USAID’s Business Enabling Project Quarterly Report: First Quarter 2014

The project aims to improve the competitiveness of the Serbian economy and its private sector businesses by providing technical assistance, training, and other support to improve the business enabling environment, maintain macroeconomic stability, and further develop financial markets. The project consists of three major components: Component 1, Business Regulation and Economic Governance, streamlines laws, regulations, and institutions; improves regulators' capacity to implement laws; and improves analysis and public-private dialogue. Component 2, Macroeconomic Policy and Public Financial Management, helps the Government implement new budget and fiscal responsibility laws, improve budgeting, increase public disclosure and transparency, strengthen public debt management, and improve economic analysis and forecasting. Component 3, Financial Market Development, improves regulatory frameworks for non-bank institutions, develops capacity to strengthen and expand capital markets, and improves conditions for debt market development. During the first quarter of 2014, BEP and the Ministry of Finance (MoF) implemented program budgeting, which involves developing a program budget structure that aligns with the GoS's key competencies and objectives. The project held 32 workshops with 27 budget beneficiaries, including 15 ministries and 12 small budget beneficiaries, to help them develop initial program structures and establish programs, project activities, and projects. BEP also continued to increase the MoF Budget Department's capacity to implement program budget reform by providing training on project management and supporting the program budget implementation process. BEP and the Ministry of Justice and State Administration (MoJSA) improved the draft Law on Inspection Oversight and continued consultations with the Drafting Group. The draft law should be finished by April and ready for public consultations in May. BEP also analyzed existing IT resources throughout various inspections and coordinated relevant stakeholders in designing a comprehensive and compatible e-inspections system. Additionally, BEP and the MoJSA began planning for the implementation of the new law, including an IT system to facilitate e-inspections, establishment and operation of an inspection coordinating body, alignment of sector inspection legislation with the Law on Inspection Oversight, and training for inspectors to apply the new concepts in the legislation. BEP and the National Bank of Serbia (NBS) continued working together to develop a conceptual framework for the establishment of a central national database containing information necessary for sound collateral valuation, detailed analysis of the real estate market, and calculation of the real estate value index for Serbia. The project also continued to work with the GoS institutions under joint work plans and action plans, including the Ministry of Agriculture, Forestry and Water Management, Ministry of Construction and Urbanism, Ministry of Finance, Ministry of Economy, Ministry of Foreign and Internal Trade and Telecommunications, Ministry of Labor, Employment and Social Policy, Ministry of Justice and Public Administration, Public Debt Administration, Office for Regulatory Reform and Regulatory Impact Assessment, Securities Commission, and Fiscal Council.