GOVERNMENT OF THE REPUBLIC OF MOLDOVA
REPORT
ON PROGRESS
OF CENTRAL PUBLIC ADMINISTRATION REFORM
IN THE REPUBLIC OF MOLDOVA
January-June 2008
Policy Coordination and Aid Division
Personnel Policy Division
in the Government Office
Piata Marii Adunari Nationale
(National Assembly Square), 1
Chisinau, MD-2033
Republic of Moldova
tel.250-132; fax.250-259
web: www.rapc.gov.md
e-mail:
Chisinau - 2008
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TABLE OF CONTENTS
SUMMARY 2
FOREWORD 4
1. CENTRAL PUBLIC ADMINISTRATION REFORM PROGRESS 5
1.1. Central Public Administration Reorganization 5
1.2. Decision Making Process 10
1.3. Human Resource Management 13
1.4. Public Finance Management 16
1.5. Participation and Communication 17
1.6. Monitoring the Implementation Process 18
1.7. Summary of Costs Funded from the Trust Fund 19
1.8. Conclusions on the Implementation of the Action Plan and Necessary Corrective Actions 19
2. EXAMINING CENTRAL PUBLIC ADMINISTRATION REFORM 22
ANNEX no.1. LIST OF REORGANIZATIONS UNDERTAKEN IN CENTRAL PUBLIC ADMINISTRATION IN 2008 (January-June) 23
ANNEX no.2. DETAILED ANALYSIS OF THE FULFILLMENT OF THE ACTION PLAN OF CPA REFORM STRATEGY IN 2008 (January-June) 26
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SUMMARY
This report monitors the status of central public administration reform in the first term of 2008 and provides some corrective actions which need to be taken by Government in order to achieve the objectives of the Central Public Administration Reform Strategy (CPA Reform Strategy).
The monitoring of the CPR reform progress has lead to the following findings.
The CPA Reform Strategy progress is highlighted by carrying out a number of thorough functional and institutional reorganizations within Government, both at the level of Government Office and central specialized bodies and subordinated institutions. The civil service legislative and normative framework is being improved by passing the Law on the Civil Servant’s Code of Conduct and Law on Public Function and Status of Civil Servant. The central public administration capacity for policy making is being developed by creating the institutional system and introducing strategic planning.
Central Public Administration Reorganization. The progress in ministerial reorganization is substantive. Significant efforts were made to optimize the structure and number of authorized posts in ministries and subordinated institutions; ministries and central administrative authorities were merged. In the reporting period, the policy institutional system was strengthened by creating policy analysis, monitoring and evaluation units (some other 5 ministries were created in the reporting period). The institutional development plans were developed by 12 ministries. They are being developed in 3 ministries, Government Office and 11 central administrative authorities.
It should be mentioned that the legislative framework in central public administration hasn’t changed. Thus, the further reorganization of the central administrative authorities by subordinating them to ministries might be problematical.
Decision Making Process. The progress achieved in the decision making process is highlighted by setting a number of elements of the policy system. Efforts are to be made to create a coherent policy system. A system of reporting on the implementation of policy papers is being developed. At the same time, the policy planning process needs improving, while the policy impact assessment system is to be finalized and put into operation.
Human Resource Management. In the field of human resource management, notable progress was achieved in central public administration. Two laws of major importance were drafted and passed by Parliament: Law on Civil Servant’s Code of Conduct and Law on Public Function and Status of Civil Servant. The normative framework for enforcing these laws is being developed and is intended to improve the personnel procedures in civil service. Also, substantive efforts were made to develop the skills of civil servants by trainings organized with the support of the Trust Fund.
Given the limited capacities of Personnel Policy Division in the Government Office, the assistance of local and international consultancy is required for the development of personnel procedures needed to enforce the Law on Public Function and Status of Civil Servant.
It should be noticed that the development of the electronic informational system „Registry of Public Functions and Civil Servants” is delayed. It risks not to be finalized by the end of 2008.
Public Finance Management. Regarding the creation of an efficient and sustainable system of interaction between the policy making process and budgetary process a number of actions are to be taken to develop the necessary normative framework. Only a few actions have been initiated so far.
At the same time, with only 6 months left for finalizing the CPA Reform Strategy, we notice that three years is a too short period for fulfilling the Implementation Plan of the CPA Reform Strategy and annual Action Plans, which contain actions too ambitious for such a short period. Some of the actions will have not been completed by December 31, 2008. The practice of other countries proves that such reforms need from 5 to 8 years. That is why the Government is to define the priority actions for this year and to identify the actions which need to be left for 2009 – 2010.
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FOREWORD
The central public administration reform has been initiated and implemented according to the Government Decision no.1402 of 30 December 2005 „on the approval of the Central Public Administration Reform Strategy in the Republic of Moldova”, the components of which are:
· Central Public Administration Reorganization;
· Optimization of the Decision Making Process;
· Improvement of the Human Resource Management;
· Improvement of the Public Finance Management.
The central public administration reform is a priority for the Government of the Republic of Moldova intended to align the modern central public administration with the European standards, making it transparent, predictable, accountable and efficient.
In order to see if the implementation of the CPA Reform Strategy is efficient and meets the deadlines set and correlates with the financial resources planned, the Strategy implementation mechanism has been developed. It aims at:
· fulfilling the CPA Reform Strategy Implementation Plan and annual Action Plan;
· examining the progress of CPA reform by the Government Commission for CPA Reform (its functions have been taken over by the Inter-ministerial Committee for Strategic Planning) and the Consultative and Supervisory Committee for CPA Reform (the functions of which will be taken over by the National Council for Participation);
· coordinating permanently the actions set in the CPA Reform Strategy Implementation Plan and monitoring the implementation of the CPA Reform.
The Report on monitoring the CPA reform progress covering the period of January – June 2008 has been compiled according to point 3 of the Government Decision no.1402 of 30 December 2005 and the objective no. 14 of the 2008 Action Plan of the CPA Reform Strategy, approved by Government Decision no. 59 of 25 January 2008 and based on the annual information provided by ministries and other central administrative authorities and data collected during the field monitoring tours to central public administration authorities, as well as on the information provided by the Policy Coordination and Aid Division and Personnel Policy Division in the Government Office.
The structure of the report has been determined by the structure of the CPA Reform Strategy. The report has two chapters and two annexes, showing the progress recorded in the achievement of the CPA Reform Strategy objectives and actions set in its Implementation Plan in January – June 2008, as well as the main decisions of the Government Commission for CPA Reform and Consultative and Supervisory Committee for CPA Reform. The annexes contain the list of reorganizations undertaken in central public administration authorities and the analysis of the status of the measures set in the Action Plan in the reporting period.
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1. CENTRAL PUBLIC ADMINISTRATION REFORM PROGRESS
The Government Office, ministries and other central public administration authorities have worked on the achievement of the objectives of the Central Public Administration Reform Strategy and its 2008 Implementation Plan. This report presents the most important results achieved per each compartment of the central public administration reform.
1.1. Central Public Administration Reorganization
In the second quarter of 2008, the Government underwent a thorough reorganization leading to the merger of ministries and central administrative authorities, creation of a new ministry, modification of functions and duties. Changes were made in the structures, number of authorized posts and regulations of certain ministries and central administrative authorities; the competences of the central specialized bodies of public administration and subordinated institutions were delimited.
In the reporting period, Government approved 25 decisions and Parliament passed 3 laws, enabling the implementation of 40 actions of reorganization and delimitation of competences in central public administration authorities (see annex no.1 to the report). The annual evolution of the number of reorganizations in 2006-2008 is outlined in chart no.1.
In this respect, certain central specialized bodies of public administration have been reorganized according to the amendments and complements introduced to article 24 of the Law no.64-XII of 31 May on Government, adopted by Law no.49 – XVI of 7 March 2008 and Law no.63-XVI of 27 March 2008, as well as by Law no. 162-XVI of 9 July 2008. The following institutions have been removed from the Government structure: Ministry of Industry and Infrastructure, Standardization and Metrology Service, Agency for Constructions and Territorial Development and Ministry of Transportation and Road Administration. At the same time the following institutions have been introduced: Ministry of Constructions and Territorial Development and Agency of Transports.
It should be mentioned that the Ministry of Economy and Trade, Ministry of Finances and subordinated institutions (Service of Financial Control and Inspection, State Treasury and State Exchequer) have been reorganized. The Ministry of Defense, Ministry of Informational Development, Ministry of Agriculture and Food Industry and some of the subordinated institutions are still being reorganized.
The reorganizations resulted in the optimization of the number of authorized posts in the central public administration authorities (CPAA) and their subordinated institutions. In the central offices of ministries and other central administrative authorities the net-increase of personnel amounted to 44 persons in the first term of 2008. Chart 2 presents the decrease and increase in personnel number in ministries and other central administrative authorities.
At the same time, the institutions subordinated to ministries are being reorganized functionally and organizationally, this leading to the optimization of the personnel in central public administration. Presently, a number of reorganizations are being carried out:
- Reorganization (by merging) of the State Inspectorate for Seeds, State Inspectorate for Cereals and Panification Products, taking over the tobacco control functions from the Agro-Industrial Agency „Moldova-Tutun” (which is to be disbanded by Government Decision) and creation of the General Agricultural Inspectorate. The impact of these reorganizations will be the reduction of personnel number with 22 units.
- Reorganization of the State Service for Plant Protection and State Service for Phyto-sanitary Quarantine thus creating the Phyto-sanitary Agency. The impact of these reorganizations will lead to the reduction of personnel number with 80 units.
- Reorganization of 11 institutions and scientific organizations from the agricultural and food sector thus creating 5 organizations operating in the field of science and innovations subordinated to the Ministry of Agriculture and Food Industry and Academy of Sciences of Moldova.
From the beginning of CPA reform implementation till now, for the purpose of optimizing the personnel, the number of authorized posts has reduced substantially with 1694 units or by 39% in the central offices of the central public administration authorities. The evolution of the number of authorized posts (personnel units) in the central offices of ministries and other central administrative authorities in 2004-2008 is shown in chart 3.
One major Government objective is to keep the annual personnel costs in the budgetary sector within 10% of the GDP in 2008-2010. In this respect, it is planned to cut the number of authorized posts in civil service with 513 units and, respectively, the personnel costs with 25.6 million lei, according to the Action Plan of the Concept paper on the optimization of personnel number in budgetary sector in 2008-2010, approved by Government Decision no.239 of 29 February 2008.
For keeping optimizing and streamlining the central public administration, the Concept Paper on the new Government administrative system has been drafted. It comes with a new vision of the organization and functioning of the CPA authorities from functional and institutional point of view. The concept proposes the restructuring of the central executive and integration of all the central public administration authorities subordinated to Government in a new administrative system, which will guarantee the delimitation of policy development functions of policy implementation ones. The ideas outlined in the Concept will be reflected in the draft law on central public administration, which will fill the existing legislative gap in the field and will represent the unified legal framework for organizing CPA activity.
At the same time, the Government policy development capacities keep being developed. In the reporting period the Policy Coordination and Aid Division has been created in the Government Office as a result of the reorganization of the Policy Coordination Analysis Division with the approval of the new structure of the Government Office by Government Decision no.514 of 16 April 2008 on the approval of amendments and complements introduced to some Government decisions.
In order to have a streamlined policy planning, development, coordination, monitoring and evaluation process in January-June 2008 policy analysis, monitoring and evaluation divisions were created in the Ministry of Culture and Tourism, Ministry of Finances and Ministry of Economy and Trade, and the Policy Analysis, Monitoring and Evaluation Section in the Ministry of Informational Development. At the same time, the Ministry of Foreign Affairs and European Integration created the Policy Analysis, Monitoring and Evaluation Division within the Cabinet of the Minister, the Division for Political Affairs and Programs being therefore reorganized. In 2006-2008 (January-June) policy analysis, monitoring and analysis divisions/sections were created in 14 ministries:
- Ministry of Education and Youth,