THE SYSTEM OF LOCAL GOVERNMENT AND DECENTRALIZATION IN

THE SYSTEM OF LOCAL GOVERNMENT AND DECENTRALIZATION IN NORTH MACEDONIA AND SERBIA

GOVERNMENT STRUCTURE • Federal system in which the federal government and governments of six republics and two provinces (with limited autonomy) shared power and authority. After the death of President Josip Broz Tito in 1980, the position of head of state began annual rotation among members of eight-member State Presidency. Federal Executive Council (FEC) acted as cabinet; its president was prime minister and de facto head of government. The legislative branch was bicameral Federal Assembly (Skupstina), representing republics and social organizations.

• Government structure at the republic level was essentially the same as that at the federal level. This included multi-member presidencies headed by a single member designated as president of the republic. In multiethnic republics such as Bosnia and Hercegovina, members of the presidency were allotted and selected by ethnic group. • Through 1990 each republic had a three-chamber assembly, including the chambers of associated labor and communes and the sociopolitical chamber. Republic executive councils included a full complement of ministries, including foreign ministries.

• The governments of the "autonomous" provinces Kosovo and Vojvodina had the same structure; in the years of true autonomy, 1974 -88, the provinces' delegates to the federal State Presidency and the federal Chamber of Republics and Provinces took independent positions on some issues. • Beginning in 1988, however, Serbia tightened control over the provinces by purging the Kosovo and Vojvodina leagues of communists (hence the government leadership) and inserting pro-Serbian individuals. Amendment of the constitution of Serbia, to which the provinces were bound, over- rode the autonomy provisions of the 1974 federal Constitution.

LOCAL GOVERNMENT IN YUGOSLAVIA • Local government in Yugoslavia was based on the unique institution of the commune, officially defined as "a selfmanaging sociopolitical community based on the power of and selfmanagement by working-class and all working people. “ • In 1988 Yugoslav local government consisted of about 500 communes. Beginning in the 1950 s, the communes held all political authority not specifically delegated to government at the federal or republic level; they were the source of Yugoslavia's claim that, unlike the centralized Soviet system, Yugoslav socialism truly gave power to the workers. • Because they generated pockets of political power controlled by local party officials, the communes also contributed to the fractious, unfocused nature of political power throughout the country after the death of Tito.

• The district, next-highest political level above the commune, controlled law enforcement and elections, but functions such as economic planning, management of utilities, and supervision of economic enterprises were the responsibility of the commune. Workers' councils of industrial enterprises were obliged to submit financial records to the communes to justify the setting of worker wage. - The administrative status of districts has not been modified by the Act of 1955. The district serves as a reviewing and controlling authority. The District implements, or controls the implementation of, the laws of the Federative Republic and the Federated Republics.

- The District Council is empowered to enforce mandatory measures if the municipality refuses or neglects to fulfil its obligations. • The commune was also the lowest level in the complex delegate system that ultimately elected members of the Federal Assembly. Workers, sociopolitical organizations, and local communities elected the members of three-chamber commune assemblies, which in turn elected delegates to republic and provincial assemblies and delegates to the Federal Chamber of the Federal Assembly. Delegates to the republic and provincial assemblies elected members of the Chamber of Republics and Provinces, of the Federal Assembly, but they had no voice in choosing the Federal Chamber.

• In practice, individual voters at the commune level chose only from closed lists of delegate candidates, with little regard for capacity to represent a constituency. Although liberalization of the electoral system was frequently discussed, no open nomination process had emerged by 1990. • Both commune and republic assemblies had three chambers, each representing a sector of society (associated labor, local communities, and sociopolitical organizations). Because those categories overlapped, some citizens were represented by more than one delegate.

• Behind the principle of workers' self-management, prescribed at length in the 1974 Constitution, was the concept that selfmanaging citizens' organizations would assume complete governmental control and the state would disappear entirely at some point. • However, in practice, grass-roots political power shrank in the 1980 s, especially as it applied to economic policy. Exercise of this power was blocked by an intermediate layer of political managers.

THE BASICS Citizens have a guaranteed constitutional right to local selfgovernment The municipality is a local self-government unit. The local self-government in the republic of North Macedonia is territorially organised in 81 municipalities, of which 10 are in the City of Skopje. All municipalities have equal competences. The municipality performs its tasks through organs elected directly by the citizens. Citizens exercise their right to local self-government directly and through their representatives in the organs of the municipality. The City of Skopje is a particular local self-government unit where citizens fulfil their common needs and interests arising from the character of the City of Skopje as the capital of North Macedonia.

SIZE OF LOCAL GOVT UNITS The biggest municipality in the Republic of Macedonia by population is Kumanovo, with 105, 484 inhabitants. • Vevcani, with 2, 433 inhabitants is the smallest municipality in terms of population • Prilep is the biggest municipality by territory, 1, 198 square kilometres. • The smallest municipality by territory is Vevcani, 23 square kilometres. • Out of the municipalities in the city of Skopje, the biggest municipality by population is Gazi Baba, with 72, 617 inhabitants, whereas the smallest one is Suto Orizari, 20, 800 inhabitants. • The biggest municipality in Skopje by territory is Saraj, 229 square kilometres, the smallest being Cair, 3. 5 square kilometres.

POPULATION SIZE IN LOCAL GOVT UNITS Out of 81 municipalities: • there are 13 with less than 5, 000 inhabitants • 16 municipalities, 5, 000 - 10, 000 inhabitants; • 21 municipalities, 10, 000 - 20, 000 inhabitants; • 17 municipalities, 20, 000 - 50, 0000 inhabitants; • 13 municipalities, 50, 000 - 100, 000 inhabitants; • Only one municipality, Kumanovo, has over 100, 000 inhabitants. • there is a total of 1, 767 populated areas. • Bitola is the biggest municipality by the number of populated areas, a total of 66.

USE OF OFFICIAL LANGUAGES • In 32 municipalities, beside the Macedonian, another official language and alphabet in use is the one of the ethnic community represented by over 20% of the population. • In 28 of these municipalities, both Macedonian and Albanian are official languages, • in 4 municipalities, Macedonian and Turkish, • in 1 municipality, Macedonian and Serbian, and • in one, Macedonian and Roma languages. In 19 of these 32 municipalities, the representatives of the nonmajority communities at central level, are represented by over 50%. Those municipalities are: Aracinovo, Brvenica, Vrapciste, Gostivar, Debar, Zelino, Zajas, Bogovinje, Lipkovo, Oslomej, Plasnica, Struga, Studenicani, Tearce, Tetovo, Centar Zupa, Saraj, Cair and Suto Orizari.

COMPETENCES OF THE MUNICIPALITY The municipality has responsibility to perform tasks in the following areas: URBAN PLANNING • The Municipality has the following responsibilities: Adopts the urban plans, Issues building permits for construction facilities of local interest, Develops the area and the construction land, Performs inspection supervision. ENVIRONMENT PROTECTION The municipality takes measures for protection and prevention from water pollution, air pollution, land pollution, protection of nature, noise pollution protection. LOCAL ECONOMIC DEVELOPMENT The municipality plans the local economic development, determines priorities, creates local economic policy, supports the development of small and medium sized businesses as well as the entrepreneurship at local level, participates in the establishment and development of local network of institutions, promotes partnership. COMMUNAL ACTIVITIES: Supply of drinking water, Maintenance of public hygiene, Urban Planning, Environment Protection, Local Economic Development, Culture, Sport and Recreation, Social Protection and Child Care, Education, Health Care, etc.

KEY AUTHORITIES AT THE MUNICIPAL LEVEL The Mayor: • Represents and advocates for the municipality • Controls the legality of the council’s regulations • Initiates and proposes adoption of regulations • Proposes the annual budget and the annual account of the municipal budget • Executes the municipal budget • Selects managers of the public services established by the municipality, based on public announcement • Makes decisions on administrative issues, on rights, obligations and interests of legal and physical entities, in compliance with law • Manages the municipal administration • Provides for appropriate and lawful utilization, maintenance and protection of the municipal property.

KEY AUTHORITIES AT THE MUNICIPAL LEVEL – THE MUNICIPAL COUNCIL THE COUNCIL • Adopts the statute of the municipality and other regulations • Adopts the budget and the annual account • Determines the amount of own funding sources, according to law • Establishes public services and supervises their performance • Appoints members of managing boards of the public services • Adopts programs on the activities of the public services • Adopts reports on budget execution and the municipal annual account • Adopts reports and final accounts of the public services • Decides upon the manner of conducting financial control over the municipal budget, according to law • Reviews and adopts the annual report on public safety, submitted to the Minister of Interior and the Ombudsman.

FINANCIAL SOURCES OF THE MUNICIPALITY Municipalities in North Macedonia are financed from: • Own revenues; • Revenues from Personal Income Tax; • Grants from the Budget of the Republic of North Macedonia and the budgets of the Funds.

INFLUENCE OF EU ACCESSION NEGOTIATIONS ON LOCAL GOVERNMENT IN NORTH • MACEDONIA North Macedonia had expressed interest in becoming part of the EU ever since the early 1990 s which was later formally recognized with the signing of the Stabilization and Association Agreement (SAA) in 2001 due to the country’s status as a regional front-runner, followed by the granting of the candidate status in 2005. • Since then, the country has undergone a tedious reform process, which had been favorably assessed by the EU, with the notable exception of the prolonged period during which the country underwent a political crisis.

• More recently, the Government of the Republic of North Macedonia adopted the "Plan 3 -6 -9", which initiated substantial and comprehensive reforms in key areas such as elections, the rule of law, the media, civil society and the Assembly. The Government has also began implementing proactive diplomacy, succeeding in thoroughly and expeditiously strengthening its relations with all neighboring countries, as well as intensifying our constructive participation in regional initiatives and overall cooperation in the region.

• The government has begun developing a sustainable public administration reform strategy, with the aim of ensuring full departition and professionalisation of the administration, as well as creating a quality and service oriented administration that will function and operate in improved conditions. • More recently, the Ministry of Local Self Government of the Republic of North Macedonia has issued an action plan named Implementation of the Sustainable Local Development and Decentralization Program 2015 - 2020, for the period 2018 – 2020. In determining the scope of the Action Plan, the vision of the European Union for the new development role of local authorities was taken into account.

• The action plan has been prepared in accordance with the methodology that provided for the implementation of transparent and a participatory process, involving all relevant institutions and stakeholders, important for the development of local self-government and decentralization in the Republic of North Macedonia.

LOCAL SELF GOVERNMENT SYSTEM IN SERBIA • The Local Self-Government (LSG) system is Serbia is guaranteed by the Constitution and regulated by the Law on LSG, the Law on LSG finance, the Law on Territorial Organization, as well as by several other laws that regulate specific issues such as local elections, communal police, communal affairs, etc. • Although the LSG system has been advanced since democratic changes in 2000, there is still room for improvement. Among the biggest challenges of the LSG system in Serbia is the lack of a decentralization strategy that should provide a systematic approach in solving overlaps in vertical division of power between different tiers of government.

• Shifting competencies to LSGs, which will happen during the EU approximation process might create a burden at the local level. At this moment, LSGs in Serbia do not have capacity to implement such a huge number of tasks and duties that will be transferred to them within this process. • Therefore, besides issues related to decentralization, the key issues related to LSGs will be strengthening their role in the process of EU integration of the Republic of Serbia.

INFLUENCE OF EU ACCESSION NEGOTIATIONS ON LOCAL GOVERNMENT IN SERBIA • In comparison with the countries joining the EU during mid-00, the requirements for Serbia are much stricter. This means for example that the regulations need to be implemented before membership could be accepted. • EU accession is probably the largest government transforming process that can happen in a country. During the negotiation process, a candidate country has to harmonise with Acquis Communautaire that is comprised of more than 37, 000 legal acts, 13, 000 court verdicts and 52, 000 international standards.

• According to figures provided by the Standing Conference of Towns and Municipalities (SCTM), about 70% of all EU Acquis will be implemented at the local level or regional level either directly or through national legislation. The figure shows that the EU accession process will have a significant effect on LSG operations and their functionality • The SCTM has been recognized by the Government of Serbia to be an important actor in the process of EU negotiations. SCTM has been included in working groups for negotiation of chapters 19, 22 and 27, while 21 out of 35 chapters are important for LSGs. Importance of including SCTM in the EU negotiation process has been recognised by LSG authorities as well.

• Relevance in supporting SCTM and LSGs in Serbia on issues related to EU integrations is strong. Therefore, one of the most important roles of SCTM is to provide support to local selfgovernment units in the process of their preparing for the accession of Serbia to EU and the period following the accession. • More specifically, these is a urgent need to strengthen the capacity of local self-governments to assume obligations under EU acquis as well as building and strengthening the capacity of local authorities in Serbia to effectively use EU funds (under IPA II).

According to external experts and representatives from the central government, there is still a rather low knowledge level about the needs and challenges for the Local Governments in this process, i. e. many of key stakeholders understand that the accession process will be challenging for the local level but very few decision makers have an overview and knowledge of what will be the actual and concrete consequences.

FURTHER READING • Yugoslavia : a country study – Federal Research Division Library of Congress http: //cdn. loc. gov/master/frdcstdy/yu/yugoslaviacountr 00 cur t_0/yugoslaviacountr 00 curt_0. pdf • Local Government in Yugoslavia – Zeljko Sevic https: //www. academia. edu/275396/Local_Government_In_Yug oslavia • Reorganisation of Local Government in Yugoslavia – Nikola Stejpanovic https: //journals. sagepub. com/doi/abs/10. 1177/0020852356022 00404

• Final report: In depth review of support to Local Governments in Serbia in the EU integration process – Joakim Anger, Dragisa Mijacic https: //www. sida. se/contentassets/6965 ae 8181 ea 4792 bc 5 f 39 d 6 bc 695 e 2 a/in-depth-review-of-support-to-local-governments-inserbia-in-the-eu-integration-process---final-report_3875. pdf • Yugoslavia (former) Local Government and the Communes https: //photius. com/countries/yugoslavia_former/government/y ugoslavia_former_government_local_government_and~2713. h tml • Serbia report 2019 – European Commission https: //ec. europa. eu/neighbourhoodenlargement/sites/near/files/20190529 -serbia-report. pdf