Activity Data Sheet

PROGRAM: Federal Republic of Yugoslavia (Republics of Serbia and Montenegro)
TITLE & NUMBER: More Effective, Responsive and Accountable Local Government, 169-023
STATUS: New
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: Serbia: $8,000,000 AEEB
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: Serbia: NONE
INITIAL OBLIGATION: FY 2001 ESTIMATED COMPLETION DATE: FY 2004

Summary: USAID's program to strengthen democracy in municipalities by assisting pro-democracy local governments is a key component of the agency's strategy to quickly develop more effective, responsive and accountable local government. Ultimately such improvements will contribute to the overarching goal of a more democratic, Western-oriented, national government. The recent democratic turn of events across Yugoslavia provides an opportunity to expand earlier efforts to work with selected, eligible municipal or city governments. A priority concern is to improve municipal service delivery through better management of existing municipal resources and enhance their effectiveness through increased citizen participation.

The program complements the work being conducted under the Citizens' Participation objective (SO 2.1) by engaging citizens in the decisions that affect their lives and strengthening the management capacity and systems of local governments to better address constituent needs. Three areas of municipal management will be strengthened and streamlined: financial management and budgeting; information technology systems; and communal services management. Management strengthening will improve efficiency, accountability, planning, and customer service. The program will work with municipalities to improve their transparency and enhance citizen participation in municipal affairs through the promotion of citizen and NGO representation on city boards, town meetings, public hearings on key issues, and customer service centers. Community groups will provide a democratic community level organization that can partner with municipalities in meeting critical needs.

The program will work with the Standing Conference of Towns and Municipalities at the national level to create a member-oriented organization representing municipal interests with the parliament, and providing training, technical assistance, and other services to member municipalities.

Program Categories include local government management capacity, fiscal and administrative decentralization, and local government support organizations.

Key Results: The principal results for which near-term progress is expected are: (1) increased local government ability to deliver essential services to the citizenry; (2) improved legal and financial sustainability for local government; (3) increased citizen and Civil Society Organization (CSO) involvement in the development of local government processes and services; and (4) increased political and management professionalism.

Performance and Prospects: Prior to the Kosovo war, USAID supported a local government program in Serbia that was carried out in the opposition cities of Nis and Kragujevac. That pilot program quickly made progress in getting politicians and local government management personnel to focus on effective mechanisms for increasing citizen involvement in community and local government issues and identifying priority concerns such as ways to improve basic urban services and promote local economic development. That experience will be expanded to include technical assistance and training in financial, information technology (IT), and communal service management, as well as critically needed IT equipment and software. In tandem with efforts under the Citizens' Participation objective, activities in this program will generate widespread citizen involvement in local government decision making and include the private sector in planning and implementing local economic development.

USAID proposes to obligate $8,000,000 in FY 2001 funds to improve local government management capacity and build a national association that effectively represents their interests. Innovative ways will be sought to enhance efficiency and effectiveness in providing joint services in contiguous communities. Municipal service priorities may include housing services, utilities, local transportation, infrastructure planning and building, schools, social welfare and health, and environmental clean-up operations. Material assistance requirements for infrastructure investments will be coordinated with the identification of investment needs carried out by community councils formed through activities under Strategic Objective 2.1. Town meetings and other venues will be promoted to involve citizens in setting local priorities and to develop a customer focus approach on the part of local authorities. Prospects for increased citizen involvement and access will be facilitated by local level accreditation of Civil Society Organizations (CSOs) and increased coalition building with advocacy CSOs and other Nongovernment Organizations (NGOs) serving as catalysts to assure inclusiveness in the scope of grass roots citizen participation in local government affairs.

The development of effective regional and national associations of kindred municipalities and productive networking and association with counterpart Central and East European and Balkan cities and local governments will enhance the ability of municipalities to advocate for the interests of local government. They will be able to adopt best practices based on their observation of how others have dealt with municipal issues. Activities under this program will substantially increase the professionalism of local government politicians, managers and local bureaucracies, in terms of effectiveness, accountability and customer focus. Increased political and management professionalism will require, and be characterized by improved management efficiency and effectiveness; increased accountability and transparency; and improved, customer-focused service delivery that benefits constituents.

Beneficiaries: The primary beneficiaries will be the citizens and administration of the participating cities and towns who will benefit from improved services delivery and/or resolution of priority problems, a more transparent municipal management and the benefits of an administration with continuously improved problem solving skills and resources.

Possible Adjustments to Plans: This program will be merged with the community committee development activities under the Citizens' Participation objective (SO 2.1) to ensure a coordinated approach to addressing grassroots democracy concerns.

Other Donor Programs: European "Sister City" activities have been operational since FY 2000. To date, there have been some limited activities, of a less technical form, on the part of German, Italian and other European cities that have twinned with Yugoslav cities. Those arrangements have not focused on the needs of local government practitioners.

Principal Contractors, Grantees, or Agencies: The implementing agent(s) will be selected from among the six consortia rapidly accessible under the existing Local Government Assistance competitively procured Indefinite Quantity Contract. They are: International City and County Managers Association, Urban Institute, Research Triangle Institute, Abt Associates, Chemonics International, and Development Alternatives, Inc. The services of one or more local NGOs also may be employed.

Selected Performance Measures: Appropriate performance measures are under development.

U.S. Financing

(In thousands of dollars)