INSTITUTIONAL MECHANISMS OF COOPERATION OF GOVERNMENT AND CIVIL SOCIETY: COMPARATIVE EXPERIENCES AND RECOMMENDATIONS FOR SERBIA Authors: Dragan Golubović and Branka Anđelković This report was prepared by the Poverty Reduction Strategy Implementation Focal Point. The views expressed herein represent the views of its authors and do not necessarily reflect the opinions of the Government of the Republic of Serbia. Contents Institutional Mechanisms of Cooperation of Government and Civil Society: Comparative Experiences and Recommendations for Serbia ..................................................................... 1 Summary ............................................................................................................................... 3 I. Institutional Mechanisms of Cooperation: Comparative Experiences .................................. 4 1. Introductory remarks ...................................................................................................... 4 2. Why would the Government be interested in cooperation with the civil society? ............ 4 3. Key Institutional Mechanisms of Cooperation ................................................................ 6 II. Mechanism of Cooperation: Situation in Serbia ................................................................11 1. Introductory remarks .....................................................................................................11 2. Overview of the existing models of cooperation between the Government of Serbia and the civil society organizations ...........................................................................................12 3. Challenges for cooperation between the Government and the CSOs ...........................14 4. Areas of cooperation between the Government and the CSO.......................................15 Recommendations for Serbia: ..............................................................................................19 APPENDIX 1: Proposal of overall competencies of the Office ..............................................20 2 Summary 1. Establishment of an institutional mechanism of cooperation between Government and the civil society is aimed at ensuring continuity and sustainability of this cooperation; it strengthens partnership between Government and the civil society and their capacities. Establishment of partnerships and capacity building of civil society are relevant to a Government for several reasons: 1) role of civil society in modern democracies and the European Union (civil society organizations enable citizens to articulate, defend and advocate continuously, and not only at elections, for their legitimate interests in public and political life); 2) disburdening the state apparatus (provision of social and other services by the civil society organizations with a view to developing a more cost-efficient and higher quality social welfare system, a significant role of the civil society organizations in almost all of the areas of social life); 3) role of the civil society in the process of EU integration. 2. The civil society plays an important role in the process of European integration of the countries of Western Balkans. A new Instrument for Pre Accession Assistance for these countries (IPA program) provides allocations of EUR 11, 467 billion for a period of seven years. The novelty of IPA, relative to other pre-accession instruments to date, is a considerably higher participation of the state in programming and proposing project priorities and taking over responsibility for implementation thereof. This will require mobilization of all available resources, including those of the civil society. Therefore, the Progress Report on the Countries of Western Balkans on their road to EU, published by the European Commission in March 2008, notes the significance of civil society in the process of comprehensive reforms in these countries, as well as the necessity of creating adequate institutional conditions for development and operation of the civil society organizations. 3. The institutional mechanisms of cooperation may take different forms (agreement, office for cooperation with civil society, foundation or civil society development fund) which are complementary rather than mutually exclusive. Bearing in mind comparative experiences and the current level of development of the civil society in Serbia, establishment of an Office for Cooperation with the Civil Society of the Government of Republic of Serbia represents the first, appropriate step towards the establishment of an institutional mechanism of cooperation. 4. Should the Government, following the public discussion and consultations with civil society, opt for establishment of the Office, the following is required: the mandate of the office and principles of cooperation should be flexibly but explicitly defined in order to avoid any misunderstandings about its objectives and its role, as well as its authority in cooperation with the civil society; the founding act should define that the Office inter alia promotes the basic Constitutional rights and values; identify the group of civil society organizations within the mandate of the office; define the role of the Office in the process of EU integration, including the possibility of participation of the Office in programming IPA funds; explore the possibility of obtaining donor assistance for founding and early functioning of the Office in view of the current budgetary restrictions; for the Office to begin its work as a new institution, rather than a continuation of one of the previous Government projects; appoint head of the Office experienced in working with civil society, donors and public administration and a person who is well trusted by the civil society. 3 I. INSTITUTIONAL MECHANISMS OF COOPERATION: COMPARATIVE EXPERIENCES1 1. Introductory remarks Establishment of an institutional mechanism of cooperation between Government and organizations of civil society (CSO) is a recent social phenomena2. It first appeared in Great Britain in the form of an agreement on cooperation (compact) signed by the Government and the CSO representatives. Two documents were particularly relevant for signing of this agreement: the 1996 Report of the Deakin Commission and the 1997 Labour Party Programme (“New Labour”)3. The Programme, published on the eve of parliamentary elections, stressed the significance of cooperation between the Government and the civil society in implementation of comprehensive economic and political reforms, as well as in promotion of values underpinning a socially just and inclusive society. Following its accession to power, the Labor Party of Tony Blair set about implementing its programme principles and recommendations from the Deakin Report. The Government signed compacts in England, Wales, Scotland and Northern Ireland in October and November 1998, as a first step in the process of establishment of a comprehensive institutional mechanism of cooperation. Over the past ten years since the signing of compacts, the CSOs have become a key Government partner in implementation of social, economic and political reforms, and a relevant economic factor. The results of a thorough survey published in 2006 indicated that the voluntary sector in England employs over 600,000 persons and generates an annual income of GBP 26,5 billion. After Great Britain, various institutional mechanisms of cooperation were established in other European countries (France, Denmark, Slovakia, Czech Republic, Hungary, Poland, Estonia, etc). These mechanisms were put in place in some form also in the countries of former SFRY, and partly in Serbia (for the Autonomous Province of Vojvodina), as well as in international multilateral organizations. Thus, the CSOs enjoy the advisory status in the United Nations, the World Bank, the Council of Europe, the European Union (European Commission) and the Organization for Security and Cooperation in Europe. 2. Why would the Government be interested in cooperation with the civil society? The key public policy reason for a Government to establish institutional mechanisms of cooperation with the civil society is the need to ensure continuity and sustainability of this cooperation. The mechanism of cooperation is not in function of stateism of civil society (which due to its pluralistic and “diffused” nature opposes all, and particularly, rigid standardization), but in the function of putting in place lasting dialogue and partnership between a Government and the civil society and strengthening capacities of the latter. Partnership with the civil society is of particular significance to a Government for several reasons: 1 This report is divided into two chapters: Chapter I and Recommendations for Serbia, prepared by Dr Dragan Golubović, Senior Legal Advisor at the European Centre for Non-Profit Law (ECNL) in Budapest. Chapter II was prepared by Mr Branka Anđelković, Consultant. Part of Chapter II that refers to legislative framework and tax legislation was prepared jointly by the authors. 2 Civil society organizations include various forms of private-initative organizing meeting the following criteria: 1) etsablished by means of a contract or another private-law instrument (decision on establishment, testament, etc); 2) established with the aim of achieving an ideal goal with a general beneficial or private purpose; 3) established on a voluntary basis; 4) are not part of the national authority structures. In the context of Serbia, civil society organizations include associtions, legacies, fondations and funds. From the legal comparative view, civil society organizations include non-profit organizations, private institutions, as well as other forms of orgnizing meeting the abovementioned criteria. 3 The Deakin Commission Report: The Future of Voluntary Sector, Labor Party: Building the Future Together. 4 1) CSO role in modern democracies. The organizations of civil society play an important role in modern democracies: associations and other forms of CSOs enable citizens to articulate, defend and advocate their legitimate interests in public and political life continuously, and not only in the periods of elections. In that sense, the civil society is key to ensuring participatory democracy. This role has been recognized in the relevant international documents. Thus, the second chapter of the 2007 EU Lisbon Agreement states representative democracy (role of political parties) and participatory democracy (role of civil society) as key democratic principles that the EU is founded on. The Agreement guarantees each citizen the right to take part in the democratic life of the Union and places a responsibility on the institutions and agencies of the Union for enabling the citizens and representative CSOs to express and publicly share their opinions on all the areas of activity of the Union in an appropriate manner.4 The provisions of the 2007 Recommendations of the Committee of Ministers to the Council of Europe member states on the legal status of CSOs (Chapter VIII – Participation in the Decision-Making Processes)5 are similar. The international legal regime of protection of the right to free association also represents recognition of a key role that associations and other membership organizations play in exercising participatory democracy. The civil society has a special place in the countries of Central Europe, the new EU member states. During the age of communism, the civil society (i.e. remnants thereof) preserved memory of the “history interrupted” and its democratic values. Furthermore, the civil society played a key role in the process of peaceful transition of (communist) government and reestablishment of democratic order. This is one of the main reasons for which these countries often take the lead in creating innovative mechanisms of cooperation between the state and the civil society. 2) Disburdening the state apparatus and strenghtening intersectoral cooperation. The limited financial and human resources of states, as well as growing and ever more complex social needs call for “privatization” of social and other services that were traditionally the realm of constitutional mandate of Governments, i.e. for creation of conditions for these services to be provided by private stakeholders to a greater extent (CSOs and commercial companies). That is why the crisis of a “state of prosperity” is mentioned. The scope of social services provided by CSOs is on the rise. For instance, in England the number of employees in CSOs providing social services rose from 149,000 to 272,000 or by 86% in the period 1996-2005. The same trend was observed relative to the programmes of social and economic assistance and poverty reduction in underdeveloped countries were governments and multilateral donors are ever more often replaced or complemented by large private foundations. However, Government – CSO cooperation is not limited exclusively to the area of social services. There seems to be no area of social activity today were CSOs do not play a prominent role in developing and implementation of public policies (building of a legal state, reducing unemployment and poverty, sustainable development, promotion of volunteer work, social inclusion, repatriation of refugees, gender equality, protection of minorities, environmental protection, fight against corruption, education, culture, amateur sports, good neighboring cooperation, Euro-Atlantic Integrations, etc). These are at the heart of the interest of governments to establish partnership relations with the civil society. Finally, the institutional mechanism of cooperation may be particularly relevant for the countries in transition: due to weak institutions, limited human and financial resources, partnership of the 4 The Treaty of Lisbon changes the provisions of the Agreement on European Union and the Agreement on Establishment of the European Community. It was signed by heads of states and EU government members on 3 December 2007, and published in the Official Journal of the European Union No. C 306-10 of 18 February 2007. Although initially planned for the Agreement to enter into force, i.e. to be ratified in all member states by end of 2008, the negative results of referendum in the Republic of Ireland slowed down this process and made its outcome uncertain. 5 Recommendation CM/Rec (2007)14. 5 state and private stakeholders may contribute to accelerated and successful completion of the transition process. 3) The European Integration process. The civil society may play an important role in the process of European integration. This role has its political aspect (mobilization of citizens for European values, promotion of advantages of EU integration, etc.) and economic and institutional aspects (strengthening capacities for optimum use of available EU funds). For instance, in Estonia, a joint committee of Government and representative CSO representatives was established which played an important role in fulfilling conditions for full membership in EU. On the other hand, Czech Republic set up an efficient political and institutional mechanism for provision of assistance to CSOs in applying for pre-accession funds. In this way the overall institutional capacities for drawing these funds were significantly enhanced. This is particularly relevant in view of the fact that it is precisely the insufficient institutional capacities of candidate countries that are a key reason for insufficient use of available EU funds.6 The cooperation with the civil society per se is not a condition for EU membership, but certainly bears particular importance for all the Western Balkans countries in the process of EU integration. The new Instrument for pre-accession assistance to countries of Western Balkans (IPA programme) provides for an allocation of EUR 11.467 billion over seven years, in order to assist these countries in harmonizing national legislation with the EU acquis communautaire and building capacities to utilise structural funds, rural development funds and cohesion fund proceeds.7 The novelty of IPA relative to the previous pre-accession instruments of assistance is a considerably higher participation of state in programming and proposing project priorities and taking over the responsibility for implementation thereof. This will require mobilization of all the available resources, including those of the civil society. With a view to this, the Progress Report on the Countries of Western Balkans – Enhancing the European Perspective, published by the European Commission in March 2008 notes the significance of the civil society in the process of comprehensive reforms in these countries and the necessity of establishment of adequate institutional conditions for development and functioning of CSOs.8 3. KEY INSTITUTIONAL MECHANISMS OF COOPERATION 3.1. Two approaches to building mechanisms of cooperation The countries did not, automatically on the basis of the above mentioned reasons and to the equal extent, opt for establishment of institutional mechanisms of cooperation between Governments and civil society; the process depended on their specificities and requirements. The cooperation was initiated either “bottom down”, by the government, or “from bottom up”, by the civil society. In Great Britain and Estonia, for instance, the Governments initiated the process of putting in place the institutional mechanisms of cooperation only after the critical mass for establishment of the partnership had been created on the part of the civil society (“from the bottom to the top”). On the other hand, in Croatia, it was precisely the creation of the institutional mechanisms of cooperation that significantly contributed to strengthening the capacities of the civil society and its growing social role (“from the top to the bottom”). The mechanisms of cooperation may take various forms: cooperation agreement, office for cooperation with the civil society, foundation or civil society development fund, a separate 6 Thus Bulgaria and Romania, before becoming full members, never drew more than 50% of proceeds available to them in the EU pre-accession funds. Over EUR 2 billion thus remained unused in the period 2004-2006. 7 Regulations of the Council of Ministers EU, 1085/2006. 8 Communication from the Commission to the European Parliament and the Council: Western Balkans: Enhancing the European perspective SEC (2008) 288. 6 sector or a focal point at the ministry in charge of cooperation with the civil society, etc. Certain forms of cooperation are not mutually exclusive but complementary. 3.2. Agreement on cooperation Signing of an agreement is often, though not necessarily, the first step in establishment of a wider institutional mechanism of cooperation between Government and the civil society (Great Britain, BiH, Estonia).9 From the aspect of doctrine, an agreement on cooperation is not to be confused with a Government strategy for development of a civil society. Namely, while an agreement represents a document adopted by both signatories who are then put in charge of its implementation each within its respective area of work, a strategy is a document adopted by one side only – the Government which is in ultima linea the sole party responsible for its implementation even if adopted with full participation of a civil society. Irrespective of varying titles used for the agreement in different states (compact, charter, etc), it must be noted that the agreement does not represent a contract in the actual sense, but primarily a political document. A good comparative practice indicates that an effective agreement must contain the following elements: Identification of joint principles and values shared by the signatories – these provisions indicate the significance of CSO to the development of a dynamic and pluralistic democratic society, to differing, but complementary, obligations of the Government and the civil society and define the principles of cooperation (partnership, transparency, independence, etc).10 Recognition of the role of civil society and CSOs in public and political life – these provisions are to encourage the government to develop a legal framework conducive to an enhanced CSOs participation in the work of political institutions and better approach to information relevant for fulfilling the direct needs of citizens. Representativeness, or the issue of legitimacy of the signatories on the part of CSOs – these provisions define the procedure of ensuring legitimacy of CSO representatives signatories of the agreement. Identification of social and other services and programmes wherein CSOs have a particularly important role – these provisions identify social and other services the provision of which the CSOs are taking part of the responsibility for, in order to make these services cheaper and of higher quality. Establishment of a principle of public financing of CSOs – financing provisions contain basic principles in allocation of budget funds to CSOs; they define best practices in allocation of funds and minimum standards of CSOs accountability related to the use of allocated funds. 9 With reference to the state authority, the most frequent signatory of agreements is the goverment, with the exception of Estonia, where the Parliament is the signatory. 10 The compact signed in England states the following principles shared by the Government and the civil sector: volunteer action of citizens is an intrinsic part of a democratic society; the independent and developed third (volunteer) sector and community organizations are of fundamental significance for welfare of a social community; Government and CSOs have distinct but complementary roles and responsibilities in development of public policies and services; the cooperation towards a shared objective may only be beneficial; content-wise meaningful consultations contribute to establishment of stronger cooperation and enhance the quality of services and programmes; the Government and CSOs have distinct responsibilities but share the need for integrity, objectivity, transparency, integrity and true leadership; CSOs and community organizations may, within the boundaries provided for by the law, lobby for fulfillment of their legitimate aims; the Government and CSOs recognise the significance of efforts to creation of equal opportunities for all citizens, irrespective of their race, age, capacity, gender, sexual orientation or ethnic affiliation. 7 Establishment of the agreement implementation and monitoring mechanisms – the provisions related to agreement implementation map out concrete steps in identifying agencies in charge of implementation of the agreement, define mechanisms of cooperation and information sharing in fulfillment of responsibilities, as well as a method of dispute resolution. The advantages and risks identified in the practice of the agreement implementation are presented in the below table: TABLE I ADVANTAGES OF AGREEMENT For the Government: agreement may be suitable for establishment of intersectoral cooperation and formalization of partnership with the civil society, especially when faced with a surge in the needs in the area of social and other services, or when mobilisation of all social resources is required for implementation of profound social and economic reforms, i.e. fulfillment of political objectives such as full membership of the European Union; For CSO: an agreement may constitute a suitable mechanism of establishing partnership with the Government, as it may serve to influence reduction of discretionary authority of the government in defining public interest and priorities as well as criteria for budget financing of CSOs.11 3.3. RISKS Legally non binding document, declaration of taking over responsibilities without genuine intention and political will to implement it. More of a (declaratory) document of public policy, than an action mechanism of cooperation with the civil society, if adequate monitoring and implementation mechanisms have not been set out – even if there is political will. Unrealistic expectations and lack of understanding of objectives to be achieved by the agreement. Protracted timeframe for the agreement to become viable in practice. Absence of reliable criteria for assessment of results in agreement implementation. Government Office for Cooperation with the Civil Society A Government office is the key mechanism for establishment of Government – civil society partnership in numerous countries (Poland, Croatia, Czech Republic, Slovakia, Hungary, Montenegro). From the administrative aspect, the office functions as an organizational unit of the Government. Consequently, it does not have the character of a legal entity but it does have certain competencies in legal transactions. From the aspect of authority, the office represents a focal point for cooperation of the Government and civil society and has a broadly defined mandate. It must be noted that establishment of the office is not to suspend best practices and mechanisms of cooperation already in place between line ministries and CSOs. Quite the contrary, the establishment of the office should be in the function of promotion of quality and scope thereof. In particular, the office performs the following duties: Initiates adoption of legislation and public policy documents relevant for CSO legal and tax-related status of and monitors or is accountable for implementation of these regulations and policies; 11 Thus the compact signed in England, the Government inter alia conceded that legitimate criticism of the Government by CSOs would not affect their funding from the state budget; that it would take into account the report: ” Access to Government Funding for the Voluntary Sector”, prepared by the special, Better Regulation Task Force, stressing the necessity for higher proportionality, enhanced definition of objectives, stronger consistency and transparency in the mechanism of government funding of CSOs; and that it would work on developing a Code of Good Practice for their budget funding in cooperation with CSOs. 8 Initiates dialogue with the civil society on public policy issues, especially those not within direct mandate of a particular ministry or other Government agency; Coordinates and encourages cooperation of ministries and other Government agencies, as well as local self-government bodies with CSOs; Collects and disseminates information relevant for the civil society organizations, organizes round tables, conferences, trainings, seminars, workshops and study trips, publishes publications and undertakes other actions with a view to strengthening capacities of the civil society; Provides logistic and other kinds of support towards development of civil society to the advisory bodies of the Government; Finances programmes of the civil society from distinct state budget funds; Takes part in programming EU pre-accession funds for civil society support (CARDS, PHARE, IPA). Further to the above, it is noteworthy mentioning the key role of the Office in Croatia to establishment of transparent mechanisms and procedures for state financing of CSOs, increase of budget funds allocated to CSOs, in particular in areas symbolically financed prior to establishment of the Office (human rights, minority protection, etc), as well as establishment of a decentralized mechanism of CSOs budget financing – after the centralized financing system started showing signs of atrophy.12 The advantages and risks of this mechanism of cooperation are shown in the table below: TABLE II ADVANTAGES OF THE OFFICE Focal point for cooperation government and the civil society. between RISKS the Encourages and promotes cooperation between the civil society and line ministries. Ensures higher mobility of public policy documents and legislative proposals relevant for the civil society. Ensures more efficient implementation of the legislation endorsed and public policies. Suitable mechanism for building confidence and strengthening partnerships between the government and CSOs. Suitable mechanism for civil society capacity building. Office established pro forma, so as to satisfy donor/EU interest, with minimum administrative capacities. Office serving as a pretext to other ministries not to cooperate with CSOs within their respective mandates. Vague operating procedures of the office and of allocation of funds. The person heading the office does not understand civil society and may do more harm than good. Participation of office in managing EU preaccession funds may weaken its focus on other significant tasks and its overall administrative capacities. Mechanism of managing pre-accession funds of EU for civil society development. 3.4. Civil Society Development Foundation Foundation for civil society development represents a successful example of this new mechanism of cooperation between Government and the civil society. This mechanism appeared in Croatia, in the second, mature phase of development of institutional cooperation 12 The Office of the Government of the Republic of Croatia for Cooperation with Cooperatives funded 1, 997 projects amounting to cca EUR 14 million in total in the period 1999-2003. 9 between the Government and the civil society. The foundation (endowment) was established by a special law in 2003 with the main objective to promote and develop civil society in the Republic of Croatia. The establishment thereof coincided with adoption of the Law on National Fund for Civil Society Development in Hungary that same year. However, this Fund will not be subject of further deliberations as it is primarily a (controversial) instrument of CSOs financing, though provision of financial support should be but one of the key aims of the Fund. The Foundation provides expert and financial support to programmes and projects promoting sustainability of non-profit sector, intersector cooperation, civic initiatives, philanthropy, volunteering and advancement of democratic institutions. From the legal aspect, the Foundation is a public legal entity. However, the majority of the Steering Committee members are representatives and experts in the area of civil society and not the representatives of the government. One seat in the Steering Committee is reserved for a representative of a local and regional self-government unit. The Foundation is financed from the budget – earmarked on the separate item of Office for Cooperatives, from the part of proceeds of lottery games and games of fortune (proportionally representing the most significant source of income for the Foundation), passive income from real estate, donations, etc. The annual and financial operation reports are endorsed by the Parliament of the Republic of Croatia. Despite certain initial overlaps in operation of the Foundation and the Office, the former ensured its distinctive place in strengthening capacities and establishment of partnerships with the civil society. To that effect, the Foundation champions and promotes initiatives for networking Croatian CSOs with EU umbrella organizations thus promoting their active participation in development of public policies at the EU level. Furthermore, the Foundation is particularly active in the area of social entrepreneurship, employment in the non-profit sector and public policy advocacy. The positive and negative experiences of the Foundation, and potential risks related to the model of public – legal foundation are presented in the table below: TABLE III ADVANTAGES OF FOUNDATION RISKS Enables genuine partnership between Government and the civil society, by way of mixed composition of the steering committee. Not necessarily an efficient mechanism for establishment partnerships with the civil society at its early stage of development, especially for fulfillment of commitments directly taken over by the Government, since the latter is not directly accountable for operation of the foundation (monitoring rather than a managerial function). Greater operational flexibility and capacity to swiftly respond to social needs relative to the body directly controlled by the Government. Plays an important role in better integration of the civil society of the candidate state with the umbrella CSOs operating at the EU institutions. Suitable mechanism for promotion of social entrepreneurship and civil society capacity strengthening. Risk of overlap of competencies between the foundation and the office for cooperation. Relative to the above, risk from excessive normativisation of the civil society. Requires higher seed capital than the office. 10 II. MECHANISM OF COOPERATION: SITUATION IN SERBIA 1. Introductory remarks Although there are no official data, it is estimated that there are between 20-25,000 associations registered in Serbia. According to the data of the Ministry of Culture, there are more than 700 registered legacies and fondations. In 2007, more than 60 million euros was allocated from the state budgget on account of support for civil society organizations (CSO).13 As of 2003, the Republic of Serbia has been allocating increasingly more resources for the work of CSOs: for example, the state allocated some 17 million eur for the 481 budget line in 2003, while the amount rose to 46 million in 2006. However, resources allocated for political parties, sports associations, religious organizations and „citizen associations and non-government organizations“ are also registered in this line, wherefore it is difficult to establish precisely which amount is allocated for each individual item.14 The Government- CSOs cooperation in Serbia is still in its initial phase. According to the results of the first empirical research of the civil society in Serbia, CIVICUS15, the majority of organizations consider it still to be very limited (47%), despite various forms of communication between the Government and CSOs. Over the recent years, the state and the CSOs communicated only as required, most often on the issue of EU integrations, poverty reduction and social policy, as well as sustainable local development. Therefore, the inter-sector cooperation to date reflects the situation of the society and the problems faced by Serbia in the process of political and economic transition. With the constitution of the new Government, Serbia expressed its strong commitment to European integration. In line with that, in his keynote speech to the Parliament on 7 July 2008, the Prime Minister Mirko Cvetković emphasized: „Providing appropriate mechanisms of cooperation between the state and civil society will have its rightful place in the area of establishing the rule of law”, and stated that it would represent one of the priorities in the future work of the Government of Serbia. Establishment of an institutional, legal and strategic framework for cooperation between these two sectors is therefore of vital significance, since the pluralistic democratic society is one of the prerequisites of a successful European integration process. The changes of attitude of the Government towards the organizations of the civil society were brought about by the Poverty Reduction Strategy (PRS) developed in 2002-2003. The process of PRS development gathered, for the first time, government institutions and the CSOs as well as representatives of business sector at the national and local levels around the preparation of a national strategic document of the Republic of Serbia. The number or organizations that took part in the consultative process made the drafting of this Strategy unique – more than 250 CSOs submitted their comments in the course of development of the Strategy. The process of Poverty Reduction Strategy implementation relies on four key principles that largely outlined and developed the framework of cooperation between the Government and CSOs thus far: linkages to the European integration process, integration of poverty reduction into reforms processes and stakeholders' activities, promotion of participatory approach to PRS implementation relying exclusively on the experience acquired in PRS development and stressing the PRS implementation at the local level. 13 Neprofitni sector, Bilten Centra za razvoj neprofitnog sektora, Beograd, Srbija, Broj 31, oktobar 2008 Ibid. 15 Civil Society in Serbia: Suppressed during the 1990s – Gaining Legitimacy and Recognition after 2000, ARGUMENT I Centre for Non-Profit Sector Development, Belgrade, 2006 14 11 2. Overview of the existing models of cooperation between the Government of Serbia and the civil society organizations There are different forms of cooperation between the Government and the civil society in Serbia. These entail individual cooperation agreements signed by Government agencies and CSOs, participation in development of national and local strategies and strategic documents, concluding contracts with CSOs for provision of services, sector development funds and permanent and ad hoc consultations. Notwithstanding success thus far, the key characteristics of the attitude of the Government to the civil society in Serbia remain fragmented cooperation, lack of understanding of the civil society and selective approach to CSOs16. The representatives of the civil society believe that there is more to the true dialogue than that, and that the cooperation of these two sectors entails also establishment of an institutional mechanism of cooperation. 1.Cooperation agreements. As stated above, signing of an agreement frequently represents the first step to establishment of a broader institutional mechanism of cooperation between government and the civil society. The best practice examples are the EU Integration Office of the Government of the Republic of Serbia (SEIO) and the Deputy Prime Minister’s Poverty Reduction Strategy Implementation Focal Point: these two Government agencies are very deserving for intensification and expansion of cooperation with the civil sector in recent years. The former establishes cooperation with CSOs on a formal Agreement, while the latter defines a partnership framework on the project level (Civil Society Focal Points). The work of these Government agencies and institutions proves that success is possible and that, based on this practice, today Serbia is sufficiently experienced to embark upon a new phase of cooperation with CSOs through improvement and systemic institutionalization of relations. 2. Participation in formulation of national and local strategies and strategic documents. The experience of Serbia has shown that the Government most often seeks partners among the CSOs in the phase of development of national and local strategies it is responsible for. There are currently over 40 national strategies in the formulation of which CSOs took part. The Poverty Reduction Strategy adopted in 2003 paved the way for CSOs participation in strategic processes. The Sustainable Development Strategy, National Action Plan for Children, Strategy on Ageing, national plans and actions for persons with disabilities and gender equality are but a few of the examples of CSOs participation in preparation of national development documents. Consequently, good practice of carrying out consultations in the course of development of strategic documents has been established. Thanks to their thorough insight into the situation at the local level and the problems of specific social categories, the CSOs are often involved in strategic planning and implementation of various local programmes. They are often partners in development of local sustainable development strategies and strategies of socio-economic development in cities and municipalities of Serbia, in drafting strategies for participation of citizens at the local level as well as local action plans for children and social policy. 3. Contracting services provided by CSOs. The majority of ministries in Serbia has programmes and funds providing for conclusion of agreements with CSOs with a view to provision of various services. The legal basis for this practice is on the line 481 of the Republican budget referring to CSO financing. Contracting is more or less present in sectors such as social welfare, health, education, employment, sports and youth, culture, science, etc. Thus, for instance, the Ministry of Youth and Sports invited the CSOs dealing with the issues of youth in Serbia to get involved in implementation of the Strategy for Youth. The Deputy Prime Minister’s PRS Implementation Focal Point signed contracts on cooperation with ten CSOs with the aim that the organizations, by networking further with civil society, 16 European Partnership for 2008, Official Journal of the European Union, 18 February 2008; Serbia 2007 Progress Report, Commission of the European Communities, November 2007 12 establish a wider partnership between the Government and CSOs in the PRS implementation process at the local level. One of the most successful models of contracting CSO services was applied by the Ministry of Labour and Social Policy through its Social Innovations Fund (SIF). The Fund has been financing CSOs projects aimed at promoting social welfare reforms and provision of services at a local level for years. It is funded from the budget with additional support from donors. The second fund that the Ministry manages is the Fund for Organizations of Persons with Disabilities. Various ensuing initiatives were based on the work of this Ministry. Other ministries also tend to engage CSOs in implementation of programmes of improvement of social and economic status of vulnerable categories. For instance, the Ministry of Health cooperates with the CSOs in improvement of the health of Roma, persons with HIV-AIDS; the National Employment Service commissions CSOs for carrying out of vocational trainings for the unemployed, while the Ministry of Interior cooperates with CSOs in training of employees for work with victims of violence. In the domain of contracting CSO services for monitoring Government activities and assessment of success of the government programmes, the cooperation remains sporadic. To date, this form of engagement was mainly piloted by the PRS IFP. In the course of time distinct mechanisms for involvement of CSOs in the process of monitoring of programme implementation and their evaluation have been identified. The Ministry of Labor and Social Policy was also engaged in setting up a model of CSO engagement in monitoring and evaluation of SIF projects and of the Fund for Organizations for Persons with Disabilities, but this has not yet been integrated into everyday, routine work of the Ministry. 4.Regional and metropolitan/municipal funds for non-profit sector development. The Fund for Development of Non-Profit Sector of AP Vojvodina was founded in 2004 and is the first of a kind in Serbia. The Fund finances projects aimed at promotion of CSO development and establishment of standardized cooperation between the local governments and CSOs. The objectives of the Fund are promotion of the culture of transparency and accountability in AP Vojvodina and strengthening of democratic values. Certain cities in Serbia such as Belgrade, Niš, Novi Sad, and Zrenjanin have also set up funds for promotion of CSO development but these are still at an early stage. 5.Forum for consultations. The theme Forum of the Parliament was initiated by the Poverty Reduction Committee of the Parliament of Serbia. The objective of the Forum is to enhance information dissipation to the members of Parliament about best practices and initiatives for resolution of problems identified during implementation. CSOs are permanent participants of this Forum. 6. Civil Society Council. The Council was established at the Prime Minister’s Cabinet two years ago as an advisory body to the Prime Minister on issues relevant to civil society. 7. Participation in legislative procedures. CSOs are occasionally consulted during the process of legislation drafting. This practice is especially implemented in the domain of social welfare and social policy. One of the most recent examples is the Law on Professional Rehabilitation and Employment of Persons with Disabilities, that gathered a considerable number of CSOs dealing with this issue. Furthermore, the Ministry of State Administration and Local Self-Government also harbors good practices of cooperation with CSOs; an example of best practice of this Ministry includes the work of development of a Draft Law on Associations, but also other legislative projects. Similarly, the Ministry of Culture is actively cooperating with CSOs in the development of a new law on endowments and foundations. The above examples are considered instances of a relatively successful Government-CSOs cooperation in Serbia. In the course of programmes' execution, the participants representatives of both sectors - faced numerous challenges. This suggests that the process of establishment of dialogue between the two is not easy. However, the analysis of existing plans and activities of the Government and its institutions indicates the possibility for continuous involvement and institutional cooperation with the CSOs. 13 3. Challenges for cooperation between the Government and the CSOs According to the European Union assessments17 , the civil society in Serbia faces numerous challenges. With respect to the status of civil society in Serbia, the following, acute, problems have been identified: Legislative framework. Serbia is late in reforming status legislation for CSOs. The Draft Law on Associations was submitted to the Parliament of the Republic of Serbia through accelerated procedure and is to be endorsed shortly. Further to the issues of status and legal issues, the Draft Law stipulates the procedure of allocation of budget funds to associations by the state agencies and local self-governments. However, this Law, once endorsed, will not resolve all the problems related to the status and sustainability of CSOs. Therefore, this Law is only one of the necessary steps towards an improved definition of framework for action and financing of CSOs. In addition to the Law on Associations, endorsement of other status laws, including a new law on endowments and foundations and the law on private institutions, is indispensable. Tax legislation. Contributions for community benefit are not sufficiently stimulated by tax legislation (primarily due to restrictive definition of community benefit activities), which unjustifiably discriminates associations relative to foundations, even when they execute identical statutory activities. Absence of institutional dialogue. The future participation of civil society organizations in the systematic dialogue with the Government of Serbia calls for higher transparency, consultative dialogue, conceptualized communication and regular exchange of relevant documents and information. With respect to that, the European Commission Report18 states that the mechanisms for consultations with public and provision of information about the Government work are underdeveloped. The Government should ensure implementation of the Law on Free Access to Information of Public Interest. The weaknesses in the process of law development prevent continuous insight of citizens into the status of laws, which is also detrimental on the rule of law. The number of consultations during the phase of development of laws is not adequate. One consequences of this type of approach is a low quality of numerous laws that require additional changes. The ensuing process of changing laws increases additionally the cost of law implementation and leads to insecurity among those who need to observe them. The civil society in Serbia is faced with continuous weakening. This has to do with the impotence of the sector to fulfill the criteria of continuous professional advancement and specialization in its operation. It is a significant obstacle to contracting services provided by CSOs, particularly so in small and underdeveloped areas. This additionally threatens small organizations which find it ever more difficult to survive as they cannot fulfill the conditions of their professional action. The other problems relate to development of the sector itself: the majority of organizations are located in cities, while their activity is hardly noticeable in smaller areas - rural areas, in particular. Consequently, the citizens have but modest information about the activities and significance of CSOs work. Economic problems. These problems are fundamental as they directly affect the operation of CSOs. Budget funds are limited to a small number of projects. Furthermore, foreign donations are also dwindling thus threatening the very existence of the majority of organizations of the civil society. The strong competition among organizations further weakens the positions of the sector relative to the Government. A practical challenge lies in facing with mutual requests for better communication between the CSOs and the Government. Due to a large number of organizations active in different sectors and areas, the Government finds it hard to establish cooperation with them. On the other hand, one EU – Srbia: Role of the Civil Society, Economic- Social Committee of the European Union, Brussels, June 2008 18 SIGMA – Policy Development and Coordination,Report of the European Commission for Serbia, May 2008. 17 14 group cannot represent the entire civil society so the issue of representativeness is posed again. CIVIKUS report characterizes the communication between CSOs as inadequate and limited. The number of networks and coalitions is also limited. Consequently, when the need appears for presence of a civil society representative in certain processes, the Government has difficulty in choosing individuals or organizations to represent the sector. Lack of cooperation between the Government and the organizations dealing with advocacy and human rights. Generally, the Government and the political structures in Serbia do not consider civil society organizations as partners. This is particularly true of CSOs dealing with sensitive issues from recent past or jeopardized rights of citizens. Government planning process is insufficiently developed. The annual Government planning process, although welcome, is very narrowly defined as a process in which contributions of individual ministries are collected and not as a process aimed at fulfilling collective priorities. In addition, the strategic planning system has neither been established nor linked to the budget process. Sector or inter-sector strategies abound but absence of an umbrella strategic framework for their development results in overlaps and fragmented policy creation. Although there is a growing awareness of the significance of cooperation between the Government and the civil society, the Government and its agencies face challenges in the process of establishment of an institutional dialogue with the civil society. Still, the fact that there is a growing awareness of the need for better policy development and coordination is encouraging. 4. Areas of cooperation between the Government and the CSO CSOs in Serbia operate in a large number of different areas such as sports and culture, education, health, politics, economic development. Their social roles differ depending on the motives that drive individuals to association and forming this type of organizations. A number of CSOs is primarily focused on provision of services financed to a considerable extent from state funds. The second segment is more focused on fulfillment of specific objectives of its members. Lastly, the third segment consists of organizations whose primary role is advocacy for social changes. This being said, a significant number of organizations has several roles at the same time, as in addition to providing certain types of services they also represent interests of certain vulnerable categories and lobby for broader social changes. Commenting on the role of civil society in Serbia, the European Committee for Economy and Society is of the opinion that the Government of Serbia should be supported in its efforts to strengthen the civil society. This would create a basis of a strong civil society as an indispensable element of a mature democratic society. In addition, the cooperation with CSOs has the following advantages: European integration. This has been partially discussed in the Chapter 1 of the Report. It should be noted that the experience of other countries notes the considerable contribution of CSOs to the information campaigns about the EU, particularly in rural and underdeveloped areas. Financial support should target development of the sector in this sphere. A transparent pattern of grants from the state budget needs to be developed in order to support other activities which are contributing to the overall progress of society. Continuous democratization of society and observance of human rights. According to the assessments conducted by EU19 and the World Bank20, the democratization index in Serbia should significantly improve in the process of EU accession. In this context, the role and work of CSOs is of paramount importance. Although the 2006 Constitution enshrines the values of 19 European Partnership for 2008, Official Journal of the European Union, 18 February 2008; Serbia 2007 Progress Report, Commission of the European Communities, November 2007 20 Country Partnership Strategy for the Republic of Serbia for the period 2008-2011, World Bank, November 2007 15 a modern and democratic society and observance of human rights, it has not been fully implemented as yet in many areas: judicial reform is slow, access to information of public interest is scant, functions and scope of ombudsman are inadequate, implementation of the law protecting the rights of citizens only partial. More than 1300 cases of human rights violations have been presented to the European Court of Human Rights, which is, inter alia, the consequence of the non-functioning of the Constitutional Court for more than two years. Fight against corruption. Although all the necessary laws have been adopted, limited progress has been made in the fight against corruption which constitutes a serious problem in Serbia. The Anti-Corruption Agency, the functionality of which is subject of different opinions, has not been established. Proper financial control, transparent procedures and public procurement monitoring, including the control role of the Parliament are far from desirable. Furthermore, the members of Parliament themselves are occassionally parties to financial abuses (fictitious transport and accommodation bills, etc). The problem of corruption and the perception of its omnipresence reduces the chances of Serbia both economically and investment-wise, for it is rated relatively low on the list of preferred destinations for market investments as the foreign investors still believe it to be a high-risk country.21 This is where CSOs can do a lot, publicly advocating for establishment of stronger mechanisms of control of authorities and systematic monitoring of operation of state agencies. Regional cooperation. The EU believes the role of Serbia in this process to be exceptionally significant. To that effect, the CSOs may encourage dialogue of Serbia and other countries in the region. The successful cooperation of CSOs may, in turn, inspire political leaders in the region. Despite the ever improving contacts among the organizations in the region, the cooperation has been slowed down by political obstacles and lack of funds. EU as the main donor of cross-border cooperation programs indicates this problem in its reports22. International cooperation. Key for future development of the civil society. The cooperation and linkages with organizations of EU member states is particularly relevant for all organizations dealing with human rights, environmental protection and gender equality. In addition, the CSOs' role in foreign policy activities should not be underestimated. A more intensive cooperation between the official diplomacy and „civil“ diplomacy may contribute to advancement of Serbian foreign policy and have a positive impact of the European integration process. Improvement of the situation in local communities and of marginalized groups. Owing to a greater flexibility and authentic non-profit motivation, the CSOs often manage to contribute to the general quality and access to services at the local level by providing services to the categories otherwise inaccessible to the state institutions – persons living with HIV/AIDS, sexual workers, drug addicts, patients with terminal illnesses, stigmatized groups. Also, different driving motives may result in promptness of CSOs to provide services in remote, inaccessible rural areas where it is difficult to secutre even the sheer presence of public services. Public awareness and information campaigns. The advantage of cooperation with CSOs relative to commercial companies may be their readiness to get involved into public awareness raising and information campaigns relevant for quality provision of services. In addition to provision of services, this type of CSOs' engagement also enhances their accessibility. Furthermore, these campaigns strengthen the position of vulnerable groups in the society and raise public awareness about particular social problems. There are many people, members of marginalized groups which are excluded from all the social security networks, who do not receive assistance due to lack of information, or because of their inability to seek direct assistance for one reason or another. Bearing in mind that accessibility 21 Country Partnership Strategy for the Republic of Serbia for the period 2008-2011, World Bank, November 2007 22 European Partnership for 2008, Official Journal of the European Union, 18 February 2008; Serbia 2007 Progress Report, Commission of the European Communities, November 2007 16 of social services is an essential feature of a good social welfare system, as well as the fact that services are often inaccessible to the most vulnerable categories such as Roma population, persons with disabilities, etc, this advantage of civil sector is exceptionally significant.23 Cooperation in the field of education. Experience thus far indicates that CSOs may contribute significantly to the quality of formal and informal education. Professional training of youth preparing them to enter the labor market, adult vocational training and advancement of preschool and primary school curricula are the fields where the cooperation between the two sectors may provide excellent results. Capacity building, organizing various trainings and seminars. A change of professional culture and attitudes of local government representatives and state sector employees is required in order to ensure a higher level of their responsiveness to the citizens, marginalized groups in particular and cooperation with CSOs. These changes are long-term, especially in the areas where different practices are deeply rooted. Organizing various types of trainings and seminars to advance knowledge of local and central government representatives, state institutions and CSOs is a prerequisite of that. CSOs are well positioned to provide this type of services. Involvement of civil society may also contribute to better functioning of state agencies in different areas and sectors and in all phases: Benefits of cooperation between Government and CSOs Development of programmatic measures and activities Insight into perspective of particular target groups. Insight into situation in local communities (problems, needs and resources). Ownership programmes activities of Government. of and the Planning and implementation Мonitoring Еvaluation Realistic attitude to planning – entails knowledge of needs and capacities at the local level. Stronger accountability of authorities to citizens. resource Perspective and specific knowledge about target groups (realistic indicators, facts based evaluation). Expanding knowledge of best practices. Participatory, qualitative approach to evaluation. Ensures additional resources (financial, volunteer) for provision of services. New methods and ideas for provision of services. Reduced corruption. Adequate allocation. Potential assistance in demonstration and verification of results. Enhanced efficiency in provision of services. CSOs involvement in implementation of Government programmes will contribute significantly to raising the quality of services and reducing the costs of implementation. CSOs stand ready to provide services also to the categories of beneficiaries not reached by anyone, and to develop services that the centralized state would neither be able to identify nor conceptualize. Engagement of volunteers, altruistic motives and primary focus on objectives and results, sometimes even without adequate compensation, definitely give an enormous advantage to the civil society. However, numerous prerequisites need to be put in place in 23 Role of Non-Governmental Organizations in Provision of Social Services (draft report), Gordana Matkovic, Centre for Liberal Democratic Studies, Belgrade, 2008 17 order to develop such a sector and reach this- somewhat idealistic - concept of its functioning. Identification of mechanisms is not a one-way process. The issue is not only what the Government can do, but also what is it that the Government and CSOs can do together. The capacity and readiness of civil society organizations to get involved is but one of the factors influencing the character of cooperation mechanisms, and this fact is to be particularly noted. 18 RECOMMENDATIONS FOR SERBIA: Starting from the present comparative and legal analysis and the analysis of situation in Serbia, there are sufficient arguments to ascertain a need for an institutional mechanism of cooperation between the Government and the CSOs. To that effect, and in view of the level of development of the civil society and cooperation practice thus far, establishment of a Government Office for Cooperation with the Civil Society represents an appropriate first step in the right direction. Should the Government – following public discussion and consultations with the civil society – opt for establishing the Office, the following should be taken into consideration in particular: Establishing the Office must not jeopardize the existing best practices and mechanisms of cooperation between individual ministries, other Government agencies and CSOs, but should seek to advance this cooperation. Establishing the Office must not result in stateism of the civil society: although the Office is, by virtue of its organization, part of the executive, its function should bring it nearer to ombudsman – that is, it should be “on the side” of the civil society. The mandate of the Office and the principles of cooperation should be defined flexibly, but explicitly, in order to avoid possible misunderstandings about its objectives and its role, as well as its authority in cooperation with the civil society. The founding act should stipulate that the Office, inter alia, promotes basic Constitutional rights and values (a society of equal opportunities, secularism, tolerance, minority rights protection, etc).24 The foundation act should identify the group of CSOs within the competence of the Office, but also identify those CSOs which, due to the nature of their objectives and the mandate of the Office, do not fall withing its scope of work. In cooperation with DACU within Ministry of Finance, the role of the Office in the process of European integration, including the possibility of its participation in programming IPA funds, needs to be defined. Due to the overall mandate that the Office is to have in cooperation with the civil society, it would be desirable that it start operating as a new institution, rather than a continuation of one of the current Government projects. The current, objective budgetary restrictions pose a challenge to the establishment of the Office. Therefore, the possibility of donor funding for establishment and start of functioning thereof must be explored. Croatian experience indicates the key aspect of selection of the head of office (“nothing can start without an individual, nor exist without an institution”, Jean Monet). The head of the Office should be a person experienced in working with the civil society and public administration, versed in the functioning of large donors–and trusted by the civil society. 24 This recommendation might call for additional clarification. Namely this formulation is required because the civil society in Serbia (and in other countries) is comprised of associations (registered and not registered) that basically seek to establish non-democratic order, supremacy of one race, nation, religion, abandoning secularism, etc. The recommendation recognizes the international legal committments, relevant judicial practice and standards that a state must observe relative to the delivery of rights to free association but, on the other hand, clearly stipulates that the state would support and harbour partnership relations only with the organizations that observe and advocate for fundamental Constitutional rights and values. 19 APPENDIX 1: Proposal of overall competencies of the Office: Initiate the adoption of regulations, other general instruments and public policy documents relevant to the legal and tax-related status of civil society organizations (CSO) and monitor and/or be responsible for the implementation of the regulations and policies thereof. Initiate dialogue with civil society on policy issues, in particular those in the immediate mandate of a ministry of another Government agency. Collect and distribute information relevant to CSOs, organize round tables, conferences, trainings, seminars, workshops and study tours, publish publications and undertake other measures and activities aiming at raising capacities and sustainability of CSOs. Informing the public on the process of cooperation between the Government and CSOs, promotion of cooperation; Coordinate and encourage cooperation between ministries, other Government agencies and Local Government bodies with CSOs. Conduct activities of education and professional advancement of the employed in public administration and local government units, as well as other stakeholders, on the issues falling in its mandate. Provide logistic and other support to advisory Government bodies in terms of the development of civil society. Conduct activities relating to cooperation and exchange of experiences with similar Government institutions abroad. Participate in programming of EU pre-accession funds supporting civil society (IPA Funds) and other, as required. Participation in activities regarding the monitoring and evaluation of EU projects Conduct other activities in its mandate. Provide techical assistance for the preparation of application documents for programs open for civil society organisations (particularly EU funds). 20