DEVELOPMENT AND POVERTY DEVELOPMENT AND POVERTY REDUCTION STRATEGYREDUCTION STRATEGY

Snežana Mijušković, Deputy Minister of Labour and Social Welfare, Head of the PRSP M&E Unit

Thessaloniki, May 26-27, 2005

M o n t e n e g r o

Ongoing activitiesOngoing activities

Development and Poverty Reduction StrategyDevelopment and Poverty Reduction Strategy,, 20032003

(2004-2006)(2004-2006);;

Realization of projects within different sectors;Realization of projects within different sectors;

Strategic document referred to different problems Strategic document referred to different problems

solution – defined;solution – defined;

MMonitoringa onitoringa andand evaluation system – institutionalized;evaluation system – institutionalized;

Establishing prioritiesEstablishing priorities ( (methodology defined and work of methodology defined and work of

WGs reestablishedWGs reestablished))

Project statusProject status

Over Over 400 400 projects were definedprojects were defined (2004-2006) (2004-2006) Financial resources planned for realizationFinancial resources planned for realization

0

10

20

30

40

50

60

70

80

90

100

realized

underway

preparationphase

not realized

Forthcoming activities Forthcoming activities

Completing prioritization processCompleting prioritization process ( (regional conference, regional conference, national conferencenational conference));;

Publishing data on poverty profile for Publishing data on poverty profile for 20042004;; Developing First Progress Report; Developing First Progress Report; CCostingosting;; Making link with budget;Making link with budget; Continuation of the monitoring and evaluation activities;Continuation of the monitoring and evaluation activities; Defining system of indicatorsDefining system of indicators ( (determining values to be determining values to be

reachedreached))..

DPRSDPRS – – Labor marketLabor market - - characteristicscharacteristics

EmploymentEmployment – 154.300 – 154.300 personspersons (39 (39..9 % 9 % womenwomen) ) UnemploymentUnemployment - - Unemployment rateUnemployment rate – 22 – 22..3 %3 % - - Unfavorable ratio between employment and unemploymentUnfavorable ratio between employment and unemployment – 1:2 – 1:2..22 - - DurationDuration - - Gender inequalityGender inequality - - High share of youth in unemploymentHigh share of youth in unemployment - - Unbalance between offer and demand of labor forceUnbalance between offer and demand of labor force - - Regional disharmonyRegional disharmony - - Hidden employmentHidden employment - - High unemployment rate among vulnerable populationHigh unemployment rate among vulnerable population

DPRSDPRS – – Labor MarketLabor Market

GoalsGoals : :

1. 1. Labor legislation reformLabor legislation reform

2. 2. Stimulation of new employmentStimulation of new employment

3. 3. Development and SME sector capacity buildingDevelopment and SME sector capacity building

DPRSDPRS – – Labor marketLabor market – – Labor legislation reformLabor legislation reform

- - Making prerequisites for dynamic employment growth Making prerequisites for dynamic employment growth and greater labor force mobility;and greater labor force mobility;

- - Harmonization with ILO standards and EU regulations. Harmonization with ILO standards and EU regulations.

DPRSDPRS – – Labor marketLabor market - - Stimulation of new employmentStimulation of new employment

Stimulation of entrepreneurshipStimulation of entrepreneurship a) a) Increasing competence of enterprisesIncreasing competence of enterprises, , products and servicesproducts and services b) b) Stimulation of exportStimulation of export c) c) Creation of institutional framework for accelerated Creation of institutional framework for accelerated

entrepreneurship development entrepreneurship development Increasing new employmentIncreasing new employment a) a) Opening new jobsOpening new jobs b) b) Legalization of hidden employmentLegalization of hidden employment c) c) retraining and additional training of the unemployed and retraining and additional training of the unemployed and

redundancies redundancies d) d) Substitution of the work of non-residentsSubstitution of the work of non-residents Ensuring preconditions for newEnsuring preconditions for new, pr, primarily foreign investmentimarily foreign investment

DPRSDPRS – – Labor marketLabor market - - Development and SME capacity buildingDevelopment and SME capacity building

Increasing number of SMEs in private sectorIncreasing number of SMEs in private sector Increasing diversity among SMEs Increasing diversity among SMEs Increasing competenceIncreasing competence Increasing participation of SMEs in foreign strategic Increasing participation of SMEs in foreign strategic

alliances and arrangements of joint investmentsalliances and arrangements of joint investments Increasing SMEs share in GDPIncreasing SMEs share in GDP Increasing SMEs share in total employment Increasing SMEs share in total employment

DPRSDPRS – – Labor marketLabor market

IncreasingIncreasing RAE RAE employment employment

Increasing employment of the disabledIncreasing employment of the disabled

Increasing employment of refugees and IDPsIncreasing employment of refugees and IDPs

DPRSDPRS – – Labor MarketLabor Market - - effectseffects

Decreased unemployment rate Decreased unemployment rate (2002 – 24%, 2004 – (2002 – 24%, 2004 – 2222..3%)3%);;

““ProgramProgram on legalization of existing and new job on legalization of existing and new job creationcreation””;;

- - Decree on tax relieves for the unemployed Decree on tax relieves for the unemployed ((tax relieves tax relieves were related to were related to 59.566 personspersons));;

- - Decree on labor engagement of non-residents Decree on labor engagement of non-residents (2(2..55 € € per per dayday – – there werethere were 50.024 50.024 persons engagedpersons engaged))..

DPRSDPRS – – Labor marketLabor market - - limitationslimitations

Lack of financial resources for program implementation;Lack of financial resources for program implementation;

Underdeveloped monitoring mechanisms ;Underdeveloped monitoring mechanisms ;

Incompatibility of sectoral policies; Incompatibility of sectoral policies;

Lack of awareness of the limitations in the Budget resources;Lack of awareness of the limitations in the Budget resources;

Unbalance among average wage (195.2 Unbalance among average wage (195.2 €€ – 2004) – 2004), , poverty poverty

lineline 116.2 116.2 €€ consumer basket (244.07 consumer basket (244.07 €€ – 2004). – 2004).

Labor marketLabor market : : Policies of the Policies of the Government of MontenegroGovernment of Montenegro

““Program Program on continuing stimulation of new employment and entrepreneurship in on continuing stimulation of new employment and entrepreneurship in

MontenegroMontenegro” – ” – two credit line groups; two credit line groups;

““Legalization of existing and new job creationLegalization of existing and new job creation””;;

Preparation for quality improvement of the labor force offer Preparation for quality improvement of the labor force offer ((trainingtraining,, additional additional

training,training, retrainingretraining, speci, specializationalization));;

ProgramProgram on season employment; on season employment;

ProgramProgram on apprentice employment; on apprentice employment;

ProgramProgram of public works; of public works;

ProgramProgram on employment of non-residents; on employment of non-residents;

ProgramProgram on employment of the disabled; on employment of the disabled;

ProgramProgram on RAE employment; on RAE employment;

ProgramProgram on on profe professsionalne orsionalne orientation. ientation.

Monitoring and Evaluation UnitMonitoring and Evaluation Unit

www.mnprsp.vlada.cg.yu

e-mail: prsp@mn.yu

phone: ++ 381 81 482 494