. Strategic planning is important to any organization, which is interested in achieving this type of transformation successfully. Simply put, it is a tool that helps an organization to align its resources more efficiently to respond to the key outputs required by its clients over time. CARICAD has been implementing the Strategic Planning in Public Services Project since October 2003. This Project was approved under a funding mechanism between CARIFORUM and the European Development Fund for a three-year period and will come to its close in December 2003. The overall objectives of the Project has been to develop and strengthen institutional capacity within public service organizations for the application of strategic planning and management in order to enhance and improve the formulation, coordination and implementation of development policies and programs in the fifteen (15) CARIFORUM member states. Activities have been designed in accordance with the main operational components, namely: National and Regional Training and Development, to which end, the Project has offered training and development at the level of national and regional seminars activities in the area of strategic planning and management, and provided dedicated in-country support for the development of strategic plans in departments and ministries of beneficiary States. Establishment of Caribbean Strategic Planning Network, through which means the Project has generated a knowledge network and knowledge base for all CARIFORUM member states (a) specific to capacity and institutional development in strategic planning, and (b) relative to CARICAD’s overall mandate on public sector management and facilitate access to use of the network and database. More information is available on CARICAD’s website www.caricad.org. Coordination with Dominican Republic and Haiti, to bring these two countries closer to the other CARICOM States in terms of defining common regional approaches to public sector reform and modernization, and to that end, to create real opportunities for regional collaboration and horizontal cooperation. Some of the expected outcomes of overall Project activities are: 1. The adoption of state-of-the-art systems for strategic planning in each

CARIFORUM Member State with allied benefit of improved, practice and cost-effective policy formulation and implementation.

2. Wider integration of social partners and civil society in reform and modernization programs for the public sector.

http://www.caricad.org/


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3. Enhanced access to regional and international databases on strategic planning technologies through CARICAD’s network, and focal centers for and electronic interchange and networking in each CARIFORUM Member State, and

4. Enhanced capacity of national and regional training institutions to fulfill capacity development needs of regional public administrations on a sustained basis.

CARICAD’s focus under the Strategic Planning in Public Services project has been to create more effective linkages between regional administrations and strategic partners on public sector development in the application and implementation of strategic planning. The Project has created useful opportunities for lateral cooperation and sharing of experiences. By the end of this year, we will make available to Member States several reports and case studies of the practical experiences and best practices of at least six CARIFORUM members in the area of strategic planning. We feel these can serve as valuable learning tools to guide the efforts of other regional agencies in the common goal of improving the quality of public services, reducing public expenditure and overall efficiency. These documents and a full catalogue of Project outputs will also be available on our website. This current Seminar in Suriname is being supported under the regional Strategic Planning Project. Its genesis was a meeting of our Project Steering Committee which took place right here in Suriname, just about one year ago when Minister Joella and Minister Raghoebarsing enunciated some of the specific areas in which CARICAD could further support public sector development objectives in Suriname. As such, we are very pleased to be able to contribute in our small but unique way to this process of national development. We are confident that a major output of this two-day seminar will be the drafting of an action plan which includes the identification of quantifiable targets for public sector development and an implementation schedule, which document the Government may decide to further discuss with CARICAD for the programming of relevant support. We remain committed to supporting this process. I thank you.

OPENING REMARKS - H.E. JULES AJODHIA Vice-President of the Republic of Suriname

It is my pleasure to address you briefly on the occasion of the opening of this seminar “on a strategic framework for governance”, focusing mainly on the area “towards consensus building and performance enhancement for public sector reform”. The current Government, upon taking office in August 2000, formulated the “Public Sector Reform” (PSR) as one of the objectives of its policy. In the Government Policy Statement 2000-2005 the Government expressed the need for measures aimed at the reform of the public sector as a condition for the socio-economic development of our country.


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In the past period, the approach of the policy on PSR took shape within the Council of Ministers under the coordination of the Ministry of Home Affairs. In March 2002, Secretary-General Iglesias of the IDB, on an official visit to Suriname, expressed in a presentation on the meaning of PSR the willingness of the IDB to financially support a PSR program in Suriname. With this support, a firm basis has been laid to realize the program for public sector reform. In addition, mention must be made of the inspiring support from the side of the UNDP and the spontaneous cooperation of CARICAD. The Government is greatly appreciative of the support from said international and regional organizations that provide expert and financial assistance in public sector reform. Now, the central policy objectives of the Government may be carried out, which will be given specific substance at this point. In this regard, the President of the Republic of Suriname, Drs. Runaldo Venetiaan, in February 2003, installed a “Steering Committee” on cabinet level in which nine Ministers under the direction of the Vice-President as Chairman of the Council of Minister, steer the policy process that is indicated with the three letters PSR. The primary duty of the Steering Committee may be described briefly as being “the creation of an effectively and efficiently operating public sector that, in the development process of Suriname, must fulfill a directional, guiding and facilitating role.” At the beginning of September of this year, in support of the Steering Committee for the PSR program, the Government installed a Technical Committee. This Committee consists of departmental experts and has as its main objective to provide the Steering Committee of Ministers with recommendations as well as with the required organizational, administrative and technical assistance in the execution of the key duties of this ministerial Steering Committee, such as:

- making decisions with regard to public sector reform; - directing the process that should lead to this reform; - monitoring the progress of this process of reform; - coordinating the external technical and financial assistance.

In developing the program for the successful implementation of PSR, obstacles and risks associated to any process of structural and functional reform, will have to be conquered. The Government is aware that public sector reform is a process that is aimed at changing the attitude of all parties that are actively involved in and/or are influenced by Government action. In this regard, awareness and consensus are required on a broad, national level. The seminar that we embark on this morning is aimed at contributing considerably to this awareness and consensus building. The intention of the speakers and participants in this seminar will be to realize the objective of this seminar with which one of the foundations will be laid for a successful progress of the process of public sector reform. In this respect, the persons involved in reform will have to be changed themselves into “partners in reform”. The


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reform of the public sector is a process that may not be the easiest thing to undertake; however, it is a process that cannot be avoided if we want to reform the structures and processes of the sector. This process of change will, mainly, relate to the human resources within the Government machinery, the Civil Service that, to an important extend, is the foundation on which the public sector rests. For PSR, as a whole, the reform of the Government machinery will be an unavoidable condition. With regard to the reform of the public sector, in addition to the reform of the Government machinery, other sub-sections have been identified, such as:

- decentralization of the district administrations; - institutional strengthening of the procedures for planning and financing; - rationalization of the semi-governmental sector; - stimulation of the private sector.

In the upcoming two days, much effort will be demanded from you, speakers and participants in this seminar. It is with great interest that the Government and Steering Committee for Public Sector Reform look forward to the results of this seminar that is considered of great importance to us. On behalf of the Government and the Steering Committee I wish you much inspiration, good luck and a fruitful seminar. It is my pleasure to now pronounce the “Seminar on a Strategic Framework for Governance; towards consensus building and performance enhancement for PSR” open. Thank you. Mr. Hardien: The Vice-President has just now indicated the necessity for PSR. It is important to realize that PSR is based on national consensus, whereby the Government, the Private Sector, the Labor Unions, and other parties are involved.


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STRATEGIC PLANNING AND MANAGEMENT OVERVIEW Mr. R. Madavo

Mr. Richard Madavo is currently in the management team of CARICAD as Deputy Director and Senior Government Advisor. He formerly worked in Zimbabwe as the Director for Training in Public Service as Head of the Division for Strategic Management and Policy Studies at the Zimbabwe Institute for Public Administration and Management and as National Director in the position of Chief Executive Officer for a multi-donor funded capacity building program for local government authorities as part of public sector reform efforts. He has over 20 years public sector working experience and has specialized skills and experience in strategic planning and management, change management, performance management and team-building and medium-term expenditure framework (MTEF). It is my pleasure and privilege to be here today to participate in this important seminar. Allow me to begin by referring to the main topic of this seminar, which is ‘a strategic framework for governance’. The implication of this topic is that today’s governments must ensure that the deliverance of its services is at its best because people now are aware of what they deserve. This is a very opportune time to actually on how to better the service deliverance. As far as CARICAD is concerned, we are very honored and happy to play a small part in helping you to implement and plan your reform initiative. We feel that it is the only way you can make meaning and add value to the people that have elected you. In more specific terms, I would like to discuss with you strategic planning and management. Strategic planning and management is used as a tool for implementation and planning of reform initiatives throughout the world. Many countries have found it useful to use as a tool, you might want to consider that this tool is essential and critical for you in implementing your intended thoughts. There is a saying that goes like this: “we are destined to repeat past mistakes and suffer the painful consequences without a vision of how things might be in the future and a plan for realizing that vision”. This is a pact statement, it says that we may very well have intentions that are good, but if we are not very clear on the picture we want to create, the environment we want to create at the end of the day, if we are not clear about that, and if we are not clear on how we are going to get there, we might as well forget it: intentions will always remain intentions. We need to be very clear about what it is we want to create in Suriname. What actions are we going to take to get there? Unless you do so, you will not get there. Why plan strategically?

- To form a bridge between the organization’s current reason for being and its long-term vision. This also distinguishes the organization from its


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competitors and enables it to manage internal challenges and to empower its individual staff. If we know what our vision is and how to get there, we need to plan strategically. Why? We must plan strategically because strategic planning will form a bridge between what we are today in Suriname and the long-term vision that we intend to create. A strategic plan is a means to adapt to new situations, to new conclusions and to changes from reforms that we are trying to implement.

- To adapt to new situations/conditions and ensure understanding of change

and its impact. It also helps to access and manage risks so as to reduce costs. This is more so in this area where a variety of reforms are being undertaken. It allows us to prioritize what should be done and what should be left out. Our resources are not limited and, therefore, it is important to be able to say which activities can be done and which cannot be done, because they do not contribute to what we want to achieve; in this way you will be able to do a lot with limited resources.

- It helps to identify and focus improvement efforts on core business and,

thus, facilitate effective use of resources in the face of widespread resource constraints. In addition, it allows for prioritization of activities and outputs as well as the basis for assessing performance of the organization. Strategic planning is the basis for assessing performance. Unless you have a good strategic plan with indicators of what it is you are going to want to achieve along the way, there is no way you will be able to assess how well you are doing. If you have a good strategic plan, it will enable you to monitor yourselves to say ‘are we making progress, or are we not’?

- To promote coordination and prevent duplication of efforts and/or

competition. It, thus, improves communication and teamwork and provides a framework for making day-to-day decisions so that everyone pulls in the same direction. The fact that you have to plan together, the fact that you are going to clarify roles and making sure that each one knows who is playing what, that in itself allows you to work more like a team. Once people are clear about their roles, they will not step on each other’s toes. Strategic planning also provides the basis for day-to-day decisions; often people make ad-hoc decisions, but with a strategic plan it does not matter who is in place, they will be able to make consistent decisions.

- To help the organization understand its internal strengths and weaknesses as well as stakeholder needs. Are we able to achieve what we want to achieve? What are the external threats?


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Many Ministries have to be aware that they are there to deliver services. They must know who to deliver the services to. A lot of civil servants are unaware that they are there to serve and that people have expectations. What is strategic planning? Strategic planning is the process by which the guiding members of an organization envision its future and develop the necessary procedures and operations to achieve that future. You must first identify the vision; what does Suriname want to create? And then you have to plan how to get there. Guiding members refers to people in the leadership, people in the helm of the private sector and unions; together they must envision what future they want for Suriname. Together they must work out the procedures and operations to get to that future. A strategic plan acts like a roadmap, a road that gets us where we want to get. Strategic planning is a continuous process, which establishes the direction in which we want to go, and rejuvenates itself through continuous monitoring, reviewing, evaluation and measurement. A lot of people that have undergone strategic plans produced documents that remained on the shelf. People make decisions that are completely contrary to what is written in the document. It is important for us to embark on these reforms with a clear Roadmap and be able to monitor how far we are, what can be changed, what can be adjusted, where we can put more resources so that we make more progress, etc. It is very important that we plan strategically, otherwise we will not be able to monitor ourselves and see whether we are on the right track or not. The word strategic comes from a Greek word “Strategos”, which means “the art of war”. In war we have to surprise the enemy, i.e. by thinking creatively, thinking strategically, thinking out of the box. In war we also have to work as a team or else the enemy will infiltrate our ranks and soil our efforts. Thinking creatively also has the meaning that people must be allowed to express themselves, must be empowered to think and bring out the best in them. A strategic plan document should be a management tool, which helps the organization to focus on and efficiently align its response to the changing operating environment. What is strategic management? It implies that we are looking at our resources so as to respond and to manage the environment, taking into account expectations and needs of stakeholders. In other words, we use our resources to meet the expectations and the needs of stakeholders. Stakeholders must be prioritized since some will be more critical than others.


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Various external forces - economical, political, technological, social and legal - have to be taken into account. Unless you do that, you will not be able to create the kind of vision that your reform implies. When managing strategically, you need to take account of your past successes and failures. When referring to successes, it is used as a motivating factor, and referring to failures must be to learn from the mistakes and do things differently. We are making decisions on the basis of what we need to deliver and not on the basis of pleasing whomever. Strategic management in practice

- One must marshal efforts of the total workforce to close the performance gaps. - Identifying and communicating the vital ‘gaps’ that must be closed to achieve

the mission and vision. - Linking annual and individual work objectives to the strategic goals and

mission; this should not be at ministerial level only, but also on inter-departmental and individual levels.

- Creating high performance teams. It is important that all Ministries contribute towards the attainment and work in unison.

- Ensuring that action is taken to adapt work plans to changes in the environment while maintaining alignment with strategic goals.

- Communicating to and with staff and stakeholders on progress in implementing the corporate Roadmap (strategic plan). People will only be encouraged if they see that progress is being made.


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Strategic planning models MODEL A

Vision: We must always have a vision, which is the ultimate state of affairs that we would like to see; an ideal picture of things. Mission statement:

- Must spell out why we exist. - What is core business and for whom are you doing that business. - What are the values (honesty, transparency, accountability, hard work,

teamwork, etc.) Key Result Area (KRA): The core business can be divided in particular domains (areas) in which results must be produced in order to have success. Gaps: In all KRA’s one cannot claim to be perfect and there will always be room for improvement. It is the difference between what we are able to do now and what we should be doing, which creates the performance gap. Those gaps must be closed. Strategic goals: The outcomes you want to create.


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Strategic objectives: A more specific statement of what is to be accomplished, expressed in what quantity, and or quality/cost and by whom. Strategic objectives can be allocated to particular departments in order to ensure that they are fulfilled. Teamwork has to be promoted. Work plan/program: Must be specified; who is doing what and when, etc. When making an action plan or work program, it must be linked to the budget. It is where the available money must go. SWOT Analysis: Strengths, weaknesses, opportunities and threats analysis. Stakeholder analysis: Who are they, what are their expectations, whom are we serving? Out of this the gaps are identified which must be closed. MODEL B


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MODEL C

Stakeholders are both external and internal. Staff in the government are internal stakeholders, they also have expectations, which must be addressed.


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STRATEGIC PLANNING FRAMEWORK

If we are going to work as a team, if we are going to work to pull together as a country, we need a national vision that spells out what you would like to see for Suriname and reach it through consensus. Most of the time there is a Planning Commission, which has to produce the medium-term national strategy. The challenge would be to decide which the priority Ministries are and where to start. Conclusions Research findings show that high performance institutions do strategic planning and management from which the following advantages accrue:

- delivery of better services; - agreement in delivery of realistic services as everyone in the organization has

a role to play; it is important that everyone who is in any organization will be able to say what role they will play and that the role is clarified;

- everyone is assisted in knowing what they have to do and how they can achieve it;

- everyone has to find it worthwhile to go to work, has to find it meaningful and that can only be done if there is planning;

- money, people, time and energy are focused on desired results and outcome; - one should be able to challenge where the money comes from;


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- clarification of roles helps to develop leadership and management skills of key stakeholders, including staff and in particular those at the executive and senior level;

- it is a demonstration of best practice in relation to corporate government issues, such as risk management and the need for satisfying the requirements of resource and budgeting accountability.

It would be useful to use strategic planning as a tool if your noble idea of PSR initiative is to be a success.


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OVERVIEW OF CURRENT AND PLANNED ACTIVITIES FOR THE MODERNIZATION OF THE PUBLIC SECTOR IN SURINAME

Drs. Silvano Tjong-Ahin

Silvano Tjong-Ahin is Chairman of the Association of Economists in Suriname (VES) and, from 1988-1994, he was employed as economist at the Planning Bureau. From 1995-2000 he was Permanent Secretary of the Ministry of Planning and Development Cooperation (PLOS) and as of 2000 he is Operations Specialist in the Field Office of the Inter-American Development Bank that is, among other things, responsible for PSR in Suriname. In 2002, the Surinamese Government put in a request to the IDB for assistance to create a PSR program together with the Government due to the fact that some problems had been identified. The problem that was formulated by the Government of Suriname included:

- Low quality of services; - Deterioration of quality of public management; - Overextended public sector; - Weak financial management; - Excessive centralization; - Lack of effective control management.

STRATEGY Agreed on a two-tiered approach:

- Roadmap for PSR - Public Management Strengthening Program; one that is already

used in the operational sphere 1. ROADMAP FOR PSR The objective has been formulated together with the Surinamese Government and, in approaching the IDB, all stakeholders were involved; the IDB does not impose anything. The main objective is to provide the Government of Suriname, stakeholders and donor community with a comprehensive plan for institutional reforms to ensure good governance by improving public administration; the intention is to make public administration more efficient, more modern, more decisive so that any future Government will be able to pursue a good policy and, consequently, bring about development for Suriname. A two-track policy will be applied. In this regard, the Roadmap will be used first in that an integral PSR program will be prepared.


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Roadmap Components

- Study on public sector issues and policy recommendations for modernization of the administration. Current PSR efforts will be integrated.

- National consensus building process.

With regard to the sequence of execution nothing definite will be revealed at this time. Study on PSR: Examination of horizontal managerial systems: civil service, budgetary design, financial systems, procurement, information systems, Auditor’s Office, decentralization. Vertical reforms: • modernization of key Ministries, such as Finance, Planning, Home Affairs,

Justice, and others; • Streamlining of central Government; • Privatization/restructuring of semi-governmental organizations.

Civil Service: A diagnosis will have to be made of what the machinery looks like, of the strong and weak points of the machinery, of how the machinery can be made more efficient and of what is required. Also, why does one want a public sector in Suriname and what should that public sector do and not do? Budgetary design: This concerns the budgeting of the public sector. The Dutch Government is financing a project, namely Finance-Finance Cooperation. How do payments take place across Ministries and what procedures are observed? Procurement: How do tender invitations take place in the public sector and do they actually take place? How can that be reformed? Information systems: In particular, the Human Resources Management System, but also the flow of information within the Government. In this regard, state-of-the-art systems come to mind. Auditor’s Office: The Auditor’s Office must also be reviewed and recommendations made. Decentralization: The decentralization process. In all of this, a Roadmap for the entire society is involved as well as the donor organizations that are operating here; not everything stated therein will be carried out by the IDB. In some areas, others are already active and that may not become a


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problem, because it is the intention to reach an integral plan and, in this integral plan, activities that are currently underway will also be included. Vertical Reform: This means modernization of the key Ministries. The Ministries of Finance, PLOS, Home Affairs and Justice have been mentioned since they will be the pioneers in the process of public sector reform. Streamlining the central Government: Tuning the Ministries to one another. In this respect, much work has been done at the IDB offices; to begin with, an evaluation was made of the workings of the Ministries, what are the job descriptions, etc. It turned out that there is an enormous amount of overlapping and contradictions in the job description of the Government. Privatization/restructuring of semi-governmental organizations: Privatization is a choice of the Surinamese Government and community, not of the donor. Decentralization process: At this moment the IDB is financing the decentralization program. In principle, it involves fiscal decentralization aiming, in first instance, at strengthening the district administrations. Also, the legislation will have to be amended in such a manner that the districts are certified in the very near future and will be authorized to collect certain types of tax themselves and, at a later stage, to make a plan, prepare a budget and undertake expenditure and investments themselves, whether or not through small infrastructural projects. Decentralization must continue and, although a second stage is planned in this process, it is also included because decentralization is an important part of reform within the public sector. Modernization of Parliament: In this regard, it concerns the mechanism behind Parliament. The IDB is already financing a number of activities, namely the automation of the Bureau of Parliament. Modernization of the Judicial System: Modernizing the judiciary. Private Sector Development: It is the opinion that PSR cannot take place without doing something about the private sector. In this area as well activities have been initiated by the IDB; other donors are active in this field, also. Policy dialogue and consensus In collaboration with the Committee on PSR a process of policy dialogue will be launched. - Assisted by a consulting firm, major stakeholders (private sector, unions, NGO’s,

etc.) will be consulted and a report will be produced. - CPSR will share views and polish up with stakeholders through workshops.


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Result: A National Accord for Public Sector Modernization. This is to obtain the maximum support for PSR. The IDB is aware that the challenge in Suriname is gigantic, because it concerns a complete ‘overhaul’ of the public sector. The execution of the project will not take place on a short-term; there is still much to be done. That is why a two-track policy approach was chosen; before the Roadmap is completed a second intervention will be carried out. An intervention consists of activities that must take place in any case and which can be carried out without a Roadmap. 2. PUBLIC MANAGEMENT STRENGTHENING Parallel interventions because:

- they built credibility with early winners; begin there where you know you will have ‘quick wins’.

- they built basis for further reforms; lay a basis to be able to run proper diagnostics of what the Government looks like.

- diagnostics of some areas are well advanced; de diagnostics in certain areas are already in an advanced stage.

- they will gain support for further reforms; some sacred beliefs will have to be stepped on, which may cause reforms to not always enjoy the required support.

Components

1. Civil Service Management - Modernization of the Personnel Act of 1962; one of the most important

conclusions with regard to the Personnel Act is that it mainly provides for the rights of the civil servant. This does not mean that the obligations are not provided for elsewhere, but it would be better to have them all in one document. The Personnel Act must be modernized and a balance introduced in the rights and obligations of the civil servant. The Salaries Decree must also be reviewed.

- Human Resources Management Information System; a system must be developed (or improved) for a more modern information flow on personnel. This is, in any case, valid for the central personnel administration of the Ministry of Home Affairs.

- Training Program for HRMIS; all persons who will be dealing with the system in Ministries, but especially those in the Ministry of Home Affairs, will receive training.

2. Civil Registry: The Central Registration Office (CBB)

- modernization of workflows; the CBB must be modernized and, in this


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regard, manuals must be introduced for efficient work processes; - MIS network and preservation of archives; - rehabilitation of archives accommodations and field offices; although,

in general, the IDB does not finance accommodations it is necessary in this case.

3. Public Sector Procurement

- Improve regulatory framework; in Suriname, there are rules as far as this is concerned, but often they are not applied in the correct manner. Somewhere, there are rules and regulations for contracting but there is no authority to see to the observance thereof. Furthermore, the rules are not in alignment with the international rules on contracting.

- Strengthening procurement control institutions; if these are absent it is advisable to establish such an institute that must fulfill a guiding role towards all Ministries and oversee all developments in this regard. Also, there must be an organization (newspaper) that makes the process transparent.

- Study for e-procurement; this involves a study.

OTHER IDB-PSR ACTIVITIES Operational:

• Decentralization program 7.9 m (L) • Support Health Sector Reform 2.1 m (TC); preparatory study with regard to

what needs to be done to improve public health. • Land Management Program 145 k (TC); a preparation for a more extended

program, whereby rules will be established for the granting and organization of land in Suriname.

• Financial Sector Reform 10 m (L); this should reform the financial sector with a focus on the reform of central banks.

• Strengthening of DNA 725 k (TC) • Debt Management Office 600 k; this involves the management of foreign and

national debts. • Privatization of agricultural enterprises 250 k; this has already been set in

motion (SML). PIPELINE 1. Soon to be approved:

• Health Sector Reform Program 5.7 m (L); implementation of the recommendations.

• Support for Basic Education Reform 13.5 m (L); in this regard, a number of


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drastic changes may be expected. • Entrepreneurial development small enterprises 500 k.

2. Short term:

• Strengthening Public Investment System; studying the “project shop” of the Ministry of PLOS in relation to the planning system.

• Reform of the Pension System; a national pension scheme.

NEXT STEPS • Mission on PSR in November • Approval by Bank • Implementation starts early 2004

The proposals for the Roadmap and the Public Management Project have already been submitted to the Government. In November, talks will be held with the Government and a decision is expected. If the Government approves the PSR may be launched very early in 2004.


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PRESENTATION UNDP Drs. Max Ooft

Since 2002, Mr. Ooft has been Assistant Resident Representative of the UNDP with the country office for Trinidad & Tobago. He is also Program Specialist for governance programs in Suriname, focal point for the UN Volunteers Program and in charge of the daily operations of the UNDP Office in Suriname. Suriname has decided to implement the program for public sector reform. There is overall agreement that the reorganization of the Government, or the public sector, is necessary in order for the Government machinery to fully serve the higher goals, namely eradication of poverty and sustainable human development in Suriname. Much is already been done with respect to public sector reform in Suriname. Various sectoral reforms have been launched, several Ministries have implemented programs to increase the efficiency within Ministries and semi-governmental organizations; job analysis and the necessary manpower are being mapped. Steps are made in the direction of privatization and rationalization of semi-governmental companies, Government subsidies have been or are being reduced, tax reforms are being or have been implemented, Government income is being brought in line with Government spending, etc. In addition, the strengthening of the private sector is being taken in hand. These different initiatives and programs will have to be put in an integral framework, namely a strategic program for public sector reform on which, in principle, all parties and stakeholders must agree. The Development Program of the United Nations, UNDP, has offered technical and financial assistance that, in the meantime, has been shaped into a project document in which an amount of 225,000 USD has been made available for mandatory activities in this start-up stage. These activities are: mapping the activities already underway and/or planned and which may be considered part of PSR; a description of the current and desired public sector structure and the operation of and making public the various aspects and issues surrounding the public sector reforms as well as setting in motion a process of dialogue between the stakeholders to reach an integral implementation plan with maximum support. The counterpart of the UNDP is the PSR Ministerial Steering Committee, the responsibility of which is borne by the President. This Steering Committee is assisted by a Technical Committee that, for now, consists of Government representatives.


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Support for the program for public sector reform is almost a “must” for the UNDP. After all, our common goals are eradication of poverty, ‘pro-poor development’, development in which people are the focal point, equality and justice for all. Goals that are included in the international millennium goals. If it has been determined that the public sector must be reformed to study and guide this sustainable human development, the UNDP will support it. National ownership is the standard for the UNDP; the country decides and decisions will have to be made on a national level. We do not just give money and we do not have a special recipe either. We fulfill a proactive, supportive role without dictating what should be done. The UNDP will provide examples and best practices, draw attention of counterparts to aspects that may need extra attention in view of the experience elsewhere. We help to make available information and data that is required to make a balanced decision. We help to prepare for decisions, for example, by means of technical discussion papers, comparative studies and data analysis. We help to set up training courses to strengthen the national capacity so that, at some point, we will not be needed anymore in certain areas. We facilitate processes of dialogue so that decisions have maximum support and we try to keep in mind always the pro-poor, gender equality and environmentally friendly approach, which is sometimes forgotten. In our work, we have at our disposal the worldwide network of experience and expertise of the 166 UNDP offices. In short, a hands-on approach like that of a friend who likes to help. In addition to the support for the preparation of an integral reform program, the UNDP is also closely involved with programs for capacity strengthening within a number of the five pillars identified, as in the structure of the Government reform. After a period of intensive preparation and discussion an agreement has been reached regarding a program for structural strengthening of the national capacity for planning and development policy on the eradication of poverty, for which the most important external development partners for Suriname, namely the Netherlands, the EU, the IDB and the UNDP, have promised an amount of about 615,000 USD. This program is practically ready for implementation. Based on the available data, an integral macro-econometrical model has been identified for Suriname. With some adjustments, depending on the objective, this model can be used for policy planning as well as for predictions. It will have to be further adjusted to the specific requirements of the potential users, such as the Ministries of Finance, Trade and Industry, PLOS, the Central Bank, the Planning Bureau and other sector Ministries. Individuals will have to be trained in the application of the model but it will significantly contribute to the strengthening of the national capacity to formulate macro-economic thinking and policy on the eradication of poverty.


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In the field of education, through strengthening of vocational training, diversification of employment is taken in hand. With the Ministry of Regional Development preparatory talks are in a final stage concerning the institutional strengthening of the Ministry and capacity strengthening of traditional authorities and organizations in the interior to effectively participate in development planning. The National Assembly is being supported in the strengthening of its representational and supervisory duties. A study as to the impact of international trade agreements on Suriname has also been completed in the meantime. In our opinion, PSR will depend wholly on the presence of an effective mechanism for joint decision-making in which especially the private sector, labor unions, and other social groups participate with reliable data available and all parties involved observing agreements and carrying them out in an active manner. Suriname has taken steps on the road to accelerated development for every person in this country and the UNDP, as a partner, will keep playing an active role herein.


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PRESENTATION CIVIL SERVANTS ASSOCIATION (CLO) Michael Miskin

Mr. Miskin has extensive experience in various Government committees, including the Committee for Structured Cooperation, Workgroup for the preparation of the establishment of the Socio-Economic Council, Committee Personnel Act and additional legislation, Committee on monitoring restitution advances by SZF policyholders. Furthermore, he may boost an extensive career in union life. He is Treasurer of the CLO Board, Chairman of the General Association of Clerks of the Court, and Chairman of the General Personnel Association of the state-owned Academic Hospital. It is a great pleasure for the CLO to be here today to present to you some aspects on PSR. Before I do so, I would like to make some practical observations that address seminars that are held and the position of the CLO in all of this. The CLO has not been notified by the Government yet as to its intention to implement PSR. The CLO did meet twice with the IDB and has been informed by the last-mentioned. In fact, we should not be at this seminar at all but for strategic reasons the choice was made to attend this seminar nonetheless and make a contribution. The CLO participates in this seminar at the request of the Minister for Home Affairs. The Labor Union, in general, wants to promote these types of matters in the field. In this case, you may receive an invitation from the Government down the road to jump on the bandwagon; this is not desirable. The Labor Union chooses to obtain information on another forum. After the presentation by the IDB it is time for the Labor Union to have a third meeting with them. The Labor Union is not being kept abreast by the Government but the Government wants to know what is happening in the field and, if necessary, action must be taken. What is the use of seminars? The starting point must be clear as well as where one wants to end up. Many seminars are held and his experience teaches him that it often concerns isolated activities. At this point he would like to ask the organizers of this seminar where all of this should lead; is it a start? Will there be more seminars? In Health Sector Reform, for example, there is a certain pattern: activities can be monitored and changes are clearly visible. With regard to preparations being made by the Ministry of Home Affairs they would like to stay in the loop. Furthermore, he compliments the Minister for Home Affairs on the fact that she insisted the seminar was conducted in the Dutch language.


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PSR may be considered a broad term. The CLO, on May 15, 1995 signed an agreement with the Negotiation Authority of the Government that, in paragraph 2 of the agreement, provides for “reorganization of the public sector”. The literal text reads: “the Government, with the support of the CLO, will take in hand the reorganization of the public sector. In this regard, specific measures will be taken that should lead to a planned and systematic improvement of the public sector. As a matter of fact, reorganization of the public sector is a point of negotiation in the demands of the CLO.” By means of a letter dated April 18, 2003 the CLO, once again, drew the attention of the Government to this matter, namely in paragraph 9. The literal text reads: “On May 15, 1993 the CLO signed an agreement with the Negotiation Authority of the Government for reorganization of the public sector. However, the Government has made arrangements with the IDB on a much broader approach, namely PSR, which will cover a period of 10-15 years according to the IDB. The CLO proposes to start up negotiations as indicated in the demands of November 25, 2002, whereby especially the privatization of Government authorities will provide the state with more financial breathing space. For example, when the privatization of the Waste Disposal Service, which has been announced long ago, becomes fact this will mean a savings of about 4 billion on an annual basis. The Government has not yet responded formally to this letter from the CLO; there are oral agreements with the Vice-President and the Minister for Home Affairs. Furthermore, since the foundation of the CLO various administrations have been approached with regard to reorganization (reform, rationalization, etc.) of the Government machinery. In 1995, an agreement was finally signed in order to undertake this endeavor. It was put on the negotiation agenda and has remained there during the previous administration. It is unfortunate that administrations only focus attention on the financial chapter; the provisions desired include more. During this administration, too, attention has been focused solely on the financial chapter of the provisions desired. The CLO believes that the actual reorganization will not come about during this administration. In the meetings with the IDB, whereby the period of 10-15 years has been specified, the CLO has pointed out to the consultant that, with the changing of the guard, other political parties come to power bringing the work already done to a standstill. That is the experience of the CLO. Matters regarding PSR have not yet been put on paper by the CLO because it is still a point of negotiation. The paper will be presented at the right political moment.


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The pattern that the CLO advocates with respect to initiating civil service reform consists of three stages that must be implemented at the same time: Stage 1: Privatization of Government authorities that will then be able to operate independently. From the services offered profit may be made in order to continue the services and provide employees with a good salary. In fact, the Government is already doing so and examples are the Maritime Authority and Telesur. The Government is urged to implement this stage because it leads to a win/win situation, for the Government as well as for the employees. Ever since the nineties, there has been talk of privatizing the Waste Disposal Service. In a meeting with the IDB consultants it was stated that, when such a process is initiated, specific results must be visible within 3 years. For 1o years now, efforts are being undertaken at the Waste Disposal Service without any results. If the Waste Disposal Service would be privatized this would mean a savings for the Government of 4 billion a year. Privatization of the Vehicles Workshop would mean a savings of 2 billion. In this manner, a study could be made as to which authorities would qualify for privatization. Stage 2: Authorities remain under the wing of the Government but operational costs would have to be raised by the authorities themselves. Government authorities that cannot be detached due to the nature of their services may be partly privatized, whereby the Government pays the salaries but goods/services are provided in conformity with the market. An example is the Central Registry Office. Education, although a sensitive area, could also qualify for this model. In Suriname, we want to sit in the front row for nothing; examples are that waste is collected for free, watching television is free, obtaining land, water and electricity is free, etc. The community must be remolded into a society where these services must be paid for. In schools, books are provided for free but it would be better if the books were sold to the persons who can pay for them and provided free of charge to those who cannot; subject subsidy must be introduced. If privatization takes place or necessary costs are recovered from the citizenry, corruption will be reduced. Services will become more accessible as well. Stage 3: Offer attractive redundancy schemes. In this regard, several models may be devised. As for the public/private sector development it is striking that, lately, a tendency has been noticed of persons wanting to go to work in the public sector, especially persons belonging to the lower and middle class. This phenomenon came about since the salary increase last year caused the lower salaries to become higher than those in the business community. This issue should be studied as well when discussing private sector development; of all things, people should be encouraged to leave the public sector. Introducing a social security scheme (pensions, health insurance, etc.) is important to prevent these types of tendencies. In bilateral talks (labor union and business community) a study should be made as to how a national social security scheme may be introduced for persons who are made redundant.


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Often one hears that half of the civil servants should go home or that 10,000 should be made redundant. However, the following overview obtained from CEBUMA shows a different picture.

Ministry Number Salary

Justice & Police 3,106 4,995

Defense 2,714 2,933

Finance 1,220 1,401

Education 13,526 11,960

Public Health 4,774 4,609

Total 25,340 25,898

Remaining

(11 Ministries) 14,106 11,337

Total 39,446 37,235

Justice & Police: With regard to payment, this Ministry is the best off with an average of 1.6 million guilders per employee. Also, it is clear that the armed forces are better accommodated than the rest. There is talk of public sector reform but due to the increase in crime more police officers will have to be recruited. The number of penitentiary civil servants has been increased recently as well. Education: Accommodates a part of the Civil Service and costs 4 million US Dollars monthly. The system must be reviewed to a greater extent, because it is very complex. The IMF asked the CLO the following questions: - I need some clarification on where, in your opinion, are the obvious

employment mismatches in the Civil Service, that is, where there are too clearly too many persons relative to government need, where there are too little to government need?

- What is the size of the group of persons who, for political reasons, have been asked not to report to work and what would be the legal obstacles to formally terminate their employment?

Everyone is concerned with the question of how to downsize the Civil Service. The answer to the first question of the IMF was phrased as follows:

- This is very difficult to answer. If you would ask any civil servant with


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management responsibilities, he would tell you they need more people at work. More teachers are needed because we should send more to the interior. Every city or town wants more study opportunities. We need more police because there is more crime and more difficulties in crime prevention because of new types of crime. The city grows and traffic is chaos, so we need more police and equipment to regulate traffic. We need more nurses because many leave the country. We need more firefighters and equipment, not every district is well equipped. We need more military because we do not have an obligation anymore for national service in the army. So, if we do not employ, the army will cease to exist. We need more qualified personnel in the offices, etc.” The Government of Suriname agreed with the IDB to make a Roadmap for PSR. A Term of Reference is made for this project with the title: PSR Roadmap Technical Assistance. I think your answer will come out of this study. We do not need to send people away; we need to reform the public sector. We have a brief idea, which we want to negotiate with the government. We have signed an agreement with the government in 1995 for civil service reform, but still we have not been invited to talk or to negotiate about this matter.

- According to a study of Home Affairs Civil Registration, July 2002, there are 359 inactive civil servants in all the departments; that is what they are called in the study. Others are talking about ghost civil servants or ghost teachers (IDB Report). In Article 69 of the Personnel Act the reasons for which somebody can be dismissed are mentioned:

• at his own request • when he/she reaches the age of 60 • failure of duty • imprisonment • placed under guardianship • unreliability • incapability • not able to work together with others • after medical examination not able to work because of certain

sickness • when someone loses the legal requirement to do his job; if legal

requirement was asked after his employment, he will keep his job

• if someone gets married and it is not legal to have a brother- or sister-in-law in a certain position

• when a certain job or position is discontinued or parts of the civil service

• not present at work after holidays • reorganization of the civil service


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We also think that there is an unwritten code in politics, because today I am in power and tomorrow you are. We think you should talk with judges and/or lawyers when you are in Suriname because certain things are put on paper, but how the law is applied we do not know. We do not worry about these kinds of matters but leave this - when we cannot negotiate on dismissal or other measures from the government - in the hands of the best lawyers’ office in our country.

The CLO has not been invited by the Government yet but is willing to implement PSR together with the Government. Mr. Hardien: The seminar is an impetus for building consensus and create an information flow towards all stakeholders and parties, including the CLO. The CLO is a highly valued stakeholder in the PSR process. PSR is not accomplished in one day, it is a process. DISCUSSION: Mr. G. Rodrigues (N.V. Kawna i.o.): 1. Can the concept of doing things ‘out of the box’ be explained; 2. Is privatization the same as selling or transforming to limited liability companies; 3. Do the loans have to be paid back to the IDB? Mr. Madavo: Doing things ‘out of the box’ is a figurative expression that is intended to encourage people to think in a different way because the old way of doing things no longer work. Mr. Tjong-Ahin: Loans, in general, must be paid back. The advantage of a loan is that it signifies commitment. With regard to privatization: there are companies of which the Government holds the shares. In case of privatization a portion or all of the shares may be sold, dependent on the nature of the business. Mr. San A Jong (as private person): The IDB representative used the word “we” several times; what does he mean? The IDB? Will the sub-directorate of Import Duties and Excises be included in the reorganization? The division of positions there leaves much to be desired. How will the IDB deal with possible labor market effects? To what extent will the Roadmap be open for discussion to the public? Mr. Tjong-Ahin: He is here on behalf of the IDB and when he uses the word ‘we’ he is referring, in general, to the IDB. With regard to the question about the Directorate of Import Duties and Excises horizontal and vertical reforms will be implemented. The horizontal reforms entail ‘cross-cutting’ in the various Ministries and, in the Ministry of Finance, vertical


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reforms will take place. In the Roadmap the general strategy will be outlined as well as the activities (whether or not underway). With regard to the Ministry of Finance it will be handled appropriately through the Finance-Finance Program. All matters lacking there will be considered for alternative financing by the IDB or other donor. According to him, the entire Tax Department should be given the highest priority since the finances are generated from this department. With regard to the labor market effects he says that it was not the intention to talk about the content of the reform program because there is not one yet. The Roadmap is there to outline the strategy and, together with the various stakeholders and experts, to draw from the experience of Latin America in order to design a program for reform. It is not a matter of lay-offs but of modernization of the public sector. In one of the studies this matter must be extensively studied to see what the next step should be. If it turns out that employees will have to be made redundant they should be adequately taken care of. That is why PSR is not possible without private sector development. The Roadmap does not consist of only studies, recommendations, etc. An important part of it is consensus building. The design of the Roadmap will have to be discussed with almost all parties concerned and, in this regard, a 2-stage strategy has been outlined: firstly, the Committee for PSR will meet with the most important stakeholders, and secondly, a PSR agreement will be reached. If PSR is not supported, the IDB will have no reason to support PSR. Mr. Miskin: People talk very lightly about employees switching jobs. Mr. Simons, who carried out a study in Paramaribo and Wanica, indicated to the CLO that persons switching jobs can earn an income, but that those persons do not have fixed incomes; they live in great uncertainty. That uncertainty must be eliminated. Often, civil servants have additional jobs. How will you convince them to switch to doing that additional job fulltime and leave their job with the Government? That means that the circumstances of those people must be optimized before they can make such a decision. Matters are not as simple as they seem to be. Ms. J. Blokland (CLO): Mr. Tjong-Ahin talked about rights and obligations in the Personnel Act that are not properly provided for; can he give some examples? Mr. Tjong-Ahin: The Personnel Act provides for appointments, promotions, and such matters, but nowhere is it written in that Act that working hours are from 7 AM to 3 PM. The recruitment of civil servants is not provided for. Departing from the Personnel Act alone, there is no provision as to the procedure that must be observed with regard to the recruitment of personnel. As to positions, the CSFE should provide recommendations on the job descriptions, but often, this is omitted. This is possible, because matters are not properly provided for. Mr. Miskin: The Personnel Act is, in fact, a legislative framework and, in many cases, it is stated that matters are provided for by State Decree. The working hours


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are provided for by circular letter. In the business community this is a different matter, everything is provided for in the collective labor agreement (CAO). However, due to the nature and politics rules and regulations change almost on a daily basis. Mr. Tjong-Ahin: That is exactly the problem with the Personnel Act; a system cannot be dependent on people and be left too much to chance. Mr. San A Jong: May he conclude that the general strategy of the IDB, in PSR, is to make redundant as few people as possible and to train and re-educate as many people as possible in order to have them function more effectively and more efficiently in Government? In the past year a study was carried out as to the possible effects of the international trade agreements on the Surinamese economy and the first thing that was focused on was: what are the most striking characteristics of the Surinamese economy? It is important that those characteristics are included in any PSR. One of those characteristics is that Suriname has a very import-intensive production structure. The current production structure is one of the main causes why we have such a large public sector and such poverty. Another characteristic is that the production structure is so import-intensive that we lack foreign currency to finance the economy. Mr. Tjong-Ahin: The Roadmap consists of 2 parts and one part is an extended study. In cooperation with the community, the role that the community wants to allocate to the Surinamese Government must be established. That is why a national agreement should be reached that goes beyond political parties. Based on that agreement, a joint decision will be made as to redundancy. We are not saying in advance that redundancy should take place; what we are saying is that there must be commitment. On the subject of production structure he observes that this is not conducive to earning foreign currency and this should be taken into account. Not too long ago, the World Bank issued a recommendation regarding the Investment Act. This recommendation entailed that the macro-economic climate should be such that anyone would be interested in investing. The next step is to make the economy a healthy one. In all these endeavors, the will of the administration and the Surinamese people is essential. Whenever anyone has any criticism, it must be expressed now and not after documents have been signed. That opportunity will be given.


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PRESENTATION REPRESENTATIVE OF THE PRIVATE SECTOR Drs. Jimmy Bousaid

Jimmy Boussaid studied General Economics at the Erasmus University of Rotterdam. After his return to Suriname, he was employed for a short time at the Center for Industry Development and Export Promotion as Project Officer. In 1984, he was employed by the Hakrinbank as Account Manager at the Dept. of Credits. From 1995 up to 2000 Mr. Boussaid was Deputy Chairman of the VES and, for many years, he has been Treasurer of the Surinamese Red Cross, Secretary of the Association of Stockbroking in Suriname and deputy Board member of the VSB. He extends his sincere compliments to the organizers of the seminar. The presence of such prominent representation of directly involved policymakers gives the impression that PSR has now been put on the political agenda and it is, certainly, high time to do so. This is evident from the presence of many persons outside of the public sector, namely, representatives of the labor union, business community and NGO’s that may be considered directly involved herein – the Vice-President used the term ‘partners in reform’ – as an effort to find maximum social support for PSR, the content of which must still be well-defined. He thinks that that is one of the objectives of the seminar. PSR is a broad term. There are some terms in use, such as modernization of the public sector or modernization of the state, which cover the same meaning as PSR. In this regard, it concerns modernization or reform of:

• Government finances • legislation • strengthening public administration and/or decentralization of

administrations • re-defining the role of state institutes • restructuring the Civil Service • strengthening the role of civil society • improving safety in the city, etc.

PSR is very broad and does not just simply entail making civil servants redundant, according to popular belief. It should also be clear that PSR must be an ongoing process. In the case of PSR in Suriname, the first thing that comes to mind is reform of the public sector that has gone awry, is insufficiently productive and operates inefficiently with high costs that threaten the stability of the Government finances and even the stability of the Surinamese economy preventing a healthy development of the private sector.


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The issue of reform of the public sector has been a point of discussion since the sixties. Since then, many reports have been written and many solutions devised, but, unfortunately, not much has been done. On the contrary, instead of a shrinkage of the public sector we saw a strong growth therein. The causes thereof are well known, namely a poor economic structure, patronage politics and, since the eighties, a strong centralistic way of thinking. Unemployment was always rampant with insufficient jobs in the private sector and the lack of a social safety net. This brought the political field in action creating unnecessary jobs within the public sector and, in this manner, engaging in customer relations. Since the eighties, a centralisitc way of thinking emerged, namely a vision that the Government knows best, wants best and does best. At this moment in time, more than 36,000 people are employed by the Government: 16,000 in about 120 state-owned companies and companies related to the state, which amounts to more than half of all the laborers in the formal sector. Compared to other countries, the more developed as well as the less developed countries, this is a very high number. What are the problems with such a public sector machinery and its great influence on the Surinamese economy? Four problems have been singled out, namely: 1. Budgetary and financial aspects 2. Effects on the Surinamese labor market 3. Ineffective and inefficient functioning and the consequences thereof 4. The non-conduciveness of such a machinery to private sector development Ad. 1 Budgetary and financial aspects The bulky public sector absorbs the greater part of the finances of the Government as well as of the country and is a source of budgetary and macro-economic imbalance. An example: the preliminary realization data on cash basis over 2002 on Government spending: of the day-to-day costs of about 780 billion, 388 billion was paid in wages and salaries amounting to half that amount; 135 billion (20%) on subsidies and contributions, including state-owned companies, such as the SML, Surland, etc. It turns out that 70% of Government spending is used for wages, salaries and subsidies. An item that shows growth is payment of interest. The spending on material purchases and contributions, also due to this situation, was very low with all its consequences for the functioning of the public sector. The increase of wages and salaries was 219.3 billion (2001) and increased to 387.8 billion in 2002, an increase of 76.8%. This is substantial and has not been without severe consequences. The wages agreement of last year has led to a large figure on the budget, also because of the campaign at the Tax Department. The Minister for Finance tried to do some restructuring in the area of expenditure at the expense of all sorts of Government investments, causing an enormous deficit on the national budget. Due to the limited capital market, the finger is quickly pointed at the Central Bank. Looking back on the past 20 years the instability in the Surinamese economy often found its source in the instability of Government finances. Governments that


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want to do nice things for the people do not sufficiently consider the financial feasibility of their plans causing a deficit on the national budget due to the limited capital market. Consequently, monetary financing is promptly applied, certainly, if there are irresponsible administrators in power. The effect is a process of inflation, exchange rate depreciation, increase of rates for foreign currency, deficits in the balance of payments, all of which have a negative influence on the monetary cycle resulting finally in a collapse of the investment climate. If you want to create a climate of stability a PSR program will have to be implemented in order to obtain a structural control of the Government finances, thereby eliminating any disturbing factors since this is most crucial to the investment climate. An investor decides to invest when there is a stable climate so that he can plan and make calculations. If PSR is not dealt with, there will be no climate of stability or conditions for growth and development. Ad. 2 Disturbance of the labor market Almost 50% of the work force is employed by the Government or state-owned companies. This puts great pressure on the labor market. In Government, people are often in positions where they do not belong and there is a mismatch of skills of the person and the position he holds. The result is that the basic duties that the civil servant must carry out are often not carried out in the proper manner. Re-allocation, outside of the public sector, could increase the added value of those people and make them more productive. Naturally, the size of the machinery allows little room for salary increases. Many civil servants earn little, but since the increases last year the situation has changed; in the lower levels of the labor market, reference is made to civil servant’s salaries. The reasoning often comes down to: “I earn a little bit more here, but if I were there I would earn less, but I need not perform more so I can take a second job, causing me to make more money and work less.” There is no incentive to increase productivity, because there is no guarantee for promotion. There are no output standards; for man himself this is no good because every person wants to feel a sense of accomplishment and wants to be rewarded for it. It is not very appealing to educated people to seek employment with the Government. As a result, the Government that plays an important role in society has no qualified manpower to fill positions, not to mention the inadequate level of automation and all the inefficiencies that result therefrom.


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Ad. 3 Inefficient and ineffective functioning What we see is that the collective goods that civil servants are expected to produce are of very low quality; the quantity is disappointing as well. It is a matter of poor service. The quality of the public administration leaves much to be desired. We are faced with a situation in which corruption is fed by outdated and poor legislation. The FIAS report describes this in detail. The inefficiency and ineffectiveness of the functioning of the Government also prevents the development of the private sector. It can hardly respond to international developments. At the moment, the world is going through a stage of globalization, of regional economic integration and all sorts of changes in rules and regulations; those rules and regulations will also apply to us. This means that we need people with a higher education who can keep up with those developments, but it turns out that the system is not able to keep up with the changes in the world. There is a need for deregulation. Ad. 4 Non-conduciveness of the system to private sector development The system cannot properly function as supporter of the private sector. The Government fulfills a central role in structuring society, ensuring the constitutional state and providing collective goods. In other words: a conducive investment climate, because producing for a market is an entrepreneurial activity. We could use this as a standard, saying that the government engages in the production of collective goods (goods, the consumption of which must necessarily be collective: enforcing law and order, healthy investment environment, public administration, etc.) and production does not take place through a market mechanism and exclusion not via the price mechanism. This, in fact, is the crucial task of the Government: the production of collective goods. When the size of the public sector is tested against the standard then it must be concluded that the Government has pushed through too far: it concerns itself with matters best left to others, namely the market sector. From the side of the Government there is a high level of distrust concerning the operation of the market. Markets do not always function efficiently and effectively, but the solution is not for the Government to take over. The solution is to strengthen the operation of the market. It is fact that the Government is a large producer considering the great number of state-owned companies in almost all sectors. Entrepreneurs, in almost all large sectors, encounter the Government as a producer and competitor. This causes crowding out of particular investors who can often take these activities much better in hand. Sometimes subsidies are granted, which have a negative impact on competitive relations and the allocation of capital. Sometimes, this even prevents investments. An example is that of a Dutch farmer who wants to move his farm to Commewijne to breed dairy cattle and to produce milk. However, since the


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Government is subsidizing milk the cost-effectiveness of the project is negatively influenced. If the Government wants to subsidize milk, this should take place through subject subsidy. Another example is the SLM; should the production of pastry not be best left to bakeries? Is it necessary for Telesur to set up internet walk-inn’s? The conclusion is that many state-owned companies could be privatized. He does not advocate privatization of utility companies, because there are risks involved. Privatization of companies still owned by the state will create better opportunities for employees. If such a company is lifted to a higher level by a private investor this stimulates growth and more jobs could be created. PSR may bring about that the private sector can fulfill its role as the driving force of the economic development and the Government to act as a facilitator. A poorly operating Government constitutes a bottleneck for private sector development and creates economic instability due to the difficulty of financing the national budget in its current form. PSR can boost private sector activities, thereby tackling the bottlenecks at that moment. In the upcoming years, quite a growth has been projected by the IMF considering the investments in the mining sector. This may also create a need for skilled laborers. The strict regulations from the side of the Government by official procedures that are often outdated and non-transparent result in abuse of power, corruption and frustration on the side of the entrepreneurs. On top of privatization there is also a need for deregulation. This entails sizing down on many legislative, administrative and procedural rules established through the years causing obstacles in the field of establishment of businesses, production and export. We are on the right path with the implementation of the ATVL Program, the program for liberalizing agricultural and trade policies with the support of the IDB. But, much more needs to be done. Deregulation will result in the depletion of the Civil Service and the development of an entrepreneur-friendly attitude. Successful entrepreneurship is of great importance to the entire community. That is why entrepreneur-friendly behavior from the side of the Government is not an act of kindness, but an obligation of every responsible and caring Government. The conclusion is that a drastic change is required and that that may be accomplished through the PSR Program. His viewpoint is that it is in the interest of the public as well as the private sector. In which direction should we look to find a solution? A quote from Michael Gorbachov: “sometimes life kills you when you wait too long” may very well be valid for us, because continuing in the manner that we are does not render any perspectives; then life will kill us. A quote from the IMF report: “PSR aims at rationalizing the size of the Civil Service, correcting mismatches between personnel and need occupations and privatization will be crucial for achieving major term fiscal sustainability and reaching economic


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efficiency. Removing bureaucratic obstacles to investment is vital for the growth of the private, non-mining sector and employment generation”. In correcting the situation this model should be applied. The first step must be that we, in broad discussion, determine together what the job of the Government of Suriname should be. The Government should only concern itself with the production of collective and semi-collective goods. The Government must be transformed into an entity that operates efficiently in a depleted form and concerns itself only with the core duties. It means that the Civil Service must be strengthened qualitatively, which is necessary for producing high-quality collective goods and services. That is also the objective of a PSR Program. The operation of the market must be strengthened as well; the attitude towards markets and the operation of the market must be changed since there is too little trust in the functioning of markets. Furthermore, a new organizational model for the Government will have to be designed, with a new Personnel Act and a new Government Accounts Act. It is useful, from the beginning, to focus on an entirely efficient Government. Retraining will have to take place and refresher courses attended. The institutional strengthening of Ministries is very important, defining the minimal infrastructure that is needed for effective functioning, programs for retraining and refresher courses for people on the waiting list (people who cannot be placed immediately within the new structure). It is also important to promote a program for small businesses. People must be encouraged to undertake more. Some years ago, a social investment fund was established, a credit guarantee fund for small entrepreneurs who could approach banks with small projects to obtain credit to establish a business. It would be useful to breathe new life into this fund. Rules and regulations for dismissal should also be put in place. An IDB document holds the following statement: “sound reduction of the public sector can only be achieved if a national strategy for private sector development is put in place to allow the latter to absorb in time the access of personnel and activities currently managed by the Government. On the other hand, private sector development can only be achieved if a comprehensive public sector reform is developed”. This is a plea for a two-track policy, of a balanced and synchronized public and private sector modernization program. The private sector must, at this moment, undergo drastic changes as well. The rules and regulations with regard to WTO are significantly changing, also in view of the Caricom Single Market and FTAA that will considerably change the playing field of the Surinamese business community. In the private sector, too, a paradigm shift must take place. In the Suriname Business Forum cooperation is satisfactory and must be continued. Determining solution models must take place in broad discussion with civil servants, relevant unions, social groups, scholars, state authorities, the business community and the political field. There must be proper cooperation between the Government


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and the business community and a specific involvement of the business community by the Government in order to reach effective and practical solution models. The cooperation has not yet reached the required level but the business community is willing to think along and join in. After all, it stands to profit greatly from a well-devised and well-implemented PSR Program.


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A COMPUTER-BASED MODEL FOR INTEGRATED PLANNING Mr. Azad Hosein

Mr. Hosein is President of Microsearch International, a project management consultancy company that was established in Trinidad in 1992 and that provides consultancy services in project management throughout the Caribbean Region. He is former head of the Department of Management Studies at the University of the West Indies and visiting Associated Professor of Management of Florida Atlantic University. He has conducted over 60 executive training courses in Project Management in the Caribbean and has provided services to several Caribbean governments and private sector organizations in strengthening their institutional systems and capacity in project management. He is the author of the text titled “Strategies for improving the economic performance of development programs in the public sector”. It is estimated that development programs to a value in excess of US$ 3 billion are planned and implemented in Caricom Governments each year. In many cases however, the implementation performance in these programs is weak and the economic impact poor. The fundamental conclusion is that Caribbean Governments could improve their economic performance in development programs by strengthening the methods, standards and systems used in their Planning and Development Framework. This will provide for more efficient use of capital development funds and contribute to an acceleration of the pace of net economic development in the Caribbean Region. There are many governments in the region who, despite getting funding, achieve very little net economic development because their capacity to planning and development is very weak. The ultimate goal of public sector economic activity is to improve the standard of living and quality of life of the people of a country, in a dignified, equitable and economically sustainable manner. We have to look at long-term development based on two fundamental principles: standard of living and quality of life. In this presentation we will outline our general findings on the project management systems and performance in Caribbean Governments and are presenting recommendations for the design of an Integrated Project Management System, for use across the entire economic sector in a country. In that context, it also seeks to reinforce public/private sector partnerships in National Development and Implementation.


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The fundamental findings are: a. The process of national planning is based on a hybrid system between a

centralized and decentralized system. It lacks the necessary integration to promote ownership requirements that are necessary for effective product/service delivery and economic performance.

b. The technical analysis required for planning at the sector, program and

project levels, is either absent or not properly integrated. c. While, in some governments, mechanisms for consensus building are being

put in place, the process by which this shall happen is yet to be articulated, thus negatively influencing the outcomes of the delivery process or the identification of the strategic imperatives.

d. There is a need for integrating the Strategic Planning Process with the

Program Planning and Development Process to ensure consistency of objectives as we move forward through the phase in the Planning and Development Process.

e. In many governments, the mechanism for the preparation of the Public

Sector Investment Program (PSIP), namely Call Circular, does not provide adequate guidelines for the selection and preparation of projects and, hence, for the evaluation of this document.

f. The system for managing the database of projects in the PSIP is unable to

generate performance reports at the project, program, Ministry or sector level, whether on a monthly, quarterly, mid-term or annual basis, as tracking device for program monitoring and for management decision-making.

g. The methods, standards and systems used in managing the phases in the

Project Life Cycle either do not exist or are weak. h. The Project Financial Management System is weak or, in many cases, non-

existent. i. Bottlenecks in the Procurement Management System negatively impacts on

project implementation performance and weaknesses in this system contribute to compromises in transparency and objectivity in procurement.

j. The functional Project Management Organization used in most Governments

is not compatible with the structure required to manage the Project Life Cycle, and excludes collaboration with the private sector and civil society organizations.


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k. The Project Management Information Systems are either weak or non-existent, and do not facilitate integration of projects by program, Ministry, sector, funding, organization or sector.

l. The systems used for Monitoring and Evaluation are weak or non-existent. m. Quality Management and Change Management Systems are either weak or

non-existent. n. Operating Plans for economic use of project deliverables are seldom included

as part of the project/program plans. The fundamental recommendations are: 1. The networking model should be adopted and used as the basis for

communications among the major stakeholders in the National Planning and Development Process.

2. The four processes that must be linked and integrated in the networking

model are: the Ownership Process, Consensus/Feedback/Dissemination Process, Technical Process and the Decision-making Process.

3. The main programs for the critical actions that are necessary to achieve a new

organizational capacity are: Building Change and Consensus, Human Resource Development, establishment of an Information System and an Effective System of Delivery.

4. A computer-based model for guiding the National Planning Process should be

developed, with the capacity to forecast the impact of the National Budget on key economic indicators.

5. A public-private partnership for national development should be established,

whereby projects in a national development program may be deployed across Ministries and sectors, based on the capacity to perform recognizing that some types of projects may be more efficiently carried forward by the private sector or civil society organizations.

6. Formal methods and mechanisms should be established to decompose

National Development Strategies into associated programs and projects, with the capacity to deploy logically related projects across Ministries and sectors, based on the capacity to perform.

7. An electronic Standards and Procedures Manual should be developed to


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guide program/project personnel in managing all in the Project Life Cycle (based on the standards defined in PMBOK).

8. Electronic government-specified methods, standards and procedures for

development of the Public Sector Investment Program, Procurement Management and Project Financial Management should be developed and superimposed on the Project Cycle Management Database.

9. A PSIP database (i.e. of all projects in PSIP) will be combined with the Project

Cycle Management Database to create the Project Management Database. 10. Off-the-shelf software will be combined with this database to facilitate the

processes of Project-Formulation (Mind Manager), Project Planning and Monitoring and Program Evaluation (Balanced Score System) to create the Integrated Project Management System.

11. This system will be implemented on a cross-sector wide IT/Data

Communications Platform to facilitate countrywide access/support to the National Planning and Development Process.

12. In developing a Project Management Organization, a strong matrix

organization structure should be used. In this model, Program Planning, Program Monitoring and Program Evaluation should be centralized within the Ministry or organizational entity responsible for Planning. Likewise, Project Planning, Project Implementation and Project Monitoring should be decentralized within line ministries, private sector organizations and civil society organizations, to reinforce ownership of the projects by the organization components responsible for the performance of the projects. Project components of a larger National Development Program plan should be deployed across the three sectors, based on capacity to perform.

13. A formal Quality Management and Change Management Process should be

established to manage change and quality through all the phases in the planning and development process, including managing the start-up of operations, where required.

An Implementation Framework should be established, whereby those components of the framework that can make the earliest benefits to the performance of the organization (i.e. the Standards and Procedures Manual) should be implemented first, while the software development, implemented and start-up operations are conducted in later phases. What is Monitoring?


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Monitoring is a procedure for checking the effectiveness and efficiency in implementation of a project by identifying strengths and shortcomings and recommending corrective measures to optimize the intended outcomes. In the monitoring process we compare program/project execution performance against parameters defined in a baseline project plan, and take corrective actions, where necessary, in seeking to implement a program/project within the constraints of defined time, cost and quality parameters. Monitoring is normally conducted at the project level and the results are consolidated to provide monitoring information at the program level. Note that monitoring is conducted throughout all the phases in the project life cycle and covers all the Knowledge Areas identified in the Project Management Body of Knowledge (PMBOK) produced by the Project Management Institute. Monitoring is not necessarily limited to monitoring performance in project implementation. Types of Monitoring Monitoring is conducted in two major areas as follows: 1. The compliance test: i.e. determining whether and to what extent the members

of the project team have complied with defined project management policies, procedures, standards and controls in executing activities in each phase of the project life cycle. These may include policies, procedures, standards and controls that apply to activities in project initiation, planning, execution and closeout, including activities related to procurement management and financial management.

The specific project management policies, procedures, standards, controls, methods and forms which will be adopted and used uniformly across the organization, as a basis for planning, managing and monitoring all program/project development should be defined and documented in a Project Management Standards and Procedures Manual. An electronic version of this manual, with a user-friendly mechanism for navigating through the various components, will become part of a wider Project Monitoring and Evaluation System.

The design components of the Project Management Standards and Procedures Manual are depicted in the following chart: PHASES IN THE PROJECT LIFE CYCLE


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2. The Performance Test:

That is comparing the schedule for activity completion and their associated costs with the planned activity schedule and associated budget parameters defined in the project baseline plan. The Baseline Project Schedule and Budget is normally shown in a Gantt Chart and the comparison of actual performance against baseline plan is depicted in a Tracking Gantt Chart. Earned Value Analysis, which compares the Earned Value of Work Completed with the Planned Value as a basis for project monitoring, is derived from the performance data associated with the Tracking Gantt Chart. One should note that while Gantt Charts can be used to monitor performance in terms of schedule and cost, other methods must be employed to monitor the scope and quality of project deliverables.


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THE PROCES LEADING TO DEVELOPMENT OF A PROJECT MONITORING REPORT

It is important to recognize that the fundamental basis for monitoring project execution performance is the Project Baseline Plan. This implies that without a Project Management Standards and Procedures Manual and Project Baseline Plans, there is no fundamental basis for conducting Project Monitoring. What many organizations refer to as Project Monitoring is, in fact, limited to Project Coordination. It is also important to note that persons hired to meet responsibilities in Monitoring and Evaluation are unlikely to achieve the desired levels of performance, if the required institutional systems in Monitoring and Evaluation are not present.

The scope of a Monitoring System Monitoring is traditionally conducted at the level of individual projects. However, by consolidating several logically related projects into one project file, one can apply the same monitoring methods and principles at the Program Level. It is possible that the logically related projects, which are part of a program, may be deployed within the same Ministry, across different Ministries or even across different sectors, based on their institutional capacity to perform. For example, in a Health Sector Reform Program, the construction of hospitals and health centers may be executed by the Government, the establishment of ambulance systems and geographic positioning systems may be executed by the private sector and the establishment of facilities for palliative care and counseling of HIV/AIDS patients could be executed by the Church and NGO’s. In that context, a Monitoring System should have the capacity to monitor within Ministries, across Ministries or even across sectors, using a suitable sector-wide data communications platform. Benefits of Project Monitoring


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Monitoring provides the basis for minimizing or preventing schedule and cost overruns while ensuring that required quality standards are achieved in project implementation. The benefits of monitoring are that it:

- identifies flaws in the design and execution plan; - establishes whether the project is carried out according to plan; - continually reviews the project assumptions, thereby assessing the risks; - establishes the likelihood of output achievement as planned; - verifies that project outputs continue to support the project purpose; - identifies recurrent problems that need attention; - recommends changes to the project implementation plan; - helps identify solutions to problems; - identifies supplements to a project required to enhance its effectiveness; - provides a basis for projecting the completion schedule and costs based on - current performance; - supports the use of Earned Value Analysis; - identifies the situations necessary for activating contingency plans; - establishes links between the performance of operations in progress and

future needs and requirements; - provides performance information within projects, across complementary

projects, across programs, across Ministries and even across sectors. What is Program Evaluation? Evaluation involves the application of rigorous methods to assess the extent to which a development program has achieved its defined impact objectives. It is a process, which attempts to determine as systematically and objectively as possible, the relevance, effectiveness, efficiency and impact (both intentional and unintentional) of the program in the context of its stated objectives. To better explain why we have focused on monitoring - at the project level, but evaluation - at the program level, we will put these terms into proper context. A program is defined as a set of logically related projects, each with a unique purpose but all contributing to a common goal. For example, an education development program may include projects on school building, teacher training and psychological counseling. While each of these projects will have a unique purpose (in terms of what they deliver at the project completion), they all contribute to a common objective (in terms of, say, increasing the literacy rate among elementary age school children, in Tobago, from the current 75% to 95% by December 2005). In that context, while each of the projects may be seen as necessary, none of the projects, by themselves, will be sufficient for achievement of the program goal. This implies that, while we may monitor project execution performance for each project in


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the program, we need to evaluate impact at an aggregate level, i.e. at the program level. This does not imply that we cannot conduct some extent of evaluation at the project level. To better understand the project management terminology we will differentiate between Impact, Outcome and Output in terms of the logical levels of Goals, Purpose and Deliverables.

Project Goal: The ultimate reason for which the project was undertaken, normally denominated in terms of “Impact”.

Project Purpose: The direct impact expected to be achieved as a result of the outputs produced by this project, denominated in terms of “Outcome”.

Project Deliverables: Outputs produced as a result of the project execution. Steps in Program Evaluation There are three essential activities in Program Evaluation: a. Identifying and defining the attributes of the Baseline Indicators.

In the example above, we used literacy rate as an indicator of educational achievement at the elementary school level, and measured the current level of literacy (before commencement of the program) at 75%. This is a baseline indicator.

b. Defining the planned level of performance.

This is denominated in terms of a planned literacy rate of 95% by stated date. This implies that the success of the program will be measured by the extent to which it has achieved this level of literacy. This is an impact indicator.

c. Evaluating the performance of the program.

We must now state how we will measure performance, to determine the level of literacy achieved. This may require the conduct of a survey, some years after the completion of the program, when the impact of the program may be measurable. This process is known as evaluation.

Evaluation Methods Program Evaluation is conducted at two different levels, as follows: 1. Efficiency Test: Determining whether a program has achieved its intended goals,

and if not, why not.


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2. The Impact Test: Assessing the impact of a program, in terms of predefined

indicators, on the targeted stakeholders. Types of Evaluations Evaluations are conducted at several stages in the program life cycle, as follows:

- Ex-ante evaluation: will question the strategy used as the basis for a program and the research/theoretical foundation used as the basis for the strategy. In ex-ante evaluation, we will select and rank the various solutions from the standpoint of relevance, technical, financial and institutional feasibility, as well as socio-economic profitability. In ex-ante evaluation we are essentially assessing whether the program design and plan are consistent with expected performance, before commencing the implementation.

- Mid-term evaluation: seeks to determine, based on an analysis of the deliverables of the program, at its mid-point, whether the program is likely to achieve its stated objectives. On this basis, major changes may be made to the program or the program may be aborted.

- Ex-poste evaluation: is conducted sometime after the program is completed, when the expected impact is likely to be measurable. Its purpose is to study the impact of the program, using defined performance indicators, and to draw conclusions for similar interventions in the future (lessons learned).

Evaluation Frameworks Three basic evaluation frameworks are used by the Inter-American Development Bank in evaluation-related activities, as follows:

- The logical framework and benchmark/indicator guidelines, introduced at the project preparation (or design) stage.

- A framework incorporating the concepts of continued rationale, efficiency, effectiveness, effects and lessons learned, which is used during implementation/completion and after the completion stages for ex-post evaluations, and

- A framework featuring areas of summative evaluation (strategy, policy, program, design, monitoring and execution, procedures, performance, sustainability) used in the ex-poste stage for impact evaluation.

The balanced scorecard system provides a good computer-based model for conducting program evaluation. These evaluation functions become less complex to execute if, at the ex-ante design and execution monitoring levels, appropriate benchmark/indicators and data collection/reporting are generated. Participation by all stakeholders is important to ensure this.


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In that context, if the evaluation process is to contribute to performance, it must ensure stakeholders that it is impartial, credible, useful, participatory, provides feedback and is cost-beneficial. Scope of Evaluations It should be noted that strategic plans may be decomposed into a number of logically related programs. In that context the program development and performance parameters are normally defined in the strategic plans. In like manner, programs may be decomposed into a number of logically related sub-programs and/or projects. It that context, the development and performance parameters for the individual projects are defined in the program plan. This implies that an evaluation system should have the capacity to evaluate performance within a project, within a program and across logically related programs, even if components of the program may be implemented in different Ministries or sectors. Benefits of Program Evaluation • improve the economic performance of new and ongoing programs; • choose among various development alternatives; • learn about best practices in a given field; • determine the extent to which the project justification was achieved; • enhance the sustainability of the program deliverables; • make decisions on the identification and implementation of supplementary and

complementary programs. The National Development Plan


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The key activities for an Action Plan in each strategic area are as follows:

Strategic Areas Key Activities for Action Programs

Building Change and Consensus • National Forum • Transparency in decision-making • Required feedback system

Human Resource Development • Training • Management of Project Life Cycle • Project Data Bank

Establishment of an Information System • Executive Information System • Performance Monitoring System • Public Dissemination Process

Effective System of Delivery • Special high priority, early delivery programs

• Individual Project Implementation Plan

• Mobilization of Community and non-governmental resources

The National Planning Process


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Components of an Electronic Standards and Procedures Manual

The use of this manual provides a basis for: • adoption and use of uniform standards and procedures at each phase of the

project life cycle • e-training of project personnel across all sectors • monitoring compliance with defined processes and controls • improving communications among personnel involved in the planning and

development process


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The Planning and Development Responsibility Framework

Project Cycle Management Database


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It will be used to facilitate the adoption and use of standardized methods, procedures, controls and associated forms and to reinforce the use of these standards across all the Ministries in a Caribbean government. In particular, the use of the project cycle management database will provide a basis for monitoring compliance with approved standards, procedures and controls in carrying activities in each of the phases of the project life cycle. Procurement Planning

We have no doubt that the Roadmap is well-designed, but traveling the road may be more difficult than we intended; it is a tough road to travel, but it is a good thing to start.


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QUESTIONS Mw. Khodabaks-Hasnoe: Our Government is now facing a period of privatizing some markets for individual goods (rice, banana). It would be valuable for us if Mr. Hosein could give us a framework how to tackle the problem of privatization. Mr. Bousaid said that a government can give preference to not privatizing the markets for collective goods, but start with the privatization of individual goods. Mr. Hosein: The Government has no business in getting into activities of a commercial nature, unless it is to protect the common good of the people. In some kinds of activities the Government will become involved, e.g. the distribution of water in order to protect the interest of the people. In seeking to privatize the Government has to ensure that the private sector does not get the opportunity to engage in unscrupulous practices to take advantage of people. The essence of keeping activities to the private sector is to let the market system work, let the forces of demand and supply provide for a balance in price. A government will privatize in order to bring in additional skills, or increase markets. In rice production the Government may take part in the system in such a way that they will collect rice from various sources to a market externally because the individual farmers may not have the capacity to market externally. There certainly is a role for the private sector to drive the system. In any program you may find projects in the program that are most efficiently carried forward by the private sector. Mrs. Khodabaks-Hasnoe: Mr. Bousaid talked about the Investment Act and it turns out that the last version is such that it would not be wise to pass it, because it would be suicide for entrepreneurs; what is the view of the IDB in this matter? Mr. Boussaid: He mentioned the Investment Act in the context of macro-economic instability as a consequence of the situation in the field of the Government finances at this moment. Due to the size of the public sector there is a problem of funding; it cannot be funded in a healthy manner. In the past years, it has been financed by increasing tax, and still, there were great deficits that were monetary financed. This has led to economic instability. He said that this process must be discontinued and that PSR is an important condition therefor. Furthermore, he stated that in such a situation a healthy investment climate could be created, which is much more important than proper investment legislation. If there are healthy economic relations and an entrepreneur discovers a hole in the market, he will jump at it, regardless if there are incentives from an Investment Act. Not too long ago, there was a large seminar in response to the report issued by the FIAS; this report is fairly severe and concludes that the Act, in its current form, will not have the proper effect and that the philosophy behind it will not work well in practice. It is mainly a fiscal report and not many businesses will benefit from it much. Mr. Rodriguez: In future, he would like a summary in the Dutch language.


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SUMMARY

Mr. A. Hardien The Vice-President, in his opening statement impressed upon us the need for public sector reform as a condition for socio-economic development in our country. He mentioned the establishment of the Steering Committee PSR by the President and the establishment of the Technical Committee PSR by the Vice-President. Emphasis was placed on the term ‘partners in reform’, meaning that those parties that reform must also be willing to be reformed. Mr. MADAVO indicated the importance of strategic planning as well as the management aspects for carrying out activities with regard to PSR. Mr. TJONG-AHIN of the IDB explained the Roadmap for PSR, public management strengthening and highlighted the following components within that Roadmap, namely: civil service management, civil registry and public sector procurement. Mr. OOFT of the UNDP emphasized the contribution of the UNDP in support of the PSR process in Suriname and the technical and financial assistance available from the UNDP. Mr. MISKIN of the CLO presented the train of thought from the side of the Labor Union, namely the CLO, and said that there should be more openness about PSR, in particular towards the Labor Unions. Mr. BOUSAID, as representative of the VSB and on behalf of the private sector, stated that the Government should concern itself more with the production of collective goods. He emphasized the core duties to which a Government should limit itself, and those it can give up should be given up. Many state-owned companies can be released from the care of the Government and there is a need for a new organizational model for the Government. Mr. HOSEIN presented an explanation of the core thoughts on project management, development planning processes, focusing on economic performance of development programs, the stages and the importance of project life cycle management and the aspects involved. Furthermore, aspects were highlighted from strategic planning to program planning to finally reach project planning. He presented the technical aspect in planning and management.

CLOSING Mr. Hardien


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This seminar has given an impetus for more consensus building and performance enhancement. The continuation requires our effort, creativity and dedication. Thank you all for your participation in the first day of this seminar.


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Report

NATIONAL SEMINAR ON A STRATEGIC FRAMEWORK FOR GOVERNANCE:

“Towards Consensus Building and Performance Enhancement for Public Sector Reform”

DAY 2 October 23, 2003


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WORDS OF WELCOME Mr. Hardien

On behalf of the Ministry of Home Affairs and CARICAD I welcome you all on the second day of the seminar. As was mentioned yesterday, today we come together in a different setting, namely in the setting of workgroups. There are five workgroups, namely: 1. Reorganization of the Civil Service 2. Strengthening of the institutional capacity for planning and financing 3. Development of the private sector 4. Rationalization of state-owned companies 5. Decentralization of Districts Considering the importance of the workgroups and keeping in mind the theme of the seminar, it is advisable to brainstorm together, have discussions and exchange ideas. Today, there is plenty of time for that. You will also be given the opportunity to illustrate your viewpoints. Let us all try, through joining our knowledge, experience and creativity, to come to a workable product. A product that, as the PSR process progresses, will become increasingly visible. The result of the findings of the workgroups will show whether there is a need for a follow-up seminar for awareness building, or whether more workshops or training courses should be organized. Working method Workgroups Each workgroup will have a facilitator and must appoint its own Chair and reporter. ‘Commuting’ between workgroups is allowed.


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REPORTS OF THE WORKGROUPS WORKGROUP 1: Rationalization of the Civil Service Facilitator: Mr. Jhauw Reporter: Hr. Barron Members: Ms. Bakker (Home Affairs), Mr. Chotkan (Home Affairs), Mr. Jhauw (Home Affairs); Ms. File (Justice & Police); Mr. Jewbali (Agriculture, Animal Husbandry and Fisheries), Ms. Blokland (CLO), Mr. Ment (PWO), Mr. Barron (Natural Resources), Mr. Bottse (Natural Resources), Ms. Ramdas (Public Works) and Ms. Tong Sang (Agriculture, Animal Husbandry and Fisheries). Starting points for the discussion: 1. Departing from the current situation, where do we want to go with the

reorganization of the Civil Service? 2. How should this approach be devised? The following vision has been formulated: Departing from the current situation we want to go towards an organization that is effective and efficient with an improved ‘civil servant performance’. This entails motivated, disciplined, specialized or professional civil servants, minimum Government spending, optimal ‘service delivery’ and ‘good governance’ with a properly functioning Trias Politica as a result of an increased democratic awareness of the people. Approach: • Integral and active approach in eliminating barriers that prevent the Civil Service

from functioning properly.

• Focus on people, making better use of the Personnel Act. In this regard, it is desirable that some rules arising therefrom are reactivated or adjusted to modern times.

Recommendations: • All stakeholders must be involved in the PSR process • Strict and consistent implementation of disciplinary measures • Proper educational structures (awareness building) • Evaluation and adjustment of the remuneration and remuneration structures,

because this does not take place anymore according to the statutory rules and regulations

• Maximum utilization of the current HRM capacities


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• Career counseling in the shape of research, education, higher education, increase of process expertise

• Optimal organizational and en management methods • Consultation structures with stakeholders • Eliminating improper tasks to filter out core duties • Making all relevant parties, form the side of the employer as well as from the side

of the employee, aware of the individual and collective responsibilities • Further implement a consistent and well-considered policy on social security • Counseling for civil servants to support the development process that the

Government is undertaking (‘change management’) • An effective information management • Automation of departments for accelerated and optimal service • Pursuing improved physical facilities (accommodation and logistics) WORKGROUP 2: Strengthening of the institutional capacity for planning and financing Facilitators: Ms. Maks and Ms. Relyveld Reporter: Gladys Relyveld (Ministry of Planning and Development Cooperation) Members: Mr. Pinas (Education), Mr. Rodjan (Home Affairs), Ms. Setrodjemino (NGO Forum), Mr. Misiekaba (NGO Forum) Starting points for the discussion: 1. Departing from the current situation, how can we strengthen the institutional

capacity for planning and financing? 2. How should this approach take place? Strengthening the institutional capacity for planning and financing is part of the five stages that should be undertaken; a preparatory stage is ready and the Ministry of Planning and Development Cooperation, being the pioneer in this regard, has prepared a project proposal to get this underway.


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BOTTLENECKS STRATEGIES On all levels (macro, meso and micro) there is a lack of a common long-term vision making planning ‘donor driven’.

‘Awareness’ and ‘consensus building’: census with data collection

Lack of policy documents Preparing policy documents

Poorly defined division of tasks; there is overlapping and a study should be made as to what should be eliminated and what belongs where

Reformulation of the job description of the Ministries focusing on the core duties, such as planning and policy formulation

No or poor coordination and communication in planning and development financing

Standard procedures must be put in place and consultation with relevant parties structured

Outdated planning legislation, e.g. the non-functioning Planning Council and the non-operative Planning Ordinance, is not in operation

Take inventory, amend and implement the Planning legislation

Limited and insufficient planning capacity in Ministries

Developing the National Planning mechanism; this means the Government, NGO’s, Business Forum, etc.

Inadequate databases for planning, monitoring and evaluation

Strengthening and/or establishing institutes charged with the development and management of systematic databases

The policy intentions and budgeting are not geared to one another

Prepare a plan of activities and derive therefrom a priority list

The Government does not pursue an income generating policy

• The earning capacity of the Government must be increased

• Implement a policy in conformity with the market

WORKGROUP 3: Private Sector Development Facilitators: Mr. Sabajo and Ms. Kantam Reporter: Joan van Ommeren (Chamber of Commerce and Industry) Members: Ms. Felter, Ms. Kantam, Mr. Hek, Mr. Spong (Chair); Ms. Eersel, Mr. Rodriguez. Starting points for the discussion: • In what way can the private sector contribute to public sector reform? The group has formulated a second question, namely:

What can the Government do for the private sector?

• A one-stop-shop could be established for entrepreneurs enabling them to turn to one central authority for information on legislation, rules and regulations,


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training, etc. The running back and forth would be brought back to a minimum. The one-stop-shop could arrange documents (licenses, and such) for the entrepreneurs. Furthermore, it should provide technical information.

• The existing rules and regulations for entrepreneurs should be:

- investigated - modernized - simplified as much as possible for the entrepreneur - harmonized

• The Government could create or make available loans for entrepreneurs on

favorable conditions. • The Government, through embassies and consulates, could search for markets

abroad for entrepreneurs and, also, for the benefit of promoting the Surinamese products.

• There should be more information on redundancy schemes of civil servants who

want to leave the Civil Service in order to start a business. • Via the Business Forum the Government could obtain further information on

what issues are important to entrepreneurs. In what way can the private sector contribute to PSR: • The private sector could create jobs, although, the Government must improve the

investment climate. • The private sector could, temporarily, make available managers to the

Government in analogy of the PUM project, whereby foreign managers were brought to Suriname to provide training courses. The Government could select managers from our own business community to provide structured training courses for the benefit of civil servants.

• The business community could take over sub-duties from the Government, such

as embellishing the city. The Government, through commitment, could give the business community the opportunity to adopt part of the city and to maintain it.

WORKGROUP 4: Rationalization of state-owned companies Facilitator: Mr. Hermans (Ministry of Finance) Reporter: Mr. Parabirsingh (Ministry of Defense) Members: Mr. Ligeon (Ministry of Defense)


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Starting points for the discussion: 1. What is the vision with regard to the rationalization of state-owned companies? 2. Do all state-owned companies have to be rationalized or should the Government

have influence in some companies (such as the utility companies)? It is important to pause at the issue of what the duties of the Government are. The following division was made: • Planning Bureau (close to Government duty) • Telesur, State Oil Company, etc. (far from Government duty) A well-considered decision should be taken with regard to companies with a dual task, namely the Energy Company Suriname (EBS), the Maritime Authority Suriname (MAS) and the Suriname Water Supply Company (SWM). The question whether or not it is a task of the Government will have to be answered by the political leaders. Often, they make their decisions based on other principles, such as in the case of the SML where it will probably be more a matter of holding on to seats in the Government. How will this be handled? It will be different for each company. Regardless of the issue of whether or not to privatize, it is already clear that it is not easy to obtain the correct data from semi-governmental companies. The Ministry of Finance does not dispose of all information on those companies, which is a great obstacle on the road to a proper policy on privatization. Furthermore, there is no proper legislation in the field of privatization. Legislation on subsidies is required as well as legislation in the field of annual accounts. This will bring about consistency and transparency. Matters may be better considered, such as the comparison of salaries between those of semi-governmental companies and those of the Civil Service, and well-considered decisions made on this basis. Prior to privatization other measures should be taken to provide more insight in the operation of those companies. WORKGROUP 5: Decentralization of Districts Reporter/Facilitator: Mr. B. Ahmadali (Ministry of Regional Development) Members: Mr. Soetodirjo (Ministry of Social Affairs and Public Housing), Mr. Wesenhagen (NGO Forum), Ms. Hasnoe (ADEK University), Mr. van Varseveld (Ministry of Regional Development) Starting points for the discussion: 1. What is the vision on decentralization?


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2. Are there pros and/or cons? 3. Will decentralization benefit the process of decision-making? The Government knows that decentralization is a ‘must’ and every day that this does not happen this is a violation of the Constitution wherein is provided that Suriname is a decentralized state; this has been the case only on paper. The Government is aware of the international aspects in this matter and also knows that the democracy can be strengthened through the decentralization program in its current form, which is being implemented at this moment. A decentralization program is pre-eminently the program to strengthen democracy. But which democracy? The democracy of the Trias Politica that has no answer to so may issues, especially in developing countries? Or the democracy that responds to issues of eradication of poverty, increase of economic growth, protection of human rights, ‘good governance’. A democracy that leads to prosperity and wellbeing, to all good things for the people. A democracy that enables us to make better use of our natural resources to generate finances to conduct our own business. The vision of the Government as to the appearance of the districts after the realization of such a program is the following: • a district that will undertake its own initiatives; • a self-supporting district with its own economy (not all tasks), with its own budget

and income generating powers that they do not have at present. This means that they will become, by law, independent with regard to budgetary and financial management;

• a district with a more efficient and transparent administration; • more effective participation of the people in decision-making on local level; • a district with its own rules and regulations; • more extensive and more efficient delivery of services towards the community; • an effective representation of the people in representative bodies on district level; • guaranteed sustainability of decentralization. In short, a district machinery that is strong enough to carry out its own development programs aimed at improving the living, working and production conditions of the people of the district; a strong ‘local government’ that must be able to assist the central Government in realizing programs coming from the Government itself. The pros and cons. Are there pros and cons? A better question would be: what are the chances of and threats to this program? With regard to the threats, it should be pondered whether there is awareness of the political will to transfer powers. The central Government, local government and private sector are peppered with weaknesses when it comes to ‘local government’: the vastness of the area, the unfamiliarity of the people with the phenomenon of shared


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autonomy, working on a project basis with a duration of three years in which it must be realized. Except for a vision, projects must be worked out on the basis of work plans, time frames, etc. The project has a beginning and an ending, it is carried out systematically with limited means and financing is sought out; IDB projects require 30% as counterpart contribution from the national budget. What measures should be taken to control the above? The Government says that there must be a limited autonomy, limited to their own economy. All tasks of Ministries with regard to districts will, in this stage, remain the same and, gradually, as the district is strengthened the tasks and powers will be transferred. Matters should be carried out in stages and a ‘pilot’ for five districts will be carried out. Of those five districts two will be further developed and, possibly, one may remain of which the model applied thereto may be the model that should be applied to the other districts. The districts are Nickerie, Wanica, Para, Commewijne and Marowijne. At the moment, pilot activities are ongoing in Wanica and Para. There are districts that can only be decentralized after being studied, such as Paramaribo (complex), Sipaliwini (even more complex). Capacity building must take place in such a manner that, during the process of decentralization, strengthening also takes place. This will be valid for the Ministries of Regional Development and Finance. The Ministry of Regional Development will then fulfill a new role in the relation central Government-local government since certain departments will be strengthened. The strategic document must be prepared and a SWOT analysis made. Capacity building on district level entails investment in management, in the adjustment of office administration, equipment, training. Investments should also be made in the private sector, where we encounter ‘local service providers’. If there are none, they must be recruited, certified and registered in a databank enabling them to secure contracts via the District Commissioner’s Office for rendering services to the community. Does decentralization promote decision-making? The District Commissioner has a great number of duties and powers and derives his power from various laws and statutory regulations. Also, he is the extension of the central Government and, therefore, he is in a position of power to do a lot with this machinery on his own. Despite decentralization in accordance with the organic law on Regional Authorities, not much has changed in practice. This program is intended to alter that. Decisions will be made based on legislation, statutory regulations, guidelines, rules and local legislation. This means that the districts will use models in which they will lay down


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their decisions. The highest is the District Ordinance and for the implementation thereof are the District Decrees and then the District Resolutions to hold their decisions. What is striking is the division of powers and tasks among various authorities; what is concentrated with the Commissioner is deconcentrated horizontally and vertically. What needs strengthening? The Commissioner who is the extension and representative of the central Government, or the District council that, in fact, also represents the Government? Or should the District Administration consist of a cluster of members from the District Council with a portfolio of responsibilities? The program was also based on a District Council introducing a technical figure, such as the District Administrator. The condition for formulating and making decisions, and recording and implementing them is that they should get maximum support. This is the objective of the decentralization program: the participation of the people on ‘grass-root’ level, whereby the organized people participate, together with the Government, civil servants, and the private sector in the administrative area, causing ‘demand driven’ matters to be discussed and being decided on. A model has been worked out that will penetrate the smallest cells of society where there are administrative area councils, NGO’s, private sector and civil servants, who will jointly decide on which works should be carried out, the planning and budget, and its approval. An unusual rule that has already taken effect and is unique in the temporary arrangement on financial decentralization is the rule that the District Council cannot adopt the district budget before public hearings have been conducted in the various administrative areas of the district. In order for matters not to go awry, many manuals and regulations must be worked out. Another new aspect is that, by Ordinance, the district can arrange for the local government and the people of the district to discuss and arrange that certain work is carried out at the expense of the people. The moment the contract is concluded, this has become a tax and may be collected through levy, with which the work can be carried out. DISCUSSION Ms. G. Relyveld: Mr. Ahmadali was talking about district plans; where are they in the scheme of things? Mr. Ahmadali: In the Act on Regional Development. Provisions have already been put in place but have not yet been implemented in practice. In cooperation with the central Government the planning of administrative areas will be provided for and ordered again.


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Ms. Relyveld: Is that the case in the start-up stage or will the councils first be strengthened, or will those two be carried out simultaneously? Mr. Ahmadali: It is included in the program, while decentralization is in progress, capacity building is taken in hand. Procedures will be worked out so that those can be incorporated when legislation is amended. Ms. Relyveld: If a district plan is made, then there must be a vision on what the goals are with regard to the district. Is there such a vision? Mr. Ahmadali: Every district will have its own strategic plan based on the plans for administrative areas that will be prepared and worked out in cooperation with the people. Then the budget comes into play, which must fit in with the national planning and what parts of the MOP ended up in the DOP (district development plan); that is provided for. The project team is not going to work this out alone, there are local and international experts involved as well as stakeholders. When the moment is there, the Ministry of Planning and Development Cooperation will become involved. There is a Ministry of Regional Development, but the regional planning authority does not exist yet. That may, probably, be found at the Ministry of Planning and Development Cooperation. Mr. Wesenhagen: What are the thoughts on the development of a Code of Conduct for civil servants? Recently, the oath for civil servants has been re-introduced and it was said that this was to stimulate them to work according to ethical standards. The advantage of a Code of Conduct is that it is made public. The public knows exactly where the civil servant goes wrong and the civil servant knows exactly what is expected of him. There was mention of a one-stop-stop and the question is if it should be run by the Government per se, or could this be done privately, whereby services are paid for. Furthermore, other services than licenses alone could be provided. It was also mentioned that embassies should be involved in the promotion of the Surinamese trade. Would it not be better to appoint trade attaches on the relevant embassies, who will have the duty to promote the Surinamese product instead of putting bottles in a window display? Mr. Jhauw (Home Affairs): At the most recent oath ceremony the Permanent Secretary for Home Affairs stated that civil servants are expected to give their best efforts and to act in accordance with the Personnel Act and other statutory regulations. The Personnel Act provides for the obligations of civil servants. The viewpoint of the Ministry of Home Affairs is that these provisions should be observed, including moral, ethical standards and standards of common decency.


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Mr. Wesenhagen: The Code of Conduct goes somewhat farther. It explains what is exactly expected from a civil servant in the performance of his job, not only with regard to ethics but also with regard to his actions. People making use of those public services will also know what the civil servant may be held accountable for. Mr. Jhauw: There is room for supplementation. Mr. Barron: In the report of Workgroup 1 a general opinion has been expressed, but discussions were held in detail, also about the Personnel Act. Matters, such as confidentiality, improper behavior, etc. are provided for in the Personnel Act. Disciplinary measures are also indicated concerning the non-observance of one’s obligations. Mr. Wesenhagen: The Personnel Act is internal, as a citizen he does not know what it entails. A Code of Conduct is a public document. Mr. Spong: The issue of the one-stop-shop was mentioned with regard to what the Government can do to facilitate the private sector, and in this respect, it was said that is could be run by the Government. This does not mean it should be the Government per se. The location could be the Chamber of Commerce and Industry that is already accessible to entrepreneurs. But it is not an issue of principle that it should be Government-run. With regard to trade attaches, this was not mentioned. It is his personal opinion that it would be a good idea if a trade attaché brings more business to the country than the money the country spends on him. Mr. Wesenhagen: The trade attaché should not be a diplomat, but someone who is trade-conscious. The expenses for such a person can be recovered from the business brought in. Mr. Ahmadali: The national information center has been included in the decentralization program. This center must provide the nation with information about the district and services that are provided by the local government. Mr. Ment (PWO): Seminars and conferences are held and when they have been concluded, we never hear anything about them again. How will this seminar be interpreted, will there be a follow-up and will the participants receive information on this seminar? Mr. Hardien: The results of this seminar will be made public. The results should indicate whether there is need for follow-up seminars, workshops or training courses. After the preparation of the official report this will be handed to the participants.


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Ms. Bakker: With regard to the establishment of a one-stop-shop she wonders if that is not a task for the Chamber of Commerce and Industry. Ms. van Ommeren: The Chamber of Commerce and Industry, in any case, provides information on licenses but these are not issued by the Chamber. The intention of the one-stop-shop is that it is a central authority where all business can be completed. Ms. Relyveld: With regard to the decentralization she wonders about the policy on the granting of land. Mr. Ahmadali: The program of decentralization is implemented in stages. As the districts become more capable, more duties and powers of the central Government will be assigned to them. In the transitory stage he does not foresee the local government granting land, although it is the intention to transfer limited powers to the districts with regard to the granting of land. This issue is being considered with respect to the amendment of legislation; the moment of assigning those powers will depend on the capacity of the districts.

SUMMARY Mr. A. Hardien

Workgroup 1 on the reorganization of the Civil Service indicated the following: • Efforts should be aimed at improving the Civil Service policy • Government spending should be minimalized • Optimal service is desirable • Efforts should be directed towards achieving good governance • Efforts should be directed towards an integral and active approach of the barriers,

in planning as well as in execution • The focus should be on people (human resources) • The Personnel Act must be amended to suit modern times • All stakeholders should be involved in the process • Strict disciplinary measures should be applied • More information should be provided • Current human resources capacity should be fully utilized • The process expertise of civil servants should be expanded • Consultation structures should be established • Improper duties should be discarded and core duties focused on • Individual and collective responsibility must be promoted • Public services must be automated • Civil servants must receive counseling in the development process of the civil


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servants themselves • Logistics and accommodations must be adjusted Workgroup 2 on the institutional strengthening and financial capacity identified the following bottlenecks:

• Lack of a long-term planning vision on all levels • Lack of a policy document • Duties are not properly defined • Poor coordination in planning • Outdated legislation • limited/poor planning capacity in Ministries • inadequate databases for planning • policy intentions and execution are not tuned into one another

Recommendations: • awareness and consensus building • prepare policy document • duties of Ministries must be reformulated in order to avoid overlapping • establish structured consultation • prepare priority lists • introduce planning regulations • Government should pursue a policy in conformity with the market Workgroup 3 on private sector development recommends the following: • Establishment of a one-stop-shop for entrepreneurs with a multifunctional

character • Review and modernization of legislation for entrepreneurs • Government should provide for favorable loans for entrepreneurs • Greater supply of information regarding redundancy schemes • Improvement of the investment climate by the Government • The sub-duties of the Government should be defined Workgroup 4 on the rationalization of state-owned companies: • When state-owned companies are rationalized, one should be aware of how to

direct the rationalization and, if rationalization is applied, data should be available from the side of the companies for the benefit of this rationalization

• An Act on Annual Accounts should be introduced • More insight should be provided into the operation of the state-owned companies


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Workgroup 5 on the decentralization of the districts: It has been indicated that decentralization is a ‘must’, because this is clearly provided for in the Constitution. Decentralization entails and guarantees democracy. The workgroup did not provide any recommendations as such since the project is in progress. The effects of decentralization, however, were emphasized: the district can dispose of its own budget and powers. Also, more transparency and more intensive decision-making may be expected. As a result, an effective representation may be expected in the representative authorities. Through strengthening a ‘local government’ it can assist the central Government in the implementation of its programs. The threats that are being observed are the political will for implementation, political will to transfer powers, the weakness of the Government and private sector, the unfamiliarity of people with the term autonomy. A proposal is put forward to carry out this decentralization project in stages (pilots). Furthermore, efforts should be directed towards capacity building through training and emphasis should be put on intensified involvement of citizens analogous to the ‘grass roots’ model. The conclusions of the five workgroups are as follows: • There is a need for structured consultation • There is a need for a greater supply of information • Amendment, modernization and harmonization of legislation is an urgent

requirement • The reformulation of duties must be taken in hand as quickly as possible • More emphasis on individual and collective responsibilities, thereby fully utilizing

the available ‘human resources’ • Efforts should be directed towards eliminating the barriers in planning and

execution • The issue of insufficient data and statistics must be dealt with • Priority lists with activity plans must be prepared • The development of the private sector must take place simultaneously with the

development of the public sector • Poor capacity must be tackled and efforts devoted to capacity building on all levels These recommendations will be considered in the final report, which will be presented to the Government and it is the hope that the Government will express its opinions in this matter in the very near future.


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CLOSING REMARKS Mr. A. Hardien on behalf of the Minister for Home Affairs

In accomplishing the goals of this seminar the first impulse has been given towards ‘awareness building’. A foundation has been laid for a successful progress of the process of public sector reform. The fact that public sector reform is not an easy process is acknowledged; however, this does not prevent us, and the Government of Suriname in particular, from pursuing this further. Much effort has been demanded from you and you have met this demand in a superb manner. The implementation of PSR is wholly dependent on the presence of effective mechanisms for joint decision-making, in which all parties and stakeholders are involved and all parties observe agreements made so that the process of reorganization may be carried out in a smooth manner. With PSR Suriname has taken a step on the road to an accelerated and sound development for every person in this country. I express thanks to everyone who contributed in one way or another to the realization of the goals and expectations of the “National seminar on strategic framework for governance: towards consensus building and performance enhancement for PSR”. I emphasize ‘that we are working towards consensus, we are on the road for PSR and we will reform the public sector”. On behalf of the Ministry of Home Affairs and CARICAD I thank you and, on behalf of the Minister, I hereby close this seminar.


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LIST OF PARTICIPANTS

NAME ORGANIZATION Oct.22,03 Oct.23,03

Ahmadali, B. Mr. Regional Development - X

Bakker, M. Ms. Home Affairs X X

Barron, A. Mr. Natural Resources X X

Blokland, J. Ms. CLO X X

Bottse, M. Ms. Natural Resources X X

Bousaid, J. Mr. VSB X -

Chotkan, V. Mr. Home Affairs X X

Doelwijt, J. VJS X -

Eersel, C. Ms. Labor, Technological Development and Environment

X X

Felter-Modiwirjo, J. Ms. Social Affairs and Public Housing

X X

File, I. Ms. Justice & Police X X

Hardien, A. Mr. Home Affairs X X

Hek, R. Mr. OSAV X X

Hermans, J. Mr. Finance X X

Hieralal, M. ADEK Student Committee X -

Jewbali, A. Mr. Agriculture, Animal

Husbandry and Fisheries

X X

Jhauw, S. Mr. Home Affairs - X

Kantam, I. Ms. Trade and Industry X X

Kehri-Ramdas, P. Ms. Public Works X X

Kensmil, H. Mr. Cabinet of the Vice-President X -

Khodabaks-Hasnoe, R. ADEK professor X X

Ligeon, W. Mr. Defense X X


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Loembang Tobing-Klein, I. Ms.

X -

Lolkema, H. Mr. Embassy of the Netherlands X -

Maks, M. Ms. Planning and Development Cooperation

X X

Ment, M. Mr. PWO X X

Misiekaba, A. Mr. NGO-Forum - X

Miskin, M. CLO X

Olieberg, I. Mr. ADEK Student Committee X -

Ommeren van, J. Ms. Chamber of Commerce & Industry

X X

Ooft, M. Mr. UNDP X -

Parabirsing, M. Mr. Defense X X

Pinas, H. Mr. Education X X

Ramadhin, A. Mr. Home Affairs X X

Relyveld, G. Ms. Planning and Development Cooperation

X X

Rodjan, I. Mr. Home Affairs X X

Rodriques, G. Mr. FAL X X

Rostam, P. Mr. Finance - -

Sabajo, E. Mr. Trade and Industry X -

Sabajo, M. Ms. Home Affairs X X

San A Jong, I. Mr. UNDP X -

Setrodjemino, S. Ms. NGO-Forum X X

Sexstone, D. Mr. EU/EC X -

Silent, T. Ms. Public Health X -

Sitaram, N. Ms. Home Affairs X X



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Soekhlal, D. Mr. Public Works X -

Soetodirjo, C. Mr. Social Affairs and Public Housing

X X

Spong, O. Mr. Cabinet of the President X X

Tjong-Ahin, S. Mr. IDB X -

Tong Sang-Rampersad, T. Ms.

Agriculture, Animal Husbandry and Fisheries

X X

Varsseveld, L. Mr. Regional Development X X

Waagmeester, N. Mr. VSB X -

Wesenhagen, H. Mr. NGO-Forum X X

Report of the National Seminar on a Strategicunpan1.un.org/intradoc/groups/public/documents/caricad/unpan015856.pdf · Report: National Seminar on a Strategic Framework for Governance

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