Empowering Western Balkans: Addressing Key Challenges for Smart Growth and Regional Cooperation

1. Jelica Minić Deputy Secretary General of the RCC Sarajevo, 25 May 2011 What Kind of Social Agenda for the Western Balkans Western Balkans and the Social Agenda 2020

2. Key challenges in the Western Balkans • Reconciliation, stability and good neighbourly relations. • Necessity for a new model of development and growth (export led growth, investments in tradables, SMEs, PPP) • Re-positioning in European and global constellations. • Poor physical, institutional and social infrastructure. • Under-utilization of existing resources and labour in particular. • Lack of human capital and low innovation capacity. • Slow reforms – strengthening the EU Accession leverage is needed. • Improved regulatory framework, institution building and enhanced administrative capacities . • Synchronizing and focusing activities of regional cooperation networks.

3. Europe 2020: Relevance for Enlargement Policy • Europe 2020 offers the enlargement countries an anchor for reforms. • The countries are invited to adapt and adopt relevant headline targets • Enlargement countries should participate actively in the European Union programmes. • The countries are invited to organise their work on the Europe 2020 related issues in regional groups.

4. Europe 2020: Three interlinked priorities 1.Smart growth: developing an economy based on knowledge and innovation 2.Sustainable growth: promoting a more efficient, greener and more competitive economy 3.Inclusive growth: fostering a high-employment economy delivering social and territorial cohesion

5. Europe 2020 headline targets additional suggestions

6. Mechanisms of cooperation in the framework of Europe 2020 • Europe 2020 flagship initiatives recognise that in some areas, enlargement countries can work together with member states and join the open method of coordination exercises. • Policy coordination organised under the 7 initiatives implies peer learning, setting joint targets and regular reporting. • These activities can be financed via EU Programmes such as the 7th Framework Programme, Competitiveness and Innovation, Lifelong Learning and others. • Most enlargement countries participate in EU programmes and can, if their administrative capacities allow, fully benefit from activities at the EU level.

7. New RCC Strategy for 2011-2013:Horizontal Priorities • Represent the region • Assist the SEECP • Monitor regional activities • Exert strategic leadership in regional cooperation • Provide a regional perspective in donor assistance • Support increased involvement of civil society in regional activities Priority areas • Economic and social development • Energy and infrastructure • Justice and home affairs • Security cooperation • Building human capital and overarching issues

8. Priority 1: Smart Growth

9. Priority 2: Sustainable Growth

10. Priority 3: Inclusive Growth

11. Priority 4: Governance for Growth

12. Western Balkans in 2020 Result of a Broad Consultative Process

13. Survey of Regional Initiatives in SEE • - Summary Findings - • Institutional Outline of Cooperation in SEE • Funding • Regional Coordination • Overview of activities

14. Annex I Taskforces and Initiatives in SEE

15. Annex I Taskforces and Initiatives in SEE

16. Annex I Taskforces and Initiatives in SEE

17. Annex I Taskforces and Initiatives in SEE

18. Annex I Taskforces and Initiatives in SEE

19. Annex I Taskforces and Initiatives in SEE

20. Figure 1. Institutional structure and legal form of RIs

21. Figure 2. Sources of funding of RIs in 2010

24. Additional suggestions 1. Networking and information exchange– a number of RIs indicated that there is a need for regular periodic meetings, both between the RIs and with donors in order to exchange information and network with others; 2. Increasing awarenesson regional cooperation initiatives and structures – awareness raising activities to target not just a narrow circle of practitioners, but also the general public in the countries of the region; 3. Better streamlining of existing RIs – avoiding and eliminating duplication, while further strengthening successful structures and cooperation programmes; 4. Involvement of regional civil society initiatives and networksin the work of RCC and other sectoral organizations.

25. Enlargement Strategy and Main Challenges 2010-2011 “The enlargement process contributes to the objectives of the Europe 2020 strategy by extending the area of the EU’s regulatory framework and creating new trading opportunities. The Commission welcomes the intention of many enlargement countries to reflect the Europe 2020 strategy in their national reform priorities. The Commission will associate enlargement countries with initiatives taken at EU level to meet the goals of smart, sustainable and inclusive growth, delivering high levels of employment, productivity and social cohesion... The Commission will propose to the Regional Cooperation Council that it sets up platforms for dialogue and peer review in …areas in line with Europe 2020 priorities. When programming IPA assistance, the Commission will take into account the priorities of the Europe 2020 strategy”. 9 November, 2010

26. Relevance of EU umbrella strategies for candidates and potential candidates • Strong potential to anchor reforms and facilitate EU accession: • competitiveness, employment, education, research, innovations, • meeting challenge of good governance - not additional criteria • Strategic thinking - strategic approach to policy development: • identifying regional priorities and objectives in different areas, prioritization • Commitment to common goals helps to change national policies: • strategic documents, action plans, common targets, policy learning • Adoption of good practice: • improving system of monitoring, peer reviews, benchmarking, and collecting • indicators, harmonised with EU structural indicators (EUROSTAT) • Support of European Commission - facilitating implementation: • deepening policy dialogue with EU, strengthening institutional capacities, • support from pre-accession funds (IPA; IPA Multi-Beneficiary) • Regional initiatives / activities - asset for supporting reforms: • coordinated efforts and strengthening focus on Europe 2020 related reforms • RCC - Regional Cooperation Council’s role: • providing political commitment, networking and coordination, streamlining, • strengthening bottom-up approach and regional ownership

27. Social Development from the RCC perspective • RCC priority: mainstream social development into economic reform deliberations • Major areas: • 1. Labor and Employment Policy • Ministries of Labor and Social Policies, Center of Public Employment Services of SEE Countries • 2, Social Dialogue • SEE Trade Union Forum • Adriatic Region Employers’ Center • 3. Public Health • SEE Health Network

28. Social Development from the RCC perspective • Develop a regional social agenda with clear policy priorities and policy targets • RCC and FES to organize 6 regional thematic workshops on specific social policies that will be agreed with participants • Use the open method of coordination for concerted strategic and political cooperation based on agreed common objectives and indicators