Swiss Cooperation StrategySerbia 2018–2021

Cover picture

The start-up company Teodesk developed a workflow and project management software. This cloud-based software creates a unique network where one can share ideas, activities, start constructive debates, check project details and have an overview of employees’ performance.

During summer 2017, Teodesk organized an internship program for three international students. With their knowledge and experience in the marketing sector, interns contributed to researching and working together on strategies how to best place Teodesk on the global market, with an accent on America, Europe, and Russia.

On the photo: Slobodan - Co-founder of start-up company Teodesk, Cristine - intern from Brazil and Fleur - intern from Netherlands.

Project: Science and Technology Park Belgrade

Foreword

The stability and prosperity of the Western Balkan countries constitute a fundamental aim for Swiss foreign and security policy. Switzerland’s engagement in the region was initiated in the 1990s, when it provided humanitarian assistance and refuge for many people. Switzerland and the Balkans have developed close ties over the years, best documented by a sizeable diaspora living in Switzerland and an intensive cooperation programme. Close to 200,000 residents of Switzerland have family ties to Serbia.

Starting with humanitarian assistance in 1991, Switzerland’s cooperation with Serbia has grown into a large programme supporting the transition process. The new Swiss Cooperation Strategy 2018–2021 is rooted in the spirit of partnership between the governments of Switzerland and Serbia and reflects a strong commitment to further supporting the economic, social and political transition in Serbia, building on Switzerland’s long-term presence in the country and earlier achievements. Today, Switzerland is among the four largest bilateral cooperation partners. Serbia has achieved substantial progress in political and macroeconomic stability. Switzerland is determined to support the country in addressing remaining challenges in line with the priorities defined by its government in specific areas. The overall goal of the Swiss Cooperation Programme is to contribute to the progress of Serbia on its path towards regional and European integration, fostering efficient and effective democratic institutions and processes as well as inclusive

and sustainable growth. Cooperation will focus on three domains: governance, economic development and employment, and sustainable energy and resilient cities. Switzerland has relevant expertise and experience in these areas and can make an effective contribution. The foreseen financial commitments for the 2018–2021 period amount to CHF 105 million.

This document provides an overview of recent political and economic trends in Serbia and develops the rationale for Swiss-Serbian cooperation. Drawing on the achievements and experiences of past interventions, the new Swiss Cooperation Strategy 2018–2021 outlines the priorities and objectives for the upcoming period. It concludes with information about programme management, monitoring and steering.

The Swiss Cooperation Strategy 2018–2021 has been developed by the Swiss Agency for Development and Cooperation (SDC) and the State Secretariat for Economic Affairs (SECO), in close consultation with the Serbian government offices and civil society partners. Both institutions cooperate closely to coordinate in the implementation of their respective parts of the Cooperation Strategy.

We are confident that the goals and priorities set out in this strategy are highly relevant to Serbia’s sustainable development and to the well-being of its people.

Bern, January 2018

Swiss Agency for Developmentand Cooperation (SDC)

Manuel SagerDirector-General

Marie-Gabrielle Ineichen-FleischState Secretary

State Secretariat forEconomic Affairs (SECO)

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Abbreviations and acronyms

Aggregated reference indicator Business enabling environmentSwiss francsCommon outcome indicatorCivil society organisationDemocratisation, decentralisation and local governanceDisaster risk reductionEuropean Bank for Reconstruction and Development European Energy AwardSwiss Federal Audit OfficeEuropean UnionEuroGender-responsive budgetingInternational finance institutionsInternational Monetary FundInstrument for Pre-accession AssistanceInformation technologyKreditanstalt für WiederaufbauMonitoring System for Development-Related ChangesNon-governmental organisationOfficial development assistanceOrganisation for Economic Co-operation and DevelopmentPublic Expenditure and Financial AccountabilityPublic finance managementResults based managementSwiss Cooperation OfficeStanding Conference of Towns and MunicipalitiesSwiss Agency for Development and CooperationSustainable development goalState Secretariat for Economic AffairsState Secretariat for MigrationSocial Inclusion and Poverty Reduction UnitSmall and medium-sized enterprisesSerbian Progressive PartyState Tax AuthorityThematic reference indicatorValue added taxVocational education and training

ARI BEE CHF COI CSO DDLG DRR EBRD EEA EFK EU EUR GRB IFIs IMF IPA IT KfW MERV NGO ODA OECD PEFA PFM RBM SCO SCTM SDC SDG SECO SEM SIPRU SMEs SNS STA TRIVAT VET

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Table of contents

Abbreviations and acronyms 2

Table of contents 3

1. Executive summary 4

2. Country context 62.1. Political development 72.2. Economic development 72.3. Social and human development 7

2.3.1. Unaddressed emigration of highly-educated professionals 82.3.2. Persistent multi-dimensional inequality 8

2.4. Energy and climate developments 8

3. Rationale for cooperation between Switzerland and Serbia 9

4. Achievements and lessons learned 2014–2017 104.1. Governance 104.2. Economic development 104.3. Energy efficiency and renewable energy 114.4. Migration partnership 114.5. Lessons learned 12

5. Implications for the new Cooperation Strategy 2018–2021 13

6. Strategic orientation and Swiss priorities for 2018–2021 156.1. Overall goal 156.2. Governance 156.3. Economic development and employment 156.4. Sustainable energy and resilient cities 176.5. Transversal themes 186.6. Migration partnership 18

7. Programme management and implementation 19

8. Strategic steering 20

Annex 1: Results Framework Synopsis 21Annex 2: Results Framework 22Annex 3: Budget Allocations 32 Annex 4: Photo Legend 32

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1. Executive summary

Background: With the start of EU accession talks in 2014, Serbia has made an important step towards European integration. The number of adopted reforms is considerable and progress has been made in view of reforming parts of the Serbian public administration and the regulatory economic framework. Still , the pace of implementation of adopted reforms is modest and the accession process is expected to be arduous, awaiting the further development of relations between Belgrade and Pristina on the one hand and slowed down by EU-internal challenges on the other.

Serbia’s macro-economic outlook is generally positive. Good progress has been made with reducing the high budget deficit to 1.4% of GDP and slightly lowering the government debt to 70% of GDP. However, economic recession and the consequences of the floods in 2014 have slowed down improvements in living conditions. While modest GDP growth is projected, the fragile labour market and possible further government austerity measures are expected to put pressure on the well-being of Serbia’s citizens. Poverty and inequalities show no signs of decreasing. The unemployment rate has slightly diminished, but remains high at around 16%, even reaching 25% in rural areas and 40% among young people. Serbia is a country with a high rate of emmigration among highly-educated professionals, including young professionals.

On the bright side, recent reforms provide a promising framework for tackling unemployment and reforming part of the Serbian public administration. They are expected to improve public finance management, to introduce e-government and regulatory reforms, and to better regulate administrative procedures.

Switzerland has been a long-term partner with Serbia in transition cooperation and a valuable supporter of the Serbian reform agenda. It is now engaging in another four year period of cooperation and partnership with Serbia. The good bilateral relations are also helped by Switzerland’s large Serbian diaspora (close to 200,000) and the presence of 570 Swiss financed companies in Serbia.

Main goal of the Cooperation Strategy: The overall goal of the Swiss Cooperation Strategy is to contribute to efficient and effective democratic institutions and processes as well as inclusive and sustainable growth by supporting Serbia’s reforms and path to European integration for the benefit of all citizens. It focuses on three objectives:

Democratic, efficient and effective governance for the benefit of all people in Serbia.

Inclusive and sustainable economic growth and increased quality employment for all .

Increased energy sustainability and improved resilience of cities.

Actors and aid modalities: The Swiss Agency for Development and Cooperation (SDC) and the State Secretariat for Economic Affairs (SECO) are jointly responsible for transition assistance to Serbia. In addition to this, there is a Migration Partnership between the State Secretariat for Migration (SEM) and the Government of Serbia. The Swiss Cooperation Office, which is part of the Swiss Embassy in Serbia, is managing the Swiss Cooperation Programme. It maintains close working relations with the EU and other key donors. The implementation modalities will include contributions to important national actors (i .e. the Standing Conference of Towns and Municipalities and the Social Inclusion and Poverty Unit of the Serbian government), mandates with Swiss, international and local implementers, and cooperation with multilateral institutions (e.g. the UN, the IMF and the World Bank Group). The long-term goal (beyond this strategy) is to work primarily through the system in place in Serbia.

Today, Switzerland is among the four largest bilateral cooperation partners of Serbia and is well positioned to address key challenges at the central level, especially those related to economic reforms. Switzerland is also uniquely positioned in Serbia, being a non-EU country and strongly embedded at the local level. This gives Switzerland flexibility and a recognised knowledge of the challenges the country is facing, allowing it to develop tailor made responses and conduct evidence-based policy dialogue to influence reforms and their implementation, and to facilitate the dialogue between local and central government. Switzerland will also support

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efforts to achieve the Sustainable Development Goals (SDG) in Serbia.

All three domains on which the programme focuses will address gender and good governance as transversal themes. The Strategy is designed to benefit all citizens in Serbia, but it will also emphasise the inclusion of disadvantaged groups. Switzerland will support the mainstreaming of migration issues in development planning. It will

support migration governance and management, prevention of irregular migration and reintegration of returnees.

Resources: For the second strategy in a row, Switzerland plans to increase its budget for cooperation with Serbia. For the 2018–2021 period, planned commitments amount to CHF 105m.

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2. Country context

Serbia has declared EU membership a priority. In 2014, the largest and most populous (7 million people) of the former Yugoslav Republics entered into accession talks. However, the accession process is generally expected to be arduous because of the modest pace at which domestic reforms are being implemented and because relations between Belgrade and Pristina require further development, in addition to challenges within the EU. Serbia has so far opened 12 out of 35 negotiation chapters, and provisionally closed two. The coming years will be challenging for the Serbian government and citizens. The country will continue with democratisation while simultaneously dealing with a complex EU integration process.

Important progress has been made in view of reforming parts of the Serbian public administration. New laws, strategies and programmes are expected to improve public finance management (PFM), to introduce e-government and regulatory reforms, and to serve to better regulate administrative procedures, public salaries and the hiring of civil servants.

However, many state institutions are overstretched, further public sector reforms face numerous obstacles, there is insufficient consensus on decentralisation issues and the implementation of legislation is inconsistent. Regional development is still not high on the government’s agenda despite significant regional

disparities: in 2016, 13% of rural inhabitants were living in absolute poverty compared with 4% in urban areas. At local level, municipalities lack financial and human resources. Management and planning capacities are limited, and there is a high turnover among decision-makers and staff.

An imbalanced system of checks and balances is an additional challenge, and independence of judiciary and freedom of the media1 needs to be further improved. The legislative, oversight and representative functions of the National Assembly and local parliaments require strengthening, although efforts have been made to increase transparency. Serbia needs to step up the fight against corruption.2 Genuine progress towards establishing an enabling environment for civil society and citizens’ participation has yet to be made.

For now, the prospect of European integration is expected to ensure internal stability, and the international community continues to count on Serbia as a stabilising force within the Western Balkans. Serbia is trying to balance external relations with the EU, US, Russia and China, the four pillars of its foreign policy. A tendency towards regional instability could impact the status quo and spill over into Serbia, especially if paired with continued irregular migration flows from the Middle East.

Serbia is a secular state – three major religions (Serbian Orthodoxy 85%, Catholicism 5%, Islam 3%) enjoy equal rights and privileges before the state. The Serbian Orthodox Church is the most represented and influential .

1 According to Reporters Without Borders, European standards are still out of reach. Serbia ranks 66th in the 2017 World Press Freedom Index (of 180 countries) as opposed to 59th in 2016 and 67th in 2015.

2 In Transparency International’s 2016 Corruption Perceptions Index, Serbia scored 42 on a scale of 0 (highly corrupt) to 100 (very clean); Albania and Bosnia and Herzegovina scored 39 and Macedonia 37.

2.1. Political development

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The Government of Serbia has pursued fiscal, structural and regulatory reforms. The number of adopted reforms is considerable, but their implementation is mired by competing priorities and weak coordination. Good progress has been made in key macroeconomic indicators; the budget deficit , currently estimated at 1.4% of GDP, is at the lowest level since 2005, inflationary pressures are low, and the current account deficit is improving. Moreover, government debt has fallen slightly to 70% of GDP, although it remains high and is above the legal thresholds. Assuming that further efforts will sustain achieved results, Serbia’s macro-economic outlook is generally positive.

Serbia is an upper-middle income country. After a prolonged recession and negative growth rates, GDP growth picked up and was 2.8% in 2016; GDP per capita was EUR 4,700. Further progress has been made with a view to curbing the significant grey economy (30%) and developing a functioning market economy. In terms of economic integration, trade openness has increased and steps have been taken to ensure free movement of goods. The European Union is Serbia’s most important economic partner by far: 60% of exports flow into the EU.

The Serbian government recognises the importance of and has prioritised an improved business-enabling environment. Accordingly, the domestic business environment and

competitiveness of Serbian small and medium-sized enterprises (SMEs) is improving3, although access to finance remains a challenge. A knowledge-based economy based on skilled labour and innovations has proven to have a particularly high potential . On the downside, weak rule of law could negatively affect investments; economic power and jobs are concentrated in only a few regions.

The economic recession and devastating floods in 2014 have slowed down substantial improvements in living conditions. A modest projected GDP growth4, a fragile labour market and possible further government austerity measures as part of fiscal consolidation are expected to put pressure on the welfare and well-being of Serbia’s citizens.

At an average of EUR 380 per month, net salaries are among the lowest in Europe, reflecting a low labour productivity. Poverty-levels are high and show no signs of decreasing; one fourth of the population (2016) is at risk of poverty, especially unemployed persons, those with a low level of education and people living outside urban areas. Overall , 7.3%5 (2016) live in absolute poverty.

The unemployment rate has slightly decreased but remains high at around 16%, even reaching 25% in rural areas and 40% among young people. On the bright side, recent reforms provide a promising framework for tackling unemployment. A National Qualifications Framework for Vocational and Higher Education is under development and a comprehensive Employment and Social Reform Programme – the first of its kind – has been initiated, constituting a significant step forward. The 2030 Agenda could serve to encourage a multi-stakeholder dialogue on socio-economic development and prioritisation of SDGs in Serbia with reference to the EU negotiation chapters.

3 Serbia ranks 47th in the 2017 World Bank Doing Business Index (of 190 economies) up from 86th place in 2013 (Macedonia: 10th; Albania: 58th; Bosnia: 81st). Its ranking in the WEF Global Competitiveness Index improved from 101st place in 2013–14 to 90th place (of 148 countries) in 2016–17 (Macedonia: 66th; Albania: 74th; Bosnia: 107th).

2.2. Economic development

2.3. Social and human development

5 Due to changes in methodology, the percentage has decreasedfrom 9% in 2014 to 7.3% in 2016. Real decrease for the period has been 0.3%.

4 The Economist Intelligence Unit forecasts an average annualgrowth of 3.7% for 2017–21.

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Serbia is a country with pronounced emigration of highly-educated professionals, including young professionals – 60,000 Serbian nationals in 2015 according to the Organisation for Economic Cooperation and Development (OECD). The difficult economic situation, high unemployment, poor career prospects and declining living standards are the main push factors. Even so, no specific national policy addresses labour migration or serves to promote brain gain and circulation of knowledge. The movements of people looking for work are highly uneven across the regions in Serbia and are characterised mainly by employment in the grey economy.

Inequality in Serbia has a number of dimensions. Inequalities between rural and urban areas are high and lead to rural-urban migration. South and south-east Serbia, border areas and certain municipalities in western Serbia are particularly underdeveloped. Secondly, minority groups such as Roma (primarily rural Roma women) and persons with disabilities face discrimination. The financial and economic crisis significantly contributed to widening the gap between the winners and losers in reforms and the prolonged transition in Serbia. The poor are widely stigmatised in Serbia as being responsible for their own situation, making these citizens even more vulnerable. This is the

reason why the World Bank assessed that the potential distributional impacts of comprehensive structural reforms are likely to pose challenges to poverty reduction in the short term, requiring mitigating measures6. Furthermore, while there has been progress towards more wage equality, the labour market participation rate for women is still a key dimension of gender inequality.7

Women’s representation in local parliaments also needs some improvement to adhere to the 30% legal threshold.

As the new Prime Minister recently reiterated in her exposé, the Serbian government has shown commitment to reducing poverty and inequality, improving living standards and increasing social inclusion (raising the net income of social assistance beneficiaries, raising the minimum wage). Moreover, new institutions have recently been created, such as the Gender Equality and Roma Inclusion coordination bodies.

Energy sources in Serbia are mainly coal (68%), crude oil and gas. With the exception of hydro-power, renewable energy is at an early stage: in 2014, Serbia reported a 23% share of energy from renewable sources, compared with 21% in 2009. Within the framework of international targets and EU requirements, Serbia is committed to increasing the share of energy from renewable sources to 27% by 2020, to saving 9% in energy consumption by 2018 compared with 2008, and to reducing greenhouse gas emissions by 9.8% by 2030 compared with 1990. Serbia’s government is adapting the relevant policy and legislative framework, yet implementation is slow. The responsible central and local bodies are often understaffed and insufficiently coordinated, domestic and international funding is limited, the energy sector remains politicised, and there are few plans for large-scale investment.

2.3.2. Persistent multi-dimensional inequality

2.4. Energy and climate developments

6 Polarization and Populism, World Bank, 2016, https://openknowledge.worldbank.org/bitstream/handle/10986/25341/9781464810091.pdf?sequence=5&isAllowed=y

2.3.1. Unaddressed emigration of highly-educated professionals

7 Serbia ranked 70th of 144 countries in the 2016 WEF Global Gender Gap Index ‘economic participation and opportunity’ sub-index (score of 0.670) (0.00 = imparity; 1.00 = parity). Albania 73rd; Macedonia 79th and Bosnia 113th.

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Cooperation with eastern Europe is an integral component of Swiss foreign policy and foreign economic policy. Switzerland’s transition assistance in the region is founded on its tradition of solidarity with the poor and disadvantaged and on a mutual interest in inclusive socio-economic development, democratisation, regional stability and security, and European integration. As the economically strongest non-EU member of former Yugoslavia which borders on four of the former five Yugoslav Republics and Kosovo, Serbia and its citizens play an important role for the stability and integration of the region.

Switzerland has been a long-term partner with Serbia in transition cooperation and a valuable supporter of the reform agenda set by the Serbian government. Good bilateral relations are also a result of a large Serbian diaspora (close to 200,000) living in Switzerland and the presence of 570 Swiss financed companies in Serbia. Switzerland has provided uninterrupted humanitarian and transition support to Serbia since 1991, totalling CHF 350m. The SDC and SECO are jointly responsible for transition assistance to Serbia. With interventions covering all of its core competencies, the SECO portfolio in Serbia is its largest in the Western Balkans. In addition, through the Migration Partnership between Switzerland and the Government of Serbia8, the State Secretariat for Migration (SEM) is the third federal agency involved in this whole-of-government approach.

Cooperation in multilateral organisations complements Switzerland’s bilateral cooperation

and fosters relationships with Serbia on another level. Serbia is a long-standing member of the Swiss-led constituencies in the Bretton Woods Institutions (World Bank Group and IMF) and the European Bank for Reconstruction and Development (EBRD).

Since January 2017, the Swiss Cooperation Office (SCO) has been part of an integrated Swiss Representation. Combined with excellent bilateral relations, future cooperation with Serbia builds on Switzerland’s high credibility and recognised partnership approach as well as its support for inclusive local-level processes and complementary support for IPA funding schemes. The Swiss Cooperation Strategy 2018–2021 aligns fully with the Federal Dispatch on International Cooperation 2017–209, the SDGs, EU-accession-related reforms and relevant Serbian laws, policies and strategies.

The EU shapes the Serbian donor landscape as the country’s largest donor by far.10 Together with the Serbian ministry in charge of EU integration and donor coordination, the EU plays a large part in setting the agenda for reforms. Switzerland’s role has nevertheless increased along with more funding and the withdrawal of individual EU member countries. Switzerland is one of the most important bilateral donors together with Sweden, Germany and the United States.11 The SCO maintains close working relations with the EU delegation, other key bilateral donors and IFIs on vocational education and training (VET), PFM, energy, and governance, including migration and inclusion.

8 Switzerland and Serbia initially entered into a Migration Partnership in 2009. This partnership has been also guided by the Swiss Migration Partnership Strategy for the Western Balkan https://www.sem.admin.ch/dam/data/sem/internationales/internat-zusarbeit/bilaterales/keine-sr-nr/2016-2019-strategie-migpartner-WBALKAN-e.pdf

9 Dispatch on Switzerland’s International Cooperation 2017–20: https://www.eda.admin.ch/deza/en/home/sdc/strategy/legalbases/message-international-cooperation-2017-2020.html.

10 61% of total ODA of EUR 245m in 2015.

11 Each at 6 to 7% of total ODA in 2015.

3. Rationale for cooperation between Switzerland and Serbia

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Under the overall goal to contribute to “strong democratic systems, inclusion and enhanced competitiveness of Serbia’s economy in support of European integration” Switzerland achieved tangible results in its three domains of governance, economic development, and energy efficiency and renewable energy. The 2016 audit by the Swiss Federal Audit Office (EFK) of Swiss transition aid to Serbia confirmed the relevance of these domains to the priorities of the EU accession agenda and national reform policies. Total disbursements under the four-year Cooperation Strategy 2014–2017 amounted to around CHF 71m.

In the domain of governance (CHF 33m; 44%), Switzerland has contributed considerably to the process of Serbia’s European integration. Switzerland worked with the National Assembly and ten local assemblies to promote domestic accountability and institutionalise checks and balances. Thanks to Swiss support, the National Assembly is able to effectively oversee government spending through a financial portal; the number of public hearings in and outside the parliament seat has risen. Switzerland also supported exchange and cooperation between higher and lower levels of government in collaboration with the Standing Conference of Towns and Municipalities (SCTM), the association of all local governments in Serbia, and an intermediary between the central and local government level.

To balance socio-economic opportunities and reduce inequalities, Switzerland supported local governments’ access to more resources. Furthermore, Switzerland helped local governments to provide better public services and become more accessible to all citizens, despite fewer resources due to austerity measures. Through capacity building, 100 municipalities (out of 145) were able to increase their own revenues and the quality of and access to public services for at least 358,000 people of which 9,000 from vulnerable groups. Six pilot municipalities began to implement PFM reform action plans based on Public Expenditure and Financial Accountability (PEFA) assessments by introducing financial management and control systems, aligning strategic documents with programme budgeting and capital investment planning. Through its support for local public finance reforms, Switzerland contributed to enhancing Serbia’s preparedness for opening EU chapter 32 on financial control.

In cooperation with the Social Inclusion and Poverty Reduction Unit (S IPRU), social inclusion was mainstreamed in several national strategies and six EU negotiating chapters. 98 municipalities improved their services for more than 113,000 children, applying integrated principles of quality, inclusiveness, non-violence and anti-discrimination (of which 80% from vulnerable groups). A national gender strategy and an Index of Gender Equality, in line with EU methodology, were introduced.

The economic development domain (CHF 23m; 31%) emphasised macro-economic stability, an enabling business environment, sustainable trade and competitiveness, private sector development, and employment. Cooperation has greatly benefited from national ownership and leadership.

Switzerland contributed to the development and implementation of important national strategies – i .e. a PFM Reform Strategy, the Fiscal Strategy 2017–19 and a revised Public Debt Strategy. Furthermore, it facilitated the adoption and implementation of the Transformation Programme 2016–20 of the State Tax Authority. Tax revenue

4. Achievements and lessons learned 2014–2017

4.1. Governance

4.2. Economic development

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increased as a result of more efficient collection of VAT, in itself an indirect indicator of a reduction in the grey economy in the country.

Improvements to the business environment were made through regulatory reforms and new legislation for insolvency resolution. The resolution of over 300 insolvency cases resulted in the liberation of CHF 110m in blocked funds. Furthermore, e-government was piloted at local level: 16 electronic registries with more than 1,100 simplified administrative procedures have increased transparency, access to information, legal security and efficiency of the local administration. These improvements in economic governance serve as a model for national reforms.

Switzerland has contributed to increased employment and income opportunities. 4,200 jobs (35% for women) and an additional income of CHF 52.75m were generated in collaboration with the Science and Technology Park Belgrade and in south and south-west Serbia in the tourism, furniture, horticulture and traditional products sectors. Support for the Science and Technology Park has resulted in an innovative environment bringing together 58 high-tech companies working to accelerate technological development, export high-tech products and services and drive knowledge-based economic growth. The Serbian government will now replicate the model of the Science and Technology Park in other regions in the country. In south and south-west Serbia, 1,740 small-scale producers (out of which 650 rural women) entered production value chains thanks

to financial and advisory support and secured market access. As a result, beneficiaries and their families also enjoyed social benefits – i .e. health, unemployment and pensions insurance.

Private sector-responsive skills development for youth employment was strengthened through a contribution to implementing the government’s newly-adopted Employment and Social Reform Programme. Pilot models and curricula for private-sector-responsive skills development were developed in the furniture sector in partnership with private companies. They serve as demonstration projects for similar national-level initiatives and have influenced the Serbian vocational education system.

Switzerland contributed to important progress towards improved energy supply, increased energy efficiency and the promotion of renewable energy sources.

The energy efficiency and renewable energy domain (CHF 12m; 15%) provided support to the Serbian government for modernising a thermo-electric power plant, leading to an estimated decrease in CO2 emissions by 135,000 tonnes per annum. In Belgrade, energy efficiency measures in 12 public buildings, including hospitals and schools for socially-vulnerable groups, were completed, reducing CO2 emissions by a total of 993 tonnes per annum. First steps were taken to improve energy management at local level and, together with KfW, to promote renewable energy, notably biomass and geothermal, for heating mostly in poorer Serbian municipalities.

Collaboration under the Migration Partnership between Switzerland and the Government of Serbia has been very relevant in the challenging context. Thanks to the established Migration Partnership, the Government of Serbia was better prepared to address the 2015 migration wave on the Western Balkan Route.

Switzerland contributed to strengthening the migration management capacities of national

4.3. Energy efficiency and renewable energy

4.4. Migration partnership

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institutions for crisis management and core migration governance12. It played a role in improving reception capacities and registration of asylum seekers and the endorsement of an innovative dweller-driven house upgrading model for vulnerable migrants.

Overall , the three domains for Swiss cooperation proved pertinent, building on Switzerland’s comparative advantages and producing tangible results at the level of institutions and citizens, although some will only pay off in the future. Among the lessons learned, it is acknowledged that the ultimate goal must be to work through existing systems in Serbia. However, finding ways to increase the use of national systems has been challenging because of persistent bottlenecks and weak absorption capacities. Using capacitated local-level systems is promising. On national level, supporting strong partners which are closely connected to the government is an alternative and mitigates the risk of political interference.

Policy dialogue has been the key to scaling up and replicating results in order to accelerate the pace and quality of reforms and their implementation, enhancing ownership by all stakeholders to encourage successful reform processes. Sub-national interventions generate important evidence to this end. Policy dialogue with middle management has been less affected by the high government staff turnover. Switzerland is also well positioned in Serbia to facilitate the dialogue between the local and the central level and to influence corresponding reforms and their implementation.

With regard to the SDC portfolio, the geographic focus on south and south-west Serbia is pertinent in terms of reaching disadvantaged populations; however, a more differentiated look and categorisation of municipalities would improve targeting.

4.5. Lessons learned

12 Five building blocks for effective migration governance: 1) institutional capacity, 2) migrant rights, 3) safe and orderly migration, 4) labour migration management and 5) regional and international cooperation and partnerships, 2016 Migration Governance Index, Economic Intelligence Unit.

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The new Cooperation Strategy is based on the understanding that a sustained effort is required to accelerate the pace and quality of reforms and their implementation for the benefit of all.

The way the reform process is managed will be crucial for stability. Governance and structural economic issues top the list of challenges. Switzerland, in its three domains of intervention, is well positioned to help Serbia overcome these challenges. By concentrating its activities on the same domains of intervention as in the previous strategy, Switzerland is reinforcing its position as a reliable and credible partner, standing for continuity and long-term engagement.

Swiss cooperation will continue to align with EU accession priorities, relevant Serbian laws and selected national strategies. In addition, Switzerland will promote a multi-stakeholder dialogue on a long-term vision for Serbia within the framework of the universal 2030 Agenda for Sustainable Development and the SDGs.

Implementing EU-required reforms and the 2030 Agenda challenges not only the national, but also the local level. In the years to come, Switzerland will make even better use of its advantaged status as one of Serbia’s major bilateral donors and a non-EU country. It will emphasise targeted support for improving central-level framework conditions and continue to provide support for duty bearers and rights holders in the regions and municipalities. Switzerland is particularly well positioned to work at both, central and local

level, to find practical and tailor made solutions based on its long-term experiences.

A better structured and results-oriented policy dialogue on selected issues within domains of intervention, based on many years of experience in transition processes and development programmes, will play a substantially greater role for achieving desired results and contributing to national outcomes, especially with a view to establishing poverty reduction and inclusive economic growth as shared values.

Decentralised SDC interventions in governance and economic development will be implemented at regional and municipal levels with a specific geographical focus on south, south-west and south-east Serbia and on disadvantaged municipalities in other regions, including those with a considerable presence of minority groups. This has proved pertinent for reducing poverty and exclusion and for maintaining social peace. Switzerland will support the government’s efforts to increase economic growth, to reduce poverty, inequalities and exclusion, and to strengthen the national framework and mechanisms designed for these purposes.

In its programmes, work with and for the benefit of excluded groups will follow a differentiated approach – by intervention, location and sector. Distinct categories of excluded persons have been identified: women, youth, Roma, migrants and persons living with disabilities, especially in rural and high poverty concentration areas. Depending on specific contexts, and in consultation with municipalities, they will be at the centre of Swiss and especially SDC cooperation. Switzerland will continue to address gender inequality and the promotion of women systematically, supporting in particular women entrepreneurs and women’s parliamentary networks lobbying for gender equality at the local level.

5. Implications for the new Cooperation Strategy 2018–2021

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Compared with the previous strategy, the following portfolio adjustments are planned:

Civil society will play a stronger role with the aim of strengthening ties between civil society organisations (CSOs) and citizens to enhance their participation and ensure their voices are heard, especially outside Belgrade, including in a public dialogue on the SDGs with all layers of society.

Support for justice reform will not be extended given its limited influence and impact, the presence of larger donors and the need for a more targeted portfolio. In its place, access to justice for excluded groups at local level could be piloted from a social inclusion point of view.

Engagement in economic development and employment will increase given the great need for this and interest from the Serbian government. Contributions to local economic development will be fully embedded in this domain and the planned interventions related to trade promotion, youth employment, dual VET and private sector development will increase.

The former energy efficiency and renewable energy domain will put more emphasis on the institutional capacities of local-level actors to sustainably manage and plan their activities. The current focus on the energy sector will be broadened to cover urban development in general, making cities more resilient.

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The overall goal of the new Cooperation Strategy is for Switzerland to contribute to efficient and effective democratic institutions and processes as well as inclusive and sustainable growth by supporting Serbia’s reforms and path to European integration for the benefit of all citizens.

In the domain of governance, support from SDC and SECO for local governments, for legislative powers at national and local levels, and for civil society will contribute to bringing decision-making processes closer to the people.

Overall objective for this domain: Democratic, efficient and effective governance for the benefit of all people in Serbia.

Swiss portfolio outcomes:

Outcome 1: Responsive and accountable local governments for better services: Local authorities improve their management capacities and provide better, inclusive services in response to people’s and the private sector’s needs and demands.

Outcome 2: Strengthened institutional representation of all citizens and municipalities: The National Assembly and local parliaments are

more responsive to the needs and interests of their constituencies and engage in informed and constructive debate. Local governments’ interests are better taken into account in national policies.

Outcome 3: Improved citizen and CSO engagement: Informed citizens and CSOs engage in local decision-making, contribute to collaborative local governance initiatives and hold the government accountable.

Under Outcome 1, Switzerland will support capacity building of more local governments to generate and manage public resources in order to provide increased quality services in response to people’s and the private sector’s needs - e.g., through further e-governance solutions and improved budget planning. Local governments will also be supported to identify and target the specific needs of excluded groups.

Interventions under Outcome 2 aim to strengthen the representative and oversight roles of the National Assembly and local parliaments, and especially greater use of outreach and oversight mechanisms. Continued support for SCTM will further promote the interests of local governments in national laws and policies.

Finally (Outcome 3), Switzerland will build the capacities of local governments to consult and work with the civil sector. It will invest more in capacitating CSOs, especially those outside Belgrade, to better support and represent their constituencies vis-à-vis local governments.

Swiss engagement in economic development and employment will increase given the great need for this and interest from the Serbian government. In this domain, SDC and SECO cooperation aims to improve macro-economic institutions and framework conditions, and promote dynamic entrepreneurship, enhanced competitiveness, sustainable trade and market oriented skills development. These interventions will contribute to inclusive and sustainable economic growth and quality employment for all , in particular in rural areas.

6. Strategic orientation and Swiss priorities for 2018–2021

6.1. Overall goal

6.2. Governance

6.3. Economic development and employment

16

Overall objective for this domain: Inclusive and sustainable economic growth and increased quality employment for all .

Swiss portfolio outcomes:

Outcome 1: Strengthened macro-economic institutions: Key national public finance institutions improve their capacities, the financial system is strengthened, and PFM at national level is improved.

Outcome 2: Improved Business Enabling Environment: National and local authorities are implementing measures to improve the business enabling environment and access to finance at national and sub-national levels and to promote local economic development.

Outcome 3: Increased competitiveness: Entrepreneurship has become more innovative and competitive; entrepreneurs create more sustainable and inclusive trade and value chains, creating more and better jobs.

Outcome 4: Employability and employment: Young people benefit from inclusive and improved market-oriented skills development, which results in employment.

In order to achieve transparent, efficient and accountable PFM, Switzerland will provide technical assistance and engage in policy dialogue and donor coordination in support of

macro-economic reform programmes (Outcome 1). Switzerland will support the development of capacities of key national public finance institutions13 to drive and implement economic reforms, such as the Public Finance Reform Programme. It will provide technical assistance in the areas of public accounting, tax collection and management, government debt and risk management, disaster risk financing and governance finance statistics.

Under Outcome 2 in this domain, Switzerland aims to further improve the business environment and to promote national, regional and local economic development. To this end, Switzerland will support national reforms; it will strengthen national and local framework conditions and build local implementation capacities. Quality financial reporting in line with the acquis communautaire and good international practice, effective debt resolution, remittances management, access to financial services for underserved populations, and securing more discretionary funding for municipalities and rural areas will be at the centre of this portfolio.

Outcome 3 supports dynamic entrepreneurship, innovation, increased competitiveness and exports to Switzerland, the EU and regional markets. A focus will be put on strengthening value chains in the traditional agricultural products (e.g. raspberries), tourism and light processing industry sectors; sustainable trade, entrepreneurship in high-tech and innovation; income-generation by SMEs in rural areas (to reduce rural-urban migration); and on women’s labour-market participation.

Finally (Outcome 4), Switzerland will engage in multi-sectoral policy dialogue, donor coordination and on-the-ground projects to support the development of evidence-based employment policies and to expand and improve formal and non-formal vocational education and training (VET) options that respond to actual market needs. Switzerland will work with partners to introduce active labour market measures and career counselling. Private sector engagement will play an important role throughout, as will the employability of young people and other excluded groups.

13 Ministry of Finance, Tax Administration, Treasury, Public Debt Administration, Government Finance Statistics Office.

17

Enabling and piloting the use of renewable energy, supporting the implementation of energy efficiency measures and strengthening the capacities of selected municipalities to manage and plan their infrastructure will contribute to reaching national energy efficiency and renewable energy targets, thus further reducing CO2 emissions and improving the living conditions for Serbian citizens.

Overall objective in this domain: Increased energy sustainability and improved resilience of cities.

Swiss portfolio outcomes:

Outcome 1: Increased energy efficiency: Implementation of energy efficiency measures in public infrastructure and buildings in and by selected municipalities increases energy efficiency.

Outcome 2: Increased use of renewable energy sources: Energy providers / public utilities use more energy from renewable sources and innovative technologies, in particular for district heating systems.

Outcome 3: Increased resilience of cities: Improved planning and management of selected local self-governments, including targeted infrastructure measures, increases their resilience.

SECO will support rehabilitation and energy efficiency measures (Outcome 1) in selected public buildings, notably schools and hospitals, benefitting pupils, teachers, patients and medical staff. Infrastructure support will be complemented by creating greater awareness of the need to reduce energy consumption.

Under Outcome 2, Switzerland will implement investment projects to replace fossil fuels with renewable energy resources. Concretely, it will support selected district heating companies to switch to biomass and geothermal energy sources. Additional pilot projects will test and showcase alternative innovative technologies for future replication.

Outcome 3 is a new priority area. Capacity-building for municipal staff will improve their management capacities to sustainably implement infrastructure priorities. A focus will be on the energy sector with the introduction of the European Energy Award in four cities. Targeted infrastructure measures in disaster risk reduction and potentially urban development will also increase resilience of local self-government. Interventions will be complemented by activities implemented as part of SECO regional projects.

6.4. Sustainable energy and resilient cities

18

Given their importance in the Serbian context and Switzerland’s domains of intervention, the understanding of and work on good governance principles (in line with SDG 16) and gender equality (SDG 5) will be deepened and joint learning fostered.

Besides mainstreaming gender considerations throughout Swiss cooperation, gender gaps will be closed by way of targeted interventions – e.g., targeted vocational education and training for women, in particular young women, and support for women’s leadership in sustainable energy.

All domains will address systemic governance gaps (including in economic governance) at multiple levels and in collaboration with multiple actors – e.g. improving regulatory and institutional conditions; promoting adherence to good governance principles; and contributing to the balanced distribution of the division of labour between different government levels. Importantly, Swiss interventions will contribute to the fight against corruption. Among other things,

Switzerland will support local anti-corruption plans and the work of the Serbian chapter of the Global Organisation of Parliamentarians against Corruption.

Furthermore, inclusion and migration are important contextual issues. Inclusion will be mainstreamed, as appropriate, as part of the non-discrimination good governance principle in response to stagnating reforms and increasingly disillusioned citizens. Within the framework of the Migration Partnership Strategy Western Balkans 2016–19, Switzerland will promote mainstreaming migration into development planning, including access to quality services and basic rights. It will support migration governance and management, prevention of irregular migration and reintegration of returnees, in addition to improving the efficiency of remittances payments. The SCO will continue to collaborate closely with the SDC Global Programme on Migration and Development.

6.5. Transversal themes

6.6. Migration Partnership

19

Efficient and effective processes with the Serbian government are a precondition for successful Swiss-Serbian cooperation. Switzerland will apply the following programme management and implementation modalities:

Aid modalities: Switzerland will actively contribute to strengthening national framework conditions and creating an enabling environment for more local implementation and use of country systems. For the SDC, the past mix of aid modalities – i .e., local contributions (28%), international contributions (36%), local mandates (17%) and international mandates (19%) – has proven adequate. However, new interventions will increase the use of country systems at local level. While the international slot (first and foremost UN agencies) has been larger than the national portfolio (mainly central ministries), it is worth noting that Switzerland’s international partners also largely work through and aim to strengthen national and local counterparts and thus do not set up parallel structures.

Donor coordination: Scaling up and sustainability considerations deserve more attention in the preparation of new and current interventions. Good collaboration among the EU, multilateral organisations and key donors, aligned with national priorities, will be further exploited for more complementary and joint interventions and leverage. The SCO will continue to play an active role in selected formal donor coordination groups:

Switzerland is member of the public administration reform sector working group where the most influential donor is the EU

Switzerland leads the large and complex sector working group “Human resources and Social Development” where it promotes inter-ministerial and cross-cutting consideration of inclusion and gender equality

There is also a well-established donor coordination and dialogue with government institutions in VET, in which the SCO has played an important role

In the absence of government-led donor coordination, the SCO also informally coordinates with other donors, for instance in PFM and sustainable energy.

Synergies: Synergies across domains will be created through close cooperation on particular topics - e.g., as regards PFM reforms at local (governance domain) and national level (economic development domain), working to a large extent with the same local governments and, in some cases, with the same partners (e.g., SCTM and SIPRU).

Communication: Communicating Switzerland’s engagement and accomplishments is important and will be strengthened. A joint communication strategy for the integrated Swiss Representation establishes coherent messages and serves to communicate democratic values. The SCO will more actively promote the Swiss profile, Swiss value added and results orientation in its considerable international contributions.

Finances: Activities under this Strategy will be financed through the Swiss framework credit 2017–2020 for transition aid and cooperation with Eastern Europe. Swiss commitments are expected to increase to CHF 105m. The budget allocation for sustainable energy will remain identical and for governance approximately the same, the budget for economic development and employment will increase substantially and will be the largest domain in monetary terms, thanks to higher contributions from both the SDC and SECO. One percent of the SDC’s budget will be allocated to culture projects outside the capital city of Belgrade.

Despite an increase in budget, budget restrictions do not allow for the engagement of more human resources. It will therefore be extremely important for the SCO to concentrate its efforts on strategic priorities and wherever possible on fewer but larger programmes.

With generally decreasing donor aid and considerable financing needed to achieve the SDGs, leveraging alternative sources of financing is becoming more important. Stronger engagement with the private sector will therefore be piloted, including through diaspora investments and knowledge transfer, especially in the high-tech sector.

7. Programme management and implementation

20

The Cooperation Strategy monitoring system observes three dimensions: Swiss portfolio results, the country context and programme management. The purpose of the monitoring system is to provide crucial but selective information in a pragmatic manner and on a regular and timely basis to allow for informed programme steering decisions and corrective measures.

Monitoring against the expected results included in the domain results frameworks (see Annex 2) serves to assess the extent to which Swiss outcomes are being achieved and their contribution to selected country development outcomes. Monitoring data feed into annual reporting to SDC and SECO headquarters, thus ensuring transparency and accountability.

The monitoring system also offers an analysis of how the Cooperation Strategy adheres to the – evolving – country context, including the use of country systems, thus ensuring the Swiss portfolio’s continued relevance, using the MERV (Monitoring System for Development-Related Changes) instrument.

Programme management monitoring focuses on the efficiency and effectiveness of the Swiss Cooperation Office. Management targets reflect the best use of human and financial resources for achieving anticipated results. For this purpose, operational plans with objectives and indicators are developed and reviewed annually.

8. Strategic steering

21

Switzerland contributes to efficient and effective democratic institutions and processes as well as inclusive and sustainable growth by supporting Serbia’s reforms and path to European integration for the benefit of all citizens

Democratic, efficient and effective governance for the benefit of all people in Serbia

Inclusive and sustainable economic growth and increased quality employment for all

Increased energy sustainability and improved resilience of cities

Annex 1: Results Framework Synopsis

Overall Goal

Governance

DO

MA

INO

BJE

CT

IVE

SO

UT

CO

ME

ST

AT

EM

EN

TS

TR

AN

SV

ER

SA

L T

HE

ME

S

Gender & Good Governance

Migration partnership

Economic Development and Employment

Sustainable Energy and Resilient Cities

Responsive and accountable local governments for better services

Local authorities improve their management capacities and provide better and inclusive services in response to people’s and the private sector’s needs and demands

Strengthened institutional representation of all citizens and municipalities

The National Assembly and local parliaments are more responsive to the needs and interests of their constituencies and engage in informed and constructive debate. Local governments’ interests are better taken into account in national policies

Informed citizen and CSO engagement

Informed citizens and CSOs engage in local decision-making, contribute to collaborative local governance initiatives and hold the government accountable

Strengthened macro-economic institutions

Key national public finance institutions improve their capacities, the financial system is strengthened, and public finance management at national level is improved

Improved Business Enabling Environment

National and local authorities are implementing measures to improve the business enabling environment and access to finance at national and sub-national levels and to promote local economic development

Increased competitiveness

Entrepreneurship has become more innovative and competitive; entrepreneurs create more sustainable and inclusive trade and value chains, creating more and better jobs

Employability and employment

Young people benefit from inclusive and improved market-oriented skills development, which results in employment

Increased energyefficiency

Implementation of energy efficiency measures in public infrastructure and buildings in and by selected municipalities increases energy efficiency

Increased use of renewable energy sources

Energy providers/public utilities use more energy from renew-able sources and innovative technologies in particular for district heating systems

Increased resilience of cities

Improved planning and management of selected local self-governments, including targeted infrastructure measures, increases their resilience

22

Ann

ex 2

: Res

ults

Fra

mew

ork

Dom

ain

of in

terv

enti

on 1

: Gov

erna

nce

(SD

C, S

ECO

)O

vera

ll ob

ject

ive:

Dem

ocra

tic,

eff

icie

nt a

nd e

ffec

tive

gov

erna

nce

for

the

bene

fit

of a

ll pe

ople

in S

erbi

a

Impa

ct h

ypot

hesi

s: S

uppo

rtin

g lo

cal g

over

nmen

ts, l

egis

lativ

e po

wer

s at

nat

iona

l and

loca

l lev

el a

nd c

ivil

soci

ety

brin

gs d

ecis

ion-

mak

ing

proc

esse

s cl

oser

to

the

peop

le

(1) S

wis

s po

rtfo

lio o

utco

mes

Out

com

e st

atem

ent

1:

Resp

onsi

ve a

nd a

ccou

ntab

le lo

cal g

over

nmen

ts (L

G) f

or b

ette

r se

rvic

es: L

ocal

aut

horit

ies

impr

ove

thei

r man

agem

ent c

apac

ities

and

pro

-vi

de b

ette

r and

incl

usiv

e se

rvic

es in

resp

onse

to p

eopl

e’s

and

the

priv

ate

sect

or’s

need

s an

d de

man

ds.

Indi

cato

rs:

Prov

isio

n of

pub

lic s

ervi

ces

in li

ne w

ith

peop

le's

and

pri

vate

se

ctor

's n

eeds

and

dem

ands

(mod

if. S

DC

DD

LGN

RI9

): LG

s pr

ovid

ing

new

or i

mpr

oved

pub

lic s

ervi

ces

- Bas

elin

e (2

018)

: 0- T

arge

t val

ue (2

021)

: 100

out

of 1

68 L

Gs

Acc

ess

and

use

of p

ublic

ser

vice

s: N

o. o

f use

rs b

enef

iting

from

new

or

impr

oved

pub

lic s

ervi

ces

(gen

der d

isagg

rega

ted;

disa

ggre

gate

d by

ex-

clud

ed g

roup

s: ru

ral w

omen

, Rom

a, p

eopl

e w

ith d

isabi

litie

s an

d m

igra

nts)

(S

DC)

: - B

asel

ine

(201

8): 0

- Tar

get v

alue

(202

1): A

t lea

st 1

0,00

0 ou

t of w

hich

at l

east

2,0

00 fr

om

exc

lude

d gr

oups

; the

reof

65%

wom

en, 3

5% m

en

Impr

oved

bud

get

reso

urce

s fo

r LG

s: N

o. o

f sup

porte

d lo

cal a

utho

r-iti

es w

hich

hav

e be

nefit

ted

from

incr

ease

d bu

dget

reso

urce

s du

e to

loca

l ta

x in

com

e an

d pr

ivat

e in

vest

men

ts (S

DC

ARI

GO

2)- B

asel

ine

(201

7): 2

9 ou

t of 1

68 L

Gs

/ ad

ditio

nal t

o A

RI: p

rope

rty ta

x v

olum

e fo

r 40

partn

er m

unic

ipal

ities

(tbd

in 2

018)

- Tar

get v

alue

(202

1): 6

9 ou

t of 1

68 L

Gs

/ ad

ditio

nal t

o A

RI: p

rope

rty ta

x v

olum

e fo

r 40

partn

er m

unic

ipal

ities

incr

ease

by

25%

(tbd

in 2

018)

Key

indi

cato

rs a

s pe

r th

e PE

FA f

ram

ewor

k in

a s

elec

ted

set

of

mun

icip

alit

ies

(SEC

O S

I2):

Impr

ovem

ents

in th

e fo

llow

ing

PFM

are

as: b

) po

licy-

base

d bu

dget

ing,

c) p

redi

ctab

ility

and

cont

rol i

n bu

dget

exe

cutio

n,

e) fi

scal

risk

ove

rsig

ht, f

) int

erna

l aud

it, g

) fin

anci

al m

anag

emen

t and

co

ntro

l, h)

loca

l tax

adm

inist

ratio

n pe

rform

ance

- Bas

elin

e: 2

015

valu

es fo

r PEF

A in

dica

tors

PI-9

, PI-1

2, P

I-14,

PI-1

8, P

I-21,

P

I-24

- Tar

get v

alue

: Im

prov

emen

t in

the

corre

spon

ding

201

8 PE

FA in

dica

tors

(

PI-1

0, P

I-16,

PI-1

9, P

I-20,

PI-2

3, P

I-26,

PI-2

8)

No.

of

mun

icip

alit

ies

that

con

duct

ed (o

ne o

r m

ore

elem

ents

of)

a

gend

er b

udge

ting

pro

cess

(SD

C G

ende

r TRI

14)

: - B

asel

ine

(201

7): 3

- Tar

get v

alue

(202

1): A

t lea

st 8

0 LG

s ap

ply

GRB

(2) C

ontr

ibut

ion

of S

wis

s Pr

ogra

mm

e

LGs’

capa

citie

s ar

e bu

ilt a

nd/o

r stre

ngth

ened

for b

eing

acc

ount

able

and

ef

ficie

nt, f

or in

volv

ing

citiz

ens

in d

efin

ing

publ

ic s

pend

ing

prio

ritie

s, an

d fo

r fo

ster

ing

the

cond

ition

s fo

r loc

al e

cono

mic

dev

elop

men

t. LG

s ar

e su

ppor

ted

to b

uild

abs

orpt

ion

capa

citie

s, en

hanc

e ow

n re

sour

ces

from

pro

perty

tax

and

invo

lve

citiz

ens’

prio

ritie

s in

thei

r dec

ision

mak

ing

(c.f.

also

Out

com

e 3)

. Lo

cal g

over

nmen

ts a

re in

form

ed a

bout

thei

r rol

e in

real

izin

g an

d m

onito

ring

SDG

targ

ets.

All

the

abov

e le

ad to

mor

e an

d be

tter m

anag

ed p

ublic

reso

urce

s at

loca

l le

vel,

bette

r and

incl

usiv

e pu

blic

ser

vice

s fo

r all

men

and

wom

en w

ith

parti

cula

r atte

ntio

n fo

r sel

ecte

d ex

clud

ed g

roup

s in

Ser

bia,

and

a c

ondu

cive

en

viro

nmen

t for

loca

l eco

nom

ic d

evel

opm

ent.

Sinc

e pu

blic

fina

nce

man

agem

ent (

PFM

) ref

orm

s at

nat

iona

l and

loca

l le

vel a

re c

lose

ly re

late

d, c

lose

coo

pera

tion

betw

een

the

inte

rven

tions

fo

r Out

com

e 1

in D

omai

n 1

(gov

erna

nce)

and

Out

com

e 1

in D

omai

n 2

(eco

nom

ic d

evel

opm

ent a

nd e

mpl

oym

ent)

is re

quire

d.G

ende

r bud

getin

g su

ppor

t is

in th

e fra

me

of B

udge

t Sys

tem

Law

bin

ding

fo

r LG

s (w

hich

doe

s no

t ent

ail s

ocia

l bud

getin

g).

Stak

ehol

ders

(e.g

. SIP

RU) a

re s

uppo

rted

to in

tegr

ate

notio

ns o

f soc

ial

incl

usio

n in

pol

icy

and

law

mak

ing

proc

esse

s, re

sulti

ng in

legi

slatio

n th

at

appr

opria

tely

add

ress

es s

ervi

ces

for a

nd ri

ghts

of e

xclu

ded

grou

ps.

Mile

ston

es:

• M

unic

ipal

Fin

ance

Law

ince

ntiv

izes

pro

perty

tax

colle

ctio

n (L

Gs’

perfo

rman

ce ta

ken

into

acc

ount

in fi

scal

tran

sfer

s).

• Co

ordi

natio

n m

echa

nism

s be

twee

n ce

ntra

l and

loca

l gov

ernm

ents

ar

e st

reng

then

ed.

• Ev

iden

ce o

f goo

d go

vern

ance

is c

reat

ed th

roug

h pi

lots

.•

Switz

erla

nd e

ngag

es o

n es

tabl

ishin

g st

anda

rds

and

qual

itativ

e in

dica

tors

for m

unic

ipal

ser

vice

pro

visio

n.

Ass

umpt

ions

:•

LGs

utiliz

e su

ppor

t fro

m th

e SC

TM to

impr

ove

perfo

rman

ce.

• N

atio

nal g

over

nmen

t is

prep

ared

to im

plem

ent r

efor

ms

on th

e lo

cal

leve

l.•

The

lega

l fra

mew

ork

enab

les

impr

ovem

ent o

f pub

lic s

ervi

ces

and

its re

orga

nisa

tion

(e-g

over

nmen

t, as

soci

atio

n, in

ter-

mun

icip

al

coop

erat

ion,

join

t ser

vice

s, et

c.).

Risk

s: • Fr

eque

nt s

taff

turn

-ove

r and

lim

ited

hum

an re

sour

ces

in L

Gs.

• Bu

ilt u

p ca

paci

ties

are

lost

follo

win

g el

ectio

ns.

• In

suffi

cien

t fin

anci

al tr

ansf

ers

to L

Gs.

(3) C

ount

ry d

evel

opm

ent

outc

omes

Out

com

e st

atem

ent

1:

Impr

ovem

ent

of o

rgan

isat

iona

l and

fun

ctio

nal p

ublic

adm

inis

-tr

atio

n su

b-sy

stem

s. P

ublic

Adm

inist

ratio

n Re

form

Act

ion

Plan

(PA

RAP)

20

15-1

7 an

d fo

llow

up

docu

men

t; SC

TM s

trate

gic

plan

201

8-20

21;

Nat

iona

l Rep

orts

by

SIPR

U.

SDG

s 1.

3, 1

6.5,

16.

6 an

d 17

.1

PARA

P is

the

ultim

ate

gove

rnm

ent d

ocum

ent o

pera

tiona

lizin

g pu

blic

adm

inist

ratio

n re

form

stra

tegy

, inc

ludi

ng lo

cal g

over

nmen

t (LG

) ref

orm

s. It

also

com

prise

s pu

blic

finan

ce re

form

pro

gram

201

6-20

20 (r

elev

ant f

ield

s 4.

2, 4

.3, 4

.4 a

nd 4

.6) a

nd im

plem

enta

tion

of g

ood

gove

rnan

ce p

rincip

les

(thor

ough

ly e

labo

rate

d fo

r LG

s in

SCT

M s

trate

gic

plan

201

8-20

21).

Indi

cato

r: %

of P

ARA

P im

plem

enta

tion

annu

ally

- Bas

elin

e (2

016)

: 30%

impl

emen

ted;

34%

par

tially

impl

emen

ted;

36%

not

i

mpl

emen

ted

(pla

nned

for 2

016)

- Tar

get v

alue

(202

1): 1

00%

impl

emen

ted

(pla

nned

for 2

020)

Sour

ce: M

inist

ry o

f Pub

lic A

dmin

and

Loc

al S

elf-

Gov

ernm

ent (

MPA

LSG

) re

port

, EU

pro

gres

s re

port

, SC

TM re

port

Indi

cato

r: N

o. o

f use

rs o

f soc

ial c

are

serv

ices

- Bas

elin

e (2

016)

: 24.

450

- Tar

get :

no

natio

nal t

arge

ts

Sour

ce: R

epub

lic In

stitu

te fo

r Soc

ial P

rote

ctio

n re

port

Indi

cato

r: %

of i

ncre

ase

in p

rope

rty ta

x co

llect

ion

- Bas

elin

e (2

016)

: RSD

42.

38bn

- Tar

get v

alue

(202

1): t

o be

ass

esse

d (n

o na

tiona

l tar

get)

Sour

ce: M

inist

ry o

f Fin

ance

Indi

cato

r: P

EFA

indi

cato

r (pu

blic

exp

endi

ture

and

fina

ncia

l ass

essm

ent)

- Bas

elin

e (2

015)

: PEF

A A

sses

smen

t 201

5- T

arge

t val

ue (2

018)

: im

prov

ed k

ey P

FM in

dica

tors

in n

ext P

EFA

A

sses

smen

tSo

urce

: PEF

A A

sses

smen

t

Indi

cato

r: G

ende

r bud

getin

g (G

B) (B

udge

t Sys

tem

Law

)- B

asel

ine

(201

5): G

ende

r bud

getin

g in

pilo

ting

phas

e- T

arge

t (20

20):

GB

intro

duce

d in

at l

east

30%

of L

Gs

Sour

ce: N

atio

nal G

ende

r Equ

ality

Stra

tegy

201

6-20

20

23

(1) S

wis

s po

rtfo

lio o

utco

mes

Out

com

e st

atem

ent

1:

Resp

onsi

ve a

nd a

ccou

ntab

le lo

cal g

over

nmen

ts (L

G) f

or b

ette

r se

rvic

es: L

ocal

aut

horit

ies

impr

ove

thei

r man

agem

ent c

apac

ities

and

pro

-vi

de b

ette

r and

incl

usiv

e se

rvic

es in

resp

onse

to p

eopl

e’s

and

the

priv

ate

sect

or’s

need

s an

d de

man

ds.

Indi

cato

rs:

Prov

isio

n of

pub

lic s

ervi

ces

in li

ne w

ith

peop

le's

and

pri

vate

se

ctor

's n

eeds

and

dem

ands

(mod

if. S

DC

DD

LGN

RI9

): LG

s pr

ovid

ing

new

or i

mpr

oved

pub

lic s

ervi

ces

- Bas

elin

e (2

018)

: 0- T

arge

t val

ue (2

021)

: 100

out

of 1

68 L

Gs

Acc

ess

and

use

of p

ublic

ser

vice

s: N

o. o

f use

rs b

enef

iting

from

new

or

impr

oved

pub

lic s

ervi

ces

(gen

der d

isagg

rega

ted;

disa

ggre

gate

d by

ex-

clud

ed g

roup

s: ru

ral w

omen

, Rom

a, p

eopl

e w

ith d

isabi

litie

s an

d m

igra

nts)

(S

DC)

: - B

asel

ine

(201

8): 0

- Tar

get v

alue

(202

1): A

t lea

st 1

0,00

0 ou

t of w

hich

at l

east

2,0

00 fr

om

exc

lude

d gr

oups

; the

reof

65%

wom

en, 3

5% m

en

Impr

oved

bud

get

reso

urce

s fo

r LG

s: N

o. o

f sup

porte

d lo

cal a

utho

r-iti

es w

hich

hav

e be

nefit

ted

from

incr

ease

d bu

dget

reso

urce

s du

e to

loca

l ta

x in

com

e an

d pr

ivat

e in

vest

men

ts (S

DC

ARI

GO

2)- B

asel

ine

(201

7): 2

9 ou

t of 1

68 L

Gs

/ ad

ditio

nal t

o A

RI: p

rope

rty ta

x v

olum

e fo

r 40

partn

er m

unic

ipal

ities

(tbd

in 2

018)

- Tar

get v

alue

(202

1): 6

9 ou

t of 1

68 L

Gs

/ ad

ditio

nal t

o A

RI: p

rope

rty ta

x v

olum

e fo

r 40

partn

er m

unic

ipal

ities

incr

ease

by

25%

(tbd

in 2

018)

Key

indi

cato

rs a

s pe

r th

e PE

FA f

ram

ewor

k in

a s

elec

ted

set

of

mun

icip

alit

ies

(SEC

O S

I2):

Impr

ovem

ents

in th

e fo

llow

ing

PFM

are

as: b

) po

licy-

base

d bu

dget

ing,

c) p

redi

ctab

ility

and

cont

rol i

n bu

dget

exe

cutio

n,

e) fi

scal

risk

ove

rsig

ht, f

) int

erna

l aud

it, g

) fin

anci

al m

anag

emen

t and

co

ntro

l, h)

loca

l tax

adm

inist

ratio

n pe

rform

ance

- Bas

elin

e: 2

015

valu

es fo

r PEF

A in

dica

tors

PI-9

, PI-1

2, P

I-14,

PI-1

8, P

I-21,

P

I-24

- Tar

get v

alue

: Im

prov

emen

t in

the

corre

spon

ding

201

8 PE

FA in

dica

tors

(

PI-1

0, P

I-16,

PI-1

9, P

I-20,

PI-2

3, P

I-26,

PI-2

8)

No.

of

mun

icip

alit

ies

that

con

duct

ed (o

ne o

r m

ore

elem

ents

of)

a

gend

er b

udge

ting

pro

cess

(SD

C G

ende

r TRI

14)

: - B

asel

ine

(201

7): 3

- Tar

get v

alue

(202

1): A

t lea

st 8

0 LG

s ap

ply

GRB

(2) C

ontr

ibut

ion

of S

wis

s Pr

ogra

mm

e

LGs’

capa

citie

s ar

e bu

ilt a

nd/o

r stre

ngth

ened

for b

eing

acc

ount

able

and

ef

ficie

nt, f

or in

volv

ing

citiz

ens

in d

efin

ing

publ

ic s

pend

ing

prio

ritie

s, an

d fo

r fo

ster

ing

the

cond

ition

s fo

r loc

al e

cono

mic

dev

elop

men

t. LG

s ar

e su

ppor

ted

to b

uild

abs

orpt

ion

capa

citie

s, en

hanc

e ow

n re

sour

ces

from

pro

perty

tax

and

invo

lve

citiz

ens’

prio

ritie

s in

thei

r dec

ision

mak

ing

(c.f.

also

Out

com

e 3)

. Lo

cal g

over

nmen

ts a

re in

form

ed a

bout

thei

r rol

e in

real

izin

g an

d m

onito

ring

SDG

targ

ets.

All

the

abov

e le

ad to

mor

e an

d be

tter m

anag

ed p

ublic

reso

urce

s at

loca

l le

vel,

bette

r and

incl

usiv

e pu

blic

ser

vice

s fo

r all

men

and

wom

en w

ith

parti

cula

r atte

ntio

n fo

r sel

ecte

d ex

clud

ed g

roup

s in

Ser

bia,

and

a c

ondu

cive

en

viro

nmen

t for

loca

l eco

nom

ic d

evel

opm

ent.

Sinc

e pu

blic

fina

nce

man

agem

ent (

PFM

) ref

orm

s at

nat

iona

l and

loca

l le

vel a

re c

lose

ly re

late

d, c

lose

coo

pera

tion

betw

een

the

inte

rven

tions

fo

r Out

com

e 1

in D

omai

n 1

(gov

erna

nce)

and

Out

com

e 1

in D

omai

n 2

(eco

nom

ic d

evel

opm

ent a

nd e

mpl

oym

ent)

is re

quire

d.G

ende

r bud

getin

g su

ppor

t is

in th

e fra

me

of B

udge

t Sys

tem

Law

bin

ding

fo

r LG

s (w

hich

doe

s no

t ent

ail s

ocia

l bud

getin

g).

Stak

ehol

ders

(e.g

. SIP

RU) a

re s

uppo

rted

to in

tegr

ate

notio

ns o

f soc

ial

incl

usio

n in

pol

icy

and

law

mak

ing

proc

esse

s, re

sulti

ng in

legi

slatio

n th

at

appr

opria

tely

add

ress

es s

ervi

ces

for a

nd ri

ghts

of e

xclu

ded

grou

ps.

Mile

ston

es:

• M

unic

ipal

Fin

ance

Law

ince

ntiv

izes

pro

perty

tax

colle

ctio

n (L

Gs’

perfo

rman

ce ta

ken

into

acc

ount

in fi

scal

tran

sfer

s).

• Co

ordi

natio

n m

echa

nism

s be

twee

n ce

ntra

l and

loca

l gov

ernm

ents

ar

e st

reng

then

ed.

• Ev

iden

ce o

f goo

d go

vern

ance

is c

reat

ed th

roug

h pi

lots

.•

Switz

erla

nd e

ngag

es o

n es

tabl

ishin

g st

anda

rds

and

qual

itativ

e in

dica

tors

for m

unic

ipal

ser

vice

pro

visio

n.

Ass

umpt

ions

:•

LGs

utiliz

e su

ppor

t fro

m th

e SC

TM to

impr

ove

perfo

rman

ce.

• N

atio

nal g

over

nmen

t is

prep

ared

to im

plem

ent r

efor

ms

on th

e lo

cal

leve

l.•

The

lega

l fra

mew

ork

enab

les

impr

ovem

ent o

f pub

lic s

ervi

ces

and

its re

orga

nisa

tion

(e-g

over

nmen

t, as

soci

atio

n, in

ter-

mun

icip

al

coop

erat

ion,

join

t ser

vice

s, et

c.).

Risk

s: • Fr

eque

nt s

taff

turn

-ove

r and

lim

ited

hum

an re

sour

ces

in L

Gs.

• Bu

ilt u

p ca

paci

ties

are

lost

follo

win

g el

ectio

ns.

• In

suffi

cien

t fin

anci

al tr

ansf

ers

to L

Gs.

(3) C

ount

ry d

evel

opm

ent

outc

omes

Out

com

e st

atem

ent

1:

Impr

ovem

ent

of o

rgan

isat

iona

l and

fun

ctio

nal p

ublic

adm

inis

-tr

atio

n su

b-sy

stem

s. P

ublic

Adm

inist

ratio

n Re

form

Act

ion

Plan

(PA

RAP)

20

15-1

7 an

d fo

llow

up

docu

men

t; SC

TM s

trate

gic

plan

201

8-20

21;

Nat

iona

l Rep

orts

by

SIPR

U.

SDG

s 1.

3, 1

6.5,

16.

6 an

d 17

.1

PARA

P is

the

ultim

ate

gove

rnm

ent d

ocum

ent o

pera

tiona

lizin

g pu

blic

adm

inist

ratio

n re

form

stra

tegy

, inc

ludi

ng lo

cal g

over

nmen

t (LG

) ref

orm

s. It

also

com

prise

s pu

blic

finan

ce re

form

pro

gram

201

6-20

20 (r

elev

ant f

ield

s 4.

2, 4

.3, 4

.4 a

nd 4

.6) a

nd im

plem

enta

tion

of g

ood

gove

rnan

ce p

rincip

les

(thor

ough

ly e

labo

rate

d fo

r LG

s in

SCT

M s

trate

gic

plan

201

8-20

21).

Indi

cato

r: %

of P

ARA

P im

plem

enta

tion

annu

ally

- Bas

elin

e (2

016)

: 30%

impl

emen

ted;

34%

par

tially

impl

emen

ted;

36%

not

i

mpl

emen

ted

(pla

nned

for 2

016)

- Tar

get v

alue

(202

1): 1

00%

impl

emen

ted

(pla

nned

for 2

020)

Sour

ce: M

inist

ry o

f Pub

lic A

dmin

and

Loc

al S

elf-

Gov

ernm

ent (

MPA

LSG

) re

port

, EU

pro

gres

s re

port

, SC

TM re

port

Indi

cato

r: N

o. o

f use

rs o

f soc

ial c

are

serv

ices

- Bas

elin

e (2

016)

: 24.

450

- Tar

get :

no

natio

nal t

arge

ts

Sour

ce: R

epub

lic In

stitu

te fo

r Soc

ial P

rote

ctio

n re

port

Indi

cato

r: %

of i

ncre

ase

in p

rope

rty ta

x co

llect

ion

- Bas

elin

e (2

016)

: RSD

42.

38bn

- Tar

get v

alue

(202

1): t

o be

ass

esse

d (n

o na

tiona

l tar

get)

Sour

ce: M

inist

ry o

f Fin

ance

Indi

cato

r: P

EFA

indi

cato

r (pu

blic

exp

endi

ture

and

fina

ncia

l ass

essm

ent)

- Bas

elin

e (2

015)

: PEF

A A

sses

smen

t 201

5- T

arge

t val

ue (2

018)

: im

prov

ed k

ey P

FM in

dica

tors

in n

ext P

EFA

A

sses

smen

tSo

urce

: PEF

A A

sses

smen

t

Indi

cato

r: G

ende

r bud

getin

g (G

B) (B

udge

t Sys

tem

Law

)- B

asel

ine

(201

5): G

ende

r bud

getin

g in

pilo

ting

phas

e- T

arge

t (20

20):

GB

intro

duce

d in

at l

east

30%

of L

Gs

Sour

ce: N

atio

nal G

ende

r Equ

ality

Stra

tegy

201

6-20

20

Out

com

e st

atem

ent

2:

Stre

ngth

ened

inst

itut

iona

l rep

rese

ntat

ion

of a

ll ci

tize

ns a

nd

mun

icip

alit

ies:

The

Nat

iona

l Ass

embl

y an

d lo

cal p

arlia

men

ts a

re m

ore

resp

onsiv

e to

the

need

s an

d in

tere

sts

of th

eir c

onst

ituen

cies

and

eng

age

in

info

rmed

and

con

stru

ctiv

e de

bate

. Loc

al g

over

nmen

ts’ i

nter

ests

are

bet

ter

take

n in

to a

ccou

nt in

nat

iona

l pol

icie

s.

Indi

cato

rs:

Publ

ic p

erce

ptio

n of

the

Nat

iona

l Ass

embl

y (S

DC

DD

LGN

RI2

): Co

mpo

site

inde

x of

Pub

lic P

erce

ptio

n of

Par

liam

ent’s

Pla

ce a

nd R

ole

in

Serb

ia (g

ende

r disa

ggre

gate

d):

- Bas

elin

e (2

015)

%: p

ositi

ve 2

9, n

eutra

l 31,

neg

ativ

e 40

- Tar

get (

2021

) %: p

ositi

ve 3

4, n

eutra

l 29,

neg

ativ

e 37

Publ

ic p

erce

ptio

n of

loca

l par

liam

ents

(SD

C D

DLG

N R

I2):

Loca

l A

ssem

bly

Acc

ount

abilit

y in

dex:

- Bas

elin

e (2

016)

: 2.7

62 (a

vera

ge v

alue

of 2

5 LG

s)- T

arge

t val

ue (2

021)

: 2.9

Part

icip

ator

y re

form

s: P

ublic

pol

icie

s, le

gisla

tion

and

refo

rm

prog

ram

mes

for d

ecen

tralis

atio

n an

d lo

cal g

over

nanc

e ar

e in

crea

singl

y de

velo

ped

thro

ugh

broa

d-ba

sed

cons

ulta

tions

with

rele

vant

sta

keho

lder

s (m

odifi

ed S

DC

DD

LGN

RI1

2)- B

asel

ine

(201

7): T

he L

G re

form

s ha

ve b

een

initi

ated

; how

ever

, the

re is

no

dec

entra

lisat

ion

stra

tegy

. Cen

tral g

over

nmen

t con

sults

LG

s on

an

ad h

oc

bas

is. T

he im

plem

enta

tion

of L

G re

late

d la

ws

is st

ill lim

ited.

- T

arge

t val

ue (2

021)

: Set

of n

ew/im

prov

ed p

olic

ies

and

law

s fo

r LG

r

efor

m p

repa

red.

LG

s/SC

TM c

ontin

uous

ly le

ad d

ialo

gue

with

the

cent

ral

gov

ernm

ent a

nd re

leva

nt p

arlia

men

tary

com

mitt

ees,

and

parti

cipa

te in

E

U a

cces

sion

and

IPA

pla

nnin

g pr

oces

ses.

Out

com

e st

atem

ent

3:

Info

rmed

cit

izen

s an

d CS

Os

enga

ge in

loca

l dec

isio

n-m

akin

g,

cont

ribu

te t

o co

llabo

rati

ve lo

cal g

over

nanc

e in

itia

tive

s an

d ho

ld

the

gove

rnm

ent

acco

unta

ble.

Indi

cato

rs:

Part

icip

ator

y bu

dget

pro

cess

es: %

of m

unic

ipal

ities

that

org

aniz

e pu

blic

hea

rings

and

deb

ates

(PD

B) o

n bu

dget

s - B

asel

ine

(201

5): 6

3/16

8 of

all

LGs

orga

nize

PD

B; 4

2/16

8 an

noun

ce P

DB

in

adv

ance

; 6/1

68 re

port

to th

e pu

blic

on

PDB

outc

omes

- Tar

get v

alue

(202

1): 8

4/16

8 of

all

LGs

orga

nize

PD

B on

loca

l bud

get;

25/

168

orga

nize

PD

B ac

cord

ing

to b

est p

ract

ices

Effe

ctiv

enes

s of

col

labo

rati

ve lo

cal g

over

nanc

e in

itia

tive

s: N

o.

of p

eopl

e w

ithin

targ

eted

LG

s w

ho b

enef

it fro

m s

ervi

ces

and

initi

ativ

es

prov

ided

by

CSO

s an

d/or

thro

ugh

partn

ersh

ips

betw

een

CSO

s an

d pu

blic

en

titie

s- B

asel

ine

(201

8): 0

- Tar

get v

alue

(202

1): A

t lea

st 1

0,00

0 of

whi

ch a

t lea

st 2

,000

from

e

xclu

ded

grou

ps; t

here

of 6

5% w

omen

, 35%

men

By s

treng

then

ing

repr

esen

tativ

e in

stitu

tions

Sw

itzer

land

con

tribu

tes

to

impl

emen

ting

the

law

s an

d m

echa

nism

s of

repr

esen

tatio

n.Pa

rliam

ent i

s su

ppor

ted

to h

old

the

gove

rnm

ent a

ccou

ntab

le th

us e

nsur

ing

the

syst

em o

f che

cks

and

bala

nces

.In

tegr

atin

g pe

ople

’s in

tere

st in

the

wor

k of

loca

l and

nat

iona

l par

liam

ents

im

prov

es im

age

and

repr

esen

tatio

n of

peo

ple

by th

ese

inst

itutio

ns.

Supp

ortin

g ef

fect

ive

repr

esen

tatio

n of

LG

s’ in

tere

sts

in p

olic

y an

d la

w-

mak

ing

proc

esse

s en

sure

s m

ore

legi

timac

y, co

mpe

tenc

ies

and

reso

urce

s to

LG

s, w

here

pow

er is

clo

sest

to th

e pe

ople

. Lo

cal A

ssem

bly

Acc

ount

abilit

y In

dex

is co

mpo

site

and

mea

sure

s st

reng

th

and

abilit

y of

loca

l par

liam

ents

to e

xerc

ise o

vers

ight

func

tion

and

repr

esen

t ci

tizen

s in

dec

ision

mak

ing

proc

esse

s. It

also

cap

ture

s a

gend

er d

imen

sion

(how

ever

, not

exc

lude

d gr

oups

).

Mile

ston

es:

• Po

licy

dial

ogue

is a

key

inte

rven

tion

mea

sure

.A

ssum

ptio

ns:

• In

crea

sed

capa

citie

s of

par

liam

ents

(at l

ocal

and

nat

iona

l lev

el) l

ead

to

bette

r rep

rese

ntat

ion

of c

itize

ns.

• M

ore

capa

citie

s of

SC

TM le

ads

to b

ette

r rep

rese

ntat

ion

of

mun

icip

aliti

es’ i

nter

ests

in n

atio

nal l

aws.

Risk

s: • Fr

eque

nt e

lect

ions

.•

With

out p

oliti

cal w

ill fo

r ele

ctor

al re

form

s un

equa

l reg

iona

l re

pres

enta

tion

in th

e Pa

rliam

ent r

emai

ns.

• Ex

ecut

ive

pow

er b

ypas

ses

the

legi

slativ

e po

wer

by

way

of u

sing

urge

nt p

roce

dure

s.•

Parli

amen

t doe

s no

t exe

rcise

its

func

tion

to c

all f

or a

ccou

ntab

ility

of

the

exec

utiv

e po

wer

.

By fo

ster

ing

loca

l gov

ernm

ents

’ cap

aciti

es fo

r car

ryin

g ou

t pub

lic

cons

ulta

tions

, and

by

stre

ngth

enin

g pa

rtner

ship

s be

twee

n CS

Os

and

loca

l gov

ernm

ents

, loc

al a

nd n

atio

nal p

arlia

men

ts, a

nd C

SO e

ffect

iven

ess,

Switz

erla

nd c

ontri

bute

s to

incr

ease

d pa

rtici

patio

n of

citi

zens

in lo

cal p

olic

y m

akin

g, a

cces

s to

bas

ic ri

ghts

and

incl

usiv

e qu

ality

ser

vice

s. Th

e no

tion

“bas

ic ri

ghts

” co

vers

: mee

ting

all t

he le

gal p

reco

nditi

ons

for

citiz

ens

to b

e ab

le to

acc

ess

publ

ic s

ervi

ces.

Mile

ston

es:

• Po

licy

dial

ogue

with

LG

on

CSO

s’ fu

nctio

n.•

Law

or b

ylaw

(in

prep

arat

ion)

on

finan

cing

mec

hani

sm fo

r CSO

s th

roug

h LG

.•

Ensu

re th

at lo

cal g

over

nmen

ts li

sten

to C

SOs.

• Pr

omot

e lin

kage

s be

twee

n CS

Os

and

the

natio

nal/l

ocal

par

liam

ents

co

ncer

ning

adv

ocac

y an

d ac

coun

tabi

lity.

Ass

umpt

ions

:•

CSO

s ar

e an

impo

rtant

ent

ity to

hel

p ci

tizen

s ra

ise th

eir v

oice

s.•

CSO

s op

erat

e in

the

inte

rest

of c

itize

ns.

Out

com

e st

atem

ent

2:

The

Nat

iona

l Ass

embl

y sh

all b

e th

e su

prem

e re

pres

enta

tive

bo

dy a

nd t

he h

olde

r of

con

stit

utio

nal a

nd le

gisl

ativ

e po

wer

in

the

Repu

blic

of

Serb

ia. (

Law

on

Nat

iona

l Ass

embl

y)SD

Gs

5.5,

16.

6, 1

6.7

Indi

cato

r: %

of c

itize

ns d

ecla

ring

trust

in th

e N

atio

nal A

ssem

bly

- Bas

elin

e (2

013)

: 24%

- Tar

get v

alue

(202

1): t

o be

ass

esse

d So

urce

: UN

DP

publ

ic o

pini

on p

oll (

ever

y tw

o ye

ars)

Loca

l par

liam

ent

shal

l be

the

supr

eme

mun

icip

al b

ody

carr

ying

out

cor

e fu

ncti

ons

of lo

cal g

over

nmen

t la

id d

own

by

cons

titu

tion

law

and

mun

icip

al s

tatu

tes.

(Law

on

Loca

l Sel

f-G

over

nmen

t)

Indi

cato

r: n

o co

untry

indi

cato

r for

per

form

ance

of L

ocal

Ass

embl

ies.

SCTM

rep

rese

nts

“com

mon

ly e

stab

lishe

d in

tere

sts

of it

s m

embe

rshi

p lo

cal g

over

nmen

ts d

urin

g pr

epar

atio

n of

law

s an

d po

licie

s fo

r pr

otec

ting

, pro

mot

ing

and

fina

ncin

g lo

cal

gove

rnm

ents

’ wor

k”. (

SCTM

sta

tute

s)

Indi

cato

r: %

of S

CTM

stra

tegi

c pl

an im

plem

enta

tion

- Bas

elin

e (2

017)

: SC

TM h

as a

dopt

ed s

trate

gy fo

r 201

8-20

21 in

a

par

ticip

ativ

e m

anne

r- T

arge

t val

ue (2

021)

: At l

east

60%

of t

he s

trate

gy im

plem

ente

dSo

urce

: SC

TM re

ports

Out

com

e st

atem

ent

3:

Incr

ease

d ci

tize

n pa

rtic

ipat

ion,

tra

nspa

renc

y, im

prov

emen

t of

et

hica

l sta

ndar

ds a

nd r

espo

nsib

iliti

es in

the

per

form

ance

of

publ

ic a

dmin

istr

atio

n ac

tivi

ties

. (PA

RAP

2015

-17)

enr

iche

d w

ith d

raft

amen

dmen

ts to

the

Loca

l Sel

f Gov

erna

nce

Law

, SC

TM s

trate

gic

plan

201

8-20

21, S

IPRU

nat

iona

l rep

orts

, Ope

n G

over

nmen

t Par

tner

ship

Act

ion

Plan

(O

GP

AP

2016

-17)

SDG

s 5.

5, 1

0.2,

16.

6, 1

6.7

Indi

cato

r: %

of P

ARA

P im

plem

enta

tion

annu

ally

(par

t of P

ARA

P re

late

s to

co

oper

atio

n be

twee

n pu

blic

adm

inist

ratio

n in

cl. L

Gs

and

CSO

s)- B

asel

ine

(201

6): 3

0% im

plem

ente

d; 3

4% p

artia

lly im

plem

ente

d; 3

6% n

ot

im

plem

ente

d- T

arge

t val

ue (2

021)

: 100

% im

plem

ente

dSo

urce

: MPA

LSG

repo

rt (a

ctiv

ity b

ased

)

Indi

cato

r: N

o. o

f LG

s co

nduc

ting

publ

ic d

ebat

es o

n lo

cal b

udge

ts –

pu

blic

deb

ates

on

budg

et (P

DB)

- B

asel

ine

(201

5): P

DB

63/1

68 L

SGU

;

- Tar

get v

alue

(202

1): P

DB

120/

168

LSG

U;

Sour

ce: L

ocal

Tra

nspa

renc

y In

dex

(Tra

nspa

renc

y In

tern

atio

nal);

Goo

d G

over

nanc

e In

dex

24

(4)

Lin

es o

f in

terv

enti

on

(Sw

iss

Pro

gra

mm

e)

For

outc

ome

1:•

LGs

are

supp

orte

d to

app

ly g

ood

gove

rnan

ce, s

ocia

l inc

lusi

on, g

ende

r eq

ualit

y an

d an

ti-c

orru

ptio

n m

easu

res

in r

egul

atio

ns a

nd s

ervi

ce p

rovi

sion

•

Sub

-nat

iona

l PFM

sup

port

ed (

diag

nost

ics,

bud

get

plan

ning

and

exe

cutio

n, r

epor

ting

and

audi

ts).

LGs

supp

orte

d to

bet

ter

use

own

reso

urce

s (p

rope

rty

tax)

• Po

licy

dial

ogue

sup

port

ed b

etw

een

cent

ral a

nd lo

cal l

evel

s on

ade

quat

e di

visi

on o

f la

bour

and

res

ourc

es. I

nfor

mat

ion-

base

d po

licy

mak

ing

for

LGs

will

be

supp

orte

d as

wel

l•

Intr

oduc

tion

of e

-gov

erna

nce

solu

tions

will

be

supp

orte

d •

LGs

supp

orte

d to

iden

tify

excl

uded

gro

ups,

ana

lyse

the

ir si

tuat

ion

and

fact

ors

prev

entin

g th

em t

o pa

rtic

ipat

e in

soc

iety

on

equa

l ter

ms

and

deve

lop

mea

sure

s ad

dres

sing

exc

lusi

on•

Mig

ratio

n co

unci

ls a

t lo

cal l

evel

and

oth

er in

stitu

tions

tar

getin

g m

igra

nts

will

be

offe

red

supp

ort

For

outc

ome

2:•

Parli

amen

ts a

t na

tiona

l and

loca

l lev

els

are

furt

her

supp

orte

d to

app

ly o

utre

ach

and

over

sigh

t m

echa

nism

s•

If t

he S

erbi

an g

over

nmen

t de

cide

s to

pur

sue

elec

tora

l ref

orm

s, b

ette

r ge

ogra

phic

rep

rese

ntat

ion

in t

he N

atio

nal A

ssem

bly

thro

ugh

new

ele

ctor

al le

gisl

atio

n w

ill b

e su

ppor

ted

• SC

TM a

ssis

ted

to p

rom

ote

LG in

tere

sts

in la

ws

and

polic

ies,

and

impl

emen

tatio

n th

ereo

f in

fav

our

of L

Gs

and

its c

itize

ns. I

t w

ill p

rom

ote

citiz

ens’

bud

get

and

publ

ic d

ebat

es in

LG

s•

Wor

king

gro

ups

of t

he p

arlia

men

t ad

dres

sing

exc

lude

d gr

oups

will

be

supp

orte

d (p

rimar

ily R

oma,

dis

able

d pe

rson

s, r

ural

wom

en a

nd m

igra

nts)

For

outc

ome

3:•

CSO

s in

loca

l com

mun

ities

will

be

supp

orte

d to

dev

elop

and

/or

stre

ngth

en li

nks

with

the

ir co

nstit

uenc

ies,

in p

artic

ular

out

side

of

the

capi

tal

• C

SO c

apac

ities

will

be

enha

nced

to

iden

tify

and

com

mun

icat

e ne

eds

and

prio

ritie

s of

citi

zens

. Pol

icy

plat

form

s an

d co

nsul

tatio

ns b

etw

een

CSO

s an

d au

thor

ities

will

be

supp

orte

d•

Gov

ernm

ent

bodi

es w

ill b

e su

ppor

ted

to e

nsur

e am

ple

capa

city

and

roo

m f

or c

onsu

ltatio

n w

ith t

he c

ivil

sect

or•

CSO

rec

omm

enda

tions

in p

olic

y an

d la

w m

akin

g w

ill b

e su

ppor

ted

(5)

Res

ou

rces

, p

artn

ersh

ips

(Sw

iss

Pro

gra

mm

e)

Tent

ativ

e fi

nanc

ial c

omm

itm

ent:

CH

F32.

1m S

DC

and

SEC

O

Part

ners

hips

:-

Line

min

istr

ies:

Min

istr

y of

Pub

lic A

dmin

istr

atio

n an

d Lo

cal S

elf-

Gov

ernm

ent;

Min

istr

y of

Fin

ance

(va

rious

dep

artm

ents

); M

inis

try

of L

abou

r an

d So

cial

Pol

icy

- M

inis

try

of E

U In

tegr

atio

ns

- N

atio

nal A

ssem

bly

- SI

PRU

(So

cial

Incl

usio

n an

d Po

vert

y Re

duct

ion

Uni

t)-

Loca

l mig

ratio

n co

unci

ls/

Com

mis

saria

t fo

r re

fuge

es a

nd m

igra

tion

- SC

TM a

nd lo

cal g

over

nmen

ts c

ount

ryw

ide

- C

ivil

Soci

ety

Org

anis

atio

ns

(6)

Man

agem

ent/

per

form

ance

res

ult

s, i

ncl

ud

ing

in

dic

ato

rs (

Swis

s Pr

og

ram

me)

, se

e ch

apte

r 6

of C

S

- G

iven

the

SC

O’s

str

ong

focu

s (b

ut n

ot o

nly)

on

the

loca

l lev

el, i

t is

par

ticul

arly

wel

l pos

ition

ed t

o m

ake

the

link

betw

een

loca

l and

cen

tral

leve

ls a

nd t

o co

ntrib

ute

with

evi

denc

ed-b

ased

pol

icy

re

com

men

datio

ns, e

spec

ially

in t

he f

ield

of

PFM

and

will

par

ticip

ate

activ

ely

in t

he s

ecto

r w

orki

ng g

roup

on

Publ

ic A

dmin

istr

atio

n Re

form

. -

The

hum

an r

ight

s-ba

sed

appr

oach

will

be

rein

forc

ed a

nd a

bal

ance

will

be

soug

ht b

etw

een

supp

ort

for

duty

bea

rers

and

rig

hts

hold

ers.

One

mea

sure

env

isag

ed is

the

dev

elop

men

t of

a n

ew p

roje

ct in

supp

ort

of c

ivil

soci

ety.

- Th

e SC

O w

ill p

ut s

peci

al e

mph

asis

on

the

cohe

renc

e an

d sh

arpe

ned

focu

s of

the

gov

erna

nce

port

folio

. Som

e in

terv

entio

ns w

ill b

e re

stru

ctur

ed a

nd s

yner

gies

dev

elop

ed.

- Ex

clud

ed g

roup

s in

the

Gov

erna

nce

dom

ain

shal

l be

resp

ectiv

ely

Rom

a, r

ural

wom

en, d

isab

led

pers

ons

and

mig

rant

s de

pend

ing

on o

utco

mes

tar

getin

g th

em a

nd d

iffer

entia

ted

appr

oach

.-

A n

ew b

ilate

ral a

gree

men

t w

ith t

he G

over

nmen

t of

Ser

bia

is fo

und

for

the

envi

sage

d Sw

iss

supp

ort

to s

ocia

l inc

lusi

on a

nd p

over

ty re

duct

ion

whi

ch a

llow

s to

anc

hor

the

Soci

al in

clus

ion

and

pove

rty

redu

ctio

n

unit

with

in t

he n

atio

nal s

yste

m.

Effe

ctiv

enes

s of

civ

il so

ciet

y ad

voca

cy: N

o. o

f CSO

adv

ocac

y in

itiat

ives

aim

ed a

t con

tribu

ting

to lo

cal d

ecisi

on-m

akin

g an

d in

crea

sing

acco

unta

bilit

y of

gov

ernm

ent a

t nat

iona

l and

loca

l lev

els

- Bas

elin

e (2

018)

: 0- T

arge

t val

ue (2

021)

: 100

Acc

ess

to b

asic

rig

hts

at t

he lo

cal l

evel

: No.

of p

eopl

e, in

clud

ing

wom

en a

nd e

xclu

ded

grou

ps u

sing

mea

sure

s ta

ken

by p

ublic

and

civ

il so

ciet

y ac

tors

in ta

rget

ed L

Gs

to im

prov

e ac

cess

to b

asic

righ

ts (m

odif.

SD

C D

DLG

N R

I 5)

- Bas

elin

e (2

018)

: 0- T

arge

t val

ue (2

021)

: At l

east

5,5

00

Risk

s: • CS

Os

are

dono

r dep

ende

nt w

hile

gov

ernm

ent f

undi

ng p

rovi

ded

to

CSO

s is

not t

rans

pare

nt.

• D

iver

ging

prio

ritie

s of

CSO

s an

d LG

s. •

Poss

ible

tens

ions

bet

wee

n se

rvic

e pr

ovisi

on a

nd a

dvoc

acy

func

tion

of C

SOs.

25

Dom

ain

of in

terv

enti

on 2

: Eco

nom

ic D

evel

opm

ent

and

Empl

oym

ent

(SD

C, S

ECO

)O

vera

ll ob

ject

ive:

Incl

usiv

e an

d su

stai

nabl

e ec

onom

ic g

row

th a

nd in

crea

sed

qual

ity

empl

oym

ent

for

all

Impa

ct h

ypot

hesi

s: I

mpr

oved

mac

ro-e

cono

mic

ins

titut

ions

and

fra

mew

ork

cond

ition

s fo

r dy

nam

ic e

ntre

pren

eurs

hip

, en

hanc

ed c

ompe

titiv

enes

s an

d su

stai

nabl

e tr

ade,

alo

ng w

ith

mar

ket-

orie

nted

ski

lls d

evel

opm

ent,

cont

ribut

e to

incl

usiv

e an

d su

stai

nabl

e ec

onom

ic g

row

th a

nd q

ualit

y em

ploy

men

t fo

r al

l, in

par

ticul

ar in

rur

al a

reas

.

(1) S

wis

s po

rtfo

lio o

utco

mes

Out

com

e st

atem

ent

1:St

reng

then

ed m

acro

-eco

nom

ic in

stit

utio

ns: K

ey n

atio

nal p

ublic

fin

ance

inst

itutio

ns im

prov

e th

eir c

apac

ities

, the

fina

ncia

l sys

tem

is

stre

ngth

ened

, and

PFM

at n

atio

nal l

evel

is im

prov

ed.

Indi

cato

rs:

Qua

lity

of P

FM a

t na

tion

al le

vel (

SECO

SI1

): M

easu

res

for i

mpr

ovin

g PF

M in

the

follo

win

g ar

eas:

pub

lic a

ccou

ntin

g, ta

x co

llect

ion

and

man

-ag

emen

t, go

vern

men

t deb

t and

risk

man

agem

ent,

disa

ster

risk

fina

ncin

g,

gove

rnm

ent f

inan

ce s

tatis

tics

- Bas

elin

e (2

018)

: Ins

uffic

ient

mea

sure

s to

allo

w fo

r a tr

ansp

aren

t, ef

ficie

nt

and

effe

ctiv

e PF

M s

yste

m- T

arge

t val

ue (2

021)

: Im

prov

ed/n

ew m

easu

res

to a

llow

for a

tran

spar

ent,

effi

cien

t and

effe

ctiv

e PF

M s

yste

m

Key

PFM

indi

cato

rs a

s pe

r PE

FA f

ram

ewor

k (S

ECO

SI2

): Im

prov

emen

ts in

key

PFM

are

as a

re a

chie

ved

- Bas

elin

e (2

018)

: Acc

ordi

ng to

PEF

A A

sses

smen

t 201

6- T

arge

t val

ue (2

021)

: Im

prov

ed k

ey P

FM in

dica

tors

acc

ordi

ng to

nex

t PEF

A

Ass

essm

ent

Capa

city

dev

elop

men

t fo

r ke

y na

tion

al p

ublic

fin

ance

inst

itu-

tion

s (S

ECO

SI3

): M

easu

res

for i

mpr

ovin

g ca

paci

ty d

evel

opm

ent

in th

e fo

llow

ing

inst

itutio

ns: T

ax A

dmin

istra

tion,

Tre

asur

y, Pu

blic

Deb

t Adm

inist

ra-

tion,

Gov

ernm

ent F

inan

ce S

tatis

tics

Offi

ce, M

inist

ry o

f Fin

ance

- Bas

elin

e (2

018)

: Lac

king

cap

aciti

es a

t the

Min

istry

of F

inan

ce a

nd a

ffilia

ted

ins

titut

ions

to a

llow

for a

tran

spar

ent,

effic

ient

and

effe

ctiv

e PF

M s

yste

m- T

arge

t val

ue (2

021)

: Im

prov

ed c

apac

ities

at t

he M

inist

ry o

f Fin

ance

and

a

ffilia

ted

inst

itutio

ns to

allo

w fo

r a m

ore

trans

pare

nt, e

ffici

ent a

nd e

ffect

ive

PFM

sys

tem

Out

com

e st

atem

ent

2:

Impr

oved

Bus

ines

s En

ablin

g En

viro

nmen

t (B

EE):

Nat

iona

l and

loca

l au

thor

ities

are

impl

emen

ting

mea

sure

s to

impr

ove

the

busin

ess

enab

ling

envi

ronm

ent a

nd a

cces

s to

fina

nce

at n

atio

nal a

nd s

ub-n

atio

nal l

evel

s an

d to

pro

mot

e lo

cal e

cono

mic

dev

elop

men

t.

Indi

cato

rs:

Impr

oved

rul

es a

nd r

egul

atio

ns a

nd e

nhan

ced

com

peti

tive

ness

fo

r fa

cilit

atin

g m

arke

t ac

cess

(SEC

O S

I14)

: Ext

ent t

o w

hich

inso

lven

cy

legi

slatio

n an

d co

rpor

ate

acco

untin

g an

d au

ditin

g st

anda

rds

are

impr

oved

- Bas

elin

e (2

018)

: The

pas

t ins

olve

ncy

legi

slatio

n is

no lo

nger

up-

to-d

ate

and

new

inso

lven

cy le

gisla

tion

and

corp

orat

e ac

coun

ting

and

audi

ting

sta

ndar

ds a

re re

quire

d- T

arge

t val

ue (2

021)

: New

com

preh

ensiv

e an

d ad

equa

te in

solv

ency

l

egisl

atio

n an

d co

rpor

ate

acco

untin

g an

d au

ditin

g st

anda

rds

are

adop

ted

(2) C

ontr

ibut

ion

of S

wis

s Pr

ogra

mm

e

Switz

erla

nd w

ill co

ntrib

ute

to im

prov

ed m

acro

-eco

nom

ic s

tabi

lity

by

supp

ortin

g th

e im

plem

enta

tion

of re

form

s an

d po

licy

dial

ogue

with

re

spec

tive

key

inst

itutio

ns (e

.g.,

Min

istry

of F

inan

ce, T

ax A

dmin

istra

tion,

Tr

easu

ry A

dmin

istra

tion,

Pub

lic D

ebt A

dmin

istra

tion,

Nat

iona

l Sta

tistic

s O

ffice

). Th

eref

ore,

key

nat

iona

l pub

lic fi

nanc

e in

stitu

tions

impr

ove

thei

r ca

paci

ty, w

hich

ena

bles

them

to b

ette

r im

plem

ent n

atio

nal r

efor

ms.

Switz

erla

nd e

ngag

es a

ctiv

ely

in th

e in

form

al P

FM D

onor

Coo

rdin

atio

n G

roup

and

sup

ports

the

esta

blish

men

t of t

he fo

rmal

PFM

Don

or

Coor

dina

tion

Gro

up.

Mile

ston

es:

• Su

cces

sful

impl

emen

tatio

n of

EU

sec

tor b

udge

t sup

port

.A

ssum

ptio

ns:

• EU

sec

tor b

udge

t sup

port

mec

hani

sm e

nfor

ces

impl

emen

tatio

n of

PF

M re

form

s by

set

ting

spec

ific

indi

cato

rs.

Risk

s: • IM

F St

and-

by A

gree

men

t exp

ires

in F

ebru

ary

2018

. If t

here

is n

o fo

llow

up,

ther

e is

a ris

k th

at th

e pa

ce o

f ref

orm

s w

ill slo

w d

own.

• La

ck o

f coo

rdin

atio

n am

ong

diffe

rent

sta

keho

lder

s an

d in

suffi

cien

t gu

idan

ce o

n re

form

prio

ritiz

atio

n hi

nder

effi

cien

t and

effe

ctiv

e re

form

impl

emen

tatio

n.•

Low

hum

an re

sour

ce c

apac

ity o

f Min

istry

of F

inan

ce d

ue to

cur

rent

le

gisla

tive

ban

on h

iring

new

sta

ff in

the

publ

ic a

dmin

istra

tion

and

the

inab

ility

to a

ttrac

t hig

hly-

qual

ified

fina

nce

expe

rts d

ue to

low

sala

ries

in th

e pu

blic

sec

tor.

Switz

erla

nd fa

cilit

ates

refo

rms

aim

ed a

t cre

atin

g a

frien

dly

busin

ess

envi

ronm

ent a

nd p

rom

otes

an

inst

itutio

nal f

ram

ewor

k th

at fu

rther

st

imul

ates

indu

stry

and

ent

repr

eneu

rshi

p de

velo

pmen

t by

redu

cing

or

elim

inat

ing

adm

inist

rativ

e an

d/or

legi

slativ

e ba

rrier

s. Th

is su

ppor

ts S

erbi

a’s

effo

rts to

ach

ieve

a fu

nctio

ning

eco

nom

y an

d a

deve

lope

d m

arke

t.Sw

itzer

land

con

tribu

tes

to im

prov

ed ru

les

and

regu

latio

ns, s

uch

as

the

new

Inso

lven

cy L

aw a

nd n

ew c

orpo

rate

acc

ount

ing

and

audi

ting

stan

dard

s, w

hich

will

lead

to in

crea

sed

inve

stm

ents

.Sw

itzer

land

bui

lds

capa

citie

s at

sub

-nat

iona

l lev

el fo

r Ser

bia

to a

dequ

atel

y im

plem

ent n

atio

nal-l

evel

refo

rms.

Loca

l eco

nom

ic d

evel

opm

ent a

nd in

crea

sed

inve

stm

ents

are

pro

mot

ed

thro

ugh

stre

ngth

enin

g lo

cal i

nstit

utio

ns a

nd lo

cal f

ram

ewor

k co

nditi

ons.

(3) C

ount

ry d

evel

opm

ent

outc

omes

Out

com

e st

atem

ent

1Im

plem

enta

tion

of

the

nati

onal

Pub

lic F

inan

ce R

efor

m P

ro-

gram

me

lead

s to

tra

nspa

rent

, eff

icie

nt a

nd a

ccou

ntab

le P

FM.

(PFM

Ref

orm

Pla

n)

Indi

cato

r: F

iscal

def

icit

as %

of G

DP

- Bas

elin

e (2

016)

: 1.4

%

- Tar

get v

alue

(201

9): 0

.5%

So

urce

: Fisc

al S

trate

gy fo

r 201

7 w

ith p

roje

ctio

ns fo

r 201

8 an

d 20

19

Indi

cato

r: V

AT e

ffici

ency

(C-e

ffici

ency

) (an

impr

ovem

ent i

n th

is in

dica

tor

is an

indi

rect

indi

cato

r of d

ecre

ase

of g

rey

econ

omy

in th

e co

untry

):- B

asel

ine

(201

5): 7

2%- T

arge

t val

ue (2

021)

: 80%

Sour

ce: F

iscal

Cou

ncil

Indi

cato

r: P

ublic

Fin

ance

Ref

orm

impl

emen

tatio

n- B

asel

ine

(201

6): S

ituat

ion

addr

esse

d in

PFM

Ref

orm

Pla

n

- Tar

get v

alue

(202

0): S

ucce

ssfu

l im

plem

enta

tion

of P

FM R

efor

m P

lan

Sour

ce: P

FM R

efor

m P

lan

and

Prog

ress

Rep

orts

of M

oF

Out

com

e st

atem

ent

2:

Impr

oved

bus

ines

s en

viro

nmen

t: A

n im

prov

ed o

pera

ting

env

i-ro

nmen

t fo

r do

ing

busi

ness

thr

ough

evi

denc

e-ba

sed

polic

ies

and

regu

lato

ry s

impl

ific

atio

n at

nat

iona

l and

sub

-nat

iona

l le

vels

. (Ec

onom

ic R

efor

m P

rogr

am 2

017-

2019

; Nee

ds A

sses

smen

t for

In

tern

atio

nal A

ssist

ance

201

4-20

17, w

ith p

roje

ctio

ns u

ntil

2020

)SD

G: 8

.2

Indi

cato

r: %

of G

DP

crea

ted

by in

vest

men

ts (t

hank

s to

impr

oved

rule

s an

d re

gula

tions

)- B

asel

ine

(201

6): 1

8%

- Tar

get v

alue

(202

0): 3

0%

Sour

ce: S

erbi

a 20

20-C

once

pt o

f the

dev

elop

men

t of t

he R

epub

lic o

f Ser

bia

until

202

0

26

Out

com

e st

atem

ent

3:

Incr

ease

d co

mpe

titi

vene

ss: E

ntre

pren

eurs

hip

has

beco

me

mor

e in

nova

tive

and

com

petit

ive;

ent

repr

eneu

rs c

reat

e m

ore

sust

aina

ble

and

incl

usiv

e tr

ade

and

valu

e ch

ains

, cre

atin

g m

ore

and

bett

er

jobs

.

Indi

cato

rs:

Indi

cato

r 1A

: Em

ploy

men

t (S

DC

ada

pted

AR

I E1)

: No

. of

peop

le

(M/F

) em

ploy

ed in

sec

tors

of

a) t

radi

tiona

l agr

icul

tura

l pro

duct

s; b

) to

uris

m; a

nd c

) lig

ht p

roce

ssin

g in

dust

ry

- Ba

selin

e (2

018)

: 0-

Targ

et v

alue

(20

21):

at le

ast

3,50

0 o

ut o

f w

hich

at

leas

t 40

%

w

omen

( a

) tr

aditi

onal

agr

icul

tura

l pro

duct

s 2,

220;

b)

tour

ism

700

and

c) li

ght

proc

essi

ng in

dust

ry 6

00)

Indi

cato

r 1B

: Job

s (S

ECO

SI9

): N

o. o

f jo

bs c

reat

ed a

nd m

aint

aine

d in

the

sec

tor

of h

igh-

tech

and

inno

vatio

n-

Base

line

(201

8): 0

- Ta

rget

val

ue (

2021

): at

leas

t 30

0 ou

t of

whi

ch a

t le

ast

25%

for

wom

en

Inco

me

(SD

C A

RI E

1): I

ncom

e ge

nera

tion

in s

ecto

rs o

f a)

tra

ditio

n-al

agr

icul

tura

l pro

duct

s; b

) to

uris

m; c

) lig

ht p

roce

ssin

g in

dust

ry a

nd

d)

smal

l and

med

ium

ent

erpr

ises

(SM

Es)

in C

HF

- Ba

selin

e (2

018)

: 0-

Targ

et v

alue

(20

21):

at le

ast

CH

F10m

Hig

h-te

ch e

xpor

t vo

lum

es (

SEC

O S

I18)

: Exp

ort

volu

mes

of

sus-

tain

able

goo

ds a

nd s

ervi

ces

(hig

h-te

ch)

(in m

illio

ns o

f C

HF)

- Ba

selin

e (2

018)

: 0-

Targ

et v

alue

(20

21):

at le

ast

CH

F7m

Switz

erla

nd p

rom

otes

eco

nom

ic g

row

th, i

nnov

atio

n an

d in

crea

sed

com

petit

iven

ess

of t

he e

cono

my,

whi

ch a

re a

rea

listic

bas

e fo

r in

crea

sed

empl

oym

ent

and

impr

oved

livi

ng s

tand

ards

of

the

popu

latio

n.

Switz

erla

nd s

uppo

rts

the

deve

lopm

ent

of e

ntre

pren

eurs

hip

in

gene

ral a

nd s

peci

fical

ly in

the

hig

h-te

ch s

ecto

r, w

hich

will

lead

to

incr

ease

d co

mpe

titiv

enes

s, e

mpl

oym

ent

and

expo

rts.

Stre

ngth

enin

g se

lect

ed v

alue

cha

ins

will

lead

to

econ

omic

gro

wth

ba

sed

on m

ore

and

high

er q

ualit

y ex

port

s an

d be

tter

pro

duct

ivity

.Su

ppor

t fo

r ec

onom

ic d

evel

opm

ent

in r

ural

are

as a

ddre

sses

rur

al

to u

rban

mig

ratio

n. O

bsta

cles

for

wom

en a

cces

sing

and

mai

ntai

n-in

g em

ploy

men

t (g

ende

r-sp

ecifi

c em

ploy

men

t m

easu

res)

are

als

o ad

dres

sed

.

Ass

umpt

ions

:•

The

dive

rsifi

catio

n of

val

ue c

hain

s an

d sa

les

chan

nels

, will

le

ad t

o in

crea

sed

sale

s an

d th

us c

ontr

ibut

e to

incr

ease

d em

ploy

men

t •

Impr

oved

ski

lls (

know

ledg

e an

d in

form

atio

n) a

nd, h

igh

qual

i-ty

wor

kfor

ce, w

ill in

crea

se s

ales

to

end

mar

kets

.•

Inco

me

gene

ratio

n co

ntrib

utes

to

incl

usiv

e ec

onom

ic g

row

th

and

qual

ity e

mpl

oym

ent

Risk

s: • N

atur

al, c

limat

e ha

zard

s co

uld

influ

ence

per

form

ance

of

the

sele

cted

sec

tors

(tr

aditi

onal

agr

icul

tura

l pro

duct

s to

uris

m).

• M

igra

tion

from

rur

al a

reas

(tr

aditi

onal

agr

icul

tura

l sec

tor)

an

d br

ain

drai

n (f

or h

igh-

tech

) w

ill im

pede

dev

elop

men

t of

th

e ta

rget

ed s

ecto

rs.

• Te

rms

of t

rade

may

cha

nge,

cur

renc

y flu

ctua

tions

and

ch

ange

of

pric

es o

n th

e in

tern

atio

nal m

arke

ts.

Out

com

e st

atem

ent

3:

Dyn

amic

ent

repr

eneu

rshi

p, in

crea

sed

com

peti

tive

ness

, exp

ort

and

inno

vati

on o

f en

terp

rise

s w

ithi

n a

wel

l-fun

ctio

ning

mar

ket

econ

omy.

(Eco

nom

ic R

efor

m P

rogr

am 2

017-

2019

; Nee

ds A

sses

smen

t fo

r In

tern

atio

nal A

ssis

tanc

e 20

14-2

017,

with

pro

ject

ions

unt

il 20

20)

SDG

: 8.2

; 8.3

Indi

cato

r: U

nem

ploy

men

t ra

te-

Base

line

(201

7): 1

6.0%

-

Targ

et v

alue

(202

0): 1

0.8%

Sour

ce: N

atio

nal S

trat

egy

for

Empl

oym

ent

(201

1-20

20)

Indi

cato

r: A

nnua

l hig

h-te

ch e

xpor

ts in

EU

R-

Base

line

(201

7):

EUR4

00m

- Ta

rget

val

ue (2

022)

: EU

R1,5

00m

Sour

ce: G

over

nmen

t of

Ser

bia

- Pr

iorit

y go

als

and

activ

ities

for

all

gove

rnm

ent

bodi

es fo

r th

e pu

rpos

e of

impr

ovin

g th

e IT

sec

tor

in S

erbi

a (2

017-

2022

)

Indi

cato

r: E

xpor

t of

tou

rism

ser

vice

s (t

o fo

reig

n to

uris

ts) i

n EU

R-

Base

line

(201

7): E

UR1

.04b

n

- Ta

rget

val

ue (2

020)

: EU

R2.5

bn

Sour

ce: N

atio

nal T

ouris

m S

trat

egy

(201

6-20

26)

Indi

cato

r: R

aspb

erry

(as

one

tra

ditio

nal a

gric

ultu

ral p

rodu

ct) e

xpor

ts in

to

nnes

per

ann

um-

Base

line

(201

6):

88,0

00 t

ons

- Ta

rget

val

ue (2

021)

: 115

,000

ton

s (3

0% in

crea

se)

Sour

ce: S

erbi

an C

ham

ber

of C

omm

erce

, Ser

bian

Ass

ocia

tion

of ra

spbe

r-ry

pro

duce

rs

Dir

ect

com

plia

nce

cost

s sa

ving

s (S

ECO

SI1

5): C

ost s

avin

gs in

CH

F by

elim

inat

ing

obst

acle

s in

the

bank

rupt

cy p

roce

dure

, i.e

. the

val

ue o

f lia

bilit

ies

adm

inist

ered

by

Inso

lven

cy P

ract

ition

ers:

- B

asel

ine

(201

7): C

HF1

10m

- Tar

get v

alue

(202

1): C

HF1

95m

Loca

l and

reg

iona

l eco

nom

ic d

evel

opm

ent

(LED

) (SD

C): %

of i

nves

t-m

ents

by

loca

l aut

horit

ies

from

disc

retio

nary

fund

ing

in lo

cal a

nd re

gion

al

econ

omic

dev

elop

men

t in

28 m

unic

ipal

ities

- B

asel

ine

(201

4): 6

.86%

- Tar

get v

alue

(202

1): 7

.55%

Ass

umpt

ions

:•

Will

of th

e na

tiona

l and

loca

l gov

ernm

ents

to im

prov

e th

e BE

E e

xist

s.•

Polit

ical

will

to c

ontin

ue to

war

ds E

urop

ean

inte

grat

ion

exist

s.•

The

need

for r

efor

ms

at th

e su

b-na

tiona

l lev

el is

exp

ress

ed.

Risk

s: • D

elay

s du

e to

freq

uent

pre

mat

ure

elec

tions

at a

ll le

vels

.•

Lack

of u

nder

stan

ding

and

resis

tanc

e to

cha

nge.

•

Lack

of p

rofe

ssio

nal c

apac

ity to

dea

l with

refo

rms.

• La

ck o

f in-

cash

con

tribu

tions

of m

unic

ipal

ities

for c

ondu

ctin

g th

e r

efor

ms.

Indi

cato

r: %

of n

on-p

erfo

rmin

g lo

ans

- Bas

elin

e (2

017)

: 17%

- Tar

get v

alue

(202

1): 7

%So

urce

: Nat

iona

l Ban

k of

Ser

bia

Indi

cato

r: Ex

isten

ce o

f sus

tain

able

regu

lato

ry m

echa

nism

s at

sub

-na

tiona

l lev

el a

long

with

adm

inist

rativ

e ca

paci

ties

for i

ncre

ased

attr

actio

n of

inve

stm

ents

- Bas

elin

e (2

017)

: 16

mun

icip

aliti

es- T

arge

t val

ue (2

021)

: 100

mun

icip

aliti

esSo

urce

: Min

istry

of P

ublic

Adm

inist

ratio

n an

d Lo

cal S

elf G

over

nanc

e,

Min

istry

of E

U In

tegr

atio

n

Indi

cato

r: W

orld

Ban

k D

oing

Bus

ines

s ra

nkin

g- B

asel

ine

(201

7): 4

7 - T

arge

t val

ue (2

021)

: 30

Sour

ce: W

orld

Ban

k D

oing

Bus

ines

s Re

port

27

Out

com

e st

atem

ent

4:

Empl

oyab

ility

and

em

ploy

men

t: Y

oung

peo

ple

bene

fit f

rom

in

clus

ive

and

impr

oved

mar

ket-

orie

nted

ski

lls d

evel

opm

ent,

whi

ch

resu

lts in

em

ploy

men

t.

Indi

cato

rs:

Voc

atio

nal s

kills

dev

elop

men

t an

d ac

tive

labo

ur m

arke

t m

ea-

sure

s (S

DC

AR

I EV

3): N

o. o

f yo

uth

(15-

24 y

rs)

and

adul

ts (

>24

yr

s) (

M/F

) w

ho g

aine

d ac

cess

to

impr

oved

voc

atio

nal t

rain

ing

and

labo

ur m

arke

t in

form

atio

n, in

tern

ship

pla

cem

ent

and

care

er

guid

ance

ser

vice

s-

Base

line

(201

7): 0

- Ta

rget

val

ue (

2019

): 7,

500,

of

whi

ch a

t le

ast

50%

are

fem

ale

You

th e

mpl

oym

ent

and

empl

oyab

ility

(C

omm

on O

utco

me

Indi

cato

r C

OI

2) (

SDC

): N

o. o

f go

vern

men

t po

licie

s us

ing

an

evid

ence

-bas

ed a

nd r

esul

ts-o

rient

ed a

ppro

ach

to m

arke

t-or

ient

ed

non-

form

al a

dult

educ

atio

n an

d tr

aini

ng-

Base

line

(201

7): 0

- Ta

rget

val

ue (

2021

): 3

(Nat

iona

l Em

ploy

men

t A

ctio

n Pl

an

20

18/1

9, A

ctio

n Pl

an f

or Y

outh

Str

ateg

y 20

18/2

020,

Tra

inee

ship

qual

ity f

ram

ewor

k le

gisl

atio

n 20

18)

Incr

ease

d Em

ploy

men

t (S

DC

): N

o. o

f Sw

iss-

supp

orte

d no

n-fo

r-m

al a

dult

educ

atio

n an

d tr

aini

ng p

artic

ipan

ts w

ith e

mpl

oym

ent

cont

ract

s 12

mon

ths

afte

r co

mpl

etio

n of

tra

inin

g pr

ogra

mm

e (b

y ge

nder

and

exc

lude

d gr

oups

)-

Base

line

(201

7): 0

- Ta

rget

val

ue (

2019

): at

leas

t 35

0, o

f w

hich

at

leas

t 50

% w

omen

and

up t

o 5%

exc

lude

d pe

rson

s

Switz

erla

nd s

uppo

rts

impr

ovin

g an

d en

larg

ing

the

offe

r of

form

al a

nd

non-

form

al t

rain

ing

acco

rdin

g to

mar

ket

need

s.By

pro

mot

ing

the

elem

ents

of

wor

k-ba

sed

lear

ning

and

thr

ough

the

im

prov

emen

t of

act

ive

labo

ur m

arke

t m

easu

res

and

care

er c

ouns

ellin

g,

Switz

erla

nd s

uppo

rts

Serb

ia t

o re

duce

the

une

mpl

oym

ent

of y

outh

and

jo

b m

ism

atch

. Sw

iss

supp

ort

to e

ngag

emen

t of

the

priv

ate

sect

or b

y fa

cilit

atin

g th

e co

llabo

ratio

n of

tra

inin

g pr

ovid

ers

and

com

pani

es c

ontr

ibut

es t

o in

crea

sed

yout

h em

ploy

abili

ty.

Switz

erla

nd p

rovi

des

supp

ort

at p

olic

y, in

stitu

tiona

l and

ope

ratio

nal l

ev-

el, f

oste

ring

also

the

inte

r-m

inis

teria

l col

labo

ratio

n. E

xclu

sion

fact

ors

are

addr

esse

d an

d m

easu

res

for

bett

er e

mpl

oyab

ility

of

excl

uded

gro

ups

and

yout

h ar

e su

ppor

ted.

Mile

ston

es:

• Sw

itzer

land

pro

mot

es d

onor

coo

rdin

atio

n an

d a

coor

dina

ted

polic

y di

alog

ue w

ith t

he S

erbi

an g

over

nmen

t re

late

d to

VET

re

form

, pro

mot

ing

a pr

ivat

e se

ctor

-res

pons

ive

lega

l fra

mew

ork

for

dual

edu

catio

n an

d tr

aini

ng.

• Sw

itzer

land

con

trib

utes

to

the

impl

emen

tatio

n of

the

ESR

P pr

omot

ing

evid

ence

-bas

ed a

nd re

sults

-orie

nted

app

roac

hes

for

yout

h em

ploy

men

tA

ssum

ptio

ns:

• A

dequ

ate

resp

onse

of

the

priv

ate

and

publ

ic s

ecto

r in

Ser

bia.

• A

dequ

ate

resp

onse

to

offe

red

trai

ning

s by

you

ng p

eopl

e an

d tr

aine

rs.

Risk

s: • Po

sitio

n of

SM

Es m

ay w

orse

n es

peci

ally

in c

ompa

rison

to

inte

rnat

iona

l com

pani

es t

hat

are

bene

fitin

g of

gov

ernm

ent

subs

i-di

es fo

r em

ploy

men

t.•

Mig

ratio

n fr

om t

he t

arge

ted

regi

ons

may

con

tinue

.

Out

com

e st

atem

ent

4:

Impr

oved

sta

tus

of y

outh

in la

bour

mar

ket.

(Em

ploy

men

t an

d So

cial

Ref

orm

Pro

gram

me

2016

-202

0)SD

G: 4

.3 4

.4 8

.6

Indi

cato

r: Y

outh

une

mpl

oym

ent

(15-

24) r

ate

- Ba

selin

e yo

uth

15-2

4 (2

016)

: 34.

9%-

Targ

et v

alue

you

th 1

5-24

(202

0): 2

4.0%

Sour

ce: N

atio

nal E

mpl

oym

ent

Stra

tegy

(201

1-20

20)

Indi

cato

r: Y

outh

age

d 15

-24

not

in e

mpl

oym

ent,

educ

atio

n or

tr

aini

ng ra

te:

- Ba

selin

e (2

014)

: 20%

-

Targ

et v

alue

(201

8): 1

5% (w

ill b

e up

date

d ac

cord

ing

to u

pdat

ed

nat

iona

l tar

gets

)So

urce

: Em

ploy

men

t an

d So

cial

Ref

orm

Pro

gram

(4)

Lin

es o

f in

terv

enti

on

(Sw

iss

Pro

gra

mm

e)

For

outc

ome

1:•

Supp

ort

to p

ublic

acc

ount

ing

refo

rm

• Su

ppor

t to

tax

adm

inis

trat

ion

refo

rm•

Impr

ove

capa

city

for

gov

ernm

ent

finan

ce s

tatis

tics

• G

over

nmen

t de

bt a

nd r

isk

man

agem

ent

• D

isas

ter

risk

finan

cing

and

insu

ranc

e•

PFM

pro

ject

at

cent

ral l

evel

(to

be

deve

lope

d)

For

outc

ome

2:•

Enha

nced

inve

stm

ent

clim

ate

by im

prov

ing

the

inst

itutio

nal a

nd t

echn

ical

cap

acity

of

supe

rvis

ory

auth

oriti

es a

nd p

rofe

ssio

nal a

ccou

ntin

g or

gani

zatio

ns t

o pr

omot

e qu

ality

fin

anci

al r

epor

ting

in li

ne w

ith t

he

ac

quis

com

mun

auta

ire a

nd g

ood

inte

rnat

iona

l pra

ctic

e.•

Cre

atio

n of

a m

ore

effe

ctiv

e de

bt r

esol

utio

n fr

amew

ork

that

will

con

trib

ute

to e

cono

mic

gro

wth

, ris

e in

em

ploy

men

t an

d in

crea

sed

wea

lth o

f th

e po

pula

tion.

• Re

duce

d co

st o

f tra

nsfe

rrin

g re

mitt

ance

s an

d in

crea

sed

perc

enta

ge o

f rem

ittan

ces

that

are

ope

rate

d th

roug

h fo

rmal

cha

nnel

s al

ong

with

ext

endi

ng b

asic

fina

ncia

l ser

vice

s to

form

erly

“un

bank

ed”

popu

latio

ns.

• Su

ppor

t fo

r ru

ral a

nd r

egio

nal d

evel

opm

ent

polic

ies

to s

ecur

e m

ore

disc

retio

nary

fun

ds f

or m

unic

ipal

ities

and

rur

al a

reas

.•

Impr

oved

Fra

mew

ork

for

Loca

l Eco

nom

ic D

evel

opm

ent

(pro

ject

to

be d

evel

oped

)

28

For

outc

ome

3:•

Loca

l eco

nom

ic d

evel

opm

ent

is s

tren

gthe

ned

and

rura

l mig

ratio

n is

red

uced

by

incr

easi

ng e

mpl

oym

ent

and

inco

me

oppo

rtun

ities

, par

ticul

arly

for

wom

en a

nd y

outh

.•

Supp

ort

to k

now

ledg

e ba

sed

econ

omic

gro

wth

.•

Bett

er in

tegr

atio

n in

to w

orld

tra

de t

hrou

gh s

tren

gthe

ning

the

com

petit

ive

posi

tion

and

faci

litat

ion

of m

arke

t ac

cess

/exp

orts

of

com

pani

es t

o Sw

itzer

land

, EU

and

reg

iona

l mar

kets

.•

Stre

ngth

enin

g th

e en

trep

rene

ursh

ip e

cosy

stem

and

indi

vidu

al a

ctor

s th

roug

h st

reng

then

ing

the

busi

ness

mod

els

of e

ntre

pren

eurs

hip

orga

niza

tions

whi

ch a

re d

evel

opin

g bu

sine

ss s

tart

-ups

and

/or

adva

ncin

g

grow

th e

nter

pris

es; s

tren

gthe

ning

the

poo

l of

men

tors

; and

iden

tifyi

ng in

vest

men

t op

port

uniti

es a

mon

g st

art-

up e

nter

pris

es.

For

outc

ome

4:•

On

polic

y le

vel t

o su

ppor

t th

e de

velo

pmen

t of

evi

denc

e-ba

sed

empl

oym

ent

polic

ies.

•

At

oper

atio

nal l

evel

, to

deve

lop

and

impl

emen

t m

odel

s of

mar

ket-

orie

nted

non

-for

mal

and

adu

lt ed

ucat

ion

and

trai

ning

pro

gram

mes

thr

ough

act

ive

enga

gem

ent

of t

he p

rivat

e se

ctor

.

(5)

Res

ou

rces

, p

artn

ersh

ips

(Sw

iss

Pro

gra

mm

e)

Ten

tati

ve f

inan

cial

co

mm

itm

ent:

C

HF4

7.4m

SD

C a

nd S

ECO

Part

ners

hips

:- M

inis

try

of F

inan

ce; M

inis

try

of E

cono

my;

Min

istr

y of

Pub

lic A

dmin

istr

atio

n an

d Lo

cal S

elf-

Gov

ernm

ent;

Min

istr

y of

Agr

icul

ture

and

Env

ironm

enta

l Pro

tect

ion;

Min

istr

y of

Tra

de, T

ouris

m a

nd T

elec

omm

unic

atio

ns;

M

inis

try

of E

duca

tion,

Sci

ence

and

Tec

hnol

ogic

al D

evel

opm

ent;

Min

istr

y of

Lab

our,

Empl

oym

ent,

Vete

ran

and

Soci

al A

ffai

rs; M

inis

try

of Y

outh

and

Spo

rts;

Nat

iona

l Sta

tistic

s O

ffic

e-

Min

istr

y of

EU

Inte

grat

ion

- Se

rbia

n C

ham

ber

of C

omm

erce

- W

orld

Ban

k; I

MF;

IFC

- Eu

rope

an D

eleg

atio

n in

Ser

bia

(6)

Man

agem

ent/

per

form

ance

res

ult

s, i

ncl

ud

ing

in

dic

ato

rs (

Swis

s Pr

og

ram

me)

, see

cha

pter

6 o

f C

S

- Pr

ogra

mm

e in

terv

entio

ns c

onsi

der

the

need

s of

tar

gete

d ex

clud

ed g

roup

s in

a d

iffer

entia

ted

way

in im

plem

enta

tion

and

stee

ring

. The

exc

lude

d gr

oups

in t

he d

omai

n ar

e: y

outh

; wom

en; r

ural

inha

bita

nts

an

d th

eir

hous

ehol

ds.

- G

ende

r-se

nsiti

ve in

terv

entio

ns, s

uch

as t

arge

ted

educ

atio

n, w

ill r

esul

t in

wom

en’s

em

ploy

men

t, w

hich

will

brin

g ad

ditio

nal s

ocia

l ben

efits

for

wom

en a

nd t

heir

fam

ilies

.

29

Dom

ain

of in

terv

enti

on 3

: Sus

tain

able

Ene

rgy

and

Resi

lient

Cit

ies

(SEC

O)

Ove

rall

obje

ctiv

e: I

ncre

ased

ene

rgy

sust

aina

bilit

y an

d im

prov

ed r

esili

ence

of

citi

esIm

pact

hyp

othe

sis:

Ser

bian

loca

l and

nat

iona

l gov

ernm

ents

and

inst

itutio

ns a

re s

treng

then

ed to

reac

h na

tiona

l tar

gets

rela

ted

to e

nerg

y ef

ficie

ncy

and

rene

wab

le e

nerg

y, by

ena

blin

g an

d pi

lotin

g th

e us

e of

rene

wab

le e

nerg

y, su

ppor

ting

the

impl

emen

tatio

n of

ene

rgy

effic

ienc

y m

easu

res

and

stre

ngth

enin

g en

ergy

man

agem

ent.

Add

ition

ally

, at m

unic

ipal

leve

l, sp

ecifi

c in

frast

ruct

ure

inve

stm

ent

mea

sure

s lin

ked

with

cap

acity

dev

elop

men

t will

enab

le lo

cal s

elf-

gove

rnm

ents

to fu

rthe

r inc

reas

e th

eir r

esilie

nce.

Com

bine

d, th

is w

ill le

ad to

a re

duct

ion

of C

O2

emis

sion

s an

d im

prov

ed li

ving

con

di-

tions

for S

erbi

an c

itize

ns

(1) S

wis

s po

rtfo

lio o

utco

mes

Out

com

e st

atem

ent

1:In

crea

sed

ener

gy e

ffic

ienc

y: Im

plem

enta

tion

of e

nerg

y ef

ficie

ncy

mea

sure

s in

pub

lic in

frast

ruct

ure

and

build

ings

in a

nd b

y se

lect

ed

mun

icip

aliti

es in

crea

ses

ener

gy e

ffici

ency

.

Indi

cato

rs:

Ener

gy e

ffic

ienc

y (S

ECO

SI2

4): A

mou

nt o

f kilo

wat

t hou

rs s

aved

thro

ugh

ener

gy e

ffici

ency

mea

sure

s - B

asel

ine

(201

5): 0

- Tar

get v

alue

(202

1): t

bd a

fter i

ncep

tion

phas

e (M

EEM

P)

Gre

enho

use

gas

emis

sion

s (S

ECO

SI2

3): A

mou

nt o

f CO

2 sa

ved

- Bas

elin

e (2

018)

: 0- T

arge

t val

ue (2

021)

: 3,3

52t C

O2

(MEE

MP)

Livi

ng a

nd w

orki

ng c

ondi

tion

s (S

ECO

): N

o. o

f peo

ple

bene

fitin

g fro

m e

nerg

y ef

ficie

ncy

mea

sure

s in

term

s of

impr

oved

livi

ng a

nd w

orki

ng

cond

ition

s in

reha

bilit

ated

bui

ldin

gs.

- Bas

elin

e (2

018)

: 0- T

arge

t val

ue (2

021)

: 10,

500

peop

le (M

EEM

P)

Out

com

e st

atem

ent

2:In

crea

sed

use

of r

enew

able

ene

rgy

sour

ces:

Ene

rgy

prov

ider

s/pu

blic

util

ities

use

mor

e en

ergy

from

rene

wab

le s

ourc

es a

nd in

nova

tive

tech

nolo

gies

in p

artic

ular

for d

istric

t hea

ting.

Indi

cato

rs:

Rene

wab

le e

nerg

y so

urce

s (S

ECO

SI2

4): A

mou

nt o

f kilo

wat

t hou

rs

addi

tiona

lly p

rodu

ced

from

rene

wab

le e

nerg

y so

urce

s - B

asel

ine

(201

8): 0

- Tar

get v

alue

(202

1): t

bd a

fter i

ncep

tion

phas

e (M

EEM

P)

Save

d gr

eenh

ouse

gas

em

issi

ons

(SEC

O S

I23)

: Am

ount

of t

CO2

save

d an

d av

oide

d - B

asel

ine

(201

8): 0

- Tar

get v

alue

(202

1): t

bd a

fter i

ncep

tion

phas

e (M

EEM

P)

(2) C

ontr

ibut

ion

of S

wis

s Pr

ogra

mm

e

Impl

emen

tatio

n of

ene

rgy

effic

ienc

y m

easu

res

in s

elec

ted

publ

ic in

fra-

stru

ctur

e le

ads

to in

crea

sed

ener

gy e

ffici

ency

in S

erbi

a. A

ccor

ding

ly, th

is co

ntrib

utes

to S

erbi

a’s

achi

evem

ent o

f the

EU

requ

irem

ents

. Th

e im

plem

ente

d en

ergy

effi

cien

cy m

easu

res,

incl

udin

g re

habi

litat

ion

of

publ

ic b

uild

ings

(sch

ools

and

hosp

itals

), be

nefit

pup

ils, t

each

ers,

patie

nts

and

med

ical

sta

ff.

Mile

ston

e •

Crea

te a

war

enes

s in

Ser

bia

for t

he n

eed

of

redu

cing

ene

rgy

cons

umpt

ion,

in c

oord

inat

ion

with

oth

er d

onor

s. A

ssum

ptio

ns:

• Po

sitiv

e an

d pr

oact

ive

attit

ude

of th

e go

vern

men

t to

war

ds im

plem

entin

g en

ergy

legi

slatio

n.•

Besid

es th

e pu

blic

sec

tor,

the

priv

ate

sect

or is

also

reac

tive.

• G

over

nmen

t cre

ates

an

enab

ling

envi

ronm

ent f

or

inve

stm

ent i

n en

ergy

effi

cien

cy.

Risk

s: • In

terv

entio

ns a

re to

o sm

all t

o m

ake

a sig

nific

ant d

iffer

ence

acr

oss

all s

ecto

rs.

• M

ost b

uild

ings

nee

ding

ene

rgy

effic

ienc

y m

ea s

ures

are

ver

y ol

d an

d w

ider

reco

nstru

ctio

n ef

forts

are

nec

essa

ry.

With

spe

cific

inve

stm

ent p

roje

cts,

foss

il fu

els

are

repl

aced

with

rene

wab

le

ener

gy s

ourc

es. W

ith p

ilot p

roje

cts,

inno

vativ

e te

chno

logi

es w

ill be

test

ed

and

show

case

d to

enc

oura

ge re

plic

atio

n an

d in

vest

men

ts in

sim

ilar p

roj-

ects

. Alto

geth

er, t

hese

effo

rts in

crea

se e

nerg

y pr

oduc

tion

from

rene

wab

le

sour

ces,

resu

lting

in a

n in

crea

sed

shar

e of

rene

wab

le e

nerg

y in

the

final

en

ergy

con

sum

ptio

n of

Ser

bia.

In

add

ition

to h

eat p

rodu

ctio

n fro

m re

new

able

ene

rgy

sour

ces

and

ener

gy

effic

ienc

y m

easu

res,

the

elec

trici

ty p

rodu

ctio

n fro

m re

new

able

ene

rgy

sour

ces

mus

t be

incr

ease

d as

wel

l in

orde

r to

reac

h th

e na

tiona

l tar

get f

or

rene

wab

le e

nerg

y sh

are

in th

e to

tal f

inal

ene

rgy

cons

umpt

ion.

Mile

ston

e •

Crea

te a

war

enes

s in

Ser

bia

for t

he u

se o

f ren

ew-a

ble

ener

gy

sour

ces

by s

how

casin

g su

cces

sful

exa

mpl

es a

nd in

nova

tive

tech

no-

logi

es to

pub

lic d

ecisi

on m

aker

s. A

ssum

ptio

ns:

• G

over

nmen

t cre

ates

an

enab

ling

envi

ronm

ent f

or

intro

duct

ion

of re

new

able

ene

rgy

sour

ces.

Risk

s: • Fe

ed-in

tarif

fs, a

s th

e ex

istin

g m

echa

nism

to in

trodu

ce re

new

able

en

ergy

, mig

ht b

e ch

ange

d to

a le

ss a

dvan

tage

ous

syst

em.

(3) C

ount

ry d

evel

opm

ent

outc

omes

Out

com

e st

atem

ent

1:

Incr

ease

d en

ergy

eff

icie

ncy

acco

rdin

g to

Nat

iona

l Ene

rgy

Effi

cien

cy A

ctio

n Pl

an

SDG

7.3

, 9.4

Indi

cato

r: %

of e

nerg

y sa

ved

since

200

8- B

asel

ine

(200

8): 0

- Tar

get v

alue

(201

8): 9

% (t

he u

pdat

ed g

oal w

ill be

def

ined

by

the

gove

rn-

men

t in

2018

)So

urce

: Nat

iona

l Ene

rgy

Effic

ienc

y A

ctio

n Pl

an, i

n ac

cord

ance

with

Dire

ctiv

e 20

06/3

2/ E

C

Indi

cato

r: %

of g

reen

hous

e ga

s em

issio

ns (C

O2)

redu

ced

since

199

0 - B

asel

ine

(199

0): 0

- Tar

get v

alue

(203

0): 9

.8%

Sour

ce: S

erbi

an c

omm

itmen

t in

the

fram

e of

the

Paris

Dec

lara

tion

2015

Out

com

e st

atem

ent

2:

Incr

ease

d us

e of

ren

ewab

le s

ourc

es. (

Nat

iona

l Ene

rgy

Sect

or

Dev

elop

men

t Stra

tegy

202

5 w

ith p

roje

ctio

ns b

y 20

30)

SDG

7.3

; 9.4

Indi

cato

r: %

of r

enew

able

ene

rgy

in th

e Se

rbia

n en

ergy

por

tfolio

- Bas

elin

e (2

009)

: 21%

So

urce

: Nat

iona

l Ene

rgy

Sect

or D

evel

opm

ent S

trate

gy 2

025

with

pro

jec-

tions

by

2030

- Tar

get v

alue

(202

0): 2

7%

Sour

ce: N

atio

nal A

ctio

n Pl

an fo

r RES

in a

ccor

danc

e w

ith D

irect

ive

2009

/28/

EC

30

(4)

Lin

es o

f in

terv

enti

on

(Sw

iss

Pro

gra

mm

e)

For

outc

ome

1:•

MEE

MP:

ene

rgy

effic

ienc

y m

easu

res

at p

ublic

bui

ldin

gs a

t 4

mun

icip

aliti

es•

Ener

gy e

ffic

ienc

y m

easu

res

in t

he D

istr

ict

Hea

ting

Syst

ems

For

outc

ome

2:•

KfW

Bio

mas

s pr

ojec

t: f

uel s

witc

h to

bio

mas

s in

dis

tric

t he

atin

g co

mpa

nies

of

sele

cted

mun

icip

aliti

es

For

outc

ome

3:•

MEE

MP:

intr

oduc

tion

of E

urop

ean

Ener

gy A

war

d fo

r se

lect

ed m

unic

ipal

ities

• M

DR

RP:

tar

gete

d in

terv

entio

ns t

o in

crea

se t

he d

isas

ter

risk

resi

lienc

e in

tw

o m

unic

ipal

ities

Regi

onal

Pro

ject

s •

Regi

onal

Cap

acity

Dev

elop

men

t N

etw

ork

(foc

usin

g on

the

wat

er s

ecto

r)•

ECA

- PP

P

(5)

Res

ou

rces

, p

artn

ersh

ips

(Sw

iss

Pro

gra

mm

e)

Tent

ativ

e fi

nanc

ial c

omm

itm

ent:

CH

F15m

SEC

OPa

rtne

rshi

ps:

- M

inis

try

of M

inin

g an

d En

ergy

- Pu

blic

Inve

stm

ent

Man

agem

ent

Off

ice

(PIM

O)

- C

ity o

f Be

lgra

de-

Loca

l sel

f-go

vern

men

ts

- K

fW-

Civ

il So

ciet

y O

rgan

isat

ions

(6)

Man

agem

ent/

per

form

ance

res

ult

s, i

ncl

ud

ing

in

dic

ato

rs (

Swis

s Pr

og

ram

me)

, se

e ch

apte

r 6

of C

S

- D

urin

g th

e ab

senc

e of

a p

rope

r fu

nctio

ning

for

mal

don

or c

oord

inat

ion,

Sw

itzer

land

will

con

tinue

to

be e

ngag

ed in

the

info

rmal

don

or c

oord

inat

ion

grou

p an

d ha

ve a

clo

se e

xcha

nge

with

oth

er d

onor

s

activ

e in

the

sec

tor

to p

rom

ote

sust

aina

ble

ener

gy in

Ser

bia.

-

Gen

der

equa

lity

will

be

impr

oved

by

crea

ting

a ne

twor

k of

wom

en a

ctiv

e in

the

ene

rgy

sect

or. E

nerg

y pr

ojec

ts w

ill b

e ab

le t

o re

ly o

n th

is n

etw

ork,

whi

ch c

an p

oten

tially

als

o be

use

d to

influ

ence

pol

icy

an

d de

cisi

on m

akin

g pr

oces

ses.

Out

com

e st

atem

ent

3:In

crea

sed

resi

lienc

e of

cit

ies:

Impr

oved

pla

nnin

g an

d m

anag

emen

t of

sele

cted

loca

l sel

f-go

vern

men

ts, i

nclu

ding

targ

eted

infra

stru

ctur

e m

easu

res,

incr

ease

s th

eir r

esilie

nce.

Indi

cato

rs:

Bene

fici

arie

s of

sus

tain

able

urb

an d

evel

opm

ent

(SEC

O S

I21)

: No.

of

inha

bita

nts

bene

fittin

g fro

m s

usta

inab

le u

rban

dev

elop

men

t pro

ject

s (e

.g.,

ener

gy, d

isast

er ri

sk re

duct

ion)

- B

asel

ine

(201

8): 0

- Tar

get v

alue

(202

1): e

stim

ated

inha

bita

nts

130,

300

(Par

acin

52,

250

+

Uzi

ce 7

8,00

0 +

Vrb

as 4

8,90

0 +

Kru

seva

c 13

1,40

0) (M

EEM

P)

Sust

aina

ble

urba

n de

velo

pmen

t an

d ci

ties

(SEC

O S

I22)

: No.

of c

it-ie

s w

ith u

rban

dev

elop

men

t mea

sure

s (e

.g. e

nerg

y, di

sast

er ri

sk re

duct

ion)

- B

asel

ine

(201

8): 0

- Tar

get v

alue

(202

1): m

inim

um 4

(Par

acin

, Uzi

ce, V

rbas

and

Kru

seva

c)

Euro

pean

Ene

rgy

Aw

ard

(EEA

): N

o. o

f EEA

-aw

arde

d lo

cal s

elf-

gov-

ernm

ents

- Bas

elin

e (2

018)

: 0- T

arge

t val

ue (2

021)

: 4 (V

rbas

, Par

acin

, Uzi

ce a

nd K

ruse

vac)

Cap

acity

dev

elop

men

t: m

unic

ipal

sta

ff w

ill im

prov

e th

eir

man

agem

ent

capa

citie

s to

sus

tain

ably

impl

emen

t in

fras

truc

ture

. In

part

icul

ar, t

he

appl

icat

ion

of t

he E

urop

ean

Ener

gy A

war

d ap

proa

ch le

ads

to im

prov

e-m

ent

of t

heir

gene

ral e

nerg

y m

anag

emen

t ca

paci

ties.

Add

ition

al a

ctiv

i-tie

s in

dis

aste

r ris

k re

duct

ion

(DRR

) and

pot

entia

lly u

rban

dev

elop

men

t w

ill f

urth

er in

crea

se t

he (

clim

ate)

resi

lienc

e of

mun

icip

aliti

es.

Mile

ston

es:

• Se

nsiti

ze p

ublic

adm

inis

trat

ion

staf

f fo

r ta

king

into

acc

ount

p

rinci

ples

of

good

gov

erna

nce

whi

le p

lann

ing

and

impl

emen

ting

inf

rast

ruct

ure

prio

ritie

s.

Ass

umpt

ions

:•

Goo

d co

oper

atio

n be

twee

n na

tiona

l and

loca

l lev

el.

• Po

sitiv

e at

titud

e of

mun

icip

ality

to

impl

emen

t en

ergy

legi

slat

ion.

Risk

s: • D

elay

s du

e to

dec

isio

n-m

akin

g pr

oces

ses

in t

he re

leva

nt m

inis

- t

ries

and

mun

icip

aliti

es.

Out

com

e st

atem

ent

3:M

unic

ipal

itie

s ar

e ac

coun

tabl

e fo

r im

prov

ing

ener

gy m

anag

e-m

ent

and

incr

easi

ng r

esili

ence

. (La

w o

n Ra

tiona

l Use

of

Ener

gy,

Nat

iona

l Pro

gram

for

Dis

aste

r Ri

sk M

anag

emen

t)SD

G 1

1.3

Indi

cato

r: %

of

loca

l sel

f-go

vern

men

ts t

hat

have

app

oint

ed E

nerg

y M

anag

ers

- Ba

selin

e (2

018)

: 79

- Ta

rget

val

ue (2

020)

: 145

Sour

ce: L

aw o

n th

e Ef

ficie

nt U

se o

f En

ergy

Indi

cato

r: %

of

loca

l sel

f-go

vern

men

ts t

hat

have

a g

ood

unde

rsta

nd-

ing

and

asse

ssm

ent

of r

isks

rela

ted

to n

atur

al a

nd o

ther

dis

aste

rs

- Ba

selin

e (2

015)

: 2%

-

Targ

et v

alue

(202

1): 2

5-30

%So

urce

: Law

on

Nat

ural

and

Oth

er H

azar

d Ri

sk R

educ

tion

and

Emer

gen-

cy M

anag

emen

t

31

(5)

Res

ou

rces

, p

artn

ersh

ips

(Sw

iss

Pro

gra

mm

e)

Tent

ativ

e fi

nanc

ial c

omm

itm

ent:

CH

F15m

SEC

OPa

rtne

rshi

ps:

- M

inis

try

of M

inin

g an

d En

ergy

- Pu

blic

Inve

stm

ent

Man

agem

ent

Off

ice

(PIM

O)

- C

ity o

f Be

lgra

de-

Loca

l sel

f-go

vern

men

ts

- K

fW-

Civ

il So

ciet

y O

rgan

isat

ions

(6)

Man

agem

ent/

per

form

ance

res

ult

s, i

ncl

ud

ing

in

dic

ato

rs (

Swis

s Pr

og

ram

me)

, se

e ch

apte

r 6

of C

S

- D

urin

g th

e ab

senc

e of

a p

rope

r fu

nctio

ning

for

mal

don

or c

oord

inat

ion,

Sw

itzer

land

will

con

tinue

to

be e

ngag

ed in

the

info

rmal

don

or c

oord

inat

ion

grou

p an

d ha

ve a

clo

se e

xcha

nge

with

oth

er d

onor

s

activ

e in

the

sec

tor

to p

rom

ote

sust

aina

ble

ener

gy in

Ser

bia.

-

Gen

der

equa

lity

will

be

impr

oved

by

crea

ting

a ne

twor

k of

wom

en a

ctiv

e in

the

ene

rgy

sect

or. E

nerg

y pr

ojec

ts w

ill b

e ab

le t

o re

ly o

n th

is n

etw

ork,

whi

ch c

an p

oten

tially

als

o be

use

d to

influ

ence

pol

icy

an

d de

cisi

on m

akin

g pr

oces

ses.

Man

agem

ent

Perf

orm

ance

Res

ults

(val

id f

or a

ll do

mai

ns)

Out

com

es

In t

he a

bsen

ce o

f a

nati

onal

dev

elop

men

t vi

sion

, Sw

itze

rlan

d pr

omot

es t

he S

DG

s in

Ser

bia

to

sens

itis

e fo

r a

tran

siti

on p

roce

ss t

hat

leav

es n

o on

e be

hind

The

SCO

ful

fils

its

role

as

lead

don

or o

f th

e co

mpl

ex s

ecto

r w

orki

ng g

roup

“Hum

an R

esou

rces

and

So

cial

Dev

elop

men

t”

Part

ners

cap

acit

ies

for

tran

sver

sal t

hem

es a

nd r

esul

ts-b

ased

man

agem

ent

(RBM

) are

ens

ured

Effe

ctiv

e po

licy

infl

uenc

ing

wit

h a

focu

s on

spe

cifi

c to

pics

whe

re S

wit

zerl

and

has

an a

dded

val

ue

(VET

, PFM

, inc

lusi

ve r

efor

ms,

loca

l val

ue c

hain

s) f

oste

rs a

coh

eren

t an

d ef

fect

ive

Swis

s ap

proa

ch

Indi

cato

rs

- M

ulti

-sta

keho

lder

pla

tfor

m o

f th

ink

tank

s, p

rivat

e se

ctor

and

civ

il so

ciet

y is

est

ablis

hed

and

soci

ety

al

so o

utsi

de B

elgr

ade

unde

rsta

nd w

hy t

he S

DG

s m

atte

r fo

r th

em-

Issu

es o

f pu

blic

con

cern

and

inte

rest

as

wel

l as

valu

es a

re b

roug

ht u

p to

the

pol

icy

dom

ain

in a

bott

om-u

p ap

proa

ch-

Com

plem

enta

rity

of S

DG

age

nda

with

EU

ref

orm

pol

icy

is e

nsur

ed

- G

ood

coor

dina

tion

with

the

lead

Min

istrie

s (M

inist

ries

of L

abou

r, Em

ploy

men

t, Ve

tera

n an

d So

cial

Affa

irs a

nd

M

inis

try

of E

U In

tegr

atio

n)

- Im

prov

ed in

ter-

min

iste

rial a

nd c

ross

-cut

ting

cons

ider

atio

n of

incl

usio

n an

d ge

nder

equ

ality

as

way

to

en

sure

sus

tain

able

res

ults

and

an

incl

usiv

e de

velo

pmen

t

- Re

gula

r as

sess

men

t of

con

text

ual,

prog

ram

mat

ic a

nd in

stitu

tiona

l ris

k ca

rrie

d ou

t an

d ev

entu

al

m

itiga

tion

mea

sure

s im

plem

ente

d-

Regu

lar

exch

ange

with

par

tner

s ta

king

pla

ce a

nd r

aise

d aw

aren

ess

on

tran

sver

sal t

hem

e, in

clus

ion

is

ad

dres

sed

as p

art

of t

he n

on-d

iscr

imin

atio

n pr

inci

ple

- Ex

chan

ge w

ith p

artn

ers

on R

BM a

nd im

prov

ed r

epor

ting

and

stee

ring

deci

sion

s

- Po

licy

dial

ogue

is a

n in

tegr

al p

art

of S

wis

s in

terv

entio

ns-

Swis

s so

ft p

ower

and

cre

dibi

lity

are

bett

er u

sed

- Ro

les

and

resp

onsi

bilit

ies

(civ

il so

ciet

y, p

artn

ers,

SC

O; E

mba

ssy)

are

cle

ar a

nd r

espe

ctiv

e m

essa

ges

de

fined

and

con

stan

tly a

dapt

ed

32

Governance

Economic Development and Employment

Sustainable Energy and Resilient Cities

Other interventions*

Total budget allocation 2018 - 2021

Governance

Economic Development and Employment

Sustainable Energy and Resilient Cities

Other interventions*

Total budget allocation 2018 - 2021

Disbursements planned 2018 - 2021

Commitments planned 2018 - 2021

32.2

25.0

n/a

4.5

61.7

34.8

27.7

n/a

4.5

67.0

SDCMio CHF

SDCMio CHF

52%

41%

n/a

7%

100%

52%

41%

n/a

7%

100%

in % of total

in % of total

2.0

20.0

14.0

n/a

36.0

3.0

20.0

15.0

n/a

38.0

SECOMio CHF

SECOMio CHF

6%

55%

39%

n/a

100%

8%

53%

39%

n/a

100%

in % of total

in % of total

34.2

45.0

14.0

4.5

97.7

37.8

47.7

15.0

4.5

105.0

Total SDC & SECO

Mio CHF

Total SDC & SECO

Mio CHF

Annex 3: Budget Allocations

* Without office management costs, incl . small actions/global credit SCO. Estimated office management costs for the International Cooperation amount to CHF 1.5 million/year. In addition, SEM is planning to disburse CHF 2.0m during the period 2016-19. Serbia also benefits from regional and global initiatives financed by Swiss cooperation. When these measures are not earmarked to a specific country, they are not included in the financial projections for this strategy.

Annex 4: Photo Legend Photo

Page 5

Page 6

Page 7

Page 8

Page 9

Page 10

Page 11

Page 12

Page 13

Page 14

Page 15

Page 16

Page 17

Page 18

Page 20

Location

Kosjeric

Donja Kamenica

Knjazevac

Kikinda

Novi Pazar

Novi Sad

Belanovica, Ljig

Obrenovac Novi Pazar

Belgrade

Arandjelovac

Kragujevac

Padinska Skela, Belgrade Subotica

Bobija Mountain

Project

Private sector development in southwest Serbia: support to raspberry production in west Serbia

Oldest church in the country

Everyday life in Serbia

Everyday life in Serbia

European PROGRES: support to entrepreneurship: coffee shop

Strengthening the oversight function and transparency of the Parliament: debate on e-parliament initiatives

Private sector development in southwest Serbia: support to honey production in west Serbia

Support to migration management in Serbia: leisure activities in migrant reception center

European PROGRES: support to entrepreneurship: textile school

Strengthening the oversight function and transparency of the Parliament: National Parliament

Reform of Local Finance Project (RELOF): enhancement of local finances planning workshop

From Education to Employment (E2E): apprentice training session in an engineering company

Combined heat and power plant fuelled by biomass: energy efficiency measures in Hospital Dr. Laza Lazarevic

Prevention of irregular migration and support to reintegration of returnees in Serbia: returnees family participating in integration program

Hiking group enjoying the view

Domain

Domain

Editor:Swiss Federal Department of Foreign Affairs FDFASwiss Agency for Development and Cooperation SDC3003 Bernwww.fdfa.admin.ch

Federal Department of Economic Affairs, Education and Research EAERState Secretariat for Economic Affairs SECO 3003 Bernwww.seco-cooperation.admin.ch

Design:Mirjana Dumic

Photographs:Swiss Cooperation Office Serbia - Darko Nikolic and Dario Maric

Orders:Information FDFAPhone: +41 58 462 31 53E-mail: publikationen@eda.admin.ch

Contact:Swiss Agency for Development and Cooperation SDCWestern Balkans Divisioninfo@eda.admin.ch State Secretariat for Economic Affairs SECOEconomic Cooperation and Developmentinfo.cooperation@seco.admin.ch

Swiss Cooperation Office SerbiaEmbassy of Switzerland11000 Belgradebelgrade@eda.admin.ch

This publication can be downloaded from the website https://www.eda.admin.ch/countries/serbia/en/home/representations/cooperation-office.html

Bern, 2018