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Croatia
>> Regional Overview >> Croatia Overview Activity Data Sheet
PROGRAM: Croatia
TITLE & NUMBER: Mitigation of Adverse Social Conditions and Trends, 160-034
STATUS: New
PROPOSED FY 2001 OBLIGATION AND FUNDING SOURCE: $2,661,000 (AEEB)
PROPOSED FY 2002 OBLIGATION AND FUNDING SOURCE: $3,600,000 (AEEB)
INITIAL OBLIGATION: FY 2001 ESTIMATED COMPLETION DATE: FY 2006Summary: Social conditions are a significant factor in the political environment of Croatia now and could determine the success or failure of the Government of Croatia's (GOC) economic and political reform effort. The increase in resources available this year for assistance to Croatia makes it possible to address social transition issues in order to find fair and effective solutions to unemployment problems and other labor-related issues, and assist in pension reform through public education. The program will also address issues of health, education, and the special needs of vulnerable groups.
Program Categories include health partnerships, social transition policy, poor and vulnerable groups, social safety net programs, labor market transition, tripartite and pension reform.
Key Results: The principal results expected are (1) improved efficiency of pension systems; (2) restructured labor market and tripartite social pact; and (3) improved advocacy for and social service delivery to vulnerable groups.
Performance and Prospects: To improve efficiency of pension systems, USAID will provide support to the public education program of the Croatian government for pension reform. In FY2001, USAID proposes to obligate $0.75 million for pension reform.
USAID is using regional FY2000 funds under the American International Health Alliance (AIHA) to conduct two workshops aimed at improving health administration, assisting in environmental protection, strengthening community health and primary care systems through the "Healthy Cities" program launched by the Croatian government. Pending the outcome of these events and requests from the Ministry of Health, bilateral funds may be added to the AIHA regional cooperative agreement for further assistance. USAID will also consider limited support to restructuring of the national health insurance system and public health issues. In FY2001, USAID proposes to obligate $0.4 million for health activities.
USAID will continue to support Croatia's labor movement through a cooperative agreement with the American Center for International Labor Solidarity (ACILS). Current work focuses on promoting labor involvement in economic policy reform, including work force adjustment linked to restructuring and privatization of state enterprises, as well as pension reform. In addition, the Mission will explore opportunities to engage with the government on reform of labor codes to facilitate part-time employment, deregulation of hiring and firing decisions, and restructuring of unemployment benefits.
To help maintain the momentum of the tripartite discussions among government, employers and labor unions, USAID is considering a program of support that will involve sponsorship of joint research and policy dialogue on key issues of mutual concern, as well as facilitation of alternative dispute resolution mechanisms. The Mission believes that the development of consensus among the tripartite groups on key reform issues is critical to maintaining the momentum of reform. In FY2001, USAID proposes to obligate $1.1 million for labor union reforms and the tripartite process.
Under this Strategic Objective, USAID will consider undertaking programs to address special problems of vulnerable groups which may include youth, Roma, unemployed, elderly without pensions and victims of violence and trafficking. High unemployment has resulted in youth selling drugs and smuggling as a way of making a living from the economy, as well as turning to drugs and crime as a way of passing time. Currently, Croatia is seen as a transit point for trafficking in women. However, with the increase in tourism, it may become a destination country. There are no provisions for those women who escape traffickers and who need assistance, shelter and the resources to return to their home countries. In FY2001, USAID proposes to obligate $0.2 million for assistance to these vulnerable groups.
In FY2001, USAID proposes to obligate $0.211 million for training and program support related to all activities under this SO.
USAID will continue these activities throughout 2002. The Tripartite activity will just be getting underway, the concern for vulnerable groups will not have dissipated and the Healthy Cities will be midway through its first round of public outreach and possible environmental activities.
Beneficiaries: Direct beneficiaries in pension reform and labor union activities include all employed workers in Croatia including the union members who comprise 80% of the workforce. These beneficiaries must select a new pension program based on information received through the various education channels including USAID's pension reform outreach activity. In the health sector, beneficiaries are residents of selected towns and villages whose municipal management through civil society mechanisms, may chose assistance in areas of public health outreach/education, and or environmental protection. In the Tripartite area, all employed workers will directly benefit as the country moves through economic restructuring and privatization via active communication and problem solving among the three key societal parties-government, employers and labor unions.
Possible Adjustments to Plans: Further assessment and program development will be presented for USAID/Washington consideration, including a fuller SO framework.
Other Donor Programs: The World Bank, the Open Society Institute and several European donors support selected projects. The World Bank announced that social reform is one of the four pillars of a Structural Adjustment Loan (SAL) now under development. The World Bank also plans new loans related to pension and health reform. USAID is closely coordinating its work in these areas with the World Bank.
Principal Contractors, Grantees, or Agencies: USAID will implement its social transition activities primarily through U.S.-based NGOs and contractors, including the American International Health Alliance and the American Center for International Labor Solidarity and Carana Corporation that work on pension reform public education.
Selected Performance Measures: This objective was recently approved as part of the new USAID Strategic Plan for assistance to Croatia. The performance monitoring plan is under development.
U.S. Financing
(In thousands of dollars)
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Last Updated on: May 29, 2002 |
