Suzana Velkovska, Ministry of Labour and Social Policy, Republic of Macedonia Financing of services and decentralization ASSESSMENT OF THE REFORM OF THE.

Suzana Velkovska, Ministry of LaSuzana Velkovska, Ministry of Labour and Social Policy, Republic obour and Social Policy, Republic of Macedoniaf Macedonia

Financing of services Financing of services and decentralizationand decentralization

ASSESSMENT OF THE REFORM OF ASSESSMENT OF THE REFORM OF THE CHILD PROTECTION SYSTEM IN THE CHILD PROTECTION SYSTEM IN

THE REPUBLIC OF MACEDONIATHE REPUBLIC OF MACEDONIA

June, 2007June, 2007


Budgeting and financingBudgeting and financing Affected by:Affected by:

The (central) role of MoLSP in planning and decision The (central) role of MoLSP in planning and decision makingmaking

- Not subject of a single unit, but fragmented under Not subject of a single unit, but fragmented under many, 3 of the 10 Departments involved with many, 3 of the 10 Departments involved with different capacities in policy making and planning of different capacities in policy making and planning of the child protection, (Department for Social the child protection, (Department for Social Protection, Department for Child Protection and Protection, Department for Child Protection and Department for Equal OpportunitiesDepartment for Equal Opportunities

- Department for Social Protection - in charge for Department for Social Protection - in charge for planning and decision-making regarding the planning and decision-making regarding the measures of prevention, non-residential and measures of prevention, non-residential and residential forms of protection and the right to social residential forms of protection and the right to social assistance (for the population in general and assistance (for the population in general and children in particular)children in particular)


Cross sectoral cooperation on national levelCross sectoral cooperation on national level

- Establishment of temporary working groups Establishment of temporary working groups based on shared membershipbased on shared membership

- Lack of official inter-ministerial protocols in Lack of official inter-ministerial protocols in place to guide planning and decision place to guide planning and decision making in formalised and specified mannermaking in formalised and specified manner

- Same on local levelSame on local level

- Preparation of protocols for collaboration Preparation of protocols for collaboration between relevant stakeholders/Ministries, between relevant stakeholders/Ministries, the MoLSP and the CSWs - one of the the MoLSP and the CSWs - one of the priorities of the MoLSP for the futurepriorities of the MoLSP for the future


Strategies and action plans that guide planning and Strategies and action plans that guide planning and decision making, direct and indirect relevance:decision making, direct and indirect relevance:

- National Action Plan on the Rights of Children in the National Action Plan on the Rights of Children in the R. Macedonia 2005-2015 existsR. Macedonia 2005-2015 exists – – paper based paper based documentdocument

- Poverty Reduction Strategy (2002), National Poverty Reduction Strategy (2002), National Strategy for Equalisation of the Rights of Persons Strategy for Equalisation of the Rights of Persons with Disabilities in R. Macedonia (2001), the Strategy with Disabilities in R. Macedonia (2001), the Strategy for Employment (2006-2010), National Action Plan for Employment (2006-2010), National Action Plan for Employment for the period 2006-2008, as well as for Employment for the period 2006-2008, as well as the Strategy for Fight against Trafficking in Human the Strategy for Fight against Trafficking in Human Beings and Illegal migration in the Republic of Beings and Illegal migration in the Republic of Macedonia (2006), the National Action Plan for Macedonia (2006), the National Action Plan for Combating Trafficking in Human Beings and Illegal Combating Trafficking in Human Beings and Illegal Migration in the R. Macedonia (2006), and the Action Migration in the R. Macedonia (2006), and the Action Plan for Combating Trafficking in Children in the R. Plan for Combating Trafficking in Children in the R. Macedonia (2006)Macedonia (2006)

- National strategy for fight against domestic violence National strategy for fight against domestic violence – in preparation– in preparation


Lack of monitoring and evaluation Lack of monitoring and evaluation mechanisms:mechanisms:

- impedes the attempts to track down impedes the attempts to track down implementation of the envisaged strategic implementation of the envisaged strategic objectivesobjectives

- development of Strategies that would development of Strategies that would subsequently serve as a basis for subsequently serve as a basis for operationalisation of concrete stepsoperationalisation of concrete steps


Budgeting and financingBudgeting and financing

Material assistance for children and Material assistance for children and families families ::

- regulatedregulated by by : the Law on Social : the Law on Social Protection and the Law on Child Protection and the Law on Child ProtectionProtection

- reforms in both Laws,reforms in both Laws, regarding the regarding the administration of the social assistance administration of the social assistance benefits benefits - - initiated by the SPIL project initiated by the SPIL project supported by the World Bank loansupported by the World Bank loan

- reforms regarding the entitlement to reforms regarding the entitlement to social assistance allowances (Law on social assistance allowances (Law on Social Protection) and reforms in the Social Protection) and reforms in the rights to child supplements (Law on rights to child supplements (Law on Child Protection) Child Protection)


-- reforms originate from the practice reforms originate from the practice and the need to advance the and the need to advance the protection of specific vulnerable protection of specific vulnerable categories of children (i.e. social categories of children (i.e. social assistance for children coming out of assistance for children coming out of age) or to make child supplement age) or to make child supplement benefits available to the most needy benefits available to the most needy families (targeting of child families (targeting of child supplements)supplements)


Social assistance benefits, average monthly Social assistance benefits, average monthly

amounts and number of beneficiaries in 2006:amounts and number of beneficiaries in 2006: Social financial assistance: 64.749; 2.154 den. (35 €)Social financial assistance: 64.749; 2.154 den. (35 €)

Personal assistance allowance: 21.499; 3.390 den. (55 €)Personal assistance allowance: 21.499; 3.390 den. (55 €)

Permanent financial allowance: 4.988; 3.046 den. (49 €)Permanent financial allowance: 4.988; 3.046 den. (49 €)

Wage allowance for shortened working hours due to care Wage allowance for shortened working hours due to care for disabled child: 42; 6.590 den. (107 €)for disabled child: 42; 6.590 den. (107 €)

One-off financial allowance: 1.139; 2.080 den. (34 €)One-off financial allowance: 1.139; 2.080 den. (34 €)

Financial assistance for children coming out of age (18-Financial assistance for children coming out of age (18-26)893.567 den. (58 €)26)893.567 den. (58 €)


Assistance to families with Assistance to families with children:children: Regulated within the Law on Child Regulated within the Law on Child

Protection:Protection:

- child supplementchild supplementspecial supplementspecial supplement- assistance for newbornsassistance for newborns- participation in covering expenses for participation in covering expenses for

protection, education, rest and protection, education, rest and recreation of children in public recreation of children in public institutions for children or seasonal institutions for children or seasonal resortsresorts


Key reforms relate to:Key reforms relate to:- the introduction of the upper limit for the the introduction of the upper limit for the

amount of the child supplement amount of the child supplement - introduction of the system of calculation of introduction of the system of calculation of

the financial assistance for the newborn the financial assistance for the newborn depending on the average monthly income of depending on the average monthly income of the applicant the applicant

- the new Law on Child Protection anticipates the new Law on Child Protection anticipates reforms in the system geared towards more reforms in the system geared towards more equitable distribution of the rights (especially equitable distribution of the rights (especially of the right to child supplement and of the right to child supplement and participation) towards the poorest families participation) towards the poorest families and children with the highest risk of social and children with the highest risk of social exclusion.exclusion.


Social assistance benefits - Social assistance benefits - reforms towards "means-testing"reforms towards "means-testing" The Social Protection Implementation The Social Protection Implementation

Project (SPIL), supported by a World Bank Project (SPIL), supported by a World Bank loan, (2004 – 2008) ,initiated the most loan, (2004 – 2008) ,initiated the most significant changes in the domain of:significant changes in the domain of:

- improved administration and targeting of improved administration and targeting of the social financial assistancethe social financial assistance

The objectives of the SPIL for Macedonia: The objectives of the SPIL for Macedonia: - to improve the effectiveness and efficiency to improve the effectiveness and efficiency

of social protection system through of social protection system through improved administration improved administration

- long-term sustainability of the pension long-term sustainability of the pension system system

- improved targeting and administration of improved targeting and administration of cash benefitscash benefits


Component 2 of this project comprises:Component 2 of this project comprises:

- support for the policy framework for support for the policy framework for streamlined, cost effective and better streamlined, cost effective and better targeted cash benefits,targeted cash benefits,

- implementation of local social planning and implementation of local social planning and deinstitutionalization of social work deinstitutionalization of social work services,services,

- establishment of inspection, supervision establishment of inspection, supervision and quality assurance functions, and quality assurance functions,

- information management systems and IT information management systems and IT capacity strengtheningcapacity strengthening

Reform processes concerning social Reform processes concerning social assistance, largely associated with the assistance, largely associated with the synchronization of the Macedonian with the synchronization of the Macedonian with the EU legislation, and through the method of EU legislation, and through the method of coordination, with the other systems as wellcoordination, with the other systems as well


ServicesServices Service purchasing based on the Service purchasing based on the principle of principle of

pluralismpluralism introduced (Law on Changes and introduced (Law on Changes and Amendments on the Law on Social Protection Amendments on the Law on Social Protection (65/2004) refers to:(65/2004) refers to:

- possibilities for citizen's associations (NGOs) possibilities for citizen's associations (NGOs) and individuals to become service providersand individuals to become service providers

- besides NGOs, individuals and legal entities, besides NGOs, individuals and legal entities, as well as the units of local self-government as well as the units of local self-government may establish institutions for social may establish institutions for social protection (except for CSWs or institutions for protection (except for CSWs or institutions for protection of children and youth with protection of children and youth with educational, social, and behavioral problems), educational, social, and behavioral problems), and day care centresand day care centres

- This was introduced to upgrade the quality of This was introduced to upgrade the quality of services in the domain of social protection services in the domain of social protection through the introduction of the through the introduction of the competitiveness in this domaincompetitiveness in this domain


Reforms towards service purchasing are Reforms towards service purchasing are evidencing progress:evidencing progress:

- financial means set aside annually from the financial means set aside annually from the MoLSP budget for service purchasingMoLSP budget for service purchasing

- in 2006, the MoLSP set aside 1.000.000 in 2006, the MoLSP set aside 1.000.000 denars (16.129 Euro) and opened 2 tenders: denars (16.129 Euro) and opened 2 tenders: 1) for establishment of National SOS Line for 1) for establishment of National SOS Line for Victims of Family Violence (project Victims of Family Violence (project implemented by the NGO Union of Women's implemented by the NGO Union of Women's Organisations) and 2) tender for 1 National Organisations) and 2) tender for 1 National SOS Line for Drug AbuseSOS Line for Drug Abuse

- available funding for service purchasing is available funding for service purchasing is gradually improving: for 2007, the amount gradually improving: for 2007, the amount set aside for service purchasing tripled to set aside for service purchasing tripled to 3.000.000 denars (48.387), 4 tenders are 3.000.000 denars (48.387), 4 tenders are already openedalready opened


budgeting on the basis of programming budgeting on the basis of programming expenses:expenses:

- CSWs are obliged to prepare annual CSWs are obliged to prepare annual programmes (which are mostly formal in programmes (which are mostly formal in character and are necessary for the purpose of character and are necessary for the purpose of budget planning) and monthly programmes for budget planning) and monthly programmes for social assistancesocial assistance

- introduction of a budget circular which CSWs introduction of a budget circular which CSWs have to fill in and submit it to the MoLSPhave to fill in and submit it to the MoLSP

- Purpose of the change : to facilitate budget Purpose of the change : to facilitate budget planning at the central level, as filling in planning at the central level, as filling in budget circulars is not based on any actual budget circulars is not based on any actual assessment of needs, but rather based on assessment of needs, but rather based on approximations of the required monthly funds approximations of the required monthly funds to cover social assistance entitlements to cover social assistance entitlements envisaged in legislationenvisaged in legislation


Considerable changes in budgeting are Considerable changes in budgeting are required for more flexible and joint financing required for more flexible and joint financing of reforms :of reforms :

- the system does not allow for inter-sectoral the system does not allow for inter-sectoral transfers. Each Ministry, including the transfers. Each Ministry, including the MoLSP prepares budget proposal for the MoLSP prepares budget proposal for the following year, which is submitted to the following year, which is submitted to the Ministry of Finance. Proposals are then Ministry of Finance. Proposals are then adopted by the Government and enter in adopted by the Government and enter in Parliament procedures, although most often Parliament procedures, although most often the budgets in the proposed amounts are the budgets in the proposed amounts are not approved. In cases when budget not approved. In cases when budget shortages appear as a result of shortages appear as a result of implementation of reform measures, implementation of reform measures, rebalancing of the budget is undertaken, rebalancing of the budget is undertaken, and these re-budgeting requests are usually and these re-budgeting requests are usually acceptedaccepted


Transferring of financingTransferring of financing Decentralization process in social protection:Decentralization process in social protection:

Initiated in 2004, carried out in parallel with Initiated in 2004, carried out in parallel with the decentralisation process in R. the decentralisation process in R. Macedonia in generalMacedonia in general

Mainly refers to municipalities' possible role Mainly refers to municipalities' possible role as a funder and service provider of a variety as a funder and service provider of a variety of social protection services (residential and of social protection services (residential and day care services)day care services)

Still not taking place in practice due to lack Still not taking place in practice due to lack of administrative and financial resources at of administrative and financial resources at municipal levelmunicipal level


Relationship between CSWs and Relationship between CSWs and municipalities:municipalities:

- CSWs are obliged to administer municipal CSWs are obliged to administer municipal social protection programmes, but their role social protection programmes, but their role in planning is not envisaged within the in planning is not envisaged within the legislation, although in practice this may be legislation, although in practice this may be the casethe case

- Both CSWs and municipalities may establish Both CSWs and municipalities may establish mechanisms to ensure additional funding for mechanisms to ensure additional funding for these programmesthese programmes

- However, these developments are yet to However, these developments are yet to take placetake place


Next steps:Next steps: Overcoming of current fragmentation in Overcoming of current fragmentation in

planning and decision-making under the planning and decision-making under the responsibility of several departments towards responsibility of several departments towards unified policy making, through integration of unified policy making, through integration of child protection accountability into a singe child protection accountability into a singe department within the MoLSPdepartment within the MoLSP

Enhancement of inter-ministerial cooperation Enhancement of inter-ministerial cooperation through official protocols developed by the through official protocols developed by the relevant Ministriesrelevant Ministries

Enhancement of capacity building for Enhancement of capacity building for development of strategic objectives and development of strategic objectives and effective monitoring and evaluation effective monitoring and evaluation mechanisms for follow-up of their mechanisms for follow-up of their implementation within the MoLSP through implementation within the MoLSP through staff trainingstaff training


Updating of the working methodology Updating of the working methodology applied by the Commission for Cooperation applied by the Commission for Cooperation with the NGO sector in the domain of with the NGO sector in the domain of announcing specific tenders announcing specific tenders

Identification of areas where NGOs services Identification of areas where NGOs services could best fit within the system of child could best fit within the system of child protection based on needs assessment of protection based on needs assessment of the actual gaps in servicesthe actual gaps in services

Continuation of the rising tendency of the Continuation of the rising tendency of the annual budget set aside from the MoLSP for annual budget set aside from the MoLSP for service purchasing with the NGO sectorservice purchasing with the NGO sector


Encourage municipalities to enter the social Encourage municipalities to enter the social protection arena through :protection arena through :

- supporting activation of the local NGOssupporting activation of the local NGOs

- promotion of the engagement of individual promotion of the engagement of individual professionals in the social service provisionprofessionals in the social service provision

- utilisation of the existing infrastructural utilisation of the existing infrastructural objects in the municipalities (for non-objects in the municipalities (for non-residential forms of protection in residential forms of protection in particular), as well as particular), as well as

- provision of concrete assistance in the provision of concrete assistance in the development of the Local Social Protection development of the Local Social Protection Programmes to municipal personnelProgrammes to municipal personnel


Decentralisation of existing day-care centres Decentralisation of existing day-care centres DCCs and short-term protective shelters DCCs and short-term protective shelters (STPSs) through selection of pilot (STPSs) through selection of pilot municipalities - the process of fiscal municipalities - the process of fiscal decentralisation should be used for decentralisation should be used for identification of municipalities that seem to identification of municipalities that seem to have financial and administrative capacity to have financial and administrative capacity to manage themmanage them

Additional binding elements should be in Additional binding elements should be in place to regulate the relationship between place to regulate the relationship between CSWs and municipalities at the local level CSWs and municipalities at the local level (i.e. the role of the CSWs in planning and (i.e. the role of the CSWs in planning and development of development programmes)development of development programmes)

Joint training in fund raising, to encourage Joint training in fund raising, to encourage CSWs and municipalities to ensure additional CSWs and municipalities to ensure additional funding for the local development funding for the local development programmesprogrammes


Within the development of the role of Within the development of the role of the municipal organs for addressing the municipal organs for addressing social protection needs of citizens, social protection needs of citizens, MoLSP, Ministry of Local Self-MoLSP, Ministry of Local Self-government (MLSG) and municipalities, government (MLSG) and municipalities, could analyse the possibilities and could analyse the possibilities and practicalities around the eventual practicalities around the eventual transfer of the administration of all transfer of the administration of all financial allowances from the CSWs to financial allowances from the CSWs to separate department within the separate department within the municipalitiesmunicipalities

Suzana Velkovska, Ministry of Labour and Social Policy, Republic of Macedonia Financing of services and decentralization ASSESSMENT OF THE REFORM OF THE.

Documents

social protection

social policy

social financial assistance

child protection reforms

ministry of labour

suzana velkovska

child protection system

personal assistance