Regional Development Agency - South Regional Development Strategy RDA – SOUTH’S APPROACH TO STRATEGY DESIGN November 20

1. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu Regional Development Agency - South Regional Development Strategy RDA – SOUTH’S APPROACH TO STRATEGY DESIGN November 2009 An EU funded Project managed by the European Commission Liaison Office Implemented by:

2. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu Development of Regional Economic Development Strategy TABLE OF CONTENTS: Institutional and management structure: - roles of the RDA South in the process, the Secretariat etc. - kinds of working groups and their roles, regional forum The REDS process: - logical sequence of the process – the 6 step approach reflecting the principles of REDS methodology Operational questions: - capacity building to RDA South and WG’s - “fast track” approach, project proposals, grant schemes - timeline for the process Conclusions An EU funded Project managed by the European Commission Liaison Office Implemented by:

3. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu Institutional and management structure Main roles of the RDA South in the REDS process: To be the organizer (formation of WG’s + ToR for WG’s etc.) To be the time guardian (maintaining the process flow) To be the provider of training and capacity building for WG’s To be the provider of initial analytical support (SEA, SWOT) To provide support for implementation/action planning To provide leadership in financial planning To lead the monitoring and evaluation efforts In close cooperation with the Standing Committee of the Regional Stakeholders Forum: - to be the Secretariat of the process - to be the editor of main draft documents An EU funded Project managed by the European Commission Liaison Office Implemented by:

4. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu Institutional and management structure Institutional framework of the process organized by the RDA South includes the following organs: - Core Partnership Working Groups (CPWG) - Thematic Working Groups (TWG) - Regional Stakeholder Forum (RSF) The number and membership of Working Groups will over time undergo changes during the strategy building process. An EU funded Project managed by the European Commission Liaison Office Implemented by:

5. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu Institutional and management structure Core Partnership Working Groups: The main place where partnerships develop It is desirable to form two CPWG’s in a region (max. 3 where strong justification exists) Membership diversified but limited to 18-20 people The CPWG’s themselves are permanent and exist throughout the strategic regional development process The main place where initial consensus is formed as to the vision, strategic priorities and measures Support RDA South in developing sustainable strategies Assist RDA South in project selection, implementation and monitoring An EU funded Project managed by the European Commission Liaison Office Implemented by:

6. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu Institutional and management structure Thematic Working Groups (TWG’s): Are created by the CPWG’s on as needed basis later in the process for analytical reasons or when programming and specific measures are under development Their character is ad hoc and temporary but they may also be helpful in the implementation, monitoring and evaluation They include some partners from the CPWG’s and additionally members with specific technical knowledge are also being seconded Preferably, membership number should not exceed 7-10 An EU funded Project managed by the European Commission Liaison Office Implemented by:

7. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu Institutional and management structure Regional Stakeholder Forum consists of two bodies: 1. The periodic Regional Stakeholder Forum Conferences - Consists of 8-10 leaders of each CPWG plus other strategic partners (the RDA South Supervisory Board members = Mayors and representatives of central level institutions, international donors etc.) for a total of max. 30-32 people. - Validates work of CPWGs, builds regional consensus essential for central level and international partners 2. Standing Committee of the Regional Stakeholder Forum consists of max. of 5-6 people. - prepares the periodic conferences - partners with RDA South in drafting and managing the REDS process An EU funded Project managed by the European Commission Liaison Office Implemented by:

8. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu The Six-Step REDS Process The REDS process can be described as a series of steps that present a logical sequence structured along methodological tools to be applied at each step. (“Steps” rather than “Phases” are used to describe the process cycle, as several steps may be taking place in parallel, whereas “Phases” too strongly suggest consecutive character of activities.) The following steps describe the REDS cycle: - Step I – Preparation - Step II – Analysis - Step III – Strategy building - Step IV – Programming and Implementation - Step V – Monitoring & Evaluation - Step VI – Project development & Management An EU funded Project managed by the European Commission Liaison Office Implemented by:

9. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu The Six-Step REDS Process Step I – Preparation Getting prepared and organized is the “homework” that RDA South has to complete to start the process and organizing it in a way as to lay the foundation for successful strategy. It starts with the Stakeholder Analysis performed on the basis of interviews and questionnaires and careful analysis helps identify the participants of the CPWGs and process leaders. As an outcome, the RDA South will propose membership in CPWGs which will meet several criteria of representation. RDA South will prepare the ToR for the WGs. The ToRs have to clearly describe the role of the WGs in the whole process and reflect the basic principles of partnership building and consensus seeking. Partnership development is a long process and as the key success factor, it has to be properly facilitated. An EU funded Project managed by the European Commission Liaison Office Implemented by:

10. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu The Six-Step REDS Process Step I – Preparation (continued) RDA South has to plan for and prepare capacity building / training for stakeholders. The training and specific tools will be introduced at various stages of the process in an “on the job training” fashion. Another important task of the RDA South is the data collection and preparation of the preliminary SEA. The outcome will be a preliminary, baseline analysis report which will enable the CPWGs to continue with the initial regional needs analysis / SWOT. Regional Socio-Economic Profile is a living document that will grow over time as the needs of the process grow, as new sources of reliable data are being discovered and as new analytical capacity of the TWGs is available. It may take a long time until a comprehensive Regional Socio-Economic Profile is developed. An EU funded Project managed by the European Commission Liaison Office Implemented by:

11. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu The Six-Step REDS Process Step II – Analysis This is a period of intensive work with the CPWGs through a series of Workshops and meetings. Workshop 1 with the newly created CPWGs needs to accomplish the following: - Understanding the purpose of establishing RDA South - Understanding the purpose behind drafting the REDS - Understanding the general methodology of REDS and the importance of WG input - Presentation of the ToR for the Working Group - Review of the initial Socio-Economic Profile and questions to be considered (needs) An EU funded Project managed by the European Commission Liaison Office Implemented by:

12. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu The Six-Step REDS Process Step II – Analysis (continued) Workshop 2 with the CPWGs needs to focus on regional SWOT and include the following: - Capacity building for the regional SWOT - Conducting the regional SWOT analysis - Building WG consensus as to the vision for the region and potential Strategies and Measures RDA South will then proceed to organize the 1st Regional Stakeholder Forum Conference. The purpose is to: - validate the results of the work of CPWGs - arrive at the regional consensus related to the vision for the region, the needs analysis / preliminary SWOT and potential Strategies and Measures - establish the Regional Stakeholder Forum Standing Committee and designate members. An EU funded Project managed by the European Commission Liaison Office Implemented by:

13. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu The Six-Step REDS Process Step III – Strategy building With the specific guidance and capacity building provided by the RDA South, the CPWGs will continue work aiming at further developing the strategy. This more advanced work will include a series of discrete activities which may include: - Clearly defining the strategic Objectives - Listing of potential measures that could be undertaken - Considering / elaborating of related scenarios - Selecting of available strategic alternatives At this stage the CPWGs may consider creating the first Thematic Working Groups to focus work on specific measures and alternative scenarios, as well as bring into the process specific technical and analytical skills. The TWGs need to early introduce into their work the cross-cutting themes for increased sustainability. An EU funded Project managed by the European Commission Liaison Office Implemented by:

14. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu The Six-Step REDS Process Step III – Strategy building (continued) Only after achieving satisfactory WG consensus on these outcomes the Standing Committee of the RSF together with the RDA South will proceed to organize the 2nd Regional Stakeholder Forum Conference. The purpose is to: - validate the results of the work of CPWGs - arrive at the regional consensus related to the strategic objectives, strategic priorities and measures to be implemented. The consensus arrived at the Conference will constitute the early feedback for the key decision makers in the region (such as the Mayors) on the shape of the final REDS. An EU funded Project managed by the European Commission Liaison Office Implemented by:

15. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu The Six-Step REDS Process Step IV – Programming and Implementation The outcomes and the consensus reached as a result of the 2nd Regional Stakeholder Forum Conference provide the base for the continuation of the efforts of the working groups (both, the CPWGs and the TWGs) in the area of programming. The goal at this stage is to arrive at a consistent, realistic and comprehensive Regional Development Program. Working groups will work on the components of this program including consideration of specific measures or projects. At this stage, based on the feedback from the CPWGs, the Standing Committee of the RSF together with the RDA South need to start putting together the first draft of the REDS document. An EU funded Project managed by the European Commission Liaison Office Implemented by:

16. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu The Six-Step REDS Process Step IV – Programming (continued) This draft needs to be presented, discussed and agreed upon by the CPWG. The draft REDS document which includes the proposed Regional Development Program will be presented at the 3rd Conference of the RSF. This draft will only contain a rough version of the Implementation and Funding Plans. After a discussion and possible revision this draft needs to be approved by the RSF through a consensus. At this point it may begin its public consultation process leading to the final approval. Another outcome of these efforts is a set of project fiches which is the beginning of the process of building a pipeline of eligible projects awaiting funding and implementation. An EU funded Project managed by the European Commission Liaison Office Implemented by:

17. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu The Six-Step REDS Process Step IV – Implementation (continued) The Implementation and Funding Plan will be undergoing further refinement, while priority regional projects which may have received early funding will begin the process of implementation. The implementation process will be supported by the RDA South in partnership with the working groups. An EU funded Project managed by the European Commission Liaison Office Implemented by:

18. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu The Six-Step REDS Process Step V – Monitoring and Evaluation Development of a proper Monitoring and Evaluation System is an essential part of the strategic process and is reflected in the strategy approved by the Regional Stakeholders Forum. RDA South will maintain partnership with the Working Groups to sustain the monitoring activities on project level but will also maintain contact with the Regional Stakeholder Forum through its Standing Committee to monitor the achievement of goals. RDA South in cooperation with the Standing Committee will organize periodic conferences of the Regional Stakeholder Forum to evaluate the impact of the Strategy on the development of the region. An EU funded Project managed by the European Commission Liaison Office Implemented by:

19. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu The Six-Step REDS Process Step VI – Project development and continued management of the development process RDA South together with its partners will continue the process of managing the development process. This will include continuous analysis of data to update the SEP. The evaluation outcomes may suggest the continued implementation of the original strategy. More often, however, as a result of the dynamically changing socio-economic conditions, the original objectives need to be reconsidered or modified. It will at some point require going back to Step III and then subsequent steps of the process as described earlier to introduce adjustments and modifications to the original strategy. An EU funded Project managed by the European Commission Liaison Office Implemented by:

20. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu The Six-Step REDS Process Step VI – Project development and continued management of the development process (continued) RDA South also needs to continue activities related to project development. It is important, for a variety of reasons, to maintain a pipeline of eligible projects which significantly exceeds (not les than 150%) the potential funding available at any given time. An EU funded Project managed by the European Commission Liaison Office Implemented by:

21. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu Some Final Operational Questions Capacity building in RDA South and WG’s - The regional development process is new in Kosovo where there are no strong traditions of inter-municipal cooperation. Capacity to develop and use tools that are necessary in this process is missing. This is the reason why the RDA South and the WG’s need to be supported with properly structured and timely technical assistance. - The RDA South will need to develop capacity building programs that need to be delivered to the stakeholders right from the outset of the process. - The “training on the job” methodology needs to be used where detailed methodology and tools are introduced in a step-by-step way as they are becoming essential for the process. An EU funded Project managed by the European Commission Liaison Office Implemented by:

22. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu Some Final Operational Questions The “fast-track” approach - The pressure to produce the results in a narrow timeframe may seem tempting to introduce some shortcuts which may not be beneficial for the process. Drafting a good REDS is a lengthy process which should not be rushed without the risk of derailing it. - The “fast track” approach only at this point needs to elaborate some proposals for the application of the grant scheme. This can be done in parallel to the primary process of strategy building. - Early availability of grants may be very beneficial to the process as may provide a stimulus for the partners / members of the working groups to maintain interest in continued participation (which is on voluntary basis). An EU funded Project managed by the European Commission Liaison Office Implemented by:

23. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu Some Final Operational Questions The timeline for the process - The process as structured by ECLO needs to be implemented on a very tight schedule. It needs to deliver a first-cut strategy draft before the middle of the year or before the next RDA South operating grant is decided upon. - This will require the RDA South to intensify the process by tightening the management, maintaining the process flow and adhering to the established milestones. However, we need to remember that success of the REDS is based on strong and effective partnerships and these take time to develop. - RDA South will establish a specific timeline of the process and its milestones depending on local conditions (political landscape, availability of good partners etc.) An EU funded Project managed by the European Commission Liaison Office Implemented by:

24. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu Some Final Operational Questions The timeline for the process (continued) Below is an example of a tentative timeline with specific process milestones as foreseen by RDA South: Step 1 Completed by 05.12. 2009 - Stakeholders’ analysis completed and membership of WG proposed by 30.11.2009 - Initial data collected and first SEA completed by 05.12.2009 - ToR for CPWG’s completed by 10.12.2009 - Training materials for workshops by 15.12.2009 Step 2 Completed by 05.02.2010   - Workshop 1 for CPW’s (2x) completed by 18.12.2009 - Workshop 2 for CPWG’s (2x) completed by 15.01.2010 An EU funded Project managed by the European Commission Liaison Office Implemented by:

25. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu Some Final Operational Questions The timeline for the process (continued) - 1st Regional Stakeholder Conference conducted by 31.01.2010 - Meeting of Standing Committee by 05.02.2010 Step 3 Completed by 31.03.2009   - Two meeting of CPWG each (=4 meetings) conducted by 28.02.2010 - Thematic WG’s membership proposed by 15.03.2010 - 2nd Regional Stakeholders Forum conducted by 21.03.2010 Step 4 Ongoing activities of programming and implementation starting 01.04.2010   - Four meetings of CPWG’s and TWG’s each by 15.05.2010 - 1st Working draft of REDS developed by 20.04.2010 - 3rd Conference of Regional SF by 30.04.2010 An EU funded Project managed by the European Commission Liaison Office Implemented by:

26. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu Some Final Operational Questions The timeline for the process (continued) - Draft outline of Implementation and Funding Plans by 20.05.2009 - Complete draft of the first “prototype” REDS ready for submission to ECLO by 15.06.2010 - Implementation activities to be supported by RDA South and WG’s to start as early as needed (possibly after March 2010) Step 5 Ongoing activities (starting April 2010) - Monitoring and Evaluation by September (initial version by 15.05. 2010) - Revised M&E system by 30.09.2010 - Every 6 months starting in September 2010 periodic conference of RSF to evaluate implementation progress and impact on regional development An EU funded Project managed by the European Commission Liaison Office Implemented by:

27. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu Some Final Operational Questions The timeline for the process (continued) Step 6 Ongoing activities starting 01.09.2010   - Explained and improved SEA by 30.11.2010 - Improved and more comprehensive draft of REDS ready by 15.12.2010 - Conference of RSF before 31.12.2010 An EU funded Project managed by the European Commission Liaison Office Implemented by:

28. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu Conclusions Methodology and process outlined in the presentation meets all the EU criteria and is consistent with the philosophy adopted by the project. In particular: It adopts the bottom-up approach to strategy building. All strategies and measures are arrived at through the process taking place at the working group level. It therefore also reflects the proper understanding of subsidiarity principle. The process is fully transparent where neither the public or private sectors nor other community participants in the process can push through their programs (and later projects) without working out a consensus with the remaining partner categories. It meets the partnership imperative by adopting clear ToR for the working groups where all the principles of partnership development will be reflected. An EU funded Project managed by the European Commission Liaison Office Implemented by:

29. EU Support for Regional Economic Development in Kosovo Mbështetje e BE për Zhvillimin Ekonomik Rajonal në Kosovë Podrška EU za Regionalni Ekonomski Razvoj na Kosovu Conclusions (continued) The RDA South itself positions itself as a partner in support of the process rather than being in any decision-making position. While all the programs and then projects should and will be based on economic sustainability principle, the cross-cutting issues of equal opportunities for all social groups and of environmental sustainability will be addressed right from the outset of all programming and project preparation making then an advantage to the projects rather an add-on burden. RDA South believes that REDS building process following this outline presentation can be successful in fostering economic development of the south region. An EU funded Project managed by the European Commission Liaison Office Implemented by: