This document summarizes the main reform challenges for countries as identified by SIGMA monitoring results. It finds that while countries each have their own pathways, there are some common challenges across the region. The most challenging reforms are those ensuring accountability of the public administration and providing high-quality services to citizens and businesses. Setting coherent objectives and linking strategic planning to budgets are ongoing issues. Professionalization of civil servants, improving transparency and accountability, and strengthening fiscal and financial management also require additional focus.

1. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Country monitoring results:
main reform challenges for
the countries
Keit Kasemets
Deputy Head of SIGMA
4 December 2015, Paris

2. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
• Each country has its own challenges and own reform
pathway
• However, some general conclusions can be drawn
• There are challenges cross-cutting the whole region, so
countries share many key reform challenges
• Countries are in the middle of the reform process – in most
areas the regional average is a little below the baseline value
of 3 out of 5
• Legal framework and institutional set-up are almost there –
the key issue is ensuring practical delivery of reforms
• Most challenging are reforms for ensuring accountability of
the administration and providing high-quality services to
citizens and businesses
2
General outcomes
2

3. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Strategic framework (1)
• Reform objectives are key to success
 In most countries setting coherent measurable
reform objectives is still a challenge
 However, this is starting to change with the new
recently adopted reform plans
• Key issue is ensuring financial sustainability of
public administration reform
 Planning coherently for national budget and EU
assistance
3

4. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Strategic framework (2)
Costing of reforms – varies from 0% to 96% - as a
regional average 46% of the reforms are costed
0%
40.90%
94%
81%
63%
0%0% 0%
100%
0% 0%0%
20%
40%
60%
80%
100%
0 1 2 3 4 5 6 7
Share of resourced and costed
activities related to PAR measures
Ratio between planned PAR IPA
funding in the IPA sectoral
programme and the national
planning documents (2014)
4

5. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU Policy development and co-ordination (1)
• Central functions, apart from policy co-ordination, are
well established
• Consolidating medium-term planning system, in
particular sector policies, is a reform priority for the
Governments
5
25%
32%
67%
10% 11%
26%
49% 49%
16%
14%
21%
31%
67%
20%
25%
0%
20%
40%
60%
80%
100%
Annual implementation backlog of EI-
related commitments
Annual implementation backlog of planned
commitments in the central planning
document(s).
Annual backlog in developing sector
strategies.

6. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU Policy development and co-ordination (2)
Linking planning with the budget is a particular
challenge
6
1 1
2
1
0 0
0% 0%
42%
20%
0% 0%
0%
20%
40%
60%
80%
100%
0
1
2
3
4
5
0 1 2 3 4 5 6 7
Completeness of financial estimates in
sector strategies
Ratio between total funds estimated in
the sectoral strategies and total funding
identified for corresponding sectors within
the MTBF

7. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU Policy development and co-ordination (3)
• Evidence-based and inclusive policy making is
progressing
• Generally good national requirements for policy
development are not consistently followed, concerning
both analysis and consultation
7
3
2
3 3
1
3
2
3 3 3
4
2
4
2
3
2
0
1
2
3
4
5
Extent to which policy development process
makes the best use of analytical tools.
Extent to which public consultation is used in
developing policies and legislation.
Extent to which the interministerial
consultation process occurs.

8. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU Public service and human resource
management (HRM) (1)
Legal framework and institutional set-up is broadly in place – most
of the countries are about to finalise civil service reforms or have
already done so - success depends on implementation
80
1
2
3
4
5
Extent to which the scope of public
service is adequate, clearly defined
and applied in practice.
Extent to which the policy and legal
framework for professional and
coherent public service is
established and implemented.
Extent to which the institutional set-
up enables consistent HRM
practices across the public service.

9. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU Public service and human resource
management (2)
Professionalisation of civil servants, in particular senior civil
servants, remains a challenge that greatly determines the overall
performance of the administration
9
0
1
2
3
4
5
Extent to which recruitment of public
servants is based on the merit principle in
all its phases.
Extent to which the termination of
employment of public servants is based on
merit.
Extent to which political influence on the
recruitment and dismissal of senior
managerial positions in the public service is
prevented.
Extent to which the remuneration system of
public servants is fair and transparent and
applied in practice.

10. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU Accountability (1)
• Fiscal consolidation is a priority for most of the countries in the
region, it should create the need for a more efficient, performance
oriented and accountable administration
• Reorganisation and rightsizing efforts are imminent in several
countries; in general, administrations are still fragmented with
numerous government bodies, without clear accountability lines
For example, the number of bodies reporting directly to Council of Ministers,
Prime Minister or Parliament varies from 5 to 51, with an average of 32
10
0
1
2
3
4
5
Extent to which the
overall structure of
ministries and other
bodies subordinated to
central government is
rational and coherent.

11. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU Accountability (2)
• Several countries have launched extremely necessary reforms to
improve access to information
• Laws have been improved or new regulations put in place, main
shortcoming is weak monitoring over both implementation and
supervision of institutions
11
0
1
2
3
4
5
Extent to which the right to
access public information is
enacted in legislation and
applied in practice.

12. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU Service delivery (1)
• Paramount task for all countries has been, and still is, the
development and enforcement of a modern framework for
administrative procedures
12
0
1
2
3
4
5
Extent to which the legal
framework for good administration
is in place and applied

13. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU
Service delivery (2)
• Focus for many countries is improving
accessibility of services through development
of one-stop-shops and providing services
through one channel
• However, systematically ensuring the quality
of services and evaluating user satisfaction
needs additional focus in years to come
13

14. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU Public financial management (PFM) (1)
• Medium-term financial planning is a challenge for most countries.
Medium-term budgetary frameworks (MTBF) are mostly in place,
but in practice resource planning is annual and the links between
sector policy plans and MTBFs are weak or non-existent
• In PFM it is also about delivery - throughout the public
administration there is a strong focus on compliance with formal
rules and procedures, but there should be greater awareness of
the real purpose of these rules 14
0
1
2
3
4
5
MTBF strength index.
Fiscal rules strength index.

15. © OECD
AjointinitiativeoftheOECDandtheEuropeanUnion,
principallyfinancedbytheEU Public financial management (PFM) (2)
• Budget transparency and oversight is a challenge for most countries.
• The national parliaments do not play a strong role in scrutinising the use
of public finances and holding the Government to account; better use of
the Supreme Audit Institute (SAI) reports, which are not used enough,
would improve this significantly.
15
0
1
2
3
4
5
Extent to which the annual
budget proposal includes full
information at the time of
presentation to the
Parliament.
Extent to which in-year
financial reporting provides
full information and is made
publically available.
Extent to which the annual
financial report includes full
information and is made
available in time to the
Parliament.