South East Europe 2020: Jobs and Prosperity in a European Perspective

South East Europe 2020:Jobs and Prosperity in a European PerspectiveSeptember 2013

Evolving role of the Regional Cooperation Council• As a new, regionally owned organisation the RCC represents the region,

supports and initiates regional cooperation - 13 SEE beneficiaries • The RCC operates under the political umbrella of the South East Europe

Cooperation Process (SEECP). Its objectives, working methods and priority areas for action are defined by the Statute and other documents adopted at Annual Meetings and endorsed by SEECP Summits.

• As the main focal point for regional cooperation, the RCC:a. has a key role in supporting economic

and social development and related reforms;

b. promotes the region’s European and Euro-Atlantic integration of which regional cooperation is an essential part;

c. links the region with donor community in areas with a regional dimension

Rationale for SEE 2020

?

1. Preparations for future membership suggest that the Europe 2020 policy goals and implementation methods are pertinent to enlargement countries, with a strong need to adjust the strategy to region’s needs, making it more realistic and credible

2. Help anchor reform efforts into an overarching growth and development agenda and refocus on growth and competitiveness

3. Introduce greater coherence and coordination into the regional cooperation framework

SEE 2020 materialized as a response to Europe 2020, as the region was left out of the main European growth framework:

Ministries of economy – Main Catalyst

Regional vision-building efforts channeled through SEE Investment Committee, main regional body for competitiveness and investment-related reforms:At the Ministerial meeting on November 24, 2011:– Adopted SEE 2020 Vision– Provided clear mandate to the RCC/SEEIC and national

administrations to engage on regional strategy development– Secured resources for the strategy

At the Ministerial meeting on November 9, 2012:– Adopted 11 regional and 77 national headline targets to be reached

by 2020

Integrated growthdeeper regional trade and investment

linkages and policies enhancing the flow of goods, investment, services

and persons

Smart growthcommitment to compete on value added, promoting knowledge and

innovation across the board

Sustainable growthenhancing competitiveness, entrepre-

neurship and a commitment to greener and more energy-efficient

development

Inclusive growthskills development, employment

creation and labour market participation by all, including

vulnerable groups and minorities

Governance for growthimproving the capacity of public

administrations to strengthen the rule of law and reduce corruption so as to

create a business-friendly environment

SEE 2020Vision

Five pillars of SEE 2020

Increase of GDP per capita relative to the EU

Growth of Total Trade in Goods and Services

SEE 2020 Embodied in 11 Headline Targets

2010 2020

36.4

44

% of EU 27

2010 2020

94.4

209.5

EUR billion

Reduction of Trade Deficit

Growth of intra-regional trade in goods

Growth of overall FDI inflows

2010 2020

-15.7 -12.3

% of GDP

3.4 p.p.

2010 2020

12.5

30.5EUR billion

2010 2020

3.4

8.8

EUR billion

Inte

grat

ed g

row

thO

vera

ll

122%7.6 p.p.

144% 158%

SEE 2020 Embodied in 11 Headline Targets

Growth of GDP per person employed

2010 2020

27.536.3

thousand EUR

Growth of overall employment rate

Increase of government effectiveness

Incl

usiv

e gr

owth

Smar

t gro

wth

2010 2020

1.7

2.0

million people

Growth of Highly Qualified Workforce

Sust

aina

ble

grow

th

Growth of enterprise creation

2010 2020

30.1

36.1

net registered firms (000)

Growth of exports of goods and services per capita

2010 2020

1.8

4.3

thousand EUR

2010 2020

39.5

44.4

% of 15+

5 p.p.

Gove

rnan

ce f/

grow

th2010 2020

2.33

2.80

WBI index

33%20%

138% 20%

Guiding principles of SEE 2020

1. Added value to national efforts – synergy2. Decentralized development and implementation3. Quantifiable indicators and measurable progress4. Clear governance structure and political support

Strong link with IPA 2

SEE 2020 Development Process

• Development of SEE 2020 divested to regional structures that:– Are able to play a leading role within each pillar– Are functionally aligned with SEE 2020 policy dimensions– Have capacity to work on development and can build capacity for

implementation– Have, or are willing to put in place adequate governance mechanisms

• Wide-ranging consultations with national administrations and other partners– More than 1,000 people directly involved in the process so far– Process expected to continue until end of September when the draft

Strategy should be finalized

Pillar 1: Integrated growthDimension: A. FREE TRADE AREAMinistries/ agencies: Ministries in charge of trade; Ministries in charge of economy; other related institutionsMeasures •Elimination of tariffs and quotas, completion of liberalisation of trade in agricultural products

•Elimination of non-tariff (technical, sanitary and phytosanitary) barriers to trade•Facilitation of trade through employing transparency tools and the elimination of non-automatic import licences contravening WTO and EU practice•Liberalisation of trade in services via reducing restrictiveness in this area•Facilitation of free flow of investment through coordination of investment policies and promotion, and better protection of investors and investment

Dimension: B. COMPETITIVE ECONOMIC ENVIRONMENTMinistries/agencies: Ministries in charge of trade; Ministries in charge of economy; other related institutionsMeasures •Strengthen competition policy creating a Trade Defence Instrument Free Trade Area in the region

•Strengthen intellectual property rights through better protection of trademarks•Create a functioning public procurement market in the region

Dimension: C. INTEGRATION INTO THE GLOBAL ECONOMYMinistries/ agencies: Ministries in charge of trade; Ministries in charge of economy; other related institutionsMeasures: •Prioritise and implement business climate reforms

•Improve market access through completing a single diagonal cumulation zone under the PEM and the harmonisation of MFN duties in the region towards EU CET•Establish an investment concept to enhance participation in regional supply chains and global supply networks

Pillar 2: Smart growthDimension: D. HUMAN CAPITAL DEVELOPMENTMinistries/ agencies: Ministries in charge of educationMeasures •Increase quality, focus on qualifications and mobility

•Introduce policies to increase equitable access to high quality education and implement measures to prevent early-school leaving and ‘drop-out’ and improve completion rates at all levels

Dimension: E. R&D AND INNOVATIONMinistries/agencies: Ministries in charge of science; Ministries in charge of economy; other related institutionsMeasures •Establish a Research Excellence Fund to strengthen research capabilities and promote research excellence

•Introduce a Technology Transfer programme to stimulate industry-science collaboration, produce marketable research•Create an early stage start-up programme using both non-financial and financial instruments to support a viable long-term market for innovation finance.

Dimension: F. DIGITAL SOCIETYMinistries/ agencies: Ministries in charge of information society, other respective ministries and agenciesMeasures: •Support to ICT driven public sector innovation for further modernisation of public administration,

development and increase of interactivity and accessibility levels of electronic public services, and on-line availability of interoperable electronic public services nationally and across the region of SEE•Development of regional broadband infrastructure to provide high-speed internet access to all•Advancement of network security and data protection across the region of SEE•ICT training for both public administration and citizens•ICT for e-Inclusion of marginalised groups (women, disabled, rural poor, Roma, etc.), transfer of know-how

Dimension: G. CULTURE AND CREATIVE INDUSTRIESMinistries/ agencies: Ministries in charge of culture other respective ministries and agenciesMeasures: •Develop common approaches to rehabilitating regional heritage

•Establishment of the Regional Film Fund (RFF) to complement available national and Euro-level funds•Implementation of a regional Design Incubator

Pillar 3: Sustainable GrowthDimension: H. RESOURCE EFFICIENCYMinistries/ agencies: Ministries in charge of energy, transport, environment; other related institutionsMeasures •Improve the energy and transport intensity of GDP

•Enhance utilization rates of thermal plants and the energy network infrastructure•Increase share of renewable energy in final energy consumption•Improve the utilization rate of railway infrastructure•Introduce instruments for reducing energy consumption and costs per unit of transport service•Put in place measures to improve the ratio of railway and waterborne transport and facilitate air transport (including harmonization of air traffic management)•Develop and put in place measures and instruments to decrease polluting (SO2, NOx and PM 10, 2.5) emissions •Develop and introduce measures and instruments to reduce the volume of waste material disposed to land-fills•Adopt climate change adaptation measures and increase protected and forest areas

Dimension: I. COMPETITIVENESSMinistries/agencies: Ministries in charge of economy; other related institutionsMeasures •Develop regional activities to support SME development, including clustering and FDI–SME linkages

•Enhancing regional value chains through sector-specific actions•Regional activities to support greater access to finance•Peer review of SME development and policy, relying on harmonised SME statistics•Coordinated efforts to improve business integrity•Enhanced regional cooperation in the area of tax and competition policy

Pillar 4: Inclusive GrowthDimension: J. EMPLOYMENTMinistries/ agencies: Ministries in charge of labor and social policiesMeasures •Build regional capacity for harmonized monitoring of migration and mobility with a view to a gradual lifting

of labour market restrictions in the region.•Apply modern approaches in labour market governance that stimulate employment, including the flexicurity approach, evidence based policy making, and partnerships for labour market transition.•Tackle informal employment through an exchange of information and experiences, improved inter-institutional and intra-regional cooperation and by testing appropriate policy measures•Promote social economy initiatives: setting up a regulatory framework, networking, sharing know-how and identifying good practices

Dimension: K. HEALTHMinistries/agencies: Ministries in charge of economy; other related institutionsMeasures •Adopt and implement a regional model for delivery of universal and high-quality health-promoting services

at all levels of care, with an emphasis on a strong primary care sector for improving health gain in the SEE region and a particular focus on low-income and disadvantaged groups •Strengthen health institutions and improve the intersectoral governance of the health sector at national, regional and community levels by following the HiAP approach•Adopt multilateral and bilateral agreements to harmonise the cross-border public health and public health services legislation, standards and procedures, and develop mutual recognition and trust to enable the creation of a Free Trade Area from a public health perspective•Adopt multilateral and bilateral agreements to strengthen human resources for health, harmonise and mutually recognise health professionals´ qualifications and monitor health workers and their mobility

Pillar 5: Governance for growthDimension: L. EFFECTIVE PUBLIC SERVICESMinistries/ agencies: Ministries in charge of PARMeasures •Rely on e-governance especially at the local level to ensure efficiency and a lack of bias

•Introduce a procedure for continuous improvement of the competence of public officials•Review the relations between various levels of government to ensure full respect of the principle of subsidiarity•Consider introducing elements of fiscal decentralisation in order to improve the responsibility of local governments

Dimension: M. ANTI-CORRUPTIONMinistries/agencies: Ministries in charge of trade; Ministries in charge of economy; other related institutionsMeasures •Introduce simple, clear, enduring and transparent rules of access to public services

•Increase public awareness through regular reports and by supporting independent agencies•Rely on competitive procedures and avoid direct deals especially in public procurement•Introduce regular evaluations of all government programmes and projects and independent auditing

Dimension: N. JUSTICEMinistries/ agencies: Ministries in charge of trade; Ministries in charge of economy; other related institutionsMeasures: •Introduce a comprehensive and enduring system of education and increased competence in the judiciary

•Introduce regulation that supports alternative dispute resolution and their complementarity with the judicial system

Prioritization through sectors

integrated

smart

sustainable

inclusive

governance

Prioritize removal of trade barriers of raw materials, intermediate and final productsLiberalize manufacturing-related services (e.g. integrated logistics services) Incentivize investment in the given sector

Identify regional skills-gaps and skills mismatches within the sector with an objective to install mutual recognition arrangements for the given profession

Prioritize infrastructure investment geared towards supporting the value chain

Mutual recognition arrangements

Piloting alternative dispute resolution methods for the given sectorsAutomate licensing and concessionary procedures through e-gov services (e.g. paperless customs)

EXAMPLE: AUTOMOBILE PARTS SECTOR

SEE 2020 Implementing Structure

pillar: integrated growth

pillar: smart

growth

pillar: sustainable growth

pillar: inclusive growth

pillar: governan

ce

SEE 2020

RCCGovBoard

SEEIC CEFTA

RAITFCS

R&D Platform

ERI SEE

RESPANALAS

e-SEE

REC

SEEICIGWGSD

SEECEL

SEEHNMinistries of education,

employment, social affairs,

health

Ministries of economy, energy,

environment, agriculture, transport

Ministries of education,

science, information

society, culture

Ministries of PAR, justice,

interior, judicial

authorities

Ministries of trade,

economy, investment

ECS

SEETO

SEE 2020 Governance

GOVERNING BOARD OF SEE 2020

• Overall guidance and general policy orientation• Annual stock-taking of progress•Adoption of ARI

• Sectoral monitoring and peer reviews•Development of reports on policy dimensions•Coordination with other related dimensions•Preparation of sectoral inputs to the ARI

DIMENSION COORDINATOR

(REGNL STRUCTRS)

…

LINE MINISTRIES/

AGENCIES

…

•Implement the Strategy •Provide inputs on progress of implementation and policy developments

SEE 2020 NATIONAL

COORDINATOR

LINE MINISTRIES/

AGENCIES

LINE MINISTRIES/

AGENCIES

DIMENSION COORDINATO

R

DIMENSION COORDINATO

R

REGIONAL COOPERATION

COUNCIL

•Overall monitoring and reporting•Horizontal coordination and cross-cutting issues•Preparation of ARI

•Provide intra-governmental coordination mechanisms•Liaise with RCC•Brief Govern. Board members

SEE 2020 Monitoring Schedule

Jan

Provide inputs for the Annual Sectoral Review

Feb Mar Apr May Jun Dec

National Administrations

Dimension Coordinators

RCC

Governing Board

Prepare the Annual Sectoral Review

Prepare the Annual Implementation Report

Adopt AIR & issue policy guidance

Monitoring and peer reviews

…

Implementation of the Annual Sectoral Review Work Programme

Overall coordination & SEE 2020 monitoring

SEE 2020 Development Process

Jan Feb Mar Apr May Jun

National Administrations

Dimension Coordinators

RCCIdentify main partners, define roles and responsibilities

Take part in sectoral/horizontal consultations

Organize sectoral consultations process

First set of sectoral inputs for SEE 2020

Hire external TA

Generate 1st draft of SEE2020

Support sectoral consultations process in select areas

SEE 2020 Development Process (cnt’d)

Jul

SEE 2020 adopted Ministers

Aug Sep Oct Nov

National Administrations

Dimension Coordinators

RCCRefine the 2nd draft of SEE2020, detailed action plan, costing

2nd round of consult.

Refinements to the sectoral inputs

Finalize proposed SEE 2020

Adoption of SEE 2020 within government procedure

Political support for respective sectoral inputs

Review 1st draft of SEE 2020

thank you

RCC SecretariatTrg BiH 1/V, 71000 SarajevoBosnia and Herzegovinahttp://www.rcc.int