Rural Development Project

Transkrypt

Final Evaluation Study
of the
Final Evaluation Study
of the
Edt. Tomasz Majewski
Warsaw, May 2005
AUTHOR:
Consortium: DORADCA Consultants Ltd. Sp. z o.o., Instytut Spraw Publicznych, PBS Sp. z o.o.,
Proeko Ltd.
FIRST IMPRESSION, WARSAW 2005
© Copyright by Foundation of Assistance Programmes for Agriculture
Publication financed from the resources of the Rural Development Project
All rights reserved; no part of this publication may be reproduced or transmitted in any form without the
prior permission of the Foundation of Assistance Programmes for Agriculture.
PUBLISHER
Foundation of Assistance Programmes for Agriculture
Rural Development Project Co-ordination Unit
00-930 Warsaw, ul. Wspólna 30
Poland
tel. (+48....22) 623-19-01, 623-15-15, fax: 628-93-87
e-mail: [email protected], http://www.fapa.org.pl
PRINTER
Drukarnia cyfrowa DjaF, Kraków, ul. Misiołka 5, tel. (12) 294 45 27
Free of charge publication
Final Evaluation Study of the Rural Development Project
Final Report
Contents
I
SUMMARY
11
1 Report Summary
12
1.1 Introduction
12
1.2 General Evaluation of RDP
12
1.3 Component A
13
1.4 Sub-Component B1
14
16
18
1.7 Component C
20
1.8 Evaluation of the Effect of External Financing from RDP on Investments Performed by
Local Self-Governments
21
1.9 Analysis of the social and economic effects
23
1.10 Evaluation of Institutional, Organisational and Management Quality Related Solutions
of the Project
24
2 SWOT Analysis
II
III
IV
27
INTRODUCTION
29
1 Project Description
30
2 Context of Project Implementation
30
3 Objective of the Final Evaluation Study of the Project
31
METHODOLOGY
33
1 Research Model
34
2 Research Work and Data Collecting
2.1 Secondary Sources
2.2 Primary Sources
38
38
38
3 Analysis of Data
57
OUTCOMES
1 Component A
1.1 Top-down analysis
1.2 Bottom-up Analysis
1.3 Summary
61
63
64
82
89
2 Sub-Component B1
99
2.1 Top-down Analysis
100
123
Annex 1 Supplementary Tables and Figures
146
Annex 2 Weaknesses and Threats Related to the Human Potential Activation according
to SWOT Analysis based on Regional Development Strategies for the Years 20002004 (for Voivodships Participating in B1)
162
Annex 3 Description of Beneficiaries in a Breakdown by Services
165
3 Sub-Component B2
3.1 Top-down Analysis – Problems of Education in Rural Areas vs. Objectives and
Outcomes of Sub-Component B2
Consortium: DORADCA Consultants Ltd. Sp. z o.o., Instytut Spraw Publicznych, PBS Sp. z o.o., Proeko Ltd.
167
168
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Final Report
3.2 Bottom-up Analysis – Project Effects Evaluation
3.3 Summary
187
200
4 Sub-Component B3
4.3 Summary
209
210
238
248
5 Component C
5.1 Top-Down Analysis
5.2 Bottom – up analysis
5.3 Summary
5.4 Intergmina associations
259
260
292
315
326
6 Evaluation of the impact of external financing from the Rural Development Project
resources on the investments realized by local governments
329
6.1 Identification of the subject of evaluation
330
6.2 Evaluation of the impact of external financing from the RDP resources on realization of
investments
331
6.3 Summary and conclusions
348
7 Analysis of the social and economic effects
7.1 Analysis of the financial benefits for the state budget from the new jobs created
7.2 Direct investigation analysis of the costs and the social and economic benefits
7.3 Comparative (benchmarking) analysis of project effectiveness
7.4 Statistical analysis
351
352
356
364
372
378
8 Evaluation of the institutional and organizational solutions and the quality of Project
management
381
8.1 Introduction
382
8.2 The conception of Project management
383
8.3 Institutions and functions of the Rural Development Project in the light of program
documents
386
8.4 The Poland Flood Emergency Project as a reference to RDP
389
8.5 Selected problems of the Rural Development Project management
392
8.6 Subcontractor selection procedures
413
8.7 Information systems in RDP
428
8.8 Opinions of the Project parties on its organization
432
8.9 Evaluation of the usefulness of RDP solutions for future projects
447
8.10 Risk management in RDP
461
8.11 Organization of RDP in the light of the NIK control
465
8.12 Summary
471
9 General appraisal of the RDP
477
9.1 Appraised Project
478
9.2 Presentation of Project Objectives
478
9.3 Analysis of the social and economic situation in Poland before launching the Project
479
9.4 Synthetic appraisal of Project objectives and goals
481
9.5 Assessment to what degree the Project fulfilled its objectives
486
V
6
FIGURES AND TABLES INDEXES
491
Final Report
Acronyms and institutions names used in the Report (in alphabetic order):
General remark: for the purpose of the English version of the present report, the subject
of evaluation is referred to as the Rural Development PROJECT, according to the
terminology used by the World Bank.
•
ARMA – Agency for Reconstruction and Modernisation of Agriculture
•
ARMA RD – Agency for Reconstruction and Modernisation of Agriculture Regional
Division
•
BDR – Regional Data Bank (Baza danych Regionalnych)
•
BGK – National Economy Bank (Bank Gospodarstwa Krajowego)
•
City and Gmina Administration Office (Urząd Miasta i Gminy)
•
CUI – Canadian Urban Institute
•
EPRD – Office for Economic Policy and Regional Development (Biuro Polityki
Gospodarczej i Rozwoju Regionalnego)
•
EU – European Union
•
FAPA – Foundation of Assistance Programmes for Agriculture (Fundacja Programów
Pomocy dla Rolnictwa)
•
FDPA – Foundation for the Development of Polish Agriculture (Fundacja na Rzecz
Rozwoju Polskiego Rolnictwa)
•
FEP – Flood Emergency Project (Program Usuwania Skutków Powodzi)
•
FDL – Local Donations Fund
•
FLDD – Foundation for Local Democracy Development (Fundacja Rozwoju
Demokracji Lokalnej)
•
RDF – Rural Development Foundation (Fundacja Wspomagania Wsi)
•
Gmina Administration Office (Urząd Gminy, UG) – the basic level of self-government
•
Main Statistical Office (Główny Urząd Statystyczny, GUS)
•
Institute for Market Economy Studies (Instytut Badań nad Gospodarką Rynkową,
IBnGR )
•
IDP – Institutional Development Program
•
IOPRD – Integrated Operational Plan for Regional Development (Zintegrowany
Program Operacyjny Rozwoju Regionalnego)
•
MARD – Ministry of Agriculture and Rural Development
•
MIAPA – Ministry of Interior and Public Administration
7
Final Report
8
•
MIS – Management Information System
•
Marszalek Office (Urząd Marszałkowski, MO) – the voivodship self-government is a
regional self-governing community and the largest unit of the territorial division of the
state. Then voivodship Marszlek is the chairman of the voivodship board. The
Marszalek Office manages the daily affairs of the voivodship, represents it and
provides assistance to the Voivodship Board.
•
Middle school - (Polish: gimnazjum) the level of education between the primary and
the scondary school, often referred to as "gymnasium". The term "middle school" has
been introduced to avoid confusion with the English word "gymnasium", or "gym"
meaning the school sports hall.
•
MoEL – Ministry of Economy and Labour (formerly: MoLSP – Ministry of Labour and
Social Policy, MoELSP – Ministry of Economy, Labour and Social Policy – these
acronyms are interchangeable)
•
MoF – Ministry of Finance
•
MoNES – Ministry of National Education and Sports
•
Małopolska Szkoła Administracji Publicznej, MSPA (Małopolska School of Public
Administration)
•
Superior Chamber of Inspection (Najwyższa Izba Kontroli, NIK)
•
NSC – National Steering Committee
•
NSC – National Steering Committee
•
PCU – Project Co-ordination Unit
•
PLO – Powiat (District) Labour Office (Powiatowy Urząd Pracy, PUW)
•
PNBA – Polish Network if Business Advisers (Polska Sieć Doradców Biznesu)
•
Powiat Starosta Office (Urząd Starostwa Powiatowego) – powiat is a local selfgoverning community and covers a whole area of adjacent gmina, but does not
supervise their activities. Powiat is headed by Starosta (Chairman of the Board).
•
PT – Project Team
•
RDP – Rural Development Project
•
RP – Redeployment Program
•
SOP – Sector-related Operational Program (Sektorowy Program Operacyjny)
•
TSU – Territorial Self-government Unit
•
Voivodship Administration Office (Urząd Wojewódzki, UW) – Central Government
regional representation
•
VLO – Voivodship (Regional) Labour Office (Wojewódzki Urząd Pracy, WUP)
Final Report
•
VPIU – Voivodship Project Implementation Unit
•
WB – World Bank
9
Final Report
I Summary
11
Final Report
1
Report Summary
1.1 Introduction
RDP was accepted for implementation with the following overall objectives in view:
•
increased non-farm employment in rural areas,
•
support for the process of strengthening local and regional self-governments and
support for regional development,
•
support for the process of building the institutional capacity necessary to obtain EU
pre-accession and structural funds.
The plan was to implement a wide range of activities. With regard to their variety, they
were divided into three groups, called Project Components. The following Components
were designed: A – Micro-credit, B – Human Capital Development, C – Rural
Infrastructure. Additionally, three Sub-Components were distinguished within the frames
of Component B: B1 – Labour Redeployment, B2 – Education, B3 – Institution Capacity
Building in Local and Regional Administration.
1.2 General Evaluation of RDP
RDP was a very complex development undertaking financed from public funds and
implemented in a difficult social and economic environment. It preceded Poland’s
accession to the European Union, therefore it had an important role to play in preparation
of infrastructural, institutional, social and economic bases for integration of our country
with EU.
The selection of objectives and activities accepted for RDP was correct and responded to
the most important needs in the field of rural areas development in Poland. The Project
was implemented in very difficult macro-economic conditions: slowed pace of GNP
growth and rapidly growing unemployment the rate of which exceeded 18% in this period.
These circumstances made it impossible to achieve all RDP objectives, especially to
increase the non-farm employment in rural areas1.
RDP was the first such an extensive program supporting the development of rural areas
in Poland in the period of post-communist transformation. Programs implemented so far
had been of a sectoral nature and most of them had been oriented towards agriculture
problems first of all. The main focus of RDP was on the most important needs related to
development of the given territory (rural areas in particular territorial units). In this respect,
this was a pioneering project and it paved the way for similar EU-financed programs.
Livening up and activating self-government authorities and business entities and subjects
using particular activities encompassed by RDP Components was an important effect of
the Project. The public and financial mobilisation stimulated by the Project is of a positive
and long-term significance for rural areas development.
1
We are stressing that the objective related to creating off-farm jobs was planned to be achieved
within some 5 years after completion of the investments, i.e. for the years 2006-2009, as the
investments were effected in the years 2001-2004.
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Final Report
Should one apply the “school” grading (1-5) to the overall evaluation of RDP, the final
mark is above 4. According to the terminology used by the World Bank, this mark is
between “satisfactory” and “highly satisfactory”. The evaluation team did not observe any
significant failure in Project implementation or variances with the assumptions and
objectives. The Project enjoyed a good reputation in local environments proved by our
questionnaire surveys and most of the procedures were found “friendly”. The respondents
were also of a high opinion about competence and approach to the beneficiaries shown
by persons responsible for implementation of particular elements of the Project. The
funds provided by the Loan Provider (World Bank) were used in 100% nearly and the
efficiency of expenditure can be considered high. Quantitative indicators were exceeded
in most Components of the Project and this fact shows that costs of outputs produced as
a result of the Project were lower than assumed. Thus, the loan contract has been
executed entirely.
1.3 Component A
1.3.1
Key conclusions
•
Before the year 2000 the situation of regions covered by Component A – especially in
Warmińsko-Mazurskie and Podkarpackie voivodhips – had been worse than in other
voivodships. The unemployment-related problems identified in the selected rural
areas had been of a deepening and long-lasting nature. In our opinion, the
intervention in the form of Component A was justifiable.
•
The Component objective related to promotion of micro-businesses enabling the
creation of off-farm jobs identified voivodhips’ problems and needs correctly.
Component activities were selected well, especially that the approach to individuals
who had already been running their own business differed from the approach to those
who were just beginning. It seems valuable that financial instruments were
supplemented with training and advisory assistance. When filling the questionnaires,
the respondents gave very high marks to the utility of financing in the form of microcredits and grants combined with advisory assistance (74% of very good grades).
The relevance of Component activities is assessed as satisfactory.
•
The impact of the Component at the regional and voivodship level was limited (the
attendance was below 1% of potential beneficiaries) due to the fact that the funds
were relatively modest. The structure of beneficiaries who participated in Component
A should be assessed positively. The major group of beneficiaries consisted of
persons beginning their own business activity (65%) and persons based in rural
areas (64%). Women constituted a significant part of Component participants (43%).
On the other hand, the attempt to reach one of the potential groups of beneficiaries –
school graduates – was unsuccessful. Not many young people participated in the
Component in general. The attendance is assessed as satisfactory.
•
Quantitative outcomes of the Component were beyond the expected performance,
despite the fact that the time of implementation had been reduced in practice. 2941
new job placements were created as a result of Component activities. 4655 microcredits and 2944 grants were provided to the beneficiaries. The effectiveness of the
Component is assessed as highly satisfactory.
•
Project targeting is assessed as satisfactory. The Component objective was
consistent with the Government’s efforts to reduce the unemployment in rural areas
and to diversify the rural population’s sources of income through development of non-
13
Final Report
farm employment. Component A fit in the State policy in the field of rural areas
manifested in – inter alia – the Cohesive Structural Policy for the Development of
Rural Areas, the Treaty for the Agriculture and Rural Areas and the Mid-Term
Strategy for Agriculture and Rural Areas Development.
•
The comparison of benefits generated by the Component with its costs is highly
satisfactory – we are estimating the period of this investment return at a year and a
half. We are assessing the cost of creating one job placement as relatively low. To
conclude it, the efficiency of the Component is assessed as highly satisfactory.
1.3.2
Advantages
•
The mechanism of granting credits turned out to be very effective, as the assumed
quantitative outcomes have been exceeded despite the fact that the period of
Component implementation was much shorter than planned.
•
It seems that the fact of selecting good loan advisers who often approached potential
beneficiaries in a very active manner was one of the reasons of high effectiveness
here. It is worth mentioning that the beneficiaries expressed very positive opinions
about the work of loan advisers from foundations implementing Component A (63%
of very good and 28% of good marks).
1.3.3
Disadvantages
•
In the first two years there were many problems with launching the process of microcredits related to selection of service providers. After the process was launched,
financial means were disbursed to beneficiaries with serious delays. In practice,
Component A starting period took more than two years. In our opinion, the most
important problems were eliminated no sooner than in the second half of Component
implementation and effective mechanisms of micro-credits distribution were set up.
•
Little use was made of the potential synergy with Sub-Component B1. 433 persons
participating in both Components – A and B1 – have been identified.
1.4.1
14
Key conclusions
•
The analysis of objective secondary data has shown that before the year 2000 (i.e.
before Sub-Component B1 was launched), the situation of regions to be covered by it
was worse than in the remaining voivodships. What is more, the labour-market
related problems were of a long-lasting nature and market mechanisms did not lead
to any solution. Thus, the intervention in the form of a program like Sub-Component
B1, oriented towards labour redeployment has been assessed as justifiable.
•
The comparison of Sub-Component B1 with problems identified in regional strategies
showed a far-reaching convergence indicating that Sub-Component B1 identified
these voivodships’ real problems and responded to them correctly. This opinion was
also confirmed by a significant part of the respondents, although there was a group of
them – aged people with university degrees and low income – who indicated program
irrelevance.
Final Report
•
The analysis of situation in the voivodships covered by Sub-Component B1 in
comparison with the remaining regions after project implementation showed that the
situation of regions covered by Sub-Component B1 relatively improved in some
aspects. One should stress however that the respondents’ general opinion seems to
indicate that the scale of intervention was too small when compared with the needs,
to be able to speak of Sub-Component B1 ability to solve the problems, but this was
a step in the right direction.
•
As far as the scale of participation is concerned, it has been estimated that about
15% of persons eligible for the project participated in it on the average. The
respondents, beside reporting the fact that there were not enough places to
accommodate their participation, indicated also other problems that set limits to their
participation, such as insufficient information, disbelief that the program could change
their situation on the labour market, program inadequacy to their needs and costs of
travelling.
•
The effectiveness of Sub-Component B1 planned outputs achievement has been
evaluated on the basis of objective indicators and based on respondents’ opinions as
well. Although the effectiveness varied from service to service, it exceeded 80% of
the assumed performance on the average. Good effectiveness of the project is also
confirmed by outcomes of interviews and questionnaire surveys.
•
Although the immediate general outcome of the project (i.e. decrease of
unemployment in the selected voivodships) was not evident (due to the scale of the
Redeployment Program), respondents’ opinions indicated an important additional
impact of Sub-Component B1 in the form of increased self-confidence and stimulated
activeness of those persons experiencing problems with employment who had not
been participating in any similar programs in their majority.
•
It is hard to identify the sustainability, as not much enough time has passed since the
project closing. The respondents’ opinions concerning the sustainability of impact
varied. The beneficiaries themselves believed in it more than the officers who were
responsible for the project and who had a more comprehensive knowledge of the
labour market.
•
As far as the cost/benefit proportion is concerned, it should be stressed that some of
the costs might have been distributed among the beneficiaries who declared in their
questionnaires that they could pay a part of the costs of services they were provided
(this would be possible with the adequately defined criteria of participation). On the
other hand, one should emphasise those unintended – mostly positive.
1.4.2
Advantages
•
The very good construction and planning of the Redeployment Program should be
considered as its greatest strength – particularly, the idea to integrate the Program
with other elements of policies of a multi-sectoral nature, i.e. with loans, infrastructure
development, education. No approach like this – i.e. orientation towards synergy – to
the complex matter of the rural labour market problems had existed in previous
programs of this type. This approach enforced co-operation between various
ministries and allowed for positive external impact.
•
Moreover, introduction of the element of survey aimed at identification of labour
markets’ needs and capacity before RP implementation was an advantage.
15
Final Report
1.4.3
Disadvantages
•
Lack of co-ordination with Component A (micro-loans) which started with a serious
delay and this fact affected business assistance centres and business incubators
activity negatively. The RDP construction allowed for potential synergy between
Component A and Sub-Component B1. It had been assumed that persons trained
under Sub-Component B1 would have wished to launch their own businesses, using
micro-loans and grants. As a result of the circumstances referred to, the effects of
synergy were much weaker than those potentially possible.
•
Serious delays in disbursement of funds for service providers resulted in a reduced
participation of smaller companies having no sufficient financial potential of their own.
•
Although Sub-Component B1 orientation towards disadvantaged inhabitants of rural
areas achieved by the means of skilful formulation of the eligibility criteria was one of
the greatest advantages of the project (when compared with other programs, such as
PHARE), the reality of project implementation did not fully follow the guidelines. This
means that the disadvantaged persons, owners of very small farms and school
graduates from rural areas constituted a small percentage of Sub-Component B1
beneficiaries.
1.5.1
16
Key conclusions
•
The decision to implement Sub-Component B2 under RDP should be considered as
justifiable. The fact of planning educational Sub-Component B2 within RDP had been
deeply justified with education-related needs of rural areas. Gminas’ low budgets do
not enable them to finance renovation works and supply of didactic aids needed in
schools A vast majority of gminas would not make so many necessary refurbishment
and modernisation works, would not buy so many didactic aids and/or software
without the financial support. Fewer teachers would participate in training – due to
financial reasons and limited access to centres running training courses for teachers.
•
The objectives and the tasks of Sub-Component B2 should be considered as relevant
to the needs and targeting the States’ education policy well. The objectives and the
activities of the Project fit in the program of enhancing the quality of education in rural
areas and the guidelines of the educational policy of the State comprehensively – it
covered such aspects as implementation of the education management reform,
curricula reform, professional promotion of teachers and school network consolidation
(including organisation of pupils transportation).
•
The expected outcomes (quantitative indicators) were clearly exceeded in most
cases. This applies in particular to rehabilitation activities. On the other hand, the
achieved indicators were lower than planned in such tasks as didactic training for
teachers, IT training and Scholaris Internet portal. This resulted mainly from the fact
that rehabilitation-related needs prevailed and the procedures were so protracted that
teachers’ needs changed in the meantime. The very idea to create an educational
portal should be assessed high – it is becoming increasingly popular. Considering the
outcomes that have been achieved and their long-term impact, the activities of the
Sub-Component should be considered useful.
Final Report
•
The level of attendance can be considered satisfactory, although the needs of
potential beneficiaries are much greater in the field of rehabilitation and investment
activities. The participation was regulated by the eligibility criteria, by gminas’
financial potential (own contribution) and by the Sub-Component funds. The eligibility
criteria made it difficult for small schools to apply, although these needed support
very much. The demand for financial support varied from task to task – it was
satisfied almost entirely in case of didactic training and IT training, as it turned out to
be lower than expected. Serious reductions of applications took place in the group of
rehabilitation tasks only, although the demand was immense here.
•
The implementation of Sub-Component B2 tasks gives a chance for a long-term
impact. Refurbished and equipped buildings and premises should serve students for
many years. The idea to include a new task – equipping pre-school education
classrooms – should be appreciated, although there was less interest in it than in
case of previous tasks. But well equipped pre-school education classrooms for
youngest inhabitants of small farming gminas should provide a better educational
start and further school career to children in rural areas, where very few children go
the kindergartens. Training and supply of didactic materials and educational software
should translate into increased level of education in rural areas. The sustainability of
investment impact should be estimated – depending on the scope of works – at a few
years or at very long years. The sustainability of the effects of training and purchasing
should be strengthened by the means of further activities, continuous refreshing of
the didactic base and continuous development of teachers’ competence. The one-off
support provided within a scope which was limited in terms of quantities and territory
can not ensure any sustainable long-term impact.
•
The rules of economy were observed. Refurbishing and investment tasks were
performed at the cost below the plan and as a result of this schools from more distant
places in the ranking could be included in the Project. Costs of training and prices of
didactic materials and software did not differ from those quoted on the market. It
seems that Sub-Component activities were organised in a manner enabling as many
beneficiaries as possible to be included. Besides, gminas made efforts to minimise
their own Project-relate costs. The assumed cost level was exceeded in such areas,
where better outcomes were achieved to the advantage of beneficiaries.
1.5.2
Advantages
•
Inclusion of education related tasks in the Project.
•
Comprehensive approach to education-related needs.
•
Simple application procedures.
•
Very good background provided to beneficiaries (though training) in the field of
applying for funds.
•
Allocation of additional funds for rehabilitation tasks in the further phase of the
Project.
•
Giving up the rule of reimbursement.
•
High quality of refurbishing works.
17
Final Report
•
High quality of didactic training and cascade effect.
1.5.3
Disadvantages
•
Small schools eliminated in practice (although not all of them will be liquidated) in
consequence of the number of students in school” criterion
•
Too long time of waiting for financial support (particularly in case of refurbishment
and investment works).
•
Too long time of waiting for training.
•
Too short time for refurbishing works at the II stage, after re-location of funds.
•
Central bidding procedure for companies offering didactic materials and software.
1.6.1
18
Key conclusions
•
RDP was necessary in the spectrum of Sub-Component B3 in the period when it was
being implemented, as it prepared the Polish self-government for joining EU
structures. The Sub-Component objectives complied with the State policy objectives
outlined in such strategic documents as the National Strategy for Regional
Development, the National Strategy for Employment Growth and Human Resources
Development and the Cohesive Structural Policy for Agriculture and Rural Areas
Development. Thus, one may state that the relevance of Sub-Component B3 was
high, as it identified the real problems and needs of the target group correctly and
responded to them.
•
The effectiveness of Sub-Component B3 in general should be considered very high
at the level of IDP implementation in gminas. Nevertheless, the efforts aimed at
implementation of tools proposed within B3 to transform the model of TSU
management considerably were not entirely successful. The bureaucratic model of
management still remains very common. The strengthening of transformations
through the legislation process should increase of effectiveness of IDP significantly.
•
On the other hand, through the implementation of the All-Poland Training Program,
Sub-Component B3 contributed to the Polish self-governments’ preparedness for
absorption of pre-accession and structural funds. The number of applications
submitted to SAPARD and IOPRD, as well as the utility of training provided under the
Program declared by the participants give evidence to this conclusion.
•
Similarly as in case of effectiveness, the evaluation of Sub-Component B3 utility can
not be clear-cut. The utility of All-Poland Training Program deserves a positive
assessment definitely – in this case, the participants themselves stressed that they
were able to use the acquired knowledge and skills in their work on project
applications. The utility of tools approved by gminas during IDP implementation
should be assessed highly too. On the other hand, the fact that no activities are taken
up to continue dissemination of tools offered to TSU within the frames of IDP raises
some concerns. Although many beneficiaries declared that they did not implement
further innovations, as these were inadequate to their needs, one may presume that
the trend towards modern management will make the beneficiaries appreciate the
Final Report
solutions they were offered and the changes in the culture of management in the
nearest future. Nevertheless, these transformations – as any cultural transformation require time, as they involve changes of awareness and of the style of work. The fact
of using the corruption counteracting tools and participating in “Transparent Poland”
competition can be given as an example of this trend.
•
The sustainability of Sub-Component effects will also be high in case of the Training
Program, as it will be transferred to the achievements of projects implemented
directly or indirectly as a result of participation in training.
•
In case of IDP impact sustainability analysis, one should state that some of the
implemented tools have become routine procedures in TSU. Similarly as in case of
the Training Program outcomes, they will contribute effectively to TSU’s success in
obtaining pre-accession and structural funds. But in most cases, the activities did not
add to creation of new jobs or entrepreneurship development in gminas, or to any
improvement of services quality in gminas. Thus, the sustainability of the Program
impact will be connected with the effects of funds absorption, while no immediate
qualitative change if institution’s work can be expected. To make the effects of IDP
and of IDP dissemination sustainable, transformation in TSUs’ organisational culture
should be continued and more legislative support should be provided.
•
It is difficult to sum up the evaluation of Sub-Component B3 efficiency, as, due to the
high innovativeness of its activities for the self-government sector, no comparative
data are available. Should one assess the efficiency of solutions resulting from IDP,
the evaluation should be made on a long-term basis.
1.6.2
Advantages
•
Mass participation of TSUs in the Training Program and suitable time of its
implementation.
•
Making gminas more sensitive to corruption problems.
•
Increased efficiency of gminas in obtaining funds – pre-accession and structural first
of all.
•
Commencing the process of institutional transformations in the self-government
administration adapting them to functioning in EU – efforts made to transform the
TSUs’ organisational culture.
1.6.3
Disadvantages
•
The good practice database potential has not been used as it could have been.
•
MIAPA did not take up an active participation IDP dissemination activities after SubComponent B3 of RDP was closed.
•
Public administration’s lack of organisational capacity for unaided implementation of
the transformation program.
19
Final Report
1.7 Component C
1.7.1
20
Key conclusions
•
The analysis of the rural infrastructure development shows that before the year 2000
the main problems of rural areas in Poland included: a very low level of infrastructural
equipment (accepting EU rural areas and Poland’s urban areas as reference points),
huge disproportions in this field between regions and voivodships and on the other
hand – within their borders, and dissonances between development of particular
infrastructural systems in local arrangements. The confrontation of the scale of
demand for infrastructural investments with the limited financial potential of local selfgovernments justified the financial support for infrastructure under RDP. In our
opinion, the strategy of covering all 16 voivodships accepted for Component C was
justifiable, first of all due to the possibility of selecting the most efficient investment
projects in Poland for co-financing.
•
The comparison of Component C objectives with the problems identified in strategies
for rural areas development reveals a far reaching convergence which shows that
Component C identified problems of rural population correctly and responded to
them. The role and the significance of infrastructure in local development is proved by
the fact that representatives of local authorities, businessmen and inhabitants agree
that the lack of infrastructure is the main barrier to the social and economic
development of gmina. The utility of infrastructural developments made under the
Project was assessed as very high. This gives a basis for a positive evaluation of
relevance of objectives accepted for Component C to beneficiaries’ needs.
•
The analysis of situation in gminas covered by Component C shows that in case of
some activities (water supply and sewage collection systems), the increase in the
number of infrastructural devices in the group of Project gminas was higher than
effects achieved on a national scale in the years when RDP was implemented
(considering proportions of participation to the effect achieved). Moreover, the
difference in dynamics of changes in the increase of the number of infrastructural
devices between Project and non-Project gminas was very clear to the advantage of
the first group (in case of water supply terminals this was twice as high and in case of
sewage collection terminals – by 30% higher). The Component activities contributed
to a 10% reduction of the difference between the number of water supply terminals
and the number of sewage collection terminals on the national scale and a 30%
reduction in the group of gminas covered by RDP. Component C should be assessed
as very useful in terms of improvement of rural infrastructure in gminas participating
in RDP.
•
Taking the number of gminas applying for funds from RDP and the number of gminas
these funds were granted to as a basis, the participation in the Project should be
assessed as high. In practice, 30% of potential beneficiaries participated in
investment activities of the Component, while training activities were provided to all
beneficiaries.
•
In general, the outcomes planned for the whole Component C were achieved. The
outcomes varied in particular activities, but the situation when more was achieved
than planned was more frequent. Moreover, the beneficiaries gave very good marks
for effectiveness of the Component. A vast majority of them expressed an opinion
that the assumed objectives had been achieved.
Final Report
•
Immediate outcomes of Component C have been achieved, the infrastructural
equipment of rural areas has improved – this is confirmed by objective indicators and
by opinions expressed by representatives of various social groups as well.
Infrastructural investments contributed to improvement of the rural population’s living
standards (including health conditions) and of the conditions of running business
activities. The investments resulted in a reduction of some companies’ financial
burden, in equipment upgrading (this happened in every fifth of the companies
covered by the survey), in increased scale of production (16%), increased range of
activity (14%) and increased employment (13%). Due to the Component, 28% of the
companies covered by the survey survived the “hard times”. As a result of
investments the investment attractiveness of gminas has grown, this thesis being
confirmed by the increased interest in purchasing building and recreation plots. The
infrastructural investments did not contribute to the increase of new employment
opportunities to such a degree as had been expected. The Project assumptions
concerning the range of infrastructural investments’ effect on the living standards and
facilitation of running business activities turned out correct.
•
The analyses and studies of benefits resulting from the infrastructural investments
have shown that it is a very difficult task to covert them into monies. Nevertheless,
they enable one to state that the impact of these investments on economy and of
working and living conditions of rural population is positive. This also what the
beneficiaries feel.
1.7.2
Advantages
•
Very good co-operation of VPIUs with local self-governments. The project personnel
very competent and helpful in practice, at the stage of application and project
implementation. Genuine and skilful (immediate) help, openness to co-operation,
friendly approach to beneficiaries.
•
High utility of training provided within the frames of Component C, first of all in its
practical dimension and in terms of utility for projection of infrastructural investments.
•
The Component was definitely easier and more “friendly” than other programs being
implemented now (e.g. SAPARD), the “level of bureaucracy” lower than in other
programs.
1.7.3
Disadvantages
•
Too long time of waiting for money and too long period between the application
submission and its acceptance and approval for implementation.
•
Excessive reporting – the beneficiaries questioned also the need to submit the
required reports, especially the frequency and the requirement to report even when
nothing had changed.
1.8 Evaluation of the Effect of External Financing from RDP on
Investments Performed by Local Self-Governments
To sum up the results of investments performed by local self-governments, one may state
that:
•
The time limit planned for investments was observed.
21
Final Report
•
The costs incurred under Component C were lower than the costs envisaged at the
stage of applying. This results mainly from differences between the value calculated
before the bidding and the value of a contract signed with the contractor selected as
a result of the bidding procedure (investment overestimation) and also from the fact
that the general scale of investments was reduced, as beneficiaries withdrew from
some of investment tasks planned in their applications. The value of the contract
increased as a result of additional works, the necessity of which emerged during
investment realisation. The reduction of the scope of works can be considered
insignificant on the whole Project scale.
•
Much more funds were spent within the frames of Sub-Component B2 than it had
been planned in PAD before the investment was launched, as in the year 2003 the
Program was extended over all voivodships (while 7 had been planned) due to reallocation of funds from the Project reserve to this Component. Therefore, the
material status of the investment was higher than assumed initially, in proportion to
funds allocated for this purpose.
•
The protracted process of transferring funds to gminas’ accounts should be the
crucial element disturbing Project implementation in its initial period. Initially, the
period between acceptance of an application for funds and funds receipt by gmina
was as long as sic months in some cases. This might cause conflicts with work
contractors waiting for their payments. In some cases, gminas contracted commercial
loans to settle financial liabilities to contractors and this caused additional burden on
gmina budgets. Later on, this inconvenience was eliminated and the time of waiting
for money was reduced significantly. It was advantageous for the beneficiaries that
investments were financed in tranches, as gminas did not need to engage funds
amounting to the entire co-financing value. Such a high own contribution might have
been a serious difficulty and in some cases – even a barrier to taking up the
investment task.
•
The costs of facilities built under the Project remain similar to costs of building such
facilities all over Poland.
•
Unit cost indicators for building developments are similar to indicators achieved in
other assistance programs.
•
Due to the dispersed and local nature of particular undertakings and their relatively
small size, the reduction of unit outlays is not perceptible (the effect of scale).
Data analysed during the final evaluation of infrastructural investments performed under
the Rural Development Project enable us to formulate the following conclusions
concerning the basic determinants of Project implementation:
22
•
A vast majority of Project tasks are of a key significance for gminas’ functioning.
•
It should be stressed that gminas’ demand for support in financing investments is
authentic – most of these would not be realised without any external support.
•
Investment activities of the Project are complementary to other programs initiated to
increase the standards of living and running business activities in rural areas. These
activities complement one another within the frames of the primary objective:
development of rural areas.
Final Report
1.9 Analysis of the social and economic effects
The scale of State Budget’s benefits resulting from creation of 10265 job placements as a
result of RDP, calculated with the use of the methodology updated at the end of 2003 and
macroeconomic data, ranged from PLN 47.03 million to PLN 121.66 million, depending
on the salary received by the unemployed person taking up a job.
The benefit referred to above is only one of many profits. The comprehensive nature of
RDP involves a whole spectrum of economic effects. Not all relations can be grasped
now, when only few months have passed since Project completion. Direct research
enables one to state that economic effects of micro-credits, grants and some services
dedicated to the labour market appeared relatively soon. One will have to wait a little
longer for complete effects of infrastructural investments and for effects related to selfgovernments’ institutional capacity growth. The greatest time span between involvement
of funds and sustainable effects is needed in case of activities dedicated to education.
There is no doubt that RDP set up the foundations for a more rapid economic growth of
rural areas through:
•
preparing areas for investments,
•
improving the efficiency of administration
•
activating the unemployed,
•
developing a network of institutions supporting business.
Most probably, the growth will be strengthened by assistance funds and these have
become much more available to gminas participating in RDP. Even now, the living
standards of rural population from the areas covered by RDP have improved noticeably
and the first symptoms of increased investment attractiveness translation into concrete
activities of business entities can be observed. In effect, many unemployed have been
roused from apathy and marasm caused by the long years of unemployment. Even such
emergency activities as temporary employment supported many family budgets
invaluably. It is worth noting that the costs incurred by the beneficiaries and the Project
gminas as their own contribution were not high. As a rule, they were limited to
administration costs, cost of travelling and free time. One should make a reservation
however that the conclusions presented above, drawn up on the basis of direct research,
are of a qualitative nature and do not allow for evaluation of these effects’ scale.
When compared with other programs (with respect to particular Components, as no other
program corresponding with RDP has ever existed), RDP shows rather favourably, in
terms of both cost-efficiency and material productivity as well. What is more, comparison
with indicators achieved in open public bidding (based on the Bulletin of Public
Procurement), i.e. close to market indicators, has not shown any significant difference
either. Thus, one may draw a cautious conclusion (bearing in mind considerable
differences between programs being compared) that mechanisms of spending public
money were efficient in the Project and that no prodigality took place in terms of statistics
(which does not mean, that no isolated cases could be revealed).
An analysis of correlation between indicators of Project implementation intensity (the
outputs) achieved within the frames of Components A, B1 and C on the territory of
particular gminas and powiats and the most important outcomes of the Project, i.e.
increase of employment, income and wealth, gives results close to zero in most cases.
This leads one to a conclusion that the effect of RDP on the economy of territorial selfConsortium: DORADCA Consultants Ltd. Sp. z o.o., Instytut Spraw Publicznych, PBS Sp. z o.o., Proeko Ltd.
23
Final Report
government units was hardly noticeable until the year 2003. This is a statistical
conclusion, certainly, and it is limited to short-term effects. The scale of RDP is one of the
main reasons of such a weak translation of the Project into any noticeable macroeconomic effects. Concentration of funds in a single gmina or powiat was too low to
change their economic standing radically. But it is not out of the question that similar
analyses will show more appreciable results in time, when a multiplication of Project
effects occurs.
1.10 Evaluation of Institutional, Organisational and Management
Quality Related Solutions of the Project
A. Institutions implementing the Project rose to the primary challenge in the form
of effective implementation of activities envisaged for the Project.
The procedures, especially those related to financial flows – following significant
difficulties and delays in the initial period – were modified gradually through cooperation between institutions. The evaluators assess that in the second part of
the Project the procedures functioned in an effective and timely manner.
The Project was successful in showing representatives of various level of authorities
evidently good organisational practices, such as:
•
comprehensive and continuous monitoring of the Project,
•
subjecting Project decision-making institutions to control and verification both at the
stage of formation and on a current basis in the whole period of activity as well,
•
setting up mechanisms and incentives to make organisational adjustments (periodical
meetings, providing the support of external consultants).
Another success was attained in implementation of a project evaluation system based on
clear, pre-defined criteria. Many of the respondents regarded it as an anti-corruptive
solution, much better than application evaluation systems existing in EU programs now.
The long starting period of the Project described in the report of the Superior Chamber of
Inspection – should be considered a failure. The delays and negligence observed then
can be explained easily – although not justified – with the institutions’ need to implement
the new methods of work and to develop mutual compatibility. In consequence, the whole
Project stretched on considerably and the schedule of implementing particular
Components was not subordinated to Project objectives, but reflected RDP’s ability to
overcome organisational problems.
B. The World Bank proposed that adjusted procedures of the Flood Emergency
Project should be used in RDP. The Bank eliminated the significant weaknesses of
the Project, but an important defect which had occurred there remained.
The World Bank made a number of steps to eliminate weaknesses of the Flood
Emergency Project from RDP. These steps showed their effectiveness in supervision of
the RDP funds expenditure and in the course of co-financed undertakings.
At the same time, the scheme of implementation was again based on a silent assumption
that the conglomerate of institutions appointed to co-operate from the moment when the
Project was launched and to implement procedures that were new for them, would be
24
Final Report
able to commence efficient activity immediately. This assumption turned out excessively
optimistic twice and as a result, the activities were much behind the original schedules in
both cases.
C. Co-ordination of activities of various Components was not effective enough.
This was caused by a gap in the designed distribution of competence and
responsibilities among institutions implementing the Project.
As it has been mentioned above, it was Project’s organisational achievement that the
institutions involved in it achieved the level of co-operation ensuring completion of their
tasks at the basic level, i.e. achievement of quantitative outputs assumed for particular
Components.
Thus, co-ordination was effected in terms of Project institutions’ ability to collaborate in
achievement of the basic objectives.
In its wider meaning, co-ordination of activities should be manifested through the ability to
perform tasks in a manner enabling mutual strengthening of activities within the frames of
one Component and of those performed under various Components.
While the capacity to achieve the strengthening effect through the consonance of various
activities within the frames of a Component could be seen at the stage of drawing up
plans and schedules of implementation, the course of Components showed that the
activities were often performed in an accidental sequence and the chance of
strengthening the activities by the means of interrelating one with another was missed.
In case of activities performed under various Components, it is even more difficult to
strengthen them through interaction. To be able to effect this, one needs an entity having
sufficient resources at its disposal, a wide and immediate access to information and – first
of all – adequate decision-making competence. The scope of this entity’s interest, its
mission, should cover co-ordination of Components according to the conception referred
to here. The evaluators have not noticed any institutional efforts aimed at co-ordination in
this meaning of the word.
A question emerges, whether any such entity existed in RDP. This was not the loan
provider, although its status in Project supervision was of a key significance. The Project
Co-ordination Unit did not play this part – it performed important administrative functions,
but despite its central position in the organisational structure, these functions were
subsidiary to other subjects. The National Steering Committee should have played the
co-ordinating role discussed her. But NSC gathered too seldom and for a too short time
to make strategic decisions. The Committee did not interfere much in activities of
Components A and B1, while effective co-ordination of activities should involve a
continuous critical analysis of the entire Project – to be able to anticipate chances for
activities’ synergy and to eliminate any organisational barriers to this synergy.
To sum it up, there was no institution in the Project that would have relevant resources,
knowledge and authority required to effect co-ordination the scale of entire undertaking. It
is worth adding that in the evaluators’ opinion it could have been entirely possible to
make the National Steering Committee or even the Project Co-ordination unit perform a
task like this effectively. Most probably – on the condition that the Project management
system was re-defined and that the selected institution was assigned additional resources
(human, first of all) and in case of PCU – the decision-making authority as well.
25
Final Report
D. It is doubtful whether the formula of RDP will ever be used again, but the good
practice used in the Project is worth disseminating.
The Project organisation had been designed to address:
•
the decision to structure the Project on a multi-Component basis,
•
the assumptions concerning participation of regional authorities and local selfgovernments in the Project,
•
the loan provider’s supervisory function and requirements in the field of monitoring
and reporting.
This makes RDP a constellation of objectives and institutions appointed to implement
these objectives which can hardly be reproduced.
At the same time, the Project had two basic weaknesses:
•
the implementation had commenced before the formation process of institutions
intended to implement it was completed; in consequence, the newly established
organisations and teams assigned the Project tasks faced the need to develop their
own methods of work and to learn the Project procedures, therefore the fact that the
timing provided for in the schedule could not be adhered to can not be surprising, as
the schedule had not allowed for these needs,
•
the Project as an entirety had no institutional owner who would take care of more
than completion of tasks of one Component.
This is why any simple duplication of the entirety of solutions accepted for the Project
seems unjustifiable and useful lessons can rather be learned from analysis of mistakes.
Nevertheless, it is worth noting the good practices introduced and implanted in
participating institutions within the frames of RDP management. The evaluators have
identified the following here:
26
•
subjecting the institutions – the newly-established in particular – to formal restrictions,
such as statute, rules and regulations, specific operating procedures – these were
conducive to stabilisation of activities, competence building and corruption
counteracting,
•
the continuous practice of consultations between representatives of various
institutions – in the form of working, personal contacts and regular meetings
organised by the Project Co-ordination Unit – and also their readiness to disseminate
the solutions that have been worked out and to use them in practice as soon as
possible.
Final Report
2
SWOT Analysis
Table 1.
SWOT analysis of the evaluation model selected for the present
study
Strengths
•
•
•
Combination of two approaches: top-down •
and bottom-up, enabling one to confront
objective data with subjective opinions in
order to obtain a more complete picture of •
evaluation
Precise evaluation criteria
•
Going beyond the four standard evaluation
criteria (relevance, efficiency, effectiveness •
and sustainability) and including such
aspects as evaluation of attendance,
awareness, targeting and sufficiency
•
Detailed evaluation at each level of the
Project: the entire Project, Components,
Sub-Components and services
•
Evaluating not only outcomes and outputs,
but the process of implementation and the
institutional aspects as well
•
Evaluation of all significant activities and
the whole period of Project implementation
•
Precise distribution of tasks and issues
within the group of experts
•
Using wide statistical analyses as a basis
•
Quantitative evaluation supplemented with
a comprehensive qualitative assessment
(triangulation of methods)
•
Showing RDP on the background of other
similar activities and programs
•
Addressing the report of the Superior
Chamber of Inspection
Opportunities
•
PCU’s co-operation and consultations at •
each stage of evaluation
•
Easy access to documentation facilitated
by the Consultant’s internet base
•
•
•
Evaluation provides recommendations,
shows good and bad experiences that may
be used in other development projects in •
the future (e.g. NPR, various SOPs, etc.) or
other similar activities (e.g. loan funds)
Weaknesses
It was impossible to cover the long-term
impact of RDP
Problems with obtaining data from RDP
institutions (e.g. concerning the survey
made by PBS)
Problems with contacting the respondents
Problems with obtaining comparable, good
quality data about other activities and
programs similar to RDP
Threats
Difficulties with precise and objective
identification of net outputs and external
outcomes of the Project (respondents’
opinions being the main basis here)
Omission of RDP long-term impact may
affect the quality of conclusions
Evaluation outcomes may determine future
decisions to launch similar programs
Evaluation outcomes may determine future
decisions to launch similar programs
Source: Consultant’s own analysis
27
Final Report
II
Introduction
29
Final Report
The present report has been prepared by the consortium consisting of: DORADCA
Consultants Ltd. Sp. z o.o., Instytut Spraw Publicznych, PBS Sp. z o.o., Proeko Ltd. on
the basis of a contract with the Project Co-ordination Unit of the Rural Development
Project dated 3 December 2004.
1
Project Description
The Rural Development Project was designed at the end of the 90-ies with the idea to
support the development of rural areas in Poland and it was expected to result in:
•
increased off-farm employment,
•
support for the process of strengthening self-governments of the local and regional
level and support for the regional development,
•
support for the process of building institutional capacity necessary to obtain cofinancing from EU pre-accession and structural funds.
With regard to the complex nature of problems experienced by rural areas, multisectoral
approach was adopted in RDP. The Project consisted of three Components: A – Microcredit, B – Human Capital Development, C – Rural Infrastructure. Additionally, three SubComponents were distinguished within the frames of Component B: B1 – Labour
Redeployment, B2 – Education, B3 – Institution Building in Local and Regional
Administration.
The multisectoral nature of the Project was based on the assumption that the problem of
labour force surplus in rural areas can not be solved within the frames of the sector of
agriculture only. This is why the scope of RDP was extended over support for rural
entrepreneurship, transformations in the education system and in the labour force
structure in rural areas.
The area of RDP implementation covered the whole country, but some Components were
implemented in selected regions, e.g. Component A – in five voivodships only. The
geographical differentiation of RDP particular Components implementation related to
selected socio-economic indicators characteristic for particular voivodships.
Project implementation was possible due to a loan amounting to EUR 118.8 million
provided by the World Bank to the Polish Government.
2
Context of Project Implementation
The Rural Development Project was implemented in the years 2000-2005. Its beginning
coincided with the worsening of the economic situation in Poland and this was particularly
perceptible in rural areas. As a result, the unemployment was growing rapidly there. It is
worth stressing that further increase of unemployment was forecasted in that period, as a
consequence of reforms expected in the national agriculture.
Shortly before RDP was launched, a comprehensive reform of public administration
structures had been implemented since January 1999. The changes involved
decentralisation of the process of public tasks performance and financing to two new
levels of democratically elective self-government authorities: powiats and voivodships.
The decentralisation of public tasks and financing to local self-governments made heavy
30
Final Report
demands on the public administration representatives, especially in rural areas, while
councillors and board members often had no required organisational and managerial
skills.
One should not forget that the period when RDP took place was a time of Poland’s
preparation for accession to the European Union. Activities were initiated to prepare
mechanisms intended to provide effective absorption of pre-accession funds and
following integration – structural funds. One of RDO objectives related to building the
capacity to absorb the funds.
RDP was an element of wider activities aimed at rural areas activation and addressing
the Cohesive Structural Policy for Rural Areas and Agriculture Development (1999). The
Project continued activities performed under other assistance programs, e.g. the
Agricultural Sector Adjustment Loan (ASAL). On the other hand, RDP constituted a
source of reach and valuable experience that can be used when planning and
implementing further programs, such as SPARD for example.
3
Objective of the Final Evaluation Study of the Project
The objective of the present final evaluation of RDP is to:
•
provide the Government of the Polish Republic with a professional and objective
evaluation of the Rural Development Project in terms of effectiveness and efficiency
of its objectives achievement;
•
use the experience and the achievements of RDP in the process of planning and
implementing other programs in favour of rural areas, including those co-financed by
international financial institutions and/or by EU within the frames of Structural Funds
and the Cohesion Fund and
•
fulfil the provisions of the loan contract specified in the Operational Manual and the
Project Appraisal Document.
The final evaluation scope covers:
•
evaluation of RDP objectives achievement based on assumed outcomes and outputs
(performance indicators);
•
economic and financial analysis of RDP;
•
analysis of external financing effect on investment realisation;
•
verification of RDP rationale and evaluation of Project outcomes and construction;
•
analysis of institutional and implementation related assumptions;
•
Project sustainability and risk aspects;
•
evaluation of economic efficiency and effect of scale.
31
Final Report
III Methodology
33
Final Report
1
Research Model
To develop the research model, the Consultant accepted the concept of evaluation
defined as: “Independent, objective examination of the background, objectives, results
and activities aimed at drawing conclusions that could be used within a wider scope”2.
The methodology of the Rural Development Project (RDP) was based on the
methodology developed by OECD/DAC and recommended by the European
Commission3.
According to this methodology, evaluation includes analysis of the so-called Project
intervention logic. The intervention logic involves formulation of a sequence of interrelated
goals of the project at all levels, i.e.:
•
operational goals – manifested by outputs, i.e. goods and services produced
directly during Project implementation,
•
specific goals – manifested by outcomes4, i.e. effects achieved immediately after
Project completion,
•
overall goals – manifested by impact, i.e. long-term effects generated by the
Project5.
Figure 1.
Project intervention logic scheme
Impact
Overall
objectives
(long-term)
Effect
(social effects)
Outcomes
Specific
goals
(initial effect)
Outputs
(goods and services
produced)
Input data
(human and financial
resources)
Project
objectives
Operational
goals
Project
activities
Sources: Consultant’s own analyses
2
MEANS Collection. Evaluating socio-economic Programme, Vol. 6. Glossary, Luxembourg 1999.
Evaluation in the European Commision. A Guide to the Evaluation Procedures and Structures
currently operational in the Commission’s External Co-operation Programmes, Brussels, March
2001.
4
According to the terminology defined in Evaluating EU Expenditure Programs: A Guide. Ex post
and Intermediate Evaluation, Brussels, January 1997, specific goals are called “results”, but we
shall keep to the terminology defined in Terms of Reference and, for the sake of reasoning clarity,
we shall use the term “outcomes”.
5
Evaluating EU Expenditure Programmes: A Guide. Ex post and Intermediate Evaluation, Brussels,
January 1997.
3
34
Final Report
RDP has been evaluated on the basis of five criteria:
Relevance – used to evaluate, to what degree Project objectives identify real problems
and needs of the target group and respond to them.
Efficiency – compares resources (financial, administration, human, etc.) involved in
Project implementation with the actual achievements of the Project at the level of output,
outcome or impact.
Effectiveness – this criterion enables one to assess, whether the objectives defined at
the stage of Project designing have been achieved. Comparing the real effects of the
Project achieved at the level of output, outcome and impact with the assumptions
specified in Project documents, one is able to identify actual achievements of the Project.
Utility – confronts the given sector’s / region’s needs and problems with the actual
achievements of the Project after its completion.
Sustainability – this criterion identifies, whether effects of the Program will last on a midterm and long-term basis, including the question, whether durable positive effects of the
Project will last after co-financing ends.
In particular, the purpose of evaluation was to give answers to a number of evaluation
questions.
One of the primary tasks was to answer the question, whether the specific goals and the
overall objectives (defining the outcomes and the impact) accepted at the stage of
designing the RDP had been achieved as a result of Project implementation.
Moreover, it was important to check, how reliably were projections of economic efficiency
prepared at the stage of RDP design and to what degree they proved true, particularly in
terms of:
•
accepted assumptions (what they were based on, whether they proved correct as the
time proceeded);
•
methodology (whether computations were carried out according to the state of the
art);
•
expected results (indicators).
•
efficiency of money engaged in RDP as compared with alternative utilisation by other
institutions of programs.
It was assumed at the stage of evaluation planning that costs of the Project would be
summed up in a breakdown into Sub-Components and the common part (Component D –
Project management) allocated to particular Components and Sub-Components. The
correctness of cost computation and allocation is a key determinant of the correctness of
particular indicators computation and these were supposed to be measured as the unit
cost of effect in most cases. Moreover, quantitative effects were to be collected. On this
basis, independent computation of Project economic efficiency indicators was supposed
to be carried out. Besides, relevant indicators of other, similar, Polish and foreign
assistance programs were to be identified – the so-called benchmarks, the Project
indicators could be compared with. Programs to be used as a comparative basis were to
be identified in consultation with the Client and listed in the Inception Report.
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Final Report
Where possible, material outputs of particular projects implemented under RDP were to
be converted into money, to compute the economic efficiency of the entire Project.
The next challenge the evaluation process faced was represented by the task of
evaluating the effect of external financing from RDP on investments made by local selfgovernments. The examination was to focus on the effect of the Project in the form of
increased number, scale and improved quality of infrastructural investments. The effects
was to be measured by the means of comparing efficiency indicators of projects cofinanced under RDP with those financed from other sources.
In particular, the development of projects refused co-financing from RDP was to be
analysed:
•
whether they were implemented,
•
whether they were provided financing from other sources,
•
what material outputs they produced.
Efficiency benchmarks were to be defined for these projects and also for projects that had
not apply for RDP financing. The benchmarks would enable one to compare the effects
and the influence of financing in particular. Moreover, the effect of delays in disbursement
of Project funds on project implementation was to be assessed, especially the related
additional costs incurred by gminas.
Besides, the evaluation was supposed to cover the efficiency of Project assumptions
concerning multisectoral activities, geographical diversification of activities, the “added
value” and public participation in the Project. This task was of a horizontal nature and it
included evaluation of Components A, B1, B2,B3, C in terms of:
•
multisectoral aspect – in the meaning of combination of the sector of education,
entrepreneurship in rural areas, employment of the unemployed, education, public
administration,
•
public participation,
•
geographic diversification of activities,
•
World Bank’s added value.
In particular, it was planned to check, to what degree the above assumptions had been
addressed at the stage of particular Components implementation and what results this
approach produced.
The next evaluation task was to assess institutional, organisational and management
quality related solutions of the Project.
In particular, the effectiveness of institutions participating in Project implementation was
to be analysed, i.e.:
•
36
whether the institutions concerned implemented and used correct procedures
consistently, fully complying with the guidelines;
Final Report
•
the procedures in force were to be verified in terms of their completeness and internal
consistency; moreover, distribution of authority and responsibilities among persons
participating in the Project were to be checked and the degree to which the
procedures had provided for various variants of actions; whether there were any
situations that had not been envisaged in original procedures and whether the
procedures were updated when needed;
•
qualifications, quantity and availability of personnel participating in Project tasks
implementation were to be checked;
•
it was planned to check, whether material resources intended for performance of
tasks had been selected in an optimal manner – sufficient and not in excess;
•
it was to be checked, whether the procedures had been used commonly and equally
in all institutions involved in a given task; should any differences be revealed, their
background was to be checked;
•
various institutions’ ability to co-operate was to be checked. It was planned to look for
answers to the following questions: had these institutions complementary resources
at their disposal, for example customised IT solutions; had there been any delays in
Project tasks that might have resulted from the lack of synchronisation of cooperating institutions’ activities; had the co-operating institutions co-ordinated the
process of introducing changes to procedures;
•
it was supposed to be checked, how institutions involved in the Project had
responded to problems and needs reported to them by other stakeholders, including
the beneficiaries – had they been analysed and what their effect had been;
•
it was planned to check the institutions’ ability to learn, i.e. to record and analyse
problems and to design and implement corrective actions, to assess the effectiveness
of corrective actions, to develop models of actions considered to be the best practice
and to disseminate them among institutions performing the same tasks.
The evaluation was planned to include the assessment of utility of procedures, criteria,
institutional solutions, etc. accepted in RDP for future programs. It was assumed that
apart from direct outcomes, RDP would leave a certain “heritage” in the form of
institutions, procedures, trained personnel and habits that would become useful when
implementing other programs, especially programs and projects financed from structural
funds. Thus, it had to be examined and assess, to what degree RDP had become a
foundation for structural funds, particularly in terms of: goals, procedures, beneficiaries
selection criteria, formation of institutions, staff education.
Moreover, it was proposed to include risk management assessment in Project evaluation.
PAD had identified and assessed critical aspects of the Project risks. Methods of
minimising those had also been provided. It was the evaluators’ task to assess whether
the risks had been assessed correctly and whether they had been prevented effectively.
Another purpose of evaluation was to assess the use of economic efficiency criterion and
of the effect of scale criterion by Project beneficiaries. These effects could be achieved
first of all through establishing unions of gminas applying jointly for financial support from
the Project funds and implementing joint ventures. Thus, it was supposed to check,
whether such unions had been created and if not - why.
37
Final Report
The evaluation was supposed to include assessment of public procurement procedures
used in the Project. Research work and analyses planned for this section were expected
to cover:
2
•
the influence of standard bidding and contract procedures for consultants on
institutional adaptation to absorption of pre-accession funds (compliance with EU
requirements concerning bidding procedures);
•
potential problems that might have emerged as a result of differences between World
Bank Requirements, EU requirements and Polish requirements;
•
elements of the Polish law related to public procurements that might have been used
in the Project directly.
Research Work and Data Collecting
To be able to carry out a complete assessment of Project intentions and achievements,
the evaluators planned to use relevant secondary and primary sources.
2.1 Secondary Sources
Indicators relevant to evaluation were analysed on the basis of information collected in
the Consultant’s database, originating from such sources as inter alia: RDP
implementation reports, MIS, Main Statistical Office, regional institutions (voivodship
Administration Offices, Marszlek Offices, Boards of Education, Road Administration
Boards, analyses of local documents characteristic for particular areas). A comparative
analysis of performance against the planned values was carried out and – where
justifiable and possible – selected voivodships, powiats and gminas where particular
elements of the Project had not been implemented were used for comparison. As a result
of comparisons and analyses, the degree of planned performance indicators achievement
by particular Components of the Project was assessed.
When analysing the effects of the Project, the evaluators analysed – inter alia – the
following secondary sources:
•
materials, documents and sets of data (e.g. MIS, MIS for Sub-Component B1)
produced during RDP implementation,
•
statistical database POLSKA 2004,
•
data available from the Main Statistical Office (Regional Data Bank, statistical
yearbooks, information from the National Census and the Agricultural Census),
•
data available from Voivodship Labour offices and Powiat Labour Offices.
2.2 Primary Sources
Primary sources were analysed for exploration and illustration purposes. These analyses
covered specific issues related to particular Components.
38
Final Report
Interviews were made in order to obtain two types of information:
•
information enabling one to follow the effects at the most basic level (from
beneficiaries’ point of view),
•
information supplementing analyses of secondary sources data with more detailed
data, observable at the level of beneficiaries’ assessment and opinions only and also
at the level of institutions co-operating in Project implementation.
2.2.1
Research Tools and Techniques
The research work based on collecting information from primary sources was carried out
mainly by the means of face-to-face interviews. This method of collecting data enabled
the evaluators to meet the expectation included in clause 5.1 of Terms of Reference best
– i.e. to approach all beneficiaries of RDP. On the other hand, it provided the required
quality and reliability of data.
Depending on the nature and the expected structure of information to be obtained, the
research work had the form of:
•
in-depth interviews or expert interviews,
•
questionnaire surveys (in special cases – questionnaires filled by respondents on
their own).
Both qualitative and quantitative surveys were carried out with the use of research tools
developed to address – on the one hand – Project-specific needs and on the other hand
– rules and conditions imposed by the good practice, controlling the way how questions
should be asked, enabling one to obtain sincere and concrete answers and to avoid
mistakes and traps resulting from the construction of research tools.
The research tools prepared for the Project were presented to PCU before the survey
commenced, to provide insight into their contents and form and the possibility to make
any comments or to clarify any concerns.
In-depth or expert interviews
In-depth interviews involved a conversation with a respondent. The conversation
concentrated on selected topics and was conducted according to a pre-designed
interview scenario, but it enabled the respondent to make relatively loose and
unstructured statements. The purpose was to collect information that would be hard to
obtain by the means of classical questionnaire-based interviews – when both the
respondent and the interviewer needed more freedom. Answers were often received to
questions that could never be asked in a standard (questionnaire) mode. These applied
to more complex issues – such as implementation of procedures, identification of
weaknesses and strengths of what had been offered under particular Components, etc.
Individual in-depth interviews were conducted by specially prepared sociologists and
psychologists experienced in this type of research work.
Some of the individual in-depth interviews had a form of expert interviews: they were
conducted by experts co-operating on evaluation and were supplemented with expert
consultations (the expert developed his/her opinion on specific issues immediately during
the interview) and – where justifiable – with analysis of documents.
39
Final Report
Questionnaire-based interviews (in special cases – questionnaires to be filled by
respondents on their own)
Questionnaire-based interviews were used for collecting data that were thereafter
subjected to quantitative analyses.
They were conducted on the basis of questionnaires compiled specially for the purpose of
the present project. They contained both closed and open-ended questions. The
questions were about facts that had taken place during particular tasks and about
respondents’ opinions about particular tasks of the entire Project. Besides contentsrelated questions, the questionnaires contained also a specification: in case of individuals
– a set of socio-demographic information and in case of companies and institutions – the
most important information concerning location, size, employment, etc.
Quantitative surveys were effected by the means of face-to-face interviews in their
majority. Some of the tools (in case of Component C) were prepared in a manner that
made it possible to use them as questionnaires to be filled by respondents on their own.
An assumption was made that in case of data that did not involve opinions, judgements
or experience, but rather purely reporting indicators or information, the interviewer was
allowed – if this was respondent’s wish – to leave the questionnaire and to come back for
it at the time agreed.
Checklists for in-depth interviews
Additional auditing was carried out during meetings with respondents, to supplement indepth interviews conducted by institutional auditors. The list of audit steps was presented
in appendix 2 to the Inception Report. It had a form of a checklist which was given to
each auditor and the purpose of which was to make it easier for the auditor to control the
audit meeting. Certainly, each audit meeting was dedicated first of all to the in-depth
interview. During the interview or after it, the auditor was expected to check the items
from the checklist. These related mainly to availability of resources necessary to perform
the Project tasks. Thereafter, the auditor updated relevant data.
2.2.2
Selection of Samples
At the stage of contract execution, the Consortium supplemented the methodology with
the rules of selecting samples for the questionnaire survey.
Selection of respondents to in-depth interviews
In-depth interview covered the total of 295 respondents who represented central,
voivodship, powiat and gmina institutions and subjects supporting Project implementation
at the central and voivodship level. Some of the interviews were made with Project
beneficiaries.
In case of institutions, the sample was selected in co-operation with the institutions and
the companies concerned. Lists of persons were agreed, with the following
characteristics taken into consideration: (1) the longest time of work for RDP, (2) the
position in the hierarchy of respondent’s institution enabling him/her to provide
information and formulate opinions resulting from the in-depth interview scenario, (3)
specialisation and qualifications adequate to interview scenario requirements (e.g.
providing professional services to Project beneficiaries, operating databases set up by
the institutions concerned, supervision of the Project finance.
40
Final Report
Selection of respondents to questionnaire-based interviews
At the stage of proposal writing it had been assumed that two methods of sample
selection would have been used for the purpose of the present study. Although this
assumption did not change, it is important that as a result of absence of an integrated
system of information about beneficiaries containing address data, the sample selection
procedure was much complicated and much more time was needed to prepare the
survey and the very process of survey was more complicated as well.
Assumptions for selection of respondents at the stage of proposal writing
According to clause 5.2 of Terms of Reference, the survey samples were selected to
cover all groups of beneficiaries, but also – additionally – persons involved in Project
implementation and being a valuable source of information. The samples covered all
voivodships where particular Components of the Project had been implemented (except
for the samples for Sub-Component B1, where the survey had been made in two
voivodships selected on purpose).
According to the assumptions presented in the proposal, the selection was carried out as
follows:
•
Beneficiaries and persons co-operating in Project implementation: stratified random
samples, based on databases containing phone and address data of RDP
beneficiaries or persons co-operating in RDP implementation. Additionally, in case of
final beneficiaries whose phone address data were not in Client’s possession, the
sample drawing was effected at the level of powiats or gminas whose help was
thereafter necessary to find out, how potential beneficiaries could be contacted (see:
beneficiaries of Sub-Component B2).
•
Comparative samples – these were selected in a manner tailored for each particular
Component and each part of the survey, to be able to obtain information that can be
now compared with the information collected from Project beneficiaries and from
institutions co-operating in implementation.
Operational database construction
When PBS commenced work on preparing the survey operational database, it turned out
that no integrated system of information about beneficiaries existed at the level of the
entire Project or at the level of particular Components. Unfortunately, such information
was a necessary condition of efficient drawing of gminas and respondents to be
surveyed. This situation did not result from any mistakes made at the stage of Project
implementation, but only from the fact that the issue had not been thought over or
planned at the stage of Project planning. Therefore, it is worth assuming in any future
programs that an integrated system of information about final beneficiaries should be built
with phone and address data and also – resources permitting – with any other interesting
indicators that may enable one to perform some part of evaluation without the need of
conducting face-to-face interviews with final beneficiaries.
When designing the selection of samples, apart from the duties accepted under the
contract, the Evaluator had to create the information system referred to. This fact caused
a considerable delay in commencement of the main survey, this situation representing a
significant problem in the context of delay in the whole evaluation commencement.
41
Final Report
To sum up the stage of IT system construction for the purpose of the present evaluation,
one should pay attention to the following facts:
1) At the stage of RDP planning assumptions were made concerning indicators that
should be analysed during evaluation, but no measures were taken to organise a
system of collecting data about the Project outcomes and beneficiaries to enable the
evaluators to draw samples from a few basic electronic databases without problems –
in a minimum version – or, to monitor changes at the level of key statistical indicators
– in the maximum version – at the stage of evaluation.
2) The survey was easiest in case of Component A, where the implementing institutions
(Rural Development Foundation and Foundation for the Development of Polish
Agriculture) provided phone and address databases of beneficiaries. In practice, no
problems emerged there, apart from typical information that some potential
beneficiaries had changed the address or left home for a longer time. SubComponent B3 and Component C did not require many additional activities of
Evaluator to construct the sample (the samples were created on the basis of
documentation provided by PCU and ARMA).
3) In case of surveying beneficiaries of Sub-Component B1, it was necessary to obtain
information from each voivodship covered by this Sub-Component separately.
Another important problem arose when acceptance of personal data processing had
to be obtained in contracts the beneficiaries had been obliged to sign. In most cases,
Voivodship Labour Offices had no knowledge of the matter or were forced to contact
the Contractors and to obtain confirmation from them directly. When this issue was
being checked, it turned out that no uniform contract for beneficiaries with a clause
like this had been used and that the contents of contracts had depended on the
Contractor. The absence of a written acceptance of personal data processing
constituted a basis of refusal to provide beneficiaries’ phone and address data to the
Evaluator and as a result it was impossible to effect the planned survey. Finally, the
problem was solved through a reference to the provisions of the Act of Personal Data
Protection (Journal of Laws 97.133.883, amendments: Journal of Laws 00.12.136,
Journal of Laws 00.50.580) – art. 23 para. 4 and 5 – relation between the Evaluation
and the base Administrator’s discharge of tasks performed for the public benefit,
where no rights and freedom of persons the data apply to are violated; art. 26 par. 2,
which provides that processing data for a purpose which differs from the purpose for
which data was collected is admissible, unless it violates the rights and the freedom
of the person the data apply to and is performed for scientific, didactic, historical or
statistical purpose, on the conditions specified in art. 29 para 1 – 4 of the same Act.
4) Similarly, the process of constructing operational database for drawing a relevant
sample for the purpose of Sub-Component B2 evaluation encountered significant
problems. The Client provided a list of IT training beneficiaries and a list of
refurbished schools to the Evaluator, but specification of information about the
remaining activities (pre-school classrooms equipment, school network consolidation,
didactic aids purchasing, didactic training for teachers and school directors) had a
form of a list of gminas that had applied for co-financing, instead of a list of schools
concerned. As a result, additional resources had to be used, although this had not
been envisaged on the basis of information provided by PCU at the stage of
Evaluation planning.
42
Final Report
Table 2.
Tool
number
Specification of research tools used for evaluation – questionnaire-based interviews and in-depth interviews; general information
about selection of respondents
Description of respondents
Number of interviews
Method of interviewing
assumed
conducted
Other comments
General assumptions and indicators for the entire Project (ToR, 4.3)
1
Representatives of RDP gminas
Questionnaire-based
interviews
100
100
2
Representatives of non-Project gminas
Questionnaire-based
interviews
100
100
Specific assumptions and indicators for particular Components (ToR, 4.4)
3
Component A: loan advisers
In-depth interviews (IDI)
5
5
4
Component A: beneficiaries
In-depth interviews (IDI)
5
5
5
Questionnaire-based
interviews
300
300
6
Component A: potential beneficiaries not Questionnaire-based
covered by the Project (similar to beneficiaries) interviews
300
301
7
Sub-Component B1: consultants well-versed in In-depth interviews (IDI)
labour market analyses
7
6
8
Sub-Component B1: persons involved in In-depth interviews (IDI)
Component implementation at the VLO level
7
7
9
Sub-Component B1: persons from Powiat Questionnaire-based
Labour offices involved in Sub-Component B1 interviews
implementation
100
103
10
Sub-Component
individuals)
700
706
11
Sub-Component B1: Sub-Component project Expert interviews
manager at the level of Ministry of Economy
and Labour Project Team
1
1
12
Sub-Component B1: persons from non-Project Questionnaire-based
gminas, similar to beneficiaries
interviews
400
423
B1:
beneficiaries
(private Questionnaire-based
interviews
43
Included in tool no 37
Final Report
Tool
number
assumed
conducted
13
Sub-Component B2: VPIU representatives – In-depth interviews (IDI)
persons involved in education Component
implementation
7
7
14
Sub-Component B2: members of gmina In-depth interviews (IDI)
authorities competent in education related
matters
24
24
15
Sub-Component B2: trained teachers
Questionnaire-based
interviews
600
602
16
Sub-Component B2: trained school directors
Questionnaire-based
interviews
300
298
17
Sub-Component B2: directors of schools where Questionnaire-based
software was provided
interviews
150
151
18
Sub-Component B2:
directors trained in IT
300
303
19
Sub-Component B2: directors of refurbished Questionnaire-based
schools
interviews
40
42
20, 21
Sub-Component B2: school directors – non- Questionnaire-based
Project schools
interviews
40
40
Sub-Component B3: members of authorities Expert interviews
from gminas that applied to IDP
40
40
22
44
teachers
and
school Questionnaire-based
interviews
Other comments
Interviews divided into two groups
(22a and 22b): IDP participants
(20 persons) and participants of
IDP Dissemination Program (20
persons) from Lubelskie and
Kujawsko-Pomorskie voivodships
who
participated
in
the
dissemination Program – regional
conferences
Final Report
Tool
number
assumed
conducted
23
Sub-Component B3: representatives of NGOs Expert interviews
situated in Project gminas
20
0
24
Sub-Component
B3:
representatives
of Questionnaire-based
territorial self-government units where training interviews
was provided
60
60
25
Sub-Component B3: households in Project questionnaire-based
gminas
interviews
300
300
26
Sub-Component B3: micro-enterprises in IDP questionnaire-based
gminas
interviews
30
30
27
Sub-Component B3: households in non-Project questionnaire-based
gminas
interviews
300
301
28
Sub-Component B3: micro-enterprises in non- questionnaire-based
Project gminas
interviews
30
30
29
Component C: members of authorities in In-depth interviews (IDI)
gminas where infrastructural investments were
effected
40
40
30
Component C: members of authorities in questionnaire-based
100
gminas where infrastructural investments were interviews
or
a
effected
questionnaire
filled
by
respondents on their own
96
45
Other comments
Questions about NGOs were
included in in-depth interviews
with IDP participants and it was
stated on this basis that it was
impossible to identify NGOs as a
participant of activities performed
within the frames of training
programs or of IDP. It was a
problem to identify the legal status
of organisations operating in rural
areas – Village Women’s Clubs
and Voluntary Fire Brigades. Most
often, gminas informed that there
were no NGOs on their territory
they co-operated with, therefore it
was necessary to eliminate this
element of survey.
Final Report
Tool
number
assumed
Other comments
conducted
31
Component C: households in gminas where questionnaire-based
infrastructural investments were effected
interviews
400
400
32
Component C: representatives of enterprises in questionnaire-based
Project gminas
interviews
100
99
33
Component C: members of authorities in In-depth interviews (IDI)
gminas not covered by Component C
40
40
Sample divided into 2 groups (33a
and
33b):
persons
who
implemented a project without
RDP funds and persons who did
not implement a project without
RDP funds
Examination of the impact of external financing on investment projects implementation, consequences of providing / not providing RDP financing (ToR, 4.6)
34
Component C: representatives of gmina questionnaire-based
100
authorities responsible for implementation of interviews
or
a
projects supported under Component C
questionnaire
filled
by
96
35
Component C: representatives of gmina
authorities responsible for implementation of
projects supported under other assistance
programs
questionnaire-based
100
interviews
or
a
questionnaire
filled
by
96
36
Component C: representatives of gmina questionnaire-based
100
authorities from gminas that applied for interviews
or
a
Component C co-financing, but were refused it questionnaire
filled
by
97
Included in the sample for tool 30
Verification of the grounds for, and the assessment of the results: multi-sectoral nature, geographical differentiation, active participation (bottom-up approach, “added value”
that has resulted from World Bank support to the Project (ToR, 4.7a)
37
Persons managing particular Components (A, Expert interviews
B1, B2, B3, C), persons from ministries, Agency
for Reconstruction and Modernisation of
Agriculture and BGK
10
38
Authorities of territorial self-government units
100
In-depth interviews
Analysis of institutional and implementing arrangements (ToR, 4.7b)
46
10
Carried
auditors
out
by
institutional
Included in tools no 14, 22a, 22b
and 29
Final Report
Tool
number
assumed
conducted
39
Institutions
managing
the
Project
or Expert interviews
participating in its implementation at the central
level (project teams in particular ministries)
10
10
40
NSC
Expert interviews
5
5
41
PCU
Expert interviews
5
6
42
ARMA research team
Expert interviews
2
2
43
Five RSCs – two persons from each
Expert interviews
10
10
44
Ten VPIU – one person from each
Expert interviews
10
10
45
Five VLO – one person from each
Expert interviews
5
10
46
Ten ARMA RD – one person from each
Expert interviews
10
10
47
Companies or institutions providing services to Expert interviews
Project stakeholders
20
20
Other comments
Analysis of Project sustainability and risk aspects (ToR, 4.7c)
48
Representatives of institutions responsible for Expert interviews
implementation of structural funds, i.e. first of
all: Ministry of Economy and Labour, Ministry of
Agriculture and Rural Development, Ministry of
Environment and other, to identify the
procedures, the people and the institutions that
could be “inherited” by them from RDP
10
10
49
Officers from institutions responsible for RDP Expert interviews
implementation – to assess their suitability
(education,
experience)
after
Project
completion
10
10
50
RDP beneficiaries – to what degree the In-depth
interviews
experience they acquired will facilitate their expert interviews
efforts to obtain support from pre-accession
and structural funds
or 100
100
Economic efficiency and economy of scale (ToR 4.7d)
51
VPIU representatives
expert interviews
7
7
47
Included in tools no 14, 22a, 22b
and 29
Final Report
Tool
number
52
Representatives of gminas and powiats questionnaire-based
incorporated and not incorporated in gmina interviews
unions
assumed
100
Source: Consultant’s own analyses
48
conducted
96
Other comments
Included in tool no 34
Final Report
Table 3.
Tool
number
Description of the sample drawing process for the purpose of questionnaire-based interviews.
Operational base from
which the sample was
drawn
Sample drawing method
The outcome and impact indicators for the entire Project (ToR, 4.3)
1 (W_1)
Representatives of gminas Operational base: list of all
included in the Project
gminas included in RDP, with
the number of Components
particular gminas participated
in
taken
into
account;
constructed on the basis of
Project documentation
A two-degree selection scheme has been used.
At the first stage, gminas were drawn in voivodship strata. The process of drawing was
independent in each voivodship and the method assumed that the number of interviews in a
voivodship should be proportional to the fraction the number of Project gminas represented in the
overall population of Project gminas. Simple drawing was effected, with an equal probability of
selection.
At the second stage, persons from gmina administration offices were selected with a focus of
their involvement in the Project and the ability to provide competent information about the
situation in gmina.
2 (W_2)
Representatives of gminas Operational base: gminas not
not included in the Project – included in the Project or
comparative sample
included to an insignificant
degree; constructed on the
basis
of
Project
documentation.
It was assumed at the stage of survey planning that the comparative sample should consist of
gminas that had not been included in the Project.
It turned out at the stage of analysing the population of Project and non-Project gminas that there
were only 16 gminas all over Poland that had been eligible for the Project but had not been
included in any of the Project activities. It was determined on the basis of consultations with the
Client that the pool of 84 missing gminas would be provided through including those gminas
whose participation in the Project had been “of little intensity”, where the type of activities that had
been implemented gave a high certainty that these had no significant impact on gmina’s
condition. Thus, gminas meeting the following criteria were selected for this part of the sample:
not more than 10 persons had been provided support under Component A, OR
not more than 10 persons had participated in IT training, OR
co-financing for equipping pre-school classrooms had been provided under Sub-Component B2
only (a single investment), OR
co-financing for the maximum of 3 refurbishing or modernisation undertakings in schools / school
common rooms had been provided under Sub-Component B2.
Drawing was not necessary in this part of the survey project, as it covered the whole population in
fact. Interviews were conducted with these persons from gmina offices who were able to provide
competent information about the situation in gmina.
49
Final Report
Tool
number
drawn
Assumptions and indicators concerning particular Components (ToR, 4.4)
5 (A_1)
Operational base: a list of A multi-degree sample drawing scheme was used.
beneficiaries provided by the
At the first stage of sample drawing, powiats were drawn. The drawing process was effected in
Client.
each voivodship independently, with the probability proportional to the number of beneficiaries
and the method assumed that the number of interviews in a voivodship should be proportional to
the fraction the given stratum constituted in the population.
At the second stage, gminas in powiats were drawn. Similarly as at the first stage - with the
probability proportional to the number of persons participating in the Project.
At the last stage of sample drawing, beneficiaries were drawn in gminas – with an equal
probability of selection.
6 (A_2)
Component A: comparative
sample – persons eligible in
terms
of
social
and
demographic criteria, who had
not benefited from the Project
Operational
sample:
the
survey
conducted
in
voivodships included in RDP;
address sample; respondents
selected from among persons
meeting formal criteria of
participation in Component A
A multi-degree sample drawing scheme was used.
At the first stage, gminas in voivodship strata were drawn. The process of drawing was
independent in each voivodship and the method assumed that the number of interviews in a
voivodship should be proportional to the fraction the voivodship’s participation in the Component.
Simple drawing was effected, with the probability of selection proportional to the number of
beneficiaries.
At the second stage, starting points were selected automatically – district electoral commissions
selected with the probability proportional to the number of people with the voting rights.
At the next stage, the random route method was used for selecting private addresses, where a
respondent meeting the survey eligibility criteria was selected purposefully (a person eligible for a
micro-credit, who had not been granted it).
9 (B1_1)
Sub-Component B1: persons
from Powiat Labour Offices
involved in implementation of
Sub-Component B1
Operational sample: a list of
gminas/powiat where SubComponent B1 had been
implemented
It was assumed at the stage of survey planning, that interviews of part of will be conducted with
representatives of territorial self-government units, where Sub-Component B1 had been
implemented. Since it turned out that representatives of TSUs had no information about
Component implementation and were not able to answer the questions, the sample was redefined after consultations with PCU and this part of the survey project was transferred to Powiat
Labour Offices.
The survey covered the whole population of Powiat Labour Offices situated on the territory of
Sub-Component B1 implementation (130 PLO).
In powiats participating in the Component, persons were selected from Powiat Labour Offices
with a focus on their knowledge of powiat’s situation within the scope required for the survey.
50
Final Report
Tool
number
10 (B1_2)
12 (B1_3)
15 (B2_1)
16 (B2_2)
Sub-Component
beneficiaries
individuals)
drawn
B1: Operational base: a list of
(private private
beneficiaries
constructed on the basis of
phone and address data
obtained from Voivodship
Labour Offices
At the first stage, a purposeful selection of powiats from Małopolskie and Kujawsko-Pomorskie
voivodships took place (those powiats were selected, where most activities of Sub-Component
B1 had been implemented).
At the second stage, individual beneficiaries from the selected powiats were drawn with the equal
probability of selection. Beneficiaries were drawn on the basis of address lists possessed by
Voivodship Labour Offices.
Operational base: the survey
effected
in
voivodhips
included in RDP; random
sample;
respondents
selected from among persons
formally eligible for SubComponent B1
Sub-Component B2: teachers Operational base: a list of
who had participated in gminas where teachers had
didactic training
participated
in
didactic
training; when beneficiary
gminas
were
drawn
–
interviewers
contacted
individual
respondents
through
those
gmina
administrations
that
had
applied for RDP support.
Sub-Component
B1:
comparative
sample:
–
persons eligible in terms of
social
and
demographic
criteria, who had not benefited
from Sub-Component B1
Sub-Component B2: school Operational base: a list of
directors who had participated gminas
where
school
in didactic training
directors had participated in
didactic
training;
when
beneficiary
gminas
were
drawn
–
interviewers
contacted
individual
respondents through those
gmina administrations that
had applied for RDP support.
At the first stage, a purposeful selection of powiats from Małopolskie and Kujawsko-Pomorskie
voivodships took place. At the second stage, gminas were drawn in the selected powiats, with the
probability of selection proportional to the number of inhabitants.
At the last stage, a respondent meeting the criteria of participation in Component was selected.
At the first stage, gminas were drawn with the probability proportional to the number of
beneficiaries. At the next stage, schools were selected (on the basis of data from gmina
administration offices) where the beneficiaries worked. At the last stage, employees who had
attended training were selected (teachers and school directors).
At the first stage, gminas were drawn with the probability proportional to the number of
beneficiaries. At the next stage, schools were selected (on the basis of data from gmina
administration offices) where the beneficiaries worked. At the last stage, employees who had
attended training were selected (teachers and school directors).
51
Final Report
Tool
number
17 (B2_4)
drawn
Sub-Component B2: directors Operational base: a list of
of schools that had been gminas where schools had
provided software
been provided co-financing
for
software;
when
beneficiary
gminas
were
drawn, interviewers contacted
individual school directors
through gmina administration
offices that had applied for
RDP support
each voivodship independently, with the equal probability of selection and the method assumed
that the number of interviews in a voivodship should be proportional to the fraction the given
stratum constituted in the population.
At the second stage, gminas in powiats were drawn with the equal probability of gmina selection
from the powiats that had been drawn.
On the basis of data obtained from gmina administration offices, Project schools were selected at
the third stage. The interviews were conducted with school directors.
18 (B2_3)
Sub-Component B2: teachers Operational base: a list of A multi-degree sample drawing scheme was used.
and school directors who had beneficiaries provided by the
The operational base consisted of individuals who had attended IT training. Respondents were
been trained in IT
Client
selected by the means of simple sample drawing in voivodship strata and the method assumed
19 (B2_5)
Sub-Component B2: directors Operational base: a list of
of renovated schools
gminas where schools had
been provided co-financing
for
refurbishing;
when
beneficiary
gminas
were
drawn, interviewers contacted
individual school directors
through gmina administration
offices that had applied for
RDP support
20,
21 Sub-Component
B2:
(B2_6)
comparative sample: school
directors
–
non-Project
schools
At the second stage, gminas in powiats were drawn with the equal probability of gmina selection
from the powiats that had been drawn.
On the basis of data obtained from gmina administration offices, Project schools were selected at
the third stage. The interviews were conducted with school directors.
Operational base: a list of A multi-degree sample drawing scheme was used.
gminas that had not been
included in the Project; At the first stage of sample drawing, gminas were drawn. The drawing process was effected in
random selection
that the number of interviews in a voivodship should be proportional to the fraction of schools the
given stratum constituted in the population.
At the second stage, non-Project schools were selected. The interviews were conducted with
school directors.
52
Final Report
Tool
number
24 (B3_1)
Sub-Component
B3:
representatives of territorial
self-government units where
training had been provided
drawn
Operational base: a list of A 2-degree sample drawing scheme was applied.
gminas where training had
been
provided;
random The operational base consisted of a list of Project gminas. The selection was effected by the
means of simple drawing in voivodship strata and the method assumed that the number of
selection
interviews in voivodships should be proportional to the fraction of beneficiaries (gminas) the given
stratum represents in the population
At the second stage, a participant of the Project training was selected.
25 (B3_2)
Sub-Component
B3: Operational base: a list of
households in Project gminas gminas where training had
been
provided;
random
selection; address starting
points were used on a given
gmina territory
At the first stage, gminas were drawn. The process of drawing was independent in each Project
voivodship with the probability proportional to the number of inhabitants and the method assumed
stratum represented in the population.
At the second stage, starting points were selected – district electoral commissions selected with
the probability proportional to the number of people with the voting rights.
At the next stage, the random route method was used for selecting private addresses, where a
respondent was selected at the last stage. Respondents were selected purposefully from among
persons who had at least one contact with the local gmina administration office within the last
year (2004).
26 (B3_4)
Sub-Component B3: micro- Operational base: a list of A multi-degree sample drawing scheme was used.
enterprises in Project gminas gminas where training had
been provided; purposeful At the first stage gminas participating in IDP were drawn. The sample was drawn with the
probability proportional to the number of registered business entities with the employment not
selection
larger than 9 people. At the second stage, enterprises were selected from among those who had
contacts with the gmina administration office in the year 2004. Respondents were selected from
among business owners or managers who had at least one contact with the local gmina
administration office within the last year (2004).
53
Final Report
Tool
number
27 (B3_3)
Sub-Component
B3:
comparative
sample:
households in gminas not
participating in IDP
drawn
Operational base: a list of
gminas not participating in
IDP;
random
selection;
address starting points were
used on a given gmina
territory
each voivodship independently, with the equal probability of selection
At the second stage, gminas in powiats were drawn with the probability proportional to the
number of inhabitants.
At the next stage, starting points were selected – district electoral commissions selected with the
probability proportional to the number of people with the voting rights. As the next step, the
random route method was used for selecting private addresses, where a respondent was
selected at the last stage. Respondents were selected purposefully from among persons who had
at least one contact with the local gmina administration office within the last year (2004).
28 (B3_5)
30 (C_1)
Sub-Component
B3:
comparative sample: microenterprises in gminas not
included
in
the
SubComponent
gminas not participating in
IDP (similar to gminas
participating
in
IDP);
purposeful selection
Component
C:
representatives
of
gmina
administration offices, where
infrastructural
investments
had been effected
gminas
participating
in
Component C, quota-based
selection (with types and
number
of
activities
performed in a given gmina
taken into account)
each voivodship independently, with the probability of selection proportional to the number of
business entities. At the second stage, gminas in powiats were drawn with the probability
proportional to the number of inhabitants. At the third stage, starting points were selected –
district electoral commissions selected with the probability proportional to the number of people
with the voting rights. At the last stage, respondents were selected purposefully from among
business owners or managers persons who had at least one contact with the local gmina
administration office within the last year (2004).
At the first stage of sample drawing, gminas were drawn. The drawing process was effected in
each voivodship independently and the method assumed that the number of interviews in a
voivodship should be proportional to the fraction of beneficiary gminas, the given stratum
constituted in the population. Simple sample drawing was effected, with the equal probability of
selection.
At the second stage, gminas were drawn with the equal probability of selection. Respondents
were selected in gmina offices purposefully from among persons who were competent in matters
related to Component C implementation.
54
Final Report
Tool
number
31 (C_4)
32 (C_5)
Component C: households in
gminas where infrastructural
investments
had
been
effected
Component
C:
representatives of enterprises
in gminas included in the
Program
drawn
gminas
participating
in
Component C, quota-based
selection (with types and
number
of
activities
performed in a given gmina
taken into account); random
selection of respondents
gminas
participating
in
Component
C,
gminas
selected on a quota basis
(with the types and numbers
of activities performed in
gmina taken into account);
purposeful
selection
of
respondents
At the first stage of sample drawing, gminas were drawn. The drawing process was effected in
each powiat covered by Component C independently, with the probability of selection
proportional to the number of investments financed under the Project.
At the second stage respondents were selected (purposeful selection) – persons in households
(second degree drawing unit), competent in matters related to investments effected in the given
gmina (is or was a decision-maker in matters relating to the use of infrastructural developments).
each voivodship independently, with the probability of selection proportional to the number of
beneficiary gminas and the method assumed that the number of interviews in a voivodship should
be proportional to the fraction the given stratum constituted in the population.
At the second stage, gminas in powiats were drawn with the equal probability of selection.
At the last stage, representatives were selected in enterprises launched during the Projectfinanced infrastructural investment implementation or after its completion.
Examination of the impact of external financing on implementation of investment projects, consequences of being or not being provided with RDP financing (ToR 4.6)
34
Component
C:
representatives
of
gmina
authorities responsible for
implementation of projects cofinanced under Component C
Operational base: a list of Included in the sample for tool 30
gminas
participating
in
Component
C,
gminas
selected on a quota basis
(with the types and numbers
of activities performed in
gmina taken into account);
35 (C_2)
Component C: comparative
sample: representatives of
gmina authorities responsible
for implementation of projects
co-financed
under
other
assistance programs
Operational base: a list of A two-degree sample drawing scheme was applied.
gminas
participating
in
Component C, purposeful Gminas were drawn with the equal probability of selection in voivodship strata and the method
assumed that the number of interviews in a voivodship should be proportional to the fraction of
selection.
gminas from SAPARD, the given stratum represented in the population (of gminas covered by
SAPARD co-financing). Only gminas meeting the size-related criterion of participation in RDP
were taken into consideration – rural and mixed rural-urban gminas with the population below 20
thousand.
At the second stage, a gmina administration representative was selected (Project co-ordinator).
55
Final Report
Tool
number
36 (C_3)
Component C: comparative
sample: representatives of
gmina authorities who had
applied for co-financing under
Component C, but were
refused
drawn
gminas that had applied for
support from Component C,
but were not qualified;
purposeful selection.
A 3-degree sample drawing scheme was applied.
At the first stage, powiats were drawn in voivodship strata. The probability was proportional to the
number of gminas in the powiat that had applied for co-financing, but were refused.
At the second stage, gminas were drawn with the equal probability of selection. Finally, persons
from gmina offices were selected with the focus on their ability to make statements concerning
issues related to this part of the Project.
56
Final Report
3
Analysis of Data
Project evaluation has been based on empirical research work which provided
quantitative and qualitative data. Qualitative data were obtained from questionnairebased interviews and from analyses of documentation. On the other hand, quantitative
data were obtained from questionnaire-based interviews conducted on representative
samples of beneficiaries described above.
According to methodological rules of social sciences, the collected quantitative data have
been subjected to statistical analysis, while qualitative data – to crosswise and
longitudinal analysis in order to analyse specific and intersubjectivised features. The
quantitative data and the qualitative data were treated as complementary, verifying and
complementing one another. Due to so applied triangulation it was possible to obtain a
complete picture of the evaluated Project.
The following techniques were used for the analysis:
•
Analysis of the Project documentation contents;
•
Information from in-depth interviews was subjected to qualitative analysis, with the
tactic of generating information meaning through:
•
o
identification of patterns, main themes, repeating regularities,
o
grouping, i.e. matching objects and comparing them at the level of: events,
actors, processes, places, circumstances,
o
noticing relations between variables,
o
building a logical chain of evidence.
Statistical analysis of quantitative data, especially:
o
constructing indicators that reflect quantitative outcomes of the Project within
the frames of four evaluation criteria;
o
projecting the delayed outcomes of the Project and their variability in time,
o
analysing dependence on structural variables (especially those
characterising regions, where the Project was implemented) and on variables
of a socio-demographic nature.
On the basis of quantitative and qualitative data analysis, exhaustive and supported with
empirical evidence answers to evaluation questions have been formulated.
The process of evaluation was organised in a form of stage analysis. Particular stages
were as follows:
The first stage consisted in analysis of data (concerning Project issues and areas) from
two basic sources. For the first, from a base consisting of all materials prepared during
the evaluation survey and filed in Consultants' Database. These materials were
distributed according to experts’ declarations of their information needs submitted before
the survey began. For the second, these were secondary data from official publications of
57
Final Report
the Main Statistical Office, Labour Offices, Local Data Banks and other covering the
Project area. This analysis was used as a basis for the first part of evaluation effected by
the top-down approach method. The first stage was closed with formulation of preliminary
theses and expectations concerning Project evaluation within the scope which was
possible at this stage of analysis and on the basis of available data. The top-down
approach enabled the evaluators to identify the problems to which particular Components
and Sub-Components of the Project responded. Moreover, the analysis provided a basis
for evaluation of particular Components’ rationale and for identification of alternative
forms of support that potentially could be more justifiable in the given area. Moreover,
objectives and activities of particular Components and Sub-Components were evaluated
at this stage, with a special focus on characteristics of interrelations between objectives
of the entire Project and the logic of particular Components. Besides, the evaluators
assessed the relevance of particular Components, i.e. the degree to which the Project
objectives had identified target beneficiaries’ (persons, regions) real problems and needs
and had responded to them. At this stage, relevance of selection of beneficiaries was
evaluated, i.e. it was checked, whether the Project really addressed those beneficiaries
who had originally been indicated as its target group. Assessment of objectives and
activities of particular Components was closed with the evaluation of Project targeting, i.e.
the degree to which the Project implemented the general assumptions of State policy in
this field. The top-down analysis was closed with a diagnosis of the situation before and
after specific Components, addressing in particular – where justifiable – economic
indicators “before and after” the Project in the areas and groups covered by Components,
in comparison with those, that had not been covered by the Project. Here, effectiveness
of all Components was evaluated too and the assumed objectives were compared with
those achieved and the utility aspect was assessed through confrontation of a given
region’s and individual beneficiaries’ needs and problems with the real achievements of
the Project after its completion.
The second stage of work included a bottom-up analysis and it began with analysis of
questionnaire data collected for particular Components and Sub-Components. These
enabled the evaluators to assess Project net outcomes and outputs, on the basis of the
most probable variant of events in the areas and groups covered by the survey, if the
Project had not been implemented. At this stage, the focus was on identification of these
elements of evaluation, that could not have been effected on the basis of secondary data,
i.e. on evaluation of additional (external) effects of the Project, both positive and negative,
and a “what – if” analysis. Thereafter – on the basis of Proeko documents again – those
elements of the Project were evaluated that could be assessed on the basis of opinions
(e.g. relevance, targeting, awareness, etc.) and such elements that could be assessed at
a low deaggregation level mainly. At this stage of analysis it was possible to identify and
measure costs of the Project and other outlays and as a result – to analyse the economic
aspect of particular Components. Moreover, the financial leverage was assessed, i.e. it
was indicated whether access to any other external funds was gained due to the Project.
The next element of analysis included identification and measuring of Project net outputs
and outcomes and its effectiveness, i.e. assessment, to what degree the planned outputs
had really been produced.
Analysis of efficiency was the third stage of work. With this end in view, Project costs and
benefits were estimated and compared – the particular focus was on outlays incurred
within the Project to create new off-farm jobs. This analysis was carried out in two
phases. Firstly, opinions about Project outcomes were collected directly from entities
participating in its implementation. Secondly, Project outcomes were compared with
benchmarks of assistance or Government programs and – where possible – with market
indicators (e.g. in the sphere of infrastructural projects).
58
Final Report
Analysis of opinions provided by entities participating in Project implementation enabled
the evaluators to identify the outcomes of the Project (including those non-economic
ones). These data were obtained from entities involved in Project implementation at the
operational level. The group of these entities included gminas, trainees, loan advisers,
labour offices and others. Usually, these data were of a qualitative and subjectivised
nature. The research tools of Project evaluation were the main source of these data.
On the other hand, analysis of benchmarks enabled one to answer the question, whether
the outcomes of the Project were much different from the outcomes of similar programs.
The comparison of respective indicators enabled one to evaluate RDP in an objective
manne
59
Final Report
IV Outcomes
61
Final Evaluation Study of the Rural Development Project – Component A
Walery Marcinowicz, Piotr Wróbel, Ph. D.
1
Component A
63
1.1 Top-down analysis
1.1.1
Identification of Problems Component A Responds to
The purpose of Component A was to support existing business entities and to assist in
establishing new ones, as well as to support diversification of business activity in rural
areas and small towns. The area of Component A covered five voivodships: KujawskoPomorskie, Małopolskie, Podkarpackie, Warmińsko-Mazurskie, Zachodniopomorskie.
Component A adds to achievement of the Program’s overall objective: increased offfarming employment in rural areas.
Problem characteristics
According to the Program Appraisal Document, the existing and expected high level of
uneployment in rural areas was the problem to be faced by Component A.
In 1999, 2171 out of 2489 gminas were inhabited by rural population. The rural population
accounted for 38.2 of Poland’s total population (14 759 thousand people). 27.1% of all
the employed worked in agriculture (4 260 thousand people). This rate was much higher
than in EU member countries.
At the end of the 90-ies the uneployment in rural areas was a problem of primary
importance. The group of registered unemployed had been growing rapidly in rural areas
since 1998 and it amounted to 1 056 thousand in 1999 and 1 180 thousand in 2000.
Figure 2.
Unemployed inhabitants of rural areas in the years 1996-2000
1998-2000: total growth of unemployment by 41%
1 400 000
1 200 000
1 000 000
800 000
600 000
400 000
200 000
0
1996
1997
1998
Unemployed - total
Women
1999
2000
Men
Source: Statistical Yearbook, GUS, Warsaw 2001
Since the beginning of the 90-ies, the agriculture had been a buffer absorbing the surplus
of labour force generated by the economy and it had a significant share in the hidden
unemployment existing in rural areas6. It was estimated that at the end of the 90-ies the
level of hidden unemployment exceeded 1 200 thousand people in Poland, about 900
6
See:. I. Frenkel, Ludność, zatrudnienie i bezrobocie na wsi. Dekada przemian, IRWiR PAN,
Warszawa 2003.
64
thousand out of this number – in agriculture.7 As a result, the real rate of unemployment
was much higher in rural areas than in cities.
In the 90-ies the geographical diversity of the unemployment’s intensity increased. This
resulted from the stronger fall of the rate of unemployment in the regions with the lowest
rate in comparison with the regions with the highest rate. The best situation was observed
in strongly urbanised voivodhips: Mazowieckie, Wielkopolskie and Małopolskie. The
unemployment was highest in the areas where state farms had prevailed in the past, i.e.
the north and the north-east of Poland. It should be stressed that despite significant
differences in the unemployment level and the income level between regions, economic
migration remains in trace quantities only.
At the end of the 90-ies the following unfavourable features of the unemployment
structure were taking root:
•
unemployment among young people,
•
high share of people with a low education level in the population of the unemployed,
•
high share of women in the total number of the unemployed,
•
long-lasting unemployment,
•
high unemployment among inhabitants of rural areas.
The first four features listed above are characteristic for rural areas as well. These
phenomena prove that at the end of the 90-ies the problem of high unemployment in rural
areas was not only of the economic nature, but of social as well.
In rural areas, the level of unemployment was adversely correlated with the inhabitants’
age. The unemployment hit young people worst – the rate of unemployment in the
population of people aged up to 34 was higher than the national rate of unemployment.
7
The National Strategy for Growth of Employment and Human Resources Development for the
Years 2000 – 2006, a document adopted by the Council of Ministers on 4.01.2000, p. 24.
65
Figure 3.
Rate of unemployment in rural areas by the age of the unemployed
as of the end of 1999
40,0%
35,0%
30,0%
25,0%
average unemployment rate in
rural areas
20,0%
15,0%
10,0%
5,0%
0,0%
15-19
20-24
25-29
30-34
35-44
45-54
55 and
more
Source: data published by GUS
At the end of the 90-ies the unemployment was a very serious social and economic
problem, but it should be stressed that a further growth of the number of the unemployed
was expected. When RDP was being planned, the competitiveness of the Polish farming
sector was very low on the background of other European countries. It was expected that
in the years to come, prior to Poland’s accession to EU, restructuring activities would be
effected in agriculture, to adjust the Polish country to the more intensive competition. The
drain of labour force from farming was one of the forecasted consequences of the
reforms that were planned.
To sum it up, at the moment when Component A was planned and commenced, there
was a serious problem of unemployment in the rural areas of Poland, the problem which
was to deepen further.
Causes of problems
It is hard to indicate one cause of the high level of unemployment in rural areas – this was
a complex problem at the end of the 90-ies and it remains such now. The following key
causes can be named8:
•
collapse of state farms (PGR) that provided job to many inhabitants of the country;
•
strongly partitioned land property, high share of small farms;
•
relatively low level of farms’ technical equipment;
•
population’s low economic and social activity; a significant degree of acceptance of
the situation;
8
See: T. Hunek (editor.), Rolnicza Polska wobec wyzwań współczesności, IRWiR PAN, Warszawa
2002.
66
•
low mobility of rural dwellers;
•
low level of education and qualifications, often insufficient to take up any off-farm job
(both in the form of hired labour or self-employment);
•
weakness of institutions and organisations supporting rural areas development,
including local administration;
•
insufficient development of technical, social and cultural infrastructure which sets
barriers to establishing new businesses;
•
low level of rural dwellers’ income restricting the demand for non-agriculture goods
and services offered by new businesses.
Component Rationale Evaluation
Bearing in mind the scale of unemployment in rural areas, it seems that there it was
impossible to solve the problem within the prospect of a few years. Due to overemployment in agriculture, locating off-farming businesses in rural areas was the main
opportunity to absorb some of the unemployed there. The Common Farming Census of
2002 showed that farmers undertook off-farming activity in retailing and wholesale first of
all (19.5% of farms running non-farming activity), in industrial processing (17.8%),
building sector (5.1%), transport and storing (4.8%)9. The rural dwellers low mobility
eliminated economic migration to cities in practice.
Diversification of business activity in rural areas was determined by:
•
the number of investors, sector-related first of all, commencing or developing such
activity
•
the number of people deciding to take up their own business activity.
Activities of Component A focussed on stimulating the second of the above factors.
Meanwhile, the economic situation in the country began worsening in 2000, bearing an
adverse effect on activity of both sector investors and candidates for business people as
well.
Selection of Regions for Component Implementation
When selecting regions to be covered by Component A, four basic criteria were used: (i)
high unemployment rates in rural areas, (ii) high share of households with state
agriculture as main source of income in 1988, (iii) high number of employed in state
agriculture as a percentage of total population working in agriculture in 1988 and (iv)
state-used land as a percentage of total agricultural land in 1988. We consider these
criteria to be correct.
Additionally, we have analysed the selected voivodships against the background of the
national average, using supplementary indicators as of 1999.
9
A. Ciołkosz, Charakterystyka rolniczej przestrzeni produkcyjnej Polski, GUS Warszawa 2003.
67
Table 4.
Comparison of voivodships selected for Component A with the
national average, as of 1999
Item
Voivodships
1
2
3
4
5
National
average
Share of rural dwellers in the
total population
37.7%
49.6%
58.9%
39.9%
30.7%
38.2%
Rate of unemployment
16.9%
10.2%
14.5%
22.4%
18.1%
13.1%
GNP / 1 inhabitant (current
prices, PLN)
14 121
14 231
11 685
12 341
15 924
15 914
Share of population with
primary, incomplete primary
education, or no education at
all
41.2%
38.0%
42.2%
46.1%
40.2%
40.0%
Share of people employed in
agriculture, hunting and
forestry
26.1%
34.2%
45.7%
24.7%
14.6%
27.5%
1 – Kujawsko-Pomorskie, 2 – Małopolskie, 3 – Podkarpackie, 4 – Warmińsko-Mazurskie, 5 –
Zachodniopomorskie
Source: Statistical Yearbook, GUS, Warsaw 2000, Statistical Yearbook for Voivodships, GUS,
Warsaw 2001
Among the selected voivodships, least favourable values of indicators accepted for the
analysis were found in Podkarpackie and Warmińsko-Mazurskie. In case of the remaining
regions, the indicators are more positive, but still slightly lower than the national average
in most cases. Additionally, taking into account that until the end of the 80-ies, state
agriculture had been strongly developed in these voivodships, we consider the selection
of regions for Component A as correct.
1.1.2
Evaluation of Component A Objectives and Activities
Evaluation of Component Objectives
According to the Operational Instruction adopted in 200010, the objective of Component A
was to assist the Government in promoting micro-enterprises to create and maintain selfemployment in rural areas. The Component was expected to promote off-farming selfemployment in rural gminas of five voivodships.
The objectives set for the Component added to achievement of one of three objectives of
the Program: increasing off-farming employment.
10
68
Operational Instruction, Warsaw 9.03.2000, p. 14.
Project objectives
Figure 4.
Component A objectives and activities in the context of RDP
objectives
Comp. objective
Increasing off-farming
employment
Supporting the process of
strengthening self-government
and regional development
Assistance in building institutional
potential necessary to obtain
EU pre-accession and structural
funds
Component
activities
Assisting the Government in promoting SMEs
to create and maintain self-employment
in rural areas
Micro-credits
Subsidies
Technical assistance and training
of service providers
Considering the scale and the nature of the problem of unemployment in rural areas, it
seems that the objective set for the Component is the right response to the problem. The
objective covers one of the methods to activate off-farming activity in rural areas –
establishing new micro-businesses.
It is worth stressing that this involves twofold effect:
•
economic – through creation and development of off-farming enterprises;
•
social – through promoting activity and hence transforming the rural dwellers’
mentality.
Evaluation of Component Activities Relevance in Terms of Secondary Data
The Component objective achievement was supported by three groups of activities:
•
providing micro-credits amounting to USD 5000 (an equivalent in PLN);
•
providing one-time grants for purchasing equipment, up to PLN 3600;
•
providing advisory services and training to micro-entrepreneurs.
The problem of financing (micro-credits and grants)
There is no doubt that the limited access to business financing was one of the main
barriers to establishment and development of small enterprises in Poland at the end of
the 90-ies. This problem concerned rural areas in particular. Most often, any fund that
were available (bank loans) involved the necessity to tide over complicated procedures
and thereafter to meet rigorous formal requirements. Persons initiating business activity
and small companies with no loan history faced biggest problems with obtaining any
external financing.11 It should be added that in most cases the value of rural property
11
See: report titled Realizacja zaleceń Jednostki Zadaniowej ds. Uproszczenia Otoczenia Biznesu
(BEST), Raport - Rzeczpospolita Polska, Warszawa 2001, p. 21.
69
Components was insufficient to serve as a collateral. Besides, financial institutions were
not much interested in financing small entities, due to their significant fixed costs of small
loans and credits maintenance. On the other hand, leasing services satisfied a part of
micro-enterprises’ needs only.
With the purpose of improving accessibility of external sources of financing to SMEs,
collateral funds had been established since 1994. The National Fund for Loan Collateral
of BGK (National Economy Bank – Bank Gospodarstwa Krajowego) had the broadest
geographical range. Additionally, a dozen or more local funds and two regional funds
operated in Poland in the year 2000. Local funds were established under the Regional
Initiative Program, their capitals being financed from Phare funds to a high degree. The
territorial coverage of local funds was usually limited to one or a few several gminas,
often situated in rural areas. On the other hand, regional funds were set up as a result of
the Polish-British Program for Supporting Entrepreneurship and were financed by the
British government. 12
There was a number of micro-credit organisations in Poland at the end of the 90-ies, e.g.
Fundusz Mikro, FDPA, FWW, Inicjatywa Mikro, Fundusze Rozwoju Przedsiębiorczości.
But according to analyses carried out by the Foundation of Social and Economic
Analyses Centre (Fundacja Centrum Analiz Społeczno Ekonomicznych) in 2001, the
sector of loan organisations involved the total amount of PLN 200-250 million only in its
activity13. One should take into consideration additionally that the major part if this amount
– low, considering the needs – was distributed within urbanised areas.
Since the beginning of the 90-ies, a project titled “Active Programs for the Labour Market
Financed from the Labour Fund” has been implemented. Various instruments were used
under this project, including loans for the unemployed to launch a business.14
Since 2000, the European Fund for Rural Development in Poland, Counterpart Fund
commenced implementing a project titled “Micro-loans for Off-farming Business Activity in
Rural Areas”. Young people and less wealthy inhabitants of rural areas in ten voivodships
were target groups of the Program. This was a pilot project and it was implemented in cooperation with selected co-operative banks. 15
According to analyses carried out at the turn of the XX and the XXI centuries, more than
82% of small enterprises declared that they did not intend to use any non-commercial
sources of financing.16 This resulted partly from the fact that relatively modest funds were
involved considering the needs and that a number of barriers existed on the part of rural
dwellers. The most significant of them included:
•
a barrier of lacking knowledge of financing sources;
•
a mental barrier – the reluctance to go into debts;
•
a barrier of geographical accessibility.
12
Polska Fundacja Promocji i Rozwoju Małych i Średnich Przedsiębiorstw: Finansowanie Rozwoju
małych i średnich przedsiębiorstw, wrzesień-listopad 2000, p. 51 and further.
13
Editor: E. Balcerowicz, Mikroprzedsiębiorstwa – sytuacja ekonomiczna, finansowanie,
właściciele, CASE, Warszawa 2002, p. 154.
14
Ibidem, p. 199.
15
Ibidem, p. 193.
16
Raport o stanie sektora małych i średnich przedsiębiorstw w Polsce w latach 1999-2000, PARP,
Warszawa 2001, p. 272.
70
Using the sources of financing referred to above was connected with a problem of
knowing and recognising small entrepreneurship support organisations. According to the
aforementioned research projects, more than 60% of entrepreneurs did not know any
small business support organisation.17
The rural dwellers’ reluctance to go into debts (mental barrier) was a significant constraint
to financing small business. During the survey carried out for the purpose of the present
RDP appraisal, 69.7% of respondents who intended to launch their own business
declared that they did not intend to use any loans or credits within a year. At the same
time, 80.8% of them need funds to launch a business.
The barrier of geographical accessibility resulted from the fact that units supporting
beneficiaries had been located in larger places first of all. Mobile employees visiting
beneficiaries at their places of residence were not often used.
The SME sector’s difficulties with access to sources of financing were confirmed by a
research carried out by the Ministry of Economy in the year 1999 on a national sample of
small and medium-sized enterprises. The research showed that only 16% of SME-sector
companies financed their activity with loans on a regular basis. This group included
medium-sized entities first of all.18
On the other hand, analyses of the Foundation for Education and Scientific Research of
the Marketing Analyses Centre Indicator carried out in the year 2000 showed, that small
enterprises and micro-enterprises used bank loans seldom – only 25% of companies
used loans – mainly in PLN and contracted occasionally. Most of the companies covered
by the research relied on their own funds (90%) and family loans (35%). Such sources as
leasing and other, e.g. loans from assistance funds (10% and 7% respectively) were used
very seldom.19
To sum it up, there is no doubt that the access to financing is one of conditions of
creating and developing business activity in rural areas. Since mid-90ies a number of
instruments and institutions supporting people who launch their own business have
emerged. It should be stressed however that these activities concentrated in urban areas
to a high degree. We therefore consider the micro-crediting and granting activities under
Component A as relevant to beneficiaries’ real needs.
The problem of education (advisory services and training)
Lacking knowledge of accountancy and tax regulations or how to run a business is one of
important constraints to small entrepreneurship development in rural areas. As it has
already been indicated earlier, this applies also to potential sources of financing.
It should be stressed however that it is not information about sophisticated mechanisms
of financing that potential beneficiaries lack, but the elementary knowledge from the field
of economy and management. Rural dwellers’ low level of education was and still is one
of the reasons behind this state of affairs. In the middle of the 90-ies, only 1.9% of rural
areas population had a university background ( 9.8 % in cities).
17
Ibidem.
Questionnaire survey of the Ministry of Economy: SME’s Economic Situation in the Opinion of
Entrepreneurs” conducted in September 1998, June 1999, January 2000.
19
Survey of the Foundation for Education and Scientific Research of the Marketing Studies Centre
– Indicator, September 2000.
18
71
Figure 5.
Education of the population of rural and urban areas in 1995
university
post-secondary
secondary general
secodary technical and vocational
primary
incomplete
0,0%
10,0% 20,0% 30,0% 40,0% 50,0%
rural
urban
Source: Statistical Yearbook, GUS, Warsaw 2000
In order to provide support to SME sector, including rural areas, in the field of advisory,
training afnd information services, a network named Krajowy System Usług (National
System of Services) was established in 1996. The network has comprised more than a
hundred regional and local units supporting small and medium sized enterprises. 20
Under another initiative, by the year 2000, 61 Entrepreneurship Support Centres, 34
Entrepreneurship Development Funds and 31 Entrepreneurship Incubators had been set
up in Poland21. These institutions’ tasks included providing training and advisory services
to candidates for entrepreneurs and for small entrepreneurs operating on the market.
There is no doubt that lack of knowledge in the field of economy and management is one
of key barriers to development of entrepreneurship in rural areas. In the 90-ies activities
intended to minimise this barriers were taken up, one should bear in mind however that
the fight with the problem is of a long-term nature. In our opinion, the advisory and
training activities proposed under the Component are adequate to beneficiaries’ needs.
Additionally, these services constitute a good supplement to micro-crediting and granting
activities.
Evaluation of Component Activities Relevance in the Light of Survey of Potential
Beneficiaries
The maximum amount available under a micro-loan and a grant covered the needs of a
major part of beneficiaries. Financial needs of more than a half of respondents remained
within the limits of amount offered under Component A (5 thousand dollars). 59.6% of
respondents indicated amounts within the limit of PLN 25 thousand. It is worth noting at
the same time however that some of the beneficiaries had bigger financial needs.
20
Polska Fundacja Promocji i Rozwoju Małych i Średnich Przedsiębiorstw: Finansowanie rozwoju
małych i średnich przedsiębiorstw, wrzesień-listopad 2000, p. 14.
21
Ibidem, p. 8.
72
Figure 6.
Financial needs of loan program potential beneficiaries
up to PLN 5 thou.
8,9%
more than PLN 5 thou., up to PLN 10 thou.
23,8%
26,8%
19,6%
11,1%
5,1%
more than PLN 100 thou.
4,7%
do not know
0,0%
10,0%
20,0%
30,0%
Source: consultant’s own analyses
As the analysis of the project beneficiaries’ needs shows, their needs differ only to a
minimum degree only from the structure of loans contracted by average micro-companies
on the banking market, where a demand for loans up to PLN 25 thousand prevails too.
Figure 7.
Value of loans contracted by micro-enterprises
56%
up to PLN 25 thou.
29%
PLN 26 – 50 thou.
9%
PLN 51 – 100 thou.
more than PLN 100 thou.
0%
6%
10%
20%
30%
40%
50%
60%
Source: BPS report „FIRMY MIKRO 2004”
Namely such a structure of needs for financing results from the structure of microenterprises’ investments first of all. According to data published by GUS for the year
2003, as much as some 42% of companies making investment outlays (about 13% of all
micro-enterprises) made outlays amounting to PLN 5000 thousand, while only 7% made
outlays that exceeded PLN 100 thousand. Hence, the limits set on loans granted under
Component A, where more than a half of credits allowed remained within the limit up to
PLN 12000, should be regarded as pertinent.
The potential beneficiaries were expecting a very low rate of interest – as much as 79.1%
of respondents indicated 3% as the maximum acceptable interest. However, one may
presume on the basis of RDP outcomes and on the basis of information from the
commercial banking market on the other hand, that some of these persons would be able
to accept a higher interest rate.
73
During the survey, the potential beneficiaries indicated aspects of obtaining a micro-loan
that were relevant from their point of view.
Figure 8.
Potential beneficiaries’ rating of the relevance of selected aspects of
obtaining a micro-loan
atractive rate of interest
loan disbursement timing
prompt analysis of documents
flexible terms of repayment
free of charge assistance in applying
little amount of documents required
high micro-loan/ grant amount
facility of filling the application
0,0%
20,0% 40,0% 60,0% 80,0% 100,0%
very important
important
The analysis enables one to conclude that such aspects as: attractive interest rate, timing
of the loan disbursement and prompt analysis of documents are most important for the
beneficiaries. The above factors were given 80% of indications as very important each.
Evaluation of Component Activities Relevance in Terms of Beneficiaries Survey
Beneficiaries formulated very positive opinions about the Component. The utility of
financing in the form of micro-loans and grants combined with advisory services was
given positive marks by 98.7% of respondents, 73.7% out of this group giving a very good
mark.
74
Figure 9.
Utility of the form of financing applied under Component A
100,0%
90,0%
80,0%
70,0%
60,0%
50,0%
40,0%
30,0%
20,0%
10,0%
0,0%
1 graduate
very good
good
2 unemployed
rather good
3 farmer
rather bad
4 self-employed
business
person
bad
very bad
Opinions on the form of financing do not differ much in particular groups of beneficiaries.
The very good reception of the Component is a product of Component marks:
•
micro-loan amount – 82.7% of positive marks, 28.0% out of them being very good;
•
grant amount – 66.3% of positive marks, 24.0% out of them being very good;
•
interest on micro-loans – 93.0% of positive marks, 40.7% out of them being very
good;
•
facility of filling the application – 93.0% of positive marks, 39.3% out of them being
very good;
•
facility of collecting the required documents – 91.0% of positive marks, 37.3% out of
them being very good;
•
time of documents analysis – 86.0% of positive marks, 31.7% out of them being very
good;
•
time from the positive decision to disbursement – 86.3% of positive marks, 37.3% out
of them being very good;
•
creditor’s flexibility towards terms of repayment – 88.0% of positive marks, 33.3% out
of them being very good.
It should be noted that the group of very positively received factors included also those of
a key importance for the potential beneficiaries, i.e. attractive interest rate, payment
timing and prompt analysis of documents.
75
During in-depth interviews, the beneficiaries and loan advisers stated that the services
provided under the Component were sufficient.
Very few respondents referred to any problems encountered when obtaining a micro-loan
or a grant (10.7% of respondents). The group of main problems included: the need to
collect many documents (4.3% of respondents), long time of response to application
(4.0%), too little funds to be obtained (2.7%).
Few persons came for additional consultations to a loan adviser, except for assistance in
filling and submitting the applications (21.3% of the respondents).
97.0% of the respondents gave a positive answer to a question if they would participate in
a similar RDP Loan Program in the future and this fact provides evidence that the
Component fitted beneficiaries’ needs well.
Participation Evaluation
Component A was addressed to inhabitants of rural areas planning to launch an offfarming business and to existing micro-enterprises employing up to 5 people. The
Component area covered rural gminas, rural-urban gminas and towns with a population
of up to 20 thousand. Initially, the Program embraced three social groups (farmers
running farms up to 10 hectares, micro-entrepreneurs, registered unemployed). In March
2002 a decision was made to extend the Project on graduates of middle schools and
secondary schools.
Figure 10.
Beneficiaries of grants and micro-credits
Graduates
Farmers
Micro-entrepreneurs
Registered
unemployed
0
500
Grant beneficiaries
1000
1500
2000
2500
3000
Micro-credit beneficiaries
Source: Final report of RDP A - " Micro-loans ", BGK
Criteria used for selecting beneficiaries enabled access to the Component to a wide
group of people and this should be regarded as positive. The fact that farmers running
small farms were included in the Project is conducive to concentration of farms and this is
an advantageous tendency, considering how broken up the farming land is. The fact that
people who had already been running their business were invited to the Project made it
possible to maintain the existing entrepreneurship, but on the other hand it might cause
that as a result of the Component, the existing jobs would be protected and no new jobs
would be created. The fact of extending the target group of the Project on graduates
gives evidence to appreciation of the problem of young people’s unemployment in rural
areas.
76
We are estimating the number of potential beneficiaries at some 1 million people in 5
voivodships covered by Component A (data for the year 1999):
•
the unemployed – about 0.4 million people,
•
graduates of secondary and post-secondary schools – about 0.05 million people 22,
•
farmers running farms up to 10 hectare – about 0.5 million people,
•
micro-entrepreneurs – 0.04 million people 23.
The group of Component A beneficiaries amounted to 4655 people24, with the following
breakdown into regions:
•
Małopolskie – 1060 people;
•
Zachodniopomorskie – 610 people;
•
Warmińsko-Mazurskie – 853 people;
•
Kujawsko-Pomorskie – 976 people;
•
Podkarpackie – 1156 people,
i.e. less than 1% of the target group. This means that the scale of the Project was
insufficient to solve the problem of unemployment. Nevertheless, according to the RDP
authors’ intentions, the Component was supposed to be a pilot project and it was not its
objective to solve the problem of unemployment in rural areas.
It is not surprising that most beneficiaries of the Component were from the smallest, but
the most resilient group of potential beneficiaries – micro-entrepreneurs. About 6% of
potential credit receivers – micro-enterprises operating in the area covered by the Project
– participated in the Project. In practice, no school graduates joined the Project – less
than 1.0% of potential beneficiaries.
Component Beneficiaries
The fact that people commencing their business activity prevailed among beneficiaries of
micro-loans should be regarded as very positive. This means that activities of the
Component contributed to creating new enterprises first of all, instead of to supporting the
existing ones.
22
The number of graduates in rural areas and in cities up to 20 thou. inhabitants is not available.
According to statistics published by GUS, the total number of secondary, technical, vocational and
post-secondary schools graduates amounted to 179.2 thousand in 1999 on the territory of five
regions covered by Component A. It has been assumed for the purpose of the present study that
about 50 thousand persons from this group lived in areas covered by the Component.
23
Available data quoting the number of micro-enterprises are not broken down into cities and rural
areas. Experts agree that the vast majority of business entities from this group is localised in
strongly urbanised areas. (see:. ed. E. Balcerowicz, Mikroprzedsiębiorstwa – sytuacja
ekonomiczna, finansowanie, właściciele, CASE, Warszawa 2002, p. 51). It has been assumed for
the purpose of the present report, that 10% of all micro-enterprises are situated in rural areas.
24
It was possible for a beneficiary to be granted more than one micro-credit under the Project, but
no situation like this occurred. Consequently, the number of beneficiaries equals the number of
micro-credits that were allowed (4655).
77
Figure 11.
Number of micro-loan beneficiaries in a breakdown by gender and
years of running a business activity
2000
1500
1000
500
0
Women
Men
Entrepreneurs starting business activity (including those running
a business not longer than 12 months)
Entrepreneurs continuing their activity
Source: Final Report of RDP A - " Micro-loans ", BGK
Such a high participation of people commencing their business activity in the Component
resulted from additional preference given to this group – a non-repayable grant.
Women constituted a significant part of the beneficiaries (43%). We consider this to be a
very positive fact, regarding the high share of women in the structure of unemployed in
rural areas.
Figure 12.
Share of women in the structure of beneficiaries of selected loan
projects
80%
61%
60%
48%
43%
42%
40%
RDP
Fundusz mikro
(Poland)
Inicjatywa mikro
(Poland)
40%
20%
0%
10 selected
micro-loan
institutions
12 micro-loan
institutions in
Eastern European
countries
Source: base of DORADCA Consultants Ltd.
As the diagram presented above shows, the proportion of women in RDP is minimally
higher than in other similar projects implemented in Poland and intended to support
micro-businesses. On the other hand, the higher share of women in foreign projects
results from the fact that supporting women’s entrepreneurship is often the main objective
of these projects.
78
The high unemployment of young people is one of important problems in rural areas.
Component activities reached this group of people only partly. The group of people aged
up to 25 had a very small representation in the Component (14.8%). The participation of
the next age group was much more significant – persons aged from 25 to 35 accounted
for 32.4% of the beneficiaries.
Other age groups had much lower shares in the Component. It is not surprising that the
group of people aged above 55 was the least numerous (4.8 %).
Figure 13.
Age of micro-loan beneficiaries
1000
800
600
400
200
0
up to 25 yrs
25 - 35 yrs
36 - 45 yrs
Women
46 - 55 yrs
above 55 yrs
Men
Source: Final Report of RDP A - " Micro-loans ", BGK
It is comforting that most of the beneficiaries were from rural areas, i.e. from places
where:
•
it was more difficult to get an off-farm job,
•
it is more difficult to obtain financing for launching a business than in cities.
Table 5.
Number of micro-loan and grant beneficiaries
Place of residence of loan and
one-time grant beneficiaries
Mikro-loans
Grants
Town up to 20 thous. inhabitants
1692
851
Countryside
2963
2093
Source: Final Report of RDP A - "Micro-loans", BGK
Targeting Evaluation
Component A fitted well the State’s policy in the field of rural areas which had been
expressed in the following government documents:
•
Mid-Term Strategy for Agriculture and Rural Areas Development (1998);
•
Treaty for Agriculture and Rural Areas (1999);
79
•
Cohesive Structural Policy for Rural Areas and Agriculture Development (1999).25
The Component objective was consistent with the Government’s efforts to reduce the
unemployment in rural areas and to diversify sources of rural dwellers’ income by the
means of developing off-farm jobs.
1.1.3
Situation prior to and after Implementation of Component A
Effectiveness Evaluation
Achievement of Component and Program Objectives
According to the assumptions, the objective of Component A was to support the
Government’s activities in promoting small enterprises to create and maintain selfemployment opportunities in rural areas. The objective was expected to lead to
achievement of one of three objectives of the whole Program: increasing off-farming
employment in rural areas.
For the purpose of monitoring implementation of the Component, output indicators had
been set together with the expected performance indicators in the Program Appraisal
Document. All of the indicators that had been planned were exceeded. The number of
micro-loans and grants allowed exceeded the plan by 72% and 96% respectively. The
group of advisory services beneficiaries was larger by 133% than planned. It seems that
such good quantitative results were achieved due to creating 6 times more micro-loan
provider outlets than planned, these outlets having additionally the nature of mobile loan
advisers.
Table 6.
Component A objectives – plan and performance
Output indicators
Plan
Performance
Engagement of at least one service provider
1
2
Establishment of at least 4 service provider outlets in the
rural areas of the selected voivodships
4
24
Disbursement of 2,700 micro-loans to previously
unemployed and micro rural entrepreneurs
2700
4655
Disbursement of 1,500 grants to eligible beneficiaries
1500
2944
Advisory services delivered to at least 2,000 beneficiaries
2000
4655
Service Provider Subsidy Dependence Index that has
decreased every quarter and with a value less than 80%
after two years of operations for each participating service
provider
<80%
FWW – 16,1%
FDPA – 45,9%
Source: PAD, p. 43, 54, Final Report of RDP A - "Micro-loans", BGK
Activities performed under the Component were expected to contribute to creating new
off-farming jobs. At the stage of applying, the beneficiaries quoted the number of new
jobs in their applications – both those resulting from self-employment and from employing
hired personnel as well. According to these declarations, 4788 jobs should have been
created.
25
“Cohesive Structural Policy for Rural Areas and Agriculture Development” accepted by the
Council of Ministers in 1999 indicates the necessity of incresing off-farming employment in rural
areas.
80
After the loan allowing stage was closed, loan agents verified data quoted in the
applications in the period from May to October 2004. The real number of new jobs
created under Component A amounted to 2941.
Figure 14.
Comparison of instruments used under Component A with the
number of jobs created
Number of jobs created
(verified data)
Nu,ber of jobs created
(data from applications)
Number of grants
Number of micro-loans
0
1000 2000 3000 4000 5000 6000
The number of declared jobs exceeded the number of micro-loans to a minimum (4788
against 4655), but the number of jobs that were created in reality accounted for 61% of
those declared. This means that one micro-loan generated 0.63 of a job. It is worth noting
that the number of jobs was close to the number of grants (2941 against 2944).
Questionnaire surveys of beneficiaries carried out within the present evaluation show that
since March 2005 only 7.3% did not survive. This means that in some cases of microloans the declared employment did not take place or employees were dismissed after
some time. One can not preclude a situation where some beneficiaries declared a too
optimistic employment level to enhance their chance for being allowed a micro-loan.
Some doubts can be noted as far as definition of a new job is concerned. This is
connected with participation of persons launching a business in the Component.
According to the terminology accepted for the purpose of RDP, a new entrepreneur is a
person who launches a business as a result of participation in the Component or who
launched an activity like this not earlier than 12 months prior to participation in the
Component. This means that some of micro-enterprises that have been classified as
established as a result of the Component, were set up to one year earlier, irrespective of
participation in RDP. The same comment applies to some of the new jobs.
Supporting the process of building the institutional capacity necessary to obtain EU preaccession support and structural funds was one of the three overall objectives of RDP.
The interviews conducted with representatives of implementing institutions – the Rural
Development Foundation and the Foundation for the Development of Polish Agriculture –
show that participation in RDP enabled both institutions to increase their competence in
large projects management. But participation in the Project did not result in any
considerable know-how extension in the field of micro-credits. Both organisations had
already had much relevant experience before RDP was launched.
81
To sum it up, in our opinion the objective of Component A has been achieved. All of
the key performance indicators have been exceeded. At the same time, the activities
contributed to achievement of Program general objectives. Micro-loans and grants
combined with advisory services resulted in increasing the off-farming employment in
rural areas by nearly 3 thousand jobs. To a lesser degree did the activities support
building the institutional potential necessary to obtain EU funds (the third general
objective of RPD) – through development of Component performers.
Reservation: the present paragraph does not include any comparison of voivodships
participating in Component A with remaining regions in order to identify the Component
effects. This has not been taken up due to the too small scale of Component A effect,
which is too difficult or impossible to capture.
1.2.1
Program Costs and other Outlays Identification and Measuring
The cost of Component A implementation comprised direct costs and additional costs
incurred by the beneficiaries.
Direct costs
The budget allocated to Component A was one of the smallest items in the entire RDP
budget (about 6% of the whole budget) and it was higher from the budget of SubComponent B3 only.
The costs of Component A implementation turned out to be lower than assumed. The
difference between the performance and the plan resulted from – among other factors –
changes in USD rate of exchange. The costs had been planned with the USD rate of
exchange of PLN 4.27. Meanwhile, when activities were being performed, the rate of
exchange went down much (the average rate in 2003: PLN 3.89 zł, the average rate in
2004 – PLN 3.65).
Table 7.
Budget of Component A
Plan
thous. USD
Item
Micro-loans
Grants
Administration
costs,
payment to performers
Total
training,
Plan
PLN thous.
Performance
PLN thous.
Performance
/ Plan
%
13 890
59 352
56 061
94%
2 900
12 726
10 593
83%
2 260
9 284
8 007
86%
19 050
81 362
74 661
92%
Source: PAD, p. 55, Monitoring table as of 31.03.2005, MIS base.
The share of administration costs, training and payment to performers accounted for
11.0% of the total budget value. An analysis of cost per single loan / grant shows about
300 USD. This level is comparable with operating costs of a loan provided to a microbusiness by commercial banks using traditional approach to credit capacity analysis.
Bearing in mind that under Component A the cost covers a wider area of activities
(including training), it should be stated as a fact that the efficiency of work under
82
Component A was higher than the efficiency of commercial banks offering loans to microcompanies.
About two/thirds of funds for implementation of activities analysed here were provided by
the World Bank. The plan and the performance of financing particular activities of the
Component were as follows:
•
World Bank – 75% of the amount of micro-loans, 100% of administration costs,
training, payments to performers;
•
Providers of services (FWW, FDPA) – 25% of the micro-loans amount;
•
The Polish Government – 100% of the grants amount.
Table 8.
Parties financing activities of Component A
Item
Performance
PLN thous.
Share in the
total amount
%
World Bank
50 053
67%
Polish Government
10 593
19%
Service providers
14 015
14%
Total
74 661
100%
Source: MIS base, Interim Report on Program Management no 17, PCU 2005
According to the latest data obtained from PCU directly (17.05.2005), the degree of the
World Bank’s loan absorption reached 99.9% of the planned level.
Additional costs
26.3% of the surveyed beneficiaries indicated additional costs related to receipt of microloans and grants. Firs of all such items were listed as: costs of travelling (73.4%),
additional dedicated time of work (39.2%). The beneficiaries were not able to estimate the
value of additional costs.
Project organisation
47.5 persons were involved directly in work under Component A, including 24 loan
advisers. The table below shows selected efficiency indicators of Component A
organisation against selected benchmarks.
83
Table 9.
Selected efficiency indicators of Component A organisation against
benchmarks
Benchmark
Selected 110 microcrediting institutions
12 micro-crediting
institutions in
Eastern European
countries
RDP
Loan receivers /
personnel
(quantity)
128
90
98,0
Loan receivers / loan
officers
(quantity)
308
171
194
(%)
44,7
54.8
50,2
Loan officers /
employees
The table above enables one to conclude that the administrational efficiency of the
Program represented a level which was to a minimum better that the average of
European micro-loan funds.
Considering organisation of crediting micro-enterprises in Polish banks, one may confirm
that Component A staffing was correct in terms of quantities.
1.2.2
Program Outputs and Outcomes Identification and Measurement
Outputs Generated by the Component
4655 micro-loans and 2944 grants amounting to the total of PLN 66 659.8 thousand were
allowed under Component A (micro-loans – PLN 56 061.4 thousand, grants – PLN 10
598.4 thousand). 5123 loan applications and 3045 grant applications were submitted.
The very low share of rejected applications – 9.1 % in case of micro-loans and 3.3 % in
case of grants – may suggest that the criteria used for allowing them were too liberal.
Nevertheless, this thesis is challenged by the low share of overdue loans (4.91%). One
should note additionally that only one loan was considered to be lost.
The number of training participants was equal to the number of micro-loan beneficiaries.
84
Figure 15.
Quantities of micro-loans and grants allowed by voivodships
1400
1200
1000
800
600
400
200
0
Podkarpackie
WarmińskoMazurskie
KujawskoPomorskie
quantity of micro-loans
Zachodniopom.
Małopolskie
quantity of grants
A half of micro-loans and grants was allowed in the area of two voivodships:
Podkarpackie and Małopolskie. Fewest micro-credits and grants were allowed in
Zachodniopomorskie voivodship– only 12.0% of the total number of micro-credits and
grants.
The average value of a micro-loan amounted to PLN 12 555. Micro-credits ranging from
PLN 6001 to 12000 prevailed (29.6%). It should be noted however that the values of
micro-loans were very much differentiated.
Table 10.
Quantity of micro-loans by loan amounts
Micro-loan amount
Quantity of micro-credits
allowed
up to PLN
6000
PLN 6001 12000
PLN 12001 18000
More than
PLN 18000
1085
1377
1287
906
A definite majority of grants was disbursed in the maximum amount of PLN 3600. In
some isolated cases the amounts paid were minimally higher.
Micro-loans and grants were supposed to be spent on running micro-businesses in
various off-farming sectors. Trade and services were most popular among the
beneficiaries (73.% of all micro-loans in total). Some persons launched or developed agritourist activity (17.1%) Few of the beneficiaries launched or developed off-farming
production (9.9%), which can be associated with the fact that this activity is more capitalintensive.
85
Figure 16.
Types of off-farming
contracted for
business
activities
micro-loans
were
1200
1000
800
600
400
200
0
Production
Services
Business launched
Agri-tourism
Trade
Business continued
Persons launching a business accounted for nearly two/thirds of the beneficiaries (65% of
micro-loans) – this was most visible in agri-tourism and least – in manufacturing.
Figure 17.
Types of business activity – RDP against the structure of microenterprises and against other micro-loan programs
100%
80%
Production
60%
Service
40%
Trade
20%
0%
Structure of
Polish
microenterprises
RDP
Micro Fund
Micro
Initiative
Source: Final Report of RDP A - "Micro-loans", BGK, base of DORADCA Consultants Ltd.
An analysis of the Component A beneficiaries by sectors indicates that this structure is
close to the structure of micro-enterprises activity all over Poland. It is worth stressing
that the share of beneficiaries running service activities is over-proportional against the
background of the structure of all micro-enterprises and the structure of beneficiaries of
other assistance programs (e.g. Micro Fund and Micro Initiative). Considering sectoral
structures of Western European countries and USA, namely services have the highest
growth potential in the Polish economy.
Funds obtained as micro-loans and spent on investment developments were most often
assigned for machines, devices and tools (30.8% of the respondents) and for a car
(20.5%). Besides, furniture was purchased relatively often (17.9%), renovation and
building works were carried out (16.4%). Grants were mainly spent on machines, devices
and tools (20.8% of the respondents), office equipment (19.0%) and furniture (19.0%).
86
For the sake of comparison, the structure of outlays made by micro-companies last year
is presented below.
Figure 18.
Structure of investment outlays made by micro-companies in 2004
4%
other developments *
purchase of complete
technological lines
1%
building new premises,
plants
5%
purchase of means
of transport
9%
purchase of single
machines and devices
11%
purchase of
computer software
12%
purchase of
computer hardware
13%
current renovations
and rebuilding
18%
0%
5%
10%
15%
20%
Source: BPS „Firmy Mikro 2004”
Funds from micro-loans assigned for purchasing current assets were mainly spent on
goods (46.7% of respondents) and building materials (26.7%).
Long-term micro-loans prevailed, this resulting mainly from the fact that monthly
repayment instalments were lower in this case. More than 75% of micro-loans were
contracted for a period longer than 2 years.
Table 11.
Quantity of micro-loans by the pay-back periods
Pay-back period
(months)
Quantity of micro-loans
allowed
Do 6
7-12
13-24
25-36
9
288
861
3497
Source: Final Report on RDP A - "Micro-loans", BGK
The average interest rate on a micro-loan was 6.26%, it should be noted however that in
case of 51% of micro-loans, the interest rate did not exceed 5.00%. Meanwhile, the cost
of commercial loans amounted from some eight, nine to a dozen or more percent.
The micro-loans allowed were of a high credit quality – few of them were overdue or lost;
the repayment indicator exceeded 91% in all categories.
87
The share of overdue loans accounts for 4.91% now and the share of bad debts is
0.02%.
When comparing the quality of RDP portfolio with the situation on the Polish banking
market (more than ten percent of bad debts) and with other loan institutions (the average
bad debt index for analysed institutions in the world is about 2.3% and in European
countries 3.9% respectively), one should stress that loan risk management was very
effective under RDP.
Table 12.
Micro-loans repayment rate
Repayment period in months
Micro-loan amount
(in PLN)
Up to 6
from 7 to 12
from 13 to 24
from 25 to 36
Up to 6000
100,0%
98,8%
96,2%
95,2%
6001-12000
100,0%
100,0%
91,9%
96,4%
12001-18000
100,0%
100,0%
92,1%
97,5%
More than 18000
100,0%
100,0%
93,7%
94,3%
Source: Final Report on RDP A - "Micro-loans", BGK
Specific outcomes
The beneficiaries, when asked about the effects of participation in the Component,
indicated the possibility of launching a business first of all and this is not surprising
considering the figures quoted earlier. In case of already existing entities, the assistance
enabled them to increase their sales and in consequence – profits.
Not many enterprises expanded the geographical coverage of their activity or
implemented new technologies due to micro-loans and grants. This can be associated
with the fact that funds available under the Component were relatively small.
In some exceptional cases the assistance saved businesses from liquidation of
bankruptcy.
Figure 19.
Outcomes of participation in Component A as seen by the surveyed
beneficiaries
Business saved from liquidation / bankruptcy
New technologies implemented
Territorial expansion
5,3%
7,7%
8,0%
New products launched
19,0%
Employment increased
19,7%
Profit increased
26,3%
Sales increased
30,7%
Business launched
0,0%
50,7%
20,0%
40,0%
60,0%
80,0%
100,0%
88
Not more than one/fifth of the beneficiaries increased the employment in their companies
as a result of being allowed a micro-loan and a grant. Most of them employed one (60.4%
of the beneficiaries increasing the employment) or two persons (26.4%). In few cases
only, the employment was increased by three or more persons (13.2%).
As far as the group of persons increasing the employment is concerned, men prevailed
(67.8%), as well as persons running a business before the Program commencement
(62.7%), trade businesses (43.8%), situated in mixed urban-rural gminas (59.3%).
Figure 20.
yes, negative
changes
occurred
2%
Changes in the financial, social or professional standing resulting
from participation in Component A, as seen by the surveyed
beneficiaries
do not know,
hard to say
6%
nothing has
changed
25%
yes, positive
changes
occurred
67%
Most of the respondents regarded the effect of the Component on their financial, social or
professional situation as positive. Most positive answers were recorded in WarmińskoMazurskie (80.7% of beneficiaries from this region), least – in Zachodniopomorskie –
55.6% respectively. The highest level of satisfaction was indicated by school graduates
(92.9% of positive answers), the lowest – by entrepreneurs (65.8% respectively).
The main objective of the Component had been to minimise the unemployment in rural
areas, but this does not mean that maintaining the existing employment in microcompanies was a less important effect of the Program. Unfortunately, there is no data
available to identify the number of people who lost their job in cases when they did not
participate in the Component.
1.3 Summary
1.3.1
Component A Cost / Benefit Analysis
Benefits
Quantifiable benefits achieved as a result of Component A activities include first of all
outcomes in the form of new jobs. These outcomes translate into economic benefits:
reduced amounts of unemployment benefits being paid, increased Budget income from
income taxes and turnover taxes.
The amount of new jobs declared by the beneficiaries in their applications amounted had
been 4788. Following verification, the real number of new jobs amounted to 2941 (61.4%
89
of what had been declared). The new jobs were taken up by various groups of
beneficiaries.
Figure 21.
Structure of new jobs created as a result of Component A activities,
as declared by the beneficiaries
Others
18%
Unemployed
38%
Entrepreneurs
5%
Graduates
2%
Farmers
37%
The appraisal of benefits resulting from creating jobs varies in particular groups. It is most
advantageous to employ the unemployed or school graduates as potential unemployed. It
is less beneficial to employ persons who are not provided for by the unemployed support
system and/or generate tax income for the State budget (the phenomenon of personnel
transfer within the existing jobs).
Table 13.
Comparison of budget benefits sources when creating new jobs for
various groups of beneficiaries
Source of benefits for the State
Budget
Unemployed, graduates
(40% of beneficiaries)
Farmers, other groups
(60% of beneficiaries)
Costs of State’s support to an
unemployed
√
-
Fiscal benefits resulting from an
unemployed person to take up a job
√
√
For the purpose of the Program, the annual cost for the Budget to support one
unemployed was calculated at PLN 2700 in 1997, while potential fiscal benefits at an
amount ranging from PLN 1,100 to 3,30026. The total financial benefits for the budget
resulting from unemployment reduction by one person ranged from PLN 3,800 to PLN
6,000 in the year 1997.
A new calculation of the above values has been made for the purpose of this evaluation,
on the basis of data of the year 2003 (see: details in paragraph 7.1 – Analysis of State
Budget’s financial benefits resulting from creation of new jobs). The annual cost of
supporting one unemployed person amounted to PLN 1,300, while fiscal benefits ranged
from PLN 3,300 to PLN 10,500. Thus, the total financial benefits for the budget resulting
from reduction of unemployment by one person ranged from PLN 4,600 to PLN 11,900 in
the year 2003.
26
90
PAD, p. 25-26.
We have estimated that so calculated annual benefits resulting from creation of new
jobs under Component A ranged from PLN 11.2 million to 32,5 milion, this amount
consisting of:
•
the group of unemployed and graduates (1176 people) – ranging from PLN 5,400
thousand to PLN 14,000 thousand (with reduction of costs of supporting the
unemployed and tax benefits taken into account)
•
other persons (1765 people) – ranging from PLN 5,800 thousand to PLN 18,500
thousand (with tax benefits taken into account)
Most probably, the level of income of persons taking up newly-created jobs was below
the average national salary, therefore the estimation of benefits at the lower limit of the
amount quoted above (PLN 11.2 million) is more realistic.
Moreover, the Component activities resulted in a number of less measurable effects that
are hard to convert into zloties. The following benefits were indicated most frequently in
interviews made with the Component beneficiaries and performers:
•
rural dwellers’ increased confidence in assistance funds;
•
micro-loans made popular among entrepreneurs and potential entrepreneurs.
For example, loan advisers stressed that many beneficiaries learned about the
Component from persons who had already benefited from RDP. Questionnaire surveys
confirm this thesis – 44% of the respondents learned about the Components from other
beneficiaries or from acquaintances.
Interview respondents indicated also that the number of potential beneficiaries reporting
was increasing as the Component implementation was proceeding. Although the
Component was closed last year, such persons happen to come even today.
The thesis about rural dwellers’ increased confidence in assistance funds can be
supported by the fact that 90% of the surveyed beneficiaries stated that they would
participate in a similar loan project in the future, should this be possible.
Costs
The group of costs incurred to gain the benefits quoted above includes27:
•
costs of grants: PLN 10.6 million;
•
costs of administration, training, payments to performers: PLN 8.0 million;
•
indirect costs incurred by the beneficiaries (costs of travelling, additional dedicated
time of work) are hard to estimate.
To sum it up, the total cost of Component A implementation amounted to some PLN
18.6 million.
27
The item of costs does not include micro-loans that were repayable. With regard to the credit
portfolio very high quality, we do not add the forecasted value of lost micro-loans to costs either. To
make the account simpler, the difference between commercial rate of interest on loans and the real
interest on micro-loans has been disregarded.
91
Comparison of costs to benefits
The cost of PLN 18.6 million made it possible to gain annual benefits of about PLN 11.2
million. Such investment’s payback period is very short – it is about one year and a half.
According to the Monitoring Table, the cost of creating one job amounted to PLN 10,169
(around USD 3,000) and this value was much lower than estimations accepted in the
Project Appraisal Document (around USD 5,000)28.
Nevertheless, comparing net effects of the given project in absolute values against
programs from other countries is made difficult due to differences in both the environment
in which the programs function (GNP per capita, income levels, economy
competitiveness, rate of unemployment, etc.) and objectives, scopes and target
beneficiaries of these programs. This thesis can be supported with the following
examples:
•
Grant Fund Component under PHARE-STRUDER PL9207 Program – implemented
in the years from 1993 to 1999 – the cost of 1 declared job amounted to some EUR
3.5 thousand.
•
According to Business Development Funds (USA) program guidelines, the grants
allowed in the amount of USD 11.8 million are expected to result in saving / creating
about 39 000 jobs and about 1000 enterprises, meaning that the cost of co-financing
per one employed is around USD 303 and per one company – USD 11.8 thousand.
•
In the 90-ies MBLP was implemented in Zimbabwe. The project involved matching
micro-companies with large receivers on the one hand and assistance to small
companies to adapt to large receivers’ requirements on the other hand. As a result,
about 110 new enterprises were established and after few years their employment
amounted to some 1000 employees. This employment was achieved at a relatively
low level of outlays – around USD 1350 per one enterprise, i.e. USD 150 per one
person.
1.3.2
Long-term Impact of Component A
It is very difficult to identify the long-term impact of Component A, as not much time has
passed since the activities were completed – the last micro-loans were allowed in
September 2004.
It is worth stressing however that the questionnaire survey of Component beneficiaries
shows that beneficiaries ceased business activity in 7.4% of cases only. This is a highly
satisfactory outcome, particularly when compared with the assumed indicator of
enterprises survival rate. According to the Project Appraisal Document, the Component
activities would be regarded as cost-effective if more than 59% of micro-businesses
survived after two years from launching.29
1.3.3
Component A Activities
Implementation of Component A commenced with signing a contract for Component
implementation with the National Economy Bank (BGK) in April 2001. BGK signed also
28
29
92
PAD, p. 23.
PAD, p. 23.
an agreement with the VPIU. Thereafter, a procedure of selecting consultants – technical
assistance providers was initiated. In April 2001 some delays occurred due to problems
with selecting service providers whose tasks were expected to include: micro-loans and
grants disbursement, providing training and advisory services. Absence of foreign
subjects’ interest in providing such services (whose participation was initially required by
the World Bank) was one of the causes of delays. Hence, the process of selecting a
provider of services was protracted. Eventually, two subjects participated in the tender
procedure. When financial proposals were opened in February 2002, it turned out that
they were much above the budgets envisaged for the task. Thus, it was necessary to run
additional negotiations to reduce service providers’ costs and this caused another delay
in Component implementation. The service contract was signed as late as in October
2002. The first applications for micro-loans were submitted in December 2002.
Disbursement of micro-loans began in January 2003 and of grants – in February 2003.
Figure 22.
Basic tasks of Component A – implementation timing
Source: Consultant’s own analyses based on Interim Reports of Program Management, PCU
The contract for technical assistance and training activities was signed with Facet BV – a
consulting company – in December 2001. Technical assistance, which initially consisted
in developing and implementing an evaluation and monitoring system, began in January
2002. In March 2002 Facet BV conducted training on micro-loans for implementing
institutions. The same month, a decision was made to include graduates of middle
schools (gimnazja) and secondary schools in the Program. The next training conducted
by Facet BV was dedicated to operating the micro-lending process monitoring system –
PROMES. In May 2002, the eligibility criteria were changed (inhabitants of cities up to 20
thousand and owners of farms up to 10 hectares were admitted to apply for micro-loans).
In the III and the IV quarter of 2002 Facet BV was continuing training activities and
conducted two study visits to Bosnia-Herzegovina and to Montenegro, where a highdeveloped market of micro-financing services exists. These visits were attended by
representatives of service providers, BGK and MoEL. To provide a maximum
effectiveness of micro-loans allowed under the Component, micro-loan advisers were
hired. The process of recruitment was finalised in March 2003. They were also trained by
Facet BV.
The process of allowing micro-loans and grants ended in September 2004 and a
summary conference was organised in the same month. The Foundations keep
monitoring loan beneficiaries through loan advisers.
93
Beneficiaries’ Assessment of Providers’ Activities
When responding the questionnaire survey, the beneficiaries were asked to assess the
work of loan advisers. The respondents gave very high marks to their advisers – only 4%
of beneficiaries gave them negative marks.
Figure 23.
Beneficiaries’ Assessment of loan advisers’ work
Very bad
1%
Rather bad
2%
Bad
Rather good
1%
5%
Good
28%
Very good
63%
The resultant average mark was composed of very good marks for advisers’ knowledge,
time efficiency, availability, commitment to client’s problems, individual approach to the
client, politeness. Advisers’ politeness was given highest marks (70% of very good
marks), time efficiency – lowest (59% of very good marks).
Evaluation of Activities
1. The phase of Component start-up was much protracted – the first micro-loans were
disbursed more than a year and a half after the contract with BGK was signed.
2. At the beginning of Component implementation, significant, several months’ delays in
disbursing funds to beneficiaries occurred. In the service providers’ opinion, some
beneficiaries resigned from the micro-loan allowed to them.
3. The sequence of activities was correct in general, concerns being raised by the fact
that recruitment of loan advisers was commenced after the process of collecting
applications for micro-loans and grants began.
4. In our opinion, study visits to Bosnia-Herzegovina and Montenegro were valuable.
5. The Component implementation was supported by a significant amount of training
activities and these, in combination with the study visits results, strengthened the
effectiveness of goals achievement.
6. We are of a very high opinion about the work of loan advisers.
Synergy of Components
The construction of the Rural Development Program allowed for potential synergy
between Component A and Sub-Component B1. It was assumed that some persons
94
trained under Sub-Component B1 would wish to commence their own business activity,
using micro-loans and grants.
But during the Project, circumstances occurred that made it difficult to generate the effect
of synergy. In particular, this applies to the very significant delay in implementation of
Component A and to the fact that there was no closer co-operation between the subjects
implementing both Components.
On the other hand, some of the activities increased the chance of synergism, e.g. training
for loan advisers provided by IMC, where forms of support available under SubComponent B1 were presented and also the fact that a company granting micro-credits
was entrusted with the task of running the business assistance centre in
Zachodniopomorskie voivodship. In some few cases, we encountered information that
business assistance centres co-operated with loan advisers.
Figures give evidence to the scale of synergy. Databases of both Components show that
433 persons participated in Component A and in Sub-Component B1. The services of
business assistance centres was expected to be a source of synergism in SubComponent B1 – 20,172 persons used these services during RDP. These participants
were from 5 voivodships where Component A was implemented and from two additional
regions: Lubelskie and Świętokrzyskie voivodships. To conclude it, it seems that the level
of synergy was relatively low (several percent).
1.3.4
Conclusions and Recommendations for the Future
Conclusions
The Component objectives and activities were adequate to the social and economic
situation in rural areas during the Program implementation. We assess positively the
choice of voivodships where the Component activities were implemented.
Quantitative achievements of the Component can be considered as satisfactory when
compared with the expected outcomes. 2941 new jobs were created as a result of
Component activities.
As far as the group of persons increasing the employment is concerned, men prevailed,
as well as persons running a business before the Program commencement, trade
businesses, situated in mixed urban-rural gminas.
Component A gave preference to newly launched micro-businesses, supplementing
micro-loans with non-repayable grants. The Component activities made it easier for
beginners to launch a business, as it was much simpler to obtain funds and at a lower
cost.
The attempt to reach one of potential beneficiary groups – school graduates turned out
unsuccessful. In general, young people participated in Component A to a low degree.
Respondents to survey questionnaires assessed the utility of financing in form of microloans and grants combined with advisory services very well. Very few persons indicated
any problems encountered during participation in the Component. The work of loan
advisers from foundations implementing the Component activities were assessed very
high.
95
The effect of the Component at the regional and voivodship level was limited
(participation of 1% of potential beneficiaries) due to relatively small funds.
At the beginning of Component implementation, entities from the micro-lending sector
were relatively well developed in Poland, therefore the Component implementation
contributed to improvement of the existing mechanisms only and not to any qualitative
change of micro-loan programs.
The first stage of Component implementation (selection of service providers) was
definitely too long – more than a year and a half. At the beginning of the micro-loan
disbursement process serious delays in the flow of funds to beneficiaries took place. The
financial mechanisms were made more efficient as a result of corrective actions.
We assess positively the friendliness of micro-loan and grant procedures. Applications for
financial support were relatively easy to fill. Only the section dedicated to financial plan of
the business was difficult for the beneficiaries, but on the other hand it made them think
over the practicability of their ideas thoroughly. As a result, the risk involved in microbusinesses being launched was reduced.
The risk management of the Component was highly satisfactory – the share of lost loans
is close to zero.
There are no proofs of synergy effect between Component A and Sub-Component B1.
The comparison of benefits generated by the Component with its costs is highly
satisfactory – we estimate the payback period of the investment at some three years.
Recommendations for the Future
Mobile and active loan advisers formed an effective channel of beneficiaries procurement
which proved efficient in RDP and which is worth using in further micro-loan projects.
It is worth running promotional and informational activities of further loan programs in cooperation with local authorities and with institutions enjoying population’s confidence, e.g.
farming advisory centres. This increases the range of information campaign and results in
increased trust of potential beneficiaries to the program. This especially important that
some beneficiaries were distrustful of the Component.
To reach school graduates as a target group of loan programs one needs to develop
entirely new tools, different from those used under Component A.
It is worth considering increasing the limit of micro-loan amount to be provided under
future programs. Both the beneficiaries and the providers of services indicate that the
assistance was insufficient in some cases. This applied in particular to persons
developing their existing businesses. It seems that increase of the loan amounts should
be accompanied by extended maturity term, so that this does not involve a significant
growth of the debt monthly costs.
We suggest the Component beneficiaries’ standing be surveyed in two-three years – after
the maturity term of micro-loans expires – in order to identify the long-term impact of
Component A.
We recommend that when planning further micro-loan programs, solutions offered to
various groups of beneficiaries are differentiated.
96
Existing micro-businesses
As it has been mentioned before, existing micro-businesses were Component’s most
active beneficiaries. This means that in further programs satisfactory effects will be
achieved if a similar functionality of the program is adopted. It would be advisable
however to consider making the program more commercial in nature – e.g. introducing
sanctions in the form of requirement to return the difference between the interest rate
applied for the program and the interest rate of the commercial market in cases where a
beneficiary ceases implementing the program objectives (e.g. does not employ new
personnel at the time declared) or delays loan repayment; dispersal of grants by the
means of reducing the preferential level of subsidising for individual beneficiaries.
Newly launched microbusinesses
We suggest an entirely different approach to persons who consider launching new
businesses (the unemployed, farmers and school graduates). Considering their fear of
risk involved in setting up an own company and their lack of experience in running a
business on the other hand, it is necessary to provide “leadership” and support to these
people throughout the complete cycle of establishing a company. Program activities
would begin with a help to the most enterprising potential entrepreneurs in developing an
idea (e.g. by the means of sharing the knowledge about successes of other microbusinesses, providing information about areas of potential activity with the best prospects
for development in townships and villages) and would include a full support in the period
of commencing and running the activity at the initial stage.
Such programs would work as “ tailored services for SME” and they should be based on
those specific sectors that develop most intensively in townships and villages of Poland
or on those that experienced their prime in other countries that joined EU in previous
decades. It would be possible to identify key success factors for selected sectors and
thereafter – to support the “newly-baked” businessmen in the whole process of
development: from talking potential businessmen into taking the risk of launching a
company, through providing specialist training legal support, assistance in finding
contractors, help with the accountancy (e.g. duty hours of an accountant, co-financing of
bookkeeping), consultations in the field of quality issues concerning the given sector,
technological support (e.g. providing access to the Internet, facilitating preferential
purchase of computers / arranging instalments for a payment, reference visits in Poland
and abroad, manuals for particular sectors), up to providing support in gaining the capital
needed for further development. Agri-tourism is the first area that could be covered by a
program like this.
Cost/benefit effective implementation of a micro-loan program requires an appropriate
scale (number of beneficiaries). It seems that Component A can become a good
reference point in this respect when designing next micro-loan programs.
It seems that it would be worth working out a continuation of the Component based on
the potential beneficiaries’ increased confidence in such tools and using the tools and
mechanisms of micro-loans distribution developed under the Project. In our opinion, next
programs are desirable – first of all with regard to the high proportion of effects (reduced
unemployment) to the outlays made to implement the program.
97
Final Evaluation Study of the Rural Development Project – Sub-Component B1
Dominika Milczarek, Ph. D., Katarzyna Zawalińska, Ph. D.
2 Sub-Component B1
99
2.1.1
Identification of Problems Sub-Component B1 Responds to
In the second half of the 90-ies rural areas were covering more than 90% of Poland’s
territory and rural population accounted for nearly 40% of the total population of the
country. Persons dealing with agriculture accounted for some two-thirds of the rural
population, persons owning no arable land being the rest.
In the analysed period, labour-related problems of the farming population (having a
relationship with the farming activity) included first of all low productivity of work when
compared with other economy sectors and with farming sectors of other European
countries. In the year 2000, the employment in agriculture reached 28% of the total
employment, while this sector’s share in GNP accounted for 3% only30, which means that
productivity of the farming sector was at the level of about 1/11 of the average national
labour productivity in Poland31. This caused that the level of most farmers’ income
dropped to some 60% of the income gained by the remaining social and economic
groups in the second half of the 90-ies (in 1989, before the transformation, it accounted
for 115% of other groups’ income)32.
The worsening of the agricultural sector’s standing in the 90-ies resulted in a rapid fall of
agriculture’s share in GNP, but without any significant changes in farming employment,
therefore, with the absence of alternative employment directions in rural areas this
translated into unemployment growth. Immediately after economic reforms, the
agriculture played the role of a buffer, absorbing the surplus of the labour force generated
in the economy. This resulted in a disproportionate hidden unemployment, particularly in
regions with many small farms that absorbed more unemployment than regions
dominated by large commodity farms. Nevertheless, most of the farming population did
not qualify for unemployment benefits, because they owned land and many others did not
wish to apply for social assistance, this leading them to poverty.
The demographic and social structure of the unemployed was rather unfavourable in rural
areas, mainly in terms of education. The unemployed from rural areas are characterised
by a significantly lower share of persons with university degrees (this share did not
exceed 3%) and with secondary education (less than 30%) than the unemployed in cities
and at the same time, the share of persons with vocational and primary educational
background is higher in rural areas (more than 70% in total). Migration, so intensive in the
80-ies, contributed to the outflow of the best educated part of this population to cities and
although these movements slowed down in the 90-ies, the imbalance still exists in the
sphere of education33.
Many authors indicate that in case of rural population, the low level of qualifications is one
of substantial barriers to job seeking (in terms of both hired labour and self-employment
as well) in off-farming sectors34. In spite of a significant improvement of the rural
30
Rocznik Statystyczny GUS (Statistical Yearbook), Warszawa 2002.
Productivity is defined as a proportion of performance to outlays, therefore the approximate
productivity of the farming sector is 10.7% (3%/ 28%*100).
32
Analiza produkcyjno-ekonomicznej sytuacji rolnictwa i gospodarki żywnościowej w 2002 roku,
IERiGŻ, Warszawa 2003.
33
W trosce o pracę. Raport o rozwoju społecznym. Polska 2004, UNDP, Warszawa 2004.
34
Inter alia: Chaplin, H. i Milczarek, D. Dywersyfikacja działalności ekonomicznej gospodarstw
rolnych w Polsce. Wyniki badań w województwie podlaskim, podkarpackim i dolnośląskim, in: Wieś
31
100
population’s education level in the last decade35, the level of human capital which is lower
than in cities, reduces off-farm employment opportunities.
Labour Market Trends and Prospects in Rural Areas of Regions Covered by SubComponent B1 and Outside before Program Implementation
Inclusion of Sub-Component B1 to the RDP as an element of the “human capital
development” was intended as a response to needs of the rural population whose
economic situation was difficult. Sub-Component B1 was planned as an assistance in
adjusting and improving this group’s professional qualifications and skills, as well as in
using them in a fuller manner. The response to these needs was supposed to be
consistent with the economic development possibilities and with the situation on local
labour markets. Since the very beginning, particular focus was on supporting
entrepreneurship, increasing income levels, reducing the sphere of poverty in rural areas
and promoting less developed regions. Hence, selection of voivodships for the Program,
as well as allocation of funds to individual regions were based on such criteria as: (i) rural
population in the voivodship,(ii) GNP per capita and (iii) unemployment rate36.
To assess the accumulation of barriers to occupational activation, trends within the basic
economic and social variables in the 7 selected voivodships before the Program
implementation have been analysed and compared with characteristics of regions that did
not participate in the Program. In our opinion, the problems of a deepening nature require
intervention in particular.
Since 1997, the proportion of employed inhabitants of rural areas had been falling
significantly. It had grown in Mazowieckie and Wielkopolskie regions only (by 1% and 5%
respectively). Although in the years 1996-1999 the number of working people was
relatively higher among inhabitants of rural areas, the drop of this number was more
serious in regions covered by Sub-Component B1 (dynamics of fall higher by nearly 1
pp.) than in regions not covered by the Program.
i Rolnictwo 4/2003 and Wilkin, J., ed. Podstawy strategii zintegrowanego rozwoju rolnictwa i
obszarów wiejskich w Polsce, WNE UW, Warszawa 2003.
35
According to data of the Common Farming Census (Raport z wyników Powszechnego Spisu
Rolnego 2002, GUS Warszawa 2003).
36
Project Appraisal Document, Warsaw 2000.
101
Table 14.
Employed in total, inhabitants of rural areas in the years 1996-1999
Voivodship
1996-1999 1999/1996
mean* % change
1996
1997
1998
1999
Dolnośląskie
108090
108333
105306
98757
105049
-9%
Kujawsko-pomorskie
80383
81557
80806
76141
79693
-5%
Lubelskie
97068
98804
94108
88396
94510
-9%
Lubuskie
40619
41854
41071
38652
40532
-5%
Łódzkie
97072
101124
100955
93369
98078
-4%
Małopolskie
112925
117054
116577
109507
113975
-3%
Mazowieckie
153649
160047
162193
155949
157924
1%
Opolskie
57586
57534
55604
51786
55576
-10%
Podkarpackie
94421
98602
98340
92724
95988
-2%
Podlaskie
36907
37782
37283
34290
36540
-7%
Pomorskie
72619
79382
78256
71623
75394
-1%
Śląskie
126426
130110
127769
116692
125142
-8%
Świętokrzyskie
56164
56502
55167
51040
54674
-9%
Warmińsko-mazurskie
56325
59248
58404
52469
56550
-7%
Wielkopolskie
166501
174071
179620
174594
173633
5%
Zachodniopomorskie
60824
65556
64835
58008
62229
-5%
B1 voivodships
76972
79691
78403
72586
76866
-5,7%
Other voivodships
72475
74788
74039
69021
72546
-4,8%
Difference in basis points (B1 – other voivodships)
-0,9%
* Geometric mean
Source: Consultant’s own analyses based on data of Bank Danych Regionalnych GUS
There were more inhabitants of rural areas employed in the industrial sector in regions
that did not participate in B2. The number of rural dwellers working in this sector grew,
but the growth was definitely bigger in voivodships remaining outside B1 (1.9% against
0.4%). Thus, both the absolute and the relative difference in the number of people
working in the industrial sector deepened to the disadvantage of B1 regions.
The absolute number of persons working in the farming sector was slightly bigger in
voivodships outside B1, but they were more numerous at the same time (9), therefore the
dynamics of employed rural dwellers from rural areas are more important and these were
higher in the voivodships participating in B1 than in the rest of the country. This may be
an indicator of both positive and negative changes. The first would mean that the
agricultural sector is subject to more rapid restructuring in the regions covered by B1 and
that rural population begins working in the industrial and service sectors. This variant is of
little probability however, as no considerable growth of employment in industry was
observed. Thus, the faster dynamics indicate rather a transfer to non-earned forms of
maintenance (disability pensions, retirement pensions, allowances and benefits) and this
thesis is probable, considering the fact that the farming population is growing older.
102
The relatively higher number of businesses registered in rural areas of voivodships
covered by B1 when compared with the remaining regions is a positive phenomenon. But
the growth of dynamics, although considerable (34.4%), was lower than in the
voivodships remaining outside B1 (by 1.2 pp).
Table 15.
Inhabitants of rural areas working in the industrial sector in the
years 1996-1999
Voivodship
1996-1999 1999/1996
mean*
% change
1996
1997
1998
1999
Dolnośląskie
53580
52036
51042
48072
51142
-10%
Kujawsko-pomorskie
29983
30669
30863
30700
30552
2%
Lubelskie
31951
34023
31775
29738
31836
-7%
Lubuskie
15523
16591
17092
16760
16481
8%
Łódzkie
50089
52902
54426
50302
51898
0%
Małopolskie
43504
44906
46092
42511
44232
-2%
Mazowieckie
60058
64139
67543
60445
62974
1%
Opolskie
20643
21130
21253
20045
20762
-3%
Podkarpackie
33879
37349
37123
34761
35747
3%
Podlaskie
10322
11103
11813
10519
10924
2%
Pomorskie
28408
31382
32472
30297
30603
7%
Śląskie
67655
70757
68706
60688
66841
-10%
Świętokrzyskie
22141
22955
22511
21125
22173
-5%
17677
17848
20208
19185
18701
9%
Wielkopolskie
68889
74721
81497
80627
76261
17%
Zachodniopomorskie
21097
22456
22752
21852
22030
4%
B1 voivodships
27422
28716
29028
27518
28162
0,4%
Other voivodships.
33361
35484
36525
34004
34822
1,9%
-1,6%
* Geometric mean
103
Table 16.
Inhabitants of rural areas working in the farming sector in the years
1996-1999
Voivodship
1996-1999 1999/1996
mean*
% change
1996
1997
1998
1999
Dolnośląskie
13523
13558
11899
10244
12227
-24%
Kujawsko-pomorskie
13296
12985
12120
10423
12152
-22%
Lubelskie
7544
7815
6884
5751
6951
-24%
Lubuskie
6652
6420
5914
4833
5911
-27%
Łódzkie
6139
5942
5345
4595
5471
-25%
Małopolskie
5269
5034
4549
3791
4625
-28%
Mazowieckie
10089
10139
8784
8529
9356
-15%
Opolskie
12936
12780
10954
9598
11482
-26%
Podkarpackie
6526
6257
5731
5125
5885
-21%
Podlaskie
3640
3745
3327
2956
3403
-19%
Pomorskie
10830
11857
10792
9241
10638
-15%
Śląskie
6753
6793
6045
4925
6079
-27%
Świętokrzyskie
3412
3239
2789
2457
2950
-28%
12564
12809
11250
8682
11197
-31%
Wielkopolskie
33093
32843
29495
26002
30216
-21%
Zachodniopomorskie
14169
15389
13807
11201
13551
-21%
B1 voivodships
7999
7969
7136
5995
7226
-25,1%
Other voivodships.
9736
9938
8877
7690
9015
-21,0%
-4,0%
* Geometric mean
104
Table 17.
Entities registered in REGON system – private sector in rural areas
in the years 1996-1999
Voivodship
1996-1999 1999/1996
mean*
% change
1996
1997
1998
1999
Dolnośląskie
31881
36302
40445
43452
37765
36%
Kujawsko-pomorskie
23850
28673
31884
34484
29447
45%
Lubelskie
27568
31352
35196
37064
32586
34%
Lubuskie
14597
16340
17505
18108
16582
24%
Łódzkie
30339
34993
38647
40938
36000
35%
Małopolskie
60234
63651
68060
71656
65758
19%
Mazowieckie
68586
73253
82401
88339
77765
29%
Opolskie
13854
15631
17688
19690
16572
42%
Podkarpackie
33914
37601
42159
44993
39437
33%
Podlaskie
12189
13702
15426
17125
14493
40%
Pomorskie
23304
27049
30209
32974
28150
41%
Śląskie
44765
48066
53640
56867
50615
27%
Świętokrzyskie
18230
19333
22443
24240
20925
33%
14470
17500
19219
19697
17596
36%
Wielkopolskie
51218
58364
65865
69922
60913
37%
Zachodniopomorskie
20307
23647
26747
28967
24697
43%
B1 voivodships
25594
28991
32359
34399
30146
34,4%
Other voivodships
23656
26560
29659
32069
27804
35,6%
-1,2%
* Geometric mean
The growth of unemployment was a vital economic and social problem all over Poland in
the second half of the 90-ies. It was experienced by voivodships from both groups, but
there were considerable differences in this phenomenon’s intensity and dynamics. In the
years 1998-1999 the absolute number of the unemployed living in rural areas of
voivodships covered by B1 was by almost a half bigger than outside these regions
(although there are more voivodships there) (Table A1 in Annex 1). Moreover,
unemployed graduates constitute a bigger percent in B1 regions. Besides, the rate of
unemployment and the proportion of the unemployed aged up to 25 are higher by as
much as around 2.5 pp. At the same time, there were less job offers there at this time and
much more unemployed per 1 job offer (e.g. in 1999 – 615 in B1 voivodships against 421
on the remaining territory). The fact that these tendencies tended to deepen was also
disturbing37.
37
Trzeba zauważyć jednak, że i wśród województw nie objętych B1 są takie, gdzie rozmiary
zjawiska nasilającego się bezrobocia były nawet większe niż w niektórych województwach objętych
B1 (na przykład w województwie łódzkim czy dolnośląskim).
105
In the years 1995-1999 employment indexes fell in B1 voivodships more than in the
remaining regions (the difference in dynamics reached 2.2 pp.). The balance of internal
and foreign migrations was also higher in B1 regions in these years, although it dropped
in 2000 against 1995. (Table A2 and A3 in Annex 1).
To sum it up, one may state that most of negative phenomena on the labour market in
rural areas and all over Poland were of a deepening nature in the years 1996-2000. An
analysis of GUS (Main Statistical Office) data shows that in the year 2000, before
implementation of Sub-Component B1, the situation of regions selected for this
implementation was much worse than in the remaining voivodships (Table A4 in Annex
1). For the first, GNP per capita was lower in voivodships covered by B1 and much lower
than the national average – it was as low as 81.4% of the national average). For the
second, B1 voivodships’ share of agriculture and rural areas was much higher in terms of
the national product (4.8% in the added value against the national average accounting for
3.8) and in terms of farming employment as well (as much as 35% share of those working
in the agriculture against 23.9% outside B1 – according to the Main Statistical Office, on
the basis of data provided by labour offices). In general, regions participating in B1 were
inhabited by rural population almost in a half (rural dwellers accounted for 46.3 of the total
population), while this proportion was around one-third (35.4%) in the remaining
voivodships. Although in the year 2000 the overall rate of unemployment was higher in
the voivodships not participating in B1, the formal unemployment among the population
having a relationship with a farm was higher in the regions covered by B1 (12.7% against
11.4%). In case of population having no relationship with any farm, the unemployed was
the same, i.e. 27%. Moreover, there were much more small individual farms up to 3
hectares in the structure of farms situated in B1 area (potentially qualifying for support
provided under this Sub-Component), but on the other hand the percentage of farms
running an off-farming activity was considerably lower (by 1 pp.).
Thus, any improvement of the situation on the labour market in regions covered by B1
was very much desirable, but the analysis of individual voivodships shows that it was
possible to apply a slightly different selection of voivodships that would qualify for B1. A
simple comparison of all voivodships according to the 3 most important criteria that have
been used (i.e. GNP per capita, the proportion of rural population and the unemployment
in rural areas) indicates that Małopolskie, Kujawsko-Pomorskie and ZachodnioPomorskie should have been replaced with Podlaskie, Opolskie and Łódzkie. On the
other hand, if one uses cases studies rather than average values, it can be proved that
the selected voivodships had some sub-regions with a particular accumulation of
economic and social problems (e.g. regions of former state agriculture, etc.), this factor
justifying their acceptance to the Program.
Sub-Component B1 Rationale Evaluation
As we have proved above, unemployment-related problems became visibly more
intensive in the second half of the 90-ies and no market mechanisms that might lead to
any solutions could be seen. According to estimations, the chance for creating new jobs
begins with the economic growth at the level of some 5% (in cities first), while the
economic growth was at the average level of 3.1% in the years 2000-200438. Moreover,
the protracted economic transformation of the country and the generally weakened
development of the world economy worsened the situation in industry and agriculture. In
these circumstances, one could not expect that the private sector would engage in pro-
38
Rocznik Statystyczny 2004, GUS Warszawa and PG TOP Polska Gospodarka. Tendencje,
Oceny, Prognozy, CASE, Warszawa 2005.
106
employment solutions, especially that the cost of labour was growing due to State’s
growing fiscalism. As one can see, there was no practical chance for market-based
solution of problems related to high unemployment in rural areas in this period, especially
that a very intense demographic growth of labour resources was observed then.
Since intervention was a necessity, one may ask whether commercial or public funds
should have been involved. According to the Project Appraisal Document39, the variant of
financing the Program with commercial funds had been taken into consideration. It was
rejected however, due to the limited of appropriate instruments (such as municipal bonds)
and due to concurrent limitations for financing public works, particularly in rural areas.
One should agree that this was a serious barrier to using commercial funds. Thus,
intervention with the participation of state funds was justified.
Finding out whether the Sub-Component responded to the complexity of employmentrelated problems was another important question that needed to be answered in order to
evaluate Sub-Component B1 rationale. As it is known, it was difficult to develop programs
with a comprehensive approach to complex problems (e.g. that would combine
educational solutions with self-governmental, health-related, infrastructural and other
solutions) within the frames of State policy (and it still remains difficult, despite the fact
that decentralisation of public finances has already been initiated). This results mainly
from the sector approach prevalence. Each ministry seeks funds for its own activities, this
leading to competition for funds instead to efforts to consolidate funds for specific
purposes. Previous programs addressing rural areas, such as for example World Bank’s
projects, ASAL (Agricultural Sector Adjustment Loan, 1994-1997) or Rural Environmental
Protection Areas confirmed this tendency, as they concentrated on mono-sectoral
solutions (e.g. on rural infrastructure or environment protection). This time, participation of
the World Bank was supposed to facilitate the multi-sectoral construction of the Program
and to fill the gap in long-term financing40. Thus, at the level of planning, the construction
of Sub-Component B1, as well as the entire RDP construction was rather innovative and
valuable, as it enabled one to depart from previous program models and to apply a
program based on comprehensive approach to problem solving.
One should consider it positive that at the stage of RDP planning, not only infrastructure
and education, but human capital development was taken into consideration as well, i.e.
the program of reorientation and redeployment (Sub-Component B1). Expected to
respond to problems of rural population’s employment and entrepreneurship. One should
stress however, that a program consisting of many Sub-Components may have an
economic advantage over separate programs in such circumstances only, when the total
of its Sub-Components’ outcomes is higher than the total of separate programs would be,
in other words, when synergy effects occur. This problem will be discussed further in this
evaluation study.
Economic and Social Background of Sub-Component B1
As the analysis presented above shows, the problems of employment and human capital
development in rural areas were complex: they were of an economic and a social nature.
Thus, when evaluating Sub-Component B1 utility it is worth analysing, how these aspects
had been perceived at the stage of constructing this Sub-Component dedicated to
redeployment and reorientation.
39
40
PAD, Warsaw 2000.
As above.
107
According to the Project Appraisal Document, the basic economic intention behind
implementation of the Sub-Component was to reduce budget expenses and to increase
GDP as a result of transfer of employees from the sector where they are not productive
and where they are paid public subsidies (such as farming), to such sectors where they
can be more effective and where they will not be paid any public subsidies (industry and
services). One should note at the same time that the GNP level will be growing only when
retrained persons are employed in newly launched businesses or in workplaces with a
higher productivity. This logic is definitely justifiable, one should remember however that if
persons trained under the Program cause an effect of a definite push-out of persons
employed previously on the same positions, the important social problem of structural
unemployment will not be solved despite the improvement of economic efficiency
(resulting from improved productivity). The objective of the Program was to provide
comprehensive solutions to problems and not to “replace” them. Thus, our evaluation
focuses on net effects of creating new jobs.
As far as the social aspect of Sub-Component B1 background is concerned, it is based
on the so-called “Social Appraisal”, i.e. case studies conducted for the purpose of the
Program, consultations with specialists and reports on employment41. According to these
studies and analyses, despite rural dwellers’ numerous declarations of their readiness to
seek off-farm employment, the existing vocational training curricula do not guarantee that
skills adequate to new economy’s needs are gained. Persons wishing to launch an own
business expressed their frustration caused by the insufficient condition of rural
infrastructure. The poor communication system made it impossible for rural dwellers to
obtain information about employment opportunities and for enterprises – to maintain their
contacts with the outlet. High costs of transport and little frequency of public
transportation rides discouraged those inhabitants of rural areas who had thought of
seeking off-farm employment and it limited country families’ financial capacity to payment
for education of their children. Besides, the analyses have shown that women lose the
fight for jobs as a rule and that there are much less women managing business entities.
Lack of baby-sitting support and limited chances for finding a job are important factors
behind this situation. All these social aspects seem to characterise the cause and effect
situation and we shall find out in the further part of this evaluation, whether they were
reflected inn the Program construction.
To conclude, the rationale behind the project focussed on reorientation and labour
redeployment – as Sub-Component B1 was – has to be assessed as very satisfactory,
particularly when it constitutes a part of a comprehensive program (such as RDP)
addressed to rural population.
2.1.2
Evaluation of Sub-Component B1 Objectives and Activities
The main objective of Sub-Component B1 is to provide support to the process of
economic development, to increase incomes and to reduce the sphere of poverty through
providing assistance to inhabitants in the area of enhancing their human capital and
improving its use42.
The specific objective of Sub-Component B1 is to provide assistance economically
disadvantaged and unemployed in rural areas to expand and use their human capital in
41
42
108
PAD, Warsaw 2000.
RDP Operational Manual, Warsaw 2000, p. 45.
response to economic and labour market opportunities43. Thus, the following two
objectives can be identified:
1. Improvement and better use of qualifications (human capital),
2. Assistance in taking advantage of opportunities emerging on the labour market.
Various materials44 present these objectives in a breakdown into three categories:
1. Assistance in improving one’s qualifications,
2. Assistance in finding a job on local labour markets,
3. Assistance in human capital adjustment to requirements of local labour markets.
The objectives defined above give evidence to the fact that the Program was focussing
on active forms of counteracting unemployment and that it was oriented towards
providing help to the rural economically disadvantaged population and the unemployed.
Two basic tasks were financed under Sub-Component B1: (i) economic and labour
market surveys in the field of economy and labour market-related issues and (ii) labour
redeployment services based on regional programs of the selected regions. The
redeployment services absorbed 96% of the entire Sub-Component’s funds (USD 43.15
million out of USD 44.84 million). 45
The economic and labour market surveys were carried out in all voivodships covered by
Sub-Component B1. Their objective was first of all to: provide short-term and long-term
projections on economic trends and labour markets; develop co-operation and
interrelations between Labour Offices and employers, support the process of planning
redeployment services and develop skills and knowledge of Labour Offices’
representatives in the field of collecting data, carrying our research and forecasting. Thus,
they constituted an important element of preparing and implementing the main part of the
Program, i.e. redeployment services.
According to PAD46, services financed under Sub-Component B1 were focussing on:
(i) improving labour mobility and addressing frictional unemployment; (ii) enhance the
quality of human resources via retraining – to address structural unemployment and
improve productivity and (iii) supporting individuals to help them start and maintain
microbusinesses and to communities to implement temporary community employment
schemes and design local development plans – to address the lack of demand for
labour47.
The RDP Operational Manual defines six types of services48:
1. training services,
2. specialised employment services (advisory services),
43
Realizacja Podkomponentu Reorientacji/Przekwalifikowań. Aneks 3, Ministerstwo Pracy i Polityki
Społecznej, Warszawa 2000, p. 275.
44
„Rural Development Program”, Information brochure issued by FAPA, Warsaw 2000.
45
Project Appraisal Document, Warsaw 2000.
46
Ibidem, p.23.
47
Ibidem.
48
“RDP Operational Manual”, Warsawa 2000.
109
3. temporary employment services,
4. small business assistance services (assistance in launching and running a business),
5. small business incubators,
6. local development planning.
Each of the service types seems to address at least one of the main objectives. Objective
1 is mainly achieved by the means of training services and temporary employment
services. Objective 2 is mainly achieved by the means of professional advisory services,
small business assistance services, business incubators and local development planning.
Sub-component
Activities
Sub-component
Objectives
Program
Objectives
Figure 24.
Sub-Component B1 objectives and activities in the context of RDP
objectives
employment
Increasing incomes and reducing the
sphere of poverty through assistance to
inhabitants to improve and
use their human capital better
Employment
services
Temporary
employment
programs
Business Assistance
Centres
potential necessary to obtain
funds
Providing support
to the process of
economic
development
Training
services
Small business
incubators
Local
development
plans
It also seems that some services of Sub-Component B1 help achieve objectives of other
Components. For example, business assistance centres and business incubators will
also address one of Component A objectives: “Creating and Maintaining SelfEmployment of Rural Population”. The local development planning service may also
address the Sub-Component B3 objective (“Increase effectiveness and efficiency of
administration units in absorbing investment outlays”) and one of the Component A
objectives (“Assistance to government institutions in promoting small enterprises”).
The part of this study following below analyses the degree to which the redeployment
program objectives responded to problems and needs of Program target areas and
persons; the degree to which program objectives were interrelated with the State policy
general guidelines for employment and human potential development and finally – what
these services’ coverage was, i.e. how many people participated in the Program in
comparison with the number of those in need.
Sub-Component B1 Relevance Evaluation
To find out, whether the objectives and the activities of Sub-Component B1 specified in
the Operational Manual were relevant to the development-related needs of the selected
voivodships, SWOT analyses included in regional strategies for the years 2000-2006
have been used in this evaluation. Assuming that local self-governments were able to
identify their needs in their regional strategies best, we have analysed “weaknesses” and
110
“threats” specified there (Annex 2) and we have compared them with the objectives of
Sub-Component B2.
Among weaknesses and threats defined in regional strategies, problems relating to
business activities in rural areas are coming to the forefront, both in the aspect of access
to existing enterprises (off-farming employment) and in terms of opportunities to launch a
business. The strategy of Kujawsko-Pomorskie region indicates continuing low activity
and entrepreneurship with the low degree of rural population’s education and a low level
of business activity development, with a weak diversity of business activities in rural
areas. On the other hand, the strategy of Lubelskie voivodship indicates entrepreneurs’
little commitment to develop their businesses and population’s, especially young people’s
lack of will to launch their own businesses, new entrepreneurs’ low education and lack of
business incubation. The strategy of Podkarpackie voivodship stresses the absence of
alternative sources of income, particularly from agri-tourism and the strategy of
Zachodniopomorskie region mentions the lack of any entrepreneurship support system.
The low level of rural population’s qualifications and education was the second problem
put forward in almost all strategies. The strategy of Kujawsko-Pomorskie indicates that
“education directions do not fit [...] in the labour market requirements and that the level of
inhabitants’ qualifications is inadequate to the labour market needs”. On the other hand,
the strategy of Lubelskie voivodship stresses farmers’ low education level, and in case of
Podkarpackie the lack of educated human resources for off-farming activity is mentioned.
The strategy of Warmińsko-Mazurskie refers to inhabitants’ education which is insufficient
and inadequate to needs and to the lack of high-qualified human resources.
Rural population’s low wealth which creates barriers to access to the labour market was
the third problem most often identified by regional strategies from the analysed territory.
The strategy of Kujawsko-Pomorskie voivodship indicates population’s progressing
impoverishment, particularly in rural areas; the strategy of Lubelskie – the low average
wealth of rural dwellers, irrespective of their involvement in farming, while the strategy of
Świętokrzyskie voivodship refers to the low per capita income and to this income’s
unfavourable structure (high share of disability pensions and old age pensions), which
has a negative impact on the internal demand and the development of local
entrepreneurship.
The group of other problems indicated in regional strategies includes unfavourable
demographic tendencies, the process of population ageing, outflow of young, active and
well educated people (voivodships: Świętokrzyskie and Lubelskie), outflow of qualified
specialists (Małopolskie), slow pace of transformations in rural areas ("the countryside
becoming a folk museum") (Małopolskie), increasing costs of education (KujawskoPomorskie), little migration opportunities (Świętokrzyskie).
One may sum it up hence, that the Program objectives identify voivodships’ real problems
and needs correctly and respond to them, but do not exhaust them. One might consider
including pro-mobility aspects in the Program, as well as activities facilitating shuttle
migration (commuting) to work outside the place of residence and activities aimed at
encouraging young and educated people to stay in rural areas and/or to move there (in
order to launch an own business or support local human resources, including medical or
teaching staff, etc.). UNDP 2004 Report emphasises the weight of such solutions (the
chapter dedicated to the labour market in farming)49.
49
W trosce o pracę. Raport o rozwoju społecznym. Polska 2004, UNDP Warszawa 2004.
111
To conclude, one may asses the adequacy of Sub-Component B1 objectives to the
problems of its Target areas as satisfactory.
Evaluation of Sub-Component B1 Targeting
“The National Strategy for Growth of Employment and Human Resources Development
for the Years 2000 – 2006” was the main document on which the policy in the field of
employment and human potential development was based at the moment when RDP and
Sub-Component B1 were designed50. The document referred to “The Mid-Term Strategy
for Agriculture and Rural Areas Development”, to restructuring programs of selected
economy sectors and to other documents adopted or being discussed by the Polish
Government. Additionally, the ideas included in the Strategy complied with resolutions,
recommendations and guidelines of OECD and EU in the field of employment policy.
Therefore, the relevance of Sub-Component B1 should be evaluated by the means of
comparing its assumptions with objectives of the Employment Strategy.
The main objective of the Employment Strategy was “to achieve higher commitment of
population to the process of labour”. The expected result envisaged achieving the
employment index of the group of population at the age of occupational activity at the
level of 62-64% by the year 2006. This goal should be achieved by the means of: (i)
increasing the employment through improving the quality of human resources, (ii)
developing entrepreneurship, (iii) improving companies’ and their personnel’s capability to
adapt to the changing market, (iv) strengthening the policy of equal chances on the
labour market.
Several types of activities were designed. Apart from typically educational, the proposal
included firstly improving qualifications of the unemployed, i.e. early identification of
needs and intervention in case of persons threatened by unemployment, promotion of
vocational training, on-the-job training, partly subsidised employment and other programs
for the unemployed favouring improvement of their qualifications. Secondly, the proposal
envisaged improvement of the institutional support to the labour market through working
out uniformed methods of collecting data about phenomena occurring on the labour
market and monitoring the effectiveness of the labour market programs. Thirdly, the
Strategy addressed the need to strengthen non-public institutions providing support to the
labour market, such as temporary employment agencies, personal advisory institutions,
non-governmental employment agency. Fourthly, development of employment agency
was put forward – improving staff qualifications, work methods and techniques and
providing appropriate conditions of work to employment agents (e.g. means of
communication, means of transport, operating procedures). For the fifth, the Strategy
provided for developing a system of “offensive”, commonly available employment-related
information and improving the quality and the availability of occupational consultancy. For
the sixth, improvement of labour flexibility was proposed, e.g. work organisation flexibility
(e.g. teleworking), employment flexibility (i.e. a variety of employment contract types),
functional flexibility (i.e. changing personnel’s tasks, redeployment), etc. For the seventh,
it was pointed out that motivation should be enhanced by the means of various
mechanisms of incentives and approaches to job seeking. Thus, the National Strategy is
oriented toward active forms of supporting employment, it is of a comprehensive nature
and assumes participation of various ministries. Besides, social partners and expert
circles have been involved in Strategy implementation.
50
“National Strategy for Employment Growth and Development of Human Resources for the years
2000-2006, Ministry of Labour and Social Policy, Warsaw, 2000.
112
Comparing the objectives and the activities of Sub-Component B1 with those from the
National Strategy one can see immediately a far-reaching convergence. The
redeployment program is of a multi-sectoral nature too and it proposes tools supporting
active forms of fighting the unemployment, many of them being adequate to these
envisaged by the National Strategy.
One should note however that Sub-Component B1 is more oriented towards the “supplyrelated” aspect of human resources than their “demand-related” aspect. This means that
its proposals do not include many activities that would encourage existing employers to
adjust employment opportunities in rural areas. Sub-Component B1 might propose tools
increasing the flexibility of labour market organisation, e.g. create incentives for
employers to make forms of employment more flexible, e.g. develop remote work
opportunities in order to overcome structural barriers existing in rural areas (such as
transport problems). At the same time, the tools addressing the supply-related aspect
might have put more stress on tools supporting human resources’ motivation and
mobility. PAD51 does not provide any simulation showing the rural market’s absorption
capacity in terms of new jobs creating opportunities, while many experts claim that these
opportunities are limited in rural areas. It is important therefore to improve transport
facilities for persons seeking a job, to enable them to travel to the nearest townships and
cities. It seems that this aspect has not been taken into consideration in Program
activities.
To sum it up, there is a far-reaching convergence of Sub-Component B1 with the State
policy in the field of employment and human capital development in implementing an
active policy of counteracting the unemployment, therefore the relevance assessment is
satisfactory.
Evaluation of Participation in Sub-Component B1
It is difficult to carry out any precise evaluation of participation (the proportion of
participants to potential beneficiaries). Although the number and the characteristics of
participants are known (based on program monitoring activities), the number of potential
beneficiaries is hard to estimate due to absence of any detailed statistics. Nevertheless,
below, following a general analysis of beneficiaries, we shall try to estimate the number of
potential beneficiaries. We are taking into consideration both the actual beneficiaries and
persons with similar social and economic features who did not participate in SubComponent B1 for various reasons (discussed in the second section of this chapter).
Characteristics of Sub-Component B1 beneficiaries
The criteria of participation in Sub-Component B1 have been specified in detail. The
following groups of persons qualifying for support have been listed:
•
51
youth living in the immediate household of individuals defined under (b), individuals
who the Social Welfare or Labour Offices define as economically disadvantaged and
threatened with poverty, needing assistance to upgrade skills, employment and/or in
business opportunities;
Project Appraisal Document (PAD), Warsaw 2000.
113
•
individual who are formally registered as unemployed, who have been served notice
that they are going to be released from employment within 90 days, and/or whose
sole sources of income is an agricultural plot with three or less counted hectares52.
Besides, participation would be limited additionally by limits for concurrent use of
allowances and services. The interested persons could not receive allowances increasing
their income (e.g. benefits when attending training, payment when performing
intervention public works) under the redeployment program, if they have already been
receiving other types of benefits (e.g. unemployment benefit, social welfare assistance).
The persons concerned could not participate in training and public intervention works
organised under programs financed from PP/R concurrently, nor could they participate in
such programs if they had participated in any similar programs financed from the Labour
Fund within the last 18 months. Only persons registered formally as unemployed could
participate in Intervention Public Work Programs financed under the redeployment
program.
According to data available from MIS B1 base53, the number of persons covered by
services until the end of April 2005 amounted to 73677 in total. The number of
beneficiaries who completed the program successfully amounted to 70382.
The unemployed together with unemployed school graduates constituted the vast
majority of beneficiaries (about 93% of the total). School graduates accounted for some
5% of all beneficiaries and their share in particular services ranged from 1% in case of
temporary employment, to 7% in case of business assistance centres.
Proportions of genders were very balanced in all services, with an insignificant advantage
of women – the share of men was 49.7% and the share of women – 50.3%. But there
were considerable differences, depending on the type of services. Women used
employment-related services and business assistance centres more often than men did
(61% and 60% respectively), while men were more often involved in temporary
employment services (84%) and business incubators (79%).
As far as the education level is concerned, persons with a vocational education
background and with a post-secondary professional education were most numerous
(34% and 30% respectively). There were also some persons with university degrees –
this group constituted 9% of all the beneficiaries.
52
53
114
RDP Operational Manual, Warsaw 2000, p. 56.
Sub-Component B1 Management Information System.
Figure 25.
Beneficiaries by education levels
10%
14%
primary
vocational
30%
secondary comprehensive
post-secondary, post-s. vocational
34%
university
12%
Source: based on MIS-B1 base as of the end of March 2005
Most beneficiaries were provided services in Świętokrzyskie voivodship – this group
amounted to 22236 people as of the end of March 2005, i.e. some 17% of the total of
unemployed in this region. The smallest group of beneficiaries was from Małopolskie
voivodship – 4722 people, i.e. 2.2% of the total of unemployed there. Training services
were provided to the largest group of beneficiaries (22691 beneficiaries, i.e. 31% of the
total), while services of business incubators covered the smallest group (107
beneficiaries, i.e. 0.2%).
Detailed characteristics of beneficiaries using particular services are specified in Annex 3.
Figure 26.
Beneficiaries of all redeployment services by regions
25000
22236
20000
15000
10000
13145
12256
9102
6846
5000
5370
4722
0
Kujawsko-Pomorskie Lubelskie
Małopolskie
Podkarpackie Świętokrzyskie
Warmińsko- Zachodniopomorskie
Mazurskie
Source: based on MIS-B1 base
Potential Beneficiaries of Sub-Component B1
In order to estimate the number of potential beneficiaries of Sub-Component B1, we shall
use the estimated number of persons meeting particular criteria of participation in the
Program. The number of unemployed living in rural areas is the first restriction on
participation that can be estimated in an objective manner. According to GUS (Main
Statistical Office), such population in all voivodships covered by B3 amounted to 640
thousand people in 2003. The rate of participation (the number of beneficiaries to
potential beneficiaries) estimated on this basis would be 11% in general, but the
participation was above the average in Świętokrzyskie and Kujawsko-Pomorskie
115
voivodships. The persons concerned could not receive unemployment benefits during
Program implementation, therefore the number of unemployed without the right to benefit
can be used as another basis for approximating the number of potential beneficiaries.
According to this calculation, only 15% of persons who were eligible, benefited from SubComponent B1. In our attempt to approach closer some realistic number of potential
beneficiaries, we compared the number of individual farms up to 3 hectares. Having no
more precise statistics at our disposal (e.g. concerning the number of youths living
together with the unemployed who run a farm up to 3 hectares, who would meet the
eligibility criteria), we have to base the participation evaluation on the index quoted
above. According to this measure, the average participation in Sub-Component B2 was
close to 18% and it went much above this average in four regions.
Number of
unemployed living in
rural areas in thous.,
year 2003 (B)
Beneficiaries to the
unemployed in rural
areas (A/B) in %
Unempl. Registered in
rural areas, without
the right to benefit –
in thous., year 2002
(C)*
Beneficjenci do
bezrobotnych bez
zasiłków (A/C) w %
Individual farms up to
3 hectares (D)
Beneficiaries to
individual farms up to
3 hectares (A/D) in %
An attempt to estimate participation in Sub-Component B1
Number of
beneficiaries (A)
Table 18.
Kujawsko-pomorskie
11070
91300
12%
74340
15%
15870
70%
Lubelskie
3404
93900
10%
85613
4%
75794
12%
Małopolskie
5484
112100
5%
93830
6%
126503
4%
Podkarpackie
12904
115100
11%
29740
43%
117840
11%
Świętokrzyskie
21375
69100
31%
60251
35%
52432
41%
6737
82400
8%
69489
10%
8729
77%
Zachodniopomorskie
5588
76100
7%
61789
9%
13527
41%
Total
72562
640000
11%
472049
15%
410695
18%
Voivodship
*Estimated value, with an assumption that the proportion of the unemployed without benefits in the
whole group of unemployed is the same in cities and in rural areas.
Source: „Rocznik Pracy”, GUS Warszawa 2003 and Roczniki Województw, GUS Warszawa 2004
One may say generally, that the probable average degree of participation was between
11 and 20 percent for the whole Sub-Component B1 (i.e. about 15% on the average). It is
certain that this degree varied from region to region very much. One may conclude that
the most satisfactory participation was observed in Świętokrzyskie, Kujawsko-Pomorskie,
Warmińsko-Mazurskie and Zachodniopomorskie voivodships. The eligible rural
population of Lubelskie, Małopolskie and Podkarpackie showed a relatively lower rate of
participation.
Bearing in mind the proportion of funds allocated to Sub-Component B1 (about 14% of
RDP), one may regard the average participation rate estimated at some 15% of the
eligible persons as satisfactory in general, stressing however that the differences
between regions are disturbingly high.
116
2.1.3
Situation prior to and after Implementation of Sub-Component B1
Sub-Component B1 Utility Evaluation
We shall evaluate the program utility, comparing expected trends with those existing in
fact and the difference between the regions covered by Sub-Component B1 and the
remaining regions prior to and after the program.
If we consider the total of employed rural inhabitants, a rapid fall of their number could
have been expected both in regions covered by Sub-Component B1 and outside them as
well, before the program commencement. The drop took place in fact, but fortunately it
was not as serious as one might expect. One may regard it positive that the number of
employed was falling slower in voivodships participating in Sub-Component B1 than
outside the program area. In the years 1996-1999 the average for the total of employed
amounted to 76866 inhabitants of rural areas in B1 voivodships, while it was 72546 in the
remaining regions (thus, the difference amounted to 4320 employed). In the period of the
program implementation, in the years 2000-2003, these figures were: 62532 in B1
voivodships and 59640 in other regions, the difference amounting to 2892, i.e. being
lower by nearly a half (Figure 23). While the number of rural dwellers working in industry
was growing in the 90-ies, in the years 2000-2003 it was falling all over Poland, but the
dynamics of fall were higher in the regions covered by Sub-Component B1 (4.7 against
2.8%).
The rate of unemployment was growing in rural areas in the first half of the 90-ies and
one might expect that it would keep growing unless some preventing actions were taken.
In the years 1998-2000, the average rate of unemployment was 14.2% in rural areas of
voivodships participating in Sub-Component B1, while the average of the remaining
regions was 11.8% (the difference amounted to 2.37 pp.). Although the average national
rate of unemployment kept growing all over Poland, the growth was slower in the area
covered by Sub-Component B1 than in other regions and it even dropped insignificantly
at the end of 2003. In the years 2000-2003, the average rate of unemployment was
17.2% in regions covered by Sub-Component B1 and 15% outside this area, which
means that the difference dropped to 2.18 pp (see: Figure 24). The 4.5% decrease of
unemployment in the group of school graduates from the region covered by SubComponent B1 was a positive effect, although some drop was also observed in the
remaining voivodships – and it was even larger by 6.4%. Nevertheless, in absolute terms,
the unemployment of graduates was still on a higher level in voivodships participating in
Sub-Component B1. The dynamics of rate of unemployment growth in the group of
persons aged 15-24 was also much lower – by 4.5 pp. – than in other regions. Besides, it
should be considered positive that the unemployment of the group of unemployed aged
below 24 fell in the voivodships covered by Sub-Component B1 (by 2.9%), while it
remained practically unchanged in other regions54.
54
Regional Data Base of the Main Statistical Office.
117
Figure 27.
The total of employed rural population
90000
80000
B1 voivodships
70000
Other regions
B1 extrapolation
60000
Extrapolation of
other regions
50000
40000
1996 1997 1998 1999 2000 2001 2002 2003
Source: Consultant’s own analyses based on Regional Data Bank of the Main Statistical Office
(GUS)
Figure 28.
Rate of unemployment in rural areas (%)
24
22
B1 voivodships
20
Other regions
18
16
B1 extrapolation
14
Extrapolation of
other regions
12
10
1998
1999
2000
2001
2002
2003
Source: Consultant’s own analyses based on regional statistical yearbooks
The number of job offers submitted by employers to Powiat (District) Labour Offices
decreased in the whole economy in the middle of the 90-ies. The average drop of the
number of job offers reached 35% in the voivodships covered by Sub-Component B1 in
the years 1998-2000, while in the remaining regions – 44%. This resulted in a growth of
the number of unemployed per 1 job offer. If trends of the 90-ies had continued, the
number of unemployed per 1 job offer would have grown three times, but this index has
begun falling since 2002 and the fall was faster in the region covered by Sub-Component
B1 (the average drop by 37% in the years 2000-2003) than outside it (by 30%). Although
the index of unemployed per 1 job offer was still higher in the regions covered by SubComponent B1, the distance to other regions was reduced significantly. In the years
1998-2000 the difference in the index of unemployed per 1 job offer amounted to 187
persons (to the disadvantage of voivodships covered by Sub-Component B1), while in the
years 2000-20003 this difference dropped to 136 persons per 1 job offer.
118
Figure 29.
The number of unemployed per 1 job offer
1600
1400
B1 voivodships
1200
Other regions
1000
800
.
B1 extrapolation
600
Extrapolation of
other regions
400
200
0
1998
1999 2000
2001
2002
2003
Source: Consultant’s own analyses based on regional statistical yearbooks
The dynamics of private enterprises registered in rural areas decreased much in the
years 2000-2003 when compared with the period 1996-1999. On the other hand, it is
positive that in the years 2002 and 2003 the decrease of the number of enterprises
registered in voivodships covered by Sub-Component B1 was not smaller than in other
voivodships (Table A5 in Annex 4).
In the recent years attitudes of persons occupationally passive clearly changed. More
positive elements can be noted in voivodships participating in Sub-Component B1 than in
the remaining regions.
Although in the years 2000-2003 the growth of the number of persons willing to take up
job amounted to 47.1%, it reached as much as 111.5% in the regions that did not
participate in Sub-Component B1 (Table A7 in Annex 1). Moreover, the number of
persons passive occupationally who explained this with the fact of taking up learning and
improving qualifications increased in the regions covered by Sub-Component B1, while
the percentage of such persons dropped in the remaining regions (Table A8 in Annex A).
Voivodships participating in Sub-Component B1 were also in a better situation in terms of
those occupationally passive people who thought that they exhausted all methods of
seeking job known to them. Although the number of such persons increased by 54% in
the voivodships covered by Sub-Component B1, it increased much more in the remaining
regions – by as much as 141.6% (Table A9 in Annex 1). Besides, the number of
occupationally passive persons who were convinced of the impossibility of finding e job
due to the economic recessions dropped definitely in the voivodhips participating in SubComponent B1 (by as much as 30%). In the same period, the percentage of such
persons increased by 4.8% in other regions (Table A10 in Annex 1). In general, the
protracting recession can be accounted for the growth of such moods, but it seems that
regions covered by Sub-Component B1 were much less susceptible to them. Additionally,
the number of young unemployed people was growing less in the voivodships
participating in Sub-Component B1 than in the remaining regions and the number of
young actively employed people was falling less (the difference in dynamics by some 0.6
pp.) (Tables A11 and A12 in Annex 1).
In general, the economic situation worsened in the years 2002-2003 and this could be
seen clearly when comparing trends with the situation of the end of the 90-ies. It seems
119
however that the regions participating in Sub-Component B1 were more resistant to
negative factors.
Although it is hard to state at this stage that the program activities were the only reason
behind the levelling the negative factors in voivodships participating in Sub-Component
B1, the comparison of changes that have occurred in these regions with the remaining
areas enables one to expect a positive assessment of the program utility (this thesis will
be verified on the basis of analysis in the second part of evaluation, based on opinions
expressed by survey respondents).
Evaluation of Sub-Component B1 Effectiveness
Below, outcomes assumed for the redeployment program are compared with the actual
performance. According to PAD, the following was expected as a result of SubComponent B155:
•
increased number of new jobs and of persons running their own business as
compared to pre-project time56;
•
job placement rate of labour force redeployment institutions increased as compared
to pre-project time 57;
•
lower rates of hidden and open unemployment as compared to pre-project time58;
•
higher average incomes in participating communities59.
According to the program expected outputs defined in the Program Appraisal Document,
that: post program employment will be a minimum of 15 after receipt of employment
services, 50% for participants in retraining, 10% of employment in temporary community
employment programs, 5% of those who make initial contact for assistance in starting
small business will actually start a business and 90% of those entering business
incubators will continue to operate a small business at the end of one year. No
performance evaluation indicators were provided for the service of local development
planning, as they would be difficult to evaluate due to this service’s long-term impact60.
We are comparing the assumed outcomes with the monitoring tables, where the following
specific indicators have been specified:
•
the number of beneficiaries who completed the program successfully;
•
the rate of beneficiaries who found a job or who started a business – by service
categories;
•
the number of business incubators created;
55
The report evaluating implementation of Sub-Component B1 in 2002 emphasised problems
relating to effectiveness requirements (“Consultancy Services in Redeployment. Report for II
quarter 2002”, IMC Consulting Limited 2002). Therefore, the assumptions for indicators were
amended by Annex 3.3 to the Operational Manual adopted in January 2003.
56
Program Appraisal Document, Annex 1, Warsaw 2000.
57
Annex 2, as above.
58
Ibidem.
59
Ibidem.
60
Program Appraisal Document, Warsaw 2000.
120
•
the number of business assistance centres that were provided support.
One may state in general that the indicators set for evaluation of the program outputs
depart from the planned values. The average indicators for employment-related services,
training services and services of business incubators reached values below the planned
level -–from 12% in case of employment-related services, to 20% in case of vocational
training services.61. In case of temporary employment services and business assistance
centres the performance exceeded the planned indicators – by 150% and 100%
respectively. It is characteristic that outcomes produced in particular voivodships vary.
Below, characteristics of activities’ outcomes are presented.
Figure 30.
B1 performance against planned outcomes (1 = 100%)
3
2,5
2
1,5
1
0,5
0
vocational
training
professional
advising
temporary
employment
business assist.
centres
business
incubators
Source: Consultant’s own analyses based on MIS-B1 database
61
Based on MIS-B1 database of the end of March 2005.
121
Proportion of the employed in the number of persons who received
services provided under Sub-Component B1 by regions
Service V
Business
incubators
Service IV
Business assist.
centres
Service III
Temporary
employment
programs
Service II
Training
sercvice
Service I
Employment
service
Table 19.
Planned
15%
40%
15%
5%
80%
Whole B1 area
13%
32%
38%
10%
64%
Kujawsko-pomorskie
17%
56%
26%
12%
82%
Lubelskie
15%
12%
32%
4%
-
Małopolskie
12%
30%
40%
55%
95%
Podkarpackie
19%
61%
29%
5%
74%
Świętokrzyskie
13%
23%
70%
12%
-
100%
29%
35%
7%
-
8%
66%
35%
24%
27%
Employd to the
number of persons
who recived the
service
Zachodniopomorskie
Source: Consultant’s own analyses based on MIS-B1 database
It was expected that as a result of employment-related services, the rate of
beneficiaries who took up a job would reach 15%. According to data of the end of April
2005, 2820 out of 21175 persons who received the complete employment-related
services found a job (i.e. about 13%)62. Passing over the exceptional situation in
Warmińsko-Mazurskie voivodship63, the highest percent of employed persons was
recorded in Podkarpackie voivodship (about 19%) and the lowest – in
Zachodniopomorskie (8%). Figure A1 in Annex 1 shows how the proportion of
employment changed in time.
The number of beneficiaries who received complete training services amounted to
22174 and 7148 of them (some 32%) were thereafter employed. This service’s expected
outcome was 40%. The highest percent of people who got a job was recorded in
Zachodniopomorskie voivodship (66%) and the lowest – in Lubelskie (12%). Figure A2 in
Annex 1 shows how these shares changed in time.
It had been expected that as a result of the temporary employment services, 15% of
beneficiaries would find jobs. Out of the group of 6712 persons who received a complete
service, 2525 (i.e. some 38%) found jobs. Most people were employed in Świętokrzyskie
voivodship (70% of persons who were provided a complete service) and fewest – in
Kujawsko-pomorskie (26%). Figure A3 in Annex 1 shows how these shares changed in
time.
62
The number of beneficiaries who are employed or run a business taken from reports after the
effectiveness measuring period.
63
Two persons who used this service, found jobs.
122
It had been expected that as a result of the services supporting business assistance
centres 5% of beneficiaries who received these services and launched a business or had
been running it for less than 12 months. 157 business centres were supported from the
Project funds, i.e. by 108 more than it had been assumed initially. Out of 20252 of those
who received a complete service some 10% found a job: most of them in Małopolskie
voivodship (55 %) and fewest – in Lubelskie (4%)64.
6 business incubators were set up from the Project funds (the first one in the year 2002,
the next four in 2003 and one in 2004), although it had been planned originally that 7
incubators would have been created. No incubators were created in Lubelskie,
Świętokrzyskie and Warmińsko-mazurskie regions. The expected outcome of this service
was a 80% share of beneficiaries existing one year after entering an incubator. Presently,
the average rate is 64.5%: 82% in Kujawsko-Pomorskie, 95% in Małopolskie, 74% in
Podkarpackie and 27% in Zachodniopomorskie.
To assess the effectiveness of Sub-Component B1, one should also analyse the share of
beneficiaries of services who found a job against the number of beneficiaries planned in
contracts. The highest performance index was achieved in case of business assistance
centres (around 38%) and it was higher than p0lanned contract performance by 14 pp –
and in training services (Table A7 in Annex 1).
To sum it up, the effectiveness varied from one service type to another, but it usually was
higher than 80% of the expected performance, therefore it should be considered
satisfactory.
Analyses of Sub-Component B1 included interviews with persons involved in its
implementation at the level of Voivodship (Regional) Labour Offices and questionnaire
surveys made in two selected voivodships with:
•
Project beneficiaries,
•
Potential beneficiaries and
•
Personnel of Voivodship Labour Offices.
14 interviews with persons involved in Sub-Component B1 implementation at the level of
Voivodship Labour Offices were made (two in each of the voivodships); 100
questionnaire surveys of persons involved in Sub-Component B1 implementation at the
level of District (Powiat) Labour Offices were conducted (in all voivodships covered by
B1); 700 questionnaire surveys of B1 service beneficiaries took place in selected
voivodships: Kujawsko-Pomorskie, representing the north-western region of Poland
(more precisely, in powiat of Bydgoszcz, Inowrocław, Lipnów and Toruń) and
Małopolskie, representing the south-eastern region of Poland (specifically, in powiat of
Dabrowa, Nowy Sącz, Tarnów); 400 questionnaire surveys of potential beneficiaries in all
voivodships participating in Sub-Component B1.
64
Such a high level observed in Małopolskie voivodship resulted from the fact that not a large part
of thise service beneficiaries received a complete service (224 persons out of 616 beneficciaries
from the beginning of service delivery, from final reports).
123
2.2.1
Project Costs and other Outlays Identification and Measuring
The budget allocated to Sub-Component B1 was the second largest under the whole
RDP budget, after Component C (it accounted for some 15% of the entire RDP cost)65.
According to the plan, the distribution of costs between the parties financing SubComponent B1 was as follows:
•
Information about economy and labour market – USD 0.51 million (World Bank USD
0.5 million, Polish Government USD 0.1 million);
•
Labour redeployment services – USD 43.15 million (World Bank USD 22.2 million,
Polish Government USD 20.95 million);
•
Variable costs – USD 1.18 million (Polish Government – USD 1.18 million)
As a result of funds re-allocation, the costs planned for Sub-Component B1 were as
shown in the table below. Moreover, the table contains information about the real
utilisation of funds as of 31 December 2004.
Table 20.
Budget of Sub-Component B1 (as of 31 December 2004)*
Plan
PLN
Item
Consulting services and
labour market surveys
training
in
Performance
PLN
Performance /
Plan
%
2 029.3
2 029.3
192.1
192.1
39.6
39.6
100.00%
Consulting services and training for the
purpose of Redeployment Program
implementation
10 047.4
9 985.0
99.38%
Equipment necessary to implement the
Redeployment Program
612.8
612.8
10.00%
Redeployment Program services
116 836.4
114 597.6
98.08%
Total
129 757.6
127 456.4
98.23%
Wyposażenie
niezbędne
prowadzenia badań rynku pracy
do
A car for the Ministry of Economy and
Labour Project Team
100.00%
100.00%
* The rate of exchange has been accepted at the level of 1 EUR = 3.95 PLN.
Source: Appendix to Annex no 2 to the Agreement of 21.03.2001.
According to the latest data (of 17.05.2005), the real participation of particular subjects
was: 51.3% from the WB loan and 48.7% from domestic funds.
According to the last Quarterly Report of Project Management available (no 17), since the
beginning of the Project, the total utilisation of loan and co-financing funds from the Polish
part accounted against the plan covering the whole period of Project implementation
accounted for 90% in case of Sub-Component B166. According to the latest data obtained
from PCU directly (17.05.2005), the degree of loan absorption reached 99.43% of the
65
66
124
Project Appraisal Document (PAD), Warsaw 2000, p.60.
Quarterly Report of Project Management no 17, JKP Warsaw 2005, p.15.
budget planned after re-allocations. Costs of carrying out the survey (economic and
labour market information) and costs of labour redeployment services were lower than
planned.67
To be able to assess costs, it is important to compare unit costs by services and by
voivodships. Except for the employment-related services, all other services exceeded the
unit cost values (per beneficiary) planned for them. Business incubators were most
expensive in terms of the real unit cost against the planned one – the costs were by
nearly 50% higher than planned.
Table 21.
Average cost of Sub-Component B1 services per beneficiary (PLN)
Employment
Training
Temporary
employment
Business centres
Incubators
Planned cost
332
2146
5140
670
19165
Real cost
321
2398
5339
794
28125
Performance /
plan (%)
97%
112%
104%
119%
147%
Service
Source: Consultant’s own analyses based on MIS-B1 base.
The highest average cost per beneficiary was achieved in Warmińsko-Mazurskie
voivodship, despite the fact that this was one of the three regions (beside Lubelskie and
Świętokrzyskie), where the most expensive service, i.e. business incubator, has not been
offered at all. This results from the very high cost per beneficiary in the group of
employment-related services, caused by the very low number of beneficiaries
participating in this service68.
Figure 31.
Average cost of Sub-Component B1 services in PLN per beneficiary
by voivodships
3500
3000
2500
2000
1500
1000
500
0
Kujawsko-Pomorskie Lubelskie
Małopolskie
Podkarpackie
Świętokrzyskie Warmińsko- Zachodniopomorskie
Mazurskie
67
The difference between the performance and the plan results first of all from changes in USD
rate of exchange. One should expect therefore that the costs of surveys exceeded the planned
value much more.
68
Only 2 persons were provided this service in Warmińsko-Mazurskim voivodship, this fact causing
that unit costs were 3.5 times higher than this service’s average for all voivodships.
125
Source: MIS-B1 base
The figure below presents unit costs in a breakdown by voivodships and services as a
percent of the average cost for the given services. Employment-related services were
most expensive in Lubelskie (about 350% of the average for all voivodships). Besides,
the temporary employment service was also most expensive in Lubelskie (about 150% of
the average).
Figure 32.
Differences in the average unit cost (PLN thousand) in SubComponent B1 by voivodships and services
4
3,5
3
2,5
Employment
Training
Temporary training
2
Business assist. centres
Incubators
1,5
1
0,5
0
KujawskoPomorskie
Lubelskie
Malopolskie
Podkarpackie Świetokrzyskie WarminskoMazurskie
ZachodnioPomorskie
Source: based on data from Report of May 2004, IMC Consulting Limited, June 2004.
Additional and alternative costs
Survey respondents – persons involved in Sub-Component B1 implementation at the
level of Voivodship Labour Offices indicated that there were some additional costs
resulting from the need to employ additional personnel in Voivodship Labour Offices to
help with the Sub-Component implementation. On the other hand, having gained
experience when working on the Project, these persons were useful later on, at other EUfinanced projects and namely these persons are now assigned responsibility for
implementation of new projects financed from structural funds. The majority of personnel
of District (Powiat) Labour Offices (67.7%) declared that no additional costs were incurred
and only 6.3% of them declared that such costs had to be paid.
As far as additional costs beneficiaries might incur due to participation in the
redeployment project are concerned, only 38% of them were able to express any opinion
on this issue. But 55% of these persons declared that they did not incur any costs at all,
44% declared travelling costs and 1% - costs of taking exams.
Answer to the question, whether the Project target group members who were provided
services on a free of charge basis would pay for it is one of indicators enabling one to
evaluate the effectiveness of outlays (if a vast majority of respondents declared the
possibility of self-financing, a suspicion might exist that some expenses were
126
unnecessary, i.e. the economy was ineffective69). According to respondents’ answers, a
vast majority would not participate in the Project (“definitely not” or “rather not”), if they
had to pay for it (this response was given by 67.3% of the respondents). There was a
group of 201% persons however, who declared that they might pay for the program.
A more detailed analysis of responses shows that the most numerous groups of persons
who “would definitely not participate” if they had to pay for the program consisted of
persons aged 40-59 (45.5% of respondents), with a primary education (47.3%), living in
one-person households (47.1%), with the income up to PLN 1000 (35-38.5%).
Figure 33.
Would you participate in the Program, if you had to pay for it?
90,0%
80,0%
70,0%
60,0%
50,0%
40,0%
30,0%
20,0%
definitely not
PLN 1001 - 1250
PLN 751 - 1000
PLN 501 - 750
PLN 251 - 500
up to PLN 250
single person’s
household
aix persons’
household
and more
university
primary
secondary
(comprehensive)
vocational)
aged 40-59
aged 25-39
aged 18-24
man
woman
malopolskie
0,0%
kujawskopomorskie
10,0%
rather not
Source: Consultant’s own analyses based on survey made by PBS in March 2005
As far as the level of costs the beneficiaries would be ready pay, they most often were
not able to specify this (35.2% of respondents), 12,9% declared up to PLN 50, 11.3% from PLN 51 to 100, 7% PLN 101-200 and 4.8% more than PLN 200 (the rest of the
respondents declaring PLN 0). The rates declared by the respondents were strongly
correlated with the household’s net income per capita.
To sum it up, the lowest net costs were incurred in those voivodships and in case of
those services, where the largest number of beneficiaries were and this may also be
regarded as the given service’s success indicator. The Project generated no additional
costs on any large scale and this fact should be assessed as positive. Moreover, its
economy seems also satisfactory in general.
2.2.2
Project Outputs and Outcomes Identification and Measuring
Outputs generated under Sub-Component B1
Each of the services provided specific products, according to what was specified in the
Instruction.
69
The idea behind these programs is to fill the gaps, instead of replacing private initiatives.
127
Outputs resulting from training services
The training services included vocational training, general training and literacy training,
formalised training in small business running. Depending of the given voivodship
employers’ needs, various types of training were implemented, e.g. training for heavy
machinery operators or computer training.
Outputs resulting from employment-related services
Professional and social advisory services, providing information about the labour market,
assessment of skills, abilities and interests, job seeking programs and job clubs, job
exchange and employment services, resettlement services.
Outputs resulting from temporary employment services
The temporary employment services included: environment reclamation/treatment,
reconstruction of public infrastructure, support to social and public institutions (e.g.
schools, nursing homes, health centres).
Outputs resulting from business assistance centres:
Accountancy, financial, legal, marketing and sales-related services, assistance in
dialogue with the local administration and other consulting services provided to
entrepreneurs intending to launch a business or running a business for 12 months.
Outputs resulting from business incubators:
Premises and facilities, technical assistance, joint use of services and equipment.
Outputs resulting from local development planning:
Subsidies for planning and developing proposals of studies and promotion materials,
local business potential studies, preparation of promotion materials on the local business
potential and investment projects.
Evaluation of Sub-Component’s net outcomes and outputs
External outcomes
Questionnaire surveys of persons involved in Sub-Component B1 implementation at the
level of Regional (Voivodship) and District (Powiat) labour Offices show that the following
can be considered to be the most important external effects of the programme:
•
beneficiaries’ and service providers’ increased confidence in assistance programs,
•
strengthened position of local service providers,
•
improved public infrastructure, mainly due to the temporary employment service,
•
experience useful in applying for other funds gained (e.g. support from EU funds).
All persons involved in implementation of Sub-Component B1 at the level of Voivodship
Labour Offices and covered by the survey indicated the increased confidence of
beneficiaries and service providers in assistance programs. The respondents noted also
that as Sub-Component B1 was progressing, the number of potential beneficiaries
reporting to the program was increasing too. Many beneficiaries learned about SubComponent B1 from persons who had already participated in RDP. This is confirmed by
128
questionnaire surveys of beneficiaries, where a significant percent of respondents had
learned about Sub-Component B1 from their relatives or friends (17.5% in case of
training, 27.3% in case of temporary employment, in case of employment-related services
– 13.2% and in case of business assistance centres – 9.3%) and 43% of the respondents
from Powiat (District) Labour Offices stated that more beneficiaries would have benefited
from the program in the past, if there had been enough places and in the future – if an
opportunity like this emerged.
All persons involved in implementation of Sub-Component B1 indicated also that the
service providers’ standing strengthened. Due to the new, decentralised approach,
namely – the service projects being prepared by service providers instead of labour
offices – the commitment of local service providers increased much. Service providers
gained experience in project writing and management, which is indispensable now, when
implementing the European Social Fund projects for example.
Apart from renovations of such public utility facilities as firehouses for example, a very
positive effect of the temporary employment service in the form of improved land
melioration was indicated. In the opinion of one of the respondents, the positive external
effect was so significant in Kujawsko-Pomorskie voivodship, that the temporary
employment service was confused with an assistance program intended to improve the
land melioration.
The Rural Development Project envisaged a potential synergy between Sub-Component
B1 and Component A. It was assumed that persons trained under Sub-Component B1
would wish to launch their own businesses and would be able to apply for micro-loans
and grants. But as there was a delay in Component A activities, the effect of synergy was
much weakened. For example, the start of the business assistance centres service was
suspended for one year with regard to the delay in Component A implementation.
Moreover, the RDP construction assumed a potential synergy between Sub-Component
B1 and Sub-Component B3. The objective of Sub-Component B3 was to increase the
effectiveness and the efficiency of local and regional administration units in absorption of
investments. All respondents indicated that the experience gained by labour offices and
self-governments when preparing proposals and when implementing projects under SubComponent B1 helped in absorption of EU funds. The local development planning service
was of a greatest merit in this respect. For example, powiats ordered service providers to
prepare feasibility studies of particular projects as an element of the local development
planning services. These studies were then used as an element of applications for
structural funds.
None of the respondents indicated any negative external effects of Sub-Component B1,
such as re-allocation effect or the effect of employees being pushed out by participants of
the program.
2.2.3
Sub-Component B1 Cost and Benefit Analysis
It is difficult to assess economic effects of surveys on the labour market and of the local
development planning service, due to these tasks’ long-term nature. As far as the
remaining services of Sub-Component B1 are concerned, one may make an approximate
comparison of costs of creating a new job placement with the benefits resulting from
employing an additional person.
129
According to MIS quarterly reports, the expected cost of creating one job placement was
PLN 15600, while the real cost amounted to PLN 10169 (as of 30 September 2004).70
Our computations show that excluding the local development planning service, the
average cost of creating one job placement amounted to PLN 8327 for Sub-Component
B1 services71 (as of the end of March 2005). Bearing in mind how diversified the services
of Sub-Component B1 were, one should analyse costs per one employed for particular
services. The highest cost per one employed (newly launched business) was observed in
business incubators and the lowest – in employment-related services.
The table below shows costs of creating one job placement in a breakdown by services.
Table 22.
Average cost of services under Sub-Component B1 per one
employed beneficiary (PLN)
Service
Employment
Training
Temporary
employment
Business
assistance centres
Incubators
Cost / employed
beneficiary
2519
7614
16214
8168
35462
Source: Consultant’s own analyses based on MIS-B1 base
Direct benefits resulting from implementation of Sub-Component B1 include first of all
effects in the form of new job placements and newly launched businesses. These effects
translate into such economic benefits as reduction of the total of unemployment benefits
paid out, increase of the Budget income from income tax and turnover tax. According to
computations presented in section IV.6 (Analysis of social and economic effects of the
Project), the value of increasing Budget incomes as a result of employing one
unemployed person in 2003 ranged from PLN 3263 to PLN 10533 per year, depending
whether the individual was paid the minimum salary or the average one. On the other
hand, the average annual cost of Budget support for one unemployed was estimated at
PLN 1319. Thus, the total benefits for the Budget resulting from reducing the
unemployment by one person ranged from PLN 4582 to PLN 11852. Consequently, this
amount can be regarded as the benefit of creating one new job placement. This would
also be a benefit in case of persons taking up an additional off-farm job. Additionally, in
case of business assistance services and business incubators, one should include
benefits resulting from employment of additional persons in a newly-launched business
(or in a company supported by the incubator). The outcomes of interviews conducted with
the persons involved in implementation of Sub-Component B1 show that in case of these
two services, the benefits may be of a long-term nature. In many voivodships, despite the
fact that the process of services ended, business assistance centres and business
incubators set up under the Project continued their activity.
When evaluating the benefits, one should additionally consider positive side effects
resulting from activities of Sub-Component B1 (these effects have been described in
section 2.2.2.). Unfortunately, it is impossible to estimate their value at this stage of
analysis. The outcomes of interviews with the persons involved in implementation of SubComponent B1 show that these effects were particularly significant in case of the
temporary employment services.
70
Inception Report. RDP Quantitative Evaluation, 17 January 2001. p.53.
14505 beneficiaries were employed under 5 types of services (except for the local development
planning). The contractual amount for these five services amounted to around PLN 120.79 million
(MIS-B1 database).
71
130
A comparison of costs of creating a new job placement with potential benefits shows that
the costs were relatively low in case of the employment-related services72. They were
also low in case of training services and business assistance services. Considering the
significant positive external effects (such as improved public infrastructure), the cost of
creating a new job placement under the temporary employment service is justified from
the economic point of view. On the other hand, it seems that the costs incurred in case of
business incubators, when compared with possible benefits, are too high. Moreover, the
interviews with the persons involved in implementation of Sub-Component B1 show that
this service may bring more benefits in cities instead of rural areas, where shortage of
premises for running a business in not one of the most important barriers to launching or
continuing a business.
2.2.4
Long-Term Impact of Sub-Component B1
Considering the short time that passed from the end of Sub-Component B1, it is not
possible to evaluate the sustainability of its effects in full. Latest contracts were signed
with providers of services in the year 2004. Thus, it was impossible to evaluate, how long
the job placements and the companies would survive. But, the interviews and the
questionnaires enable one to indicate some elements that will have a long-term impact.
The change in beneficiaries’ attitude should certainly be regarded as a long-term positive
effect and this fact was emphasised by all regional consultants who were interviewed.
Strengthening such local service providers as local consulting companies or NGOs will
also have a positive long-term impact. Studies prepared under the local development
planning services represent another positive effect of this nature. They can be used to
stimulate and attract investors and to absorb structural funds.
2.2.5
Activities of Sub-Component B1
Services of Sub-Component B1 were provided through local service providers selected
by Regional (Voivodship) Labour Offices. Implementation of Sub-Component B1
commenced on 1 October 2001.
There were delays in Sub-Component B1 implementation from its very beginning.
Tenders to conduct economy and labour market surveys were beyond the budget,
therefore the scope of tasks was reduced and the deadline for choosing a contractor was
postponed. The contract for surveys was signed in December 2001 with Polska Sieć
Doradców Biznesu company (PSDB). The proper phase of the labour market survey
began in October 2002. By the end of March 2003 a pilot survey in Lubelskie voivodship
and the first series of surveys in all seven voivodships were conducted under the task
titled “Labour Market Survey”. By the end of September 2003 all surveys were conducted
and a final report was prepared73.
At the end of the year 2001 a procedure of selecting an entity responsible for technical
assistance provision was taking place. In October 2001 a contract was signed with IMC
Consulting Ltd. Management Information System of Sub-Component B1 (MIS B1) was
started at the turn of May and June 2002.
72
If an individual who took up a job as a result of this service had been unemployed, the very
benefits resulting from non-payment of the unemployment benefit for a period of 6 months
(assuming the basic monthly salary of PLN 504.20) would be higher than costs of creating a job
placement.
73
According to the Inception Report. RDP Quantitative Evaluation, 17 January 2001.
131
At the end of August 2001 regions implementing Sub-Component B1 were issued a
decision of the Ministry of Finance granting them funds from the reserve of purpose for
financing projects within the frames of Sub-Component B1. In the fourth quarter of 2001,
competition procedures for selecting service providers were launched in voivodships.
Voivodship Labour Offices, in co-operation with regional consultants, prepared bidding
documents and commenced evaluation and selection of service providers. By the end of
December 2001, the total of 20 contracts for temporary employment, 45 vocational
training contracts and 5 business assistance contracts were signed. By the end of 2001
Redeployment Services commenced in the first regions. Difficulties with transferring
funds for tasks caused that at the beginning of 2002 the process of signing service
contracts was suspended in particular voivodships. The process was resumed in the
second quarter of 2002, but difficulties with timely transfer of funds continued until the
third quarter of 2002 and this caused service providers’ negative perception of the
Project. Additionally, the assumed effectiveness indicators turned out to be unachievable
in some cases. This was why the rules of Sub-Component B1 implementation were
amended from January 2003 on. These changes allowed for more efficient
implementation of the Project and for a better utilisation of funds. After changes adopted
in January 2003, the Project was continued without any significant problems.
At the end of March 2005, 2206 contracts were signed for all services of Sub-Component
B1 in voivodships and 2187 out of them were completed. The total value of all contracts
signed amounted to PLN 132.7 million74.
Figure 34.
Schedule of Sub-Component B1
Source: Consultants own analyses
Evaluation of activities
Implementation of Sub-Component B1 was much delayed. The first contracts were
signed no sooner than in 2001. Due to procedural problems at the beginning of SubComponent B1, significant delays in payment of funds occurred, causing service
providers’ negative perception of the Project. The delayed execution of the labour market
survey should also be assessed negatively75. The surveys were carried out in two
74
According to MIS-B1 base.
This was also indicated by respondents involved in implementation of Sub-Component B1 at the
level of Voivodship Labour Offices.
75
132
phases, in the years 2002-2003, i.e. concurrently with the services. Thus, they could have
been used in provision of services in the years 2003 – 2004. Consequently, one of the
survey purposes (namely, supporting the process of redeployment services) has not been
fully achieved.
2.2.6
Case Study for Kujawsko-Pomorskie and Małopolskie voivodships
Kujawsko-Pomorskie voivodship represents the north-western region and Małopolskie
voivodship – the south-eastern region. The study was prepared on the basis of the
questionnaire survey and interviews.
The above voivodships were selected due to the variety of problems in their rural areas
and the fact that all services of Sub-Component B1 were implemented there. Besides, the
choice was determined by the possibility of reaching Project beneficiaries, which was
impossible in Zachodniopomorskie voivodship for example76.
4 interviews were made in Kujawsko-Pomorskie and in Małopolskie with persons involved
in Sub-Component B1 implementation at the level of Voivodship Labour Offices (two in
each voivodship); 30 questionnaires were responded by persons involved in SubComponent B1 implementation at the level of Powiat Labour Offices (14 in KujawskoPomorskie and 16 in Małopolskie); beneficiaries of Sub-Component B1 responded to 700
questionnaires (400 and 300 respectively) and potential beneficiaries responded to 140
questionnaires (50 and 90 respectively).
We consider as potential beneficiaries such individuals who had been entirely eligible to
participate in the Redeployment Project, but who did not participate in it for various
reasons. These persons constitute a reference group for real beneficiaries in terms of
their effectiveness in job seeking, improving qualifications and occupational
redeployment.
The unemployed accounted for 80.6% of this group of our sample, 15.6% feared that they
would lose job soon, a farm up to 3 counted hectares was the only source of income for
4.3% of the respondents and in case of 4.9% parents were unemployed or threatened
with unemployment (1.6%) or a farm up to 3 counted hectares was the only source of
their parents’ income (2.2%).
General Evaluation of Sub-Component B1 and of Particular Services
The beneficiaries gave very high marks to all service types. More than 80% expressed a
positive opinion about the Project. The employment-related services were given most
positive marks (as much as 87.6% of beneficiaries regarded is as good or very good), the
business assistance centres took the second position (82.2%), being followed by training
services (80.8%) and temporary employment (80.3%). Respondents from Powiat Labour
Offices involved in Sub-Component B1 implementation were also of a positive opinion –
78.8% of officers gave it “good” or “rather good” marks. As far as particular services were
concerned, most officers gave a positive mark to the training services (86.5%) and fewest
– to the business incubators (14.6%), but in the latter case as much as 75% were not
able to evaluate this service at all and this is where the low percentage of positive marks
resulted from. On the scale from 1 to 5, where 5 was the best mark, services were given:
76
According to information of PBS, the Voivodship Labour Office in Zachodniopomorskie
voivodship does not have teleaddress data of B1 beneficiaries and the responsibility to collect it had
been delegated to service providers, who ignored the issue.
133
vocational training 4.13, business assistance centres 4.00, local development planning
3.90, temporary employment 3.81, business incubators 3.75, employment-related
services 3.72.
Figure 35.
Ranking of services in B1
Vocational training
4,2 4,1
Local development
planning
4,0
Temporary employment
3,8
3,9
3,6
3,8
3,4
Business
incubators
3,7
3,8
Employment-related
services
4,0
Business assistance
centres
Source: Consultant’s own analyses based on PBS survey of March 2005.
Thus, the general opinion on the Project was good and the average mark was close to 4
(3.96).
Evaluation of Sub-Component B1 Relevance to Powiat Needs
Officers’ assessment of the program relevance seems to be confirmed by the outcomes
of analysis which was carried out earlier. 74% of the respondents stated that the services
responded to needs of the powiat to a high degree and much less persons, 17.7% were
of the opinion that Sub-Component B1 responded to these problems to a low degree or
not at all. Similar evidence is provided by interviews with persons involved in SubComponent B1 implementation at the level of Regional (voivodship) Labour Offices.
According to these opinions, the situation on the labour market before the program had
been very bad due to the high level of unemployment, the low level of qualifications and
the rural population’s low activeness. This is why they assessed the utility of a program
like this highly.
Evaluation of Effectiveness of Sub-Component B1 Objectives Achievement
Specific objectives of Sub-Component B1 were: (i) to improve qualifications, (ii) to provide
employment, (iii) to adjust the human capital to requirements of the local labour markets.
As far as the first objective is concerned, the effectiveness of improving inhabitants’
qualifications by the means of the programme was relatively high in the opinion of powiat
officers – 66.7% of them stated that the qualifications improved when compared with the
situation in 2000. Beneficiaries’ opinions seem to confirm the same. In case of such
services oriented towards retraining and improving qualifications as training and
employment-related services, 73.5% of the Training services beneficiaries stated that
they gained new qualifications, 18.1% improved their previous qualifications and only
3.1% did not gain any new skills or qualifications. In case of employment-related services
these proportions were 67.2%; 32.8% and 0% respectively.
134
In case of the second objective, 77.1% officers of District (Powiat) Labour Offices stated
that Sub-Component B1 helped beneficiaries to adapt to requirements of the local labour
markets (8.3% out of them indicated that this was to a very high degree). They were less
certain, whether this adaptation would be effective in case of requirements of more
distant employers (1% were of the opinion that the program helped very much and 51%
that it rather helped). The beneficiaries were slightly less optimistic in the assessment of
their chances on the labour market, as 48% of them stated that their chances did not
change as a result of Sub-Component B1, but nearly as many respondents (47.8%)
concluded that their chances increased. Only 1.2% claimed that their chances decreased.
Responses varied, depending on the service type. Temporary employment gave least
chances for finding a job (72.2% of the beneficiaries stated that their chances did not
change), while business assistance centres increased these chances most (61.7% of this
service beneficiaries were of this opinion).
Rather
grew
Didn’t
change
Rather
decreased
Definitely
decreased
Hard to say
Beneficiaries’ assessment of how their chances on the labour
market have grown
Definitley
grew
Table 23.
Training
7,2%
39,6%
50,7%
0,6%
0,6%
1,4%
Temporary employment
2,0%
25,3%
72,2%
0,5%
Employment related service
15,7%
39,7%
36,4%
Business Assist. Centres
15,9%
45,8%
32,7%
Average
10,2%
37,6%
48,0%
8,3%
0,5%
1,9%
3,7%
1,2%
4,5%
Source: Consultant’s own analyses based on survey outcomes
As far as Sub-Component B1 effectiveness in achieving the objective of finding a job on
local labour markets is concerned, 10.4% of the officers stated that the program helped
definitely and as much as 70.8% that it rather helped (18.8% were of the opinion that it
had no effect on the chances to find a job on more distant labour markets). Most of the
officers were not able to specify the percentage of beneficiaries who found a job as a
result of the program in fact (45.8% stated: it is hard to say). In the group of these
persons who managed to quote an estimated percentage of beneficiaries who found a
job, 6.3% stated that more than 75% found a job, 10.4% stated that 50-75% and 12.5%
that 40-50% found a job and 5.2% that 30-40%. The beneficiaries expressed different
opinions about their job seeking experience. Around a half of them (47.3%) did not take
up a job after the program, nor did they launch their own business, but the effects of
some services were very good. For example, 32.3% of those who attended vocational
training declared that they got a job immediately and in the nearest area, 13.4% found a
job later (i.e. more than 3 months after the program completion). The lowest proportion of
persons found a job in case of the temporary employment services, but 19.2% out of
them found it immediately and in the nearest area, while 14.1% - later, but also in the
nearest area. 62.6% did not find any job, nor did they launch their own business.
135
Job found later
outside the
nearest area
Own business
launched
No own business
launched, no job
found
13,4%
1,4%
1,4%
44,8%
Temporary emplyment
19,2%
1,5%
14,1%
1,5%
1,0%
62,6%
Own business
continued
No own business
launched, no job
found
Business launched
later in the nearest
area
Job found later in
the nearest area
1,7%
Job found later in the
nearest area
32,3%
Business launched
immediately in the
nearest area
Vocational training
Job found
immediately in the
nearest area
Job found
immediately
outside the
nearest area
Evaluation of employment effectiveness after the redeployment
services
Job found
immediately in the
nearest area
Table 24.
Employment-related
services
16,5%
37,2%
1,7%
1,7%
Business Assistance
Centres
11,2%
22,4%
13,1%
4,7%
43,0%
10,3%
38,3%
The Project assumed also own business launching, but most of the officers were of the
opinion that it did not bring any effect in the form of launching one’s own business in the
area of residence (56.3%), although 34.4% stated that it definitely or rather helped launch
a business in the area of one’s residence. As far as launching a business outside the
area of residence (with the need to move), officers of District (Powiat) Labour Offices
stated (80.2%) that the redeployment program had no influence on this and only 9.4%
were of the opinion that it helped. Estimating the percentage of individuals who launched
their own business turned out to be a difficult task – 71.9% of the officers stated that it is
hard to say, 11.5% indicated 0%, 8.4% - 1-10% and the same proportion indicated the
rate above 10%. On the other hand, the beneficiaries expressed positive opinions about
two types of services that were typically business-oriented. 37% launched their own
business having participated in the business assistance centres services, i.e. the
proportion was nearly the same as in case of those who did not take a job or a business
activity 38.3%). Additionally, as much as 24.3% found a job in the nearest area, although
they did not launch their own business. In case of employment-related services, the rate
of employment was lower – 48% declared that they did not take up any job or business
activity, but as much as 37.2% launched an own business in the nearest area.
136
Perecentage of Powiat Labour
Offices officers’ responses in %
Figure 36.
Percentage of individual who found a job according to opinion of
District (Powiat) Labour Offices’ personnel
14,0
12,0
10,0
8,0
6,0
4,0
2,0
0,0
do 10 %
11 - 20 % 21 - 30%
31 - 40%
41 - 50%
51 - 75%
> 75%
Percentage of persons who found a job
As far as the most important issue is concerned, i.e. new employment, is concerned,
47.9% of respondents from District (Powiat) Labour Offices stated that new job were
created indeed (10.4% out of this group were definitely convinced of this). On the other
hand, 29.2% stated that rather no new jobs were created and 4.2% that definitely no new
jobs were created. 18.8% of officers indicated that the newly-created jobs had nothing in
common with the redeployment program.
In terms of objectives effectiveness, the question whether participation in SubComponent B1 was of any real importance for finding a job was of a key significance. The
beneficiaries who really took up a job after the program expressed rather uniform
opinions in this respect. The beneficiaries stated that it was easier for them to find a job
as a result of all Sub-Component B1 services (this percentage ranged from 51.4% in
case of temporary employment up to 69.7% in case of business assistance centres). But
at the same time, there was a relatively high percentage of those who stated that the
Sub-Component B1 did not contribute to the fact of finding a job (there were 48.6% of
such responses in case of temporary employment and 28.8% in case of business
assistance centres’ beneficiaries). Only 0.5% of those who took up a job after the
program stated that the redeployment services hampered this.
It is also important that – and this provides an evidence to services’ effectiveness – that in
most cases those beneficiaries who managed to find employment, got a job which was
adequate to the service type they participated in. In case of training, 63.1% of
respondents declared that the type of training they attended was adequate to the job they
found thereafter and this thesis was also confirmed by the high percentage of business
assistance centres’ beneficiaries (68.1%). Moreover, 41.7% of temporary employment
beneficiaries stated that they were offered a job at the place where they were temporarily
employed. What is interesting, officers from District (Powiat) Labour Offices were less
enthusiastic in their assessment of the effect of Sub-Component B1 on employment
opportunities: 43.2% of them thought that the program had no or very little (insignificant)
influence here, but at the same time 18.2% stated that many of the beneficiaries owed
their new jobs to the redeployment services namely.
To be able to formulate any recommendations, it is important to analyse the situation of
those persons who did not find a job after the program, although they participated in it.
137
The reasons were different for beneficiaries of particular services. In case of training,
most persons blamed the lack of job offers in their professions (62.7%). The second most
important reason quoted was too much competition from the part of persons with similar
qualifications acquired as a result of training (i.e. too many persons were trained in the
same field and in the same area) – this explanation was given by 13.0%. Beneficiaries of
the temporary employment services referred to the fact that it was impossible to continue
working at the place of their temporary employment (64.5%), the lack of job for persons
with the given type of qualifications being given as the second most important reason
(33.1%) and too much competition of persons experienced in the same field taking the
third place (8.1%). In case of employment-related services, the same most important
reason of not taking up a job was referred to – too little job offers for persons with the
given type of experience (59.6%), the fact of taking up education being given as the
second most important reason (19.2%), but on the other hand it is a matter of concern
that 11.5% stated that they were not looking for a job at all. 56.1% of business assistance
centres’ beneficiaries did not launch any own business due to the lack of sufficient funds
and the next 14.6% took up education instead of a job and the same proportion of
respondents declared that they had not intended to launch any business from the very
beginning.
The inability to find a job had similar reasons in the voivodships covered by the survey,
the lack of job offers being the most important reason both in Kujawsko-Pomorskie
voivodship and in Małopolskie, although more respondents indicated this as the main
reasons in the first of these two regions.
There were few optimists expecting to find a job or to launch a business among persons
who did not find any job immediately after the program. As much as 62.5% of
employment-related services’ beneficiaries and 80.6% of temporary employment
beneficiaries from this group were of the opinion that their chances would not change
later on (in other words, they would remain unemployed), but on the other hand not very
few respondents hoped that their chances for employment would grow in time – the
percentage of such persons ranged from 16.1% in case of temporary employment
beneficiaries to 26% in case of employment-related services.
As far as potential beneficiaries’ general assessment of Sub-Component B1 effectiveness
is concerned, there were most such respondents who regarded it as average (36.4%),
21.2% considered the effectiveness to be rather good or even very good, but 18.6%
assessed the program as bad or very bad even. Most negative opinions were expressed
by respondents from Zachodniopomorskie voivodship and most positive – by those from
Kujawsko-Pomorskie. Most aged respondents and those with a vocational education
background were most critical, but there was also a considerable share of persons with
university degrees in this group. In general, a significant part of the respondents knew
nothing about (30.2%) or had doubts concerning the utility of redeployment programs for
inhabitants of their gmina. But a half of the respondents stated that such programs were
useful (including 17.5% who marked the “very useful” answer). 3.8% of respondents were
of the opinion that such programs were of no use at all.
Evaluation of Participation in Sub-Component B1
The surveys were expected to provide an answer to the important question, whether the
program solved the problems of the given region or group of persons entirely or whether
it was only a step in the right direction. Responses given by officers of District (Powiat)
Labour Offices showed that 34.4% of them considered the attendance to be low when
compared with the needs. At the same time however, an opinion was prevailing that
138
many persons (37.5% of the respondents thought so) or even very many (10.4%)
benefited, considering the number of those in need. This thesis is also confirmed by
opinions of persons involved in Sub-Component B1 implementation at the level of
Regional (Voivodship) Labour Offices. Immediate effects (i.e. fall of the unemployment
rate in the voivodship) could not be seen due to programme’s insufficient scale,
considering the needs. But in general, Sub-Component B1 was mainly assessed as an
assistance to people who had not been provided any support from the part of powiat
labour offices before, i.e. farmers who owned small farms but were not eligible to apply
for the status of an unemployed person.
Identification of Sub-Component B1 External Outcomes
Officers of District (Powiat) Labour Offices stated that labour redeployment services
resulted in additional benefits for their powiats (38.5%), although the proportion of those
who said just the opposite was the same (thus, this depended on powiat). Positive effects
referred to included increased personal income of beneficiaries (56.8% of indications),
increased income for gmina (45.9%), increased investment attractiveness of the area
(40.5%) and development of tourism (35.1%). As much as 78.6% of the officers
responding the questionnaire stated that the local development service enabled their
powiat to gain experience which would be useful when applying for other EU funds, but
this depended on the region – 10.7% of the officers stated that no such effect occurred
and 10.7% - that there was no connection between Sub-Component B1 and the ability to
apply for EU funds.
In the opinion of persons involved in Sub-Component B1 implementation in both
voivodships, despite the fact that immediate effects (i.e. reduced unemployment rate in
the region) could not be seen due to the insufficient scale of the program in comparison
with the needs, such immeasurable positive effects as beneficiaries’ increased selfconfidence and the resultant stimulation of their activeness were indicated. Additionally,
such very important external effects were mentioned as: beneficiaries’ and service
providers’ increased confidence in assistance programs, strengthened position of local
service providers and improved public infrastructure – mainly as a result of the temporary
employment services.
Sub-Component B1 Efficiency Evaluation
According to opinions expressed by the beneficiaries, Sub-Component B1 efficiency was
definitely positive. As much as 75.7% of the respondents were of the opinion that benefits
were greater than costs, 16.8% - that it was at the break-even point level and only 5.2% that the costs exceeded the benefits. Officers of District (Powiat) Labour Offices were
less optimistic – only a little more than a half found the effectiveness to be positive
(56.3%) and 21.2% expressed negative opinions.
In a more specific breakdown into costs and benefits, most of powiat officers declared
that there no additional costs were incurred with regard to Sub-Component B1, except for
those planned. On the other hand, when analysing additional benefits, the proportions of
those who noticed such benefits and those who did not were similar (38.5% and 36.5%
respectively). As far as the first group is concerned, the following benefits were listed:
1. Increased personal income
56.8%
2. Increased income for gmina
45.9%
3. Increased investment attractiveness (e.g. inflow of new business) 40.5%
139
4. Development of tourism
40.5%
Evaluation of Sub-Component B1 Outcomes Sustainability
Most officers of District (Powiat) Labour Offices (52.1%) stated that effects of SubComponent B1 would be of a long-term nature (5 years), 8.3% of the respondents being
definitely convinced of this. At the same time, there was a relatively large group (40.6%)
of officers who thought that this would rather not be possible and additional 6.3% were
definitely negative about this. Thus, the opinions were almost equally divided between
sceptics and optimists. But a vast majority of the respondents stated that the effects
would not last longer than one year (the opinions did not differ much from service to
service and ranged from 60.9% in case of employment-related services to 71.6% in case
of temporary employment, the latter being of a temporary nature anyway). Employmentrelated services were given one of the worst general marks, but on the other hand they
showed the longest sustainability of the positive impact after Sub-Component B1 closing
in beneficiaries’ opinion (34.8% of the beneficiaries stated that the effect would last for
more than one year at least).
Availability of Information about Sub-Component B1
Information about labour redeployment services should have been commonly available to
anyone potentially eligible. This was the role of local authorities, among others. Most of
officers of District (Powiat) Labour Offices (60.4%) assessed information availability
positively, but 16.7% of them were of a critical opinion in this matter. Beneficiaries’
opinions varied much, depending on the service type. Beneficiaries of business
assistance centres gave lowest marks to information availability (as much as 50.5% of
them assessed it as bad, 15.9% out of them indicating the “very bad” answer). On the
other hand, beneficiaries of temporary employment services were of a positive opinion in
this matter (45.5% of good marks) and similarly – beneficiaries of training services (41%
were satisfied with the availability of information).
According to the officers, labour offices were the best sources of information (this was
what 62.5% of the respondents said), with the local press taking the second place (8.3%),
gmina administration the next one (6.3%) and the Internet the last one (2.1%). The
beneficiaries agreed that labour offices and gmina administration offices were the best
sources of information about Sub-Component B1, but they also indicated the contribution
of their acquaintances and relatives in circulating information about it. For each service
type a different source of information was indicated as the second most important one
after labour offices. In case of temporary employment as much as 27.3% of persons
learned about the program from relatives or friends, in case of training gmina
administration played a significant role (21.7%), in case of employment-related services,
gmina administration, friends and relatives made equal contributions to dissemination and
in case of business assistance centres gmina administration was immediately after labour
offices.
According to our analysis, there was no information campaign in media with the broadest
coverage, i.e. local television, radio and press in this case (although it is hard to say,
whether press reading rate and influence would be sufficient to increase the awareness
to the same degree as the two remaining media).
Most of the potential beneficiaries covered by the survey did not hear about the labour
redeployment program implemented under Sub-Component B1 (68.2%). The highest
percentage of those who did not hear was in Małopolskie voivodship (more than 74%). As
far as gender and age groups are concerned, their degree of being informed (or
140
underinformed) about the program was the same. But in terms of education level, the
percentage of those with a low educational background was higher (74.5%) than of those
with the secondary and university education among those who did note hear about the
program. Similarly, the highest proportion of people with the lowest income did not know
about the program (71.6%).
In the group of potential beneficiaries who heard about labour redeployment under SubComponent B1, most of them learned about it from the national television – 51.7%;
thereafter – in labour offices: 27.1% and 19.5% from relatives. Much less persons learned
about the program in gmina administration offices, from the press and the Internet.
Identification of Reasons why a Person did not Participate in Sub-Component B1
The most usual reasons why potential beneficiaries did not participate in the program
were as follows: (i) insufficient information (29.7 of the respondents), (ii) disbelief hat
participation in the program would change anything in the respondent’s situation (25.4%),
(iii) program inadequacy to the needs (20.3%), (iv) time and cost of travelling (11%), (v)
lack of vacant places was on the fifth position (6.8%).
The distribution of these reasons was significantly diversified in terms of socio-economic
and geographic features of potential beneficiaries.
Persons living in Podkarpackie and Warmińsko-Mazurskie voivodships complained most
about the lack of information; the same problem was indicated by persons aged 25-39
and persons with the primary and vocational education, living in large families with lowest
income per capita.
The disbelief that participation in the labour redeployment program would change
anything was characteristic for persons from Kujawsko-Pomorskie voivodship, more often
men than women, elderly people, with the basic vocational education, living single, with
the average income per person in the family.
The inadequacy of the program to the needs was mainly indicated by inhabitants of
Kujawsko-Pomorskie voivodship, elderly persons, mainly with university degrees, but also
– what is interesting – with the basic vocational education, also persons living single and
with a low income.
The time and the cost of travelling was the most important barrier for inhabitants of
Podkarpackie and Świętokrzyskie voivodship. Moreover, these were women more often,
persons aged 25-39, with the basic vocational education, from large families with low or
average income.
The lack of vacant places gave hardest time to inhabitants of Lubelskie voivodship, young
people with the secondary and university education, with a relatively high income.
The potential beneficiaries declared, which activities they would like to participate in
under the labour redeployment services. The first positions were taken by temporary
employment (as much as 80.1% declared their wish to participate) and by training
(77.6%). The employment-related services were much less popular (46.9% of
respondents), just as business assistance centres (34.5%) and business incubators
(28.8%).
141
Job Seeking Methods Used by those who did not Participate in Sub-Component B1
A vast majority of respondents (mostly the unemployed) have been looking for a job for
the last 4 years (i.e. in the period when Sub-Component B1 was implemented in their
region), but 26.4% of them did not do this intensively (from 1 to 5 times in this period),
17.3% more intensively (from 6 to 10 times) and 16.7% very intensively (more than 11
times). When analysing data for all the voivodships, one can see that only 7.5% of the
respondents did not look for a job at all. But a declaration like this was made by as much
as 15.7% of respondents in Podkarpackie voivodship and 10.8% in Małopolskie (while
only 2.5% in Warmińsko-Mazurskie and only 3.1% in Małopolskie). Women were those
who did not look for a job much more frequently than men and – surprisingly – persons
aged 25–39. The reluctance to look for a job was correlated with the education level –
persons with the primary education background constituted the largest percentage of
those who did not look for a job. Members of households with the highest income per
capita looked for a job less frequently.
Most of the potential beneficiaries did not look for help of institutions specialised in
employment agency (58.2% declared an approach like this on the average), but the rest
(41.8%) had some contacts with such institutions. When analysing data for all
voivodships, one can see that least interest in institutional help was declared in
Małopolskie voivodship (36.9% of the respondents only) and most – in WarmińskoMazurskie voivodship (55%). Gender was insignificant in seeking help of employment
agency institutions, but age was of much importance. Mainly the youngest people were
looking for institutional help (aged 18-24), while the oldest (aged above 65) declared least
interest in this form of assistance. Education was similarly important – most of people
seeking institutional help in employment had university degrees or at least a secondary
educational background. Most persons interested in this for of help declared the average
level of income per person in their households.
Labour Offices or Employment Agency Offices were most often indicated as institutions
where potential beneficiaries were seeking advice and assistance in finding a job (96.8%)
and only 8.4% went to professional advisory companies. The latter were most often
visited by young people with university degrees.
Other forms of looking for a job used by potential beneficiaries included: using family
contacts (as much as 78.4%); looking for job advertisements in local newspapers
(63.9%); looking for job advertisements in national press (25.6%), in the Internet (10%)
and an job fairs (4% only).
Comparison of Sub-Component B1 with Other Similar Programs
The labour redeployment services of Sub-Component B1 were not the only labour
market-oriented program in the regions were RDP was implemented. 68.8% of officers of
District (Powiat) Labour Offices confirmed the existence of similar programs, and only
14.6% stated that no such programs were implemented (the rest of respondents did not
know the answer). The group of most popular programs included: PHARE 2000, 2001,
2002 (this was confirmed by 80.3 of the surveyed officers), structural programs (ESF)
(confirmed by 34.8% of the respondents), SPO RZL (6.1% of the respondents), green
jobs (4.5%), Alternatywa (6.1%) and other projects (known to 40.9% of the respondents).
But one can clearly see that due to well formulated criteria of beneficiaries selection for
RDP it was possible to reach such persons who had not participated in any other
programs for the last 4 years. 79.9% of the training service beneficiaries had not
participated in any similar program; in case of temporary employment this rate was as
142
high as 94.9% of persons who participated in Sub-Component B1; 92.6% of employment
related services’ beneficiaries had not participated in any such program before; in case of
business assistance centres, 91.6% of persons declared that they had not participated in
similar programs.
Comparing RDP with other programs, 50% of District (Powiat) Labour Offices stated that
labour redeployment services of Sub-Component B1 improved qualifications to the same
degree as other similar projects, while 21.2% indicated that this degree was higher and
18.2% - that it was lower. Similarly as in case of improving qualifications, the
effectiveness of the project in finding a job was considered to be the same as the
effectiveness of other programs (this opinion was expressed by 50% of Powiat Labour
Offices’ officers); 21.2% stated that the effectiveness of redeployment services was
higher and 15.1% - that it was lower.
As far as the next objective achievement is concerned, i.e. adaptation to the labour
market requirements, the effectiveness of RDP was also comparable with that of similar
programs (this is what 48.5% of the officers stated). In case of those beneficiaries who
had participated in other programs (training projects mostly), 45.2% of them declared that
RDP improved their qualifications to the same degree as other programs, 24.7% - that it
was better, but 20.5% thought that it was worse.
From the group of persons who participated in various forms of institutional assistance
(outside Sub-Component B1), most respondents were provided job counselling (34.2%),
the second position being taken by training services (30.3%). 18.1% declared that
institutional help was limited to access to job offers; 15.5% participated in public works;
only 5.8% participated in counselling and training programs dedicated to business
launching and 1.3% were provided assistance intended to help those who had already
been running their own business.
The proportion of those who assessed institutional help negatively was highest (41.9%),
18.7% considering it to be very poor even. On the other hand, 36.6% found that the
assistance represented an average level. But every fifth person assessed the institutional
help they had been provided as good or very good.
In comparison with data recorded in all voivodhips, the highest percentage of persons
most satisfied was in Zachodniopomorskie voivodship (16.7%) and the lowest – in
Warmińsko-mazurskie (27.3%) and Lubelskie (24.0%). Usually, women were more
dissatisfied than men and persons with the primary education indicated a higher degree
of dissatisfaction too.
The effectiveness of programs implemented concurrently with B1 seems to be rather low.
71.6% declared that they did not manage to find a job thereafter, nor did they launch any
own business. Only 5.8% of the respondents stated that they found a job immediately
(within a period up to 3 months) after the program and 15.5% that this happened later.
Only 0.6% commenced their own business activity having been provided assistance. In
comparison with data recorded in all voivodships, the best results were noted in
Zachodniopomorskie, where 16.7% of the respondents managed to find a job
immediately and less than a half could not find it at all. Women, persons aged 25-39 and
persons with university degrees managed to find a job soonest than any other persons.
Considering the effectiveness of programs similar to Sub-Component B1 redeployment
services in terms of adaptation to requirements of employers in the regions covered by
Sub-Component B1, as much as 81.9% stated that they did not derive any benefits. Only
143
15.5% declared, that these services helped them to adjust to the local employers’
requirements.
The outcomes quoted above show that Sub-Component B1 was relatively more effective
in comparison with similar programs implemented in these voivodships.
2.2.7
Conclusions and Recommendations for the future
The above analysis enables one to present the most important conclusions that follow the
experience gained as a result of Sub-Component B1 implementation:
144
•
The analysis of objective secondary sources proved that before the year 2000 (i.e.
before implementation of Sub-Component B1), the situation of regions to be covered
by this project had been worse on the average than in other voivodships. What is
more, the labour market-related problems had been of a long-term nature and market
mechanisms had not been leading to any solution. Thus, the intervention in the form
of a program like Sub-Component B1, oriented towards labour redeployment, has
been assessed as justified.
•
The comparison of Sub-Component B1 with problems identified in regional strategies
showed a far-reaching convergence indicating that Sub-Component B1 identified
these voivodships’ real problems and responded to them correctly. This opinion was
also confirmed by a significant part of the respondents, although there was a group of
them – aged people with university degrees and low income – who indicated program
inadequacy.
•
The analysis of situation in the voivodships covered by Sub-Component B1 in
comparison with the remaining regions after project implementation showed that the
situation of regions covered by Sub-Component B1 relatively improved in some
aspects. One should stress however that the respondents’ general opinion seems to
indicate that the scale of intervention was too small when compared with the needs,
to be able to speak of Sub-Component B1 ability to solve the problems, but this was
a step in the right direction.
•
As far as the scale of participation is concerned, it has been estimated that about
15% of persons eligible for the project participated in it on the average. The
respondents, beside reporting the fact that there were not enough places to
accommodate their participation, indicated also other problems that set limits to their
participation, such as insufficient information, disbelief that the program could change
their situation on the labour market, program inadequacy to their needs and costs of
travelling.
•
The effectiveness of Sub-Component B1 planned outputs achievement has been
evaluated on the basis of objective indicators and based on respondents’ opinions as
well. Although the effectiveness varied from service to service, it exceeded 80% of
the assumed performance on the average. Good effectiveness of the project is also
confirmed by outcomes of interviews and questionnaire surveys.
•
Although the immediate general outcome of the project (i.e. decrease of
unemployment in the selected voivodships) was not evident (due to the scale of SubComponent B1), respondents’ opinions indicated an important additional impact of
Sub-Component B1 in the form of increased self-confidence and stimulated
activeness of those persons experiencing problems with employment who had not
been participating in any similar programs in their majority.
•
It is hard to identify the sustainability, as not much enough time has passed since the
project closing. The respondents’ opinions concerning the sustainability of effects
varied. The beneficiaries themselves believed in it more than the officers who were
responsible for the project and who had a more comprehensive knowledge of the
labour market.
•
As far as the cost/benefit proportion is concerned, it should be stressed that some of
the costs might have been distributed among the beneficiaries who declared in their
questionnaires that they could pay a part of the costs of services they were provided
(this would be possible with the adequately defined criteria of participation). On the
other hand, one should emphasise those unintended – mostly positive.
The very good construction and planning of RDP should be considered as its greatest
strength – particularly, the idea to adopt the multi-sectoral approach to the complicated
matter of the labour market problems in rural areas (no approach like this had existed in
previous programs of this type). This approach enforced co-operation between various
ministries and allowed for synergy between Components.
The following should be considered to be the most important weaknesses of SubComponent B1:
•
Lack of co-ordination with Component A (micro-loans) which started with a serious
delay and this fact affected business assistance centres and business incubators
activity negatively. The RDP construction allowed for potential synergy between
Component A and Sub-Component B1. It had been assumed that persons trained
under Sub-Component B1 would have wished to launch their own businesses, using
micro-loans and grants. As a result of the circumstances referred to, the effects of
synergy were much weaker than those potentially possible.
•
Serious delays in disbursement of funds for service providers resulted in a reduced
participation of smaller companies having no sufficient financial potential of their own.
•
Although Sub-Component B1 orientation towards disadvantaged inhabitants of rural
areas achieved by the means of skilful formulation of the eligibility criteria was one of
the greatest advantages of the project (when compared with other programs, such as
PHARE), the reality of project implementation did not fully follow the guidelines. This
means that the disadvantaged persons, owners of very small farms and school
graduates from rural areas constituted a small percentage of Sub-Component B1
beneficiaries.
145
Annex 1
Supplementary Tables and Figures
Table A 1
Specification of the unemployed by voivodships in the years 19981999
Łódzkie
Małopolskie
Mazowieckie
Opolskie
Podkarpackie
Podlaskie
Pomorskie
Śląskie
Świętokrzyskie
Wielkopolskie
Zachodniopomorskie
B1 voivodships
Other voivodships
Differencee in (B1 –
other voivoidships) 1998
B1 voivodships 1999
1999
Other voivodships
1999
Differencee in (B1 –
other voivoidships) 1999
B1 change %
1999/1998
Other change %
1999/1998
Difference in change %
1999/1998
(basis points)
The
unemployed
per job offer
Lubuskie
Jobs offers
in thous.
Lubelskie
Unemployment
aged up to 25
% in total
Kujawsko-pomorskie
1998
1999
1998
1999
1998
1999
1998
1999
1998
1999
1998
1999
1998
1999
1998
1999
1998
1999
1998
1999
1998
1999
1998
1999
1998
1999
1998
1999
1998
1999
1998
1999
1998
1998
Rate of
unemployment
Dolnośląskie
Graduates
Region
Residents of
rural areas
Registerd unemployment in thous..
57,8
73,6
55,9
60,7
65
82
22
31,1
50,1
64,6
67,6
91,7
95
117,6
20,9
26,6
89,8
106,9
23,6
27,3
45,7
57,8
28,4
39,7
48
59,6
59,1
70,6
61
80,1
45,8
57,7
60,2
39,5
8,4
11,3
6,1
8,2
8,5
10,9
2,6
3,9
8
10,2
10,5
15,4
10,9
14,3
2,9
4
9,9
11,9
3,6
4,2
4,6
7,4
11,9
17,2
4,6
6,1
4,8
5,7
9,3
13,2
4,1
5,9
6,5
6,0
12,8
16
13,9
16,9
10,3
12,9
13,2
17,5
11,4
14,3
7,6
10,2
7,6
9,5
10,5
13,2
12,3
14,5
10,8
12,5
11
13,8
7,3
10,4
12,1
15,1
19,7
22,4
8
10,5
13,9
18,1
12,4
10,1
28,2
28,6
30,5
30,8
35,3
35,9
29,4
29,4
29,2
28,9
38
37,9
29,1
28,7
29,1
29,1
34,8
33,6
29,4
30,1
27,3
28,5
32,3
32,2
31,6
31
27,3
27,1
35,5
35,9
26,1
26,6
31,7
29,9
0,6
0,7
0,8
0,4
0,2
0,3
0,2
0,01
0,7
0,5
0,5
0,2
1,3
1
0,1
0,1
0,2
0,2
0,2
0,1
0,5
0,7
0,5
0,6
0,1
0,1
0,3
0,3
0,9
0,6
0,3
0,3
0,3
0,4
247
279
156
390
571
559
285
1699
206
387
250
638
153
249
709
508
916
729
392
970
175
191
298
370
808
1580
349
426
142
260
357
488
413
255
20,7
0,5
2,3
1,8
-0,1
158
73,7
51,0
8,6
8,3
15,3
12,8
31,6
30,1
0,2
0,3
615
421
22,8
0,3
2,5
1,5
0,0
194
18%
22%
24%
27%
19%
22%
-0,3%
0,7%
-19%
-56%
33%
39%
-4%
-3%
-2%
-1,0%
38%
-7%
* Geometric mean
** As of 31 XII
Source: Consultant’s own analyses based on data of Bank Danych Regionalnych GUS (Regional
Bank Data of the Main Statistical Office).
146
Table A 2
Balance of internal and international migration in the years 1995 and
2000 (permanent, per 1000 people)
Region
1995
2000
Dolnośląskie
-0,6
-0,7
Kujawsko-pomorskie
-0,8
-0,5
Lubelskie
-1,1
-1,4
Lubuskie
-0,1
-0,6
Łódzkie
-0,4
-0,5
Małopolskie
0,2
0,6
Mazowieckie
0,8
1,8
Opolskie
-2,8
-3,4
Podkarpackie
-0,7
-0,9
Podlaskie
-1,1
-1,3
Pomorskie
-0,2
0,2
Śląskie
-0,9
-2,5
Świętokrzyskie
-1,6
-1,6
-1,5
-1,7
Wielkopolskie
0,2
0,4
Zachodniopomorskie
-0,7
-0,4
B1 voivodships
-6,2
-5,9
Other voivodships
-5,1
-6,6
147
Table A 3
Employment rate in the II quarter in the years 1995-1999
1995
1996
1997
1998
1999
1995-1999
mean*
1999/1995
% change
POLAND
60,8
60,4
60,8
61,1
59,2
60,5
-3%
Dolnośląskie
56,3
56,4
55,7
57,5
56,8
60,4
-2%
Kujawsko-pomorskie
56,9
58,2
58,7
59,2
56,9
56,6
1%
Lubelskie
70,2
67,1
65,6
67,6
61,9
58,2
-2%
Lubuskie
53,6
53,1
54,9
59,9
52,4
65,5
-8%
Łódzkie
62,8
63,4
63,8
62,3
61,4
55,0
-1%
Małopolskie
65,2
64,4
63,5
64,8
63,1
62,7
-3%
Mazowieckie
64,0
64,0
65,1
65,6
63,5
64,0
-2%
Opolskie
59,3
59,2
60,8
60,8
55,7
64,6
-1%
Podkarpackie
66,5
65,2
65,6
64,3
60,1
59,1
-6%
Podlaskie
66,2
70,4
69,3
63,1
61,2
63,8
-8%
Pomorskie
57,8
55,5
56,3
57,4
57,9
65,9
-13%
Śląskie
57,2
56,2
57,2
56,3
55,4
56,8
4%
Świętokrzyskie
67,0
68,6
66,3
63,6
61,7
56,3
-2%
52,4
50,2
53,2
55,7
52,4
65,0
-10%
Wielkopolskie
58,3
58,4
59,2
60,8
60,5
52,9
4%
Zachodniopomorskie
56,8
55,2
55,9
56,9
54,8
59,7
3%
B1 voivodships
61,8
60,9
61,1
61,6
58,6
60,8
-5,2%
Other voivodships
60,6
61,3
61,7
60,8
58,7
60,6
-3,0%
Regions
-2,2%
* Geometric mean
148
Characteristics of rural areas by voivodships in the year 2000 – comparison of B1 voivodships with other voivodships
Poland
Share of farms 1 – 3
hectares (overall %)
Precentage of farms
running off0farm
business – overall %
Individual farms
generating income
from off-farming
activity
Farms where the
managing person has
no agricultural
education background
Percentage of women
as users of farms
%
Individual farms 1 – 3
hectares (in units)
%
Proportion of
unemployed
population aged mote
than 15
Share of rural
population
%
Population not
related to a
farm
Share of employed in
agriculture
Poland = 100
Population
related to a
farm
Share of agriculture in
gross addev value
Rate of unemployment *
Gross National
Product per capita
Table A 4
%
%
%
szt
%
%
%
%
%
Rural areas
Total
%
100
3.8
28
38.3
18.5
10.9
26.8
24
697330
37.8
100
8.3
43.1
26.1
Dolnośląskie
103.4
2.8
15.5
28.6
23.6
17.3
30.5
33
28739
39.1
5.8
12.7
34.9
28.4
Kujawsko-pomorskie
89.7
3.9
25.9
37.9
18.4
9.9
24.5
27.9
15870
20.8
3.2
7.2
28.9
19.5
Lubelskie
68.5
6
51.7
53.1
14.2
8.1
21.6
18
75794
33.1
8.2
5.1
40.6
24.7
Lubuskie
89.7
4
16.5
35.4
26
18.2
29.9
35
11576
42
2.9
17.6
41.3
26.8
Łódzkie
88.7
4
32.2
35.2
20.6
12.1
27.8
21.3
44449
28.1
10.3
9.6
39.7
23.5
Małopolskie
89.3
3
35.7
49.8
14.1
11.3
20.8
22.4
126503
62.2
12
10.1
56.7
32.8
Mazowieckie
151.6
3.2
24.7
35.8
15.5
8
25.7
24.4
68663
25.9
17.4
8.8
40.8
21.2
Opolskie
85.5
5.7
28
47.6
17.2
5.8
22.3
27.7
11064
32.4
2.2
9.5
28.8
22.1
Podkarpackie
71.1
3.8
46.9
59.1
18.8
18
28.3
21.8
117840
61.4
7.1
5.4
55.3
38.5
Podlaskie
74.3
7.3
45.9
41.4
16.3
3.1
30.8
21.4
14602
14.9
3.9
6.7
34.3
17.1
Pomorskie
100.6
2.6
14.5
31.9
19.3
10.1
32.3
30
10532
23.6
3.6
13.7
35.3
20.2
Śląskie
110.1
1.7
12
20.6
20.3
19
22.7
29.8
58330
60.8
6.3
11.4
58.9
33.1
Świętokrzyskie
78.2
5.8
48.6
54
16
8.6
18.7
11.7
52432
41.5
4.5
5.9
55.7
30.1
74.5
6.8
25.3
39.9
23.7
10.9
41.9
28
8729
19.9
2.9
8.7
36.2
18.5
106.6
5.7
25.5
42.5
17.1
8.7
21.3
29.5
38680
28.5
7.2
7.7
25.8
21
98.7
4.3
13.8
30.5
22.8
22.2
33.5
30.3
13527
36.5
2.5
11.1
32.8
19.7
Average for B1
81.4
4.8
35.4
46.3
18.3
12.7
27.0
22.9
58671
39.3
5.8
7.6
43.7
26.3
Average for the Rest
101.2
4.1
23.9
35.4
19.5
11.4
27.0
28.0
31848
32.8
6.6
10.9
37.8
23.7
Wielkopolskie
Zachodniopomorskie
Average for:
* in 2001
Source: Consultant’s own analyses based on data of Bank Danych Regionalnych GUS, Charakterystyki gospodarstw rolnych w 2000 r., GUS Warszawa 2001.
149
Table A 5
Entities registered in REGON system – private sector in rural areas
in the years 2002-2003
2002
2003
2003/2002
% change
Dolnośląskie
49321
52090
6%
Kujawsko-pomorskie
42754
44906
5%
Lubelskie
46779
49849
7%
Lubuskie
21192
21857
3%
Łódzkie
47852
51116
7%
Małopolskie
86797
90819
5%
Mazowieckie
102870
107678
5%
Opolskie
23647
24630
4%
Podkarpackie
54138
56260
4%
Podlaskie
21448
22824
6%
Pomorskie
40599
43461
7%
Śląskie
66874
68641
3%
Świętokrzyskie
31917
33761
6%
23693
25109
6%
Wielkopolskie
85967
90276
5%
Zachodniopomorskie
34489
36271
5%
B1 voivodships
42369
44612
5,3%
Other voivodships
38559
40601
5,3%
Region
0,0%
150
Table A 6
Balance of internal and international migration in the years 20002003 (permanent, per 1000 people)
2000
2001
2002
2003
2000-2003
Total
Dolnośląskie
-573
177
-684
-1219
-2582
Kujawsko-pomorskie
-407
-868
-1021
-1057
-3597
Lubelskie
-2969
-3643
-3840
-4576
-18062
Lubuskie
-440
-812
-795
-435
-2741
Łódzkie
-1107
-1339
-1407
-915
-5982
Małopolskie
2376
2644
2986
3298
13248
Mazowieckie
8825
9866
12166
13328
50912
-88
-247
-682
-540
-1579
Podkarpackie
-1730
-1791
-2431
-2192
-9672
Podlaskie
-1255
-1100
-1481
-1589
-6307
Pomorskie
1651
2074
1982
2000
9827
Śląskie
-1652
-2353
-1639
-2909
-8947
Świętokrzyskie
-2061
-2304
-2372
-2467
-11499
-2002
-2176
-2136
-1580
-9889
Wielkopolskie
1595
2430
2306
2239
10362
Zachodniopomorskie
-163
-558
-952
-1386
-3492
B1 voivodships
-6956
-8696
-9766
-9960
-35378
Other voivodships
6956
8696
9766
9960
35378
Region
Opolskie
151
Table A 7
Persons occupationally passive due to reluctance to take up a job in
the years 1999-2003 (in thousand)
1999
2000
2001
2002
2003
2000-2003
mean*
2003/2000
% change
Dolnośląskie
35
27
22
19
27
23
0%
Kujawsko-pomorskie
25
13
17
27
30
21
131%
Lubelskie
10
7
10
21
23
14
229%
Lubuskie
6
5
10
15
10
9
100%
Łódzkie
31
18
18
25
20
20
11%
Małopolskie
19
11
21
15
9
13
-18%
Mazowieckie
45
37
53
45
46
45
24%
Opolskie
8
4
21
27
19
14
375%
Podkarpackie
34
23
17
12
10
15
-57%
Podlaskie
2
4
4
4
19
6
375%
Pomorskie
9
14
21
23
33
22
136%
Śląskie
112
133
71
88
73
88
-45%
Świętokrzyskie
23
23
46
57
40
39
74%
7
7
17
22
20
15
186%
Wielkopolskie
31
24
33
33
50
34
108%
Zachodniopomorskie
24
18
13
13
20
16
11%
B1 voivodships
18
13
18
21
19
18
47,1%
Other voivodships
12
12
16
17
26
17
111,5%
Region
-64,4%
* Geometric mean
152
Table A 8
Persons occupationally passive due to school/training attendance
in the years 1999-2003 (in thousand)
1999
2000
2001
2002
2003
2000-2003
mean*
2003/2000
% change
Dolnośląskie
275
267
250
255
256
257
-4%
Kujawsko-pomorskie
207
210
201
205
219
209
4%
Lubelskie
181
183
199
215
227
205
24%
Lubuskie
84
82
94
110
109
98
33%
Łódzkie
221
236
253
242
223
238
-6%
Małopolskie
261
290
312
320
297
305
2%
Mazowieckie
436
458
440
422
444
441
-3%
Opolskie
94
85
82
83
91
85
7%
Podkarpackie
177
177
173
199
215
190
21%
Podlaskie
110
122
120
106
105
113
-14%
Pomorskie
165
177
189
180
189
184
7%
Śląskie
346
382
390
443
435
412
14%
Świętokrzyskie
127
131
132
130
136
132
4%
130
126
114
129
139
127
10%
Wielkopolskie
265
282
275
296
281
283
0%
Zachodniopomorskie
131
158
175
172
161
166
2%
B1 voivodships
168
176
178
187
192
183
9,4%
Other voivodships
173
181
183
181
181
181
-0,3%
Region
9,7%
* Geometric mean
153
Table A 9
Persons occupationally passive due to exhaustion of all known
methods of looking for a job in the years 1999-2003 (in thousand)
1999
2000
2001
2002
2003
2000-2003
mean*
2003/2000
% change
Dolnośląskie
18
6
7
11
8
8
33%
Kujawsko-pomorskie
6
6
14
23
19
14
217%
Lubelskie
6
3
6
9
5
5
67%
Lubuskie
3
2
5
7
9
5
350%
Łódzkie
11
3
6
12
14
7
367%
Małopolskie
4
6
13
16
9
10
50%
Mazowieckie
11
10
14
28
11
14
10%
Opolskie
4
3
11
18
16
10
433%
Podkarpackie
3
4
8
6
6
6
50%
Podlaskie
1
2
7
7
5
5
150%
Pomorskie
7
5
5
7
14
7
180%
Śląskie
8
13
23
18
23
19
77%
Świętokrzyskie
3
7
7
7
6
7
-14%
4
5
6
7
7
6
40%
Wielkopolskie
5
7
9
16
9
10
29%
Zachodniopomorskie
2
9
15
12
13
12
44%
B1 voivodships
4
5
9
10
8
8
54,0%
Other voivodships
4
4
8
11
10
8
141,6%
Region
-87,5%
* Geometric mean
154
Table A 10
Persons occupationally passive due to conviction of impossibility to
find a job in the years (in thousand)
Region
2000-2003 2003/2000
mean*
% change
1999
2000
2001
2002
2003
Dolnośląskie
14
9
14
17
22
15
144%
Kujawsko-pomorskie
15
13
10
13
11
12
-15%
Lubelskie
19
14
7
10
8
9
-43%
Lubuskie
5
6
10
8
6
7
0%
Łódzkie
17
29
17
16
15
19
-48%
Małopolskie
11
9
22
14
12
14
33%
Mazowieckie
14
24
17
8
10
13
-58%
Opolskie
4
5
10
6
6
7
20%
Podkarpackie
13
7
8
4
4
5
-43%
Podlaskie
4
3
5
5
4
4
33%
Pomorskie
12
14
13
13
10
12
-29%
Śląskie
26
24
27
26
26
26
8%
Świętokrzyskie
10
14
4
12
7
8
-50%
7
13
12
14
5
10
-62%
Wielkopolskie
11
9
13
14
13
12
44%
Zachodniopomorskie
21
12
17
20
14
15
17%
B1 voivodships
13
11
10
11
8
10
-30,0%
Other voivodships
8
8
11
10
9
9
4,8%
-34,8%
* Geometric mean
155
Table A 11
Persons occupationally active aged 15-29 in the years 1999-2003 (in
thousand)
1999
2000
2001
2002
2003
2000-2003
mean*
2003/2000
% change
Dolnośląskie
425
361
304
305
309
319
-14%
Kujawsko-pomorskie
284
291
279
278
264
278
-9%
Lubelskie
273
269
292
301
276
284
3%
Lubuskie
147
112
142
131
133
129
19%
Łódzkie
344
362
333
356
398
362
10%
Małopolskie
440
426
394
439
457
428
7%
Mazowieckie
550
595
612
594
629
607
6%
Opolskie
129
124
108
95
100
106
-19%
Podkarpackie
272
221
209
228
235
223
6%
Podlaskie
160
137
139
134
120
132
-12%
Pomorskie
234
249
283
242
204
243
-18%
Śląskie
435
494
596
540
556
545
13%
Świętokrzyskie
166
183
161
148
136
156
-26%
164
174
165
160
155
163
-11%
Wielkopolskie
476
506
484
461
467
479
-8%
Zachodniopomorskie
194
186
206
205
188
196
1%
B1 voivodships
242
238
232
236
227
233
-4,8%
Other voivodships
255
243
247
234
230
238
-5,4%
Region
0,6%
* Geometric mean
156
Table A 12
The unemployed aged 15-29 in the years 1999-2003 (in thousand)
Region
2000-2003 2003/2000
mean* % change
1999
2000
2001
2002
2003
Dolnośląskie
115
116
109
125
106
114
-9%
Kujawsko-pomorskie
77
79
75
89
97
85
23%
Lubelskie
74
72
82
82
72
77
0%
Lubuskie
42
37
54
53
47
47
27%
Łódzkie
85
101
122
111
121
113
20%
Małopolskie
105
89
101
130
145
114
63%
Mazowieckie
110
120
148
174
158
149
32%
Opolskie
28
30
36
30
26
30
-13%
Podkarpackie
90
73
74
92
78
79
7%
Podlaskie
30
31
40
40
35
36
13%
Pomorskie
56
75
84
86
64
77
-15%
Śląskie
106
113
186
161
185
158
64%
Świętokrzyskie
48
49
53
50
43
49
-12%
54
59
65
63
52
60
-12%
Wielkopolskie
93
97
128
132
119
118
23%
Zachodniopomorskie
56
51
69
78
68
66
33%
B1 voivodships
69
66
73
80
74
73
12,0%
Other voivodships
57
60
76
75
68
70
13,2%
-1,3%
* Geometric mean
157
Table A 13
Persons occupationally passive aged 15-29 in the years 1999-2003
(in thousand)
1999
2000
2001
2002
2003
2000-2003
mean*
2003/2000
% change
Dolnośląskie
359
325
308
303
303
310
-7%
Kujawsko-pomorskie
253
267
254
258
273
263
2%
Lubelskie
220
224
238
257
264
245
18%
Lubuskie
115
113
120
131
132
124
17%
Łódzkie
270
283
306
299
288
294
2%
Małopolskie
334
349
371
377
345
360
-1%
Mazowieckie
512
536
520
505
538
525
0%
Opolskie
118
105
100
105
111
105
6%
Podkarpackie
216
214
217
235
253
229
18%
Podlaskie
127
136
136
125
124
130
-9%
Pomorskie
204
232
242
228
235
234
1%
Śląskie
446
465
473
538
527
500
13%
Świętokrzyskie
156
165
163
169
164
165
-1%
164
152
151
163
172
159
13%
Wielkopolskie
339
360
348
379
363
362
1%
Zachodniopomorskie
160
203
224
216
201
211
-1%
B1 voivodships
207
217
222
231
232
225
6,6%
Other voivodships
214
220
220
220
220
220
0,3%
Region
6,4%
* Geometric mean
158
Table A 14
Employment rate in the II quarter in the years 2000-2003
2000
2001
2002
2000-2003
mean*
2002/2000
% change
POLSKA
56,6
55,2
52,0
54,6
-8%
Dolnośląskie
51,1
49,0
48,9
49,7
-4%
Kujawsko-pomorskie
53,0
52,8
50,6
52,1
-4%
Lubelskie
63,5
60,7
56,7
60,2
-11%
Lubuskie
50,2
50,8
47,0
49,3
-6%
Łódzkie
57,5
54,8
53,4
55,2
-7%
Małopolskie
60,8
62,2
55,9
59,6
-8%
Mazowieckie
63,6
61,0
56,8
60,4
-11%
Opolskie
57,3
54,9
50,6
54,2
-12%
Podkarpackie
59,6
58,8
54,2
57,5
-9%
Podlaskie
60,9
62,1
55,5
59,4
-9%
Pomorskie
53,2
54,2
50,8
52,7
-5%
Śląskie
49,4
49,2
47,6
48,7
-4%
Świętokrzyskie
55,9
51,2
51,5
52,9
-8%
50,8
49,7
45,3
48,5
-11%
Wielkopolskie
57,5
54,9
52,4
54,9
-9%
Zachodniopomorskie
52,3
51,1
46,4
49,9
-11%
B1 voivodships
56,4
55,0
51,3
54,2
-8,9%
Other voivodships
56,4
55,7
52,1
54,7
-7,7%
Region
-1,2%
* Geometric mean
159
Service category
Number of
beneficiarie
s planned
in contracts
Number of
beneficiarie
s quoted in
final reports
Efficiency
planned in
contracts %
Achieved
efficiency *
%
Achieved
effectivenes
s%
Efficiency of services (all voivodships)
No. of
contracts
Table A 15
Employment-related
service
99
22115
21429
16
13
13
Training services
1130
22676
22691
48
32
32
Temporary
employment
services
602
7668
8125
24
31
38
Business Assistance
Centres
148
18602
20523
8
9
10
Business Incubators
5
75
91
92
76
100
*Achieved efficiency is the number of employed beneficiaries of services to the number of all
beneficiaries quoted in final reports submitted by service providers. Achieved effectiveness is the
number of employed beneficiaries of services to the number of beneficiaries planned in contracts.
Source: based of MIS-B1 data
Figure A 1
Percentage of employed beneficiaries* of employment-related
services
25
20
15
10
5
0
09/2002
03/2002
09/2003
12/2003
03/2004
06/2004
09/2004
03/2005
*persons who were provided complete services
Source: based on MIS-B1 database
160
Figure A 2
Percentage of employed beneficiaries* of training
45
40
35
30
25
20
15
10
5
0
09/2002
03/2002
09/2003
12/2003
03/2004
06/2004
09/2004
03/2005
* persons who were provided complete services
Figure A 3
Percentage of employed beneficiaries* of temporary employment
services
40
35
30
25
20
15
10
5
0
03/2002
09/2003
12/2003
03/2004
06/2004
09/2004
03/2005
* persons who were provided complete services
161
Annex 2 Weaknesses and Threats Related to the Human Potential
Activation according to SWOT Analysis based on Regional
Development Strategies for the Years 2000-2004 (for
Voivodships Participating in B1)
VOIVODSHIP
WEAKNESSES
1. Kujawsko-Pomorskie Education directions inadequate to [...]
the labour market needs.
Priority 1 – Education
and human resources
development
Level of population’s qualifications
inadequate to the labour market needs.
Priority 2 – Creating
conditions for
entrepreneurship and
efficient economic
development
Low level of population’s education.
Priority 6 – Growth and
differentiation of the
economic base of
region’s rural areas
Low development potential of SMEs.
THREATS
Increased costs of education
Low level [...] of population’s
qualifications.
Progressing impoverishment of
population, particularly in rural areas.
Low level of off-farming entrepreneurship
development in rural areas (production,
trade, services, transport, building sector)
Little diversity of business activities in
rural areas.
Continuous low activeness and
entrepreneurship, with the low level of
rural population’s education.
Free, unused and still growing labour
force resources in rural areas.
2. Lubelskie
Low level of farmers’ education.
Progressing impoverishment of rural
areas, lack of income from non-farm
sources.
Priority 2: Agriculture
restructuring and rural
areas development
Low accessibility of non-farm jobs for
rural population.
Unfavourable demographic changes in
rural areas.
Low average wealth of rural inhabitants,
irrespective of how much they are
connected with farming.
Unfavourable sociological phenomena,
such as low level of education and of
confidence in the positive significance of
civic attitudes; lack of non-farm initiatives
in farms.
Priority 3: Employment
and human resources
development
Little availability of local services for rural
population.
High unemployment.
Still low effects of initiatives aimed at retraining.
Little tendencies among entrepreneurs to
develop their business.
Little tendencies to launch one’s own
small business – particularly among
young people; lack of new entrepreneurs
education and business incubation.
162
3. Małopolskie
High agrarian unemployment (high rate
Outflow of qualified specialists.
of persons employed in agriculture, lack
of alternative sources of income for those
working in agriculture).
Farming business much fractionised and Low pace of transformations in rural
producing too little goods.
areas (country becoming a “museum
piece”).
Insufficient number of medium-sized
businesses.
4. Podkarpackie
Lack of people educated to run off-farm
businesses.
Priority 1: Multi-functional Lack of alternative sources of income,
development of rural
e.g. from agri-tourism
areas
1A. Underdevelopment of
human capital
Lack of effective implementation of
State’s structural policy in the field of
agriculture and rural areas and of arms
industry.
Investors’ reluctance to locate business
in low developed areas, strengthened by
higher investment attractiveness of
Małopolskie voivodship.
1B. Low
entrepreneurship
5. Świętokrzyskie
Serious discrepancy between high
population rate of rural areas in the
southern parts of the region and little
opportunities for population migration to
cities in this area.
Unfavourable demographic tendencies,
population’s ageing, outflow of young,
active and well educated people.
Disproportion in development [..] of small Low income per capita and unfavourable
business between the northern and the
structure of incomes (high proportion of
southern parts of the region.
disability pensions and old age pensions)
having a negative effect on internal
demand and local business development.
6. WarmińskoMazurskie
Low development of entrepreneurship.
Economic recession in the country.
High unemployment and progressing
economic and social degradation of the
areas of former state agriculture and of
border zone areas.
Lack of Government’s stable policy
supporting SEM sector.
Population’s education irrelevant and
inadequate to needs.
External companies’ lack of interest in
creating job placements in the
voivodship.
Lack of high-qualified human resources.
Government programs concerning rural
areas and agriculture not implemented.
Lack of investor service centres and
business information centres
7. Zachodniopomorskie Low occupational mobility of human
resources – no system supporting
entrepreneurship.
Protracted recession in the Polish
farming sector.
Too slow modernisation and restructuring
of rural areas and agriculture.
Progressing economic and social
marginalisation of some areas, expansion
of structural unemployment and poverty.
Lack of public [...] activity, development
of demanding attitudes or passiveness
and expectation.
Source: Consultant’s own analysis based on: Development Program for Kujawsko-Pomorskie
Voivodship until 2010, the Board of Kujawsko-Pomorskie Voivodship, Annex no 1 to resolution no
735/2001 of Sejmik (Local Parliament) dated 19 December 2001; Development Strategy for
Lubelskie Voivodship, document abstract, Lublin, October, 2000; Development Strategy for
Małopolskie Voivodship, Kraków, October 2000; Development Strategy for Podkarpackie
Voivodship for the years 2000-2006 and up-date for the years 2004-2006, Rzeszów, April 2004;
163
Development Strategy for Świętokrzyskie Voivodship, the Board of Świętokrzyskie Voivodship,
Kielce, June 2000; Social and Economic Development Strategy for Warmińsko-Mazurskie
Voivodship, " Development Strategy for Zachodniopomorskie Voivodship until the Year 2015", 23
October 2000.
164
Annex 3 Description of Beneficiaries in a Breakdown by Services77
The employment-related services (job counselling) were provided to 21429 persons,
21175 out of this number having completed them. Women constituted the majority of
participants (about 61%). School graduates accounted for some 5% of beneficiaries. The
largest group of beneficiaries participated in these services in Świętokrzyskie voivodship
(13103 persons were provided complete services) and the smallest – in WarmińskoMazurskie (2 persons). The average number of beneficiaries who were provided
complete services amounted to 3025 per each of seven voivodships.
The training services (development of qualifications) were provided to 22691 persons –
this was more than in any other service provided under Sub-Component B1. 22174
beneficiaries have been provided complete training services. Men constituted the majority
of people who participated in these services (about 55%). School graduates accounted
for some 6% of these services beneficiaries. The average number of beneficiaries who
were provided complete services amounted to 3168 per each of seven voivodships. The
largest group of beneficiaries participated in these services in Warmińsko-Mazurskie
(4820) and Świętokrzyskie voivodship (4644 persons) and the smallest – in ZachodnioPomorskie (1095 persons).
The temporary employment services were provided to 8125 persons (6712 out of this
number having completed the service). Men constituted the vast majority of people who
participated in these services (about 84%). School graduates accounted for 1% of these
services beneficiaries only. The average number of beneficiaries who were provided
complete services amounted to 959 per each of seven voivodships. The largest group of
beneficiaries participated in these services in Podkarpackie voivodship (1618) and the
smallest – in Lubelskie (292 persons).
157 business assistance centres were provided support from the Project funds and they
provided assistance to 21325 persons, 20252 of them having been provide a complete
service. Women constituted the majority of this service beneficiaries (about 61%). School
graduates accounted for more than 7% of beneficiaries here. The average number of
beneficiaries who were provided complete services amounted to 2893 per each of seven
voivodships. The largest group of beneficiaries participated in these services in
Podkarpackie voivodship (6963) and the smallest – in Małopolskie (224 persons).
6 business incubators were set up under Sub-Component B1 in four voivodships:
Kujawsko-Pomorskie, Małopolskie, Podkarpackie and Zachodniopomorskie. The services
were provided to 107 persons, 69 out of them having completed it. Men constituted the
vast majority of people who participated in these services (about 79%). There were no
school graduates among the beneficiaries here. The largest group of beneficiaries
participated in these services in Podkarpackie voivodship (24) and the smallest – in
Kujawsko-Pomorskie (10 persons).
77
Based on MIS B1 data of the end of April 2005.
165
Anna Wiłkomirska, Ph. D.
3 Sub-Component B2
167
3.1 Top-down Analysis – Problems of Education in Rural Areas vs.
Objectives and Outcomes of Sub-Component B2
3.1.1
Identification of Problems Sub-Component B2 Was Expected to
Respond to
Education problems are correlated with the social and economic situation of the whole
country to a high degree. Their intensity and nature in rural areas and townships is a
resultant of the relatively lower level of these areas’ economic and civilisation
development. According to political ideas of democracy, reduction of social disparity,
including educational disparity, should be important objectives of the social and economic
transformation in Poland. What should be done in order to provide social advancement,
definite improvement of living conditions, chances for active professional life bringing
material satisfaction and making one see the point of doing of one does to disadvantaged
groups? Studies made in the 90-ies78 enabled us to draw some general conclusions
indicating that social barriers became established in the last decade of the XX century
instead of being overcome. The following should be considered as the most significant
barriers:
•
lack of social mobility – especially intergenerational – which is often a prerequisite of
social advancement; this immobility is particularly common in rural areas,
•
unequal access to education; efforts to disseminate education at an increasingly
higher level is accompanied by the decreasing proportion of students from workers’
families and particularly – from farmers’ families in Poland,
•
income disparities would remain a natural element of market economy, if they did not
involve a strong and rapid pauperisation of large social groups concentrated in
“poverty ghettos” – these are most often small places with a high unemployment rate
and small, backward farms. Income disparities are not only a source of psychically
favourable or destructive individual assessment of one’s position in the social
structure, but they also cause serious social conflicts.
The chance for overcoming these barriers is strongly related to the individual’s inherent
status (the origin, family SES). The lower the family origin status, the less the chance for
overcoming the barriers and achieving a social advancement and an individual success.
The access to high quality education plays a crucial role in equalising the life start. In the
nineties a clear acceleration of tendencies to make the access to secondary education
common – the tendencies that had already been observed in the eighties, but the
dynamics of disparities in access to university education is dramatic. In the years 19981999 the advantage of middle-class (intelligentsia) children with the university education
over the children from farmers’ families was 51% to 5%79. The financial barrier – besides
the gradually decreasing differences in educational aspirations of children and youths
from various social environments – is an important factor: education is becoming more
and more expensive, particularly at its higher stages.
78
Cichomski B., Morawski P., Polski Generalny Sondaż Społeczny. Instytut Studiów Społecznych,
Warszawa 1995, Diagnoza Społeczna 2003, Domański H., Hierarchie i bariery społeczne w latach
dziewięćdziesiątych, Instytut Spraw Publicznych, Warszawa 2000.
79
Ibidem.
168
Moreover, there is a strong correlation between the level of education and the
professional position in the market economy. The access to prestigious and first of all –
stable professional positions increases as the level of education grows. Nevertheless, the
inherent status (particularly – parents’ educational background) still remains a significant
allocating force. According to studies made in the nineties, farmers are the social group
characterised by a strong tendency to inheriting the family status (particularly – the
father’s position)80.
At the same time, income level analyses show that higher management staff, people with
non-technical university background and business owners were the main beneficiaries of
transformations in the nineties (CBOS, Jaźwińska 1999), while the income earned by
farm workers and farm owners accounted for 68% of the national average at the most
(Domański 2000). In 1999 more than 50% of farm workers and 25% of farm owners
earned an income which was two times lower than the national average81.
This analysis enables one to conclude, what steps should be taken up to provide access
to education of the secondary and higher levels to disadvantaged groups. This would give
them a chance to gain education enabling them to achieve a satisfying social and
professional position and to take active part in counteracting marginalisation. The way
leads through improving the quality of education in primary, middle and secondary
schools, thus stimulating the growth of aspirations and real opportunities to extend the
education path of children and youths from rural areas and townships.
Results of Polish external exams for six-class pupils of primary schools and for middle
school (gymnasium) last class students, as well as international studies of school
achievements, such as OECD PISA or Civic Education Study, where Poland began to
participate in the last decade, show that student’s social origin, school location (rural –
urban) and school’s material equipment determine differences in students’ level of
knowledge. Polish pupils from uneducated families, learning at schools situated in poor
and neglected regions of the country, insufficiently equipped with didactic aids and
computers, achieved results much below the international average82.
At the information society age, students’ access to various media, including computers
and the Internet used for a didactic purpose is a necessary condition of acquiring
knowledge. In the year 2002, there were 65 computer rooms per 100 primary schools
(without special schools): 86 in cities and 43 in rural areas. The situation was better in
middle schools (gymnasia) – there were 93 computer rooms per 100 schools: 104 in
cities and 82 in rural areas.
It is evident that there are less computer rooms in rural schools than in cities. But, as
these are schools with a smaller number of pupils, a more favourable rate of rooms per
pupils is observed. In the year 2002, the number of computers in primary schools
amounted to 615: 822 in cities and 408 in rural areas; 402 were with access to the
Internet: 262 in cities and 140 in rural areas. The number of pupils per one computer was
40 in cities and 20 in rural areas. Middle schools (gymnasia) represented a better level of
being equipped with computers – particularly in rural areas.
80
Koseła K. Młodym być. CBOS, 1995, Domański H. Hierarchie i bariery społeczne w latach
dziewięćdziesiątych, Instytut Spraw Publicznych, Warszawa 2000.
81
Ibidem, Jażwińska E., Przedsiębiorcy jako grupa społeczna, Warszawa, 1999, Raporty CBOS
1999, 2000.
82
Śleszyński P. Ekonomiczne uwarunkowania wyników sprawdzianu szóstoklasistów i egzaminów
gimnazjalnych w latach 2002-2004 , Expert report of the Ministry of National Education and Sports.
169
It is neither quick nor simple to improve the quality of education. This process requires
first of all:
1. Competent (educated and developing its skills) and devoted teachers who not only
provide a high level of teaching, but develop students’ educational aspirations and
confidence in educational success of the highest possible level as well,
2. A suitably equipped didactic base – a library full of books, multimedia didactic aids,
computers and the Internet.
3. A wide and inexpensive education offer, activation of students’ extracurricular
cognitive development, facilitated access and stimulation to individual exploration of
knowledge, e.g. by the means of extracurricular activities, in the library, via the
Internet.
4. Teaching methods that will arouse students’ cognition curiosity, ability of analytical
problem solving, motivation to expand their knowledge.
5. Adequate funds, both for rewarding those who bear the great responsibility for
educating future generations and for school functioning – renovations, equipment,
transportation and meals for pupils.
One might keep drawing up the list of conditions required to improve the quality of school
work. Even those five listed above show, how difficult the task is, especially in rural areas,
where the deficit of material means is most acute and where we have – statistically, on
the scale of the entire country – fewest teachers with university degrees and poor didactic
equipment in schools.
The situation in the Polish education sector at the end of the nineties can not be analysed
without considering changes that were introduced in an express mode behind the facade
of one of the four great reforms. The key stage of education reform commenced in 1999
introduced the school system transformation, increased competence of local selfgovernment authorities in school management and maintenance and important
modifications of the conception of school work and educational offer. The latter assumed
changes in the methods of teachers’ work – responsibility for selecting or developing
didactic and educational programs and rules of grading, as well as for adjusting them to
the new organisational structure and curricular solutions, e.g. integrated teaching in
classes 4–6.
Teacher rather commonly agreed that the education system needs to be reformed, but
this does not mean that they accepted the proposal and the mode in which it was
implemented in 1999. This thesis is supported by outcomes of the research carried out by
the Institute of Public Affairs83 and by the Social Evaluation conducted prior to RDP
implementation. The way how the reform had been implemented was criticised first of all:
without consultations with education-related circles, without preparing local communities,
school directors and teachers and first of all – without the necessary funds. Education
expenses represent a dominant part of rural municipalities’ (gmina) budgets. Teachers, in
fear of losing their jobs, were sceptical about the school network consolidation, while
parents were full of concern about sending children to schools distant from their homes.
83
Putkiewicz E., and others: Nauczyciele wobec reformy edukacji. Instytut Spraw Publicznych,
Warszawa 1999.
170
Moreover, the planned system of teachers’ professional promotion was also a matter of
concern.
Inhabitants of rural areas and personnel of primary schools were most reluctant to accept
the reform. The criticism was correlated with the assessment of one’s own material
standing which was lowest in smallest centres.
One should also remember that the hasty mode of implementing even those changes that
were accepted not only gave rise to the sense of threat, but paradoxically, it also
contradicted the idea of decentralisation – one of the reform’s guidelines. Grassroots
developments that had been commenced in support of schools in many gminas had to be
suspended and the threat of closing schools that had been centres of social and cultural
life in villages were regarded as an act of violence and disrespect for local needs.
Nevertheless, most concerns applied to education’s most crucial problem, especially in
rural areas: shortage of material means for meeting the challenges of the reform and of
the current costs of school education as well. Decentralisation of the school system
involved a significant increase of expenses from gmina budgets (gminas are granted
subsidies from the State budget too). In 1990, the total outlays on education were as
follows:
Table 25.
Education expenses of the State and of gminas (in total) in PLN
million
Years
State budget’s
expenses
Education subsidies
Gmina budgets’
expenses (including the
subsidy)
1991
2813
-
717
1995
10 310
2195
5216
1999
19 471
16 551
25 161
2001
24 179
22 118
31 534
Source: the Main Statistical Office (GUS)
The table reflects the growing share of local budgets in education financing. But the
subsidy constitutes an almost 100% share of education in the entire budget of many poor
gminas. One should note at the same time that the percentage of public expenditure for
education accounted for 4.34% of GNP in 1991, 4.55% in 1993, only 4.14% in 1995 and
4.23% in 199984.
Analyses of education in rural areas have been showing the need to improve its quality
for years. This requires funds and involving the local environment in activities supporting
development of their schools. Therefore, it seems very justifiable that Sub-Component B2
– Education was included in the Rural Development Project.
One of many similar opinions expressed by persons involved in the project at the regional
and local level will be an excellent summing-up of the analysis of education’s situation in
rural areas based on scientific and statistical studies.85
84
Oświata i wychowanie w roku szkolnym 1999/2000, GUS, Warszawa 2001.
Evaluation studies included interviews with directors of Voivodship Project Implementation Units,
B2 regional consultants and representatives of gminas.
85
171
“...rural schools are very poor in general and very far from any, at least average standard
of an average school. I do not even mean a well equipped school, with a good base. 90%
or even 95% of these schools would never buy the things they bought under the Rural
Development Project. I am speaking about didactic aids and computer software first of all
here. Many schools would not even dream of such refurbishing. Or they would wait a
very, very long time”.
Evaluation of Sub-Component B2 Rationale
The analysis presented above gives a basis for a positive assessment the decision to
implement Sub-Component B2 under RDP. A vast majority of gminas would not make so
many necessary refurbishment and modernisation works, would not buy so many didactic
aids and/or software without the financial support. Fewer teachers would Participate in
training – due to financial reasons and problems with physical access to centres running
training courses for teachers. Consequently, it would be more difficult to achieve
comparable education quality improvement indicators in rural areas.
Both, representatives of VPIU and of gminas with whom evaluation interviews were
conducted stressed very clearly the great opportunity for meeting renovation and
investment-related needs, as well as for improvement of schools’ didactic base. Our
respondents stressed that it was for the first time that such a comprehensive approach to
education-related needs was adopted – the focus was not only on infrastructure
development, but the need to develop teachers’ and school directors’ knowledge and to
equip classrooms with didactic materials and software was taken into consideration too.
It seems that the first seven voivodships were also selected reasonably. Except for
Śląskie, these are poor regions, with a high unemployment level and inefficient farming.
Gminas are not able to meet education’s financial needs on their own.
On the other hand, it was the right decision to include all voivodships in Sub-Component
B2 later on, since economic and civilisation differences between rural areas and large
cities are very deep all over Poland, even in the richest Mazowieckie voivodship.
It is certain that Sub-Component B2 met the criterion of being justifiable.
3.1.2
Description of Objectives and Activities
Activities relating to economic development of rural areas need to be accompanied by
efforts to develop a strong education system, to provide such a level of knowledge, skills
and ability to learn to school graduates from rural areas, which is necessary to continue
education at the secondary and university level and to achieve the level of education and
the professional position leading to a satisfactory material and social status. Such
assumptions had been in the background of Sub-Component B2 objectives.
172
Sub-component
Activities
Sub-component
Project Objectives
Objectives
Figure 37.
Sub-Component B2 objectives and activities in the context of RDP
objectives
employment
Enhance the
quality of
teaching in
rural
schools
Improve the
quality of didactic
and IT equipment
in schools
Improve the quality of
graduates’ knowledge
Didactic and
computer training
for teachers, school
directors and
education
inspectors
Improve the
utilization of
educational
resources
Refurbishing
and equipping
school facilities
(consolidation)
potential necessary to absorb
EU pre-accession and
structural funds
Enhance the
education system’s
effectiveness
Refurbishing
and modernization
of school
facilities
Source: Consultant’s own analyses based on RDP documents
According to RDP assumptions, the economic development of rural areas can be
achieved through creating off-farm employment, developing human capital and
infrastructure. The objectives and the activities of Sub-Component B2 are directly
interrelated with all these conditions – with the human capital development most of all –
also in the long run, i.e. development of education conditions conducive to the long
education path of pupils from rural areas.
According to the Project authors, the development of human capital consists in increasing
and using the population’s professional potential, increasing the efficiency of the
education system and the level of education, as well as increasing the effectiveness and
the efficiency of local and regional administration units’ activities. The chance for human
capital development lies in coherence of precisely designed activities of all SubComponents. Building the necessary infrastructure and supporting small business means
building the labour market for future school graduates from rural areas. Enhancement of
the education quality and better utilisation of individuals translate into reduction of
unemployment. Increased competence of local self-government leaders implies more
efficient functioning of all regional institutions and experience gained under the Project
should be used when applying for EU funds.
The general education-related objective of Sub-Component B2 was to increase the
efficiency of the education system and the quality of graduates in target gminas by
enhancing the quality of teaching in rural primary schools and gymnasia, and improving
the utilisation of educational resources (Project Appraisal Document).
Four main activities were financed within the frames of Sub-Component B2:
1. A program for improving the quality of teaching in primary schools and gymnasia in
target areas through providing didactic training for teachers;
2. A program for improving the quality of school equipment through the provision of
instructional material;
173
3. A program for supporting the introduction of computers for instructional purposes in
rural gminas;
4. A program for improving school facilities (modernisation, refurbishing and renovation
of primary schools and gymnasia) and education efficiency, through activities leading
to the consolidation of the school network.
Evaluation of objectives and activities relevance
Objectives of the Project identify the education quality enhancement program and their
respective tasks fit in the program in its various dimensions.
The Project was implemented in the particular group of gminas, based on evaluation of
the education system’s existing standing. Gminas were able to select from the above list
of options a combination of developments that would help solve the main problems and
face the challenges identified in the process of evaluation. As the evaluation of educationrelated needs carried out within the preparatory work showed, 84% of rural and ruralurban gminas meeting the eligibility criteria submitted applications for RDP co-financing
that clearly exceeded the Project organisers’ expectations.
The selection of activities was similarly adequate to the objectives. It is worth adding that
gmina authorities concentrated clearly on material needs, with a strong depreciation of
the need to develop the teaching staff by the means of training. This shows how vital the
need to rehabilitate school facilities is and how strong the conviction that they are more
urgent than training teachers.
The scope of the Project and the means involved in it should be considered as significant.
The requirement to make a financial contribution set local social forces in motion and
mobilised them and this was a positive feature of the Project.
Moreover, Project objectives and activities complied also with the national development
policies. The regional development priorities provided for in the National Strategy for
Regional Development for the years 2001-2005 include human resources development,
as well as plan the support to be provided by the State to improve the school system’s
infrastructure, to develop the information society and to counteract marginalisation.
The objectives and the activities of the Project were connected with the educational policy
of the State to a high degree – the education reform, i.e. implementation of the education
management reform, curricula reform, professional promotion of teachers and school
network consolidation (including organisation of pupils transportation) and in a later
phase – including six years old children in the group subject to compulsory learning.
It should be stated that Sub-Component B2 satisfied the criterion of objectives and
activities relevance.
Evaluation of participation
The following candidates could apply for grants for infrastructure rehabilitation:
174
•
rural gminas;
•
mixed rural-urban gminas, with the exclusion of tasks in city schools;
•
powiats (only for special schools), with the exclusion of tasks in city schools.
The following candidates could apply for grants in the group of training and didactic tasks:
•
rural gminas;
•
urban gminas up to 15 thousand inhabitants;
•
mixed rural-urban gminas, with the exclusion of cities with the population above 15
thousand;
•
powiats, with the exclusion of cities with population above 15 thousand.
Initially, the Sub-Component covered seven voivodships: Kujawsko-Pomorskie,
Lubelskie,
Małopolskie,
Podkarpackie,
Świętokrzyskie,
Warmińsko-Mazurskie,
Zachodniopomorskie, and since May 2003, the remaining nine voivodships have been
included additionally in the rehabilitation and investment part (Phase I).
Specific criteria used for evaluation of applications for didactic training are presented
below:
Table 26.
Evaluation and scoring criteria (applications for didactic training)
Ranking
points
Criterion
Elements of evaluation
Achievement
of
RDP objectives
Gmina development strategy, selection of activities, importance
of the project for gmina, education reform implementation.
25
Economic
standing
G indicator for the year 2001
25
Unemployment
rate
Preference for gminas with the highest indicator
15
Share of financial
outlays in gmina
budget
Preference for gminas with the lowest rate of expenses per one
pupil
15
Pupils/class rate
as compared with
the standard
Primary schools: 18 (or more) pupils/class on the average – 12
points. Each one pupil less - 2 points deducted.
20
Gymnasium: 25 (or more) pupils/class on the average – 12
Special schools: 12 (or more) pupils/class on the average – 12
Source: RCS document
The co-financing from RDP funds depended on the type of tasks to be performed and it
might amount to the following proportions maximum:
•
62% of the total cost of training teachers and school directors
•
62% of the total cost of computer training
•
59% of the total cost of purchasing didactic aids
•
67% of the total cost of purchasing computer software.
175
The criteria of co-financing were specified clearly. Preference was given to gminas with
the low income, i.e. low outlays for education and high unemployment, and schools with a
pre-defined pupil/class ratio close to the standard. Tasks to be co-financed could not
apply to schools intended for liquidation under the school network consolidation process.
Such eligibility criteria reflect the entire RDP’s objectives and the objectives of SubComponent B2.
But in case of poorest gminas, 30-40% of costs that had to be contributed by gminas
might be a difficult barrier to overcome and for some of them this was a significant
limitation of their ability to act which was inadequate to needs. On the other hand, active
participation in co-financing the developments on gmina’s own territory is an obvious
criterion of responsibility and commitment to development of the local environment.
The participation was regulated by the eligibility criteria, by gminas’ financial potential
(own contribution) and by the funds available under the Project. Most serious needs were
identified in the field of renovation and investment tasks. The applications for
rehabilitation tasks exceeded the available co-financing 6 times as early as in 2001.
The demand for financial support in the area of Sub-Component B2 activities varied: in
case of didactic training it was satisfied almost entirely, sine it turned out to be smaller
that expected. Besides, gminas were not always interested in or had sufficient funds for
implementing the idea of combining participation in both types of training and purchasing
both the didactic aids and the software as well.
One should remember that qualification criteria related to the number of students in
classes often eliminated small schools that needed support very much (this was stressed
by many representatives of VPIUs and of gminas). On the other hand, gminas’ scarce
budgets set restrictions of the number of applications too.
Evaluation of participation, even if not measured in terms of the number of beneficiaries
to the number of potential beneficiaries, but in terms of participation of those who needed
it in fact, i.e. by the number of applications rejected to those accepted, will to a high
degree result from the immense needs of schools situated in rural areas – the needs
concerning refurbishment and modernisation and the need to equip schools with didactic
aids, including computer hardware and software, with the limited financial potential
determining gmina’s own contribution.
Therefore, considering the budget of the Sub-Component and the scope of the Project,
one should regard the level of attendance as satisfactory. On the other hand, the scale of
schools’ refurbishment-related needs and the criteria limiting participation of small
schools were the main factors limiting the possibility to satisfy the needs reported by
schools.
Our respondents involved in project co-ordination and the level of voivodships and
gminas also indicated these limitations. When asked about the barriers to access to the
program (What were the most significant barriers to implementation of tasks designed
under Sub-Component B2?), many respondents gave answers similar to the one quoted
here: “The size of the school is the barrier, in my opinion. The co-financing amount is
another barrier. It should be higher. – “50 to 50 at least”. “Depending on gmina’s
contribution – the higher the contribution, the bigger the co-financing” (gmina
representative).
176
A different opinion about co-financing was presented by another respondents, who noted
unnecessary – in his opinion – restrictions concerning e.g. the number of pupils in school:
“Namely this Sub-Component we participated in, was a training and didactic one, while
we were not provided any support in case of the infrastructure-related application. As far
as the infrastructure development was concerned, we applied for funds for gymnasium in
Z... and in this case the criteria were unfavourable for the rural environment. The number
of pupils in schools was one of the main criteria and in case of such environments and
rural gminas as S..., we are losing with larger environments at the very start. With such
scoring criteria, townships up to 5 thousand inhabitants had an enormous advantage over
us. As far as gmina’s own contribution to projects was concerned, richer gminas
representing a higher level of civilisation development had more opportunities, more room
to begin with. In case of small gminas, providing an own contribution – which might seem
not very high, ranging from several dozen or several hundreds of thousand – is a very
serious load for them and considering that some gminas are in debts, it is impossible for
them to participate in any projects that can be implemented in rural gminas. This means
that the economic barrier may be a hindrance to reaching for money and it may affect the
chances for making the starting point of country and city children equal.” (gmina
representative).
But not all respondents showed a similar social sensitivity:
“These criteria were as they were, because this program is for rural areas – this was
stressed many times that the idea was to level the differences out and in fact, gminas in a
worse financial situation were always given preference, i.e. those where the income per
inhabitant was lower and where the unemployment rate was higher. This was taken into
account. Not everyone liked this, because sometimes those richer and thriftier lost. But
this is a matter of assessment” (gmina representative).
Some respondents thought that the program should be extended over secondary (postgymnasium) schools, as they are disappearing from rural areas, and over non-public
schools (although opinions were divided in this matter). It is worth remembering at this
point, what was also mentioned by some of the respondents – that local associations take
over schools more and more often and that they need financial support very much.
To sum it up, one should note that the funds available in the Sub-Component were
used in a manner ensuring the highest possible participation of eligible applicants.
The number of beneficiaries interested in Sub-Component’s tasks was limited by
criteria disadvantaging small schools and by the low level of their own funds.
Targeting evaluation
The objectives and the activities of Sub-Component B2 fit in the State’s declarative policy
in the field of education and it was coherent with the assumptions of the reform
commenced in 1999. The selection of eligibility criteria and the rehabilitation and
modernisation tasks supported the project of consolidation (at the first stage of the
rehabilitation program gminas had to attach data form strategic plans for education to
their applications). Training tasks facilitated the introduction of requirements of the
curricula reform and enabled professional development required by the new system of
teachers’ professional promotion. No other assistance project supported the needs of
schools and education to such a high degree, particularly in rural areas. The project can
be considered as an element of difficult initiatives aimed at providing children from rural
areas equal chances for education.
177
3.1.3
Situation before and after Implementation of Sub-Component B2,
Outcomes of the Sub-Component86
By the end of December 2004, the number of contracts for renovation of schools
amounted to 1,799 and in case of equipping and renovating school common rooms – to
955. Additionally, 314 contracts for equipment of pre-school education classrooms were
signed. All in all, 1271 schools were renovated by the end of 2004 for the total amount of
PLN 171 million. 2974 various rooms were renovated in schools. Within the frames of the
school network consolidation, 187 common rooms were renovated for the amount of PLN
8.6 million. 425 common rooms were equipped and the equipment value amounted to
PLN 5.7 million. Besides, 212 pre-school education classrooms were equipped for the
amount of PLN 1.3 million. These figures increased in 2005 – by the end of March 2005,
1885 schools, 4126 classrooms and 259 common rooms were renovated, 682 common
rooms and 491 pre-school education classrooms were equipped in total. Some of the
contracts are still being executed and accounts are being cleared.
It is worth stressing that the outcomes exceeded the plans as early as at the end of
March 2003.
By the end of October 2004, the cycle of didactic training for teachers and school
directors had been completed. The training provider – STO – conducted training for 8979
teachers (without training in information technology), including 748 school directors. It
should be noticed that fewer teachers were trained than assumed - around 97% of the
planned number of 9240 trainees. The contract with STO provided for the amount of PLN
10.2 million.
By the end of November 2004, training courses in information technology delivered by the
Consortium of Polish Training Companies were completed. The courses were attended
by 7716 participants, including 1012 IT teachers, network administrators and managers of
computer rooms. Moreover, 1300 school directors and education specialists were trained
in territorial self-government units and 5404 teachers of other subjects. Not all training
courses that had been planned were delivered. The number of training beneficiaries
accounts for some 94% of the planned performance – initially 8209 potential participants
had been reported.
Gminas purchased 711 software packages for around PLN 4 million. The value of
purchased software was higher than planned.
By the end of October 2004 deliveries of instructional materials and school equipment
were effected. In total, schools ordered 746 packages of didactic aids (about 30,000
various items). The value of purchased items amounted to PLN 22.63 million – more than
planned.
Since April 2004 the portal named “Scholaris” – the Internet Centre of Educational
Resources has been active under the supervision of the Ministry of Education and Sports.
The portal will continue its functioning, its cost to be covered from structural funds. In the
year 2005 the www site references indicator was three times as high as planned. On the
other hand, the number of new internet addresses (2171) and of www sites created by
86
All information about performance of Sub-Component B2 tasks is quoted after MIS Monthly
Reports, and data were submitted to the Project Co-ordination Unit by Voivodship Project
Implementation Units.
178
teachers and students (1854) was much lower than planned (5000). First issues of
monthly magazines titled Nowe w szkole (“The New at School”) and Kierowanie szkołą
(“Managing a School”). The portal is gradually becoming more and more popular.
Common Rooms Renovation and Furnishing; School Facilities and Classrooms
Renovation
Applications for co-financing of rehabilitation tasks in schools and common rooms in 7
voivodships were mainly submitted in the year 2001. Most of these tasks were completed
as soon as in 2002.
In May 2003 a decision was made to allocate an additional amount of money for
renovation and equipment in schools (with a particular focus on pre-school classrooms)
and common rooms from the Project reserve fund, as follows: EUR 1 million for 7
voivodships where Sub-Component B2 – Education had been implemented since the
beginning of the Project and EUR 6 million for 9 voivodships that had not participated in
this Sub-Component before. The deadline for this task completion had been planned for
December 2004.
Total
number
of
equipped
common
rooms
Total
cost
of
renovated common
rooms (PLN)*
Total
cost
of
common
rooms
equipment (PLN)**
111
$261 m
N/A
185
218
119
140
259
463
682 (+491
pre-school
classrooms)
219
$2,54 m (cost of renovated common rooms
+ $2.05 m (cost of equipment)
+ $1.21 m (pre-school classrooms)
2005)
118
Difference (31/03/
88
31/03/2005
52
12/31/2004
12/31/2003
Total
number
of
renovated common
rooms
30/06/2004
Indicator
30/09/2003
Results of renovating and equipping school common rooms
Expected
outcomes
Table 27.
+157
+571
+491 (preschool
classrooms)
- $0,5 m
(common
rooms
renovations)
N/A
* Total and unit gross cost of renovated common rooms (renovations and equipment – gross
amounts).
** Total and unit gross cost of equipping common rooms (PLN).
Source: MIS Monthly Reports and RDP Monitoring Table (B2)
179
Figure 38.
Common rooms renovation and equipment – comparison of
expected and achieved results
800
700
600
500
400
300
200
100
0
renovated
common rooms
equipped
common rooms
expected results
equipped pre-school
classrooms
achieved results
Source: MIS Monthly Reports and RDP Monitoring Table (B2)
The proportion of expected results to achieved results is impressive and similar is the
picture of the balance of renovation tasks in schools.
1689
1885
365
446
2005)
+ 1785
+$51.64
m
$59 m
328
Difference
(31/03/
2005
31/03/
2004
348
196
12/31/
Number
of
renovated
teaching rooms
**
2004
$7,36
mln
201
30/06/
Total gross cost
of
school
renovations
(PLN)
140
2003
100
12/31/
Total number of
renovated
schools
2003
Indicator
30/09/
Outcomes of renovation tasks in schools
Expected
results
Table 28.
3680
4126
+3778
**teaching rooms: classrooms, laboratories and gymnasia
Source: MIS reports
180
Figure 39.
Renovation of school facilities – comparison of expected and
achieved results
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Renovated schools
renovated
facilities
Expected results
Achieved results
Source: MIS reports
Professional development of teachers and school directors
Training was less interesting to beneficiaries than rehabilitation activities. Additionally, the
number of candidates could be reduced by protracted bidding procedures and the short
holiday period of training.
Table 29.
Professional development of teachers and school directors –
outcomes
Difference
Indicator
Expected
outcomes
30/09/2004
30/12/2004
31/03/2005
School directors trained
in management
600
748
748
748
+148
10 000
8 202
29
8231
-1769
4 000
4 717
5404
+1404
958
1012
+212
1 070
1300
+900
Teachers
trained
didactic issues
in
Teachers trained in IT
IT teachers trained
Managers of computer
rooms trained
School directors and JST
specialists participating in
IT training
400
31/03/2005
400
400
Source: MIS reports
The cost of training one person (including the teacher’s financial contribution, but without
costs of travelling) amounted to PLN 1100.29 in case of didactic training and PLN 760.77
in case of IT training.
181
Purchased educational materials and computer software
The idea of Sub-Component B2 organisers had been to offer schools and teachers from
rural areas participation in didactic and IT training and at the same time the opportunity to
purchase didactic aids and software intended to improve the quality of teaching. The idea
was not realised entirely, but the purchasing indicators were higher than planned.
Table 30.
Purchased didactic aids
Indicator
Expected
results
30/09/2004
30/12/2004
31/03/2005
Purchased packages of
didactic aids
600
746
746
746
Difference
31/03/2005
+146
Value of purchased
packages of didactic
aids (PLN)
$4.39
Purchased software
400
Value of purchased
software (PLN)
$0,9 m
$5,3
711
711
+$0.91
711
1m
+311
+$0.1 m
Number of schools that
received didactic aids
1863
1863
1863
1863
tbd
Number of schools that
received software
1720
1720
1720
1720
tbd
Source: MIS reports
Deliveries of educational materials took place in September and October 2004.
Figure 40.
Purchased didactic aids and software – comparison of expected and
achieved outcomes
800
700
600
500
400
300
200
100
0
didactic aids
Expected results
software
Achieved results
Source: MIS reports
The Internet Centre of Education Resources
It had been an ambitious idea to create the Internet portal and to encourage education
personnel from rural areas to co-operate. But most probably creating www sites of
182
schools, teachers or pupils even, requires a better technical base and overcoming
motivation barriers.
30/09/2004
30/12/2004
31/03/2005
Difference
31/03/2005
Use of “Scholaris” Internet Portal
Expected
results
Table 31.
200 000
137 000
445.332
700 000
+500.000
Number of www addresses
created by schools and
students
5 000
1 364
2171
2171
-2829
Number of www sites
created by schools and
students
5 000
250
1854
1854
- 3146
Indicator
Number of references to
the www site
Source: MIS reports
Figure 41.
Use of Scholaris Internet Portal – comparison of expected and
achieved outcomes
6000
5000
4000
3000
2000
1000
0
Internet addresses
Expected results
www sites
achieved results
Summary of outcomes
The scope of the Project should be considered as extensive. 259 common rooms were
renovated and equipped, and this was important with regard to the education reform
implementation (mainly the problem of transporting children to schools). This figure may
be not very impressive, but one should remember about gminas’ more urgent
rehabilitation needs. Necessary renovation was effected in some 300 schools (in the first
7 voivodships) and this resulted in reduced maintenance costs in many cases.
Didactic training was provided to more than 8000 teachers and 600 school directors; IT
training was provided to 2300 education employees. Schools were equipped with 700
packages of didactic materials, the cost of which exceeded PLN 22 million. These
included complete sets of equipment for computer rooms, for example. Moreover, local
self-governments ordered more than 700 software packages.
183
Expected economic changes
According to the assumed objectives, the changes resulting from the education SubComponent are of a delayed nature rather. Rehabilitation of school facilities may bring
results relatively soon – on the one hand in the form of reduced school maintenance
costs, e.g. less expensive heating, but on the other hand – in the form of increased costs
of starting additional activities, e.g. in newly equipped laboratories of new sports facilities.
It is difficult to estimate the direction of financial decisions made by gminas and school
directors. One should not expect any other immediate and quick changes of economic
indicators.
Any economic effects resulting from the enhanced quality of education will be visible in a
dozen of years or so and they will be correlated with many other social and economic
factors to a high degree, therefore they will be difficult to separate and quantify.
Evaluation of effectiveness
The expected outcomes were exceeded evidently, particularly in the rehabilitation phase.
On the other hand, the performance indicators were lower than expected in case of
didactic training for teachers, IT training and use of Scholaris Internet portal. One may
indicate at least two significant reasons of deficit in this field. It seems that rehabilitationrelated needs of gminas in the areas covered by the Project had been so immense and
so difficult to satisfy with such a serious shortage of funds, that they became
beneficiaries’ priority. Besides, training services were provided in the second phase of
activities. Too much time had passed between acceptance of applications and the phase
of implementation and the scope of needs had changed. As far as Scholaris portal is
concerned, one should reserve the final judgement, considering how short the time of its
operation has been (with the holiday period included) and bearing in mind constant
problems with an easy access to the Internet in rural areas. The very chance to visit an
educational Internet portal is an opportunity to update knowledge and to share
professional experience for the teaching staff.
Having analysed opinions expressed by the beneficiaries in interviews, one should
discuss a few issues in detail. The access to information about Sub-Component B2 was
assessed very well by representatives of Voivodship Project Implementation Units
(VPIU), representatives of gminas and school directors. A vast majority of the
respondents had no problems with obtaining information they needed. Applications were
found easy to fill, particularly when compared with other assistance programs. No serious
problems were encountered during the implementation of project activities. Persons
responsible for the project in particular gminas praised regional co-ordinators’
professionalism, readiness to provide any assistance that was needed and short time of
response. Training courses for gminas’ representatives and Internet information
packages were given high marks. Respondents from the VPIU were more critical to the
Project Co-ordination Unit. They complained of frequent rotation of officers responsible
for particular tasks, protracted procedures, unclear distribution of competence between
PCU and the Ministry of Finance.
All respondents expressed their gratitude for the very possibility to obtain help, but the cofinancing was assessed as too low in case of rehabilitation tasks. Moreover, criticism was
expressed with regard to the relatively long time of waiting for funds after the invoice for
works was submitted. But in general, organisation of the rehabilitation phase was
assessed much better than organisation of training, although there was definitely too little
time for renovation works at the second stage and gminas signed contracts with
unrealistic dates of completion, especially that some of the works had to be performed
184
during the school year, i.e. only in the afternoons, when students were not at school. In
some cases, bidding procedures were protracred as a result of gminas’ tardiness, bur
contracts for immediate performance of works were signed anywa, as renovation was
very important for the beneficiaries.
But the beneficiaries were most critical of the long time of waiting for activities after the
application for training had been accepted. This caused many administration and financial
problems (changes in gminas’ budget plans) and on the other hand, after such a long
time the candidates were not interested in training any longer. Below follows one of many
similar opinions:
„...as far as effects of Sub-Component B2 are concerned, my assessment of training is
very high. All the materials that were provided, the software – this was all on a very high
professional level. But organisation was more than bad. Bidding procedures conducted
by the PCU took from 6 months to 2.5 years, and this is simply ridiculous. Thereafter –
the performance itself, in technical terms: in one case we signed 10 annexes to the
contract for didactic training with one of gminas” (regional consultant).
The procedures, that involved not only PCU representatives, but also representatives of
all voivodships and – in case of Sub-Component B2 – representatives of MONES, took
relatively much time, due to the rules of creating bidding documentation, verification and
and approval thereof. This resulted in delays that caused problems to beneficiaries.
In the opinion of VPIU representatives, STO was more successful in organisation of
didactic training than the consortium delivering IT training. Problems with enrolment were
reported, as the opinion quoted below shows:
”There were some problems in case of IT training. At a certain point, there was a huge
hold-up resulting from the fact that the company which had won the bidding, the
Consortium of Polish Education Companies, was not prepared to collect information,
who, where and in which training should participate. This is such a down-to-earth issue,
but it is very important. The company did not take into consideration that there was no
access to the Internet in gminas, no knowledge that would enable people to log in the
system, select a course using passwords and other procedures. Maybe this was
interesting, but I don’t know if this was needed – maybe it was. An all in all, there were
masses of phone calls (...) how to do this” (representative of a VPIU”.
The Consortium, when proposing the form enrolment – this being the first educational
task – had not envisaged the scale of difficulties of both technical and competencerelated nature.
Irrespective of the beneficiaries’ very good general opinion on Sub-Component B2, the
shortcomings described above contributed significantly to the fact that not all available
funds were spent.
In general, the effectiveness of the Project should be assessed very high, particularly in
the area of rehabilitation tasks and providing didactic aids to schools. The needs of
gminas situated on the territories covered by the Project are immense. The Project
enabled many of them to conduct the necessary renovation leading to improvement of
the school infrastructure, but also to reduction and re-distribution of future costs, e.g. for
thermal insulation of buildings. Consequently, it was possible to satisfy a significant part
of material needs.
185
Utility evaluation
The rehabilitation activities, the supply of equipment, didactic aids and software, the
training services will make it possible to meet the requirements of the education reform
better and, what is more important, they give a chance for enhancing the quality of
education. New didactic equipment in schools and the use of active teaching methods
popularised in the course of training may result in increased motivation to learn and to
increase students’ educational aspirations. Moreover, participation in didactic training is
one of conditions of teachers’ professional promotion. It is not possible to carry out any
thorough evaluation of qualitative changes in such a short time, but it will be possible
within the nearest years through monitoring the achievements of students from rural
areas and their education careers.
Although the effects of using Scholaris Internet portal were lower than expected, there is
a chance that it will become an important forum of education-related information,
exchange of teaching experience, writing efforts and presentation of action research
outcomes.
The evaluation of Sub-Component B2 utility should be supplemented with data obtained
from potential beneficiaries, i.e. education personnel from gminas that did not participate
in RDP. A half of school directors covered by the survey heard about the Project. 1/5 of
gminas where the respondents are employed applied for co-financing. Certainly,
rehabilitation tasks were most interesting to them, IT training taking the second place. In
most cases, schools did not become RDP beneficiaries, as their gminas were not able or
did not want to provide the own contribution or the information about the Project was
received too late. Some schools were not eligible, e.g. they were too small, run by
associations or were not interested in training.
School directors, if offered the opportunity to apply to the Project today, would be very
happy to receive co-financing for renovation, to but equipment for the common room,
software and instructional materials. It is worth adding that 1/3 of schools managed by
our respondents have already benefited from assistance programs, mainly being
provided a base of computers. Maybe this is why 76% have computers, although only 1/5
have a separate computer room. Almost all schools are connected to the Internet. ¾ have
instructional software too. About a half of school directors participating in the survey
stated that the it was not often used. But in many cases, the equipment does not meet
the parameters required by modern software and premises are insufficient for computer
technologies to be used on a common basis.
70% of schools that did not participate in the Project have their sports facilities
(gymnasia) and 80% - common rooms for students. 18% of respondents described the
technical condition of the school building as very good, 48% as rather good and 15% as
bad. Almost all school directors from this group were planning some – necessary in their
opinion – renovation works (most often – replacing windows, floors, roof, renovating the
boiler room). More than a half intended also to equip common rooms and 1/3 – to equip
pre-school classrooms. Other urgent needs included purchasing didactic software (45%),
computers (30%) and instructional materials (36%).
According to data obtained from school directors that did not participate in RDP, although
their schools handled the situation well in the fields covered by the Project support, most
of them would be happy to obtain co-financing in order to meet some urgent rehabilitation
needs and to purchase better didactic aids.
186
3.2 Bottom-up Analysis – Project Effects Evaluation
3.2.1
Identification and Measuring of Sub-Component B2 Cost
All tasks performed under Sub-Component B2 were financed from a few sources:
Table 32.
Types of funds used in Sub-Component B2
Funds
Amount
Loan in EUR
32 067 802*
Loan in PLN
133 892 419
Budget
880 386
Own contribution
186 012 941
* Rate of exchange 1 EUR = PLN 3.95 has been accepted.
By 17.05.2005, 96.93% of the funds provided under the World Bank’s loan were absorbed.
Efficiency evaluation
Refurbishing and investment tasks were performed at the cost below the plan and as a
result of this schools from more distant places in the ranking could be included in the
Project. Costs of training and prices of didactic materials and software were not higher
than those quoted on the market.
3.2.2
Identifying and Measuring Products and Effects of Sub-Component
B2
Significant quantitative effects were achieved in Sub-Component B2 and they exceeded
the planned performance considerably in the field of rehabilitation tasks. On the other
hand, in case of didactic and IT training for school directors and teachers, the indicators
were below the expectations, but relatively high anyway. Moreover, the performance was
beyond the expectations in case of didactic materials and software purchasing. But to be
able to regard the Sub-Component activities as effective, one needs to carry out a
qualitative evaluation as well. The basis for this evaluation was provided by the results of
survey conducted on representative samples of beneficiaries of all Sub-Component
activities.
Refurbishing and modernisation of schools, refurbishing and equipping common
rooms
Refurbishing and investment tasks in school facilities were considered to be SubComponent’s most desirable activities. In some voivodships, 1/10 of applications was
qualified for co-financing. The fact that additional funds were allocated for this purpose in
the second phase of the Project implementation should be regarded as a great success.
The needs were urgent – in 1/5 of modernised schools to which interviewers came,
renovation had been recommended by Sanepid (the sanitarian and epidemiological
inspection).
Representatives of gminas and school directors expressed positive opinions on bidding
procedures, with one exception – the fact of inviting many firms that had not been
interested in small assignments was regarded as a hinder. Representatives of poorest
187
gminas indicated even the unnecessary costs of sending letters (envelopes, post
stamps).
The vast majority of beneficiaries assessed the workmanship of refurbishing very high,
although some respondents from gminas indicated that the need to reduce costs as much
as possible (the basic bidding criterion) implied using building materials of a lowest
quality for example.
The following immediate benefits resulted from refurbishing tasks:
•
improved conditions of teaching,
•
improved safety of users,
•
improved appearance of buildings and rooms,
•
economies in heating energy expenditure.
Comments on the rehabilitation activities organisation
Many of the school directors covered by the survey (40%) did not make any critical
comments. The others made a plea for improving the co-financing timing and for
increasing the co-financing, as the needs were immense.
Training for school directors
In the year 1999, when introducing the education reform, the Ministry of National
Education and Sports decreed that all school directors needed to acquire management
competence. One of training courses planned under Sub-Component B2 – School
Management during and after the Education Reform was intended for school directors.
Besides the very requirement to develop qualifications (most of them had already
attended a training like this), school directors emphasised the opportunity to improve their
management skills, this enabling them to make the school work more efficient in terms of
administration and education as well.
A vast majority of this training participants who were interviewed – 86% - declared their
participation themselves; further 9% were appointed by gminas. School directors
expressed very high opinions about the quality of training. Using the 5-degree scale, the
participants evaluated a number of elements. Their answers are presented in the table
and on the graph below.
Table 33.
Marks given to trainers – in %, N = 296
Evaluation criteria
Positive marks
Neutral and negative marks
(including “hard to say”)
Rather good
Very good
Knowledge of the issue
14.5
82.2
2.7
Ability to present information
clearly
14.1
78.8
7.1
Commitment to training
11.2
83.3
5.5
188
The material obtained from questionnaires shows that training participants marked
trainer’s competence very high, particularly knowledge and commitment. Similarly high
marks were given to training proper.
Figure 42.
Average evaluation of training for school directors (scale from 1 to
5, where 1 stands for very bad and 5 for very good)
5
4
3
2
Location
Training
materials
Duration
of training
Date of
training
Waiting
time
Knowledge
development
New
skills
Usefulness
for school
work
0
Facility of
enrollment
1
Relatively lower marks were given for the long waiting for training after one had been
qualified for it. This had been as long as nearly two years. Consequently, professional
plans and competence of many candidates had changed. In case of school directors, the
problem was even more serious, as since 1999 the law imposed an obligation to attend a
course on them. The co-financing procedure did not allow for reduction of the number of
candidates – the only acceptable change was to replace one candidate with another one
and this caused a sudden need to look for new volunteers. In practice, all – 99% of the
school directors covered by the survey – had participated in other school management
courses earlier.
During the course, the directors developed (according to 1/3 of the respondents, the
course did not offer any new skills) or acquired new knowledge and skills in the field of
exercising pedagogic supervision and measuring the quality of school work. The
participants considered the competence in the field of school management and preparing
school development plans to be important too. Moreover, the beneficiaries stressed the
development of interpersonal skills, communication skills and team work leadership.
Besides knowledge development, 1/3 of training participants stressed the significance of
meeting many other school directors, exchanging experience with them and establishing
co-operation.
Only 8% of the respondents thought that participation in training did not bring any benefits
at all.
A vast majority of training participants – 91% - makes use of the skills acquired during the
training. Most often – when preparing school development plans (the legal obligation),
keeping school documentation (more and more extensive due to various ministerial
189
instructions), organising and evaluating school work and running staff meetings. Only 9%
of directors began using computer more intensely for managing their school.
Didactic training for teachers
Both representatives of gminas and teachers, when asked to explain, why they had
chosen namely this task, stressed two motives mot frequently: the requirement to
improve qualifications and the opportunity to attend training at a lower price (gminas) and
at no charge at all in practice (most teachers). Moreover, the need of continuous
improvement of teaching standards was emphasised too. Fewer respondents mentioned
the need to make their knowledge more complete and this also leads to improvement of
professional qualifications, certainly. The access to professional development is much
more difficult for teachers working in rural areas than for those from larger cities, but
many of them overcome the difficulties effectively.87
One should stress that most of the teachers participating in the survey – participants of
RDP training courses – had adopted an active approach to self-development. Only 1/5 of
them did participate in any training within the last two years. 36% attended short forms
only (up to 20 hours).
Nearly 2/3 of teachers covered by the interview had chosen the training on their own. A
relatively large group consisted of those who had been delegated by their directors. More
than 90% attended the training during their paid holiday (summer holidays) and some of
them expressed a dissatisfaction with this fact.
Most teachers stated that they had not had to satisfy any special conditions in order to
participate in training. Very few mentioned that they had lost a part of their holiday, some
mentioned the necessity to teach a concrete discipline and some reminded of the
requirement to pay about 200 PLN.
Społeczne Towarzystwo Oświatowe (STO, the Social Education Association) was
selected in the bidding procedure to provide didactic training. Teachers were offered 10
types of training, including the one for school directors which has already been discussed
above. The courses were 70 hours long. The subjects (without the training for directors)
are presented in the table below.
87
Murawska B., and others. Wsparcie rozwoju zawodowego, a potrzeby nauczycieli w tym zakresie,
Instytut Spraw Publicznych, Warszawa 2005.
190
Table 34.
Training topics and attendance
Training title
Attendance
Application of activating teaching methods
1815
Development of educational skills
1808
New rules of grading students at all levels of education
1185
Integrated teaching in classes I-III
1073
Developing curricula at the class level
900
Natural science teaching in classes IV-VI
431
Educational development in the discipline of civic education and
history in classes IV – VI
404
Elementary pre-school education
312
Teaching in integrated classes
303
Total
8231
Source: EPRD report
It shows that two courses were most popular - Application of activating teaching methods
and Development of educational skills. Teachers’ choice was very reasonable. Increasing
students’ motivation to learn and be active during lessons, as well as teachers’
helplessness to handle the growing educational problems are two greatest problems of
school today. The last four courses listed in the table were relatively least popular. The
first two of them are of a supplementary nature and were intended for teachers of
concrete subjects, while those more popular were intended for all teachers.
The last two courses were interesting to a narrow group of receivers only. Very few
children attend kindergartens in rural areas in Poland, and this is why the group of
teachers is not numerous here. Similarly, the number of integration schools and classes
is relatively small. It is worth stressing however that these least popular courses were
given the highest marks by trainees.
The analysis covered programs of training courses and training materials that were given
to trainees. All of them should be assessed positively. They were interesting,
comprehensive and up-to-date.
Most of trainees filling questionnaires indicated that the range of offer was rather wide –
56.7% or very wide – 27.2%. In most cases, teachers made a decision to attend some
particular training themselves – 61.1%. 1/3 of teachers were appointed by directors of
their schools and 3% replaced other candidates.
The table below shows how trainees evaluated training adequacy to the needs of schools
and teachers.
191
Table 35.
Evaluation of didactic training adequacy to beneficiaries’ needs in
%*, N=573
Positive marks
Rather high
degree
Very high degree
Negative marks and no mark
at all (not at all, very low and
rather low, hard to say)
Teaching staff in rural
areas
59.9
27.4
12.7
Teaching staff in the
school the trainee
works at
59.9
26.4
13.7
The trainee
47.5
36.3
16.2
To what degree does
the training meet
needs of:
*Data apply to all didactic courses in total, there were no statistically significant differences between
evaluation of particular training courses.
Only some 10% of the respondents gave negative marks when evaluating the degree of
didactic training adequacy to the needs of teachers and schools in rural areas..
Similarly, trainers and the contents of training were given positive marks. Specific results
are presented in the table below and on the graph.
Table 36.
Evaluation of trainers * in %, N=573
Positive marks
Evaluation criteria
Neutral and
negative
marks (and
“hard to say”)
Rather good
Very good
12.8
83.2
4.0
Ability to present information clearly
13.8
81.3
4.9
9.8
85.1
5.1
* Data apply to all didactic courses in total, there were no statistically significant differences
between evaluation of particular training courses.
There is no doubt that a vast majority of trainees were of a good or very good opinion
about the competence and the commitment of trainers.
192
Figure 43.
Evaluation of didactic training (on the scale from 1 to 5, where 1
stands for very bad and 5 for very good)
5
4
3
2
Location
Training
materials
Training
duration
Waiting
time
Facility
of enrollment
Knowledge
development
New
skills
Usefulness
for school
work
0
Date
of training
1
The teachers gave highest marks for usefulness of new information for their school work,
for facility of enrolment and for training materials provided to them. The time of waiting for
the course and dates of courses were given lowest marks – just as in case of other
training courses.
Participants of didactic training, when listing the skills they developed or acquired during
training activities, emphasised psychological competence – mainly interpersonal and
communication skills – and methodology of teaching. Participants of most popular
courses stressed the fact of acquiring knowledge about new methods and increasing their
educational competence. Those who attended other courses, mentioned the skill to grade
students or to develop curricula. These skills seemed important to them, as universities
rarely provide such competence to future teachers. Besides development of professional
competence, teachers also referred to “strengthening of personality” in the field of selfknowledge and self-esteem. The trainees were also satisfied with the opportunity to meet
and to discuss in a group of people with similar problems.
11% of trainees were of the opinion that they had not learn anything during the course.
A very high percentage of the respondents – 92% – stated that they used the newly
acquired skills in their everyday school work. This applies most frequently to:
•
activating teaching methods,
•
new methods of grading,
•
new educational solutions, e.g. contacts with students,
•
developing new curricula,
•
co-operation with parents,
•
co-operation of the school’s team of teachers.
193
Moreover, 2/3 of the trainees declared that they shared the knowledge acquired during
the training with their colleagues from school, including – what was important – the
interns. Some teachers set up self-learning teams in their schools, teams developing
curricula, educational teams. Some others presented their newly acquired skills during
special staff meetings or conferences, teaching others what they had learned themselves.
Such a cascade effects of training should be considered a great success.
Comments on organisation of didactic training
The trainees were also asked to formulate their suggestions concerning organisation of
similar undertakings in the future. The most frequent request was to provide a better
location and living conditions, to consult the timing and to reduce the time of waiting, to
update the course program, to use audio-visual methods and to make the daily portion of
classes shorter. Training participants suggested that shorter, repeatable forms could be
organised, e.g. week-end classes. It should be added that companies providing training
had to observe external requirements of the bidding procedure. Some of these
requirements specified the duration of training or the daily schedule of classes.
It is worth stressing that 1/3 of the trainees was entirely satisfied and expressed an
opinion that no improvements were needed. This was an element of the high general and
specific evaluation of training.
Information Technology training
The beneficiaries explained the need to attend the courses with such reasons as the
necessity to improve their competence, school needs, the necessity to participate in order
to achieve other goals, also personal.
IT training was delivered by the Consortium of Polish Training Companies consisting of
trainers specialised in training teachers and network administrators from four companies:
OSI Compu Train S.A, OFEK (Ogólnopolska Fundacja Edukacji Komputerowej) DC
Edukacja Centrum Szkoleń i Certyfikacji Komputerowych and Vulcan (the largest Polish
developer of educational software). IT training lasted from July to November 2004.
The consortium proposed 9 types of courses. The table below specifies the topics and
the attendance.
194
Table 37.
Scope and attendance of particular courses
Training scope
Attendance
Training in using the Internet for teaching other subjects – INTN
1306
Two modules of general and basic training in using IT as a teaching aid:
PTI1
PTI2
1239
994
Training in basic use of the Internet – INTP
949
Two modules of basic training in IT for school directors – using computers
in school and education management:
ZAR1
684
ZAR2
616
Two modules of training for network administrators:
ADM 1
530
ADM2
482
Total
7716
Source: EPRD report
As one can see, most beneficiaries – more than 1300 – attended the training in using the
Internet for teaching various subjects and a little fewer – the training in using IT as a
teaching aid.
The respondents (296 trainees) gave high marks to the range of courses and to their
chosen courses as well. More than 21% of the respondents considered the set of courses
to be very extensive and nearly 63% as rather extensive. The table below shows how the
training adequacy to the needs was evaluated.
Table 38.
Evaluation of IT training adequacy to beneficiaries’ needs in %*
N=296
Positive marks
To a rather high
degree
To a very high
degree
Negative marks and no mark
at all (not at all, very low and
rather low, hard to say)
Teaching staff in rural
areas
60.5
27.7
11.8
Teaching staff in the
trainee’s school
61.1
25.7
13.2
The trainee
51.7
33.1
15.2
To what degree does
the offer meet the
needs of:
* Data apply to all IT courses in total, there were no statistically significant differences between
A vast majority of trainees stated that the range of IT training was adequate to the needs
of the teaching staff in rural areas, the needs of beneficiaries’ schools and the needs of
beneficiaries proper.
Both the trainers and the contents of training were assessed positively by the trainees.
The table and the graph below show the specific outcomes.
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Table 39.
Evaluation of trainers * in %, N=296
Rather good
Very good
Neutral and
negative marks
(and “hard to say”)
17.0
78.0
5.0
Ability to present information clearly
19.5
71.4
9.9
14.0
79.1
6.9
Positive marks
Evaluation criteria
* Data apply to all IT courses in total, there were no statistically significant differences between
The data show that a vast majority of beneficiaries were of a good or very good opinion
about the competence and the commitment of trainers.
Figure 44.
Evaluation of IT training based on average marks (on the scale from
1 to 5, where 1 stands for very bad and 5 for very good)
5
4
3
2
Location
Training
materials
Date
of training
Waiting
time
Facility
of enrollment
Knowledge
development
New
skills
Usefulness
for school
work
0
Training
duration
1
High opinions were expressed about training materials and locations where training was
organised, as well as the facility to enrol. But the latter, as interviews with representatives
of VPIU and gminas showed, was not an easy thing to do. Difficulties followed by protests
were caused by the requirement for the candidates to log in via the Internet. One of the
respondents from Lubelskie voivodship suggested even that this was a significant reason
of withdrawal from participation in any course. This may seem surpising to some degree,
as it was possible to enroll by the phone.
The trainees stated that participation enabled them to acquire or develop competence in
computer operating and in use of operating software and of the Internet. Some of the
respondents considered the ability to prepare multimedia presentations to be an
important skill. Usually, the new knowledge acquired during the course included creating
www sites, using computer for school work management and network administration.
Despite the generally positive opinion about the training courses, 22% of the respondents
stated that they had not acquired any new competence at all and 11% that they had not
developed any of the skills they had already had. These opinions may partly result from
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the fact that 1/5 of the respondents had already attended IT courses. It is possible that
some of the respondents had not gained comprehensive information about the contents
of particular training and made a choice which was inadequate to their needs.
A vast majority of the beneficiaries – 77.7% - use the newly acquired knowledge in their
school work. Most frequently – when preparing materials for lessons, including
multimedia presentations, when preparing tests to check students’ knowledge, for
administration and management activities and a certain group – for network
administration.
Comments on training organisation
Suggestions concerning organisation apply to the fact that the candidates had to wait for
a too long time for their courses and that at the same time they were informed of the
dates of training too late. Critical comments about the living conditions during courses
repeat. As far as the merits are concerned, the most important comment applies to the
selection of training groups. The unequal level of competence limited the more advanced
persons’ chance to develop their knowledge.
Didactic aids and software purchase
Not all school directors who were interviewed (although most of them) were interested in
applying for this type of support. Some schools do not have the computer equipment
needed to use the software that has been purchased. Those gminas that applied for
training and for the supplies being discussed here were given preference and had more
chance for a higher position in the ranking. As interviews with gminas’ representatives
showed, local decision makers were not everywhere willing to allocate large funds from
scarce budgets for equipping schools with additional didactic aids. Especially, that some
school employees experienced in this type of purchasing stated that the prices of the
offered items were not low.
To apply to this task required one to understand the importance of the resources referred
to for education. Moreover, some directors of schools simply did not believe, that there
would be any co-financing for an expenditure like this. This is what one of gminas’
representatives said: “...It has just occurred to me what directors said at the moment
when these aids were delivered and they could take them. This was very interesting
visually: items for one of the schools were on 20 tables and there were huge parcels
there, while some other school was given 2 maps for example. The disproportion was
evident. This particularly applied to directors of small schools – I find it hard to say
anything, as I do not know the entire project – but they did not know clearly that they
would not have to pay for this. Directors, particularly those from small schools, said: ‘I
ordered little, because I did not know whether I would not have to pay for this from the
school budget”.
Most often, school directors explained their decision concerning purchasing with the wish
to enhance the quality of education and with the lack of similar didactic materials in their
school. It may surprise that 15% of the respondents were not able to justify, why the
items had been purchased. Some of them stated that there were more urgent needs in
their schools, others – that the aids were seldom used.
Primary schools were most willing to purchase materials for teaching foreign languages.
More than a half of the schools managed by the respondents purchased one package
only; seven packages was the record purchase.
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Didactic aids for teaching mathematics, Polish language and foreign languages were
most popular among materials intended for both primary and middle schools. Nearly a
half of schools purchased more than one package (from 2 to 5). But some of them
purchased even 20-30 packages.
Middle schools (gymnasia) were most interested to buy materials intended to supplement
teaching natural sciences: biology, chemistry and geography. It is worth stressing that
there were some schools that purchased a complete equipment for biological or chemical
labs (nearly 12% of our sample of 150 schools).
Maps were most popular of all didactic aids – they were purchased by nearly 70% of
schools. More than a half of schools bought multimedia programs (available on the list of
didactic aids, not on the lists of software). Graphic tables, foliograms, models, musical
instruments and optical instruments were also very popular. It is worth stressing that 1/3
of schools purchased sets for correcting faulty posture – medical statistics of such
incorrectness are alarming in Poland.
The interviewed directors were of the opinion that their schools had lacked the didactic
aids that were purchased under the Sub-Component. The decision to buy was most often
made by directors (nearly 75%), but in most cases this was on request of teachers. The
staff council decided what should be bought in 15% of schools. The fact that there were
only few cases when pupils’ parents participated in the decision-making process gives
evidence to these schools’ very low degree of co-operation with the local community.
The directors evaluated the didactic aids purchased under the Project as rather useful –
38% and very useful – 58%. The remaining few percent expressed negative opinions.
The utility evaluation resulted from directors’ conviction that the materials at issue are
commonly used in their schools. Nearly 60% of the respondents estimate that teachers
use them rather often, and 1/3 – that very often. But 30% of the group of school directors
state that they do not use any additional didactic aids in their work. Most often they
explain that there are no materials for a particular school subject and that they do not see
any need to do this.
A vast majority of persons using additional didactic aids – 96% - are able to indicate the
resultant benefits. Most often, they mention increased facility and attractiveness of the
teaching process, the opportunity to expand students’ knowledge and to enhance their
activeness.
Apart from didactic aids, schools could also purchase instructional software. Almost all
schools managed by directors participating in the survey have their separate computer
rooms – 87%, or computers are available in classrooms – 12%. The average rate of
students per computer is 23, the larger the school the worse the proportion. Students
may use computer workstations after classes in 90% of schools. Almost all schools are
connected to the Internet, but 42% of them do not have a fixed connection and the facility
of using the Internet is limited there.
Before being offered the chance to apply for co-financing under RDP, 65% of schools had
didactic software. Most often, this included encyclopaedias and atlases (48%),
instructional packages for particular subject (27%) and dictionaries and programs for
teaching foreign languages (24%).
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In case of primary schools, software for teaching Polish language and mathematics were
purchased in the first place and for integrated teaching less often. Usually, schools
purchased one or a few packages, although some of them ordered 40 or even 50.
As far as the software intended for primary schools and middle schools (gymnasium) is
concerned, packages for teaching artistic subjects, foreign languages, natural sciences
(integrated packages), book reading education and media-related education were
purchased most often. Usually, schools did not buy many packages, but in single cases
even 30 packages were ordered.
Middle schools (gymnasia) – similarly as in case of didactic aids –usually choose
packages supporting teaching of natural sciences, geography and mathematics.
School directors substantiated their choice of particular software packages with the need
to enrich teaching various subjects and to make it more attractive, the needs reported by
teachers, the need to supplement the software they had already had and with the
availability and financial affordability of the software offered under the Project.
Most often, the software was chosen by school directors and teachers who were
supposed to be its main users; the decision was made by the teaching staff council in
fewer cases (14%).
The respondents gave high marks to the quality of the purchased software; it was graded
as rather useful in 55% and as very useful in 39%. Only 6% of the respondents were of
an opposite opinion. In the directors’ opinion, the software is used rather often – 65% and
very often – 10%. In the respondents’ opinion, the use of didactic software is mostly
limited by the shortage of suitable computers (31%), by the lack of computer-related
competence and by teachers’ concerns (23%), as well as by the little usefulness of the
packages (11%). Nevertheless, 72% of directors declare that they use the didactic
software themselves. The respondents referred to such benefits of using didactic
software as students’ increased activeness, the possibility to make the process of
teaching easier for the teacher and to expand students’ knowledge.
Comments on organisation of the purchasing procedure
Most comments were about the tasks’ too long duration – representatives of gminas
criticised the idea to organise the central bidding in particular. Some comments applied to
excessive costs – the respondents stated that in case of such a large transaction prices
should be lower than wholesale prices known to them.
Regional consultants referred to complaints of special schools directors’ who did not find
any aids for disabled students on the list of materials being offered. This should be
considered as a significant oversight on the part of MONES, as this ministry had
approved the list of materials.
Use of Scholaris Internet portal
Presently, 11% of teachers who attended didactic training and who filled the
questionnaires, use the portal. Most often, they look for information concerning their
discipline and use of didactic aids, for scenarios of classes and for any interesting
information or pedagogic news.
It may seem surprising that so few school directors use the educational portal – less than
18%. The proportion of portal users is highest in Lubelskie voivodship – 35%. School
199
directors look for current information and materials for lessons, often – for lesson outlays.
Some directors and teachers declare that they read publications presented in Scholaris.
14% state that they only browse the site.
3.3 Summary
3.3.1
Cost-Benefit Analysis
Evaluation of efficiency
According to what gminas’ representatives stated, all beneficiaries had been trying to
minimise their own costs, apart from the financial participation envisaged in the Project.
This is why the Project was implemented by employees as a part of their regular duties at
the level of gmina. The respondents expressed an opinion that such administration costs
as business travels, phone calls, paper, etc. were not high.
A vast majority of gminas decided to cover their own contribution from the funds they had
at their disposal at the moment. Only few respondents referred to loans offered by the
voivodship. Similarly, there were few examples of attempts to raise funds from various
local institutions or even from inhabitants.
It is difficult to estimate, how much additional time the beneficiaries had to spend on work
relating to RDP. School directors participated in filling applications and supervised
refurbishing works.
Even those persons who considered the co-financing to be too low, agreed that without
this support they would not be able to effect the investments referred to.
Building companies were selected for refurbishing assignments on the lowest price basis.
According to a vast majority of gminas’ representatives and school directors, the quality
of workmanship raised no objections. It will be possible to quantify economic benefits
resulting from such improvements as thermal insulation of buildings after the first heating
season.
Costs of training should be regarded as moderate. The comparison with other
companies, both private and state-owned teachers development centres – shows the
advantage of STO, considering particularly the quality of training which was confirmed by
trainees’ assessment. But, although the cost that some teachers had to incur individually
was relatively low (around PLN 200), it was twice as high as the price paid by students of
post-graduate programmes financed by the Ministry of Education and Sports in the form
of a grant. Moreover, the trainees paid for travelling to the training location on their own.
Some of the respondents (representatives of gminas, school directors) found the prices of
didactic aids and software relatively high. It is not a simple thing to compare the prices
here, but the co-operation was established with renowned companies who offered a
range of products adequate to the Project needs. The choice of such companies was
limited on the Polish market and one should state that it was correct.
It is not easy to draw up a balance of Sub-Component B2 costs and benefits in case of
training effects or development of the didactic base. It depends on the beneficiaries to a
high degree. It is difficult to estimate, to what degree they will use the new potential. One
should expect that the quality of teaching will be higher, but it is difficult to predict the
200
scale of this change responsibly. In case of training, the cascade effect (knowledge
sharing) intensifies the benefits.
Similarly, it is difficult to compare the costs of starting Scholaris portal with the intangible
benefits in the form of opening the educational forum which is also used for exchange
and dissemination of professional experience and opinions.
3.3.2
Evaluation of Project effects sustainability
Tasks of Sub-Component B2 was expected to result in two types of effects. The first type
includes immediate effects, the second one – a long-term impact. The material support
provided to beneficiaries enabled them to effect rehabilitation works within the scope
described in the present document, to purchase didactic aids and/or software. These are
physical, observable changes that would not occur – not to such an extent, at least –
without RDP. The next group of effects, easy to predict, includes economies resulting
from thermal insulation of buildings where windows were replaced, roofs were mended,
etc. Effects of this type can not be evaluated in quantitative categories only. Physical
conditions in which pupils learn are very significant for the quality of teaching.
The present sub-section of the study will present qualitative long-term impact first of all.
These can be found in the rehabilitated school base as well. Refurbished and equipped
common rooms should serve students for many years. For many of them, this may be the
best place to play safely, to make their homework under care of helpful teachers, to
spend their free time in a manner conducive to development.
Refurbishing and modernisation of school facilities included also building gymnasia
(sports halls) that are still lacking in many small schools. There is no need to substantiate
the importance of supporting children’s physical development or benefits resulting from
organisation of their free time by the means of physical activities.
Since September 2004 six years old children have been subject to compulsory education.
Usually, education reformers do not leave much time to gminas managing the local
education to prepare for new tasks. Hence, the idea to include this new task should be
appreciated, although there was less interest in it than in case of previous tasks. But well
equipped pre-school education classrooms for youngest inhabitants of small farming
gminas should provide a better educational start to children in rural areas, where very few
children go the kindergartens.
Training and supply of didactic materials and educational software had been designed in
hope that they would make it possible to achieve specific qualitative indicators in the field
of improving the quality of education, such as:
•
better, team work-based school management,
•
more interactive elements in teachers’ work,
•
widened scope of teaching methods, including activating methods,
•
more diversified approach to teaching, through wide use of didactic aids,
•
use of information and computer technologies in teaching,
201
•
increased interest in purchasing up-to-date teaching tools using multimedia
technologies.
Scholaris Internet portal was expected to strengthen the chance for achieving all these
indicators through interactive participation of education personnel and clients in its
creation and use of education-related information and products presented there.
The refurbishing and modernisation program, besides the improvement of school facilities
proper, was expected to contribute to the increase of education resources utilisation in
rural gminas through so-called rationalisation of the teachers/students rate (i.e. increasing
the number of students per one teacher).
Most participants of training courses for school directors assure that they have acquired
and use in practice the skill to organise a group for active team work. Similarly, teachers
who attended didactic courses declare, that they use the knowledge acquired during the
courses in their day-to-day school work, particularly – activating methods, new methods
of grading and wider use of didactic aids and new solutions of educational problems.
Most teachers shared their new knowledge with their colleagues and some of them
initiated teams developing new curricula in schools, educational activities or after-classes
activities. What is also important, the conviction has been deepened that life-long
education of teachers is a necessity. Participants of IT training are willing to use computer
technologies in teaching and in their administration work more often. Shortage of
equipment and suitable premises may be a barrier.
Further development of didactic infrastructure will depend on the financial condition of
rural education to a high degree. And this is most determined by subsidies for education
and by the growth of gminas’ wealth which is in conjunction with the condition of economy
on the macro scale. Nevertheless, teachers’ belief in the value of using various didactic
aids in their day-to-day teaching work and their pressure to gain these aids may enhance
the motivation of local decision makers to purchase what is needed.
The sustainability of investment effects should be estimated at a few years or at very long
years, depending on the scope of work. The sustainability of the effects of training and
purchasing should be strengthened by the means of further activities, continuous
refreshing of the didactic base and continuous development of teachers’ competence.
One should also remember about factors that reduce the sustainability of these effects,
such as: changes in curricula (currently, MONES is working on changes in the teaching
programme basis) and changes in the teaching staff employment (it is planned that a
large group of teachers will retire in 2006).
3.3.3
Sub-Component B2 was implemented in two phases.
Phase I: rehabilitation and investment tasks including:
202
•
refurbishing, renovation and modernisation of primary schools, middle schools and
special schools buildings;
•
renovation and modernisation of school common rooms.
•
renovation and equipping pre-school education classrooms (II stage of phase I –
since May 2003)
Phase II: training and didactic tasks including:
•
didactic training for teachers and school directors;
•
IT training;
•
purchase of computer software;
•
purchase of education materials and equipment (teaching aids).
203
Figure 45.
Source: Consultant’s own analyses based on Interim Reports of Project Management, PCU
204
Implementation of Sub-Component B2 began in 2001 and most of the tasks were
completed by October 2004.
At the beginning of the year 2001 rules of Sub-Component implementation, criteria of
evaluating applications for co-financing of refurbishing tasks and deadlines for applying
were specified. Ranking lists were approved at the turn of May and June 2001. The value
of applications exceeded the co-financing potential 6 times.
First of all, applicants requested for co-financing of refurbishing and modernisation of
school facilities; moreover, the application procedure for school common rooms had to be
repeated. First contracts for co-financing were signed on 31 May 2001 in Świętokrzyskie
voivodship and first contracts with service providers were signed in July. First works were
completed by the beginning of the school year 2001/2002. As some economies resulted
from bidding procedures, projects from more distant ranking positions were accepted. Cofinancing contracts and service contracts were signed all over 2002. At the same time,
relatively many problems were encountered during the bidding procedure for “Minor
Works” (Małe Roboty). These caused a delay in procedures. PCU submitted the first
application for disbursing funds to gminas in September 2001.
In July 2001 a package of documents was prepared for the purpose of applying for
didactic and IT training and for purchasing educational materials and software. The
application procedure, preceded by training how to apply, was conducted among school
directors, teachers, representatives of gminas and powiats at the beginning of 2002. In
June, the applications were submitted to the Regional Steering Committee (RSC) to draw
up ranking lists. It tuned out that there was less interest in training than in purchasing
educational materials and software, therefore MONES applied to the World Bank for reallocation of funds. A positive response to the application was given in September 2002.
In January 2002 EPRD company was selected to provide technical assistance in Project
implementation and monitoring. With regard to delays in Sub-Component implementation,
contract execution was suspended until September 2004. EPRD organised a team of
Regional Consultants whose task was to perform implementation activities and training
actions for the personnel of gminas. The team provided consultations in preparing and
submitting applications and technical assistance in analysis of applications to VPIU.
Moreover, the team participated also in preparation of bidding documentation for training.
Besides, EPRD carried out a qualitative evaluation of the Program outcomes.
In October 2002 a bidding for creation of the Internet Centre of Education Resources was
settled. The project was assigned to OSI Compu Train S.A. The bidding for computer
equipment delivery was settled in November 2003.
In May 2003, the National Steering Committee (NSC) adopted a resolution to allocate
additional funds for renovation and equipment of schools and school common rooms from
the Project reserve (EUR 7 million) in 9 new voivodships. The work to develop application
evaluation criteria and to construct an appropriate form began immediately. At the end of
2003 applications were collected and ranking lists were drawn up at the beginning of
2004. The investment works were continued even in the third quarter of 2004.
The bidding for delivery of software for schools was settled in December 2003 and in the
same month Young Digital Poland S.A. commenced delivering the software. In the
second quarter 2004, voivodships signed contracts with the provider of didactic training –
Społeczne Towarzystwo Oświatowe (STO). The recruitment of trainees and the pilot
training was conducted completed by the end of June. In the third quarter of 2004
contracts were signed with the Consortium of Polish Training Companies – the IT training
205
provider. The Consortium commenced implementation of IT training in July 2004. STO
completed its training in September 2004 and IT courses were continued even in the
fourth quarter of 2004. At the end of the third quarter of 2004 contracts for delivery of
education materials and equipment were signed and deliveries were completed by the
end of October 2004.
When assessing the Sub-Component activities one should stress the efforts leading to reallocation of funds from tasks that were less desired by the beneficiaries to those for
which a higher demand was declared.
The procedures that protracted the time of waiting for training and for purchase of
materials and software should be assessed definitely negatively. This is particularly
important, as according to the organisers’ interesting conception, participation in training
was supposed to be interrelated with purchasing and to lead to the global effect of
improved quality of teaching in rural primary and middle schools and better use of school
resources, these effects leading to achievement of the Sub-Component’s basic objective.
As far as the synergy of objectives and activities of the Sub-Component and the whole
project, it is worth mentioning two detailed and one basic issue. The first specific issue
was the positive preparatory training (administration of the application procedure) for
gminas participating in Component C. The second, indicated by representatives of
gminas, was the need of better synchronisation of activities relating to the school network
consolidation and to the process of building roads for transporting children to schools.
The basic issue was the matter of increasing chances for human capital development
through coherence of activities designed for all Sub-Components. Building the necessary
infrastructure and supporting small business means building the labour market for future
graduates of rural schools. Education quality improvement and better education of
individuals translates into reduction of unemployment. Developing competence of people
leading local self-governments means more efficient functioning of all regional institutions
and experience gained in the Project should be used when applying for EU funds. Data
obtained from interviews with representatives of VPIU and gminas show that it was
difficult to achieve such a serious effect of synergy mainly due to financial limitations of
local self-governments and due to organisational reasons.
3.3.4
All respondents from gminas participating in RDP stated that RDP was an exceptional
project in terms of sensitivity to the education-related needs, simplicity of applying and
professional preparation and support provided to beneficiaries. Although in comparison
with other programs, the proportion of co-financing was rather high, the beneficiaries wish
that the financial conditions were even better and the global amount of co-financing
higher. Education needs are immense in rural areas and it is hard to satisfy them without
a giant financial support. RDP objectives and activities were adequate to the needs and
these good ideas should be continued.
RDP beneficiaries suggested that the number of beneficiaries could be increased in
future similar projects, if possible. Small schools that can not be closed due to
geographical and social reasons are also in need. Representatives of gminas think that
kindergartens and secondary schools need support as well. These judgements are
justified, as the number of kindergartens and children going there in rural areas in Poland
is one of the lowest in Europe and this fact is a certain reason of later disparities in the
206
field of education. Secondary schools, particularly those with vocational profiles, require
serious restructuring, but there are no funds for this.
Representatives of VPIU proposed that bidding procedures could be held at the
voivodship level and some of them suggested even that the this authority should be
delegated directly to gminas. This would reduce the time of waiting for results of the
bidding and would eliminate all negative consequences of delays that occurred in the
Project this time.
When thinking about further support to education in rural areas, it is worth considering the
following activities:
•
Further, continuous modernisation of the school infrastructure – buildings, facilities
and the didactic base as well.
•
Organising various forms of teachers’ continuous training, not only by the means of
external courses, but also through reconstruction of regional (voivodship) and district
(powiat) training centres that might offer training teachers directly at schools and
organise local conferences enabling exchange of experience.
•
Encouraging Polish universities to co-operate in the field of teachers development
and also to develop an educational offer intended for students of middle and
secondary schools – future university students; to organise voluntary activities
supporting education in rural areas (e.g. actions of the “student with a class” type).
•
Offering a wide and inexpensive range of educational products, activating students’
extracurricular cognition development, building their confidence in educational
success, facilitating them access and stimulating them to self-development by the
means of extracurricular activities, in the library, via the Internet.
•
Providing a wide access to the Internet to schools (fixed connections) and the
possibility of regular refreshing and upgrading computer hardware and software.
•
Providing support to small schools, so that their isolation is not deepened and the
appropriate education level is ensured.
•
Grants and scholarship programs managed locally – schools might construct
education quality enhancement programs and raise funds for them; grant programs
should be extended, but made dependent on students’ achievements, not only on
their material situation.
•
Continuous monitoring of students’ school achievements, analysis of outcomes of
external final exams held in middle and secondary schools and analysing students’
planned education careers; motivating them to extend their education paths.
•
Voivodships’ assistance in encouraging local self-governments (powiats and gminas)
to establish contacts with schools from the nearby large cities and with similar rural
schools abroad, on a similar basis as city schools do.
Without the continuous stimulation and financial support to the above activities aimed at
education in rural areas, the quality of school work – and consequently, the quality of
graduates – will not be enhanced so that in the future they may become a large group
ensuring improvement of economic and social conditions of living and working in regions
that are subject to marginalization today.
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Beata Ciężka
4 Sub-Component B3
Beata Ciężka
209
Beata Ciężka
4.1.1
Identification of Problems Sub-Component B3 Responded to
The analysis of Project documents shows that (despite the fact that there is no such
provision in the Project design documentation), the low development level of rural areas
and their inability to function in the European Union structures were the basic problems
RDP was intended to address. The objective of Sub-Component B3 was to increase the
level of efficiency and effectiveness of local and regional administration (gminas, powiats
and voivodships) within the voivodships covered by RDP through institutional
development, training programs and capacity building measures and thereby improve the
conditions for creation non-farm employment in rural areas.
In particular, the following problems were identified with regard to the self-government
administration in PAD:
•
lack of expertise in local and regional administrations in activities supporting local and
regional development, including development of specific development plans for their
gminas, powiats and voivodships in particular,
•
limited involvement of citizens in the process of governing caused by so-called
culture of passivity and the existence of few formalised opportunities to participate in
the process of making decisions that influence the life of all citizens,
•
authorities representatives’ and self-government
professionalism and inability to use the best practice
administration’s
lack
of
In case of the problem defined as the lack of expertise in local and regional
administrations in activities supporting local and regional development, one should
stress that this concerned mainly new powiats and voivodship self-governments
established as a result of the administration reform. This aspect was addressed when
defining the source of problems as “decentralizations of public services and finances to
two levels of democratically elected self-government authorities: powiats and
voivodships”. It was also stated that “decentralisation of public services and finance to
local self-governments is placing great demands on public administration, especially in
rural areas”, as “councillors and board members in rural areas often do not have the
necessary organisational and managerial skills, while there are new functions to
administer and new processes to apply”88.
The next problem was diagnosed as limited involvement of citizens in the process of
governing, described as the culture of passivity. This means that in RDP authors’
opinion, the not entirely formed civic society, i.e. the fact that there is no real community
of inhabitants, aware of their responsibilities and working for the local community
effectively, is a barrier which makes it impossible to build a model public administration
institution. The culture of passivity is deepened by the scarcity of formalised opportunities
to participate in decisions which affect citizens’ lives89.
88
POLAND – POLAND RURAL AREAS DEVELOPMENT PROJECT; Project Appraisal Document,
p. 3.
89
PAD, p. 32.
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Beata Ciężka
On the other hand, the problem of insufficient professionalism in the Polish public
administration was indicated in a manner referring a wider organisational context,
including the Constitution, stating that the administration is too bureaucratised, far from
the managerial model and too limited by the brace of regulations and the traditional
system of power, where decisions were made based on political arguments, instead of
economic reasons. The tendencies observed in the Polish self-government administration
departed considerably from changes that occurred in most European administrations and
all over the world in the nineties. It also turned out that the Polish administration had a
significant problem of the too weak institutional potential of self-government
administration manifesting itself in the lack of appropriate organisational structures,
operating procedures, mechanisms ensuring the local community participation in
90
managing public matters and the lack of competent, efficient officers . Apart from these
problems, such issues as the shortage of knowledge about development of
teleinformation technologies and the inability to use this knowledge in administration’s
91
activities were significant as well . Polish administration’s limited access to latest
information technologies was the basic barrier to developing a “modern institution”. This
reduced significantly the ability to process information quickly and effectively.
Another problem PAD referred to was administration’s unadjustedness to play new roles
in the changing economic situation. In its new role, the administration is expected to have
a serious influence on achieving a significant pace of civilisation development. To play
this role, it has to strengthen the quality of its work and to make the work of all public
services and forces in its territory more efficient.
The situation assessment for the purpose of Sub-Component B3 did not include any
definition of problems that restrain creation of new jobs in non-farming professions in rural
areas. It is also difficult to find any direct references to the role that should be played by
self-government in creation of non-farm employment in rural areas. Moreover, no
diagnosis was made to indicate the direct relation between the efficiently working selfgovernment administration and the economic development, with a particular focus on
creating new jobs in the off-farming sector. The definition of these problems may be
reconstructed indirectly through analysis of tasks planned for Sub-Component B3. The
description of tasks includes an assumption that institutional development of public
administration will contribute to activation of the private sector. So, the conclusion was
that the outdated public administration – both central and self-government as well – that
had not been modernised, was a barrier to development of non-farm employment. One
may conclude from this reasoning that the opportunities for the private sector
development grow along with the growth of public administration’s support to the market
economy, creating sound policies and providing public goods and services in a costeffective manner.
Evaluation of Sub-Component rationale
The rationale of Sub-Component B3 has been evaluated on the basis of analysis how
problems were defined and what role was given to Sub-Component B3 in the
implementation of RDP’s other Components. The diagnosis of the key problems has
been assessed with reference to the National Strategy for Rural Development – the basic
strategic document specifying goals of Poland’s regional development for the years 2001
– 2006, i.e. the period when RDP was implemented. The analysis refers also to other
90
Report of the Institute for Market Economy Studies, p.10.
Zarządzanie wiedzą w społeczeństwie uczącym się; Centrum Badań nad Edukacja i innowacją;
OECD 2000.
91
211
Beata Ciężka
studies where regional development problems were diagnosed with a special focus on
rural areas development.
In case of the problem defined as lack of expertise in local and regional
administrations in activities supporting local and regional development, the authors
of PAD defined the problem correctly. It should be stressed here, that voivodship selfgovernments play the key role in regional development. This was their responsibility to
work out development plans at the moment when the program of support to be provided
under RDP was being created, to provide a basis for the contracts to be signed by
Marszaleks with the Government. It was much more difficult for powiat self-governments
to find their place, particularly in the area of relationship between powiat self-government
and gminas – especially rural gminas and tasks to be performed for them. The indication
that powiats should be created was in the constitutional rule of auxiliarity. According to
this rule, powiats were supposed to perform such tasks for gminas that these were
unable to perform adequately due to organisational and economic reasons. Delegation of
tasks to powiats was expected to increase the efficiency and the effectiveness of public
administration institutions’ activities and to improve the quality of services provided by
them. It should be noted here that in terms of RDP implementation, the main task of
powiats was to stimulate occupational activeness of the rural population.
Powiat boards (Starostwo), acting through Powiat Labour Offices, were supposed to
analyse the local labour market and to implement necessary programs resulting in
counteracting the unemployment, including long-term unemployment, and to activate
rural inhabitants in undertaking non-farm jobs. Should the effectiveness of Powiat Labour
Offices’ work be measured by the rate of unemployment level in rural areas, the effects of
their activities were insignificant, despite the support provided under PHARE 2000, 2001,
2002 Human Resources Development Program in the years 2002, 2003 and 2004. The
situation was similar in case of other tasks performed by institutions reporting to Powiat
Boards, such as Powiat Centres for Family Assistance or secondary schools. It is worth
adding that the Union of Rural Gminas of the Polish Republic representing selfgovernments from rural areas, expressed its dissatisfaction with the performance of tasks
by powiat administration and this was manifested in a resolution authorising the Union’s
board to take steps aimed at liquidation of powiats.
In case of the self-government administration of the basic level (gminas), the problem of
lack of expertise in local and regional administrations in activities supporting local
and regional development was defined as the lack of public administration
representatives’ competence – particularly in rural areas – in working out and
implementing development programs. This problem was identified in PAD and in the
National Strategy for Regional Development as well. The Strategy states that selfgovernment administration has had no sufficient potential to meet the new challenges
imposed by programs relating to Poland’s accession to the European Union, indicating
that "it seems in this situation that the significant dispersion of funds available to territorial
self-government among more than 2.5 thousand subjects and the technical potential to
prepare a sufficient quantity and quality of projects aspiring for co-financing from
assistance funds is the more realistic barrier to absorption of assistance funds”. It is
difficult to state now, how significant the problem was. Should one assess the
preparedness of self-governments, including rural ones, on the basis of applications
submitted by them to obtain co-financing under various projects in the period 2000 –
2004, one may say that this was not a problem for them. When analysing the effects of
SAPARD program only, one may say that gminas submitted more applications for
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investment tasks that the program funds had envisaged92. The implementation of IOPRD
proved that self-government administration, including rural gminas, did not have any
problems with preparing applications, despite their increased complexity and new
requirements relating to the need to prepare a feasibility study. Interviews conducted with
representatives of self-government administration show that a decision to assign funds
depends not on the quality of applications, but on voivodship’s financial potential first of
all.
The territorial self-government units’ capability of financing investment expenses was the
problem which the authors of PAD did not take into consideration and which was stressed
in the National Strategy for Regional Development. In the opinion of Strategy authors, this
should not be a barrier to absorption of EU assistance funds globally. According to data
of the Institute for the Market Economy Studies, in the years 2001-2006, the territorial
self-government will be able to spend some PLN 69.5 billion on new investment tasks
financed from its own funds. One-third of these funds (around PLN 23 billion, i.e. EUR
5.75 billion) could be allocated for co-financing projects co-financed by foreign assistance
funds and the Budget. This amount is sufficient to provide co-financing of regional
development at the level of 25%-50% in the whole period covered by the Strategy.
One can conclude, how real the problem was, on the basis of effects achieved as a result
of such programs as PAOW, PHARE 2000, PHARE 2001 and SAPARD. Territorial selfgovernment units, including rural gminas, did not have any serious problems with
performing the investment tasks. It should be noted that despite the fact that in the years
1998 – 2001 a decrease of investment expenses took place in small and medium-sized
gminas as a result of a fall in self-governments’ incomes, a significant revival of
93
investment activities was observed in rural areas in the years 2001 – 2003 .
The geographical pattern of the territorial self-government units’ financial potential is the
next problem related to Poland’s accession to the European Union which has been
identified in the National Strategy for Regional Development. The document says: “the
largest ability of self-governments to finance development activities counted per
inhabitant can be found in Mazowieckie voivodships, while the smallest - in WarmińskoMazurskie. Moreover, significant disparities of projects co-financing abilities exists within
individual voivodships too, e.g. the financial potential of gminas in the district of Warsaw
94
is incomparably higher than in case of small gminas in Mazowieckie voivodship . In
1999, the highest productivity rate was noted in: Mazowieckie, Śląskie, Pomorskie,
Dolnośląskie and Wielkopolskie voivodships, while it was lowest in Świętokrzyskie,
Lubelskie, Podkarpackie and Podlaskie. The level of competitiveness and development
was highest in Pomorskie, Wielkopolskie, Mazowieckie, Małopolskie and Śląskie. They
owed their position to the high level and efficiency of the production sector, to human
resources potential and to the relatively well-developed infrastructure. Świętokrzyskie,
Warmińsko-Mazurskie, Podlaskie, Lubelskie and Podkarpackie were evidently weakest
95
regions in terms of efficiency, infrastructure development and living standards . When
compared with the EU regions, Świętokrzyskie, Lubuskie, Podlaskie, Podkarpackie and
92
Poland MID-TERM Evaluation of the SAPARD programme in Poland for the implementation
period 2000-2003 (PL-7-05/00) Ref.: EUROPEAID/114803/D/SV/PL Final Report December 2003
AGROTEC SpA.
93
Paweł Swianiewicz, Finanse lokalne - teoria i praktyka, Warszawa 2004, p. 205.
94
NSRD, p. 79.
95
NSRD, p. 13.
213
Beata Ciężka
Warmińsko-Mazurskie were economically weakest in 1999 (their GNP ranged from 24%
96
to 26% of the average EU level) .
Citizens’ limited involvement in the process of governing described as the culture of
passivity was the next problem the authors of PAD referred to. It should be stressed that
the problem of population’s participation in decisions of local authorities should be
analysed with the size and the type of gmina taken into account. According to studies,
inhabitants of rural areas placed much more confidence in self-government authorities
97
than inhabitants of cities did . Besides, they were more deeply convinced that these
authorities act in the interest of the local community and not in their own interest. For
example, rural dwellers think that the problem of corruption exists at the central
98
administration level first of all – not on the self-government level . The self-government
election attendance rate which is higher in the country than in cities gives evidence to the
rural population’s greater involvement in the local community life. Inhabitants of rural
areas concentrate on solving problems of the local community rather than on participation
in “great politics”, therefore the attendance rate of the parliament election, presidential
election or the latest European referendum was lower in rural areas.
Rural inhabitants’ participation in civic activities is different in nature than in case of
inhabitants of cities. Most activities are inspired by self-government authorities in rural
areas and to a much lower degree by non-government organisations. The role of NGOs
in the local community functioning is different in rural gminas than in cities. The research
made by Jan Herbat shows clearly that associations and foundations are typical NGOs in
cities, while in case of rural areas, all types of “action” organisations are more active –
voluntary fire brigades, village women’s clubs, all types of committees set up to build a
99
water supply network for example . The research shows that inhabitants of rural areas
100
are more involved in social activism than inhabitants of cities
and that they are more
willing to work for the community, to co-operate with other people and to participate in
101
political activities . On the basis of these facts one may advance a thesis that an
accelerated process of civic society building occurs in rural areas in the classical meaning
of the word, although of a different nature than is observed in urban environments.
The lack of the professionalism in the Polish public administration was another problem
indicated by the authors of PAD. But studies on the self-government administration
functioning showed a clear difference between rural areas and cities. Rural dwellers were
more satisfied with the manner how self-government officers treated them. On the other
hand – according to PAD – self-government administration in rural areas had problems
102
with drawing up investment plans . Some gminas planned their investments in a cycle
which was not longer than one year. The fact that rural self-governments were not using
a cost-benefit analysis, the IRR and the NPV when planning their investments was
96
NSRD, p. 9.
Paweł Swianiewicz, Życzliwa obojętność. Władze lokalne i reforma samorządowa w oczach
opinii publicznej w krajach Europy Środkowej; Warszawa 2001.
98
Op. cit., p. 61.
99
Jan Herbat, Empiryczne modele społeczeństwa obywatelskiego w Polsce. (Empiric Models of
Civic Society in Poland” ; master degree thesis; Institute of Socilogy of Warsaw University. Warsaw
2004.
100
Polska wieś 2002. Raport o stanie wsi. (“Polish Rural Areas 2002. Report on the Rural Areas
Condition”) Fundacja na rzecz rozwoju polskiego rolnictwa (Foundation for the Polish Agriculture
Development), Warszw 2003, p. 75.
101
Polska wieś 2002, op. cit., p. 76.
102
Polska wieś 2002, op. cit., p. 69.
97
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another problem identified correctly in PAD. It was a necessity to use this method when
applying for EU or World Bank funds.
Sub-Component B3 was expected to play a special role in terms of RDP implementation
cohesion. Apart from its typical tasks, i.e. implementation of the Institutional Development
Program, the Training Program and the support to the Ministry of Interior and Public
Administration (MIAPA), tasks of a “horizontal” nature were designed for the SubComponent. It was assumed that a special stress will be put on public management and
administration services during training courses and this was supposed to have a
significant impact on the successful implementation of RDP and its program
Components. Horizontal activities of Sub-Component B3 were planned to include surveys
intended as a link between activities in support of self-governments and other
Components of RDP. This Sub-Component activities were designed to co-ordinate
activities with other program Components and to ensure quality control, including
mechanisms of monitoring and assessment.
Comparison of Sub-Component B3 with other Similar Programs
Sub-Component B3 was the first co-ordinated and large government program improving
management in self-government administration and addressed to gmina and powiat
administrations directly. Earlier, only international bilateral projects had dealt with these
problems: USAID “Local Government Partnership Program”, British Know How Fund
“Support to Self-Government” and indirectly – few activities performed under Phare,
addressed to small groups of officers and implemented in selected local selfgovernments. The philosophy behind these programs was to teach the selected selfgovernments the best management practice. In the future, these units were expected to
become a germ of the best practice dissemination in neighbouring units of territorial selfgovernment. The experience gained as a result of nearly 15 years of these programs
functioning shows that the effort to disseminate these locally developed best practices on
a larger scale was unsuccessful. Usually, assistance was provided to the same selfgovernments under various programs, as they developed a skill to obtain support from
foreign assistance programs throughout these years.
At the same time, organisations representing local self-governments were not able to
work out a uniform training program for their members. All training programs that were
provided were of an immediate, short-term nature. They were designed to provide
knowledge necessary to implement acts and laws. At the same time, these organisations
Have not developed any consultancy system for gminas, similar to those existing in many
EU countries. On the other hand, what seems obvious in the Polish self-government
tradition, the Government has not developed any well thought-out policy of systematic
training and consultancy for gmina and powiat self-governments. On the other hand, selfgovernment activists would regard a policy like this as Government’s interference in their
internal affairs. “Self-governance” was the basic value for self-government administration,
activists and authorities in the last 15 years. Self-governance identified as a strict
separation of territorial self-government units functions from the self-government
administration. The opinion was that the rules of government administration functioning
did not apply to the self-government administration. This is how one may explain selfgovernment activists’ reluctance to introduce a competition procedure of appointing
officers similar to that which is applied in the government administration. It seems that
these views were confirmed by politicians who assumed that the self-government
administration was managed optimally in Poland and if it was not, than this was selfgovernments’ problem.
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Beata Ciężka
Sub-Component B3 was the first program which, despite the lack of adequate legal
regulations, was intended to introduce procedures existing in the government
administration – the public administration officer’s code of ethics, competitions for posts in
the public administration, the social dialogue rules and modern management methods. It
seems that the direction of proposed activities was correct, as this issue has recently
become a subject of Parliament’s work. When designing assumptions of Sub-Component
B3, its authors considered that appropriate absorption of co-financing from pre-accession
and structural funds would be one of the problems. Thus, the Government manifested the
concern that the insufficient preparedness of self-governments – the largest future
beneficiary of structural funds – would make a net payer of Poland. A very precise outline
of the training program results was very important in terms of the participants
commitment to the Project – it was required to prepare projects that would be submitted
in the form of an application for pre-accession or structural funds thereafter. This aspect
was absent from other training programs relating to implementation of modern
management solutions. Many training courses organised by international organisations
under bilateral projects or by Phare had been intended to make the territorial selfgovernment units familiar with latest solutions in the area of management, but using them
in practice had not been their task. Therefore, it is hard to appreciate the fact that this
was the first program intended to improve the management practice, which had its
practical dimension.
Similarities to other programs emerged in the approach to dissemination of outcomes.
Similarly as in USAID “Local Government Partnership Program”, partners were selected
among the national organisations representing territorial self-government units. The
assumption was that there is a convergence between the mission of Sub-Component B3
(building self-governments’ institutional potential) and the mission of these organisations
and their obligations to their members. The intention was to use the partnership of the
Government and self-government parties in the Joint Commission in practice. The Project
authors were of an opinion that this was the right platform for creating legislative frames
for implementation of modern management methods promoted in the form of training and
consultancy by Sub-Component B3. These organisations were entrusted with the entire
program of Sub-Component B3 achievements dissemination. The organisations were
responsible for organising regional conferences, conducting a competition titled “Local
Self-Government Management Leader”, launching the “Good Management Practice
Base” in the Internet and up-dating it. As far as the Dissemination Program is concerned,
MIAPA participated in regional conferences and promoted materials worked under SubComponent B3 on the ministerial web site. Representatives of MIAPA participated also in
the “Self-Government Management Leader” competition commission and in the group of
experts.
The change in the approach to implementation of Sub-Component B3 was expected to
manifest itself in the role to be played by MIAPA. Implementing RDP, MIAPA was
supposed to become a member of a group of those governmental institutions in EU and
OECD countries, who make an active contribution to improvement of services provision
quality and efficiency. The belief that the quality of service provided by self-governments
becomes an element of the entire system of tasks performed by the public administration
and that it determines all citizens’ attitude to the State was right. This was expected to
change the existing situation, and changes were to be initiated by a government
institution instead of foreign governments that had been providing assistance to Polish
self-government.
There is one more noticeable difference in the approach to implementation of the
program of changes, which is represented by bilateral assistance programs and Sub216
Beata Ciężka
Component B3. Bilateral programs had been promoting solutions from their own
countries first of all. Some of them promoted under USAID program were far from
solutions applied in EU countries and could not be applied in the practice of Polish selfgovernments and with their legal status. The activities performed under Sub-Component
B3 complied with the “new public administration” paradigm. The program adopted models
from many countries to the conditions in which Polish local self-governments worked,
keeping to the basic rules and standards of the “new public management” at the same
time. These rules and standards are as follows:
•
Making managerial solutions similar to the practice of market organisations;
•
Introducing effectiveness and efficiency assessment measures;
•
Strengthening administration’s servicing function (the function ancillary to citizens);
•
Using new methods that enhance public participation.103
Another difference in approach between Sub-Component B3 and other programs of this
type can be found in the expected outcomes. It was difficult to define the impact on the
Polish self-governments’ functioning which had been expected in case of USAiD and
Know How Fund, while the implementation of Sub-Component B3 was supposed to result
in increased effectiveness in public expenses control and in high quality of services, on
the condition that adequate legislation framework would be created. The currently
effective act on TSU financing was the first step in this direction.
4.1.2
Objectives of Sub-Component B3 referred to the general objectives of RDP that were
defined as: (i) increase the level of off-farm employment in rural areas, (ii) contribute to
the on-going decentralisation of self-government and regional development and (iii) assist
Poland in building institutional capacity to absorb EU pre-accession and structural funds.
Thus, the overall objective of Sub-Component B3 was to increase the level of
efficiency and effectiveness in eligible units of local and regional administration
(gminas, powiats, voivodships) within the voivodships covered by the RDP, through
institutional development, training program and capacity building measures, and thereby
improve the conditions for the creation of non-farm employment in rural areas.
Achievement of this objective was expected to improve the provision of goods and
104
services to the private and the public sectors, thus facilitating economic activities. .
103
Diagnoza stanu terytorialnej administracji publicznej w Polsce (“Diagnosis of the Territorial
Public Administration in Poland”), editor: J. Szlachta, J. Zalewski, Institute for Market Economy
Studies, 2002, Warszawa, prepared under RDP – Sub-Component B3.
104
PAD, p. 68.
217
Beata Ciężka
Sub-component
activities
Sub-component
Project Objectives
objectives
Figure 46.
Sub-Component B3 objectives and activities in the context of
Project Objectives
Increase off-farm
employment
Support the process of
Assist in building institutional
potential necessary to absorb
funds
Increase the level of
effectiveness and efficiency of local and
regional administration in creating nonfarm employment in rural areas
Pilot Institutional
Development
Program (IDP)
Technical assistance
To MIAPA
All-Polish
Training
Program
IDP outcomes
dissemination
program
The objectives of Sub-Component B3 complied with the RDP assumptions and with the
National Strategy for Rural and Agricultural Development, which assumed undertaking
activities aimed at improvement of sustainable development conditions in rural areas,
development of social and technical infrastructure intended to enhance the attractiveness
of investing in rural areas and supporting the creation of non-farm employment in rural
105
areas .
When analysing the purpose of RDP and its analysis from the beneficiaries’ point of view,
one should state that the opportunity to provide additional computer equipment to offices
and to introduce improvements that would enable better absorption of structural funds
was most important for them. The changes they decided to make did not result in a total
rearrangement of the institution, nor to replacement of the bureaucratic management
paradigm with the managerial one, as it was specified in Project expected outcomes. At
the same time, the self-government administration has not become a real promoter of
entrepreneurship in rural areas through changing legislation, nor has it found its place in
the process of creating new jobs.
Similarly, the Training Program fits in the overall assumptions of RDP, as it was
supposed to strengthen the potential of selected territorial self-government units in the
field of institutional development projects management and thereby to prepare them to
absorb EU pre-accession and structural funds. These intentions, in the context of
SAPARD program and Sector Operational Programs being launched now, seem to
indicate the Training Program authors’ long-term thinking.
When analysing Project documents, especially the final report of Sub-Component B3
implementation, one may notice some discrepancies in the formulation of objectives of
Sub-Component B3 which was defined as increasing the level of management
effectiveness and efficiency in units covered by the RDP B3 through strengthening the
institutional potential and through training. The long-term objective of Sub-Component B3
implementation was to contribute to the creation of institutional conditions for continuous
105
National Plan for Regional Development of the Ministry of Regional Development and Building.
Warsaw 2000, p.18.
218
Beata Ciężka
improvement of management in local and regional public administration, including rural
areas. The so defined objective does not specify the purpose of increasing management
efficiency in territorial self-government units. The definition of RPD objectives envisaged
that achievement of this objective would improve the starting conditions for creation of offfarm employment in rural areas.
Thus, one may agree with Tomasz Potkański that Sub-Component B3 “was implemented
‘by the way’, on the occasion of the rural development project (i.e. in the areas outside
the main cities) and that it served this purpose genuinely, but it was a purpose for itself –
it was intended to build institutional conditions for gradual improvement of management
106
quality . Taking the so-defined overall objective, the managers of Sub-Component B3
specified detailed goals, calling them “strategic goals”. The first strategic goal A was
defined as: the existence of a system disseminating the experience concerning the
method of implementing the Institutional Development, intended for self-governments and
their organisations, advisory and training institutions, universities educating staff for selfgovernments; strategic goal B was defined as a legal system (legal surrounding)
conducive to enhancement of management quality in territorial self-government units;
strategic goal C was the existence of government and self-government institutions’
agreement concerning development of a system enhancing the quality of management in
107
self-governments .
The following activities were expected to achieve the goals listed above:
•
Institutional Development Programs (IDPs) in pilot units intended to develop
instruments for enhancing the efficiency of regional and local administration, including
finance and human resources management;
•
Training programs aimed at improving the level of services provided by members of
local authorities and by public administration officers and at building the potential for
implementation of EU rules and regulations. Here, training was supposed to be
organised for selected members of self-government activities, i.e. elected councillors,
board members and personnel of various levels of self-government administration.
Particular focus was to be on public management and administration services
significant in terms of successful implementation of RDP and its Components.
•
Capacity building program aimed at the Ministry of Interior and Public Administration
in the area of ability to co-ordinate IDP and training activities and to prepare analyses
and studies. Here, training for selected members of self-government authorities was
to be organised, i.e. for elected councillors and board members and personnel
working at various levels of self-government administration. Special focus was on
public management and administration services for successful implementation of the
RDP and its Components.
106
Tomasz Potkański, Jacek Nowak. Metoda Rozwoju Instytucjonalnego jednostek administracji
publicznej, przygotowany i wdrożony w ramach projektu MSWiA” Budowanie potencjału
instytucjonalnego administracji lokalnej i regionalnej” (The Public Administration Units Institutional
Development Method Prepared and Implemented under the Project of MIAPA Building the
Institutional Potential of Local and Regional Administration), Samorząd Terytorialny, Year XX
January - February 2002; p.36.
107
Ibidem, p.8.
219
Beata Ciężka
Institutional Development Program
IDPs had a relatively limited coverage – 33 territorial self-government units (30 STU and
3 voivodship administration offices). According to program assumptions, this activity was
envisaged as an experimental field for developing new management methods for selfgovernment administration. IDP participants were selected in a two-stage competition of
territorial self-government units where voivodships were selected first and thereafter –
TSUs recruited from the selected voivodships. The competition procedure was designed
to select units well prepared to undertake the management improvement process and
having some experience and their own achievements in this field. Checking, whether the
managing team members were willing to improve the performance of their institutions and
to become leaders of changes was one of the selection criteria108.
Interviews made with participants of the Institutional Development Program enabled us to
state that the self-government units’ capacity to mobilise themselves to undertake joint
tasks was the basic selection determinant. The units had to communicate within the
frames of one powiat and to communicate with Powiat Starosta Office in order to
undertake joint activities. Many of the beneficiaries participated in IDP, as they regarded it
as a chance to provide additional computer equipment for their offices and to be able to
meet the requirements imposed by the regulations governing the procedure of applying
for structural funds.
According to many of the participants, strategic plans, long-term financial plans and longterm investment plans used for the preparation of the Local Development Plans were the
most useful results of the whole program. At the same time, the beneficiaries stressed
that most of the activities were planned to improve the living conditions and to perform
local undertakings first of all. Many of these undertakings contributed to the better
assurance of civilisation needs first of all, and not as much to enhancing the economic
competitiveness of territorial self-government units.
Dissemination Program
The Dissemination Program target group included all 2792 Polish gmina and powiat selfgovernments. 1225 self-government units participated in the Program and the remaining
1567 self-government units who did not attend the dissemination conference, were sent
printed materials and software on CDs. 823 self-government units participated in
workshops, e.g. on ethics and counteracting corruption and the remaining 1969 who did
not accept the invitation, were sent manuals and training materials.
All-Poland Training Program
The participation in the all-Poland training program was of a mass nature – the program
covered 642 self-government units (4555 officers and councillors attended the training).
Evaluation of participation
According to Project documents, primary beneficiaries of the RDP were defined as rural
residents those served by public utilities (recipients of new and improved services), civil
servants (recipients of training and better systems management), unemployed persons
and former state farm employees (recipients of training and greater job opportunities),
new and existing entrepreneurs (recipients of credit, technical assistance, training),
parents and children (recipients of better quality schools), teachers and local
108
220
Ibidem, p.10.
Beata Ciężka
administrators (recipients of training and an improved teaching environment), and
women. In terms of Sub-Component B3, representatives of self-government
administration were the most important participants.
Territorial self-government units were expected to play an important role in success of
RDP through activities of Sub-Component B3 – the Institutional Development Program
and the All-Poland Training Program for officers of territorial self-government units.
Moreover, Sub-Component B3 was intended to increase the efficiency and effectiveness
of Project activities, especially of Component C – rural infrastructure and of SubComponent B2 - education. Similarly significant tasks were ascribed to territorial selfgovernment units in implementation of the National Development Plan, which provides
that “State’s regional policy should gradually support the growth of territorial self109
governments’ own funds and the rational expenditure of public funds by them” . It was
expected that due to implementation of a rational policy of public finance management by
territorial self-government units, they would generate more funds enabling them to
increase the scale of investments in their area.
Selection of IDP beneficiaries
The IDP method was developed during the two years’ pilot project (2001-2003)
implemented in 33 public administration units representing the Government
administration in voivodships (Voivodship Administration Office in Krakow, Białystok and
Szczecin), voivodship self-governments (Marszalek Offices in Krakow, Białystok and
Szczecin), powiat self-governments (Powiat Starostwo in Myślenice, Łomża and Gryfino)
and gmina self-governments (gmina administration offices) on the territories of these
powiats.
It was also considered that two additional powiats might participate in the Program: the
powiat of Szczecinek from Zachodniopomorskie voivodship and the powiat of Nowy Sącz
from Małopolskie. They had taken the vice-leaders’ positions in their regions as a result of
evaluation, although the distance in points between them and the leaders were small in
both cases. Finally, the following territorial self-government units were selected for IDP:
•
Małopolskie voivodship: Voivodship Administration in Krakow, City Administration in
Krakow, Powiat Starostwo in Myślenice, City and Gmina Administration in Myślenice,
City and Gmina Administration in Dobczyce, Gmina Administration in Pcim, Gmina
Administration Raciechowice, Gmina Administration in Siepraw, City Administration in
Sułkowice, Gmina Administration in Tokarnia,
•
Zachodniopomorskie voivodship: Voivodship Administration in Szczecin, City
Administration in Szczecin, Powiat Starostwo in Gryfin, City Administration in Banie,
City Administration in Cedynia, City and Gmina Administration in Gryfino, City
Administration in Chojna, City Administration in Moryń, Gmina Administration in Stare
Czarnowo, City Administration in Trzcińsko Zdrój, Gmina Administration in
Widuchowa,
•
Podlaskie voivodship: Voivodship Administration in Białystok, City Administration in
Białystok, Powiat Starostwo in Łomża, Gmina Administration in Łomża, Gmina
Administration in Miastkowo, Gmina Administration in Nowogród, Gmina
Administration in Piątnica, Gmina Administration in Przytuły, Gmina Administration in
109
NPR, p.22.
221
Beata Ciężka
Śniadowo, Gmina Administration in Wizna, Gmina Administration in Zbójna, City
Administration in Jedwabne.
In the context of entire Sub-Component B3, the selection for IDP-related activities
seemed particularly significant. The results of these activities were to be disseminated in
territorial self-government units and consequently – to contribute to achievement of a
sustainable effect of RDP activities. The correct selection of territorial self-government
units for Pilot IDP implementation was expected to contribute to the success of
dissemination measured in the number of territorial self-government units who
implemented the proposed solutions. The experience gained under previous projects of
institutional transformations implemented under PHARE, DIFID, USAID showed that
dissemination of changes implemented in pilot units had become the key problem.
According to this experience, projects implemented in pilot units were of a “bumper crop”
nature and were disseminated in other TSUs with great difficulty. But analysing the social
and economic conditions and the nature of units selected for implementation of the Pilot
IDP one should state that they were differentiated and this fact may contribute to the
better dissemination of outcomes, with a reservation however, that there was an
overrepresentation of TSUs situated in metropolitan areas110. In the future, this may be
referred to as an argument by those reluctant to adopt institutional solutions in other
gminas, especially in those of a typically rural nature, particularly that the “different
conditions” or “inadequacy to conditions” in which a given TSU functions was one of the
causes of difficulties in dissemination of institutional transformations indicated by the
respondents – TSU representatives participating in regional dissemination conferences. It
is hard to state, to what degree the statements made by TSU managers resulted from
their analysis of innovations proposed to them, and to what degree they were a
manifestation of their reluctance to any changes.
Selection of participants for the All-Poland Training Program
642 self-government units participated in the all-Poland training program (4555 officers
and councillors in total). The increase of participating self-governments’ potential in the
field of project management should have been ensured through inviting teams of
territorial self-government units consisting of representatives of three groups responsible
for making decisions in self-government units: councillors, board representatives and key
officers. Territorial self-government units were recruited by Regional Steering Committees
in voivodships. Territorial self-government units applying to the training program were
supposed to submit an application form presenting the problem they wanted to solve by
the means of preparing and implementing a project. According to the Training Program
rules, training should be attended by teams from territorial self-government units and not
by individual representatives of gminas, powiats or voivodships and that training
workshops, besides providing information and knowledge from various disciplines relating
to public administration, should lead to the integration of teams from territorial self-
110
Urszula Klimska, Paweł Swianiewicz: Społeczne i polityczne zróżnicowanie aglomeracji w
Polsce – waniliowe centrum, mozaika przedmieść. Prace Geograficzne tom XX. Wydział Geografii i
Studiów Regionalnych. Warszawa 2005 por: Obszary metropolitalne w aktualizacji przestrzennego
zagospodarowania kraju w: Materials from conference „Metropolitan Network as a Binder of Poland
and Europe Development. Polish Metropolies in the National Development Plan. Warsaw 2829.04.2005 see: K.Trafas, A.Zborowski Krakowski Obszar Metropolitalny – Metropolitalne Funkcje
Krakowa. A study for Marszalek Office, Krakow 2003: G. Gorzelak, 2002: Polskie regiony w
procesie integracji europejskiej, in: Studia Regionalne i Lokalne, no 2-3, and also M. Smetkowski,
2001: Nowe relacje miedzy metropolią a regionem w gospodarce informacyjnej, in: Studia
regionalne i lokalne, no 4.
222
Beata Ciężka
government units and that as a result of their work a project enabling the to solve the
indicated problem should be prepared.111.
The strategy of recruitment was based on criteria specified by the Regional Steering
Committees. The Committees adopted various approaches here. Some RSCs applied the
rule of selecting the most promising teams of territorial self-government units, while other
selected territorial self-government units with the weakest economic condition, assuming
that participation in the Program might strengthen the. Another strategy accepted the
basic determinant in the form of clearly outlined strategies of territorial self-government
units’ co-operation with local partners.
1063 teams from territorial self-government units reported to the Program in total, i.e.
nearly twice as much as the number of places the National Steering Committee had
envisaged (549).
636 territorial self-government units / 4195 qualified for training activities organised by
RSC/VPIU (in co-operation with the Foundation for Local Democracy Development):
•
503 teams from gmina administrations or gmina and city administrations;
•
131 powiat teams represented by personnel of Starostwo (powiat council);
•
2 teams from Marszalek offices (Pomorskie and Warmińsko-Mazurskie voivodship).
The fact that there were so few teams from Marszalek offices does not mean that these
institutions were not interested in the Program. City Administrations from many
voivodships did not delegate their teams (wishing to leave as many places for gminas
and powiats as possible), but only their single officers who became members of gmina
and powiat teams.
During the Program, 41 territorial self-government units, i.e. about 6.5% resigned. Lack of
time, inability to delegate a team consisting of several persons or the fact of not preparing
and not submitting their project in due time were the most typical reasons of withdrawal.
An ex-post analysis of characteristics shows that “in case of most voivodships, the RDP
Training Program was attended by territorial self-government units with a low population
density; in some cases the regional characteristics resulting from the settlement pattern
or from natural conditions caused that the density of population was higher in territorial
self-government units participating in RDP. As it had been assumed, territorial selfgovernment units of a rural nature were prevailing in the Program. (...) In most cases,
they had a weak development potential, were not much attractive and were threatened
with depopulation”112. Thus, one may agree with the authors of the report who state that
the Program reached the recipients it had been intended for.
Situation prior to and after Implementation of Sub-Component B3
Today, it is difficult to reconstruct the territorial self-government units’ motivation to
participate in the Pilot IDP. When carrying out the evaluation survey, it was hard to find
persons who had made the decision in some cases, as they were not re-elected for the
function of wójt, mayor or starosta or the did not work in the given territorial self-
111
112
Final Report of RDP Training Program Implementation, Component B3, p.2.
Final Report of RDP Training Program Implementation, Component B3, p.2.
223
Beata Ciężka
government unit any longer. In those territorial self-government units where the decisionmakers were re-elected for the function of wójt, mayor or starosta, the motivation behind
participation in the Program is perceived in terms of its achievements now. Many of the
respondents stated that they had been motivated to participate the pilot program by the
wish to enhance their gmina management, but they also admitted that also by the wish to
receive computer equipment. As the respondents stressed, they had not entirely
understood the purpose of the pilot program after the first meetings. The fact that
computer equipment would be provided had been the only thing clear to everyone. As a
result of further meetings with consultants and program organisers, the motivation to
implement the planned transformations was growing.
Should one assess the declared motivation to participate in the project on the basis of
continuation of changes initiated under IDP, it should be called into question. There were
only few cases when leaders of territorial self-government units continued implementation
of further changes proposed under IDP. When asked, why they implemented these
changes, they stated that the implementation of these tools (e.g. the self-government
officer code of ethics, the councillor code of ethics, job descriptions) was a requirement of
participation in “Transparent Gmina” competition organised by Gazeta Wyborcza daily
newspaper.
In one case, a respondent wished to repeat the questionnaire survey in which gmina
inhabitants had assessed the work of wójt, in order to acquire information about the
support he might rely on.
The remaining respondents, when asked why they limited themselves to changes
implemented under IDP stated that they did not continue the innovations, as these were
inadequate to their unit’s needs. They also indicated that the model solutions proposed in
the program were too “theoretical” and were not adjusted to implementation in their
territorial self-government unit.
It is therefore difficult to state, to what degree the territorial self-government units leaders
could see the need to introduce changes and whether a need like this existed. Almost all
of the respondents confirmed that prior to participation in the Pilot IDP they had not been
aware of the need to make any improvements in their institutions’ work. No sooner than in
the phase of self-assessment they realised that changes recommended by IDP experts
should have been introduced. It seems that none of the respondents saw the need to
change the overall approach to the self-government administration management in a
manner making it closer to the New Public Management model.
It seems that it is not the wish to be in the same league with the best managers, but the
necessity to adapt to new legal regulations that is the basic motivation to implement
changes.
This approach to changes in management may explain the selection of tools offered to
territorial self-government units under the Pilot IDP. IDP resulted first of all in preparation
of the strategic plan, the long-term investment plan, the long-term financial plan and
operational plans prepared as a supplement to the strategic plan. No procedures
replacing the bureaucratic model with the managerial model of management were
implemented in these gminas. A similar approach was adopted when drawing up a
catalogue of tasks which was incorporated in the Public Information Bulletins prepared by
gminas.
224
Beata Ciężka
In case of IDP dissemination program, it is difficult to find out now, what the motivation of
participants of regional conferences disseminating IDP was and to what degree their
needs have been satisfied. The conference organiser was not obliged to carry out the
conference evaluation in terms of needs, quality of lecturers or motivation. Participants of
regional conferences attended these events, because they were organised by Marszalek
Office and the Ministry of Interior and Public Administration. This was the main motivation
behind territorial self-government units representatives’ participation in regional
conferences. Their opinion was that if they were invited by institutions so important in the
Project, some decisions might be made during the conferences that would apply to RDP
implementation or accounts directly. The participants did not expect that they would be
given any materials or that they would learn anything interesting about territorial selfgovernment units management during the conference. The fact that in many cases the
personnel of lower levels, or secretaries of territorial self-government units were sent to
stand in for wójts, city presidents and starostas who had been invited also gives evidence
to the attitude to disseminating conferences. It was also difficult to define, to what degree
the conference met the expectations, as most of the respondents who had attended it
were not able to reconstruct the course and the contents of the conference. The
materials113 distributed during the conferences were not much appreciated by the
participants either. Most often, when asked whether these materials would be useful in
improving their institutions performance, the respondents answered that they would be of
a limited use, as they were too theoretical and they did not cover the special nature of
rural gminas.
When the survey was carried out, attention was paid to the role of Marszalek Offices and
Powiat Starostwo in dissemination of various tools in gminas participating in the Pilot IDP.
It seemed that the proximity and the fact of maintaining day-to-day contacts would cause
the good practice to become common faster. The survey showed no case of experience
transfer from participating gminas to others that had not been covered by the pilot
program.
Participants of the All-Poland Training Program wanted to acquire knowledge about the
opportunities and the methods of obtaining funds first of all. Some representatives of
institutions were also seeking a chance for improving the performance of gmina and its
institutions.
113
In the first phase of the survey it turned out that the respondents attending the conference had
problems with identifying the materials they had been given. In order to obtain any reliable
information, first pages of conference materials were e-mailed in the second phase of the survey, to
show the respondents what the interview would be about.
225
Beata Ciężka
Table 40.
Main reasons why territorial self-government units decided to
participate in the Training Program
Motivation
Attendance
Proportion
Access to funds
8
14.8
Knowledge about opportunities and methods of obtaining
funds
44
81.5
Counteracting the unemployment, activation
5
9.3
Improving gmina and institution performance
13
24.1
Exchange of experience and contacts
7
13.0
Other reasons
4
7.4
Hard to say
3
5.6
Total
54
100.0
Note: the proportions do not total to 100% - the respondent was allowed to choose more than one
answer
Effectiveness evaluation
The effectiveness of Sub-Component B3 will be evaluated in two aspects.
The first aspect covers specific activities ascribed to Sub-Component B3 – the
Institutional Development Program, the All-Poland Training Program and the
Dissemination Program. The second aspect covers the effectiveness of activities
undertaken within the frames of Sub-Component B3, but related to co-ordination of
Components A, C and Sub-Components B1, B2. In the evaluator’s opinion, it was
assumed that the tasks of Sub-Component B3 “will facilitate the link between the IDPs
and the training programs, foster the co-ordination with other IDP Components, and
provide quality control as well as monitoring and evaluation services”114.
Effectiveness of the Institutional Development Program
The purpose of IDP was to develop and to test in practice a method of analysing,
planning and implementing the Institutional Development undertakings (the so-called ID
method), i.e. unaided improvement of management115. Project managers stressed clearly
that “the implementation of management improvements is not a purpose for its own, but
is intended to enhance the quality of services provided to individual and entrepreneurs
and to establish the standards desired for these services”. When evaluating the
effectiveness of IDP one should consider the issue from the following points of view:
•
effectiveness of ID tools development,
•
effectiveness of the implemented tools at the level of territorial self-government units
implementing ID with the purpose of achieving IDP objectives,
•
effectiveness of the implemented tools in terms of RDP objectives achievement.
114
PAD, p. 68, point 109.
Tomasz Potkański, Project Manager Final Report “Building the Institutional Potential of Local and
Regional Administration”, p. 17.
115
226
Beata Ciężka
To evaluate the effectiveness in terms of ID tools development one should take a look at
the following figures: ID methods were tested in 33 pilot units where 217 tasks (projects)
were implemented in total. This number included 157 tasks of a advisory and
implementation-related nature and 60 supplementary training tasks. In effect, out of 37
recommended solutions only 11 items were recorded in the good practice catalogue,
beside 26 that had been recorded earlier – for the illustration purpose and as a help in the
implementation phase of pilot activities.
When evaluating the effectiveness of projects implemented under the IDP from the
territorial units’ point of view, one should state that in cases where the applied tools had
some utility value, addressing the requirements of IOPRD or regulatory requirements,
their effectiveness was very high. Gminas using these tools were more effective in
obtaining EU funds than other gminas. It is difficult to evaluate the IDP effectiveness in
terms of services quality. Leaders of territorial self-government units stated that in general
clients were satisfied with the services provided by their institutions. But when asked, how
they measured the quality of services, they were unable to quote, how much the quality
(i.e. IDP effectiveness) had increased.
According to results of evaluation surveys carried out among inhabitants of gminas
covered and not covered by IDP, there differences in assessment of the quality of
services provided by TSU one year after Program completion did not differ much – almost
all of them ranged from 3 (the aspect has did not changed) and 4 (the aspect has rather
improved). One may be tempted to make a statement that the outcomes were better in
gminas included in IDP, but the scale is small – from 0.3 to 0.05. What is worth stressing
however, the comparison of marks of TSUs included and not included in IDP in specific
categories shows that each of these categories is always graded slightly higher in the
units participating in IDP. The only distinct difference was found in availability of
information provided by the phone – in this case the positive assessment favoured
gminas covered by the IDP, where the average marks ranged from 4 (the aspect has
rather improved) to 5 (the aspect has much improved).
227
Beata Ciężka
How quickly were the services
provided
3.62
46.0
2.
Clearness and comprehensiveness
of information provided by servants
3.66
46.0
3.
Comprehensiveness of rules used
to provide services
3.61
44.2
4.
Servants’
problem
3.5
48.9
5.
Politeness of servants
3.81
55.1
6.
Availability of information by the
phone
4.48
64.2
7.
Availability of places where one
can sit and wait for services in
comfort
3.92
50.1
8.
Institution’s suitable working hours
3.89
47.0
9.
Servants’ assistance in filling
documents, writing applications,
etc.
3.82
47.8
10.
Servants’ honesty
3.79
55.8
11.
General satisfaction with
institution’s performance
3.7
53.0
interested
in
client’s
the
Change noticed
in TSU not
covered by IDP
(% of resp.)
1.
It.
Average mark
for gminas not
covered by IDP
Category
Change noticed
in TSU covered
by IDP (% of
resp.)
Assessment of territorial self-government units performance by
inhabitants of gminas covered and not covered by the IDP
Average mark
for gminas
covered by IDP
Table 41.
3.49
37.0
3.61
30.0
3.56
27.0
3.38
32.0
3.79
34.1
3.56
42.3
3.6
24.4
3.8
21.1
3.5
31.2
3.64
32.0
3.59
29.4
It is interesting however that although in citizens’ subjective opinion, the quality of
services is assessed almost identically in all categories specified in the questionnaire, the
subjective perception of the change in the quality institution’s work within the last two
years is definitely in favour of the units covered by the IDP.
The change is clearly perceived in the categories of services quality improvement.
228
Beata Ciężka
Table 42.
Improvement of territorial self-government units’ performance in the
last two years in the opinion of citizens in gminas covered and not
covered by the IDP (% of responses)
It.
For units covered by
IDP
Category
were
Definitely
improved
Rather
improved
Definitely
improved
31.8
4.0
12.0
1.4
How quickly
provided
2.
Clearness and comprehensiveness of
information provided by servants
33.6
4.7
11.0
1.1
3.
Comprehensiveness of rules used to
provide services
31.8
3.6
10.0
8.2
4.
Servants’
problem
32.8
5.1
13.0
1.8
5.
39.1
2.5
18.6
2.5
6.
Availability
phone
29.9
5.5
12.0
1.1
7.
Availability of places where one can
sit and wait for services in comfort
40.4
11.3
9.7
1.4
8.
35.0
4.7
7.5
1.8
9.
Servants’
assistance
in
filling
documents, writing applications, etc.
32.8
5.1
11.5
1.4
10.
Servants’ honesty
27.4
6.2
12.5
0.7
11.
General
satisfaction
institution’s performance
39.8
5.8
14.7
1.1
of
services
Rather
improved
1.
interested
the
For units not covered
by ODP
in
information
client’s
by
with
the
the
Differences in assessment of the quality of institutions’ performance are much more
visible in the group of micro-entrepreneurs operating in gminas covered and not covered
by the IDP.
229
Beata Ciężka
Table 43.
Assessment of territorial self-government units performance by
micro-entrepreneurs (average marks)
It.
Category
Average mark
for gminas
covered by
IDP
Average mark
for gminas
not covered
by IDP
1.
How quickly were the services provided
4.03
3.27
2.
Servants’ competence
3.8
3.47
3.
Clearness and comprehensiveness of information provided
by servants
3.93
3.6
4.
Comprehensiveness of rules used to provide services
3.97
3.43
5.
Servants’ interested in client’s problem
4.13
3.47
6.
4.37
3.93
7.
Availability of information by the phone
4.10
3.69
8.
Availability of places where one can sit and wait for
services in comfort
4.33
3.33
9.
4.17
3.87
10.
Servants’ assistance
applications, etc.
4.32
3.45
11. Servants’ honesty
4.48
3.93
12. General satisfaction with the institution’s performance
4.2
3.57
in
filling
documents,
writing
The effectiveness of objectives achievement should be considered very high at the level
of IDP implementation in gminas. On the other hand, it is hard to assess the effectiveness
of IDP in terms of RDP overall objectives achievement. Most of those implementing the
project did not associate participation in IDP with the RDP objectives. Many of IDP
managers and authorities of territorial self-government units did not know the RDP
objectives.
Effectiveness of the All-Poland Training Program
On the other hand, most participants of the Training Program (83%) are of the opinion
that their attendance contributed to improvement of their institution functioning – first of all
through newly acquired skills of raising funds and writing projects (66.7% of respondents)
and through knowledge, experience and better organisation of work. More than a half of
the respondents (59.3%) were also of the opinion that their participation in the Program
contributed to their better understanding of self-government administration functioning in
the context of integration with the EU. Bearing these outcomes in mind one may state,
that the objectives of the Training Program have been achieved.
Effectiveness of the Dissemination Program
The purpose of 16 conferences organised in capitals of all regions, for all gmina and
powiat self-governments, was to disseminate the achievements of IDP. Assumptions,
methods and basic tools developed in the pilot phase were presented during the
conferences. Beside the theoretical part, self-governments participating in the Pilot IDP
presented their practical experience. A’’ gmina and powiat self-governments in each of 16
voivodships were invited to attend the conferences. Eventually, 1225 self-governments
(i.e. 46% of all gminas and powiats) participated in one-day conferences all over Poland.
230
Beata Ciężka
Number of participants to
the overall number of
TSUs in voivodship
All participants of the
conference
66
76
66
82
71
90
TSUs who accepted the
invitation to the overall
number of TSUs [%]
Number of TSUs
participating in the
conference
76
Number of TSUs who
accepted the invitation
115
Overall number of TSUs
Voivodship
świętokrzyskie
Number of conference
participants from TSUs
01.04.2004
TSUs participating in
conference to the overall
number of TSUs [%]
Dissemination of the achievements of IDP
Date of conference
Table 44.
02.04.2004
opolskie
82
42
51
42
51
52
63
60
15.04.2004
śląskie
184
75
41
68
37
76
41
84
16.04.2004
łódzkie
198
88
44
63
32
70
35
78
22.04.2004
małopolskie
201
106
53
93
46
106
53
114
23.04.2004
podkarpackie
180
101
56
79
44
88
49
96
06.05.2004
podlaskie
135
78
58
53
39
58
44
64
07.05.2004
warmińskomazurskie
132
67
46
67
51
72
55
79
20.05.2004
lubelskie
233
145
62
113
49
115
49
123
21.05.2004
mazowieckie
351
157
45
107
31
121
34
142
27.05.2004
pomorskie
139
80
58
67
48
76
55
88
28.05.2004
kujawsko-pomorskie
163
103
63
101
62
102
63
111
03.06.2004
zachodniopomorskie
132
76
58
66
50
70
53
78
04.06.2004
wielkopolskie
257
145
56
103
40
107
42
118
17.06.2004
lubuskie
95
57
60
45
47
47
50
58
18.06.2004
dolnośląskie
195
122
63
82
42
89
47
99
2792
1518
54
1225
44
1301
47
1480
Total
Source: report of the Union of Polish Cities and the Polish Union of Rural Gminas, as of 30.06.2004
As a rule, regional conferences were attended by the invited representatives of
authorities – wójts, mayors or starostas, sometimes heads of departments and in some
cases even rank and file employees. In the opinion of territorial self-government units
representatives, numerous invitations for various conferences and training events make it
impossible to attend all of them and this is why they often send someone to stand in for
them. The conclusion is that participation in the conference was formal and that it did not
translate into any direct use of the knowledge and the materials to make improvements in
territorial self-government units.
It was hard to find the conference materials in many of the institutions visited during the
evaluation process. Consequently, it was impossible to assess the solutions that had
been presented. And even if the territorial self-government units staff had explored them,
these solution could not find any direct application in their gminas according to them. In
their opinions, the solutions were too theoretical and could not solve the problems
representatives of territorial self-government units’ authorities and managers encounter in
their day-to-day work.
The assessment of the “Local Self-Government Management Leader” competition
effectiveness was another element of the dissemination program evaluation. The purpose
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of the competition was to disseminate the management solutions among other territorial
self-government units in Poland. Dissemination of solutions selected as a result of the
competition was expected to contribute to improvement of the quality of services provided
to citizens and business entities by the self-government administration.116 72 projects
were submitted and the Competition Commission selected 24 finalists out of them and
thereafter – 8 winners. It is difficult to assess the effectiveness of this activity in terms of
IDP objectives achievement. There are no data available about the number of territorial
self-government units who used the good practices described in materials distributed
during the regional conferences and on www.dobrepraktyki.pl. site.
In the course of interviewing IDP participants, an attempt was made to find out how
interesting the implemented solutions had been to other TSUs. The conclusion was, that
only few persons talked to them during the dissemination conferences and almost no one
– after the conferences.
The dissemination program included also workshops on ethics and counteracting
corruption. The purpose of the workshops was to equip self-governments with tools of
consistent and systematic building the image of a transparent institution which
communicates with the citizens, with particular focus on implementation of procedures,
codes of ethics, development of controls. 823 self-governments accepted the invitation
and attended the workshops, this group accounting for nearly 30% of all selfgovernments. 2143 persons were trained in total. The remaining1969 self-governments
who had not confirmed their intention to attend, were sent training materials by mail. The
self-government press published a number of articles promoting the problems of ethics in
territorial self-government. This is another task where it is difficult to evaluate the
effectiveness.
Evaluation of Sub-Component B3 utility
Utility of IDP
The purpose of IDP was to test the method in 33 pilot units. 217 tasks (projects) were
implemented under the Program. The intention of IDP authors was to enable these units
to continue improving management on their own. It was stressed at the same time, that
the implemented management improvements would not be a purpose for itself, but that
they would result in improved quality of services provided to inhabitants and
entrepreneurs and in establishing and maintaining the desirable standards of these
services. Thus, the utility of the Program should be analysed from two points of view: the
utility of IDP for participating gminas and the utility of IDP dissemination program. The
units participating in IDP assessed its utility very well. Particularly high marks were given
to the utility of tools, the implementation of which related to the territorial self-government
units’ obligation to observe regulatory requirements. It was stressed that the catalogue of
services was particularly useful in preparing the Public Information Bulletin. High marks
were also given to the utility of activities related to requirements imposed by European
Funds. Especially, the utility of strategic plans, long-term investment plans, long-term
financial plans and operational plans for financial plans developed under the Pilot IDP
was emphasised. Moreover, high marks were given to implementation of procedures
facilitating creation of projects and execution of investments in territorial self-government
units. At the same time, the respondents indicated the low utility of such tools as
surveying inhabitants of rural areas, task-oriented budget or programs of co-operation
116
see: Project Manager’s Final Report “Building Institutional Capacity in Local and Regional
Administration”, Tomasz Potkański, Warsaw 15.08.2004, p. 23.
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between the mom-government sector with territorial self-government units. IDP
participants covered by the survey indicated these tools’ inadequacy to the reality of rural
gminas and regulatory requirements concerning budget construction.
Most self-governments adopted a very practical approach to the activities proposed by
the program. Participants of IDP were interested in preparing documents needed to
obtain pre-accession and structural funds – this thesis is confirmed by the selection of
tools implemented in IDP gminas.
When evaluating the utility of Sub-Component B3 for the dissemination program, one
should state that only 11 out of 37 tools were incorporated in the catalogue of good
practices recommended by RDP. The limited selection of tools included in the
dissemination program resulted from restrictions imposed By MIAPA. Having asked
external evaluators for their opinion it had been found that the good practice base
contained too many projects implemented under IDP and considering that their life-time
was too short, a decision was made to include only 11 practices in the base. The set of
good practices was supplemented with the solutions awarded in the “Local Selfgovernment Management Leader”.
It is a problematic thing to evaluate the utility of publications, as these are not known to
the interviewed participants of the Pilot IDP. The respondents use the materials published
on MIAPA www sites very seldom. When they do, they usually look for new legal
regulations and respective explanatory materials. But it is impossible to obtain any
objective assessment of the degree of interest in these materials, as no counter of visitors
was installed.
Utility of the All-Poland Training Program
The Training Program utility can be evaluated very highly, as a vast majority (96.3%) of
its participants who were surveyed indicated that the knowledge of project development
methodology provided under the Program was sufficient (absolutely sufficient – 14.8%,
rather sufficient – 81.5%). The respondents – members of teams preparing projects
under the Training Program – are implementing their projects now (40.7%) or are
planning to do this in the nearest time (53.7%). This shows that a definite majority of
projects has a chance for implementation. Most often, these projects were submitted to
SAPARD and IOPRD programs. As a result, according to their authors’ estimations,
every third project can generate new business entities, while almost every second project
can create new jobs in the off-farm sector.
Most of the projects covered issues from the field of infrastructure development and
environment protection management. 345 projects dealing with these issues were
prepared, accounting for 58% of the overall number of projects. The group of problems
covered by the projects included: water supply and sewage disposal management in
gmina or region; waste disposal; modernisation of regional and local roads. The second
place was taken by projects dealing with active policy of counteracting the
unemployment. This group included 124 projects, i.e. 21% of the total number. They
envisaged creating activation centres for the unemployed, creating loan guarantee funds,
organising consultancy and education centres preparing the unemployed for employment
and business activity in the conditions resulting from Poland’s accession to EU,
occupational activation of unemployed women, creating job seeking clubs in gminas or
powiats, improving the system of education for school graduates and the unemployed,
etc.
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The third position was taken by projects supporting the private sector development. 55
projects were prepared here, i.e. 10% of all projects. They dealt with creation of gmina
and powiat information centres or training and advisory centres for entrepreneurs, also in
the aspect of Poland’s accession to EU; creation of local economic development centres
or business initiatives centres; creating banks of offers for investors; supporting
development of agri-tourism, etc.
The next group of projects covered the education system management issues. They
partly fit in Sub-Component B2, as they dealt with similar problems of teachers’
professional development. These projects – there were 35 of them – accounted for nearly
6% of all projects that were prepared. Apart from professional development issues, some
projects covered also: education in the labour market context; rationalisation of the
education system organisation, management and financing; obtaining funds for didactic
aids; creating education strategies for gminas, etc.
The fact that only 30 projects, i.e. less than 5% applied to the territorial self-government
units organisation directly. These project focussed on issues related to creating client
service offices/points, i.e. building client-friendly institutions; improving systems of
information flow between the institution and the client; enhancing the quality of services
provided to the local community (servant – client relation); implementing the quality
management system in the institution, etc.
Such selection of projects confirms the thesis which has already been formulated, that
Program participants were first of all oriented towards acquiring knowledge about the selfgovernment administration’s current tasks, i.e. as efficient utilisation of support from preaccession and structural funds, instead of improving administration’s performance
according to the New Public Management principles.
Table 45.
What did the All-Poland Training Program participants expected of
RDP implementation?
Proportion
Obtaining funds for investments, financial support
48.4
Skills and knowledge concerning EU funds
53.2
Elimination of unemployment; development of entrepreneurship
9.7
Other
35.5
Do not remember / hard to say
3.2
Source: Consultant’s survey
Moreover, most of the respondents declared also that projects developed under the
Training Program had been envisaged in Gmina Development Strategy (63%), they
complied with the Local Development Program (83.3%) and the Long-Term Investment
Program (64.8%).
One should notice here, how high the training program utility was in terms of the number
of applications submitted. The respondents indicated that 68% of applications were
submitted as applications for pre-accession or structural funds. It seems that most of the
applications that had not been submitted covered the issues for which no co-financing
had been envisaged under pre-accession programs and structural funds.
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Table 46.
Projects of territorial self-government units worked out under the
All-Poland Training Program
What program did gmina / powiat / marszalek office apply to with
the project prepared under the All-Poland Training Program?
Proportion
SAPARD
35.5
PHARE
3.2
IOPRD
35.5
SPO ROL “ Food Sector Restructuring and Modernisation and Rural
Areas Development”
4.8
Other
18
Gmina did not apply at all
21.0
Do not remember / do not know
11.3
Source: Consultant’s survey
On the other hand, outputs produced for the purpose of the Training Program were given
rather high marks by Program recipients.
Marks given to particular training modules and workshops in terms of utility for tasks
performed by the institution were high and their average ranged from 3.64 to 4.33. The
participants gave highest marks to the following modules:
•
Project management;
•
Transparent and friendly gmina;
•
Financial and strategic management;
and workshops:
•
Development of infrastructure and management in the field of environment protection;
•
Labour market – active policy of counteracting the unemployment;
•
Education system management.
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Table 47.
Average marks for utility of particular modules and workshops
Training module
Average mark
Module 1: Co-operation between territorial self-government units
3.83
Module 2: Financial and strategic management
4.08
Module 3: Institution organisation and functioning
3.89
Module 4: Public services, including utilities
3.97
Module 5: Stimulating economic development
3.78
Module 6: Human resources management
3.97
Module 7: Social participation and social development
3.78
Module 8: Project management
4.33
Module 9: Transparent and friendly gmina
4.16
Workshops
Development of infrastructure and management in the field of environment
protection
4.24
Supporting the private sector development
3.64
Labour market – active policy of counteracting the unemployment
4.19
Education system management
4.13
Organisational development of a territorial self-government unit
3.92
Similarly, marks given for the utility of training materials in institution’s day-to-day work by
those who declared that they had had contact with the given publication and decided to
assess it, were rather high. Two publications can be distinguished here in particular:
236
•
Project management; Author: Piotr Szczęsny;
•
Development of infrastructure and management in the field of environment protection;
Authors: Piotr Szczęsny, Mariusz Adamowicz;
Beata Ciężka
Table 48.
Average marks for materials utility
Publication
Average mark
Module 2: Financial and strategic management; Author: Krzysztof Pakoński
3.74
Module 3: Institution organisation and functioning; Author: Wiesława
Borczyk
3.70
Module 4: Public services, including utilities; Authors: Grzegorz Dziarski,
Wojciech Kłosowski
3.88
Module 5: Stimulating economic development; Author: Ryszard Kamiński
3.69
Module 6: Human resources management; Author: Jacek Kowalski
3.76
Module 7: Social participation and social development; Authors: Jacek
Kwiatkowski, Karolina Stawicka
3.80
Module 8: Project management; Author: Piotr Szczęsny
4.21
Module 9: Transparent and friendly gmina; Author: Marek Jefremienko
3.88
Program 1: Development of infrastructure and management in the field of
environment protection; Authors: Piotr Szczęsny, Mariusz Adamowicz
4.15
Program 3: Supporting the private sector development; Author: Zbigniew
Pluta
3.43
Program 4: Education system management; Author: Andrzej Szeniawski
3.57
Program 5: Organisational development of a territorial self-government unit;
Author: Ryszard Wilczyński
3.79
Case study: Regional co-operation in Pomorskie voivodship – case study;
Author: Emilia Małgorzata Gimpel
3.57
Utility of the dissemination program
The dissemination program utility should be analysed through measuring, to what degree
the proposed management-related solutions were accepted and implemented by
territorial self-government units participating in this activity. It was assumed that IDP
should respond to territorial self-government units’ needs in the field of management. Due
to implementation of the IDP and the dissemination program, the process of enhancing
the quality and the efficiency of management in self-governments in Poland should
accelerate. The utility of the program evaluated in terms of universality of the
implemented solutions can be assessed as unsatisfactory, but one should be aware of
the fact that although the outcomes of Sub-Component implementation are being
evaluated in retrospect, relatively little time has passed yet.
The interviews with participants of conference disseminating IDP outcomes show that in
their opinion the tools that had been presented were inadequate to the conditions in
which self-governments functioned. Most frequently it was pointed out that the Long-Term
Financial Plans and the task-oriented budgets were useless in the form in which they had
been presented in IDP materials. The respondents stressed that the situation in which
territorial self-government units functioned caused that Long-term Investment Plans and
Long-Term Financial Plans were a sort of a fiction. Territorial self-government units,
wishing to increase their chances for financial support, submit many applications,
changing Long-term Investment Plans and Long-Term Financial Plans each time.
Depending on the source of financing, they change the parameters, so that they are most
adequate to financing institutions’ expectations.
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The task-oriented budget is another example of how the proposed solutions are
inadequate. In the opinion of territorial self-government units’ representatives, there are
no grounds for it in the existing legal conditions. According to regulatory requirements,
the classification budget applies. Although the task-oriented budget might be an excellent
finance management tool, the legislative regulations constitute a serious barrier to its use
and dissemination. Moreover, attention was drawn to the fact that the planned growth of
services quality and efficiency had not been achieved in those territorial self-government
units, where the task-oriented budget had been implemented. Considering that territorial
self-government units have a limited capability to make decisions concerning their
property, the management methods and the rules of rewarding teachers for example,
using the task-oriented budget is an excessive luxury. Similarly, the respondent
expressed their concerns about the utility of such solutions as job descriptions or
questionnaires to be filled by citizens to assess the gmina administration’s performance.
The utility of workshops dedicated to ethics and counteracting corruption is the next
element of evaluation. The objective of this activity was to provide knowledge about the
methods of identifying and counteracting corruption in territorial self-government units. As
the workshop participants included in the survey sample stated, the utility of tools
presented there was disputable and examples presented in training materials did not
entirely reflect the reality of territorial self-government units, particularly – of those in rural
areas. They also stressed that the implementation of the self-government administration
code of ethics should be interrelated with changes in the self-government administration
staff recruitment, to make it similar to those applicable to the civil servants corps. In the
opinion of program participants, implementation of the code of ethics in gminas is an
additional task which is not a priority for gmina council members or for wójts. Selfgovernment officer and gmina councillor codes of ethics were prepared in a few gminas,
as recommended. While self-government officer codes were implemented without
problems, those concerning council members did not generate in the circles of
councillors. Should one analyse the effects of this year’s competition “Transparent
Poland” organised for self-governments by Gazeta Wyborcza, the Polish Agency for
Rural Development and the Foundation for Local Demicracy Development, where more
than 800 self-government activists take part, it is characteristic that these selfgovernments implement self-government officer codes of ethics and councillor code of
ethics separately, i.e. the tools that were developed and promoted under IDP. Thus, one
may assume that we are facing a slow implementation of changes in the self-government
environment’s organisational culture, the changes that will certainly be accelerated by the
act on the self-government officer’s status which is being implemented now.
4.2.1
Identification and Measuring Program Costs and other Outlays
Sub-Component B3 Budget
In case of Sub-Component B3, the costs did not go beyond the assumed budget. The
budget was spent in 100%. Most funds of Sub-Component B3 budget, i.e. 38.61%, were
allocated to the Institutional Development Program. If one adds the computer equipment
intended to support the performance of IDP tasks, the dissemination program and the
function of IDP specialist, 55.83% of the budget were planned to cover this undertaking.
The next item of the budget – 33.66% – applied to the training program. The remaining
funds were allocated for expert works performed by the reference team – 4.45% and for
training specialists – 1.28%, short-term specialists – 0.48%, the project manager – 2.01%
and the monitoring and evaluation specialist. In terms of the project budget, the
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Institutional Development Program implementation and dissemination of its results were
the priority tasks.
On the basis of agreement between MIAPA, MoF and MARDA dated 31.01.2004,
amendments to the budget approved on 21.03.2001 were made. The new budget
reduced the funds for the training program by 15%, for the Institutional Development
Program by 12.7%, as not all funds were spent; for the individual consultant – training
specialist’s fee by 25%, for the individual consultant – monitoring and evaluation
specialist fee by 10%, for the for the individual consultant – IDP specialist by 13.3%. At
the same time, the fund for the dissemination program was increased by 14.4%. The
remaining items, such as costs of expert opinions prepared by the reference team, fees
of short-term individual consultants and funds for purchasing computer equipment
remained on the previous level117.
As significant economies had been made in Sub-Component B3 budget, it was agreed
with the World Bank (May 2003) that some part of the funds would be spent on
purchasing computer equipment for MIAPA to strengthen DAP institutional potential and
to continue the program after RDP closing. It was also agreed that a part of this
equipment will be given to self-government organisations at no charge, to provide them
technical equipment for continuation of the dissemination program. Some items were
purchased as rewards for the “Local Self-Government Management Leader”
competition.118
Costs incurred by the beneficiaries
Financial costs incurred under the IDP covered mainly the beneficiaries’ “own cofinancing” of the purchased equipment. It was specified that this contribution could not be
lower than 25%. Territorial self-government units were allowed to quote as their own
contribution all investment outlays required to install the equipment i.e. refurbishing,
purchasing additional computer equipment which had not been covered by the
specification, laying computer network wires. In most cases, self-governments’ cofinancing was much higher than the compulsory 25% and reached the average level of
30% for all territorial self-government units. Some self-governments, such as Marszalek
Office in Białystok, provided their co-financing at the level of 50%.
Additionally, besides their work, members of project teams attended workshops and
training organised in Powiat Starosta Offices. These institutions incurred additional costs
here to provide transportation of training and workshop participants. Territorial selfgovernment units’ personnel members performed their IDP-related tasks within the
frames of their job duties. In the opinion of territorial self-government units’ managers,
these tasks did not represent any additional work load. They stated also, that participation
in IDP had no negative effect on institutions’ work and that all tasks and services were
carried out in due time. Neither did IDP implementation result in any worsening of the
institution’s performance quality.
Some participants of the program – members of working teams the evaluators managed
to reach stated that program implementation had imposed additional load on them. They
117
Calculations were made on the basis of: MIAPA Project Team’s Financial anlythics, A. Skóraś,
in: Project Manager’s Final Report: Building Institutional Capacity in Local and Regional
Administration, Warsaw, 15.08.2004, p. 22.
118
Tomasz Potkański, Project Manager Final Report “Building the Institutional Potential of Local
and Regional Administration” ;Warsaw 15.08.2004, p. 22.
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performed many of the tasks related to IDP implementation after their office hours.
Implementation of the task-oriented budget, of Long-Term Financial Plans and LongTerm Investment Plans was particularly burdensome. The personnel was not paid any
additional money for working overtime. Some of them stated that the result of the
program implementation was not worth the effort. The promise of equipping their
workplace with the new computer equipment purchased under the program was an
antidote against employees’ lack of motivation. To increase personnel’s motivation, it was
announced in Łomża that only those officers would be equipped with new computers who
participated in the project.
On the other hand, most participants of the Training Program did not identify any
additional costs of their personal participation in the Program or any costs incurred by the
institution.
Financial leverage effect
Apart from gminas’ commitment to the process of computerisation, no other additional
involvement of funds was found out in activities of Sub-Component B3. Certainly, one
may associate the applications to PHARE and SAPARD prepared by participants of SubComponent B3 within the frames of particulars tasks with the funds they managed to
obtain. It is difficult and even impossible to prove any such relation though. No explicit
data are available to show that the effectiveness of territorial self-government units
participating in B3 activities in obtaining PHARE or SAPARD funds increased. Any
statement like this could not be reliable when evaluating projects implemented under
IOPRD, where not the application quality, but the amount of funds Marszalek Offices
have at their disposal is the basis on which the financial support is granted.
The Institutional Development program did not contribute to starting the financial leverage
either. As a result of IDP, territorial self-government units did not acquire any additional,
external funds. At the current stage of development of gminas participating in IDP it is
difficult to assess, to what degree the Program contributed to increase of employment
opportunity through creating more favourable conditions of business development.
4.2.2
Identification and measuring program outputs and outcomes
Below, indicators of outcomes planned in the Project Appraisal Document and the
Operational Manual are presented.
Project Appraisal Document presents the performance indicators in Annex no 1, where
Project construction is summed up and in Annex 2, where the Project is described in
detail and where outcomes expected of particular Components are specified.
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Table 49.
Performance indicators planned in the Project Appraisal Document
and in the Operational Manual
PAD – Annex 1
PAD – Annex 2
Operational Manual
Number
of
decision
makers and senior staff
trained
in
selected
administrative units for an
average of 30 days of
training
About
3000
decision
makers and senior staff in
pilot
and
other
administrative
units
trained for and average of
30 days of training per
trainee
The operational manual indicates in
general that monitoring will have a form of
outputs description (trained employees,
new procedures, new personnel, etc.)
Significant improvement
in public services in about
20 pilot administrative
units.
It indicates also that Sub-Component B3
performance
indicators
have
been
specified as follows:
- average number of training hours per
employee
- cost of training per one man-hour.
It should be stressed that these are
efficiency indicators – while in the
remaining Components and in PAD –
quantitative
objectives
have
been
specified.
Source: based on Project documents
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Table 50.
Assumptions for Sub-Component B3 monitoring
Monitoring table
System dissemination Institutional Number of training organisations offering management
Development
experience
and courses to territorial self-government units: 3
implementation methods active.
Number of consulting companies offering assistance to
territorial self-government units in improving management
systems with the tools prepared under the program: 7
Legal
system
conducive
to
enhancement
of
management
quality – 2 recommendations will be
prepared
for
each
of
9
management areas.
% of recommendations of legislative changes that have
been implemented by the means of legal acts: 10
% of recommendations of legislative changes that have
been introduced to draft laws and legal acts: 25
Agreement of government and self- A written agreement between self-government organisations
government institutions concerning and a competent government agency (agencies): 2
creation
of
a
system
for
management quality improvement
in territorial self-government units
Dissemination
experience
of
program Number of territorial self-government units not participating
in the program, whose representatives participated in the
dissemination program: 600
Number of manuals distributed among territorial selfgovernment units not participating in the program: 2800
Institutional analysis, preparation Number of territorial self-government units for which the
and implementation of institutional Institutional Analysis was prepared: 33
development plans (IDP) by
Number of territorial self-government units which launched
territorial self-government units
IDP: 20
% of territorial self-government units participating in IDP,
which improved the quality of management: 60
% of territorial self-government units participating in IDP,
which improved the quality of services: 30
Training methodology
developed: Yes/No
and
“distance
learning”
tools
Preparation of training materials Number of trainers trained: 50
and staff of trainers
Pilot training for territorial self- Number of
government units
training: 60
territorial
self-government
units
attending
units
attending
Number of persons trained: 420
Number of training man-days: 7 000
Training
for
territorial
self- Number of territorial self-government
government units’ representatives training: 540
in 9 management areas
Number of training man-days: 63 000
Number of projects
commenced: 360
the
implementation
of
which
Number of territorial self-government units participating in
“distance learning” sessions actively: 300
Source: on the basis of Project documents
Outcomes and outputs of IDP
One of the indicators envisaged development of a method and procedures of institutional
analysis and of IDP format by the end of the year 2001.
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The number of territorial self-government units for which the institutional analysis was
prepared was the next indicator. In this case, it had been planned that the institutional
analysis would be prepared for 33 units of local and regional public administration by the
middle of the year 2002. This output has been produced.
Besides, 33 territorial self-government units adopted their institutional development plans
and launched the implementation by the middle of 2002. This indicator has also been
achieved.
Indicator
31/06/2003
30/09/2003
31/12/2003
31/03/2004
30/06/2004
30/09/2004
Difference
30/09/2004
Quality of management in territorial self-government units
Expected
outcome
Table 51.
% of territorial self-government
units participating in IDP,
which improved the quality of
management – until 12/2003
(%)
60
-
84
84
84
84
94
34
% of territorial self-government
units participating in IDP,
which improved the quality of
services – until 12/2003 ** (%)
30
-
32
32
32
32
94
64
* Institutional analysis repeated and results compared with those from the beginning of the program
** Institutional analysis repeated and results compared with those from the beginning of the
program
Source: Project Management quarterly reports, Project documents
Figure 47.
Quality of management in territorial self-government units (TSU)
100
90
80
70
60
50
40
30
20
10
0
30/09/2003
31/12/2003
31/03/2004
30/06/2004
30/09/2004
% of TSU participating in IDP, which improved management quality
% of TSU participating in IDP, which improved services quality
Source: Project Management quarterly reports
Besides, manuals recommending the Institutional Development Program were issued:
•
“Institutional Development. A Manual for Territorial Self-Governments”
•
“Institutional Analysis of Gmina Administration Office. A Guide for Self-governments”,
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•
“Institutional Analysis of Starosta Office. A Guide for Self-governments”,
•
“A catalogue of Institutional Development Tools. A Guide for Local Selfgovernments”,
•
“Management in Territorial Self-Government. Best Practices”,
•
“Ethical Aspects of Territorial Self-Government Activity. A Guide for Territorial SelfGovernments”,
•
“Ethical Aspects of Territorial Self-Government Activity. Exercise Books”,
•
“Project Management. A Guide for Territorial Self-Governments”.
These manuals were sent to all territorial self-government units in Poland. They are also
available on MIAPA’s web site. The evaluation survey has shown that they are known in
those territorial self-government units that participated in the ID pilot program and not
known in the territorial self-government units that participated in the dissemination
program. Even if they can be found in the office, they are not used by the selfgovernment authorities and administration.
Moreover, manuals promoting Institutional Development and addressing particular levels
of self-government administration were issued. The evaluation survey has shown that
they are not known to territorial self-government units’ representatives.
The remaining outputs were prepared in the electronic version only and they can be
downloaded from MIAPA’s web site (www.mswia.gov.pl/pri):
•
“Institutional Analysis” for Marszalek Office,
•
“Institutional Analysis” for Voivodship Administration Office,
•
“Computer Application Facilitating Self-Assessment of Gmina Administration Office
Institutional Development Status”,
•
“Appendices to the Catalogue of Institutional Development Tools”,
•
“Quantitative Indicators of Public Services Performance”,
•
“Quantitative Indicators for Management Areas”,
Outcomes and outputs of the All-Poland Training Program
Specific data of the Training Program are presented in the table below.
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Table 52.
Task
Assumed and achieved outcomes of the Training Program
Expected
outcome
Achieved
outcome
31/03/2005
60
47
2. Number of persons Assumed participation of 7
trained
representatives from each
STU on the average
420
367
3. Number of training Number of training manman-days
days provided
7.000
5.430
Number of TSU which
reported the intention to
attend training and were
selected by VPIU
540
636
Training
about
4200
representatives of 540 TSU
in 9 management areas
540
595*
3. Number of training Number of training manman-days
days provided
63.000
71.411
4.
Number
of Total number of projects
management projects prepared in the pilot phase
prepared
and the main phase
540
589**
5. Number of projects
the implementation of
which
was
commenced
Commencement
of
implementation of 67% of
the management projects
prepared
360
432 (73%)
6. Number of TSU Measured by the number of
participating actively visits to the web site and the
in “distance learning” number of e-mail contacts
sessions"
300
629
Indicator
Definition
Pilot training for 1. Number of TSU Training
TSU
participating
in regions
training
Training
TSU 1. Number of TSU
representatives selected to attend the
in
9 training
management
areas
2. Number of TSU
attending the training
STU
for
two
* The number of persons trained amounted to 4 195.
**47 in the pilot phase and 542 in the main phase.
Source: Reports of the MIAPA Project Team, MIS monthly reports
Outcomes and outputs of the Dissemination Program
Depending on the type of initiative, from 72 units (the Competition), through 823
(workshops on ethics), to 1225 units (IDP regional conferences) participated in the
Program.
1225 territorial self-government units whose representatives attended conferences where
IDP method was disseminated, acquired relevant knowledge and have been prepared to
analyse their own institutional potential and the management status on the basis of IDP
method and using the tools developed under IDP and consequently – they are ready to
implement improvements in management. The remaining 1567 self-government units that
did not attend the conference, were sent printed materials and CDs with software. 1969
units that did not accept the invitation, were sent manuals and training materials.
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Table 53.
Assumed and achieved outcomes of the Dissemination Program
Indicator
Explanation
Number of TSU not
participating
the
Program,
whose
representatives
participated in the
Dissemination
Program
At least one representative
of
each
TSU
not
participating
in
RDP
participated in any form of
Program
experience
dissemination
Number of manuals
distributed among
TSU which did not
participate in the
Program
Preparing an institutional
development
analysis
manual, preparing and
implementing institutional
development plans with the
use of efficiency indicators
Expected
outcomes
Achieved
outcomes
30/09/2004
Difference
30/09/2004
600
1225*
625
2800
2800
0
* Additionally, 830 workshops on ethics were organised. They were attended by TSU
representatives. The assumed outcomes apply to the number of Territorial Self-government Units
which did not participate in IDP, but whose representatives participated in the dissemination
program.
Source: Project documents, Project Management Quarterly Report no 16
Outcomes and outputs of the MIAPA Support Program
The process of building the potential of local and regional administration was expected to
be supported by the system disseminating the experience and the implementation
methods of Institutional Development.
Two indicators were envisaged for this task:
•
The number of training organisations offering courses in TSU management. The
expected outcome was to show 3 such organisations.
•
The number of consulting companies offering TSU assistance in improving their
management systems with the use of tools developed under the program – it was
assumed that 7 such tools should be developed.
On the other hand, the system aiding management quality improvement was expected to
be supported by the means of developing recommendations of legislative changes.
Table 54.
Expected and achieved outcomes of the MIAPA Support Program
Indicator
Expected
outcomes
30/09/2004
Difference
(30/09/2004)
Percentage of recommendations of changes in
legislation implemented by legal acts (%)
10
16
6
Percentage of recommendations of changes in
legislation introduced to draft laws and legal acts
(%)
25
31
6
It was assumed in both cases that at least 2 recommendations would be prepared for
each of 9 management areas.
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It was also planned to provide support in elaboration of – inter alia – two draft agreements
of government and self-government institutions concerning creation of a system of
improving the management quality in territorial self-government units.
Table 55.
Outcomes expected and achieved in MIAPA Support Program –
agreement of government and self-government institutions
concerning creation of a system of improving the management
quality in TSU
Indicator
Explanation
An agreement in writing
between selfgovernment
organisations and a
competent government
agency (agencies)
exists and is
implemented.
The agreement
provides for the rules of
co-operation aimed at
improvement of the
management quality in
TSU. 2 projects are
implemented at least.
Expected
outcomes
30/09/2004
Difference
(30/09/2004)
2
3
1
The following outputs intended for the Administration Department of the Ministry of
Interior and Public Administration (MIAPA) were produced under MIAPA Support
Program:
•
Introduction to the Institutional Development Program;
•
Measuring the Quantity and the Quality of Public Services as an Element of the
Institutional Development Program;
•
Up-dated Tables of Competence for Gminas, Powiats and Voivodship SelfGovernments.
These three studies were made available to self-governments via MIAPA web site
(www.mswia.gov.pl/pri) and were discussed during the conferences organised under the
dissemination program. Moreover, analyses were prepared for MIAPA to identify
improvement opportunities in the field of legal solutions ailed at improvement of the
efficiency and the quality of management in self-governments and in government
administration in voivodships. The effects of the Team’s work constituted a basis for
MIAPA to analyse the existing condition of the legal environment in which selfgovernments functioned and a source of recommendations for MIAPA concerning the
desirable directions of legislative changes, including proposed amendments to concrete
legal acts leading to elimination of barriers to bottom-up improvement of management
efficiency and quality in self-governments. The following studies were prepared within the
frames of this task:
•
Legal Bases of Public Administration Functioning in the Polish Republic;
•
Diagnosis of the Territorial Public Administration Condition in Poland;
•
Identification of Legal Barriers to Efficient and Effective Functioning of Local and
Regional Public Administration.
It is difficult to determine, what were their immediate effects, as in the recent years
MIAPA did not report any legislative initiatives that would be related to or result from the
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studies listed above, especially those presented in document “Identification of Legal
Barriers to Efficient and Effective Functioning of Local and Regional Public
Administration”.
4.3 Summary
4.3.1
Sub-Component B3 Cost-Benefit Analysis
When evaluating the economic effect of Sub-Component B3, one should compare it with
other activities of this type performed by the public administration. Some of the activities,
such as IDP, were unique, so that it is difficult or even impossible to make any
comparisons. It is also difficult to compute the efficiency of IDP with costs of
dissemination program. There are no data enabling one to state explicitly, how many
projects were implemented after the dissemination program.
When talking about the efficiency of the All-Poland Training Program measured by the
number of projects that were prepared – the average cost of elaborating one project
amounted to EUR 4846. The cost of one training per one TSU participating in the
program was EUR 4462, while the cost of training per one trainee was EUR 628. It is
difficult to evaluate the efficiency of the training program, as there are no data
comparable with similar undertakings in Poland. In the future, it will be possible to assess,
to what degree the knowledge TSU acquired enables them to prepare projects on their
own, without the need to use external consulting companies.
A half of the interviewed participants of the training program identify additional benefits for
TSU resulting from training. In their opinion, this is increased investment attractiveness of
their gmina and growth of gmina’s income first of all. Some respondents indicated also
increased personal income and development of tourism.
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Table 56.
Utilisation of WB loan funds for implementation of Sub-Component B3 tasks in the years 2000-2004 (PLN)
It.
Task
Utilisation of WB loan funds
2000
2001
2002
2003
2004
PLN total
1
0.00
461 327.72
5 555 798.69
5 972 608.77
2 014 934.26
14 004 669.44
2
Training Program
0.00
1 191 600.00
2 105 634.20
6 619 582.40
1 257 311.89
11 174 128.49
3
Project Co-ordinator
0.00
204 137.85
240 038.97
226 861.63
128 554.79
799 593.24
4
Institutional Development Specialist
0.00
74 464.66
122 831.44
163 357.24
69 955.48
430 608.82
5
Training Specialist
0.00
48 433.14
142 012.53
163 220.10
34 605.41
388 271.18
6
Monitoring and Evaluation
Specialist
0.00
24 717.09
119 445.44
89 675.19
64 791.89
298 629.61
7
Short-term Consultants
0.00
47 871.22
0.00
0.00
18 100.00
65 971.22
8
Reference Team
0.00
243 448.32
91 134.73
521 694.63
1 013 102.57
1 869 380.25
9
Evaluation Study
0.00
0.00
0.00
0.00
0.00
0.00
10
Promotion and dissemination
0.00
0.00
0.00
0.00
1 194 996.58
1 194 996.58
11
IT equipment
0.00
0.00
0.00
0.00
4 673 558.00
4 673 558.00
0,00
2 296 000.00
8 376 896.00
13 756 999.96
10 469 910.87
34 899 806.83
TOTAL:
Source: Data MIAPA
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Table 57.
Utilisation of budget funds for co-financing Sub-Component B3 tasks in the years 2000-2004 (PLN)
It.
Task
Task budget
Utilisation of budget co-financing funds
2000
2001
2002
2003
PLN total
% total
1
3 090 000
0.00
2
Training Program
2 415 000
0.00
10 291.58
3
Project Co-ordinator
176 000
0.00
44 924.51
52 158.71
48 966.79
27 912.35
173 962.36
98.84 %
4
Institutional Development Specialist
92 000
0.00
16 382.23
26 312.71
34 886.88
15 147.02
92 728.84
100.79%
5
Training Specialist
84 000
0.00
10 655.29
32 001.99
33 472.91
7 593.86
83 724.05
99.67%
6
Monitoring and Evaluation Specialist
67 000
0.00
5 437.76
25 869.86
19 668.27
13 835.07
64 810.96
96.73%
7
Short-term Consultants
13 000
0.00
9 463.38
0.00
0.00
1 900.00
11 363.38
87.41%
8
Reference Team
0
0.00
0.00
0.00
0.00
0.00
0.00
-
9
Evaluation Study
0
0.00
0.00
0.00
0.00
0.00
0.00
-
10
Promotion and dissemination
370 000
0.00
0.00
0.00
0.00
262 486.25
262 486.25
70.94%
11
IT equipment
1 053 000
0.00
0.00
0.00
0.00 1 168 388.82 1 168 388.82
110.96%
7 360 000
0,00
202 000.00 1 833 959.00 3 105 703.99 2 218 147.20 7 359 810.19
100.00%
TOTAL:
104 845.25 1 050 685.60 1 490 907.03
2004
646 930.13 1 477 802.11
Source: Data MIAPA
250
444 275.22 3 090 713.10
100.02%
276 608.61 2 411 632.43
99.86%
Beata Ciężka
4.3.2
The impact of Sub-Component B3 should be evaluated in a few aspects. Identification of
program activities by territorial self-government units (TSU) participating in it is the first
aspect. Activities relating to dissemination of the program effects produced during the
program is another aspect. Dissemination and utilisation of achievements after the
program completion is the third aspect.
An analysis of interviews with participants of IDP and Training Program one may state
that the respondents did not entirely identified themselves with one of the main objectives
of RDP, i.e. increasing the non-farm employment in rural areas. The largest number of
participants identified themselves with the objective relating to self-governments’
adaptation to functioning in EU understood as the improvement of infrastructure
functioning and of ability to use structural funds – sometimes defined as “the skill of
writing applications”. Few TSU identified themselves with the objective the Project Team
had defined as improvement of the quality of TSU functioning. This thesis is supported by
the fact that only 5% of applications covered changes in self-government administration
directly and dealt with the implementation of the “New Public Management” rules.
The analysis of training programme participants’ questionnaires and of interviews with
IDP participants shows that most of them approached to particular Components of the
Project as separate, individual “World Bank Programs”. The evidence can be found in
respondents’ answers, where participants of the training program indicated their
participation in IDP – in questionnaires prepared for participants of the All-Poland
Training Program, 52% of them stated that they participated in the Institutional
Development Program concurrently. At the same time, unfamiliarity with the Project is
confirmed by answers about the number of team members. It was assumed that each
team should consist of 6 to 7 employees of administration and gmina council. Only 35%
of respondents quoted this number, the rest quoting from 1 to 8 or even more. In many
cases, RDP was identified with Components B2 or C first of all.
When evaluating the sustainability of outcomes, one should consider them from two
points of view: TSU participating in activities of Sub-Component B3 – IDP and Training
Program and the institution implementing the Sub-Component – MIAPA.
In some analysed cases, TSU managers decided to implement further innovations
proposed within the frames of IDP. The others do not continue transformations, as they
are inadequate to their needs in their opinion. One should state however that the process
of organisational culture transformation has been commenced and that its effects may
strengthen in the future. Especially that effects of IDP can be observed at the regional
level even now, e.g. in Małopolska the program provided significant assistance in putting
the finishing touches on the conception and the construction of “Wrota Małopolski” www
portal and indirectly – in developing the “digital office” module.
On the other hand, in the opinion of the Training Program participants – representatives
of TSU, projects developed under these programs did not contribute to any improvement
of co-operation between TSU and the private sector. A co-operation like this was
supposed – such the RDP authors’ intention had been – to result in creation of new jobs
in rural areas.
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Table 58.
Outcomes of projects in Sub-Component B3
Did the project implementation contribute to improvement
of co-operation between TSU and the local private sector?
Proportion
Yes
22.6
No
32.3
Do not know, hard to say
45.2
Total
100.0
Source: PBS survey, March 2005
On the other hand however, entrepreneurs from gminas covered by IDP identified the
improved level of services in their gminas.
But the high sustainability of the Training Program impact manifests itself through the fact
that more than a half (57.4%) of TSU participating in the All-Poland Training Program
submitted also other projects, apart from those worked out under the Training Program.
Every fourth gmina plans to do this in the nearest time. Similarly as in case of projects
developed under the Training Program, SAPARD and ZOPRR were the most popular
sources of financing here and sometimes - Phare and SPO ROL. Most of the projects are
being implemented now.
It is definitely worth stressing that in the opinion of the vast majority of respondents, the
participation of institutions representatives in the Training Program was very significant
for writing the projects. 16.1% of the respondents state that participation in the Program
was very important and that they would not write their new projects without it. 74.2% are
of the opinion that although they would write the projects without participation in training,
participation in the Program made it much easier for them. Only two out of 31
respondents, when answering the question about the effect of the Program on new
projects writing, stated that they would write their project anyway, irrespective of
participation in the Program.
Activities undertaken by MIAPA – responsible for Sub-Component B3 implementation –
represent the second level at which the sustainability of Program effects can be
assessed. The dissemination program implemented by MIAPA can be divided into two
phases. The first of them was executed within the frames of Sub-Component B3 by the
Ministry staff and by the Project Team, the second – after the co-operation with the team
was closed.
To assess the first phase of dissemination, one should stress that the Role of MIAPA was
noticeable. The Dissemination Program had been inspired by MIAPA and implemented in
co-operation with four organisations – representatives of TSUs: the Polish Union of Rural
Gminas, the Union of Polish Cities, ZPP, UMP. Representatives of MIAPA participated in
all 16 regional conferences and in the “Self-government Management Leader”
competition as members of the competition commission and in the group of experts.
Publication of all outputs produced during implementation of Sub-Component B3 on www
sites was one of the elements of dissemination.
The second phase of dissemination took place after activities of Sub-Component B3 were
completed, i.e. from January 2004 on. When this phase was evaluated, activities related
to further dissemination of Sub-Component B3 achievements were followed.
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When analysing activities half a year after Project completion and almost one year after
dissemination program completion, the evaluator has found out that MIAPA www sites, in
their part informing about the Institutional Development Program, still include information
about activities that had already taken place – an invitation for a conference dedicated to
the application of Institutional Development methods, an invitation for training workshops
dedicated to ethics and information about the “Self-government Management Leader”
competition – all of them announced as current events. At the same time, in case of selfgovernment organisations’ www sites, information about the outputs of Sub-Component
B3 is absent or obsolete. The tools produced by Sub-Component B3 did not fall in the
areas of interest of such self-government press titles as Wspólnota or Gazeta Samorządu
i Administracji. Besides, the next “Self-government Management Leader” competition has
not been announced so far. Thus, one should believe that neither the Government, nor
the self-governments have not undertaken any activities after Sub-Component B3
completion in order to continue dissemination of the Program with the improved and more
responsible local management in view.
It seems that to ensure the sustainability of Sub-Component B3 outcomes, MIAPA should
play a more significant role – similarly as in the Dissemination Program. For example,
MIAPA in co-operation with self-government organisations might continue the “Selfgovernment Management Leader” competition. This might be done, using similar rules as
are used in organisation of the “Safe Gmina” competition. In this case, MIAPA mobilises
gminas, to release initiative conducive to co-operation and improvement of forms of
ensuring inhabitants’ piece and safety in large and small cities and villages.
To strengthen the process of dissemination, it is worth keeping organisations that
represent self-governments involved. But, following the dissemination program
experience, it is worth creating a Government program of support for institutional
transformations in administration. At the same time, when creating a program like this,
one should provide the required funds, as any activities related to making the selfgovernment administration more professional require external support.
4.3.3
Sub-Component B3 was divided into the following basic parts:
•
Institutional
Development
Program
(IDP),
Zachodniopomorskie and Małopolskie voivodships;
•
Training program implementation (all voivodships);
•
Dissemination Program (all voivodships).
which
covered
Podlaskie,
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Figure 48.
Source: Consultant’s own analyses based on Project Management Interim Reports, PCU
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Implementation of the Institutional Development Program
Selecting 33 pilot units to the Institutional Development Program (IDP) was the first step
in implementation of Sub-Component B3 (the process of selecting voivodships
commenced in March 2000, while powiats and gminas – in 2001).
By the end of June 2001, 75% of all Institutional Development Plans were approved. The
program participation contracts were signed in July 2001. At the same time, a contract for
technical assistance was signed between MIAPA and the Institute of Market Economy
Studies (IBnGR). The assistance covered preparation of legal analyses and assessment
of Program outputs. In September, contracts were signed with IDP implementers
(Małopolska Szkoła Administracji Publicznej / Canadian Urban Institute) and Fundacja
Rozwoju Demokracji Lokalnej (the Foundation for Local Democracy Development)
contracted to run the Training Program. Moreover, the technical assistance included
preparation of the first report titled “Legal Bases of Public Administration Functioning in
the Polish Republic”. IDP implementers began their work in October 2001 with preparing
a schedule, a draft “Best Practice” catalogue, Program methodology and efficiency
indicators. Opening seminars (November 2001) and pilot institutional analyses
(December 2001) were the next steps. The pilot program had to be postponed in
voivodship offices due to the Parliament election and the resultant changes in voivodship
administration.
Outcomes of pilot activities performed in the remaining units were presented during a
seminar organised at the beginning of the year 2002. By the beginning of July 2002
institutional analyses and analyses of equipment-related needs were carried out in 33
units. The task included institutional analysis, preparation and implementation of
Institutional Development Plans by Territorial Self-government Units (TSU). Reports of
MIAPA Project Team were the source of this information. In the second quarter of 2002,
the Canadian Urban Institute and Małopolska Szkoła Administracji Publicznej prepared
institutional development plans where proposed specifications of equipment to be
purchased and detailed plans of training were presented. By the end of 2002, a list of
required computer equipment to be purchased under IDP was drawn up.
The implementation of IDP commenced in January 2003 and the Program was closed in
December 2003. A bidding procedure for the computer equipment procurement was
settled at the end of 2003 and deliveries were completed by February 2004. At the same
time, a decision was made to launch the program disseminating achievements of SubComponent B3 and a respective annex to the loan contract was signed. The Program
was implemented in the year 2004 in the form of conferences, training and workshops on
ethics. 30 TSU and 3 voivodship administration offices participated in the Institutional
Development Program.
Implementation of the All-Poland Training Program
On 21 September 2001, MIAPA signed a Training Program contract with the Foundation
for Local Democracy Development. The contract provided for training 600 teams of 6 – 8
members each from selected self-government units. The Training Program
Implementation commenced in October 2001. An analysis of training needs was the first
stage. In December, the NSC allocated training places to voivodships and the Project
Team sent invitations to attend the pilot training.
The outcomes were presented at conferences in May 2002. By mid-January, the services
provider prepared nine training packages within the frames of the Training Program. The
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packages addressed the issues included in the IDP, the outcomes of the training needs
analysis and the conclusions from the first stage of IDP implementation including case
studies relevant to the subjects of 5 training programs. Trainers were trained and pilot
training commenced in February 2002. The pilot program was completed on 14 May
2002. 51 units from eight powiats joined the Program. 47 units completed it and 370
persons were trained in total.
By the end of the year 2002 a set of training materials was prepared, finishing touches
were put on the methodology and participants were recruited. In September 2002, the
NSC admitted cities with the population up to 40 thousand to the Program, postponing the
closing date of the Program until January 2004 at the same time (the reason: delays
resulting from self-government election).
In the first quarter 2003, the All-Poland Training Program was launched. In the second
quarter 2003 it entered its main phase. The number of candidates was twice as large as
the training capacity allowed for. In total, 636 territorial self-government units were
recruited. In the third quarter 2003 the All-Poland Training Program was completed in
most of the voivodhips. Finally, the Program was attended by 595 TSUs (4 195 trainees).
The task was completed in the year 2003.
4.3.4
To sum it up, one may state that RDP was necessary in the spectrum of Sub-Component
B3 in the period when it was being implemented, as it prepared the Polish selfgovernment for joining EU structures. The Project objectives complied with the State
policy objectives outlined in such strategic documents as the National Strategy for
Regional Development, the National Strategy for Employment Growth and Human
Resources Development and the Cohesive Structural Policy for Agriculture and Rural
Areas Development.
Assessing the effectiveness of Sub-Component B3 in general, one should state that it
was very high at the level of units implementing IDP and All-Poland Training Program,
especially in the area of activities related to absorption of pre-accession and structural
funds. Nevertheless, the efforts aimed at implementation of tools proposed within B3 to
transform the model of TSU management considerably were not as successful. The
bureaucratic model of management still remains very common. One should expect
however, that the changes that have been initiated will produce the expected result in the
course of time, providing that MIAPA and self-government organisations show more
commitment.
As far as the innovative nature of Sub-Component B3 is concerned, one should pay
attention to the features conducive to dissemination of the solutions proposed within its
frames. The capability of co-ordinated expansion should be one of important qualities of
innovativeness. This capability will be ensured by the effective implementation of legal
regulations. One should remember, that implementation of innovations in the selfgovernment administration does not result from TSUs’ need of innovativeness, but it is
rather determined by the legislation requirement.
In the future, legal frames for implementing innovative programs related to the “New
Public Management” should be created first of all. Only then it will be possible to
implement the programs of transformation efficiently and effectively. One should consider
in the future, to what degree national organisations representing the self-government are
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able to perform tasks related to implementation of modern management methods on their
own, and to what degree this should be the responsibility of the State.
In order to carry on the sustainability of the Project impact, one should envisage funds
and organisational conditions for further dissemination of achievements.
It is impossible to evaluate the effectiveness of activities undertaken within the frames of
B3 and aimed at achievement of one of RDP objectives – increasing non-farm
employment in rural areas. The basic difficulty results from the fact that Sub-Component
B3 was implemented separately from other Components and Sub-Components of RDP
and, as the Project Team Manager said, “by the way”.
257
Final Evaluation Study of the Rural Development Project – Component C
Beata Pięcek, Ph. D., Jarosław Malec (p. 5.4)
5 Component C
259
5.1 Top-Down Analysis
5.1.1
Identification of the problems which Component C was supposed
to help solve
The objective of Component C consisted in improving and modernizing infrastructure in
rural areas in order to encourage investment by the private sector, facilitate the creation
of non-agricultural employment and improving the state of the environment and the health
of the population. The objective of this Component was also to create alternative
organizational and institutional structures with a view to ensuring the delivery of
sustainable and accessible municipal services and introducing a market oriented
approach to the process of building and operating infrastructure. The area of the
Component covered all 16 voivodships. Component C contributes to the achievement of
two of the three general Project objectives: increasing non-agricultural employment in
rural areas and supporting the process of decentralization of local government and
regional development.
According to the Project Appraisal Document, to which Component C was supposed to
respond, the level of development of rural infrastructure was very low – both from the
point of view of living and working conditions and the possibilities with regard to
developing extra-agricultural areas of activity.
The significance of infrastructure in socio-economic development
Technical infrastructure defined as a “set of basic facilities and institutions that are
necessary to ensure the proper running of the economy and the organization of life in a
particular area” constitutes a material resource base that is integrally linked with a
specific area and, which serves both production and consumption purposes119. The
significance and role of technical infrastructure in socio-economic development derives
from its very essence and thus from the fact that it forms the foundation and basis for any
economic activity and is the principal determinant for people’s living conditions in the
broadest sense of the term. The level of infrastructure development determines the
investment attractiveness of a given area both to local and external investors and
therefore creates the conditions for the multi-functional development of rural areas. Areas
with comprehensive infrastructure provision have a greater probability of attracting
investors, whilst areas that are neglected in this respect burden potential investors that
wish to set up and run their own company with additional costs associated with building
roads, water supply systems and wastewater disposal facilities, central heating systems,
and telecommunications infrastructure.120
There is general agreement with regard to the significance of infrastructure in socioeconomic development The view is held that building infrastructure facilities is
a necessary condition – although not always one that is sufficient on its own – for creating
the technical and economic basis for the location of means of production for the purposes
of direct manufacturing as well for creating the basis for developing varied social
functions121. It has been empirically proven that investments in infrastructure can
119
A. Ginsbert-Gebert, C. Rudzka-Lorentz, M. Woźniak, A. Zielińska-Kołtyś, Infrastruktura
komunalna a funkcjonowanie systemu osadniczego, (in: Gospodarka przestrzenna, Wrocław 1984)
120
PAD, p. 14.
121
K. Jarosiński, Finansowanie inwestycji komunalnych w Polsce w warunkach samorządności
lokalnej. SGH, Warszawa 2003.
260
stimulate economic growth. Technical infrastructure has an impact on manufacturing
costs (the cost effectiveness of production), the speed of the diffusion of innovations and
the opportunity to access financial markets. Infrastructure also improves how markets
function, makes it easier to flexibly adapt to changing conditions122 and impacts on the
diversification and growth of farmers’ incomes. The scale of entrepreneurship is clearly
correlated with the economic standards of rural areas and in particular with the
development level of infrastructure123. The extent to which infrastructure development
correlated with the level of economic development at a gmina [commune] level at the
starting point of the RDP Rural Development Project is indicated by the results of the
statistical analyses below concerning the scale of unemployment and the employment
structure in groups of gminas with extremely unfavorable, average and the highest
development level of technical infrastructure124.
Table 59.
Economic situation in groups of gminas with varied infrastructure
levels
Indicators describing:
Groups of gminas with the following level of
infrastructure:
Lowest
Medium
Lowest
Open unemployment rate
9.2
13.8
16.2
Those working outside the individual
agriculture sector as compared with
the population of productive age.
27.2
12.9
9.2
Source: Own calculations based on indicators elaborated by A. Rosner, Wiejskie obszary kumulacji
barier rozwojowych, IRWiR PAN Warszawa 2002
The data compiled thus confirm the existence of a statistical relationship between the
level of infrastructure provision in rural areas and their economic state of affairs, which in
this case was indicated by the indicator of unemployment and the percentage of those
working outside individual agriculture in relation to the population of productive age. The
highest level of infrastructure was applicable to gminas with a higher percentage of
population employed in commerce and services than the average for the Polish
countryside and to gminas with developed tourism and recreation functions. In contrast,
the gminas with the lowest relative level of economic infrastructure were monofunctional
gminas with agriculture being a dominant function and which are problematic from the
point of view of demographic processes and structures (these are characterized by a high
aging rate of the rural population). The analyses of differentiation of rural areas in various
spheres prove that there is generally a very large spatial coincidence of where areas with
a favorable infrastructure situation are located with areas with a relatively high level of
economic activity.
122
J. Kulawik, Problemy finansowania infrastruktury ekonomicznej wsi i rolnictwa, IERiGŻ,
Warszawa 1999.
123
B. Wojciechowska-Ratajczak, Podstawowe uwarunkowania ekonomiczne oraz kierunki polityki
strukturalnej wobec wsi i rolnictwa w Polsce, IRWiR PAN, Warszawa 1999.
124
A typology of gminas from the point of view of infrastructure has been carried out on the basis of
7 basic indicators that characterized the following: the percentage of homes in a gmina that are
connected up to the water supply network, the percentage of homes in a gmina that are connected
up to the sewage network, the percentage of the population in the gmina served by sewage works,
the number of telephone subscribers per 1000 persons, the length of extra-urban gmina roads with
2
2
an improved, paved surface per 100 km , the number of petrol stations per 100 km and the
2
number of shops per 100 km . More information on the methodology used can be found in: B.
Pięcek, Wiejskie obszary kumulacji barier rozwojowych, IRWiR PAN, Warszawa, 2002.
261
The scale, spatial differentiation and causes of the problems, to which Component
C responds
The problem of rural infrastructure; that is its relatively low level of development is the
result of cumulative neglect in this sphere throughout the post-war period. The scale of
the neglect in this respect is indicated by the fact that at the very beginning of the 1990’s
only one in three households (and only 2.3% of agricultural households) was connected
up to the water supply system. With respect to the sewage system, this indicator was
several times lower and amounted to 1.6% (this amounted to only 0.8% for farming
households). In 1992 only 130 municipal solid waste disposal sites were operating in rural
areas. In 1990, 41.5% of the population of Poland was served by sewage works; in 1999
the figure came to 51.5%, whereas in 1990 in countries such as Luxemburg, Switzerland,
Sweden, Great Britain, Holland, Denmark and Germany this ratio exceeded 90%. In 1996
sewage treatment plants served only 4% of the rural population (in towns this came to
67% - according to the OECD the indicator of the level of sewage works provision for the
population in Poland is still one of the lowest in Europe).
The gap that separates us from other European countries with regard to the infrastructure
provision of rural areas is very large. As early as the end of the 1980’s the percentage of
rural households in France that were connected up to the water supply network
amounted to 98%, in Denmark this exceeded 90% and at this time all Bavarian villages
with more than 500 residents and high housing density had been connected up to the
sewage system 125. In Western Europe sewage works serve more than 90% of the
population of these countries according to statistical data126. The level of infrastructural
neglect in rural areas at the end of the 1980 / beginning of the 1990’s may be
demonstrated by the fact that if the rate of development of the water supply system had
remained at the same level in the 1990’s (and subsequent years) as in the previous
decade, it would take at least 40 years to expand the water supply system to fully meet
the needs of rural areas and in the case of the sewage system this could take as long as
a century.
Despite the acceleration of the development of rural infrastructure in the 1990’s, the
concentration of forces and financial resources (both domestic and foreign, co-financing
using government and local funds), the commitment of local government and
communities, the process of building rural infrastructure at the beginning of the 2000’s
had not reached a satisfactory level. In 1999, 60% of rural homes and 72% of farming
households were connected up to the water supply system (BDR 1999). Prior to the
commencement of the Project 73% of rural localities (village councils “sołectwo”) in
Poland had a water supply system, although rural localities that had full provision of this
infrastructure facility constituted 64% of all village districts in the country (thus 27% of
villages did not have any water supply system at all or were in the process of setting one
up).
The highest share of villages (exceeding 90%) (fully or partially) equipped with a water
supply system was characteristic for the Wielkopolskie, Śląskie and Opolskie
voivodships. The lowest level was applicable to the voivodships of Zachodniopomorskie,
Mazowieckie, Podkarpackie, Lubelskie, Lubuskie, Podlaskie and Świętokrzyskie. The gap
in this sphere between voivodships at opposite ends of the scale in the aspect under
discussion is enormous, as it amounts to 42 percentage points. The degree of imbalance
125
Raport o stanie infrastruktury technicznej wsi w Polsce na koniec 1994 roku. MRIGŻ, Warszawa
1995.
126
Rocznik Statystyczny Rzeczypospolitej Polskiej, GUS, Warszawa 1999.
262
between individual gminas with respect to the development of water supply networks is
even greater, as it falls within the range of 0 to 99% and therefore has reached
a maximum extent of variance.
Table 60.
Percentage of rural localities that have a communal water supply
and sewage system broken down by voivodship
Voivodship:
Percentage of rural localities that Percentage of rural localities that
have a communal water supply have a communal sewage system
system
Full or partial
provision
Of which, full
provision
Full or partial
provision
Of which, full
provision
Dolnośląskie
78.5
96.9
11.3
28.9
Kujawsko-pomorskie
87.3
86.7
7.8
57.4
Lubelskie
67.4
95.6
4.1
49.7
Lubuskie
70.3
90.0
12.8
48.1
Łódzkie
89.2
89.7
2.3
51.4
Małopolskie
65.0
79.0
10.9
77.9
Mazowieckie
58.7
91.9
2.5
65.8
Opolskie
91.6
94.3
4.2
95.5
Podkarpackie
59.7
76.2
16.9
50.4
Podlaskie
70.4
81.4
2.9
44.8
Pomorskie
82.7
84.4
15.6
66.4
Śląskie
93.9
90.0
10.0
64.1
Świętokrzyskie
71.0
95.6
4.4
57.4
69.1
92.0
8.0
52.1
Wielkopolskie
94.1
92.9
7.1
52.4
Zachodniopomorskie
51.9
89.8
10.2
46.6
TOTAL
72.9
83.7
6.6
22.8
*number of connections per 100 residents
Source: Own calculations based on MRIRW data, 2000, Warszawa
The share of rural dwellings connected up to the sewage system was incomparably lower
than those linked up to the water supply system and amounted to 4.5% (BDR 1999), for
agricultural households the analogous indicator was slightly higher and was around the
level of 7.7%. For more than half of the gminas in the country the percentage of homes
connected up to the sewage system did not exceed 3.5% on average and for only 2.6%
the ratio of connections to the sewage system attained a value of more than 30%. Prior to
the commencement of the Project, a sewage system was in operation to varying extents
in 6% of rural localities, however only not quite 3% of villages in Poland had been
connected up to the sewage system in their entirety. The following voivodships had the
most favorable states of affairs in this respect: Podkarpackie (the share of dwellings
connected up to the sewage network was close to 17%) as well as the Pomorskie and
Lubuskie voivodships. In contrast, the Łódzkie and Podlaskie voivodships were in the
least favorable position. There was a sevenfold difference as regards the proportion of
homes linked up to the sewage system between the Podkarpackie and Łódzkie
voivodships, which were at opposite ends of the scale with respect to the level of sewage
infrastructure. At the gmina level the extent of the variance in this respect fell in the range
263
of 0 to 69% and was therefore also very large. At the voivodship level, the imbalance
between the level of development of the water supply and sewage system was very
considerable and it was generally greatest where there was the highest ratio of
connections to the water supply system.
In 1999 the length of the sewage network was six times shorter than the water supply
system and for every one sewage connection there were nearly 11 water supply
connections (more than 18 in 1996). Despite the fact that the relationship between the
number of sewage and water supply connections is improving, the absolute difference is
growing, which means that the problem of water and sewage management in rural areas
is deepening. The quantity of water (in dam3) supplied to rural households was 5.5 times
higher than the quantity of collected wastewater (BDR 1999).
Table 61.
The imbalance between the development of the water supply and
sewage system in 1999
Indicators
Quantity
Number of water supply connections (in thousands of units)
Number of sewage connections (in thousands of units)
The difference between the number of water supply and sewage connections
3
Quantity of water supplied to households (in dam per annum)
Quantity of wastewater collected (in dam3 per annum)
The difference between the quantity of water supplied and the quantity of
wastewater collected (in dam3 per annum).
2 205.7
209.7
1996.0
319 074.0
73 897.8
245 176.2
Source: BDR data 1999, GUS, Warszawa
The imbalances between the development of the water supply and sewage network (two
systems that in the nature of things are closely functionally linked with each other) are a
very unfavorable phenomenon in many ways. When households are connected up to the
water supply system water consumption rises, which entails a proportional increase in
sewage and as a consequence a rise in the extent of pollution of water and of the entire
environment, which also has an impact on living conditions (including the state of health)
of the rural population. The lack of a sewage disposal network is associated with worse
investment conditions (the lack of comprehensive facilities). This problem is not solved by
local facilities and farm sewage treatment facilities, the total number of which amounted
to 34.3 thousand in 2000 (these included farms of more than 1 ha that numbered only
758 and therefore only not quite 4% of households had them)127.
Very considerable neglect was noted in rural areas in Poland with regard to building
gmina roads (company roads and access roads to farming land) and the organization of
waste landfill sites. Storage in landfills is the common method of disposing of solid waste
in rural areas. Many communities lack landfills or have facilities that do not fulfill legal,
safety and sanitary requirements (PAD page 8). This is confirmed by statistical data,
which indicate that in 1999 there were 1130 units of landfills (with a total area of 2083
ha).
Generally the overall density of roads serving agriculture was sufficient in the majority of
voivodships. However, their distribution necessitated large changes in spatial
configurations (bringing them in line with the transformation of the structure of the
127
264
MRIRW data, Warszawa 2000.
countryside and the area development plan for a given area) and their technical condition
also needed to be improved. In 1997 the Ministry for Agriculture and Food [MRIGŻ]
anticipated that municipal paved roads had to expand by approximately 50 thousand km
(by 2010) in order to improve the situation with regard to roads128.
A review of the condition of roads in 112 gminas performed by NIK in 1997 indicated that
solely a 1/4 of the length of gmina roads was fit for use without restrictions stemming from
their poor technical condition. Around 80% of the length of gmina roads needed to have
their surfaces, pavements and drainage ditches repaired. In every four gminas permanent
restrictions to use (restrictions to speed and to the weight of vehicles) had been
introduced that hampered traffic flow, due to the poor technical condition of roads.
Furthermore, in half of the examined rural gminas some roads were not periodically
passable in spring and autumn periods due to rainfall. The poor technical condition of
roads also had an impact on the finances of gminas. One in every five of them granted
and paid out compensation for damage to vehicles or to health caused by the poor state
of the roads. The poor technical condition of roads is one the weaknesses of gminas in
Poland most often mentioned in development strategies.
The large number of pedestrians involved in accidents resulting from the necessity of
having to walk on the roadway is one of the major reasons for the large number of fatal
incidents outside built-up areas. The scale of this risk is best illustrated by the fact that
nearly one in three accidents involving pedestrians outside built-up areas results in a
fatality. In built-up areas this occurs more rarely – one in nine accidents.
The role and significance of infrastructure in socio-economic development (which has
been empirically confirmed) on the one hand and on the other the enormous neglect in
this sphere in rural areas (as well as the very large spatial scope of imbalance between
regions and also within their borders) fully justify the assumption adopted in the Project
that inadequate development of infrastructure constitutes one of the most important
barriers standing in the way of the development of rural areas (PAD page 8).
The actual and forecast speed of development of technical infrastructure in the
years 1996-2003
In the 1990’s the water supply system was one of the fastest developing elements of
technical infrastructure in the countryside. In the period of 1996-1999 the number of
connections to the water supply network in rural areas increased by more than 50% and
the length of the water supply system grew by 25%. The greatest rate of change
pertaining to the development of the water supply system was noted in the following
voivodships: Podlaskie, Świętokrzyskie, Małopolskie and Mazowieckie (and thus those
where the level of development of this infrastructure element was the lowest). Analysis of
the rate of development of the water supply network in the years 1996-2000 and
extrapolation of the results of how this rate would be maintained over the duration of the
RDP indicated that in the sphere under discussion a fall in the annual average growth of
the length of the water supply system had occurred. This was mainly the result of
attaining a relatively high level of provision of gminas with this infrastructure element at
the point when the project started. Hence, this contributed to higher extrapolated
achievements than actual ones with respect to the length of the water supply system in
the year 2003 (in this year the majority of the investments realized within the framework
of the RDP had been more or less completed, furthermore GUS did not publish data on
the above subject for the year 2004).
128
Program rozwoju infrastruktury technicznej wsi do roku 2010, MRIGŻ, Warszawa 1997.
265
Figure 49.
The extrapolated and actual length of the water supply network in
the years 1996-2003
200 000
190 000
180 000
170 000
160 000
k
m 150 000
140 000
130 000
120 000
1996
1997
1998
1999
2000
2001
2002
2003
year
Extrapolated length of the water supply network in km
Actual length of the water supply network in km
Source: own work on the basis of the BDR 1996-2003, GUS, Warszawa
Focusing activities and resources in the 1990’s on investments in the water supply
system (the first and essential element of the development of the water supply and
sewage infrastructure) contributed to improving the situation of rural areas in this respect.
The level of fulfillment of needs has attained a relatively high degree as it comes to nearly
75%. The overwhelming majority of gminas have completed building of water supply
systems. As a consequence, at the end of the 1990’s the level of activity of local
government authorities increased in the sphere of expanding the sewage system. The
growth projection of the sewage network based on the rate in the period prior to 2000
indicates that the actual rate of change in this respect during the Project was higher than
the one forecast on the basis of the rate of change before the Project. As a result, in the
years 2000-2003 greater growth of the length of the sewage network was achieved than
that which could have been expected from extrapolating the results from previous years.
The question, which arises here concerns the role in and significance for the
intensification of activities in this sphere of the additional sources of finance for
infrastructure investments in the form of the Rural Development Project.
266
Figure 50.
The extrapolated and actual length of the sewage network in the
years 1996-2003
35000
30000
25000
km 20000
15000
10000
5000
0
1996
1997
1998
1999
2000
2001
2002
2003
year
Extrapolated length of the sewage network in km
Actual length of the sewage network in km
As we have already mentioned, bringing the rate of development of the sewage system in
line with that of the water supply network is an important issue in the sphere of
environmental protection and the living conditions of the rural population. Despite the fact
that the gap in this respect is increasing, the rate of divergence between the development
of these two infrastructure elements showed a considerably lower rate in the years 20002003 compared with the prior period, as indicated by the data included in the table. If in
the years 2000-2003 the annual average scale of divergence between the water supply
network and sewage system had been maintained the difference would have been 13%
higher than the actual one that occurred in 2003. Over the duration of the RDP a change
in the tendency took place, which may indicate a systematic improvement in the
relationship in this respect.
Table 62.
Change in the length of the sewage network and the length of the
water supply network in the years 1996-2003
Length of network (in thousand km)
Year
Difference in length of the water
supply and sewage networks
Water Supply
Sewage
1996
123.7
6.5
117.2
1997
136.6
8.5
128.1
1998
146.7
10.7
136.0
1999
154.7
13.3
141.4
2000
161.8
16.2
145.6
2001
167.1
19.0
148.1
2002
173.2
22.9
150.3
2003
179.5
28.8
150.7
(in thousand km)
Source: BDR data 1996-2003, GUS, Warszawa
267
When analyzing the tendencies of changes in the development of the road network, the
value of the indicator describing the length of gmina roads with a paved, improved
surface was taken into account. In the period of 1996-1999 the length of roads in this
category increased by 5 thousand (by more than 18%), whereas in the years 2000-2003
the growth in paved, improved gmina roads was a lot lower, as it amounted to 2.9
thousand km. In this period, the total length increased by only 9%. Analysis of the growth
rate of the road network in the years 1996-1999 and extrapolation of the results of how
this rate was maintained over the duration of the RDP indicated that in the sphere under
discussion a fall in the annual average growth of the length of paved and improved gmina
roads had occurred. As indicated by the above graph, we have higher extrapolated
results than actual ones with respect to the length of the road network (in the category of
gmina roads under discussion) in 2003 at the level of 8.5%.
Figure 51.
Extrapolated and actual length of the network of paved, improved
gmina roads in the years 1996-2003
190 000
180 000
170 000
Extrapolated length of the network
of paved, improved gmina roads in km
160 000
150 000
Actual length of the network of
paved improved gmina roads in km
140 000
130 000
120 000
110 000
100 000
1
2
3
4
5
6
7
8
The financial aspect of infrastructure development
The development of technical infrastructure is a long-term process – both from a
technical and economic point of view - and this stems from the specific characteristics of
infrastructure facilities and systems, and above all their capital intensiveness. One of the
characteristics of infrastructure is its solid form, which also has numerous implications in
the economic sphere. It determines whether it is necessary to undertake infrastructure
investments on a specific technical scale, which sometimes exceeds the actual
requirement that exists for a given service in a particular region (e.g. the gmina). This
may lead to a situation where immediately after a facility has been put into operation
considerable spare production capacity can arise and this will only be utilized at a later
point in time, although it would have already been necessary to incur financial outlays.
Another specific characteristic of technical infrastructure is the fact that its development is
characterized by a defined sequence of activities stemming from the functionality and the
interdependence between individual systems (elements). This means that the solution of
268
the issue of, for example water and sewage management has its own sequence of
activities, with the completion of each of them facilitating, but also necessitating the
undertaking of subsequent actions and only the realization of all the elements (e.g. the
water supply network, sewage system, sewage treatment plant) makes it possible to fully
meet the needs in this respect. The comprehensive nature of these activities makes it
necessary to incur enormous financial expenditure for a long period.
The realization of infrastructure investments on a local level is one of the important tasks,
for which local government units are responsible. The scale and scope of the investments
undertaken is delimited by the amount of local authorities’ revenues, which directly
translates into their capacity to finance investment projects using their own funds. In
Poland there are great imbalances with regard to economic development and with
respect to own income per 1 resident and in absolute terms. The situation in this sphere
would seem to indicate a certain relationship - with gminas with low revenues and limited
capacity of amassing funds being characterized by relatively poorer infrastructure
facilities and relatively larger needs in this sphere. Urban and urban-rural gminas have
greater possibilities and a higher level of infrastructure development.
Table 63.
Gminas’ budget revenues in groups of gminas with diverse
infrastructure levels
Indicators
Groups of gminas with the following level of
infrastructure:
Highest
Medium
Lowest
Gmina’s budget revenues from their share in
state treasury revenues stemming from
natural and corporate persons per 1 resident
(in PLN)
219.2
135.9
114.4
Gmina’s own revenues per 1 resident (PLN)
813.3
391.7
341.2
Source: Own calculations based on indicators elaborated by A. Rosner, Wiejskie obszary kumulacji
barier rozwojowych, IRWiR PAN Warszawa 2002
The data collated in the above table show the tendency of the relationship between the
income situation of local authorities and their level of infrastructure provision prior to the
implementation of the RDP. In gminas with the relatively highest level of infrastructure
development, the level of gmina budget revenue was two times higher and if gmina
revenues are expressed per resident then the scope of the imbalance between these
types of units increased considerably.
Appraisal of the rationale for Component C
The majority of Polish gminas has still not attained an adequate standard of local
technical infrastructure and the limited capacity of the gminas with respect to financing
municipal investments means that the investment requirements exceed the possibilities of
financing the investments with current budget revenues in successive years. Local
economic factors restrict the capability to undertake such a level of investments that are
in line with needs in this respect and which would ensure balanced development of the
gmina.
Financing of infrastructure investments, particularly large scale ones in situations where
limited own funds are available means that the investments need to be co-financed or
fully financed with repayable or loan funds. For some local authorities undertaking
investments without external financial support is difficult to manage and even impossible
269
for others (especially for gminas considered to be problem areas from an economic and
demographic point of view). In light of the above, it would appear expedient to consider
the period, in which it is necessary to make up for the neglect accumulated over many
years as an interim one, in which it is indeed through external financial assistance that
the development rate of infrastructure is speeded up. Such an approach is justified due to
the difficult circumstances of some gminas with respect to their capacity to obtain their
own revenues and the growing economic and consequently infrastructure imbalances in
our country.
At the point of planning and commencing Component C the level of infrastructure in rural
areas was still very low compared with needs and the intensification of activities in this
sphere in the 1990’s has definitely led to an improvement in infrastructure indicators in
rural areas and also to a widening of the spatial differences between individual regions
(and also within their borders) as well as between individual gminas and between its
individual elements (above all between the water supply and sewage system).
The specific characteristics of infrastructure development in rural areas presented herein,
particularly its capital intensiveness and the ineffectiveness of local authorities justifies
the financial support of infrastructure investments within the framework of the RDP, as it
is an important element of the strategy of evening out spatial imbalances, equalizing
opportunities and preventing the marginalization of certain areas considered to be
problematic due to the enormous deficits in the basic infrastructure systems supported by
the project.
The degree of deficiencies in the technical infrastructure in rural areas, the scale of needs
and the build up of tasks that need to be undertaken compared with the gminas’ financial
capacity makes it possible to conclude that if the Project were not realized, then the
elements that form part of the current state of rural infrastructure would lack the
measurable effects, which have been obtained as a direct result of conducting the
Project. This is confirmed by the opinions of the beneficiaries that indicate that the
financial resources obtained from the RDP not only made the realization of particular
infrastructure investments easier, but made them at all possible.
Selection of the voivodships, in which Component C was implemented
Component C was realized in all 16 voivodships. The chosen option of universal (all
voivodships and all rural and rural-urban gminas) participation in Component C was a
continuation of the analogous strategy within the “ASAL” program (1994-1997), whose
principal objective was to provide financial support for the process of building and
upgrading rural infrastructure.
5.1.2
Evaluation of the objectives and activities of Component C
Evaluation of the objectives of Component C
The main objective of Component C consisted in improving and upgrading the
infrastructure in rural areas with a view to stimulating private sector investments,
facilitating the creation of non-farm jobs and improving the state of the environment and
of the population’s health (Operational Manual 2000, PAD, annex 2).
On analyzing the program documents and particularly the Project Appraisal Document it
may be noted that the scope of the objective, which was allotted to this Component has
been broadened. The realization of Component C also aimed to do the following in
addition to that described above:
270
•
to create alternative organizational and institutional structures with a view to ensuring
the delivery of sustainable and accessible municipal services,
•
to introduce a market oriented approach to the process of building and operating
infrastructure.
All of the recorded objectives were to contribute to the process of finally narrowing the
gap between rural and urban areas in the sphere of economic development (PAD page
14).
The objectives set for Component C formed part of the achievement of two of the three
Project objectives: increasing non-agricultural employment and supporting the process of
strengthening local government and regional development.
Component
activities
Component
Objectives
Project
Objectives
Figure 52.
Diagram of the correlation of the objectives and actions of
Component C with respect to the Project objectives
Increasing non-farm
employment
Improvement
and upgrading
of infrastructure
Building and
upgrading
of roads
strengthening local government
Assisting in building up
the institutional resources needed to
obtain pre-accession and
EU structural funds.
Creating alternative
organizational and institutional
structures (with a view to
ensuring the delivery of sustainable
and accessible municipal services)
Development of the
water supply networks
Introducing a marketoriented approach
to the process of building
and operating
the infrastructure.
Development of the
Development of
sewage networks and waste management
sewage treatment plants
system
Training and
technical
assistance
Source: own work
Adequacy evaluation
Taking into account the scale and scope of neglect and the spatial imbalances in the
sphere of the development of rural infrastructure and on the other hand the great need to
improve the infrastructure provision of rural areas both with respect to the living and
working conditions of the rural population and the conditions for creating extra-agricultural
areas of activity, the objective set for the Component concerning the building and
upgrading infrastructure adequately responds to the above issue.
The positive impact of infrastructure investments on improving living and working
conditions is obvious and has its own logic. However, it is not applicable for all residents
of rural areas to the same degree. The ones in the worst position are those for whom high
costs are the barrier to accessing infrastructure services. Despite having the physical
possibility, some residents (for economic reasons) partially or fully refrained from
consuming newly accessible services (this is confirmed by empirical studies). It is
therefore necessary to design infrastructure investments that on the one hand are
adequate in relation to the scale of needs and on the other guarantee the delivery of
services of appropriate quality and at a price in line with the financial capacity of potential
users. “The organizational and institutional structures and the regulatory environment do
271
not support the efficient delivery of services, which results in unit costs being too high as
compared with the finance capacity. The process of building and operating rural
infrastructure must have a market orientation to avoid services being subsidized or them
being delivered below acceptable standards” (PAD page 8).
These important aspects of rural infrastructure development have been reflected in the
design of Component C’s objectives. Based on the assumption that “low cost provision of
sewer and solid waste services encourages increased subscription by potential users”
and on the basis of empirical evidence indicating that consumers protest against high
cost services (usually based on over designed facilities – PAD page 3) by withdrawing
their subscription, the Project authors introduced additional objectives for Component C.
This activity: “training and technical assistance” was supposed foster the creation of
alternative organizational and institutional structures with a view to ensuring the delivery
of sustainable and accessible municipal services and the introduction of a market
oriented approach to the process of building and operating infrastructure. In the
circumstances where there are great needs relating to infrastructure development and at
the same time where the financial capacity of local authorities is limited (which are
“typical” for the Polish countryside), the issue of selecting the investment to be
undertaken that is optimal from a financial, economic and social point of view comes to
the fore. The “technical assistance and training” activities conducted within the Project
were supposed to help with designing the appropriate investments.
To conclude, the appropriateness of the objectives of Component C with respect to the
problems of the areas, to which it is addressed, may be assessed as satisfactory.
Evaluation of the activities of Component C
The objectives set for Component C were achieved by way of the following actions:
•
Developing the water supply network (facilitating the supply of water of adequate
quality for domestic and industrial use),
•
Developing the sewage network and sewage collection and treatment facilities (often
realized in conjunction with water supply networks as a way of making up a complete
cycle of supplying water of appropriate quality for rural businesses and country
residents),
•
Developing solid waste management systems (including collection, recycling and
storage in accordance with the statutory regulations and the sanitary and safety
requirements),
•
Building and upgrading rural roads (consisting in building local feeder roads to
motorways under construction and paving surfaces in order to ensure access to
certain areas throughout the year irrespective of the weather conditions),
•
Training and technical assistance (in order to raise awareness of public officials as to
the existence of alternative solutions for providing municipal services, improving
effectiveness, improving the quality and standard of the provision of municipal
services, limiting costs and the required subsidies and reducing costs for the final
consumer).
Analyses of the level of development of individual fields of infrastructure indicate that the
directions of the activities undertaken as part of Component C were appropriate with
respect to the type of needs of rural areas. The principle adopted in the RDP of basing on
272
expressed demand was the reason why certain types of infrastructure were eliminated
from Component C as local authorities had expressed a low level of demand for financial
support. The low level of interest of beneficiaries in investments in such sectors as
communications or energy (proposals for investment in telecommunications infrastructure
in the countryside constituted 0.8% of the entirety of the investment portfolio and the
share of power supply projects qualifying for finance represented only 1.3%129) meant
that they were not included in the group of activities covered by the support of RDP.
The structure of applications approved for implementation broken down according to
individual types of infrastructure investments was generally in line with the demand
expressed in this respect and met the actual needs relating to the development of
technical infrastructure in rural areas.
Table 64.
Structure broken down according to types of approved and
implemented applications
Type of investment
Percentage of applications
Submitted in 2001
Approved in 2001
Roads
54.2
56.3
Sewage systems
28.7
27.7
Water supply systems
16.2
14.9
Solid waste management systems
0.9
1.1
100.0
100.0
TOTAL
Source: Own calculations based on data from the Project Coordination Unit Quarterly Reports
As indicated by the above information, in the case of one activity the scale of the
requirement expressed by the beneficiaries (gminas, associations of gminas, powiats)
was not adequate in relation to the level of development of this infrastructure element.
The interest in investments concerning the management of solid waste (measured on the
basis of the number of applications submitted and also the number of investments
undertaken in this sphere) were not correlated with the scale of needs for solid waste
disposal sites to be organized in rural areas. This is above all the result of a great need
for improvements in the spatial accessibility of rural areas (building and modernizing
roads) and water management (water supply, sewage collection and treatment), which in
light of the restricted financial capacity of gminas makes it necessary to focus activities
and resources on priority investments.
It should be noted that for the group of gminas participating in the RDP – the water supply
activity - the average indicator of connection to the water supply network that indicated
the percentage of homes connected up to the water supply system amounted to 45% and
was 12 percentage points lower than for gminas not taking part in the Project.
Nevertheless, as regards the sewage network, for gminas implementing investments
within the framework of the RDP – the sewage system activity – the percentage of those
connected up to the sewage network was slightly higher (by two percentage points),
however in the case of this infrastructure element, in light of its low average in rural areas
and the minimal scale of the variance, this may be a coincidental distribution. With
respect to the density of gmina roads with paved, improved surfaces, gminas participating
129
Ibidiem, p. 14.
273
in the Project – roads activity – were characterized by a lower average density of roads in
this category as compared with non-participating gminas (for the former this amounted to
15 km per 100 km2 and for the latter – nearly 19 km/100 km2). Generally, the Project was
implemented in areas with a relatively less favorable situation in the spheres under
discussion.
The evaluation of the adequacy of the last of the activities “training and technical
assistance” may be assessed on the basis of the beneficiaries’ opinions concerning their
usefulness. None of the training participants assessed the training as not very useful or
not useful at all. More than half of the surveyed representatives of the local authorities
that confirmed their participation in the training assented that the training had been very
useful.
In conclusion, the Component actions appropriately respond to the actual problems and
needs of rural areas (gminas and powiats). It turned out that it was legitimate to
“structure” Component C in such a way as to make it possible for rural communities to
choose those infrastructure investments from a list of options whose realization fulfilled
their priority development needs as well as help with choosing such investments, which
are optimal from a financial, economic and social point of view.
Evaluation of participation in Component C
Component C was implemented in all 16 voivodships in Poland. In the project documents
the main beneficiaries of Component C of the RDP project were considered to be:
•
Rural gminas,
•
Urban-rural gminas excluding investments in towns with more than 15000 residents,
•
Urban gminas excluding investments in towns with more than 15000 residents,
•
Authorized bodies of inter-gmina associations,
•
Poviats only in relation to powiat roads, excluding investments in towns with more
than 15000 residents.
Potential beneficiaries of Component C
The potential number of beneficiaries could exceed 2.5 thousand. Rural gminas could
potentially constitute the most numerous community of RDP participants, whereas the
smallest one would be urban gminas due to the restrictions as to the number of residents
(fewer than 15 thousand). The Project was generally targeted at the residents of rural
areas.
274
Table 65.
Number of potential beneficiaries
Units
Number of potential
beneficiaries
Percentage
Poviats
308
12.1
Urban gminas
78*
3.1
1604
62.6
567
22.2
2557**
100.0
Rural gminas
Urban-rural gminas
Total
Gmina associations
No data available
*Fewer than 15 thousand residents,
** The number of potential beneficiaries amounted to 2577, and this number of units was invited to
training. Differences may result from formal decisions.
Source: Rocznik Statystyczny RP, GUS, Warszawa 1999.
On the assumption that infrastructure investments designed only within the boundaries of
one gmina could lead to the loss of significant benefits due to its small territorial area, the
principle of economies of scale was adopted as one of the classification criteria for
investment projects in the Project. It was expected that the implementation of the Project
would contribute to strengthening the tendency for groups of gminas to undertake
common investment activities in the sphere of technical infrastructure. However, the
anticipated effects were not achieved by including Gmina Associations (which submitted
only 7 applications) in the group of entities authorized to apply for assistance, although
projects realized by several gminas were favored.
However, the number of road applications received from Poviat Boards indicates that the
decision to address the RDP offer to powiats - local government units established
relatively recently (we are referring to the start of the Project) would appear to be the right
one.
On the basis of the number applications received for co-financing submitted by entities
authorized to do so (and also the level of the amounts in relation to which co-financing
has been applied for) it is possible to unequivocally state that the interest in participating
in RDP was very large. At total of 2077 applications were submitted (Quarterly Report No.
3). This means that theoretically (assuming that each entity had submitted only one
application) 81% of potential beneficiaries submitted a requirement for funding from RDP
for undertaking infrastructure investments. The finance required for implementing
investment tasks applied for by gminas was five times greater than the anticipated
amount covered by the Project’s financial capacity.
If one looks at the distribution of the number of applications (as well as their value) that
were submitted by individual voivodships it is possible to note that generally this is case
of a simple relationship – the lower the level of the infrastructure provision, the greater the
scale of the investment finance requirement. In light of the very large variation between
voivodships with respect to the number of administrative units they comprise, the amount
applied for and the number of applications was referred to the number of gminas in a
given voivodship. In light of such a synthetic measure the following voivodships
expressed the greatest needs: Świętokrzyskie, Podkarpackie, Lubelskie, Małopolskie,
Łódzkie (all of which were characterized by a low standard of technical infrastructure). In
these voivodships the average amount applied for and the number of applications per
gmina was the highest. The lowest interest in Component C (measured on the basis of
275
the number of applications for finance submitted) was noted in the Opolskie, Śląskie,
Zachodniopomorskie and Dolnośląskie voivodships.
Table 66.
Applications submitted for financing in Component C
Voivodship
Value of
Number of
applications for
Number of
applications
applications for
co-financing
in the ranking
submitted (PLN
co-financing
list
thousand)
Level of
technical
infrastructure
(synthetic
indicator)*
Podkarpackie
96 425
153
32
Low
Dolnośląskie
64 221
54
5
Medium
Świętokrzyskie
63 052
137
64
Very low
Lubelskie
92 915
168
29
Low
Małopolskie
77 231
185
41
Low
Warmińsko-Mazurskie
44 178
85
37
Low
Pomorskie
48 087
78
15
High
Zachodniopomorskie
23 323
53
25
High
Śląskie
31 557
39
7
High
Wielkopolskie
40 283
152
49
High
Opolskie
20 989
38
4
High
Lubuskie
28 198
52
8
Low
Łódzkie
77 003
184
34
Low
Mazowieckie
97 879
135
56
Very low
Podlaskie
35 396
77
35
Very low
Kujawsko-Pomorskie
31 080
93
35
Medium
TOTAL
871 816
1682
476
-
* synthetic indicator - own calculations based on BDR data 1999, GUS, Warszawa
Source: Quarterly Report of the Project Coordination Unit no. 3
Beneficiaries of Component C
The largest number of beneficiaries was located in the Świętokrzyskie voivodship, then in
the Wielkopolskie, Małopolskie, Mazowieckie and Kujawsko-Pomorskie Voivodships. The
smallest number of beneficiaries was situated in the Śląskie, Opolskie, Dolnośląskie and
Lubuskie voivodships (apart from the Lubuskie voivodship, these voivodships are in the
relatively most favorable position as regards technical infrastructure).
Rural gminas constituted the largest proportion of beneficiaries – with them making up
61% of the total, whereas urban gminas represented the smallest share, as these only
represented 8% of the total. Thirty percent of road investments were undertaken on the
initiative of powiats.
If the activity “training and technical assistance” is taken into account, the Project
encompassed more or less all the potential beneficiaries, which is in line with its guiding
principles. At least one of the possible infrastructure investments was realized within the
276
boundaries of 25% of beneficiaries and it was a frequent occurrence for gminas to carry
out two different types of infrastructure investment each.
Figure 53.
Spatial distribution of gminas participating in the RDP (all activities)
Source: MIS Database
The largest number of water supply investments was undertaken in the Świętokrzyskie,
Mazowieckie and Małopolskie voivodships. The greatest number of investments relating
to sewage was realized within the Podkarpackie, Kujawsko-Pomorskie and Wielkopolskie
voivodships. The Świętokrzyskie voivodship was the definite leader when it came to the
number of road contracts. A few investments with respect to solid waste management
systems were undertaken within only 3 voivodships: the Mazowieckie (two investment
projects), Wielkopolskie and Lubelskie (one each) voivodships.
277
Table 67.
Number of contracts in Component C broken down according to
voivodships
Type of investment project
Roads
Sewage
System
Water
Supply
System
Solid
Waste
TOTAL
Percentage
of Contracts
Dolnośląskie
7
5
3
0
15
2.1
Kujawsko-pomorskie
32
22
4
0
59
8.2
Lubelskie
32
13
1
1
47
6.5
Lubuskie
8
11
3
0
22
3.0
Łódzkie
42
7
1
0
51
7.1
Małopolskie
34
20
14
0
68
9.4
Mazowieckie
36
4
17
2
59
8.2
Opolskie
9
4
2
0
15
2.1
Podkarpackie
23
27
2
0
52
7.2
Podlaskie
40
3
6
0
49
6.8
Pomorskie
20
6
2
0
28
3.9
Śląskie
7
3
0
0
12
1.7
Świętokrzyskie
62
12
17
0
91
12.6
24
14
7
0
46
6.4
Wielkopolskie
31
22
7
1
61
8.4
Zachodniopomorskie
19
20
9
0
48
6.6
TOTAL
428
194
97
4
723
100.0
Voivodship
Source: Quarterly Report of the Project Coordination Unit no. 17
The analyses that have been conducted lead one to reflect upon the purposefulness of
dispersing the resources over all 16 voivodships – would it not rather be more effective to
concentrate them in the voivodships where the scale of infrastructure neglect was the
greatest and therefore those that had expressed the largest requirements with regard to
financial support? Would this type of strategy not make a greater contribution to leveling
out the differences between individual regions? And is distributing the funding over all the
voivodships not an action that could lead to a widening of spatial imbalances with respect
to infrastructure development and thus indirectly the conditions for conducting business
and living conditions of the rural population?
It is very difficult to make an unequivocal assessment of this matter. An argument in favor
of making available financial resources to all of the voivodships is the fact that all
voivodships (irrespective of the average level of technical infrastructure) are
characterized by a larger or smaller degree of internal variance – this is a specific
characteristic of rural areas in Poland. Secondly, in all of them one notes the existence of
the problem connected with the underdevelopment of the sewage network (including the
sewage treatment system), which has a particularly unfavorable impact on the natural
environment and on the living conditions of the rural population in all country regions in
Poland. Another problem consists in the fact that in all voivodships the majority of rural
gmina roads are generally of very poor quality.
278
Not limiting oneself to specific regions (voivodships) with respect to selecting
beneficiaries was also the continuation of the relevant strategy in the rural infrastructure
finance project forming part of the “ASAL” program (1994-1997). The chosen option of
universal participation in the RDP in Component C gave all units equal opportunities to
access resources and at the same time ensured that the most efficient infrastructure
investment projects in the country were selected and carried (in the context of objectives
associated with creating new jobs, stimulating economic growth and improving the state
of the environment). And this may well be the most important argument confirming that it
was right to select beneficiaries in this way, especially in a situation where the amount of
financial resources was relatively low as compared with needs.
To summarize, it should be stated that the spatial range of the Project was considerable.
Carrying out Component C in all 16 of Poland’s voivodships should be considered as
being justified.
Evaluation of the relevance of Component C to government policy
The purpose of Component C was in line with the objectives of the State concerning rural
areas. In all the government documents mentioned below, the development of rural
infrastructure as well as the issues associated with creating new jobs in the countryside is
considered to be the highest priority objective of the rural development strategy:
•
Strategy for agriculture and rural areas (1990);
•
Assumptions of socio-economic policy for rural areas, agriculture and the food
economy (1994);
•
Medium-term strategy for the development of agriculture and rural areas (1998)
•
Pact for agriculture and rural areas (1999)
•
Coherent structural policy for the development of rural areas and agriculture (1999)
The purpose of Component C is fully in line with the general principles of state policy
towards rural areas.
5.1.3
Situation before and after the implementation of Component C
Efficiency evaluation of Component C
According to the Project Appraisal Document (PAD) the actions undertaken within the
framework of Component C were supposed to bring about the following (PAD Annex 2):
•
Realization of investment projects of a value of approximately 177.39 million USD
with respect to modernizing and building infrastructure;
•
Improving the quality and efficiency of municipal services in the countryside.
The type of indicators adopted in Component C, which were used to measure the
outcomes of the infrastructure investments undertaken in rural areas, was proposed in
the basic documents drawn up in March 2000:
•
Project Appraisal Document;
279
•
Operational Manual.
The table below shows the output indicators:
Table 68.
Output indicators according to the Project Appraisal Document and
the Operational Manual
Project Appraisal Document
Water and sewage systems:
Operational Manual
Water supply and sewage disposal system:
Amount of treated water produced
Amount of water supplied / sewage
collected
Number of water connections
Number of water connections
Number of sewer connections
Number of connections to the sewage
system
Receivable collection rate
Bill collection rate
Tariff levels
Tariff levels
Losses (% of production)
Level of losses (as a % of water supplied /
sewage collected)
Operating expense
Operating expense
Roads
Roads sector
Length of roads upgraded or built
km of roads upgraded or built
Average daily traffic intensity
Average daily traffic
Operation and maintenance costs
Number of road accidents
Number of accidents
Solid waste sector:
Solid waste sector:
Solid waste disposal capacity
Solid waste collection capacity
Landfill capacity
Landfill capacity
Number of operators trained
Number of projects, which received
technical assistance
Source: PAD and Operational Manual
The following indicators were shown in the monitoring table:
Concerning water supply systems:
•
Number of water treatment stations;
•
Number of water supply connections - households;
•
Number of water supply connections – public buildings, business entities and others;
•
The length of the installed water supply system.
Concerning sewers and sewage treatment plants:
280
•
Number of sewage connections – households;
•
Number of sewage connections – public buildings, business entities and others;
•
The length of the installed sewage system;
•
The number of sewage treatment plants built;
•
The efficiency of sewage treatment plants built.
Concerning roads:
•
The length of roads built or upgraded in km.
Concerning solid waste management systems:
•
Number of landfills built;
•
Capacity of landfills;
•
Number of users - households;
•
Number of users - others.
Concerning training and technical assistance:
•
Number of trained technical staff of JST, WBWP and RO ARIMR employees;
•
Number of organized training courses,
•
Number of projects that have received TA support
Concerning all activities
•
Jobs created (both directly and indirectly).
It may be generally stated that the indicators established for evaluating the program
outputs diverge from the planned values, although the scope of variances differs for
individual Program outputs. The considerable diversity of results amongst voivodships is
also worth noting.
In the case of Component C one can observe the whole range of possible
interrelationships between assumed and achieved results: assumed outputs were lower
than actual; assumed values exceeded planned ones and the third type of relationship the results achieved were in line with the planned ones.
Average indicators for actions connected with developing the water supply and sewage
networks and building and upgrading roads did not reach the planned values. It should be
noted that the relatively largest imbalance between planned and achieved values
concerned the sewage system. Only indicators for services connected with training
considerably exceeded the planned values. We have presented below a characterization
of the outputs for individual activities.
Water supply system
The anticipated result of the actions connected with developing the water supply system
was building 886.6 km of water supply network, to which 13,086 households and 1,467
other facilities (public utility facilities, business entities and others) were supposed to be
connected in accordance with assumptions. With respect to the length of the water supply
network higher (by 4.1%) results than those anticipated were achieved. Nevertheless, it
was not possible to attain results of such a scale in other areas, concerning e.g. the
number of connections. This is a more important element in that a considerably lower
281
number of water supply connections means that there is a lower number of users of a
particular service.
The total number of connections for households and business entities was 1235 lower
than the planned figure, with the assumed indicator value for households being only 1.7%
lower than the actual one. Taking into account the small scale of the divergences
between the assumed and actual numbers of built connections to the water supply
system it is possible to consider that the objective had been fully achieved to this extent.
The scale of imbalances was a lot greater for other facilities. Nearly 70% fewer facilities of
various types were connected up to the water supply system than had been assumed.
The total number of connections for households and business entities was 8.5% lower
than assumed. The number of water treatment plants was exactly the number that had
been planned. Almost 40% of the new jobs planned were created.
Table 69.
Planned and achieved results in the area of activity: the water
supply network
Indicator
Type
Measure
Achieved
Planned
Length [km]
923.0
886.6
Number of water supply connections households
Number [units]
12 869
13 086
Number of water supply connections –
others
Number [units]
449
1 467
Number of water treatment stations
Number [units]
14
14
Number [units]
821
2 065
Length of water supply system installed
Source: Based on MIS –C data
Sewage system
With respect to this area of activity it was assumed that 916 km of sewage network was to
be built, which 24.8 thousand households and 1.88 thousand other facilities (public utility
facilities, business entities and others) were supposed to use. The scope of the
divergences between the assumed and actual number of kilometers of sewage network
built were considerable: the length of the built sewage system was 13.2% greater than
the planned figure. Sixteen percent fewer sewer connections to households and 24.5% to
other facilities were built than the assumed level. In the case of the former the number of
connections was 3950 lower and for the latter 462 lower than the planned amount. The
total number of connections, which were established as part of the RDP was therefore
4412 (16.8%) lower than the planned figure.
A total of 236 sewage treatment plants was built, which was 115 fewer than planned. In
the case of this infrastructure element 61% of the plan had been achieved. Assumptions
concerning the total efficiency of sewage treatment plants built proved to be higher than
the attained result. The accomplished task was more or less in line with assumptions
despite the fact that the number of sewage treatment plants put into operation was lower.
As regards jobs, 1238 were created (i.e. 23% of the assumed number).
282
Table 70.
Planned and achieved results in the area of activity: the sewage
network
Type
Indicator
Measure
Achieved
Planned
Length [km]
1037
916
Number of sewer connections - households
Number [units]
20 850
24 800
Number of sewer connections – others
Number [units]
1 422
1 884
Number of sewage treatment plants built
Number [units]
236*
351
Length of sewage system installed
3
Efficiency of sewage treatment plants built
Efficiency [m /
per day]
14 853
12 122
Number [units]
1 238
5 400
* including 213 farm sewage treatment facilities
Building and upgrading roads
The total length of roads built and upgraded amounted to 734 km and was 177 km longer
than the assumed figure. The attained result was therefore 32% higher than the planned
one. Within this area of activity 3704 new jobs were successfully created (i.e. 24.5% of
the assumed number).
Table 71.
Planned and achieved results in the area of activity: building and
upgrading roads
Indicator
Length of roads built and upgraded
Type
Measure
Achieved
Planned
Length [km]
734
557
Number [units]
3 704
15 100
Solid waste management system
Solid waste management is the area of activity that evoked the least interest on the part
of beneficiaries and the assumed outputs were the lowest for this. At the same time, this
is the only area of activity, in which the divergences between assumed and actual
outcomes with respect to the number of established facilities were slight. Four landfills
were set up with a total capacity of 138.9 thousand dm3. Their capacity was nearly 35%
lower than the planned figure.
Of the areas of activity described hitherto, solid waste management was the first one, in
which the number of actual users exceeded that of planned ones. It was planned that a
total of 16.9 thousand users (including 96.8% of households) would use the four newly
established landfills, whereas in reality the figure was 6.1 thousand (36%) higher than the
assumed level. Of the actual users of solid waste disposal sites, the increase in users
designated as “others” was decidedly higher than the planned figure (the share of
households in actual users amounted to 80.7%).
It was assumed that 240 jobs would be created within this area of activity of which 74%
are already functioning.
283
Table 72.
Planned and achieved results in the area of activity: solid waste
management system
Type
Indicator
Measure
Achieved
Planned
Number of landfills built
Number [units]
4
5
Number of users - households
Number [units]
18 610
16 395
Number of users - others
Number [units]
4 464
542
Landfill capacity (m3)
Capacity [m3]
138 926
200 000
Number [units]
177
240
Source: Based on data from the MIS database
Training of technical staff and technical assistance for gminas, ARMA and VPIU.
In 2001 implementation of the training program was commenced. Ninety six training
courses were supposed to be conducted, which at least 3,000 representatives of gmina,
powiat and voivodship authorities were to attend. Ninety seven training courses were
conducted, in which 3019 persons participated, therefore 19 more than planned.
According to the assumptions, all potential beneficiaries numbering 2,577 were invited to
take part in training.
In this area of activity, it should be considered that the assumed results were in line with
those actually achieved.
Table 73.
Planned and achieved results in the area of activity: training
Indicator
Definition
Number of Regional SelfGovernment Unit technical staff,
VPIU and ARMA Regional Office
employees trained
Result:
Achieved
Planned
Number of Regional SelfGovernment Unit technical staff,
VPIU and ARMA Regional Office
employees trained by the RTI
3 019
3 000
Number of courses organized
In accordance with contract with
RTI
97
96
Number of Regional SelfGovernment Units invited to
training (including participants)
All Regional Self-Government
Units entitled to participate in
the RDP will be invited
2 577
2 577
Source: Project Coordination Unit Report
We have noted a similar situation for technical assistance. In accordance with the
assumptions, all gminas that had applied for co-financing received technical assistance.
One hundred percent of set plans were achieved in this area of activity.
284
Table 74.
Planned and achieved results in the area of activity: technical
assistance
Indicator
Percentage of
projects receiving TA
Definition
All gminas that had applied for
subsidies (2077), ARMA Regional
Office and VPIU should receive TA
Result:
Achieved
Planned
100%
100%
It should be noted that an on-line course was developed under Component C (by RTI and
Lemtech Konsulting specialists) based on the guide entitles Execution of Infrastructure
Projects in Rural Gminas. It provided all the interested persons with an opportunity of
self-education and a possibility of verifying the knowledge acquired at school. The course
could serve as an independent tool aiding the preparation of infrastructure investment
projects. The access time to the training on the PCU Web site was unlimited. There were
no limitations as to the multiple use of the course. In the course the information contained
in the guide was divided into four training modules summing up its individual chapters.
1. Stages of Project execution and identification;
2. Project technical and technological analysis and calculation of the current and future
value of cash (constituting an introduction to the Project financial and economic
analysis);
3. Project financial installation and implementation;
4. Project financial and economic analysis.
The number of persons visiting the site (exceeding 5000 confirmed visits) may show a
great interest in that completely new tool. The obvious advantage of such solution was
the availability of a guide containing a complete base of knowledge concerning that
subject.
Diverse impacts were obtained compared with intended values in individual areas of
activity. The greatest variances concerned the number of new jobs, which were supposed
to be created as a result of realizing individual investment projects. However, there is a
proviso that in this case the final deadline for “evaluating” the impact in this respect is in
the years 2006- 2009 (five years after investment completion).
Training and technical assistance as well as building and upgrading of roads were those
areas of activities where there was the greatest concurrence of planned and achieved
results. In contrast the area of activity – solid waste management was characterized by
the highest efficiency - with the number of end users of the provided service being higher
than the assumed level.
The lowest efficiency was observed in the area of activity – the sewage network. The total
number of connections to the sewage system was 32% lower than the assumed figure
and 16% lower in the case of the water supply system.
Despite the various outcomes in individual areas of activity, the Project’s efficiency can
be assessed as satisfactory. Higher than expected results were attained in the case of
285
the growth of the length of the water supply network, the sewage system, the length of
built and upgraded roads and the efficiency of sewage treatment plants.
Criteria for financing in Component C
The level of co-financing using RDP funds was contingent on the type of investment
planned to be implemented and could amount to a maximum of 50%.
Table 75.
The level of subsidies for individual types of infrastructure
investments
Maximum subsidy share
(% of the costs of the
project)
Actual average subsidy share
Water supply system
30.0
26.0
Sewage system
50.0
35.0
Solid waste
50.0
35.0
Gmina roads
50.0
44.0
Poviat roads
50.0
44.0
Type of investment project:
Regional Steering Committees ranked the submitted projects according to the following
criteria:
•
The importance for the broader regional economic development plan;
•
The potential for direct and indirect job creation;
•
Joint proposals submitted by several gminas, which reflect the principle of economy
of scale in Project design;
•
The contribution of local government to financing investment costs;
•
The economic rate of return.130
ARMA RD’s verified the quality of the investment proposals on the basis of technical,
economic, financial and institutional requirements. According to the Project assumptions,
infrastructure projects were realized in areas with high population concentration.
To summarize, it is possible to state that the criteria for co-financing were set out
unequivocally. The fact that during the assessment of the investment projects additional
points were awarded for matching funds that were greater than those that had been
assumed in the criteria encouraged gminas to design investments with a greater share of
own resources than that which was required. In practice, this was translated into an
average threshold for co-financing that was lower than the planned one for each area of
activity. This consequently made it possible to allocate resources to additional
investments and finance additional projects.
However, an excessive emphasis (a larger number of points in practice) on new jobs
being created as a result of the investments could “tempt” the gminas to declare a larger
130
RSCs could adjust the project evaluation criteria recommended by BS to regional priorities and
to assign various ranks to these criteria.
286
number of jobs than the number that was actually possible to attain. This was to a certain
extent an area where points could be „fought over”, which in light of the strong
competition of good quality projects was particularly important and in the end could have
been a decisive factor for the points total and therefore for the final outcome. It should be
noted that no other program currently in operation (SAPARD, PHARE 2000) has such a
criterion.
We consider it appropriate for the share of co-financing from the RDP to be set lower for
the water supply area of activity than for the others. This criterion is justified by the fact
that the development of this infrastructure element was most advanced in rural areas (in
relation to other areas covered by RDP financial support). The acceleration of the
process of building the water supply system without parallel activities pertaining to the
sewage network could entail a widening of the imbalances that are already very large.
However, in circumstances where imbalances are increasing, criteria that rewarded
activities relating to the water supply system, which were conducted in parallel to the
development of the sewage network would be optimal.
Evaluation of the utility of Component C
The utility of the project was analyzed from the point of view of the overall contribution of
the Project to the development of rural infrastructure and thus on a nationwide scale and
from the point of view of the outcomes attained as a result of its implementation in the
units that had participated in the RDP in relation to the results in the group of gminas that
had not participated in the Project. Utility, which was also analyzed from the point of view
of evaluating the impact of the Project on alleviating (or maybe aggravating) the problems
of infrastructure provision in rural areas, above all concerned the reduction of the
imbalances between the water supply network and the sewage system.
Water supply network
Within the framework of the first of the areas of activity in Component C a total of 923 km
of water supply network was built, which is used by 13,291 users (we treat them as being
equivalent to the number of connections). The annual growth of the water supply network
realized under the RDP over the duration of the Project constituted 5.2% of the annual
increase in the entire length in rural areas. The average annual growth rate of new
consumers compared with the whole amounted to around 4.7%. Generally, without the
Project’s contribution the length of the water supply network and the number of
connections would have been lower by the measurable outcomes that were brought
about by the Project. The scale of the achieved outcome was small with respect to the
growth of the water supply network and the number of newly created connections in
general in rural areas.
A proper evaluation of the contribution of the Project in this regard should however take
into account the fact that only 4.0% of the total gminas in the country (of which more than
60% were rural gminas) participated in this area of activity. Bearing in mind this fact, the
measurable outcome attained in this sphere should be assessed as satisfactory. The
growth of the length of the water supply system as well as the number of new users
established within the framework of the Project was more or less in proportion (it was
even slightly higher in the case of the number of connections) to the overall outcomes
achieved nationwide in the years when the RDP was in progress.
287
Table 76.
Change in the value of indicators for water supply infrastructure
YEAR
Indicator describing
Change
in the
years
2000-2003
Average annual
growth rate
2000
2003
The length of the water supply
network (in thousand km)
161.8
179.5
17.7
5.9
Including those set up within the
framework of RDP (in thousand
km)
0.0
0.923
0.923
0.308
Number
of
water
supply
connections (in thousand units)
2 297.3
2 577.8
280.5
93.5
0.0
13.318
13.318
4.430
units)
Source: Data from BDR 2003, GUS, Warszawa; Data from the MIS database.
In the group of gminas participating in the RDP, over the duration of the Project the
number of water supply connections increased by 13,318. The outcomes attained as a
result of realizing the RDP constituted 90% of the general increase in water supply
connections in the group of gminas that were participating in this activity. In gminas that
were participating in the Project the results obtained should be assessed as very positive.
The outcome practically achieved in this sphere could be “credited” to the RDP.
Table 77.
Change in the value of infrastructure indicators in the group of
gminas participating and not participating in the RDP
Gminas
Indicators
Year
Participating in
the RDP
Not participating in
the RDP
Average number of connections to
dwellings and communal residential
buildings per one gmina
2000
880
1103
2003
1078
1228
Difference in 2003-2000
198
125
% change (2000 =100%)
22.5
11.3
Source: Data from BDR 2000, 2003, GUS, Warszawa
An additional point contributing to the positive assessment of the utility of this area of
activity is justified by the fact that the rate of change relating to the average number of
water supply connections in the group of gminas participating in the RDP was two times
lower than in the group not participating in it.
Sewage network and sewage treatment plants
Within the framework of the second activity in Component C a total of 1037 km of sewage
network were built, which are used by 22,3 thousand consumers. The above outcomes
achieved as a result of conducting the Project constitute the Project’s real contribution to
the development of the sewage system in rural areas.
The annual growth of the sewage network system attained as part of the RDP over the
duration of the Project represented 8.1% of the annual increase in the entire length in
rural areas. The average annual growth rate of new consumers compared with the whole
288
amounted to around 11.7%; therefore this is nearly two and a half times greater than in
the case of the first area of activity. The scale of the achieved outcome is already
considerable with respect to the growth of the sewage network and the number of newly
created connections in general in rural areas.
A proper evaluation of the contribution of the Project in this regard should however take
into account the number of the units participating in this area of activity as in the case of
the above area of activity. Investments in sewage systems (including sewage treatment
plants) were carried out in the territory of 7.5% of the total number of gminas in the
country. Bearing in mind this figure, the measurable outcomes attained with regard to
sewage networks could be assessed as satisfactory. The growth of the length of the
water supply system as well as the number of new users established within the
framework of the Project was higher than the outcomes achieved nationwide in the years
when the RDP was in progress (taking into account the ratio of participation to the
achieved outcome).
The throughput capacity of the sewage treatment plants put into operation within the
framework of the RDP (numbering 236, of which 213 were farm sewage treatment
facilities) represented 6.6% of the total increase in the total throughput capacity of
sewage treatment plants over the duration of the Project.
Table 78.
Change in the value of indicators for the sewage system and
sewage treatment plants
YEAR
2000
2003
Change in
the years
2000-2003
The length of the sewage network
(in thousand km)
16.2
28.8
12.6
4.2
framework of RDP
0.0
1.037
1.037
0.34
Number of sewage connections (in
thousand units)
259.4
450.1
190.7
63.6
framework of RDP
0.0
22. 272
22. 272
7.424
Throughput capacity of sewage
treatment plants (in m3/per day)
787 518.2
1 010 892
223 373.8
74 457
framework of RDP
0.0
14 853
14 853
4 951
Indicator
Average annual
growth rate
Source: Data from BDR 2003, GUS, Warszawa; Data from the MIS-C database.
In the group of gminas participating in the RDP, over the duration of the Project the
number of sewage connections increased by 33.4 thousand, of which 22.3 thousand had
been built within the framework of the Project. The outcomes attained as a result of
realizing the RDP constituted 67% of the general increase. In gminas that were
participating in the Project the results obtained were higher than those of gminas not
participating in the RDP as shown by the data below, which means that the utility of the
RDP should be given a highly positive assessment.
289
Table 79.
Change in the value of infrastructure indicators in the group of
gminas participating and not participating in the RDP
Gminas
Indicators
Year
Participating in the
RDP
Participating in the
RDP
194.3
114.6
385.1
184.1
Average number of connections to 2000
dwellings and communal residential
2003
buildings per one gmina
Difference in 2003-2000
% change (2000 =100%)
69.5
60.6%
Source: Data from BDR 2000, 2003, GUS, Warszawa
From the point of the view of the utility of the Project it is important to evaluate its impact
on solving basic problems relating to rural infrastructure and in this specific case we are
considering the issues associated with the water and sewage system. An important
element of the assessment consists in analyzing the impact of the activities undertaken
within the framework of the Project on changing the imbalances between the number of
water supply and sewage connections. This would make it possible to fully assess the
Project’s real contribution.
The data summarized in the table below show the tendencies with regard to the
magnitude of the impacts including and excluding the contribution of the RDP and also
the significance of the Project’s contribution to eliminating the differences in the sphere
under discussion. If the result attained with the support of RDP co-financing is subtracted,
the difference between the number of water supply and sewage connections would be
9,403 lower than the figure that it was finally possible to achieve. In practice this means
that the Project’s activities have contributed to a reduction in the imbalances between the
number of water supply and sewage connections nationwide and consequently the
Project has had an impact on improving the state of affairs relating to the water supply
and sewage system, thus indirectly on the improving the living conditions of the rural
population. If it were not for the Project’s contribution, the imbalance in this respect would
be 10.5% greater than the actual one.
290
Table 80.
Changes in the imbalances between the number of water supply and
sewage connections
Year
Impact
excluding
the
Project’s
activities
Change in
the years
2000-2003
(in %)
2000
2003
Change in
the years
2000-2003
Number of water supply
connections (in thousand units)
2 297.3
2 577.8
280.5
268.3
4.3
Number of sewage connections
(in thousand units)
259.4
450.1
190.7
169.4
11.2
2 037.9
2 127.7
89.8
99.2
10.5
Number of water supply
connections established within
the framework of RDP (in
thousand units)
0.0
12. 869
12. 869
-
-
Number of sewage connections
established within the
units)
0.0
22.272
22. 272
-
-
Difference
0.0
-9.403
-9.403
-
-
Indicators
Difference
Source: Data from BDR 2003, GUS, Warszawa; Data from the MIS database.
Despite the low proportion of gminas in the areas where this activity was carried out, the
Project’s contribution to the development of the sewage system and reducing the
imbalance between the number of water supply and sewage connections should be
assessed as very highly satisfactory.
Building and upgrading roads
With respect to the road network, unlike in the case of the water supply and sewage
network it is not possible to analyze the Project’s contribution to the overall achievements
in this area in the same way for formal reasons. The Project indicator adopted for
evaluation purposes for both roads built and upgraded treats these two categories jointly
and does not divide roads in accordance with GUS standards. On the other hand,
generally available statistical data for rural areas divide roads into various categories,
which have not been taken into account in the Project monitoring. However, the most
important barrier to conducting this type of analyses proved to be the basic change in the
category of roads and the aggregation by GUS of data concerning roads after 2000
according to other categories than those that had been applicable prior to this period. For
this reason it is not possible to assess the changes relating to the growth of gmina roads
and the increase in upgraded roads.
This situation indicates that with respect to designing indicators for evaluating the Project
it was legitimate to take into account the accessibility and scope of indicators, which
make it possible to compare the results attained in the groups of units participating and
those not participating in the Project and evaluations.
Solid waste management
With regard to solid waste management, we are dealing with an analogous situation to
the above, i.e. for formal reasons it is not possible to analyze the Project’s contribution to
the overall achievements in this sphere. The Project indicator adopted for evaluation
purposes concerns the number of landfills and their capacity in cubic meters, whilst the
291
information available for rural areas concerns the area of landfills in ha. Thus this case
also confirms the need to design or select such Project monitoring indicators that make it
possible to evaluate its contribution and which were therefore commensurate with
generally available indicators.
The utility of the Project should therefore be assessed as highly satisfactory.
5.2 Bottom – up analysis
5.2.1
Identification and measurement of Component C costs and other
expenditure
The budget allocated to the Component C was the biggest item within the whole RDP
budget. It accounted for about 65 percent of the whole budget. Its share was over twice
as big as for all Sub-Components B (B1, B2, B3) taken together.
Table 81.
Component C share in the RDP budget
Item
Component C
Planned cost in USD million
194.89
Percentage share in whole RDP
64.%
Bank financing (in USD million)
57.17
Percentage share of Bank financing
47.6%
Source: PAD, p.15
In the Project Appraisal Document the envisaged total budget for Component C, covering
all its elements (including training programs and other), amounted to USD 194.89 million.
The planned share of costs of investment tasks in the overall Components budget
accounted for 91.0 percent for Component C. The Component C budget is presented in
the table below.
Table 82.
Component C budget
Bank financing
(USD million)
Self-governments
(USD million)
Total costs
(USD million)
Rural infrastructure investment
projects
54.54
122.85
177.39
Water and waste water treatment
plants
27.00
60.10
87.10
Roads and solid waste
27.54
62.75
90.29
Training program for technical staff
1.11
-
1.11
Technical assistance for VPIU staff
and local government officials
1.09
-
1.09
Evaluation study
0.12
-
0.12
-
14.87
14.87
57.17
137.72
194.89
Item
Variable costs (O&M)
Total costs
Source: PAD, p. 77
292
Based on the quarterly report no.17 concerning the Project management, the total
utilization of loan funds and co-financing by the Polish side from the start of the Project in
comparison with the plan covering the whole duration of the Project amounts to 87.96
percent, and the value for Component C is 84.54 percent.131 The table below shows that
the actual share of local governments in financing infrastructure investment projects was
smaller than planned.
Table 83.
Forecasted and actual investment tasks financing breakdown
Item
Bank's funds
Local government
Total
Forecasted share
31.0%
69.0%
100.0%
Actual share
38.0%
62.0%
100.0%
Source: Operating manual, PAD, PCU 2005 data
The actual costs of execution for Component C have been lower than the planned costs.
The difference between the planned costs and actual costs is, among other things, due to
fluctuations in the USD exchange rate. While planning the costs, the exchange rate of
PLN 4.27 per USD was assumed. However, during the execution of the tasks the USD
exchange rate decreased significantly (in 2003 the average rate amounted to PLN 3.89,
and in 2004 the average rate was PLN 3.65).
From the financial point of view sewerage and roads are the biggest tasks, which
together account for 88.6% of total funds spent on investment tasks. The expenditure for
waste disposal sites had the smallest share in the budget, the cost of execution of these
sites was equal to 1.2% of total investment expenditure.
Additional costs
Each gmina incurred costs connected with preparation of investment projects; this activity
included preparation of technical documentation, designs, costs connected with
clarification of status with regard to land ownership issues. However, those are the costs
which are normally incurred by gminas when executing an infrastructure project. In local
government officials' opinion costs connected with the required transport and telephone
calls are not a significant burden on gminas' budgets.
5.2.2
Identification and measurement of the Project's products and
effects
Within Component C a number of investment projects have been executed; these
investment projects contributed to an improvement of situation with regard to
infrastructure facilities in the areas covered by the Project with regard to road network,
sewerage, sewage collection and treatment facilities and solid waste management.
Water supply system
In total 923 km of water supply systems have been built (or modernized) and 12 water
treatmemnt plants have been built.
131
According to latest data obtained directly from PCU (17.05.2005), the degree of the World
Bank’s loan absorption inreased to 100.0% of the planned level in case of Component C.
293
Sewage collection and treatment system
Under the RDP 213 new farm sewage treatment plants in a single gmina having approx.
5.5 thousand inhabitants have been built and 23 municipal sewage treatment plants have
been built or modernized.
Waste disposal sites
4 waste disposal sites have been built with a total capacity 138 926 m3.
Roads
Within Component C roads with a total length of 734 km administered by powiats and
gminas have been built and upgraded.
Training for technical staff
As part of this activity 97 courses of training have been conducted in which 3019 persons
participated. In accordance with the Project's objectives all potential beneficiaries (2577
persons) have been invited to take part in the training.
External effects
The conducted surveys have shown that the implementation of infrastructure investment
projects within Component C has had a wide-ranging influence at the level of gminas,
individual inhabitants, as well as business persons in rural areas. The main external
effects of Component C include:
•
•
•
294
Improved living conditions of rural population; this concerns:
o
changes in standard of durable goods used by households,
o
improved technical standard of housing in rural areas,
o
facilities making work easier in a household or a farm,
o
improved health of rural population,
o
better transport conditions in local systems,
o
improved conditions of transport for children to/from school,
o
improved safety for rural population,
o
“potential” reduction of operating costs (especially in case of sewerage).
Improved conditions for conducting business operations; this concerns:
o
better standard of equipment used by businesses,
o
better chances for businesses to survive in the market,
o
better spatial access.
Growth in business activity; this concerns:
•
o
new accommodation in agritourism farms,
o
new business entities (small, mainly commerce-related),
o
seasonal jobs connected with repair and modernization of buildings,
o
greater demand for building materials and materials applied in repairs.
Increased investment attractiveness of a gmina; this concerns:
o
greater interest in purchase of building lots,
o
greater interest in purchase of lots for recreation purposes.
•
Stronger social activity and social integration at local level.
•
Improved competence and greater experience of local government staff in planning
(in accordance with market economy orientation) and execution of infrastructure
investment projects.
The surveys have revealed a number of examples of positive influence of the
infrastructure investment projects; some are quite specific. The scope of the influence
differed, depending on the activity. The investment projects connected with development
of water supply and sewerage systems had the greatest positive influence on
improvement of living conditions and improvement of conditions for conducting business
operations. The opinions expressed by local government officials imply that greater
awareness of the needs of the rural population in the sphere of infrastructure
improvement in their localities and a strong impulse to work jointly for the benefit of local
communities can be mentioned as the positive influence resulting from such investment
projects. In many interviews formation of certain patterns and modes of behaviour as a
result of improved living conditions was also indicated.
In the light of survey results (questionnaires and interviews) and overall analysis of the
collected opinions the external effects accomplished as a result of execution of
investment projects as part of Component C can be judged very positively. Practically, we
have not encountered a completely negative assessment of the investment projects
carried out. All respondents said that the investment projects were useful or very useful,
and that the funds obtained from the RDP were instrumental in executing a large part of
those investment projects.
Very good cooperation with the ARMA Regional Office and VPIUs in the opinion of local
government officials, mainly with regard to competence of the staff and their usefulness in
practical aspects at the phase of preparing an application and project execution has
brought about acquired experience resulting in greater activity of gminas in execution of
investment projects using other funds from aid funds sources. The Project and its high
quality structure (this means the cooperating units) has contributed to strengthening of
the process of formation of new “bodies”, i.e. teams of persons who specialize in project
implementation in local governments.
295
5.2.3
Subjective evaluation of Component C according to the
beneficiaries (based on the opinion of local governments, business
persons, and inhabitants of rural areas)
Evaluation of objectives and activities of Component C with regard to the
beneficiaries' needs
Evaluation of the role of financial support in the development of rural infrastructure
Among main problems affecting the development of infrastructure in rural areas the lack
of funds is mentioned most strongly by local authorities. Nearly 77% of the surveyed local
government officials pointed out that factor (geographical conditions of gminas were
indicated in the second place by 16% of respondents, followed by lack of structure plans
indicated by 5% of respondents). The significant difference between the number of
respondents who indicate lack of funds and the next mentioned barrier for development
of infrastructure confirms the importance of the first obstacle, and at the same time points
out the importance of the problem, i.e. limited financial possibilities of local governments.
The results of surveys covering local government officials in gminas participating and not
participating in the RDP are one of the bases for evaluation of the financial support and
role of the RDP in the process of rural infrastructure creation.
Nearly a half (48%) of investment projects in the surveyed gminas would not be executed
at all without the funds available from the RDP. In case of 74% of the gminas lack of
financial support would cause a delay in the investment execution. If the funds from the
RDP were not available, it would be necessary to divide 58% of the surveyed investment
projects into stages. Taking the average value for answers to all questions asked below,
in the opinion of local government officials without the financial support provided by the
RDP only 42 percent of the infrastructure investment projects would have a chance to be
executed in accordance with the plans with regard to the scale of a given project and its
completion date.
Table 84.
Evaluation of influence of the RDP funds on execution of investment
projects (gminas participating in the RDP)
Question:
If the gmina did not receive funds from the RDP:
- Would a particular investment be executed?
- Would it result in a delayed execution of the investment?
- Would the investment be executed on a smaller scale?
- Would the investment be divided into stages?
Answer:
YES
NO
52.0
48.0
74.0
26.0
18.0
82.0
58.0
42.0
Source: own survey.
Considering the gminas which had not been supported financially by the RDP, in spite of
the fact that they attempted to, 46 percent of them applied for funds from other sources;
this was mainly a SAPARD program. The information in the table below shows the
influence of the lack of funds from the RDP on execution of investment projects. 23
percent of the planned investment projects have not been executed at all. The indicator
296
describing the percentage of investment projects not executed, in our opinion shows the
actual significance of the RDP funds, and at the same time indicates that the lack of
financial support was a significant problem for gminas. Nearly 60 percent of the
investment projects were delayed due to lack of financing from the RDP, and one in three
investment projects has been executed on a smaller scale.
Table 85.
Evaluation of influence of the RDP funds on execution of investment
projects (gminas not participating in the RDP)
Answer:
Question:
Has the investment (planned under the RDP)
- been executed?
Has the fact that the gmina did not receive funds from the RDP
- resulted in a delayed execution of a given investment?
- resulted in executing the investment on a smaller scale?
- resulted in dividing the investment into stages?
YES
NO
77.0
23.0
57.0
32.0
31.0
54.0
32.0
55.4
Source: own survey.
In-depth interviews conducted with persons (the staff of gmina offices) in charge of the
infrastructure investments execution imply that the funds received by gminas from the
RDP, even in case of investment projects having financial “coverage” from other sources,
played an important role in the infrastructure development in gminas, as the RDP funds
gave an opportunity to carry out several investment projects concurrently, which definitely
speeded up the process of infrastructure building. The Project was carried out in
coordination with other programs (mainly with SAPARD, PHARE programs), and
enhanced their positive impact on the rural infrastructure development process. In case of
Component C the synergy effect has been accomplished.
Table 86.
Influence of external sources of funds on the process of rural
infrastructure creation
External sources of funds for financing rural infrastructure
(for example funds from the EU, the World Bank):
Yes
No
No opinion
Speed up the infrastructure creation process
89.0
5.0
6.0
Equalize development opportunities of different gminas
78.0
11.0
11.0
Source: PBS 2005 survey results.
In the opinion of local governments and business persons external sources of funds are a
factor which speeds up the process of rural infrastructure creation and are also an
element that equalizes development opportunities of different gminas. The significance of
these funds is described as a key, decisive, governing factor (“without these funds one
can not imagine doing three fourths of what can be done when these funds are available.
Most investment projects would mean just repairing the most obvious deficiencies and
gaps. This is the only chance to do bigger issues, bigger investment projects and a larger
scope of issues to be done using local government funds, which was rather
297
unsuccessful”; “because it is the only opportunity for us to develop this infrastructure”;
“...this road would be done but it is hard to tell exactly when, next year or some other
time, and at the expense of another investment, and in this case the project has been
completed...”; “when you can obtain funds from external sources, then such an
investment is executed faster, and if it is faster, then also cheaper; as everyone knows
that if an investment takes a long time, this unfortunately results in greater execution
costs, therefore in this respect the external funds have a very positive influence on
execution of such projects...”; “we took part in SAPARD and at present in IOPRD we will
also execute an investment, and the RDP was a kind of a prelude to those bigger funds,
and in my opinion the RDP was very necessary” — PBS 2005 survey).
In gminas which submitted applications and did not receive funds, one can encounter, for
example, such an opinion: “...I think that it would have been executed on a greater scale
(“if the RDP funds had been available), and as it is now the version which we executed
was a kind of an emergency version”).
Also inhabitants of rural areas, the beneficiaries of different kinds of investment projects
stated that the lack of funds was the main obstacle (80% respondents indicated that
factor), and the poor rural community took the second place as the main barrier for
infrastructure development (19% respondents indicated that factor).
As the survey implies the role of funds from the RDP in infrastructure development is not
questioned. However, the criteria for allocation of such funds raise doubts or maybe
objections mainly in poorer, agricultural gminas. Preference for a greater own contribution
is a “bonus” for wealthier gminas. Therefore it is not the funds, but the criteria in the
opinion of local authorities of some gminas may lead to deepening of disproportions in
the socio-economic level of development of gminas — “...the poorer regions should
receive more of these funds. And this should be officially regulated, and not so that a
person is able or not able to arrange something, because as it goes like this the
difference will become even greater, because usually weaker gminas have weaker, less
experienced people. A better gmina has better people, it pays more money and attracts
better people...” PBS survey 2005.
Survey results give sufficient grounds for concluding that the funds from the RDP have
played an important role in the process of rural infrastructure creation. The financial
support for infrastructure investment projects in rural areas in Poland provided by the
RDP should be regarded as fully grounded. The RDP has operated jointly with other
programs (mainly with SAPARD, PHARE programs), and has enhanced their positive
influence on the process of rural infrastructure creation. From the point of view of its role
in the process of infrastructure creation and the accomplished synergy effect the
Component C should be given a positive assessment.
Evaluation of adequacy of Component C with regard to the beneficiaries' needs
The fact that local government officials indicate the lack of infrastructure as the main
barrier for socio-economic development of gminas (66% of respondents indicated this)
may be an evidence of the role and importance of infrastructure in local development. In
the hierarchy of growth barriers for gminas, after insufficient presence of infrastructure
elements, the lack of funds for investments is mentioned as the factor number two (both
problems are directly interrelated). It should be pointed out that in the opinion of local
governments infrastructure is perceived as a much bigger problem than unemployment
(the percentage indicated was a half of that for infrastructure). This reflects the local
governments' opinion (which we think is right) that infrastructure elements are the main
298
factor which is a prerequisite for improvement of economic situation of gminas, and
hence an improvement in the labor market situation.
An analysis of business persons' demand for infrastructure services was one of the
elements of evaluation of the adequacy of activities carried out within Component C. The
evaluation was conducted from the point of view of the importance of infrastructure in the
development of business operations in rural areas and the role of individual infrastructure
elements in conducting own business operations.
Nearly 70% of business persons think that infrastructure elements have an influence on
business operations, and over a half of this percentage judge this factor as very
important. Only 15% of the surveyed business persons said that the infrastructure-related
factor played no role in development of entrepreneurship.
As far as the weight of individual infrastructure elements is concerned, in the business
persons' opinion availability of a water supply system is the most important factor for
conducting business operations. Based on the percentage of answers indicated by the
respondents, good roads, and next telephone network and sewerage took next places.
The marginal percentage of business persons who indicated organized solid waste
disposal and gas system shows that those elements are not considered as a part of the
necessary package of infrastructure elements.
Table 87.
Role of individual elements of infrastructure in conducting business
operations (business persons' opinions)
Investment type:
Percentage indicated
(priority)
Water supply
35.0
Good roads
28.0
Telephone
18.0
Sewerage
16.0
Organized solid waste disposal
3.0
For representatives of rural business persons (owners of trade firms – 61%, service firms
– 26%, manufacturing or construction firms) in case of particular business ventures
conducted by them the priority of infrastructure elements is basically the same as above.
The presence of a water supply system, good roads, sewerage and telephone network is
regarded as necessary. Less than 50 percent of respondents consider solid waste
disposal as a necessary condition for conducting business operations. Gas supply
system is regarded, by a small percentage of respondents only as a useful element.
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Table 88.
Evaluation of importance of individual elements of infrastructure for
conducting business operations
For conducting business operations the
particular element of infrastructure is:
Type:
Necessary
Useful
Water supply
70.0
26.0
Good roads
68.0
29.0
Sewerage
67.0
26.0
Telephone network
56.0
35.0
Solid waste disposal
48.0
45.5
Gas supply system
1.0
22.0
The low interest of local governments in investment projects concerning solid waste
disposal corresponds to the low position of this element in the hierarchy of importance of
individual elements from the point of view of their role in the development of business
operations expressed by business persons. In the business persons' opinion the
telephone network is an important element of infrastructure. Due to the fact that the
needs here have been satisfied to a relatively high extent and low interest on the part of
gminas, this infrastructure element was not covered by financial support under the RDP.
In the rural business persons' opinion the most important infrastructure tasks to be
executed include mainly roads construction, then sewerage, water supply system, and
solid waste disposal sites as the last element. The hierarchy of individual infrastructure
elements which require further development, proposed by the business persons matches
the requests for individual types of investment projects submitted by gminas, which in our
opinion reflect the biggest deficiencies in infrastructure in rural areas.
Figure 54.
Most important infrastructure projects to be executed in gminas
(percentage indicated by business persons)
70%
60%
50%
40%
30%
20%
10%
0%
roads
construction
sewerage
water supply
telephones
waste disposal
sites
The RDP supported to the greatest extent those infrastructure activities which are of key
importance from the point of view of business operations, and whose level of
development is still unsatisfactory.
300
Survey results give sufficient grounds for a positive assessment of adequacy of activities
undertaken within Component C with regard to the needs of rural business persons. The
financial support provided for those infrastructure elements was a factor contributing to
the improvement of conditions for business operations in rural areas.
Because different groups of beneficiaries could submit different requests for infrastructure
services, the assessment of adequacy of the Project was also conducted from the point
of view of its usefulness for individual groups, and first of all for inhabitants of rural areas.
Among potential and actual beneficiaries of infrastructure services it is the households
which constituted the most numerous group.
The inhabitants of rural areas highly assessed the usefulness of particular infrastructure
investment projects. Nearly 67% of the respondents, regardless of investment type
considered the investment as being very useful, and 20% indicated that it was quite
useful. If we exclude waste disposal sites, then practically among individual beneficiaries
there was no one who would question the usefulness of the investment for a gmina.
Considering individual investment types, if we take the percentage of “very useful”
answers, the usefulness of water supply system development was given the highest
mark, and the lowest mark was given to the organized waste disposal sites. In two cases
out of four all beneficiaries expressed explicit positive opinion about usefulness of a given
investment.
Table 89.
Evaluation of usefulness of infrastructure investment (village
inhabitants)
A particular investment
was:
Very useful
67.0
Quite useful
20.0
Quite useless
2.5
Completely useless
3.7
Hard to tell
6.8
Source: PBS 2005 survey data.
Considering the gminas' needs, the inhabitants regarded construction of waste disposal
sites as least necessary. Only 34% of respondents said that such an investment was very
useful, whereas according to 15% of the respondents the investment was not necessary
at all. No other type of infrastructure had such a low level of social acceptance. With
regard to this issue the opinions of inhabitants and rural business persons are similar. In
our opinion this does not reflect a lack of awareness that waste disposal has to be an
organized activity, but to a large extent this results from considerable needs in other
spheres, which needs are more important from the point of view of improvement of living
conditions for inhabitants of rural areas.
Because the “roads” activity covered both construction and modernization of already
existing roads, we have verified how needs are distributed between these two types of
tasks. In the opinion of the inhabitants of rural areas, the most important needs in this
sphere concern both construction and modernization of roads, however, the distribution
of answers indicates that the needs in the sphere of modernization and repair are greater
than the needs concerning construction of new road sections. The opinions of the
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inhabitants correspond to the actual condition of rural roads in Poland, which first of all
require an improvement of technical parameters.
Table 90.
Most important investment needs concerning rural roads
What are the most important needs concerning
roads in the gmina:
Construction of new road sections
18.2
Modernization and repair of existing roads
39.4
Construction of new roads and repair of existing
roads
41.8
Construction of new roads is not necessary
0.3
Other, please specify
0.3
Total
100.0
Survey results give sufficient grounds for positive assessment of adequacy of the
activities undertaken as part of Component C with regard to the needs of inhabitants of
rural areas. The provision of financial support for these infrastructure elements was the
most important task from the gminas' point of view. The fact that the financing covered
not only construction of new roads but also modernization of already existing rural road
sections should also be judged positively. However, we may wonder here if due to the
very big interest in the three kinds of investments and a very small interest in waste
disposal sites (this is confirmed by the relevant opinions of inhabitants and business
persons) it was at all reasonable to undertake activity in this sphere and whether
concentration of funds and efforts on the three priority activities would be a better option.
Training
The objective of the activity “Training and technical support” executed as part of
Component C in line with the assumptions of the Project was to create alternative
organizational and institutional structures with a view to ensure stable and available
municipal services and introduce market orientation into the process of infrastructure
construction and operation. The training and technical support were intended to be useful
in projection of infrastructure investments.
The adequacy of this activity has been assessed on the basis of the beneficiaries' opinion
about its usefulness in the phase of projection of infrastructure investment, optimum with
regard to financial, economic, social and application preparation aspects. As far as the
evaluation of the training is concerned, local government officials had a very high opinion
of the usefulness of the training conducted as part of Component C. The figure below
shows that no participant assessed the training as quite useless or completely useless.
However, it should be emphasized that 30% of the surveyed gminas declared that they
did not participate in any training as part of Component C (answers: I don't know, I can't
remember or no answer given). As we know the training and technical support covered all
potential beneficiaries. The relatively high share of gminas which did not declare that they
had participated most probably is due to a very large number of various training courses
which are offered to local governments, and also execution of investment projects by
means of funds coming from various sources. Looking back in time, it is difficult at
present to assign the conducted courses of training to particular projects.
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Figure 55.
Evaluation of usefulness of training during execution of investment
projects
60
50
40
%
30
20
10
0
Quite useful
Very useful
Hard to tell
Local government officials who said during the survey that they participated in the training
had a very high opinion of the quality and usefulness of the training (“The program was
very well prepared with regard to the training aspect. It seems to me that the training can
be awarded a “very good” mark. I think that those who wanted, could understand the
issues and will be able to implement this...”; “...very well explained procedure and first of
all the keeping of all that documentation and filling in those documents, I was surprised,
because I take part in many courses of training, and so far I haven't participated in any
other training so well and efficiently conducted as this one. It was very well explained,
indeed.” – PBS 2005 survey).
Only 27% of the surveyed gminas confirmed receiving technical support during execution
of an infrastructure investment within Component C. For further 22% of gminas answers
have not been given. In case of a part of local governments which declared in the survey
that they received technical support, 65% of the respondents said that it was very useful,
35% said that it was useful, so there were no objections concerning the quality of the
technical support. The high percentage of answers indicating that a gmina did not receive
support is due to similar reasons as in case of training under Component C. Some of the
surveyed gminas declared that they did not use the support because they did not need it.
The usefulness of the “training and technical support” activity should be considered by
measuring to what extent the proposed solutions concerning design of infrastructure
investment projects were accepted and implemented by local government units applying
for the RDP funds. The proposed economic model for investment projection has been
used by 34% of the surveyed gminas, 24% of gminas declared that they did not use it
while planning the investment projects, and the remaining cases mean a lack of answer
or no opinion given. Out of the 34% gminas which declared that they used such a model,
only 6 surveyed officials assessed it as useless.
As the needs in the sphere of infrastructure development are enormous and at the same
time the financial capacity of local governments is limited, the issue of selecting an
optimum infrastructure investment to be executed, from the financial, economic and
social point of view becomes a matter of particular importance, and the surveyed local
government officials agree with this opinion.
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The adequacy of the training with regard to the needs of the beneficiaries (gminas)
should be judged very positively, and also the quality of the training should be given a
high mark.
Evaluation of effectiveness of Component C according to the beneficiaries
The local governments have a relatively high opinion of the scope of executed goals in
comparison with the planned ones with respect to the RDP infrastructure investment
projects. In 63% of the surveyed gminas local governments considered that they had
managed to accomplish all planned goals, 32% considered that the planned goals had
been partly accomplished. The percentage of gminas which did not accomplish what they
had planned was marginal and amounted to 2 percent only.
Taking individual activities into consideration, investments in road network are
characterized by highest effectiveness, and investments in sewerage are characterized
by lowest effectiveness. A completed investment is regarded by a local government as a
local success and an incentive to get involved in further activities.
Table 91.
Evaluation of planned investment goals (local governments)
Have all planned goals been
accomplished:
Yes, all planned goals have been
accomplished.
63.0
Yes, the planned goals have been
partly accomplished.
32.0
No
2.0
It's hard to tell.
2.0
TOTAL
100.0
The greatest discrepancy between the planned and accomplished results concerns the
number of created jobs and the final number of service recipients. In local government
officials' opinion the local nature of an investment, and thus its small scale is the main
reason explaining why it has not produced greater business activity, and also the short
time from completion of the investment (local government officials in gminas in which
there were differences between the planned and actual number of jobs knew the rules for
final settlement of the task well and they referred to this). Another factor indicated by the
local government is the bad economic situation of rural population which has been
translated into a smaller than planned number of households using a particular
infrastructure service.
In the survey conducted in households which have become connected to a water supply
system or a sewerage system as part of the RDP, 34 percent of respondents answered
“yes” in both cases to the question “Were there any persons at a given locality who had
the opportunity to become connected to a water supply and sewerage system, but have
not become connected?” Also in case of waste disposal sites the respondents indicated
that a similar situation occurred. Situations revealed in other surveys, in which situations
economic circumstances are a barrier for access to infrastructure services for some social
groups have thus been again confirmed.
304
It should be emphasized that in a number of cases where differences between planned
and actual values occurred, it was not possible to clarify the matter fully in the gminas
during the survey. However, while evaluating the effectiveness of the Project it is
important to find out the reasons for such differences.
The surveys have confirmed that in spite of the physical possibility some inhabitants (for
economic reasons) decide not to use all or a part of the newly available services. One of
the explanations of the difference between the planned and actual water consumption is
the smaller than planned number of end users, and also (when the planned number of
end users has been accomplished) water consumption being smaller than planned.
Nearly 60 percent of surveyed households try to reduce their water consumption, and a
half of them does so mainly due to the high price of water. Some inhabitants declared
that in spite of having been connected to the water supply system they still use water
from a local system (hydrophore) or from a well, mainly for farming-related purposes. In a
few cases the respondents (connected to a water supply system as part of the RDP) said
that the amount exceeded ten buckets of water per day. This amount of water might be
sold potentially. The survey shows that the smaller the water consumption, the higher the
unit costs, and lower investment efficiency. Therefore a projection of infrastructure
investment projects based on actual parameters concerning the number of potential end
users and the volume of consumed water is an important issue. According to local
government officials an opinion (which is right) prevails that “the charges should be
calculated so that they cover the actual costs incurred by the producer. Whether the costs
of water or sewage treatment per cubic meter allow the company to continue operations.
And at the same time they should not be an excessive burden for inhabitants. Normally
this is done in such a way that calculations are made and charges are set accordingly”
(PBS 2005 survey).
The information above shows that the goal of Component C, assumed in the Project,
concerning introduction of market orientation into the process of construction and
operation of rural infrastructure was based on a correct assumption that low cost of
infrastructure services encourages potential beneficiaries to use these facilities (PAD p.
14). These assumptions show that there is a need for a projection of infrastructure
investments, which are adequate to the scale of needs, and also ensure provision of
services of appropriate quality and at prices which match financial possibilities of potential
users. The survey shows that this is an important aspect of rural infrastructure
development, which is accepted by local governments, although the survey results show
that it has not been executed completely. The part of potential end users, which have not
used a given investment at all and a lower than planned water consumption and volume
of discharged sewage may serve as a measure of this lack of efficiency.
Evaluation of usefulness of the Project according to the beneficiaries
The evaluation of the usefulness of the Project included an analysis of the influence of
executed infrastructure investment projects on:
•
growth of business activity,
•
improvement of conditions for business operations,
•
improvement of living conditions of rural population,
•
improvement of health of rural population.
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Influence of infrastructure investment projects on growth of business activity and
improvement of conditions for business operations
The investment analysis was conducted from the point of view of the role of a given
investment as a factor stimulating business activity and its significance in improvement of
conditions for business firm operations.
Generally, the percentage of firms which have been set up as a result of (or arising from)
the launched investment was definitely lower than the percentage of firms for which
setting up of the firm was indifferent with regard to a given investment. On average 20
percent of business persons declared a relationship between coming into existence in a
local economic structure and a given infrastructure investment. There is a significant
difference among individual investment types with respect to this. Investment projects
connected with development of water supply network had the greatest influence on
setting up of business entities, and the projects connected with construction or
modernization of roads had the smallest influence.
On average 41 percent of business persons confirmed that a particular infrastructure
investment had had an impact on operations of a given firm; the water supply system had
the greatest significance, similarly as in case above.
Table 92.
Evaluation of influence of infrastructure investment on establishing
and operating of a firm
The investment concerning the water supply system had influence on:
YES
NO
Establishing of the firm
31.0
69.0
Operations of the firm
55.0
45.0
The investment concerning the sewerage had influence on:
YES
NO
25.0
75.0
34.0
66.0
The investment concerning construction/modernization of a road had influence on:
YES
NO
4.0
96.0
35.0
65.0
The influence of investment projects on business operations was also analyzed by means
of an indicator specifying the percentage of surveyed firms which provided or produced
for the benefit of a given infrastructure investment. 13 percent of surveyed firms declared
a direct or indirect relation with a newly executed investment. Nearly 10 percent of
business persons indicated that the infrastructure investment contributed to an
improvement of the financial standing of their firm and to creation of new income sources
for the firm.
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The percentage of business persons who purchased machines (equipment) for a given
enterprise after the launch of a given infrastructure investment (created with the RDP
funds assistance) in case of individual investment types was as follows:
•
water supply – 24%,
•
roads – 0.0%,
•
sewerage - 16%.
Practically in one in five surveyed firms changes in standard of equipment took place
during execution or after completion of a water supply or sewerage investment.
Investments in a water supply system had the strongest positive influence on
improvement of a firm's equipment, whereas in case of modernization of a road or
construction of a new road such a relationship has not been recorded.
The usefulness of the Project has also been analyzed from the point of view of the
influence of infrastructure investment projects on changes in production scale and
employment in surveyed firms. The analyses of empirical material show that the Project
has resulted in positive changes (to a different extent) in this respect. The highest
percentage of firms indicated that the infrastructure investment projects helped them
survive in the market. This result to some extent reflects the economic standing of rural
firms. For some firms the key problem is not employment growth but simply to survive, i.e.
to continue existence in the market. If thanks to the Project 28 percent of surveyed firms
managed to survive a difficult period, then such a result allows to assess it positively in
this context. An increase in scale of production was recorded in 16 percent of gminas,
and an increased scope of a firm's influence was declared by 14% of surveyed
respondents.
Considering the employment growth which was noted as a result of (due to execution and
launch) a given investment, 9 percent of surveyed firms have recorded changes with
respect to this. In case of 17 percent of firms the execution of a given infrastructure
investment was the determining factor when deciding to locate in a locality where the
investment had been executed.
Table 93.
Influence of infrastructure investment on the scope of operations of
firms
The executed infrastructure investment made
the following contribution:
YES
(Percentage indicated)
Made it possible to increase the scale of
production of the firm
16.0
Made it possible to increase the scope of
influence of the firm
14.0
Employment growth
9.0
Made it possible to survive in the market
28.0
Was the key factor when deciding to locate the
firm at a given place
17.0
Source: PBS 2005 survey data.
In spite of the fact that in business persons' opinion good roads are a key factor in growth
of business operations in rural areas (business persons point out this element as one of
the main problems to be solved in local systems), however, its role in the influence on the
307
scope and scale of the firm, employment growth is smallest among the elements covered
by the RDP financing.
We have also analyzed the usefulness of the Project from the point of view of the
influence of executed facilities on the costs of conducting business operations. The share
of firms for which the executed investment resulted in decreased costs of conducting
business operations was four times higher than the share of firms for which the executed
investment resulted in increased costs. However, it is the business firms for which the
executed investment had no influence on a change of costs of conducting business
operations which prevailed (in different scope depending on the type of activity).
Table 94.
Influence of infrastructure investment on the costs of conducting
business operations
Has the investment resulted in:
Investment type:
Decreased costs
Increased costs
Had no influence on
costs
Water supply
17.0
7.0
76.0
Roads
0.0
2.1
97.2
Sewerage
16.0
2.3
82.0
The percentage of firm owners for whom the costs incurred for provided infrastructure
investment projects were too high was marginal. The executed investment projects more
often generated a decrease in financial burden than an increase.
As far as the influence of infrastructure investment projects on the general economic
situation of a gmina is concerned, from the point of view of local governments such an
influence is noticed to a different extent. In case of suburban gminas, after connection to
a water supply or sewerage system the interest in building lots in rural areas, expressed
mainly by urban population has increased. After infrastructure has been created in a
given area, also interest in recreation lots has increased. In 14 percent of the surveyed
gminas the local governments declared that after execution of an infrastructure
investment new sources of income have appeared. In areas where a particular
infrastructure investment is located local government officials record new (single)
business entities, also the number of accommodation places increases. However, the
respondents express an opinion here that they find it hard to tell to what extent this is due
to the influence of a given investment or the influence of other conditions.
As far as the infrastructure building process is concerned, its influence on economic
development of rural environments was definitely lower than expected. On the basis of
interviews with local government officials we can conclude that in most of cases the
investment-related works were executed by external firms, due to their better financial
standing. However, some signals from local areas confirmed that in terms of reference for
bidders there were provisions concerning a necessity to offer employment in works
connected with infrastructure creation to unemployed persons in a given gmina, most
often in manual jobs (the survey results have provided particular examples confirming
that in some cases this resulted in a permanent employment offer directed to such an
unemployed person).
Also in the farming sector the positive influence of these investments can be seen, which
may be confirmed by opinions of local government officials about the influence of the
308
investment projects on business activity growth — “the activity of inhabitants has
increased, because what we can see now, this connection to a water system, and this
coincides with Poland's accession to the EU, people began to develop farm buildings,
they increase the number of breeding animals, so this has a positive influence”;
“undoubtedly it had, because even those opportunists who at the time of the investment
execution did not want water, at present make endeavours to have water supplied to
them. First of all real life situations proved this. After Poland's accession to the EU, the
EU imposed strict requirements concerning water. Water which is given to cattle has to
have relevant certificates and satisfy relevant standards. And water from dug wells, which
was used by people there, did not meet such requirements. Therefore certainly this has
resulted in higher living standards and standards in farms. Not only humans, but also
animals. Because people can hand over the fruit of their labor and sell further. There is
no problem”... PBS 2005 survey).
The field studies have provided many such specific positive examples of the influence of
an infrastructure investment on different aspects of economic and social life. Due to their
nature we can not make general conclusions based on the “case studies”, nevertheless
they show that some processes have been initiated as a result of the investment projects
and that these projects have (may have) a wide spectrum of influence in different types of
rural areas and different gminas. It is very difficult to assess the real effects of the
influence of infrastructure investment projects, for example due to the fact that the
influence of an investment may be spread over a long period of time.
The usefulness of the Project from the point of view of improvement of conditions for
operation of firms and stimulation of economic activity should be assessed as positive.
Considering the specific selection of firms, the relatively low number of firms, the
percentage of business entities which creation and operation was influenced by the
executed investment should be regarded as high. The executed investment projects (with
the exception of roads) influenced all surveyed aspects of a firm's operation determining
its growth (increased output, employment growth, increased scope of influence, better
equipment, lowered costs of business operations). The infrastructure investment projects
have also resulted in greater investment and tourist attractiveness of some areas (this
was manifested directly by increased demand for building and recreation lots), which in a
longer perspective may result in greater demand for building materials and enhanced
economic activity of local labor force.
Influence of infrastructure investment projects on improvement of living conditions and
health of rural population
In the opinion of both local government officials and inhabitants (beneficiaries) the
infrastructure investment projects executed as part of the RDP had the greatest influence
on improvement of living conditions of the rural population. Nearly 90 percent of local
government officials of gminas participating in the RDP confirmed positive influence of
infrastructure investment projects on living conditions of the rural population. 60 percent
of rural beneficiaries indicated in the first place the living conditions as the sphere where
the influence of the introduced facilities was strongest. The percentage of respondents
who in the first place indicated the improved appearance of villages as a positive result of
the new infrastructure investment (22 percent of inhabitants) was relatively high. 13
percent of respondents indicated improved health situation as the most important
element. It should be emphasized here that in the inhabitants' opinion the strength of
influence on living conditions and health situation was much higher than on improvement
of conditions of business operations and economic activity growth.
309
As far as the assessment of the Project's influence on improvement of financial situation
of rural families is concerned, on the basis of the results of questionnaire surveys we
have not noticed any relationship of this kind. Practically only one respondent declared
that thanks to the investment he/she had gained new sources of income.
The main problem for households not having access to water mains is no possibility to
use various domestic appliances, and poor quality of water taken from other systems,
particularly from wells is mentioned in the second place (“...the fact that people have
water, they are glad because they don't have to worry about sanitary and epidemiological
inspection. They don't need to go with samples from their wells to the sanitary and
epidemiological inspection and pay for them quite significant amounts of money. They
take water from the municipal water supply system, where water is of good quality” – PBS
2005 survey).
After connection to a water supply system in 35 percent of surveyed households more
appliances were introduced which could not be used earlier. In 31 percent of households
the water supply system investment was an impulse for construction and repair of part of
a house (this mainly concerns the bathroom and the kitchen). The majority of work in this
sphere was carried out without using third-party services. However, in a relatively small
number of cases third party contractors were employed.
In case of a sewerage investment 18 percent of households participating in this activity
executed construction or repair in the house (this concerned the bathroom or the kitchen),
of which in 6 cases with involvement of employed labor force. Of course this was a
seasonal employment, but considering the existing great problems in the local market
even ad hoc work can generate measurable benefits.
The survey shows that the Project to a different extent initiated initiatives which may
result in an improvement of the economic situation, and also initiated multiplier effects (for
example increased demand for building materials or repair-related materials). This
indirect influence due to its specific nature is very difficult to diagnose and it is even more
difficult to specify its actual size.
The influence of road investment projects on improvement of living conditions was
assessed as positive by inhabitants of rural areas (taking as the basis the relation
between those who said that the conditions had improved and those who had an opposite
opinion). The percentage of those who said that the investment produced changes was at
a level similar to the percentage of those who said that the road investment had not
generated any effect.
310
Table 95.
Influence of road investment projects on living conditions of rural
population
When the road investment was completed
the living conditions of the family:
Percentage
indicated
Have definitely improved
9.2
Have generally improved
30.3
Have not changed
40.8
Have generally worsened
3.9
It is hard to tell
15.8
TOTAL
100.0
In the opinion of inhabitants of rural areas the road investment projects have not
generally resulted in a smaller number of road accidents. Nearly 70 percent of
respondents said that the investment had no influence on the number of collisions. The
percentage of respondents who said that the number of accidents decreased was
minimum and amounted to 5 percent and was equal to approx. a half of the percentage of
respondents who said that the investment resulted in worsening of the situation in this
sphere.
The distribution of judgements concerning the influence of a road investment on changes
in the number of car damages is very similar. Also in this respect the gathered
information shows that a positive influence of infrastructure investment on a decrease in
the number of car damages has not been observed. Nearly 7 percent of respondents said
that the road investment has produced changes in this respect.
Table 96.
Influence of road investment on the number of road accidents and
car damages
When the road investment was completed:
Number of road
accidents in gmina
Number of car
damages
Has increased
9.7
8.0
Has not changed
68.0
67.0
Has decreased
5.0
6.6
No opinion
17.0
18.4
Total
100.0
100.0
The influence of the road investment on improvement of access within a gmina and
outside a gmina was assessed much more positively. No respondent said that after a
change in roads standard the situation had become worse. The group of persons who
were of the opinion that an improvement of roads standard has not resulted in changes
with regard to access dominated; however 43 percent of beneficiaries noticed an
improvement in access to a locality in their gmina. The analysis shows that after
completion of the investment access to school for children improved most, and access to
a town nearby improved least.
311
Table 97.
Influence of road investment on better spatial access
After completion of the road investment, access:
to a locality in
gmina
to a town nearby
between villages
to school for
children
has improved
43.0
21.0
26.0
60.0
has not changed
47.0
70.0
60.0
18.0
has become
worse
0.0
0.0
0.0
0.0
no opinion
10.0
9.0
14.0
22.0
Total
100.0
100.0
100.0
100.0
18 percent of respondents reported improved access to fields as a result of the
investment, and 37 percent of respondents reported greater safety (especially access for
an ambulance). The very small number of answers concerning the influence of a road
investment on road traffic intensity does not allow to evaluate this aspect. Only in 3
gminas the provided information was based on measurements, whereas in other gminas
they were based only on estimates. In some gminas local government officials explained
that they did not carry out such analyses, because, as they stated “they do not have time
for this”.
It should be stated once more here that for evaluation of the Project it is necessary to
select appropriate indicators which are registered day by day, and systematic verification
and updating of the indicators should be a duty of the gminas participating in the Project.
After completion of an investment a gmina firstly is not interested, and secondly not
obligated to provide this kind of information. However, this information can be useful while
constructing other projects, and especially while setting criteria for funds allocation and
methods of settlement of the generated effects.
The usefulness of the Project from the point of view of influence of infrastructure
investment projects on improvement of living and health conditions should be assessed
as positive. The investments in water supply systems had the greatest influence
(broadest scope of effects) on improvement of living conditions.
Evaluation of burden arising from installation and operation costs
The empirical research has confirmed that installation and operation costs are for some
social groups a barrier for access to infrastructure services. In local government officials'
opinion unemployed persons are in the least privileged position (77% indicated this), and
farmers come next (27% indicated this).
Based on the gathered data the cost of installation of a water supply system or sewerage
was reported as a burden by nearly 60% of respondents (recipients of infrastructure
services created as part of the RDP). 26% of respondents (connected to a water supply
system or sewerage) said that the cost of the installation was very high for their budgets.
Practically only one in five families did not regard the cost connected with installation of a
water supply system or sewerage as a financial burden. There are no significant
differences in opinions about this matter between recipients of services created as part of
the RDP and those created with assistance from other projects.
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Table 98.
Evaluation of burden arising from installation of a water supply
system and sewerage (inhabitants' opinions)
Burden arising from costs of installation
of a water supply system or sewerage:
Very high
26.0
Generally high
33.0
Generally low
20.0
Very low
3.0
No burden at all for us
18.0
TOTAL
100.0
The distribution of answers to the question below shows that charges for water and
sewage are a significant burden for the households. This problem affects communities
which use a water supply system or sewerage built as part of the RDP and also those
using services of systems created in the same period, but with assistance from other
projects. In gminas participating in the RDP exactly a half of the surveyed local
government officials said that the cost of water and sewage is a significant burden for
rural population, whereas in gminas not participating in the RDP the percentage of
respondents confirming such a situation was higher by 18 percentage points. For 44
percent of households water bills are a significant burden, whereas for 65 percent of
households the costs of water bills and sewage bills are regarded as high. 62 percent of
surveyed inhabitants of rural areas think that the prices of water and sewage are too high
with regard to the economic situation of the rural population.
Table 99.
Evaluation of charges for water and sewage (inhabitants' opinions)
Are charges for water and sewage a
significant financial burden for inhabitants:
Answer: (% indicated)
YES
NO
I DON'T
KNOW
Gminas participating in the RDP
50.0
37.5
12.5
Gminas not participating in the RDP
68.0
28.0
4.0
According to the assumptions of the Project the charges for infrastructure services
created as part of the RDP should not exceed 3-5% of total disposable income of a
household. The empirical research shows that these assumptions of the Project have
practically been accomplished. The average income of a family in a gmina where an
infrastructure investment was executed amounted to PLN 1428, which means that
according to the assumptions of the Project the charge should not exceed PLN 71. Based
on the analysis of gathered data in 97% of the surveyed households the monthly charge
for water does not exceed this amount. Only in 3% of cases the burden arising from this
source was greater than planned. Based on the table below for 63% of surveyed
households the charges for water do not exceed on average PLN 50 per month.
313
Table 100.
Monthly charges for water*
Monthly charge for water
Percentage
indicated
up to PLN 10
18.2
PLN 11 – 30
63.3
PLN 31 – 50
11.5
PLN 51 and more
7.0
of which more than PLN 71
3.0
Total
100.0
* only those households that gave an answer have been taken into account
Source: PBS 2005 survey results (only the households which gave answers are included).
Although average burden arising from charges for public utility services does not
generally exceed the assumed threshold, sometimes it happens that inhabitants of rural
areas do not pay in due time. 10% of surveyed households said that they had problems
to make water bill payments on time, and in case of water bills and sewage bills 30 %
said so. Based on the results of the survey covering local government officials only in one
of three surveyed gminas regular collection of receivables for public utility services is not
a problem.
Table 101.
Opinions concerning main criterion for setting prices of public
utility services
Main criterion for setting prices of
public utility services:
Gminas not
Gminas participating in
participating in the RDP
the RDP
Economic aspects
53.0
52.1
Social aspects
41.0
33.3
Both economic and social aspects
3.1
10.4
It's hard to tell
3.1
4.2
100.0
100.0
Total
Both in gminas participating in the RDP and gminas not participating in the Project the
local governments practically to the same degree indicate economic aspects while setting
criteria for charges for public utility services. The percentage of supporters of economic
criteria, and thus at the same time market solutions in the process of operation of
municipal infrastructure in both cases is greater than 50%. However, the percentage of
those who think that while setting charges for services one should first of all consider
social aspects is quite significant.
Some local government officials think that one should subsidize infrastructure investment
projects due to firstly bad economic situation of rural population (an element of equal
opportunities policy) and secondly due to economic benefits which can be obtained from
such a solution in longer perspective. The argument that the price of discharged sewage
should be subsidized (for a certain period of time) so as to prevent uncontrolled discharge
of sewage to rivers or fields (which is a real problem if development of water supply
system is fast and significantly precedes development of sewerage) is convincing. From
the point of view of “repair” of the natural environment as a result of such actions,
314
subsidizing public utility services may prove to be a less expensive solution in a longer
time perspective.
To sum up, both installation and operation costs of infrastructure services are a
significant burden and act as a barrier for access in case of some social groups.
Therefore assuming a projection of investments in the Project in accordance with the
needs and possibilities of rural population and introducing special “training and technical
support” activities so as to implement this should be regarded as reasonable.
5.3 Summary
5.3.1
Analysis of Component C benefits
As a result of realizing Component C a number of investment projects have been
executed which have contributed to an improvement of situation with regard to
infrastructure facilities in the areas covered by the Project.
The measurable effects of Component C execution include:
•
923 km of water supply systems,
•
14 water treatment plants (three new plants, and the remaining ones have been
modernized),
•
1037 km of sewerage,
•
236 sewage treatment plants (of which 213 in farms),
•
4 solid waste disposal sites,
•
734 km of roads (modernized and built).
As a result of execution of these investment projects:
•
the number of users connected to a water supply system has increased by 13.3
thousand,
•
the number of users connected to sewerage has increased by 22.3 thousand,
•
the number of persons using organized waste disposal sites has increased by 23.1
thousand.
The scale of demand for infrastructure investment projects measured by the number of
submitted applications and their bill of quantities value (five times higher than the value of
subsidies), and also the high level of demand for such services in other projects (for
example SAPARD) show that generally without the Project's contribution the length of
water supply network and sewerage, and the number of: service connections, sewage
treatment plants, waste disposal sites, built and modernized roads would be lower by the
measurable effects generated by the Project. The products created within Component C
can be regarded as net effect of the Project.
The countable benefits obtained as a result of Component C execution include also new
jobs. The effects above are translated to economic benefits such as a reduced amount of
315
unemployment benefits paid out, and increased state budget income arising from income
tax and turnover tax.
As a result of infrastructure investments execution 5940 new jobs have been created in
rural areas. The created jobs were to a different degree generated by different activities.
Based on the chart below the “roads construction and modernization” activity had the
greatest share with regard to this. 3704 jobs (62.4%) have been created as part of the
RDP as a result of development of the road network.
Figure 56.
Breakdown of new jobs created in Component C by activity
water supply
sewerage
roads
solid waste
Source: own analysis based on PCU report.
The method applied in the Chapter IV.6 – “Analysis of socio-economic effects of the
RDP” has been used for evaluation of benefits for the State budget arising from creation
of jobs. In accordance with calculations presented in the first part of this chapter, the
value of budget benefits arising from creation of one job for an unemployed person, for
the 2003 year data, was between PLN 4 582 and PLN 11 852 per year, depending on the
remuneration of the unemployed person.
Assuming that creation of new jobs results in a corresponding decrease in the number of
unemployed persons we obtain the level of State budget benefits arising from creation of
5940 jobs as a result of execution of Component C of the RDP. This benefit was
between PLN 27.21 million and PLN 70.40 million, depending on the average
remuneration received by an unemployed person taking a job.
Among the benefits of infrastructure investments contributing to a greater attractiveness
(in broad sense) of a gmina we can include greater tax income for the gmina (if there is
an inflow of people, who are often more affluent), tax charges arising from purchase of
building or recreation lots. These are measurable benefits for a gmina's budget, which are
recorded by local government officials in their gminas. However, it is very difficult to
estimate them, especially because the indirect positive influence of infrastructure
investment projects may be progressive as time goes by. This influence also generates
indirect effects – greater building activity means greater demand for local labor force and
building materials. Thus further income for the budget is generated. The opinions above
are not imaginary but are based on results of empirical research providing specific
examples showing that the process of positive influence and multiplier effects (in different
places and with varied intensity) has been initiated.
The measurable effects arise not only from construction but also from modernization of
infrastructure equipment and facilities, which is often connected with a reduction in
316
energy consumption and losses level (local governments' opinion), which is translated to
a lower price of a given service and better collection of receivables.
The activities within Component C have also produced many effects which can not be
expressed in monetary units. The conducted statistical analysis shows that the Project
has contributed to a decrease in disproportion between the number of water mains
service connections and sewerage service connections. This problem has very
unfavourable consequences from the point of view of health of rural population and
quality of the environment (which also is directly connected with the former element). Due
to the contribution (number of water mains service connections) of the Project the
disproportion in this sphere has been reduced by 10% for the whole country, and by 30%
for gminas participating in the RDP. This fact is especially worth emphasizing, particularly
in the situation of a deepening disproportion between the number of water mains service
connections and sewerage service connections. As a result of this situation the natural
environment and health of the rural population are increasingly threatened. It is not
possible to express the actual effect accomplished in this sphere in monetary units. The
weight of the effect is big and we assume that the positive effect of these changes will
last for a long time.
The survey implies that execution of infrastructure investment projects has contributed
both to an improvement in living and work conditions (also in farms) and conditions for
business.
From the point of view of improvement of living conditions of rural population the most
important accomplishments include:
•
conditions facilitating work in a household (a significant improvement in the
standard/quantity of durable goods in households has been recorded);
•
improved technical condition of dwellings (repair, modernization);
•
better access (first of all clearly indicated improvement of transport for children to
school);
•
improved appearance of villages.
As a result of execution of Component C different activities to a different extent positively
influenced the conditions for conducting business operations. The survey also confirms
that the infrastructure investment projects had an influence on growth of business activity
of the rural population which has been reflected for example by increased number of
accommodation places in agritourism farms. The beneficiaries in interviews emphasized
the role of the Project as a factor which stimulates local governments to undertake activity
and also as a factor conducive to greater activity of the rural population.
5.3.2
Long term influence of Component C
The process of rural infrastructure creation in Poland has a specific nature arising from
considerable backwardness and great investment needs, and also from a favourable
situation as far as external sources of funds are concerned. As a result of these
circumstances the process of infrastructure development (and also modernization) is
taking place at a fast pace, which improves the complementarity and complexity of
infrastructure in gminas. This allows us to make a conclusion that the effect of the Project
in this Component will be long-lasting and in longer perspective should generate greater
external effects than at present. Based on the results of field investigations and also an
analysis of spatial distribution of participants (gminas), for example in SAPARD, we can
317
expect that the scale of multiplier effects for the investment projects and synergy effects
with other projects will be growing.
It should be added that 93% of gminas participating in the RDP in Component C at the
same time participated in SAPARD. The results of the survey covering local government
officials may convince us to share the opinion that the effect of Component C will last for
a long time. The table below shows that the percentage of those surveyed local
government officials who by participation in the RDP were encouraged to further
investment activity was dominant.
Table 102.
Influence of participation in the RDP on subsequent investment
activities
Has preparation of the application and the project
under the RDP:
Percentage
indicated
encouraged you to continue investment activities
81.6
discouraged you to continue investment activities
1.3
neither encouraged nor discouraged
17.1
TOTAL
100.0
Source: Own surveys.
The positive effects of the Project which will be noticeable over longer time include
changed attitude of beneficiaries (inhabitants) to execution of next investment projects
and changes in living conditions standards. The positive effect, which in future will be
translated to many new elements, is certainly a greater awareness of inhabitants and
local governments, which was emphasized by the respondents with respect to the
necessity to pay the costs of infrastructure services, pay the costs connected with
improved living conditions and improved quality of natural environment, and that these
aspects are important not only from the point of view of living conditions but also from the
point of view of economic growth opportunities for the whole gmina.
5.3.3
Activities executed as part of Component C
The execution of the Component began with setting the dates for submitting applications
and dates for training of staff of institutions implementing the Project in the sphere of
filling in the applications (end of the year 2000). The RSCs relatively quickly drew up
ranking lists (from March 2001 to June 2001). Depending on voivodship the lists were
drawn up for the whole Component or for individual types of infrastructure. At the same
time a model agreement with beneficiaries concerning financing was drawn up (April
2001) and training concerning preparation of applications were conducted. Due to the
considerable interest in Component C expressed by VPIUs, local offices of ARMA,
gminas and powiats the PCU provided timely detailed answers to questions concerning
the rules for Component C execution (the answers to the questions were placed in web
pages, information concerning implementation of Component C was also published in the
national local governments weekly “Wspólnota”.)
318
Figure 57.
Basic tasks of Component C – implementation timing
Source: Consultant’s own analyses based on Interim Reports of Program Management, PCU
The process of submitting applications for funds from the RDP designed for infrastructure
investments ended in the second quarter of 2001. The local governments submitted 2077
applications, of which 14.1% were verified negatively (most often due to not delivering
required enclosures in due time), and another 4.9% (positively verified) were rejected due
to for example obtained financing from other projects. Finally 476 applications (which
constituted 28.3% of the total number of applications) were approved for financing. The
value of submitted applications exceeded five times the amount envisaged for
Component C execution. The chart below shows that road-related applications prevailed
among both submitted and approved applications.
Figure 58.
Submitted and approved applications breakdown
Road
S e w e ra g e
W ate r s .
S o lid w a s te dis p os al
100
%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
S u bm itte d 2 0 0 1
A p p ro ve d 2 0 0 1
A c tu ally e xe c u te d 2 0 0 4
Source: PCU quarterly reports.
The first agreements for financing were signed in the second quarter of 2001. The first
contracts with investment contractors were concluded in July, and the works began in
August 2001. The execution of first investment projects began in September 2001. By the
end of the year invoices amounting to 36.9% of the value of investment projects under
the signed contracts were submitted. As of the end of the year 2001 127 investment
319
projects were completed (of which road projects accounted for 81%, and water supply
system projects accounted for 12.6%). In 2002 further progress in investment execution
was recorded. Next 301 infrastructure investment projects were completed (of which road
projects accounted for nearly 59%, sewerage projects accounted for 24.3% and water
supply system projects accounted for 16.8%). The year 2002 was the year in which the
intensification of activities measured by the quantity and percentage of completed
projects was the highest (nearly 42%). Due to the accumulated volume of works and
consequently the big number of applications to repay invoices submitted at the end of
2001, in the first quarter of 2002 there had been delays in transfer of subsidies from the
RDP to gminas and powiats. The ministry of Agriculture and Rural Development together
with the PCU made a considerable endeavour to improve the process in next months.
The signing of financing agreements and concluding of investment contracts was
continued in 2003 and 2004. The distribution of concluded and executed contracts in time
is presented in the table below.
Table 103.
The number of signed and completed contracts in the years 20012004
As of year end:
Signed contracts
Completed contracts
Number
Percentage
Number
Percentage
2001
536
74.1
127
17.6
2002
585
80.9
428
59.2
2003
691
95.6
666
92.1
2004
723
100.0
693
95.9
Source: Own calculations based on PCU quarterly reports.
Based on the table above the number of finally signed contracts in comparison with the
number for the second quarter of 2001 increased considerably. Already in the fourth
quarter of 2001 the first savings resulting from the first bidding procedures allowed to
execute projects which were ranked lower in the ranking lists; this process continued
throughout the whole Project. As a result of obtained savings after the settled subsequent
bidding procedures the number of projects approved by RSC for financing under the RDP
increased until the end of 2004 by 247 (i.e. by 52% in comparison with the initial number,
which was 476 in the second quarter of 2001). In the first quarter of 2003 the
zachodniopomorskie voivodship made a decision to allow submitting new applications for
financing investment projects in Component C, because all items in the ranking list from
the previous selection procedure had already been used.
In 2003 the execution of Component C had virtually been completed. What was still to be
made were only final payments and investment projects being at their final stages, close
to completion. The execution of next 238 investment projects was completed. Out of the
total number of 691 signed contracts, 666 investment projects (i.e. 96.4% of all planned)
were completed as of the end of 2003, of which road projects accounted for nearly 57%,
sewerage projects accounted for 28.4%, and water supply system projects accounted for
14.1%. The last contracts were signed in September 2004. The unused funds were
moved by many voivodships to investment projects in Sub-Component B2. In 2004 the
physical execution of investment projects in Component C was completed. The
settlement and closing of all contracts is planned to take place until March 2005. In
Component C in total 723 contracts totaling approx. PLN 471 million were concluded until
the end of December 2004, and execution of 693 contracts was completed.
320
Table 104.
Contracts in Component C by investment type and execution period
Roads
Sewerage
Water supply
Solid waste
As of
year end
I
II
I
II
I
II
I
II
2001
68.5
24.1
80.4
3.1
84.5
17.6
100.0
50.0
2002
74.1
57.9
90.7
53.6
90.7
74.2
100.0
100.0
2003
93.2
88.6
99.5
97.4
97.9
96.9
100.0
100.0
2004
100.0
93.7
100.0
99.5
100.0
97.9
100.0
100.0
Column I - signed contracts
Column II - completed contracts
Source: Own calculations based on PCU quarterly reports.
Based on the table above as of the end of 2004 the process of construction of water
supply systems was most advanced and nearest completion. Only 30 contracts remained
to be completed (4.1% of the total number), of which 27 contracts concerned road
investment projects.
Training
In November 2001 an agreement for conducting training concerning execution of
infrastructure investment projects for local government officials was signed with Research
Triangle Institute (RTI) company. The company without delay prepared training materials
and in December 2001 conducted a pilot training. However, the materials did not gain
acceptance of the project team. The necessity to correct the materials resulted in the
delayed start of the training. The materials were approved in April 2002, in May a pilot
training was conducted, and the training proper began in June 2002. The training ended
in March 2003. The report on the progress of training was accepted in the middle of 2003.
Evaluation of activities by the beneficiaries
Taking the results of the survey concerning opinions of beneficiaries about operation of
the Project as the basis for the evaluation, the main objection with regard to the Project,
which is evidenced by the highest percentage of respondents' answers, concerns the too
long time of waiting for the money. In the interviews often an objection occurred that the
incurred costs refund option is a serious problem for many gminas. There were some
suggestions for bridging projects (without specifying the form), giving gminas an
opportunity to endure the period until Project funds are received. This is reflected by the
relatively high percentage of indicated answers “financial assembly” as an important
problem with regard to participation in the RDP (we think that this is also a problem in
case of other support projects). The percentage of answers indicating the too low level of
investment financing was at a similar level. However, looking back in time the local
government officials stated that the necessity to provide own contribution may be a
serious barrier for some gminas but for most of gminas this is a strong impulse to act and
mobilize.
The beneficiaries also raised objections with regard to the long period between submitting
an application and its acceptance and approval for execution. Such situations may lead
for example to expiry of required permits and the necessity to follow again the whole
procedure for obtaining them (the survey shows that such situations did occur). Some
gminas stated that they had applied for money to be taken from many other sources;
some gminas, however, adopted a strategy to wait for those particular the RDP funds.
321
The obtained distribution of beneficiaries' answers classifying the main problems of the
RDP shows that the assistance in preparing the applications can be evaluated positively.
The assistance in this respect was highly appreciated. The contribution of the Project (we
mention only Component C here) to the process of improving the institutional
environment supporting the development of rural areas can be evaluated very positively
with regard to this aspect.
Table 105.
Biggest problems with obtaining funds
Biggest problems with obtaining funds from the RDP
Percentage
indicated
Finding information about such funds
9.3
Preparation of application
21.3
Not clear instructions for preparing an application
10.7
Complicated bidding procedures
13.3
Financial assembly, so as to ensure funds for investment
project execution
26.7
Problems with assistance to prepare an application
4.0
Long time to wait for the funds
33.3
Too low level of investment financing
26.7
There was nothing difficult
5.3
Other
2.7
TOTAL
100.0
Source: PBS 2005 survey.
The beneficiaries also questioned the sense of the reports, especially the frequency of
reports and the requirement to submit reports even if nothing changed. (“The issues
connected with reporting might be the only problem, because this is a kind of a novelty,
monthly material and financial reports etc., it was necessary to adhere to the time limits.
Observing those time limits was a problem”.) The beneficiaries did not raise any serious
objections with regard to the “level of bureaucracy” (“the bureaucracy was at a standard
level; in other support projects the bureaucracy was more developed. Here we mean the
number of enclosures and the volume of applications etc., and in this project this was
generally fine” – PBS 2005 survey.
The opinions of beneficiaries given below (and many more similar opinions can be found
in the gathered survey materials) can be the best recommendation for the Project – “I
would be glad to have again something like the RDP from the World Bank. This is really
money to take...”; “This was a really well prepared project. It's a pity that it's almost
over...” – PBS 2005 survey.
5.3.4
Conclusions and recommendations for the future
Conclusions
The goals and activities of Component C were adequate to the scale of problems arising
from the condition of the rural infrastructure. The very low standard of infrastructure in
rural areas (taking rural areas in the EU countries and urban areas in Poland as
reference) and the great geographical imbalances fully justified the financial support for
infrastructure under the RDP.
322
The Project was executed in all 16 voivodships of Poland, which we judge as a positive
fact. We regard the strategy of common participation (i.e. of all gminas) in Component C
as the right one, first of all due to the possibility to select optimum investment projects in
the whole Poland for financing. In the situation when funds are limited, this issue is of key
importance. The earlier project supporting infrastructure development (World Bank's loan
ASAL-300).
The number of applications (and also their value) which were received from individual
voivodships was correlated with the infrastructure situation; we had an uncomplicated
relationship – the lower the infrastructure level, the bigger the demand for investment
financing. The biggest number of beneficiaries was located in the following voivodships:
świętokrzyskie, and next wielkopolskie, małopolskie, mazowieckie and kujawskopomorskie. The smallest number of beneficiaries was in the following voivodships:
śląskie, opolskie, dolnośląskie, lubuskie (apart from the lubuskie voivodship these are
voivodships with a relatively most favourable situation with regard to technical
infrastructure). Rural gminas prevailed (they accounted for 60%) among the beneficiaries,
and they were the most numerous potential group.
The quantitative achievements of Component C can be assessed as satisfactory in
comparison with expected results, although the obtained effects are different for
individual activities, and also the structure of discrepancies is varied. As a result of the
completion of investment projects over 13.3 thousand water mains service connections,
and 22.3 thousand sewerage service connections have been created, and also 4 waste
disposal sites (used by 23.1 thousand beneficiaries) and 236 sewage treatment plants (of
which 213 in farms) have been built. The total number of recipients of different types of
services created as part of the RDP is approx. 60 thousand households and various
entities. As a result of the executed activities 5 940 new jobs have been created, which is
26% of the target (i.e. planned) number of jobs. The increase in the length of water
supply systems built under the Project was proportional to general effects accomplished
in the whole Poland during the RDP, and the increase in the number of new users was a
little higher. Nearly 90% of new connections to water supply systems in the group of
gminas participating in the Project resulted from investment projects under the RDP. In
comparison with gminas not participating in the Project (average value for the group) the
rate of growth of water mains service connections was twice higher than in the group of
not participating gminas.
The increase in the length of water supply systems and in the number of new users
created as part of the Project was higher than effects accomplished in the whole Poland
in the years of the RDP duration (considering proportions of participation with regard to
the accomplished effect). The percentage of service connections created in the group of
gminas participating in the Project was 67% of the total increase for the whole group of
gminas. The rate of growth in this respect in comparison with the group of gminas not
participating in the RDP was higher by 30%.
The influence of activities undertaken under the Project on changes in disproportions
between the number of water mains service connections and sewerage service
connections was an important element of evaluation of the RDP. The conducted analysis
shows that the Project's activities contributed to a decrease in the difference of water
mains service connections and sewerage service connections for the whole Poland, and
therefore the Project had an influence on improvement of the water supply and sewerage
facilities, and so indirectly had influence on improved living conditions of the rural
population. Without the Project's contribution the disproportion in this respect would be
higher by 10.5% than the actual one (for Poland as a whole).
323
The fact that the disproportion in this respect in the group of gminas covered by the RDP
decreased by 30% is particularly worth emphasizing. This means that without the
participation of the Project's products the difference between the number of water mains
service connections and sewerage service connections would be greater by 40% in
comparison with the difference in 2000. We emphasize especially the contribution of the
Project to an improvement of conditions in this sphere, because based on conducted
analyses the situation in this sphere is very serious, and in some regions we might say
that it is alarming. The local governments are especially worried about the quality and
effectiveness of local sewage collection systems which to a large extent with regard to
utility are a kind of “mock” elements. This is firstly related to the low level of awareness of
the rural population, and secondly related to the high costs of maintenance of these local
systems. In case of this activity the costs connected with sewage discharged by
households decreased.
The varied level of subsidies applied in Component C for individual activities can also be
regarded as fully justified. Assigning a “bonus” to the “sewerage” activity in the form of a
higher subsidy than in case of the “water supply” activity in consideration of the problems
above was a correct decision. Maybe these criteria to a certain extent contributed to
obtaining a positive effect of the improved ratio between the number of water mains
service connections and sewerage service connections.
In Component C four activities were executed; the interest in one of them concerning
organized (waste) management was very small. Perhaps in this case it would be better
not to initiate activity in this sphere and rather to concentrate the funds on more urgent
needs and development priorities of gminas, which are reflected by the revealed demand
for individual types of activity. In case of the three remaining activities their adequacy with
regard to the beneficiaries' needs and their usefulness (which in this case also refers to
the waste disposal activity) should be judged as positive.
The survey covering local government officials shows that without financial support
provided by the RDP it would not be possible to execute nearly two thirds of the
infrastructure investment projects in accordance with the plans concerning the scale of
the venture and the completion date. Lack of funds from the RDP would mainly result in
delays in execution, which in many cases may mean (as indicated by the self-government
officials) an increase in investment costs.
In gminas which did not receive financial support from the RDP 23% of the planned
investment projects have not been executed at all. Nearly 60% of the executed
investment projects were delayed due to insufficient funds available, and one in three
investment projects has been executed on a smaller scale.
The interviews conducted with persons (gminas offices employees) in charge of the
infrastructure investment projects execution show that the RDP funds received by a
gmina, even in case of investment projects covered by funds from other sources, did play
a significant role in infrastructure development in the gmina, because the RDP funds
gave an opportunity to carry out several investment projects concurrently, which definitely
speeded up the process of infrastructure creation. The Project was carried out in
cooperation with other projects (mainly with the program SAPARD, PHARE), and
enhanced their positive influence on the rural infrastructure development process. A
synergy effect has occurred between the Component C and other projects (other sources
of funds for rural infrastructure).
324
The usefulness of the completed investment projects has been very highly assessed by
beneficiaries. The effectiveness of execution of the goals assumed in Component C has
been assessed as positive. The Project has contributed to an improvement of situation in
the sphere of rural infrastructure and has enhanced the process of introduction of market
orientation in projection and construction of infrastructure investment projects.
In the light of the results of the surveys (questionnaires and interviews) and overall
analysis of the gathered opinions the external effects accomplished as a result of
execution of investment projects as part of Component C can be judged very positively.
The infrastructure investment projects have contributed to an improvement in the living
conditions of the rural population (including health) and conditions for conducting
business operations.
The executed investment projects more often generated a decrease in financial burden
for firms than an increase. Practically in one in five surveyed firms the standard of
equipment used by a firm has improved. The investments in water supply systems had
the strongest positive influence on improvement of standard of equipment in firms,
whereas in case of a modernization or construction of a new road such a relationship has
not been recorded.
The fact that the infrastructure investment projects contributed to an increase in the scale
of production in 16% of surveyed firms may also have an influence on the positive
assessment of Component C; 14% of respondents said that the firm's scope of influence
increased, in case of 13% of respondents employment increased in connection with a
given investment, and thanks to the Project 28% of the surveyed firms managed to
survive a hard time.
As a result of the executed projects the investment attractiveness of gminas has
increased, which is reflected directly by a greater interest in purchase of building lots and
recreation lots.
A longer time is needed to fully evaluate to what extent the Component C has influenced
the growth of non-agriculture employment in rural areas. The survey shows that the
investment projects have contributed to a different extent to the growth of economic
activity of the rural population, however, it is not possible to specify actual volume of the
activity measured by the number of entities and new jobs.
The Component C has contributed to the greatest extent to the improvement in living
conditions. The infrastructure investment projects made it possible to achieve an
improvement in the standard of durable goods in households and an improvement in
technical standard of dwellings. They have also contributed to an improvement in health
of the rural population and appearance of villages and also social activity of the rural
population.
The very good cooperation with ARMA Regional Office and VPIUs in the opinion of local
government officials, mainly with regard to competence of the staff and their usefulness in
practical aspects in application preparation stage and project execution has brought
about acquired experience resulting in greater activity of gminas in execution of
investment projects using other funds from support funds sources. The Project and its
high quality structure (this means the cooperating units) has contributed to strengthening
of the process of formation of new “bodies”, i.e. teams of persons who specialize in
projects implementation in local governments.
325
The main objections raised with regard to the Project include too long period of waiting for
the money and the long time between submitting an application and its acceptance and
approval for execution. The beneficiaries also questioned the sense of the reports,
especially the frequency of reports and the requirement to submit reports even if nothing
changed.
A complete novelty of the Project was the training prepared by RTI with the use of on-line
Web sites in the area of infrastructure investments in rural gminas. It was a very useful
form of continuing the previously conducted training enabling verification and refreshing
of the acquired knowledge.
The comparison of benefits generated by Component C with costs is highly satisfactory.
Recommendations for the future
It is worth to improve the existing institutional structures so as speed up the infrastructure
project execution (due to its specific character) at each stage. The issue meant here is
the time between submitting an application and the decision whether to approve the
application.
It is also very important to reduce the time needed to wait for the money; if the time is too
long, this has a number of adverse consequences for gminas.
The conducted analyses show that perhaps it is worth considering once more whether it
is better to support to a greater extent than in this Project the activities connected with
sewerage construction and those activities in which sewerage and water supply systems
are combined.
It is very important to support first of all the investment projects which generate the
biggest number of jobs; here the criteria and first of all certain guarantees that the
number of jobs is not a mere empty annotation placed in an application should be drawn
up thoughtfully.
Perhaps a support for investment projects having a broader scope of influence (greater
number of recipients, lower cost of service) would be a more effective option and perhaps
it would be worth to invent new methods to stimulate activity of gminas to get involved
jointly in investment activities, where such activities are possible and reasonable.
5.4 Intergmina associations
5.4.1
Survey basis
The survey was conducted by PBS in March 2005 using a layer and random sample of
100 persons who were gmina offices officials covered by the RDP.
In addition, 24 depth interviews were conducted with gmina and powiat officials involved
in execution of the RDP investment projects (C 29 tool).
5.4.2
Results
In the questionnaire 63% of persons (i.e. 51 out of 81 persons), who answered the
question: Do you know that intergmina associations could apply for subsidies for
infrastructure investment projects under the RDP? gave a 'Yes' answer.
326
Only six of them said that “while trying to obtain funds from the RDP we, as the gmina,
established intergmina associations or the gmina was a member of such an association
of gminas”.
45 of remaining persons (i.e. those who as gminas officials knew about the possibility of
establishing supragmina associations, but did not participate in them) explained by
selecting appropriate answers the reasons for lack of such associations, namely:
•
no such need - 44%,
•
specific character of the task (local project) – 27%,
•
lack of joint goals – 22%,
•
other reasons – 13%.
Note: the total exceeds 100%, because giving more than one answer was allowed.
Six officials from gminas which participated in supragmina associations mentioned the
following initiators/reasons for such associations:
•
the Project itself – 2 persons (33%),
•
other gmina – 1 person (16.7%),
•
other situation – 3 persons (50%).
The results show that there are few initiatives to establish supragmina associations in
order to obtain benefits arising from economy of scale or obtain a sufficient critical mass
with a view to implement infrastructure investment projects. The lack of such needs or
lack of awareness about such needs or perhaps potential benefits arising from
establishing supragmina associations seems to be the main reason.
In order to better understand this phenomenon a number of questions were asked in indepth interviews conducted during talks with gminas officials in charge of infrastructure
investment projects (tool no. 29).
Nearly all respondents did not feel a strong need to establish supragmina associations,
and they regarded infrastructure investment projects as their local affair.
They also did not make attempts to establish such associations due to fears connected
with organizational and settlement-related problems during the investment and after its
completion. The supposed inborn individualism of Polish people was even mentioned as
the reason, and the “swallows say that partnerships are bad” proverb was quoted to
confirm the thesis. It was also stated in some cases that the “racing and unhealthy
competition” among gminas was the reason.
No specific incentives (preferences) were noticed in the Project for organizations to
combine so as to establish associations, but some interlocutors said that such
preferences existed in other projects, especially EU ones, where it is easier to obtain
financing for joint projects. According to several interlocutors this even is a kind of a trend
in case of EU projects.
327
As a result, in case of other projects ISPA, LIDER or IOPRD such initiatives were
undertaken. In other projects the high investment cost threshold, exceeding the
possibilities of a single gmina and a greater chance of acceptance of a joint project, or the
minimum material scale of an investment, for example the number of inhabitants using it
was the reason for establishing supragmina associations.
Creating joint projects might be encouraged by awarding additional points for a
supragmina character of a project (such additional points occur for example in IOPRD).
Also a higher percentage of funds allocated to an investment than in case of a single
gmina would be an important incentive for gminas to combine and establish associations
(many interlocutors emphasized this).
5.4.3
Conclusions
Joint supragmina projects under the RDP concerning infrastructure investment projects
were very rare, and the reasons were as follows:
•
gminas did not feel the need for such activity,
•
according to the respondents the incentives (such as additional points for
applications, lower required own contribution in financing) for such initiatives were not
sufficient,
•
gminas were afraid of organizational and accounts settlement-related problems,
•
gminas compete one against another.
However, the experience gained from other projects shows that such initiatives are
undertaken if investment projects due to their very nature are of supragmina character or
in the projects there are explicit provisions enforcing such associations (requirement of
appropriate scale) or stimulating such associations (preferences for joint initiatives).
328
Final Evaluation Study of the Rural Development Project – Evaluation of the impact of RDP resources on the investments
Krzysztof Kamiński, Dorota Rudnicka
6 Evaluation of the impact of external
financing from the Rural Development
Project resources on the investments
realized by local governments
329
6.1 Identification of the subject of evaluation
The Component C and Sub-Component B2 basic indicators describing the social and
economic situation in the investment realization area, measured before the start and in
the course of investment realization activities in order to estimate the changes, but not
being an effect of the investments, have been presented in the respective chapters.
A measure of the intended objectives, means, obtained products, effects and other
parameters (e.g. economic, social, environmental) are the performance indicators. Those
indicators were established before or at an early stage of the Project in order to monitor
its implementation and to evaluate the results against the earlier objectives. The
indicators include the input, product, result and impact indicators.
6.1.1
Input indicators
The input indicators, related to the budget allocated to individual investment categories,
have been used for monitoring progress in liabilities and payments. Basic data:
•
financial scope of investment – progress status
•
investment expenditures planned and borne
6.1.2
Product indicators
Product indicators – the activity-related indicators were measured in material units: length
of the constructed roads, sewage disposal and water supply systems, number of the
water conditioning and sewage treatment stations and waste dumps, also as a
percentage of the tasks fulfilled. Basic data:
•
material scope of investment – progress status
6.1.3
Result indicators
Result indicators, corresponding to direct and immediate effects of the investments in
Component C, provide information on the changes related directly to beneficiaries. Basic
data:
•
number of the investment users
•
degree of saturation with infrastructure
•
directly delivered goods.
6.1.4
Impact indicators
The impact connected with the effects of investments in Component C exceeds the
immediate effects to direct beneficiaries and includes the effects which will appear after
some time but are directly connected with the investment. The impact indicators cover
long-term effects for broader population. Basic data:
330
•
number of new jobs,
•
number of new business units.
6.2 Evaluation of the impact of external financing from the RDP
resources on realization of investments
Evaluation of the impact of external financing from the RDP resources on the investments
realized by local governments was based on the comparative analysis of the investment
realization indicators in units participating in the Project and those not participating in the
Project but using other financial means – own or acquired from other projects.
The evaluation covered the following aspects:
•
status and material scope of investment,
•
planned and borne investment expenditures,
•
financing sources,
•
effects measured by the level of infrastructure saturation,
•
number of the investment users (number of households in the system, number of
business units and public buildings served by the system),
•
unit investment costs,
•
number of new jobs,
•
number of new business units.
6.2.1
Evaluation of the projects co-financed from RDP
Evaluation of the realization of RDP co-financed projects was based on data contained in
the reports of the Project-participating units and in the MIS database, statistical
information and detailed questionnaires (Investigation in accordance with Tool 30, 34 - an
Appendix to the Report).
Financial scope and sources of finance
In the Project Appraisal Document the total Component C budget, including all its
elements with training and other projects, was planned at USD 194.89 million. Total
planned Sub-Component B2 budget, including the teaching process improvement tasks,
amounted to USD 24.67 million.
The planned share of investment costs in the overall Component budget was the
following:
•
in Component C
91,0%
•
in Sub-Component B2
40,5%
The following table derived from the project documents presents the planned investment
budget subdivided into the Bank means and local government means (including own and
commercial money)
331
Table 106.
Anticipated investment task budget
Bank money
(millions of
USD)
Item
Local
government
(millions of
USD)
Total
(millions of
USD)
Infrastructure investments in rural areas,
Component C
54,54
122,85
177,39
Infrastructure investments in rural areas, SubComponent B2:
4,19
5,78
9,97
- school repairs
3,09
4,27
7,36
(resources from the not realized „school
transport” task)
1,10
1,51
2,61
Total investment:
58,73
128,63
187,36
- repairs and equipment of day-rooms
Source: PAD Operational Manual
Figure 59.
Planned finance source share in Sub-Component B2
Word
Bank means
Środki
Banku
42%
Światowego
42%
Środki własne
Beneficiary’s own
beneficjenta
means
58%58%
Środki Banku
Światowego
Środki własne
beneficjenta
Figure 60.
Planned finance source share in Component C
Środki
Banku
Word
Bank means
Światowego
31%
31%
Środki własne
Beneficiary’s
beneficjenta
own means
69%
69%
Środki Banku
Światowego
Środki własne
beneficjenta
332
Table 107.
Financial scope of the investment tasks
Investment
Water conditioning
stations
Planned costs
Actual costs
Percentage of actual costs
in planned costs
Millions of PLN
Millions of PLN
%
76
47,7
62,8%
301
210
69,8%
7
5,4
77,1%
Roads
201
202
100,5%
Total C investments:
585*
465,1
79,5
31,5
255,8
Sewage treatment
plants
Sewage network
Waste dumps
Upgrading the school
building condition
(7,36 millions of
USD)
(59 millions of
USD)
813,4%
11,2
25,8
(2,61 millions of
USD)
(5,8 millions
of USD)
230,4%
Total B2 investments: :
42,7**
281,6
659,48
Total:
627,7
746,7
118,9%
Repairs and equipment
of day-rooms
* at the application stage
**from PAD, converted at the rate: 1 USD = 4.2730 PLN
Source: Costs in Component C acc. to the RDP Components Monitoring Table, PCU data, as of
31.03.2005
Costs in Sub-Component B2: values in USD acc. to the RDP Components Monitoring Table, as of
31.03.2005; values in PLN acc. to MIS, PCU data as of 31.03.2005
Figure 61.
Actual percentage share of finance sources in Sub-Component B2
Środki Banku
Word Bank means
Światowego
37%
37%
Środki własne
Beneficiary’s
beneficjenta
own means
63%
63%
Środki Banku
Światowego
Środki własne
beneficjenta
Source: PCU data, as of 31.03.2005
333
Figure 62.
Actual percentage share of finance sources in Component C
Środki Banku
Word Bank means
Światowego
38%
38%
Środki własne
Beneficiary’s
beneficjenta
own means
62%
62%
Środki Banku
Światowego
Środki własne
beneficjenta
Table 108.
Use of the World Bank means for investment tasks
Component
B2
Task
Data
School repairs
Investments
School and day-room equipment
Rural infrastructure
(non-water supply)
C
investments
Investments
Rural infrastructure
(water supply)
investments
Total
Credit (millions of EUR)
23,84
Credit (millions of PLN)
98,69
1,50
6,16
41,28
165,97
2,95
11,68
Total:
69,57
Total:
282,50
334
Figure 63.
World Bank means allocation by the type of infrastructure
investment
Rural
infrastructure
investments
(w ater supply)
4%
School repairs
35%
Rural
infrastructure
investments (nonw ater supply)
59%
School and dayroom equipment
2%
Figure 64.
Co-financing of investments from the World Bank resources in the
individual voivodships (provinces)
25
19,3
20
16,9
14,1
15
13,6
13,0
12,6
13,4
11,4
9,7
9,5
8,9
10
6,6
5
17,6
16,4
15,7
6,0
4,8
3,1
9,1
2,8
3,3
2,5 3,0
3,0
3,3 3,5
4,4
8,7 8,2
8,3
5,6
4,1
Wielkopolskie
WarmińskoMazurskie
Świętokrzy skie
Śląskie
Pomorskie
Podlaskie
Subcomponent B2
Zachodniopomorskie
Component C
Podkarpackie
Opolskie
Mazowieckie
Małopolskie
Łódzkie
Lubuskie
Lubelskie
Kujawsko-Pomorskie
Dolnośląskie
0
Investments were financed mainly by the local governments. Financing of investments
within the RDP was subject to the Public Finance law regulations.
Basic costs borne by the beneficiaries include, first of all, costs connected with
construction and modernization of the objects. Only in few cases additional costs were
incurred by some beneficiaries due to almost half-year long waiting, at the initial stage of
the Project, for the Bank money. In several cases the investigated gminas took
commercial credits to pay the work executors. Later in the Project the problem was not so
serious (waiting time did not exceed a month) and did not generate additional costs.
335
Apart from the investment realization costs, the investment beneficiaries are charged with
the object operating and maintenance costs. In most of the investigated gminas, however,
it was not possible to determine those costs for the RDP financed objects as the objects
were usually an element of a system.
Within Component C some 79.5% of the money anticipated before biddings were spent.
Differences between the planned and actual costs at that stage were caused by the
following main reasons:
•
differences between the cost estimates before bidding and the contract signed with
the winning tender (revaluation of the investment),
•
reduced scope of investment (resignation after application),
•
additional work which turned out to be necessary during realization of the investment,
etc.
Within Sub-Component B2 much more money was spent than it had been planned for in
PAD before the investment started. In May 2003 it was decided to extend the investments
from 7 voivodships to 16 voivodships, with money taken from the reserve fund of the
project (free reserve and returns from other Components). As far as the limit of loan funds
specified in the Loan Contract is concerned, the total level of funds absorption reached
96.93% in Sub-Component B2 in March 2005, following re-allocation. In the SubComponent B2 investments 99.5% of the planned resources were spent.
At the time of Report writing, realization of the material scope has reached 100%, but
accounts have not been completed yet.
Figure 65.
Sub-Component B2 investment costs in voivodships
70
60
16,4
50
14,1
40
8,2
4,4
5,6
World Bank means
Wielkopolskie
WarmińskoMazurskie
Św iętokrzyskie
Pomorskie
4,1
24,1
21,6
3,0 3,3
14,8
11,6
8,8 10,1 12,6
Zachodniopomorskie
Beneficiary's ow n means
25,9
Podlaskie
3,0
7,8
Opolskie
14,9
Mazow ieckie
Lubelskie
Kujaw skoPomorskie
Łódzkie
9,2
Lubuskie
2,8 3,3
7,4 6,2
0
Dolnośląskie
6,0
Śląskie
39,7
3,1 22,2
9,1
44,7
Małopolskie
20
10
9,5
8,9
Podkarpackie
30
336
Figure 66.
Component C investment costs in voivodships
70
60
13,6
12,6 16,9
40
30
19,3
15,7
50
17,6
13,0
4,8
20
10 23,1
13,4
11,4
48,3
37,1 36,9 6,6
31,9
14,4
46,6
40,7
29,5
2,5
8,3
8,3
37,6
22,9 3,5
8,9
33,2
8,7
23,5 27,0
Ku
ja
w
D
ol
no
śl
sk
ąs
oki
Po
e
m
or
sk
i
Lu e
be
lsk
ie
Lu
bu
sk
ie
Łó
dz
M
ki
ał
e
op
ol
sk
M
ie
az
ow
ie
ck
ie
O
po
Po
lsk
dk
ie
ar
pa
ck
ie
Po
dl
as
kie
Po
m
or
sk
ie
Śl
Ś
ą
W
sk
w
ar
ię
ie
to
m
kr
iń
sk
zy
osk
M
ie
az
ur
W
s
Za
k
ie
lko ie
ch
od
po
ni
ls
op
ki
e
om
or
sk
ie
0
9,7
Beneficiary's own means
World Bank means
Material scope
In the Component C investments, altogether 722 contracts were concluded (source:
Monitoring Table, PCU, as of 31.03.2005), including:
•
construction and modernization of the water conditioning stations and water supply
network: 97 contracts,
•
construction and modernization of the sewage treatment plants and sewage network:
194 contracts,
•
building of waste dumps: 4 contracts,
•
construction of the powiat and gmina roads: 427 contracts.
In the Sub-Component B2 investments, altogether 3397 contracts were concluded
(source: MIS, as of 31.03.2005), including:
•
school repairs: 1936 contracts,
•
equipment and repairs of school day-rooms and class rooms: 1461 contracts.
The following tables present realization of the RDP co-financed projects.
337
Table 109.
Scope of the investment tasks
Unit
Planned
products
Actual
products
Percentage (%) of
actual products
comparing with
plan
object
14
14
100%
km
790
923
116,8%
Sewage treatment plants
object
351
236
67,2%
Sewage disposal network
km
916
1037
113,2%
object
5
4
80,0%
km
557
734
131,8%
- number of repaired schools
object
100
1885
1885,0%
- repaired class rooms
object
348
4126
1185,6%
259
498,1%
Investment
Water conditioning stations
Waste dumps
Roads
Upgrading of school objects
Repairs and equipment of day-rooms
- number of repaired day-rooms
object
52
- number of equipped day-rooms
(and zero-level class rooms)
object
111
682
(491)
1056,8%
Water supply system
The „Water conditioning stations” investments include construction and modernization of
water conditioning stations and water intakes. Three new plants have been built: 2 water
conditioning stations (total cost PLN 1,314,500.) and 1 water intake with water
conditioning station (cost PLN 1,261,600). Other objects were modernized or repaired.
The water supply network, constructed or modernized, will serve households (with 12,900
connections) and institutions (422 connections). Unit building costs of the water supply
network are on the low side of average costs in the country.
The sewage treatment and disposal system
In the RDP, 213 new farmstead sewage treatment plants have been built in one gmina
with 5500 inhabitants. At the application submitting stage 330 such plants had been
planned but some potential beneficiaries withdrew their applications. Unit cost of a
farmstead sewage treatment plant is PLN 1,767 per (m3/day). Other 23 sewage treatment
plants include existing modernized or extended objects and 15 new objects in the area
with some 120,000 inhabitants. Unit cost of the new objects is in the range of PLN 6,000
to 12,000 per (m3/d) of treated sewage, depending on the technology used and plant
capacity. Unit costs are on the high side of average costs of such objects built in Poland.
Line objects are new and modernized objects. The newly built sewage disposal network
includes sewage pumping stations as well as 20,850 connections to households and
1,400 connections to other buildings. Unit building costs of the sewage disposal network
are on the low side of average costs in the country.
Waste dumps
Waste dumps are newly built objects. Their total capacity is 138,926 m3. Those waste
dumps will be used by 18,600 households and 4,500 other users – public service
338
institutions. Unit cost of the investment is in the range of PLN 11 to 93 per m3 of waste
dump capacity.
Roads
Poviat and gmina roads were built within the Component C. In the total length of
constructed roads (734 km), applications for 332.94 km were submitted by powiats. In
other cases applications came from gmina offices. In most investigated gminas (79%) the
investments were qualified by beneficiaries as modernization of existing roads. Average
unit cost of a modernized road in those gminas was PLN 236,900 per km. Construction of
new roads was declared by 21% of the gminas. Average unit cost of a new road was PLN
485,400 per km.
School objects
Within the Sub-Component B2 repairs were performed in 1885 schools, including 4126
classrooms and 259 day-rooms. Equipped were 682 day-rooms and 491 classrooms. The
repair and investment tasks of the Sub-Component B2 were initially carried out in 7
voivodships (1st phase). In 2003 the initial scope of tasks was extended and all the
voivodships were included into the Sub-Component (2nd phase).
The estimated number of schoolchildren attending schools included in the Project, who
directly benefitted from it, exceeds 300,000.
Investments covered by Component C were completed by the end of 2004, with the
exception of one project in the road sector. In the first quarter of 2005 financial accounts
were made but have not been finished yet. The planned material scope of the
investments was kept for the water conditioning stations. The scope of construction and
modernization of the water supply and sewage disposal networks was extended. The
number of waste dumps was reduced from 5 to 4. All the planned gmina sewage
treatment plants have been built, but 117 potential beneficiaries withdrew their
applications for building small farmstead sewage treatment plants.
It may be concluded that material assumptions of Component C have been fulfilled.
In Sub-Component B2, in May 2003 the NSC decided to extend the material scope of
investments comparing with the initial plans presented in PAD. Investments were realized
in all voivodships. The scope extension was possible by appropriating means for it from
the Project reserve fund. The latest contracts were concluded in the first quarter of 2005.
At the time of preparing of this Report, the material plans have been fulfilled in 100% but
financial accounts have not been finished.
In Sub-Component B2, overall material effects have been considerably greater than the
initial assumptions, which indicates great demand on the part of beneficiaries for that type
of investments.
The unit investment costs given in the table below have been determined for this Report
as an average value of work for a unit of the respective material effect. The individual
investment groups include different work categories: construction, repair and
modernization of objects, therefore the cost values in the table are not comparable with
unit cost of new buildings.
339
Table 110.
Cost of investments in the Project per unit material effect
Investment
Unit cost of
investment
Unit
Water conditioning stations
[thous. of PLN/object]
647.9
[thous. of PLN/km]
43.3
3
Municipal sewage treatment plants
[thous. of PLN/ m /d]
3.1
Municipal sewage treatment plants
1 844.8
3
Farmstead sewage treatment plants
[thous. of PLN/ m /d]
1.8
Farmstead sewage treatment plants
8.8
Sewage disposal network
[thous. of PLN/km]
159.7
3
Waste dumps
[thous. of PLN /m of
capacity]
0.04
Waste dumps
1 353.4
Roads
[thous. of PLN/km]
276.7
Upgrading the school objects
135.7
Repairs and equipment of day-rooms
18.0
Source: MIS unit investment costs, as of 31.03.2005.
As the average population density is comparable in all the investigated gminas, whether
participating or not in the Project, an average number of new users benefitting from an
investment project in a given sector, determined from the questionnaire interviews, was
chosen as a measure of the dynamics of investments undertaken and carried out in the
years 2001-2004.
Table 111.
Average number of investment users in one project in a given
sector
Sector
Estimated number of
Estimated number of business
households benefitting from 1 units and public service objects
project
benefitting from 1 project
Water supply
191.2
8.4
Sewage treatment
107.5
7.3
Waste dumps
4652.5
1116.0
Roads
417.4
31.6
Estimated number of pupils benefitting from repaired
classrooms
227.1
Source: PBS survey in March 2005
Information was gathered from the questionnaire interviews in gminas.
Number of new jobs
It is estimated that new jobs created as a result of the repair and modernization work
carried out in Sub-Component B2 have been located mainly in the repair and construction
companies. This indicator was not monitored during the Project.
340
The impact of Component C investments measured as a number of new jobs available to
the direct beneficiaries cannot be assessed immediately. The actual impact of the
Component C investments on the social and economic situation will be seen after some
time. The number of new jobs, as both direct and indirect effect of the investments, as of
31.03.2005, is given in the table below.
Table 112.
Expected and actual effects of Component C in terms of new jobs
created
Expected results
Actual results as of
31/03/2005
Poviat and gmina roads
15 100
3 704
Water supply
2 650
821
240
177
Sewage management
5 400
1238
Total:
23 390
5 940
Task
Waste management
Source: the RDP Components Monitoring Table, PCU, as of 31.03.2005
Final estimation of the „Number of new jobs” indicator is planned for December 2006.
6.2.2
Evaluation of the realization of projects where applications for a
RDP financial support had been submitted but projects were not
qualified for financing
From available data, e.g. results of investigation of a representative group of local
government units (investigation in accordance with Tool 33, attached as Appendix to this
Report), an investigation was carried out of the realization of projects where applications
for RDP co-financing had been submitted but projects were not qualified.
In Component C a total number of 1013 projects (the MIS database registers costs of 2
projects whose overall value after procurement procedures reached about 1 million PLN).
In Sub-Component B2 a total of 1034 projects were not qualified (the MIS database
registers costs of 2 projects whose overall value after procurement procedures reached
about 123.8 thous. PLN).
Most of the submitted to the RDP and not qualified projects were simply not fully prepared
for realization.
The most frequent reasons of negative verification were lack of valid building permit
and/or other documents, shortage of the required own means and applications submitted
after bidding not in accordance with the World Bank procedure. Some projects, positively
verified, were eventually not included in the Project because in the meantime they
obtained financial support from other projects, e.g. PHARE INRED (most projects were in
the water supply - sewage management sector), PHARE ODBUDOWA (reconstruction of
the infrastructure after the 2001 flood, including road repairs), SAPARD (investment
support), Restructuring Funds, Environment Protection Funds. 35% of the investigated
gminas applied for the investment financial support from other sources.
In the investigated gminas, investments were realized in all the RDP covered sectors.
341
The questioned respondents declared that realization had been undertaken of more than
77% of projects submitted to RDP, of which 31% were realized on a smaller scale.
Rejection from RDP caused delays of investments in almost 57% of the investigated
gminas. In most cases the investments were realized in 2004.
As the average population density is comparable in all the investigated gminas, an
average number of new users benefitting from an investment project was chosen as a
measure of the effects of investments undertaken and carried out in the years 2001-2004.
Table 113.
sector
Sector
Estimated number of
project
Water supply
233
33
Sewage treatment
388
43
Waste dumps
n.a.
n.a.
Roads
563
68
classrooms
141.8
6.2.3
Evaluation of the realization of projects in the local government
units which did not apply for a RDP financial support
From available data, e.g. results of investigation of a representative group of local
government units (investigation in accordance with Tool 35, attached as Appendix to this
Report), an investigation was carried out of the realization of projects in units which had
not applied for RDP co-financing.
The largest group of the gminas were those with 6,000-10,000 inhabitants, 30% were
gminas with 1,000-5,000 inhabitants. 60% of the population live in the rural areas.
In the investigated gminas, investments were realized in all the RDP covered sectors.
The main reason of not applying for the RDP co-financing were applications submitted to
other support funds. Almost 90% of respondents benefitted from the European Union
accession funds: ISPA, PHARE and SAPARD. 38% of the gminas used means provided
by the international financial institutions. Less popular were the Structural Funds and the
Rapid, Struder and Inred programs.
Almost 60% of respondents are of the opinion that without the external co-financing it
wouldn’t be possible to realize the investments or they would be delayed or would have to
be realized in stages.
342
An average number of new users benefitting from an investment project was chosen as a
measure of the effects of investments undertaken and carried out in the years 2001-2004.
Effects of the projects not co-financed from RDP are presented in the table below.
Table 114.
sector, not co-financed from RDP
Sector
Estimated number of
project
Water supply
644
33
Sewage treatment
260
20
Waste dumps
1978
268.
Roads
169
15
classrooms
139.3
6.2.4
Indicators
The impact of RDP financing on the realization of local government investments was
considered taking into account three groups of investments:
•
RDP co-financed investments
•
Investments where applications for RDP co-financing had been submitted but were
rejected
•
Investments where applications for RDP co-financing had not been submitted.
The source of information presented in the table are first of all the GUS statistics for some
selected gminas, where also the questionnaire interviews were performed.
The table below contains average values of indicators in the individual sectors calculated
for the investigated areas.
343
Table 115.
Selected indicators for investments realized by local governments in the investigated gminas
Indicator
Unit
Investments cofinanced from RDP
Investments not co-financed from RDP
RDP co-financing not applied
for
Applied for, not qualified to
RDP co-financing
Water conditioning stations (WCS) and water supply network
WCS output per person using the water supply network
m3/P d
0,00562
0,00131
0,00272
Conditioned water per person per year
3
dam /P year
0,0254
0,0264
0,0247
Length of operating water supply network per person
km/P
0,0096
0,0111
0,0094
Length of operating water supply network per unit of the
gmina area
km/km2
0,786
0,914
0,667
Number of persons per one water supply connection
P/connection
4,94
4,44
4,39
Percentage of population using water supply network in
2003
%
78,5
81,1
71,6
Investment expenditures per person using water supply
network – construction and modernization of water
conditioning stations
thous. of PLN/P
0,005
0,004
0,009
Unit cost of water supply network (intake and distribution)
PLN/km
94,21
67,49
80,12
3
1,80
1,88
1,84
3
2,98
2,21
1,98
191,2
644
233
3
Net price of 1 m of water - households
3
PLN/m
Net price of 1 m of water – industry
PLN/m
Average number of connected households as an effect of
one project
households/project
Average number of connected business units as an effect of
one project
business
units/project
8,4
33
33
Treated sewage per person per year
dam3/P year
0,0175
0,0130
0,0126
Length of operating sewage disposal network per person
km/P
0,0024
0,0018
0,0030
Length of operating sewage disposal network per unit of the
gmina area
km/km2
0,1985
0,1494
0,2117
Sewage collected
dam3 /P year
0,0191
0,0142
0,0138
Sewage treatment plants and sewage disposal network
344
Number of persons per one sewage disposal connection
P/connection
8
9
6
Percentage of population served by sewage treatment
plants
%
44,28
30,97
31,04
Percentage of population using sewage disposal network
%
38,17
28,85
29,18
Unit cost of sewage disposal network
thous. of PLN/km
257
359
264
Investment expenditures per person using sewage disposal
network – construction and modernization of sewage
treatment plants
thous. of PLN/
person
0,049
0,089
0,060
Net price of 1 m3 of sewage - households
PLN/m3
2,63
2,64
2,61
3
2,98
2,80
2,72
107,5
260
388
3
Net price of 1 m of sewage – industry
PLN/m
Average number of connected households as an effect of
one project
households/project
Average number of connected business units as an effect of
one project
business
units/project
7,3
20
43
Waste per person per year (average)
kg
290
290
290
Investment expenditures per person – waste management
PLN/P
4,40
3,98
3,80
Gmina budget expenditures per person – waste
management
PLN/P
0,72
0,60
1,07
Average number of households benefitting from one project
households/project
4652,5
1978
b.d.
Average number of business units benefitting from one
project
business
units/project
1116
268
b.d.
41 242
26 328
53 240
40
42
57
417,4
169
563
31,6
15
68
Waste
Roads
Gmina budget expenditures per year for gmina public roads
thous. of PLN/year
Gmina budget expenditures per person per year for gmina
public roads
PLN/P year
Average number of households benefitting from one project
households/project
Average number of business units benefitting from one
project
business
units/project
School objects
345
Average school building maintenance costs
PLN/year
291,0
298,3
305,9
Number of 6-years old children attending zero-classes (in
elementary schools)
person
14,5
13,0
14,2
Number of pupils using school day-room (gmina government
person
administered schools)
16,7
16,2
16,3
Number of pupils at school (gmina government administered
person
schools)
159,8
146,6
148,0
Number of repaired class rooms
room
16,3
8,6
8,7
Number of repaired day-rooms
room
13,6
12,4
11
Information on gminas
Population density
P/km2
82
83
71
Gmina budget income per person
PLN/P
826
650
1 039
Gmina budget income – state budget subsidies - per person
PLN/P
78
52
86
Gmina budget income – acquired from other sources - per
person
PLN/P
33
26
33
Gmina budget income – own income - per person
PLN/P
296
232
402
Source: GUS, 2004 and questionnaire interviews
346
The water supply and sewage disposal projects are best documented. The available
indicators for roads, waste and schools allow only a rough estimate.
Water conditioning stations and water supply network
Taking into account that in all three groups of gminas – those co-financed by RDP and
not participating in RDP – the population density, average infrastructure development
level and average number of persons using one connection are at a similar level, it may
be assumed that all those gminas have similar level and structure of the water supply
services. In the realized investment tasks, the highest increase in the water supply
service development was achieved in the group of gminas which had not applied for the
Project means. A comparable although somewhat lower level is in the Project participant
group and the lowest level is in the group not qualified to the Project.
Comparing the unit costs of the water supply network construction and the investment
expenditures in the three groups of gminas, one can see that the Project participant group
invested in more expensive objects but more modern and cheaper in operation. Price of 1
m3 of water for households in that group is lowest. However, the average price of 1 m3 of
water for industry is the highest, which is not a good prospect for one of the main RDP
objectives, i.e. development of business initiatives. It has to be added, though, that those
tariffs not always reflect the actual water supply costs for the industry as gminas often
apply their own tariff policy not in agreement with economic calculation.
Almost 65% of respondents are of the opinion that all the investment objectives have
been achieved and more than 70% see the investment as fully compatible with the gmina
needs.
Sewage treatment plants and sewage disposal networks
Having in mind the same conditions as those for the water supply system, it must be
observed that in the Project participating group of gminas the sewage management
infrastructure is much better developed than in the other groups. Nevertheless, the level
of sewage disposal services (44%) is still too low for the expectations, particularly in view
of the statutory requirement that each agglomeration with an equivalent number of
inhabitants above 2000 should have a sewage disposal network leading to a sewage
treatment plant.
Costs of the sewage disposal network constructed within the Project was the lowest,
which confirms a competitive attitude. The operating costs do not show any significant
differences. Availability of the sewage disposal network is not high, but a useful
mechanism has been started of investing in the environmentally friendly infrastructure,
which so far has not been much appreciated in the rural areas.
80% of respondents in gminas participating in the Project were of the opinion that
investment was in full agreement with the actual needs. The most important positive
effect was natural environment protection (19%), improvement of sanitary conditions
(13%) and improved quality of life (12%).
Waste
Three of the waste dumps built within the Project are located on the Mazowieckie and
Wielkopolskie voivodship territory, which occupy the second and third place in Poland in
terms of waste generating. The average number of households using the waste dumps
built in the Project participant gminas is twice as high as in those not applying for the RDP
347
co-financing. Similarly, the number of business units is four-fold. Only in one gmina not
participating in the Project a new waste dump has been built.
Very low investment expenditures for that purpose in the gmina budgets confirm that
most rural households are not covered by an organized waste collection system and they
utilize it on their own, often polluting the natural environment. Development of a network
of waste dumps and the waste utilization systems is therefore an important problem not
only for cities but also for the rural areas.
Roads
The highest budgetary expenditures per person for public gmina roads were borne by the
RDP non-qualified group of gminas. In other groups those expenditures were somewhat
lower, which suggests different levels of construction and modernization work in the
overall investment volume in the individual gminas.
In the Project participant group of gminas, most investments consisted in modernization
of the existing gmina roads (more than 77% of projects). Average road density has not
been significantly increased in that territory but the road quality has improved. Owing to
the better road quality, the average traffic density is now 30% higher.
Almost 90% of the respondents were of the opinion that the new road was fully
compatible with the gmina needs. The most important positive effects were the following:
improved road safety (100% of respondents), better conditions for business activity
(93.2%), improved transport of school children (90.9%), better access to the village
(88.6%).
School objects
Taking into account that the average number of school attending children and pupils is
similar in all the investigated gminas, it is worth noticing that in the Project participating
group of gminas the number of repaired school compartments is twice as high as in the
remaining groups. It confirms the great demand for investments in the improvement of
school facilities.
The following may be stated as a summary of the realization of investments by local
governments:
348
•
The planned investment realization deadlines have been kept.
•
In the Component C, the actual costs were much lower than costs estimated at the
application stage. This is mainly due to differences between the estimated value
before bidding and a value contracted with the winning bidder (investment
revaluation) and reducing the overall scope of investment due to resignation by
beneficiaries from some initially planned tasks. The contract value might have been
increased by additional work which appeared necessary in the course of investment
realization. Reduction of the material scope of the Project as a whole may be
considered small.
•
In the Sub-Component B2, much more money was spent than had been planned in
PAD before the investment started, because in 2003 all the voivodships were
included in the Project (7 voivodships originally planned) thanks to transferring the
Project reserve money to that Component. Therefore, the material effect of the
investments was higher than originally planned, in proportion to the financial means
actually assigned.
•
In the starting period of the Project, the main disturbing element of its realization was
the prolonged process of transferring money means to the gmina bank accounts. It
might take up to half a year from the time an application for transfer of a money
installment was accepted to the time the gmina had that money at its disposal. That
might cause conflicts with those waiting for payments for work done. In some cases
gminas took commercial credits to discharge their liabilities, which was an additional
burden on the gmina budget. At a later stage that inconvenience was eliminated and
the money transfer time was much shorter. Financing the investments in installments
in the course of realization was convenient for the beneficiaries as gminas did not
have to engage financial means in the full amount of the expected subsidy. Such a
large required own contribution would have been a major impediment and sometimes
an insuperable barrier to the investments.
•
Costs of the objects constructed within the Project are similar to those typical of such
objects in Poland.
•
Unit construction cost indicators of the objects are similar to the indicators in other
support projects.
•
In view of the dispersed and local character of the individual tasks and their relatively
small size, the reduction of unit expenditures (scale effect) is not felt.
Analysis of data during the final evaluation of the infrastructural investments realized
within the Rural Development Project allows to formulate the following conclusions
pertaining to the basic Project implementation terms and conditions:
•
The Project tasks are in great majority of key importance to the functioning of gminas.
•
The gminas have a real demand for financial support of investments, most of which
would not have been realized without the external financing.
•
Investments covered by the Project are complementary to other programs aimed at
improvement of living conditions and business activities in the rural areas. All those
programs support each other to achieve a superior objective which is development of
the rural areas.
349
Final Evaluation Study of the Rural Development Project – Analysis of the social and economic effects
Jarosław Malec
7 Analysis of the social and economic effects
Jarosław Malec
351
Jarosław Malec
The Project had an exceptionally complex multi-subject character rendering many effects
difficult to rate in terms of money. As stated in PAD, full social and economic Cost-Benefit
analysis based on hard numbers and their projections into the future is not possible –
many arbitrary assumptions would have to be made and expensive investigations
performed to collect data not obtainable from the available sources. Therefore, like in
PAD, the standard cost-benefit analysis (CBA) was left aside and the economic return
rate (ERR) was not calculated. It can only be said that for the Component C, where the
CBA was performed for each investment project, the return rate was not lower than 10%,
which was an acceptance condition for the individual projects.
Instead, the following four independent analyses were performed which allow to evaluate
the cost effectiveness, productivity and the social and economic impact of the Project.
•
Analysis of the financial benefits for the state budget from the new jobs created – in
accordance with the PAD methodology corrected for the legal conditions and the
macroeconomic data for the year 2003.
•
Qualitative analysis of the costs and the social and economic benefits, from direct
investigations.
•
Comparative (benchmarking) analysis of the project effectiveness, comparing the
project costs and effects with similar projects and the market data.
•
Statistical analysis – investigating the interdependence (correlation) between the
Project intensity indicators in Components A, B1 and C (outputs) in the individual
gminas and powiats and the key Project result indicators (outcomes).
7.1 Analysis of the financial benefits for the state budget from the
new jobs created
The financial effects for the state budget from the new jobs created have been evaluated
in PAD. The effects consist of two elements:
•
effects of the reduced unemployment benefit costs;
•
effects of the increased budget revenue from the income tax and VAT.
Additionally, as the wages of the newly employed people were unknown, calculation of
the revenue from taxes was made for two wage levels – the statutory minimum wage and
an average wage in the country.
For the 1997 data, the effects were calculated in PAD at the following level:
352
•
effects of the reduced unemployment benefit costs - PLN 2 705 per year per one
unemployed person newly employed;
•
effects of the increased budget revenue from the income tax and VAT – PLN 1 066
per year per one unemployed person newly employed with the minimum wage and
PLN 3 314 per year per one unemployed person newly employed with an average
wage.
Jarosław Malec
Taking that into account, the state budget benefits from one new job created were in
the range (for the 1997 data) from PLN 3 772 to 6 020 per year, depending on the
wage level.
Assuming the PAD methodology, the state budget benefits from one new job created
were determined for the 2003 data (the necessary data were not available for the later
periods).
The following assumptions were made to evaluate the effects of reduced unemployment
benefit costs:
•
the sums of unemployment benefit, insurance paid from the state budget and
administrative costs (for the whole country) were taken from the 2003 state budget
performance information published in the Ministry of Finance internet pages
(www.mofnet.gov.pl);
•
the number of unemployed was taken from the GUS data and that number for 2003
was determined as a mean value of the number of unemployed at the end of 2003
and 2002: (3,175,674 + 3,216,958)/2 = 3,196,316.
With those assumptions, the unemployment benefit costs (borne by the state
budget) of one unemployed person in 2003 amounted to PLN 1 319.55 per year.
Details of the calculation are given in the table.
Table 116.
Unemployment benefit costs of one unemployed person borne by
the state budget (based on the 2003 data)
Thous. of PLN
Unemployment benefits (Poland total)
2 833 587
Insurance of the unemployed (Poland total – government contribution)
907 778
Administrative costs (Poland total)
476 337
Total fiscal expenditures (Poland total)
4 217 702
Total number of the registered unemployed
3 196 316
Annual fiscal cost per 1 unemployed (in PLN)
1 319.55
Source: own analyses.
It is worth noticing that the sum of PLN 1 319.55 is a mean value for one unemployed
regardless of whether that person still has the right to receive the unemployment benefit.
The annual cost in 2003 per one unemployed with the right to receive the benefit was
PLN 8,300 (average number of the unemployed with the right to receive the benefit in
2003 was 508,400).
The following assumptions were made to evaluate the effects of increased budget
revenues from the income tax and VAT:
•
minimum wage of PLN 800 per month was assumed, based on the regulations in
force in 2003 (art. 4 par. 1 of the Minimum Wage law of 10 October 2002 - Dz. U.
(Off. Journ.) of 2002, no. 200, item 1679); as in 1997 the respective regulations were
changed and „gross” wages were introduced, the basis for calculation was minimum
wage minus the obligatory social security premium, i.e. PLN 650.30 per month;
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•
average wage of PLN 2201.47 per month was based on the GUS data published in
the internet pages www.stat.gov.pl; as with the minimum wage, this is a „gross”
wage, therefore the basis for calculation was average wage minus the obligatory
social security premium, i.e. PLN 1 789.60 per month;
•
the tax-free income was assumed PLN 2 789.89 zł, - based on the regulations in
force in 2003, i.e. Personal Income Tax law of 26 July 1991 (uniform text in Dz. U. of
2000, no. 14 item 176 with later amendments);
•
the income tax was calculated in accordance with the personal income tax law, with
the lowest 19% rate;
•
the increase in revenue is the difference between the wage (minimum or average,
depending on the calculation variant) and the tax paid and the average sum per one
unemployed person paid from the state budget;
•
propensity to spend was assumed in accordance with PAD, i.e. 99% in the case of
those receiving the minimum wage and 94% in the case of average wage;
•
increase of expenditure is the product of increase in income and propensity to spend;
•
food expenditures for those receiving average wage were assumed at 23.8% of
income – based on the information published in the GUS internet pages
(www.stat.gov.pl) titled „Situation of households in 2003 in the light of the results of
household budget investigations” (signal information); as no reliable data were
available on the food expenditures in the households of minimum wage receivers, it
was assumed for the analysis that food expenditures would be in the same proportion
to the expenditure increase as that given in PAD for 1997;
•
VAT on food was determined in the same way as in PAD for 1997, i.e. as a product of
the 7% rate and food expenditure;
•
non-food expenditures were determined as difference between the total increase of
expenditures and food expenditures;
•
VAT on non-food articles was determined in the same way as in PAD for 1997, i.e. it
was assumed that for minimum wage receivers the average VAT rate for non-food
articles would be 10%, and for the average wage receivers 15%; VAT value is
therefore equal to the product of VAT rate and expenditures for non-food articles;
•
additionally, value of social security (ZUS) premiums paid by the unemployed who
took up new jobs was qualified as a budget benefit as the ZUS budget is
supplemented by the state budget means and each ZUS premium paid by a newly
employed person reduces the state budget expenditure.
With those assumptions, the value of increased fiscal revenue from one
unemployed getting new job in 2003 amounted to PLN 3 263 to 10 533 per year,
depending on whether the unemployed had received the minimum or average wage.
Details of the calculation are given in the table.
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Table 117.
Annual fiscal benefit of increased taxes and social security
premiums paid by the unemployed persons who found jobs –
minimum and average annual wage (based on 2003 data)
Minimum wage
(PLN)
Average wage
(PLN)
Gross minimum wage
9 600
26 418
Minimum wage minus ZUS premium
7 804
21 475
ZUS premiums paid by the unemployed who found
jobs
1 796
4 943
Tax free income
2 790
2 790
Taxable income
5 014
18 685
953
3 550
Income increase (wage minus tax minus average
unemployment benefit for each unemployed)
5 965
17 038
Propensity to spend
0.99
0.94
Expenditure increase
5 905
16 016
Food expenditure
2 555
4 533
179
317
3 350
11 483
VAT on non-food articles
335
1 723
VAT benefit
514
2 040
3 263
10 533
Income tax
VAT on food
Non-food expenditure
Tax benefit + increased ZUS premium benefit
The fiscal benefit of creating one new job is the sum of spared expenditures for the
unemployment benefit and increased tax income and social security premiums.
Depending on the wages received by the newly employed person, the value of annual
fiscal benefit of creating one new job, for the 2003 data, was in the range of PLN
4 582 to 11 852. Details are given in the table below.
Table 118.
Annual fiscal benefit of creating one new job – minimum and
average annual wage (based on 2003 data)
Minimum wage (PLN)
Average wage (PLN)
Increased taxes and ZUS premiums
3 263
10 533
Spared cost of the unemployment benefit
1 320
1 320
Total fiscal benefit
4 582
11 852
Source: own analyes.
Assuming that creating new jobs reduces the number of unemployed accordingly, we
estimate that the fiscal benefit due to creating 10 265 new jobs as a result of the
realization of RDP amounted to PLN 47.03 million to 121.66 million depending on the
wage received by a newly employed person.
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7.2 Direct investigation analysis of the costs and the social and
economic benefits
7.2.1
Investigation method
Data for the presented analysis were acquired in the following ways:
•
By selection and synthesis of information contained in 250 interviews with the project
beneficiaries and with persons involved in its implementation. Among those
interviewed were persons working at all levels of the RDP organization, beginning
from the gmina offices up to the members of the National Steering Committee and
ministry employees. Information was also gathered in that form from the creditor
representatives (World Bank) and various institutions involved in the execution of
RDP (e.g. training establishments). This information was primarily of a qualitative
character.
•
By the analysis of results of more than 5000 questionnaires collected by means of a
number of research tools. The questionnaires were filled in by the project
beneficiaries, institutions involved in the RDP and the gmina officials. This information
was primarily of a quantitative character.
The method used allows to perform mainly a qualitative analysis of the social and
economic impact of the Project. All the quoted numbers should be treated with caution as
they are only a result of questionnaire investigations and interviews. The interviewed
persons presented their own subjective opinions on the numerical data and indicators,
most often without any documents or preparation for talking about the numbers. With this
method of collecting data, some information was simply not attainable. In most cases that
applied to detailed data which the respondents were unable to recollect during the
interviews. The level of competence and credibility of the interviewed persons was also
differentiated and difficult to assess. More reliable may be estimates of costs connected
with the Project participation, less reliable are the opinions on the economic matters of a
gmina or powiat. Many interviewed persons, aware of their poor knowledge, refrained
from giving any numbers.
Nevertheless, those opinions are a valuable source of information on the social and
economic impact of the Project, in qualitative terms.
7.2.2
General evaluation of the social and economic effects of the
Project
Evaluation of the RDP social and economic effects should be considered in two aspects.
The first is a short-term perspective. In the opinion of all the investigated groups
(representatives of gmina authorities, enterprises, households) the living conditions
improved considerably in a short period of time, particularly in the areas where the
infrastructural investments were realized, and also a general situation of the RDP
participating gminas was improved. The effect of new jobs created, relatively easy to
distinguish, appeared in those gminas where the Component A – micro-loans was
implemented. According to the gmina authorities, the main benefit of the realization of
RDP is the increased investment attractiveness (see Figure 1). New sources of income
for the gminas were a relatively rare outcome of RDP – only in every fifth gmina.
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Figure 67.
Benefits for gminas resulting from RDP
other benefits
6%
new sources of
income
19%
increased
personal
income
16%
improved
conditions of
teaching
4%
increased
investment
attractiveness
29%
development of
tourism
26%
Source: Own research
A common conviction of the beneficial economic effects of RDP should be reflected in the
long-term outcomes. At present, the time scale is too short to evaluate all the quantitative
effects, e.g. better chances of finding jobs by students attending better equipped schools
or an impact of a well operating sewage disposal system on the tourist attractiveness of a
location. The project should not be evaluated only through the quantitative indicators. The
quantitative elements were treated as a starting point for transformation of the rural areas
and, in the opinion of our respondents, such an effect is expected. Therefore, a great deal
of attention was paid in the analysis to establishing the economic correlations generated
by the RDP.
A very important effect of the project was learning how to absorb the support funds. Such
knowledge was acquired on many organizational levels. For instance, in many cases
private training companies (performing orders within RDP) learned how to use the
European Social Fund means132.
Gminas learned that the support funds might be used effectively. The RDP procedures
were for the local governments a valuable lesson how to apply for various support
means, including structural funds. More than 80% of the local governments indicated that
effect. If we take into account the local development plans, necessary for getting support
financing and prepared within Sub-Component B1, it turns out that RDP has initiated a
multiplier effect which will result in faster economic development through more efficient
absorption of the support funds. Also important in this context is the psychological effect:
the RDP participating gminas, encouraged by the success, took to preparing more
technical and construction projects. In the opinion of local government officials, as an
effect of the realization of RDP the offices learned how to use the budget more
effectively, how to improve the organizational structure and how to reduce the office
functioning costs. In the whole country, RDP has left an institutional legacy for the EU
programs, e.g. in the form of the Regional Steering Committee experience. All those
factors will contribute in the future to faster economic development of rural areas.
RDP has also had a meaningful impact on the labor market. Very often underlined is the
effect of Sub-Component B1 consisting in rousing many unemployed from indolence and
132
In many cases contracts realized within RDP allowed private companies to survive on the
market. The economic decline brought tender prices down to a very low level and these contracts
were an incentive for further functioning.
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apathy caused by many years of inactivity and of teaching them how to look actively for
jobs133. The requalifying program caused a multiplier effect. The trained unemployed
made a good example for others and popularized good patterns of behavior in local
environment (e.g. greater mobility). Also the Voivodship Labor Offices shifted the center
of gravity of their activities, thanks to RDP, from administrative functions to active
employment policy (e.g. by contacts with employers and recognizing their needs). The
organizational potential of labor market institutions increased significantly. Qualifications
learned by the unemployed will in longer term cause reduction of social costs (e.g. the
unemployment benefit payments) and will help the present unemployed to contribute to
the local economic growth. It has to be noticed, however, that the assumptions about new
jobs were too ambitious. Comparing with the year 2000, among the RDP gminas the
unemployment rate decreased only in every seventh gmina. Such situation is most often
connected with the general unfavorable economic situation in the country and the
resulting liquidation or restructuring of businesses and job reduction. The RDP means
caused increased number of jobs in every third gmina, where on average 13 new jobs
were created and an estimated unit cost of a work place was PLN 15 770.
7.2.3
Economic effects of Component A
The most important effect of micro-loans was starting of business activities by the
borrowers. Every second loan was used for starting new business. Also a positive impact
was observed on functioning of the existing business units – turnover, profitability and
employment. For majority of the borrowers (73%) obtaining the loan did not cause any
additional costs. Most frequently mentioned additional costs were traveling costs (73%)
and additional work time (39%). It is worth noticing that those costs increased
proportionally to the distance between the borrower and the loan advisor locations.
Average traveling cost per micro-loan was PLN 153. The delays in loan payments caused
lost profit costs but that effect was not frequent. Two thirds of the borrowers were of the
opinion that the micro-loan changed their financial, social or professional situation for
better. The borrowers were not the Component A knowledge multipliers as the loan
granting period was relatively short.
Microloans had a direct impact on creating new jobs. As a rule, they were contracted by
persons starting their business activity. By contracting a PLN ten or twenty thousand
loan, 2 – 5 new jobs were created, mainly for the borrower’s family members.
7.2.4
Economic effects of Sub-Component B1
Training
As an effect of the training, 46% of those questioned found jobs in their place of
residence within 3 months of the end of training. If those are included who found jobs in a
different location then the indicator increases to 48.8%. Only 2% of the questioned
started their own business activity after training. Most of those questioned (63%)
considered the type of their training compatible with the new job, which significantly
helped to find it. Unfortunately, the character of started activity or new job was in most
cases (71%) temporary. Participation in training allowed some of the beneficiaries to go
abroad. A positive effect of such case is the observed transfer of foreign earnings to the
country. Standard of living has improved, but only of the active training participants.
133
Attractiveness of the requalifying programs made some people register in the Labor Offices in
order to get the unemployed status and use the training opportunities offered in the SubComponent.
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Passive persons benefitted much less of the training. However, for both these groups the
training was a “window to the world” and allowed them to see “better life”.
The high effectiveness of training service was undoubtedly caused by the structure of
agreement with the training agency, which made the amount of payment dependent on
the effects. The training firms were well motivated to adjust the training contents to the
needs of local labor markets and specific employers. It would happen that 100% of
trainees found jobs. In this way private companies received well qualified workers and
could develop faster.
Temporary employment services
The temporary employment sevice beneficiaries had a neutral attitude to the chances of
finding a permanent employment. 73% of the beneficiaries thought that their chances
neither increased nor decreased. Almost two out of three persons in that group did not
take up work and did not start any business activity. The most often given reason for that
was lack of the possibility of continuing the temporary work. But greater firms were more
than smaller firms inclined to maintain the newly created jobs, even after the subsidy
period had expired134.
It does not mean, however, that temporary employment did not improve the quality of life
of the beneficiaries. Important are the positive aspects of ending a prolonged inactivity.
The temporary employment allowed to supplement the household budgets. Often
persons were employed from families where both husband and wife had been jobless.
Employment services
The employment service beneficiaries much better estimated their chances of finding a
job. More than half of them (55%) think that their chances of finding a job have increased.
Percentage of those who found jobs thanks to the service is similar (57%). One third of
them see their new job as permanent.
Support centers and incubators of entrepreneurship
Almost two thirds of the beneficiaries of entrepreneurship support centers think positively
of their chances of finding a job. Every fourth beneficiary found employment and 27% of
beneficiaries started their own business activity. At the same time more than 38% of that
group declare that the centers did not help to find job or start own business. Contrary to
other forms of support in Sub-Component B1, clear majority of the customers of
entrepreneurship support centers (61%) are of the opinion that their new job or business
activity are of permanent character.
In the case of entrepreneurship support centers, synergy was observed with Component
A, namely loan advisors worked also in the center offices. The interested businessmen
received more complex service. The so developed business supporting network has been
operating until now. In many cases the entrepreneurship incubators allowed companies
to survive the most difficult period – starting their activities.
In the opinion of gmina offices and labor offices, all the above mentioned services did not
generate significant additional costs. Most often mentioned were typical office and
administrative costs which had to be borne anyway in everyday office operations.
134
In one voivodship the percentage of temporary employment beneficiaries keeping their jobs after
the end of service is estimated at 25%.
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7.2.5
Majority of teachers participating in the training activities (53%) did not bear any
additional participation costs (e.g. traveling, hotel costs) or had their costs reimbursed.
Average traveling cost in the teacher group was PLN 48 and cost of additional required
fees PLN 140. To 41% of the participants, trainings bring additional benefits, e.g. more
free time due to skills learned (70% of indications) or increased number of extra-curricural
activities (37%). Besides, in the opinion of teachers, thanks to the training fewer pupils
repeated class or left school before graduation (29%) and there were more pupils per one
teacher (25%). 20% of the questioned noticed a connection between reduction of the
number of educational establishments and the training realized in RDP. No significant
relation was observed between acquiring new qualifications in the training and new
income sources or change in the professional situation. In the opinion of 88% of teachers,
their status as employees was raised. Very similar are indicators pertaining to the
information technology training participants.
In the school master group, percentage of persons with no additional costs of training
participation was 52%. If necessary, additional traveling costs had to be borne of a value
of about PLN 80 and additional required fees – PLN 160. Directors were more optimistic
in expecting additional benefits from the training (58% of indications). They differ also in
qualifying those benefits. 80% of them indicated more free time due to skills learned and
33% - increased number of extra-curricural activities. Also in this group no significant
correlation was observed between participation in the training and new income sources or
change in the professional situation. For 77% of the school masters, their status as
employees was raised.
The most often mentioned economic effects of the educational infrastructure investments
are lower costs of heating, better natural environment condition and general appearance.
Additional investment costs included the building and investor supervision costs,
designing work, costs of documentation (construction and technical design), heating
audit, costs of expert opinions and additional office work. These were not qualified costs
and were borne by the gminas135. In the case of large investments also a feasibility study
was prepared. Gminas will also have to bear operating costs of new objects. Construction
and repairs of gymnasiums will extend the scope of curriculum in physical training as well
as the school sport club activities. In several cases that will include new therapeutic
exercise.
7.2.6
The Sub-Component B3 activities stimulated optimization of the office structure. Initially it
was connected with liquidation of ineffective work posts but in later stages new services
were formed, e.g. business development service. More client-friendly structures are seen
as one of the investment attracting elements. Officials participating in the SubComponent B3 could improve their qualifications and now they better perform their work.
Also valuable training materials were prepared in the Sub-Component B3 and are now
made available to the interested gminas as public property.
135
Estimates of additional unit costs accompanying the educational investments are PLN 10 000 –
20 000, with investments of an order of PLN several hundred thousand. It is worth noticing that
these were fixed costs, so the project value was directly connected with the effectiveness of
additional costs (the larger the project the smaller the fixed cost share).
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An effect of projects connected with the National Training Program (NTP) was setting up
new business units in every third gmina participating in the project. Most often 2 business
units are created in a gmina.
Figure 68.
Number of business units to be registered as an effect of the NTP
19%
6%
47%
13%
7%
none
2 business units
5 business units
do not know / hard to say
6% 2%
1 business unit
4 business units
more than 5 business units
An effect of NTP are also new jobs in the off-farm sectors. Implementation of the NTP
projects will create new jobs in the off-farm sectors in every second of the NTP
participating gminas.
Figure 69.
Number of new jobs in the off-farm sectors as an effect of the NTP
11%
20%
44%
7%
11%
none
11 - 20 new jobs
1 - 5 new jobs
more than 20 new jobs
7%
6 - 10 new jobs
do not know / hard to say
Almost three quarters of the NTP participants declare that they have not incurred any
additional costs in connection with the project. Half of them see benefits from NTP, such
as:
•
Increased investment attractiveness of the gmina (63% of indications),
•
Increased tourist visits (48%),
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•
Greater personal income (41%),
•
Greater gmina income (67%).
7.2.7
Economic effects of Component C
The most often mentioned effects of infrastructural investments in the RDP participating
gminas is improved quality of life and health conditions. There is also a common opinion
that in longer run the infrastructural investments are a necessary factor in attracting new
investors and stimulating business activity of the inhabitants. Most often, however, the
RDP investments attracted small investors.
In many cases gminas required of the investment executors to employ local unemployed
persons. New jobs were then created, although usually of a temporary character
connected with the investment realization period136. It was most often physical work.
Relatively many such jobs were generated by the water supply / sewage disposal
investments, fewer by the road investments. A social effect of such work was that the
seasonal workers regained their unemployment benefit rights and existence of many
families was improved. In several cases, however, construction of automated sewage
treatment plants caused liquidation of the existing work places. Very often the investment
territories might be qualified in the territorial plans as investment or recreation areas.
Then the interest in such territories usually increased considerably and so did the price.
Each purchase / sale transaction caused a higher legal deed tax to be calculated. The
gmina incomes were also increased from higher real estate taxes. Such situation
occurred when new investors were brought to the developed areas. In some cases the
sewage disposal investments allowed to cease to pay fees to the voivodship office for the
economic use of natural environment, as soil degradation had been stopped. Realization
of the investments did not generate any costs to the gminas. No additional office staff
was employed to serve the investments and the costs involved were of an administrative
character. An important element was the valuable knowledge gained by the gmina
officials in preparing the investment finance support applications, which is now used e.g.
in applying for the structural funds. Sometimes it was necessary to pay damages for
losses caused by construction of pipelines on private premises.
Very often the proper sewage disposal arrangements reduced the epidemiological
hazards (some jaundice cases were even liquidated). Construction of bituminous
pavement roads reduced the dust and exhaust gas content in the air and therefore
improved the health conditions. Liquidation of septic tanks, improved tightness of
settlement tanks raised the water cleanness class of the lakes, which evidently increased
the tourist attractiveness of the gminas. In effect, tourists arrived which stimulated
creation of agro-touristic farms. The existing hotels and camping fields, when connected
to the sewage disposal network, reduced their costs and spared additional means for own
development.
Connecting to the sewage disposal network caused also more just sharing of the
negative external effect costs. New users of the sewerage system had to start paying
fees, but they ceased to pollute the environment (leaking septic tanks, illegal dumping to
rivers etc.).
136
Depending on the type and value of investment, a dozen or so temporary jobs and several
permanent jobs were created in a gmina, e.g. operating a plant, setting up service points etc. For
instance, a PLN 270,000 worth water supply investment would generate 13 new jobs, including 10
temporary jobs.
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The infrastructural investments had also a positive impact on the general appearance. An
example are sidewalks built with the water supply system.
Perception of the Component C economic effects may be different from the point of view
of the local government, household representatives and business people. Therefore, a
more detailed analysis of the economic effects is divided according to those three groups
of respondents.
Economic effects in the opinion of local government representatives
In the opinion of 82% of the representatives of RDP participating gminas, the water
supply investments caused improvement of the living standard of population. Only one in
ten of them indicated new agro-touristic hotel places as an effect of the investment. In 6%
of cases new recreation or touristic areas were allotted after the investment. Relatively
small was the impact of water supply investments on attracting new investors. 38% of the
gmina representatives indicated such effect.
The most important effect of the sewerage system construction was in the opinion of
gmina representatives an improvement of the living conditions of rural population. Such
effect was indicated by 90% of respondents. One third of them indicated greater interest
on the part of investors. Every fourth respondent indicates creation of new hotel places as
an effect of the investment. Construction of the water supply system was very important
for development of the gminas. The most often mentioned aspects of that development
were improvement of the natural environment, better sanitary conditions and an incentive
for business activity.
As the road construction is concerned, the most important and immediately observed
effects were improved road safety (more than 61% of indications) and fewer vehicle
defects (80%). Transport of schoolchildren improved considerably (90%), and also
access to fields and neighbouring villages (80%). Mentioned also were better safety
(connected with e.g. shorter waiting time for ambulance – 100% of indications) and better
business activity conditions (90%). Increased interest on the part of investors is noticed
by 40% of respondents. All the above mentioned factors contribute to a considerable
improvement of the conditions of life. Such an effect was mentioned by more than 90% of
the gmina representatives.
Economic effects in the opinion of household representatives
Also in the opinion of household representatives, the infrastructural investments
considerably improved the living conditions in the respective gminas. Also improved are
the general appearance of villages (21% of indications) and the health situation (13%).
Every tenth village inhabitant indicated an increased investment attractiveness of the
gmina where he/she lived. Relatively few indications mentioned correlation between the
RDP investments and improved farming conditions, own business activity or social
activity. Positive answers to a question concerning new sources of income, improved
financial or work situation are within a statistical error.
The sewerage system investments, in the opinion of household representatives, were not
connected with creation of new jobs. Only 12% of respondents can indicate people who
found employment in connection with such investment. Connection of a household to the
sewerage network did not cause repairs of other compartments (e.g. bathrooms).
Additional jobs were not generated in this way as repairs, if any, were performed by the
household members.
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Construction of new roads was clearly connected with the improvement of the conditions
of life (almost 40% of positive indications and 4% negative opinions). The most important
improvement factors were: easier transport of schoolchildren, better road safety and
shorter access time to neighbouring villages. Road construction had little effect on the
traffic safety and the number of vehicle defects.
Economic effects in the opinion of business people
In the group of investigated business units, more than two thirds were of the opinion that
the infrastructural investments had a great impact on the long term business activity. In
that sense, the most important investments were water supply networks and good roads.
However, in shorter time the realization of infrastructural investments was not connected
with additional production or service capacity. The investments were also neutral as
regards the costs of functioning of business units and the employment decisions. As a
rule, no new sources of income appeared with those investments. Also there was little
connection between a company location decision and the investment. However, the
infrastructural investments were of great importance for further business development
and also for the investment attractiveness of a gmina, improvement of living conditions
and increased business activity of the inhabitants. In the opinion of business people,
infrastructural investments caused price increases of arable land and building lots as well
as extension of investment areas. What is important, in their opinion the infrastructural
investment realizing gminas might expect new investors.
7.3 Comparative (benchmarking) analysis of project effectiveness
In order to evaluate the Project effectiveness, comparison was made of effects and
expenditures and then the obtained indicators were compared with available data from
other programs or, for the construction work, with tender data.
As the reports from analysed programs not always contained all the data of interest to the
consultants, different projects will be a reference point for the individual indicators.
In the projects where data were given in EURO or USD, expenditures and costs were
converted at a mean exchange rate of 4.09 PLN/ EURO and 4.01 PLN/ USD. Those
exchange rates are mean values for the years 2000 – 2004. Assuming a mean value of
exchange rate is a simplification but from the available data it was not possible to
evaluate the expenditure distribution over time and assign the then valid exchange rates.
Among the realized projects is the ASAL project from the years 1994 – 1997. As eight
years have passed since the completion of ASAL and inflation from 1997 was about 70%,
then as an exception for that project a direct recalculation was made of the project
expenditures into the 2005 prices. The expenditures had to be recalculated in order to
ensure comparability of data.
One of the sources of comparisons was the Bulletin of Public Procurements. Selected
from it were a number of biddings from the years 2001-2004 in the water supply,
sewerage and road construction branches, wherever the financial and quantitative
information was available and the character of work was similar to that of RDP.
It has to be remembered that the comparisons given below are of illustrative character
and may be inaccurate due to specific features of each of the compared projects and
their internal non-uniformity. These factors may make the effects difficult to compare.
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Attention has to be drawn to the fact that in the infrastructural investments the basic
objective is to improve the technical standard of living of the population and not to
generate new jobs, therefore the cost of creating a new job as a quotient of the
investment expenditures and the number of new jobs created will be in this case
exceptionally high and incomparable with e.g. the micro-loan or training Component.
7.3.1
Microloans
Due to lack of sufficiently reliable data, it was not possible to analyse the Component A
effects against results of other projects. Nevertheless, the cost of creating one new job
(PLN 4 268), calculated as the value of Component A minus the value of repaid loans
and divided by the number of created new jobs must be considered low.
However, data were available to compare the organizational efficiency in granting RDP
micro-loans against the efficiency in other projects and institutions.
The average sum of loan granted in RDP was 43% higher than the average of seven
projects (institutions), including RDP. The RDP loans were relatively high, therefore their
importance for starting (or maintaining) business activity and creating jobs was
considerable.
Figure 70.
Average value of a loan granted within the analysed projects and by
financial institutions (thous. of PLN)
20
16
12
17,1
8
14,3
12,6
4
6,4
5,7
3,6
1,8
0
RDP
110 selected 12 micro-loan
institutions in
micro-loan
Eastern
institutions
European
countries
Fundusz
mikro
Inicjatywa
mikro
loanable
funds (72
loanable
funds in
Poland)
MicroCredit
Fund
Source: Project realization reports, data of financial institutions, own analyses
Average cost of a loan was relatively high. However, it should be noticed that the loan
value was relatively high and percentage of lost loans exceptionally low. Besides, the
cost of loan is comparable with that in the Polish banks. It is, however, much higher than
the cost of loans granted by the Eastern Europe funds and the more so with loans
granted by funds in other parts of the world where labor costs are much lower.
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Figure 71.
Average cost of granting a loan per one borrower within the
analyzed projects and by financial institutions (thous. of PLN)
1,5
1,2
0,9
1,31
0,6
1,25
0,92
0,3
0,36
0,0
RDP
110 selected micro-loan
institutions
12 micro-loan
institutions in Eastern
European countries
Bank X (Poland)
Efficiency of the credit officers (loan advisors) is on a good level among the investigated
institutions (projects). Higher efficiency was achieved only with much lower loan values.
Figure 72.
Efficiency of credit officers in the analyzed projects and financial
institutions (number of borrowers/ credit officer)
350
280
210
326
308
140
194
171
70
90
67
0
RDP
110 selected
micro-loan
institutions
12 micro-loan
institutions in
Eastern
European
countries
Bank X (Poland) Bank Y (Poland)
BOSPO
No reliable data were available to compare the cost of creating one new job137. It may be
assumed, however, that the cost of creating one new job in the Project, i.e. PLN 4,300,
was low.
137
That cost is a value of Component A minus the sum of loans granted and divided by the number
of new jobs, according to MIS.
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7.3.2
Training
As the available information on training and its effectiveness is scarce, it was only
possible to compare the average cost of training and percentage of people who took up
work after training. The comparison included, apart from RDP, also data from the
SAPARD project, PHARE – Inicjatywa project and from the Ministry of Economy and
Labor (MEL) on the labor market and unemployment prevention programs in 2003,
published in the “Report on the labor market and social security”.
The above mentioned data show that the average training cost in RDP was the highest
among the compared projects, but we do not have accurate information on the type of
training in SAPARD and in the government programs. Cost of one training day may be
significantly different depending on the subject, number of trainees and many other
factors. Therefore, the results of comparison should be treated with great caution.
Figure 73.
Average cost of training per person (PLN/ person)
1 000
800
600
980
863
400
794
540
200
0
RDP
SAPARD
Government Programs
in 2003
Average
Percentage of persons who started work after training is relatively high, although no exact
data on the duration of such employment are available. Conclusions may be drawn from
field investigations that for 2/3 of those trained the effect was not durable. For
comparison, in the “Inicjatywa” project only ¼ of those initially employed kept the
employment.
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Figure 74.
Percentage of persons who started work after training
42%
35%
28%
21%
14%
40,2%
31,8%
31,1%
24,0%
7%
0%
RDP
Program PHARE Inicjatywa
Government Programs
in 2003
Average
7.3.3
Construction of water supply networks
For the comparison of effectiveness of spending the water supply investment means,
information was used from the SAPARD, FDL, ASAL projects as well as bidding data for
the water supply system construction work, published in the Bulletin of Public
Procurements. As mentioned earlier, the ASAL project financial data were indexed by the
inflation rate since 1997, i.e. 70%.
Average construction cost of one kilometer of the water supply system is lower than in the
compared projects and only slightly higher than a market cost of that type of work
performed on the tenders quoted in the Bulletin of Public Procurements.
Figure 75.
Average construction cost of 1 kilometer of water supply system
(thous. of PLN/km).
75
60
45
75
30
60
56
46
43
15
0
RDP
SAPARD
FDL
Open public bidding
2003-2004
Średnia
Note: Network construction costs in RDP do not include the water conditioning station expenditures.
Source: Project realization reports, Bulletin of Public Procurements, own analyses
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Average cost of one connection is very low. We do not have more precise information on
the comparability, i.e. whether in the compared projects any other costs were included,
e.g. the water conditioning station.
Figure 76.
Average cost of one water supply connection (thous. of PLN/ conn.)
7,5
6,0
4,5
6,5
3,0
6,0
6,0
6,0
FDL
ASAL (estimates)
Average
3,5
1,5
0,0
RDP
SAPARD
Note: Connection costs in RDP do not include the water conditioning station expenditures.
Source: Project realization reports, own analyses
Average cost of creating one new job is also very low and as in the case of network
construction, we do not have information whether in the compared projects any other
costs were included, e.g. the water conditioning station.
Figure 77.
Average cost of creating one new job in the construction of water
supply system (thous. of PLN/ one new job)
140
105
70
129
35
76
75
ASAL (estimates)
Average
47
0
RDP
FDL
Note: New job creation costs in RDP do not include the water conditioning station expenditures.
7.3.4
Construction of the sewage disposal networks
For the comparison of effectiveness of spending the sewage disposal network investment
means, information was used from the SAPARD, FDL, ASAL programs as well as bidding
data for the water supply system construction work, published in the Bulletin of Public
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Procurements. As in the analysis of water supply system investment effects, the ASAL
program financial data were indexed by the inflation rate since 1997, i.e. 70%.
Average construction cost of one kilometer of the sewage disposal network is lower than
the market values published in the Bulletin of Public Procurements from the actual
contracts. The sewage disposal network construction cost does not include the sewage
treatment plant costs.
Figure 78.
Average construction cost of one kilometer of sewage disposal
network (thous. of PLN/ km)
350
280
210
333
140
70
274
205
169
189
0
RDP
SAPARD
FDL
Open public
Average
bidding 2001 2004
Note: Network construction costs in RDP do not include the sewage treatment plant expenditures.
As the construction cost of one kilometer of the sewage disposal network, also the cost of
one connection is low.
Figure 79.
Average cost of one sewage disposal connection (thous. of PLN/
conn.)
20
16
12
17,5
8
14,3
13,3
4
8,3
7,7
0
RDP
SAPARD
FDL
ASAL (estimates)
Average
Note: Connection costs in RDP do not include the sewage treatment plant expenditures.
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Cost of creating one new job in the construction of sewage disposal network, without the
sewage treatment plant expenditures, was PLN 137,000. With the sewage treatment
plant expenditures, the cost of creating one new job in RDP would be PLN 172,000.
Figure 80.
Average cost of creating one new job in the construction of sewage
disposal network (thous. of PLN/ one new job)
280
210
140
254
209
137
70
77
0
RDP
FDL
ASAL (estimates)
Average
Note: New job creation costs in RDP do not include the sewage treatment plant expenditures.
7.3.5
Road repairs
For the comparison of effectiveness of spending the road investment means, information
was used from the SAPARD, FDL program as well as bidding data for the road
construction work, published in the Bulletin of Public Procurements.
Average road repair cost financed from the RDP was 11% higher than the bidding values
published in the Bulletin of Public Procurements.
Figure 81.
Average repair cost of one kilometer of road (thous. of PLN/ km)
350
280
210
140
307
349
276
333
70
0
RDP
SAPARD
Open public bidding
2003 - 2004
Average
Average cost of creating one new job in the road works in RDP was PLN 55,000 and was
considerably lower than in FDL. We have no knowledge of the type of contracts
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concluded by the FDL units and in particular of the technologies used, which may
significantly influence the cost of one workplace.
Figure 82.
Average cost of creating one new job in the road construction
(thous. of PLN/ one new job)
100
80
60
90
40
73
55
20
0
RDP
FDL
Average
7.4 Statistical analysis
7.4.1
Subject of investigation
Subject of the statistical analysis was investigating the cause-effect relation between the
Project intensity indicators in the individual territorial units (powiats and gminas) and the
social and economic effects corresponding to the basic Project result indicators.
For the analysis in question, the following indicators were assumed as a measure of the
Project intensity in its individual Components (outputs):
•
Number of loans granted in Component A,
•
Number of beneficiaries in Component B1,
•
Value of the financial means spent in Component C.
For this analysis, the following values were assumed as indicators of the Project
outcomes:
•
Change in the number of registered private business units – in Components A, B1
and C for powiats and additionally in Components A and C for gminas;
•
Change in the value of the local government income from the share in personal
income tax138, in Components A, B1 and C for powiats and additionally in
Components A and C for gminas;
138
An additional simplification was used in the income of powiats as it appeared difficult to obtain
data on the budget income from that source; according to the regulations, the gmina share in
personal income tax is 27.6% of taxes collected on the gmina territory, the powiat share is 1% of
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•
Change in the number of private sector employees – in Components A, B1 and C for
powiats and additionally in Components A and C for gminas.
The Component B1 analyses at the gmina level were impossible due to the method the
data on beneficiaries were recorded – they were available at the powiat level only.
7.4.2
Methodology of the analysis
In order to determine the cause-effect relation between the Project intensity indicators in
the individual territorial units and the social and economic effects of the Project (outputs
and outcomes), the correlation between those values was analysed by calculating the
linear correlation coefficient defined as:
By calculating the correlation coefficient, with a relatively large group of the territorial units
it was possible to eliminate partly the impact of disturbing factors influencing the changes
in employment, business activity or wealth in the individual gminas or powiats.
The use of individual result indicators is justified as follows:
•
Increased number of private sector jobs is most coherent with the assumed Project
objective: „number of created off-farm new jobs in gminas participating in the project”;
by neglecting the increase in public sector jobs we wanted to eliminate the
„bureaucratic” jobs as it is mainly there that the public sector generates new jobs
these days;
•
Increased share of the local government units (gminas and powiats) in the personal
income tax is roughly proportional to the off-farm incomes of the population (the
agricultural activity does not generate that tax); the not full proportionality is caused
by a tax free sum, progressive tax scale and different cost of drawing the income,
usually higher in the individual business activity (this problem is discussed later in the
report); nevertheless, this is the best available and most reliable indicator of the offfarm incomes;
•
Increase in the number of business units, according to the REGON records, is also
disturbed to some extent because it includes large companies and individual
business activity; additionally, the business activity suspending units are not deleted
from those records; but with reasonable accuracy the increase in REGON register list
may be treated as increase in the number of new individual business units.
It should be mentioned that these data are available and identically defined in the GUS
reports for the years 2000, 2001, 2002 and 2003.
We are aware that the proposed method of analysis may only show relation between
intensity of the Project in a given territorial unit and short term effects visible before the
taxes collected on the powiat territory, so the powiat income was estimated by summing up
incomes of the respective (powiat forming) gminas and dividing the sum by 27.6.
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end of 2003. The long term effects, the main target of the Project, will be measurable
when a similar analysis is performed within the next several years. However, each of the
investigated Components A, B1 and C had also short term effects of a significant social
and economic importance. Such effects include:
•
Creating new business units (or preventing the existing ones from insolvency) and
employing new workers shortly after receiving a micro-loan by them.
•
Finding new job by the Component B1 beneficiaries soon after taking part in the
Project,
•
Setting up businesses, creating new jobs and generating additional income in gminas
and powiats when the infrastructural investments have been carried out.
Evidently the long term effects, such as increased business attractiveness of the area
with improved infrastructure or the multiplier effect of new businesses, jobs and increased
wealth, will not be noticed or will be noticed only to a minimum degree. There is no
method of measuring these relations now. Conclusions may be drawn only indirectly from
the experience of other similar projects, although such conclusions might be highly
speculative, taking into account the specificity of RDP and exceptional circumstances of
the accession to the European Union.
At the time of this analysis no statistical data for 2004 were available. Therefore statistical
data for the years 2000-2003 were analysed. In order to achieve compatibility of data and
effects, expenditures until the end of 2003 were taken for Component C. Unfortunately, it
was not possible to separate the loans granted in Component A till the end of 2003 or
persons trained in Component B1 till the end of 2003, so for those Components data
were assumed from the whole Project realization period.
The number of gminas in the analysis is different for different Components – it
corresponds to the number of gminas that the beneficiaries came from. Also the number
of powiats in the analysis is different for different Components, but it is not equal to the
number of powiats the beneficiaries came from, because:
•
Among the powiats the beneficiaries came from were (sometimes) municipal districts;
those towns, often with significant increase of employment (active businesses) and
with great changes in budgets would disturb the analysis and therefore they were
excluded from the analysis;
•
Among the powiats the beneficiaries came from were powiats which changed their
boundaries in the analysed period (there were 38 such powiats in the country); that
caused changes in the level of employment (and changes to the number of new
jobs), new business units and budget income; that would also disturb the analysis
and therefore those powiats were excluded from the analysis;
The analysis took into account those powiats (with the exclusion of the above mentioned)
which were themselves Project beneficiaries or their inhabitants (or gminas) were
beneficiaries, and a powiat was included in the analysis even if just one gmina was a
beneficiary.
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Table 119.
Number of gminas and powiats included in the analysis, depending
on the Component
Component A
Component B1
Component C
Number of gminas
538
0
481
Number of powiats
84
118
215
In the analysed gminas 4605 loans were granted and 4040 loans in the powiats. The
number of loans in powiats is lower than the number of loans in gminas as some powiats
were excluded from the analysis. In the analysed gminas where Component A was
realized 54,800 new business units were created, 10,500 jobs were liquidated and the
amount of budget incomes from personal income tax was reduced by PLN 64.4 million.
Table 120.
Changes in the number of business units, incomes and employment
in gminas and powiats taking part in Component A in the years 2000
– 2003
Gminas
Powiats
Number of loans granted
4 605
4 040
Change in the number of business units
54 859
54 862
Change in the number of business units (%)
11,5%
13,4%
Change in incomes from PIT (millions of PLN)
-64,4
-2,9
Change in incomes from PIT (%)
-5,7%
8,0%
-10 476
-1 401
-1,9%
-0,3%
Change in employment in private sector
Change in employment in private sector (%)
Source: own analyses, RDP MIS, GUS data from the Poland 2001, 2002, 2003, 2004 blocks.
In the analysed powiats there were 62,000 beneficiaries in Component B1. With such a
large number of trained persons, the private sector employment was reduced by 4,700
persons, which was 0.7% of the number of employed in 2000. That reduction was caused
by the increasing economic recession.
Table 121.
in powiats taking part in Sub-Component B1 in the years 2000 –
2003
Powiats
Number of trained persons
62 019
82 974
14,8%
-4,2
-8,3%
-4 696
-0,7%
Source: own analyses, RDP MIS, GUS data from the Poland 2001, 2002, 2003, 2004 blocks.
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In the analysed gminas the Component C assigned means amounted to PLN 366.5
million and to PLN 432.2 million in the powiats (these means do not add up as most of
the analysed gminas were part of the analysed powiats). The powiat means include the
gmina means and money spent on projects where beneficiaries were powiats as such.
Table 122.
in gminas and powiats taking part in Component C in the years 2000
– 2003
Gminas
Powiats
Value of assigned means (millions of PLN)
366,5
432,2
42 295
90 973
13,7%
14,1%
-50,1
-4,0
-7,0%
-7,2%
3 677
4 667
1,0%
0,6%
Source: own analyses
The following correlation coefficients were obtained from the analysis of effects and
expenditures (number of loans, number of trained persons, money invested):
Table 123.
Coefficients of correlation between participation of beneficiaries in
Components A, B1 and C and the analysed statistical data
Increase of
income from PIT
Increase of private
sector employment
Increase of
the number
of business
units
A – number of micro-loans in gminas
-0,085
0,048
0,006
A – number of micro-loans in powiats
-0,146
0,180
-0,032
B1– beneficiaries in powiats
-0,033
-0,159
0,171
C – investment expenditures in
gminas
0,019
0,098
0,190
C – investment expenditures in
powiats
-0,234
0,051
0,398
Component / Indicator
Source: own analyses
7.4.3
Comments on results and conclusions
The calculated correlation coefficients indicate that there is no noticeable relation
between the Project intensity on a given territory and the short term increase of the offfarm incomes and employment in private sector. The reasons of that are the following:
1. The investment expenditures in the project are too low per a territorial unit (gmina or
powiat) to change significantly its social and economic situation – particularly the
level of employment and wealth.
2. The analysed period (2000-2003), as the most recent GUS data are from the year
2003, does not allow to take into account full effects of the project, i.e. the year 2004
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and later. It may be expected that long term effects evaluated by the same method
will be statistically more significant.
3. In the analysed years, many circumstances cumulated influencing the analysed
indicators, namely:
a. economic slowdown in the whole country,
b. significant increase of unemployment in the country,
c.
multitude of the accession programs influencing the same social groups and
territorial units,
d. changes in the wage and tax regulations (particularly the so called pension
reform), causing sharp increase of „self-employment” after the year 2000.
The correlation coefficient determination method eliminates part of the cause-effect
relation disturbances, provided they are of a statistical character and the analysed
sample is very large. But not all disturbing factors may be eliminated by calculating
correlation..
4. Some of the newly employed or new business units might take jobs and market away
from others. For that reason the absolute increase might have been smaller than the
number of persons who found jobs through the Project, the more so that those were
years of the economic slowdown. But even in such cases there may be some
advantage as worse thing is driven out by better.
The personal income tax is not fully proportional to the off-farm income. This is due to the
fact that the single person business units may temporarily pay lower taxes than
employees with a similar income. Therefore the correlation between the increased
number of such units and the tax may be even slightly negative at the beginning – this
can be seen in our analysis.
Noticeable but also weak correlation may be seen between the infrastructural investment
expenditures and the increased number of business units. It may be assumed that
execution of significant infrastructural investments caused boom in the respective
construction branches. As the work and deliveries were contracted through biddings, a
condition of participating in them was „formal” employment or business activity and in
effect new business units were set up also by those working so far on the “black market”.
Correlation between infrastructural investment expenditures and the number of new
business units is greater for powiats than for gminas. That may be due to the fact that the
investment work and deliveries in one gmina usually engage firms and people from the
neighbouring or more distant gminas and business units are often registered in the powiat
towns and not in their own gminas.
Summing it up, direct impact of the Project on the increase of employment, incomes and
wealth in the years up to 2003 was hardly noticeable. It cannot be excluded, however,
that such positive effects will be seen in the future. An empirical proof of that will be found
by repeating the analysis in the next years.
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The scale of fiscal benefits due to creating 10 265 new jobs in the RDP, calculated with
an updated at the end of 2003 methodology and macroeconomic data, amounted to a
sum from PLN 47.03 million to PLN 121.66 million, depending on the wage a newly
employed person received.
This benefit is only one of many. The complexity of RDP is connected with a spectrum of
economic effects. Not all the relations can be caught within a few months after the end of
the project. From the direct investigations it may be found that relatively soon have
appeared effects of the granted micro-loans and subsidies as well as of some labor
market dedicated services. Full effects of the infrastructural investments and effects of
the increased institutional potential of local governments will take some more time. The
greatest delay between the expenditures and sustained effects will be in the educational
activities. Undoubtedly the RDP has created foundations of faster economic development
of rural areas through:
•
preparing investment sites,
•
better effectiveness of administration,
•
activisation of the unemployed,
•
development of a network of business supporting institutions.
That development will probably be strengthened through the support funds, which have
now become much easier obtainable to the RDP participating gminas. The quality of
living conditions of the rural population from the RDP covered territory has already visibly
improved and there are first symptoms of practical investment activity of business units
there. Also meaningful is the positive impact of the project on the local labor markets.
Many unemployed have been awakened from apathy and inactivity after many years of
joblessness. Even short term actions consisting in temporary employment had a very
positive impact on the family budgets. The costs of participating in the project on the part
of beneficiaries and the RDP implementing gminas were low. They were usually limited to
some administrative and traveling costs and devoting some spare time to it. However,
these conclusions, drawn from direct investigations, are of qualitative character and do
not allow to evaluate the scale of effects.
Comparing with other similar projects (within individual Components as there were no
other analogous projects), RDP looks well, both in terms of cost effectiveness and
material efficiency. Moreover, comparison with the open tender indicators (taken from the
Bulletin of Public Procurements), close to the market values, also showed similarity to the
RDP results. A cautious conclusion may be drawn (taking the significant differences of
the projects into account) that the public money spending mechanisms in RDP were
effective and there was no money squandering in statistical terms (there might have
been, though, isolated cases of that).
Analysis of the correlation between the Project intensity indicators within the Components
A, B1 and C (outputs) in the individual gminas and powiats and the main Project result
indicators (outcomes), i.e. increased employment, incomes and wealth gives in most
cases close to zero results. That leads to a conclusion that the impact of RDP on the
economy of participating territorial units was hardly noticeable in the years up to 2003.
This is a statistical conclusion and limited to the short term effects only. One of the main
reasons of weak macroeconomic effects of RDP was its broad scope and therefore the
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concentration of expenditures in a single gmina or powiat was too small to change the
economic situation in a radical way. It is possible that similar analysis will bring more
visible long term impact when the multiplier effects of the Project become evident.
379
Final Evaluation Study of the Rural Development Project – Evaluation of Project management
Tomasz Majewski, Maciej Gajewski, Ewa Gąsiorowska, Piotr Wróbel, Ph. D.
8 Evaluation of the institutional and
organizational solutions and the quality of
Project management
Tomasz Majewski, Maciej Gajewski, Ewa Gąsiorowska,
Piotr Wróbel, Ph. D.
381
8.1 Introduction
The Rural Development Project was formally started on 25 July 2000 when the Polish
government and the International Bank for Reconstruction and Development signed a
credit agreement for its realization. Formal closing of the Project, originally scheduled for
31 January 2004, is to take place on 30 June 2005.139
This evaluation of the Project management system is based on the information from three
main sources: (a) from the Project organizational structure and obligatory procedure
describing documents, (b) from records of a report character documenting the Project
realization and results of control operations in the process, and (c) from the results of
questionnaire investigation of more than thirty groups of respondents pronouncing on the
Project course and results.
Among the documents confirming formally the applied procedures, particularly interesting
are the Project Appraisal Document (PAD) and the Operational Manual together with its
annexes. They describe the tasks and mutual relations of all the important institutions
participating in the Project. Remarkably much room is devoted to the institutions specially
set up for the realization of RDP, i.e. the National and the Regional Steering Committees,
Project Coordination Unit and Voivodship Project Implementation Units.
This chapter presents also some of the internal use documents prepared by the
institutions participating in the Project. Typically, those documents give details of the
basic project documents.
Characteristic of the Rural Development Project is the very rich reporting documentation
due to its complex organizational structure – both vertical and horizontal. It reflects also
the high priority that the monitoring function has been given in the Project. In the
information of a reporting character the following may be distinguished: constantly
updated MIS (Management Information System) and MIS B1 databases, periodical
reports, prepared by the Project Coordination Unit and presented to the National Steering
Committee and the World Bank and devoted to the realization of the whole Project, and
also reports on the individual Components prepared by the respective participating units.
Specific place in the Project monitoring document list takes the Supreme Chamber of
Control (NIK) report. Published in August 2003, the report documents the results of
control carried out from January to March 2003. It summarizes the then far from
satisfactory results of the Project and formulates critical opinions on the Project
organization as the main cause of the difficulties. It presents also to the Project managing
institutions postulates aimed at avoiding similar difficulties in the future. In a natural way,
that document constitutes a reference point for the authors of this final appraisal. The
information, opinions and suggestions contained in it will be referred to and commented
upon further in this chapter.
Most of the research tools used in the questionnaire investigation performed specially for
the final appraisal, contained questions on such problems as: activities of the Project
realizing institutions, level of services provided to persons and institutions taking
advantage of the Project offers or respondent opinions on the weaknesses and strengths
of the Project organization and desired changes.
139
382
The Project final appraisal study was prepared between December 2004 and May 2005.
The questionnaire investigation results have been made use of in this chapter in two
ways:
•
two subchapters discuss collective opinions of respondent groups which include
Project beneficiaries, local government representatives (depending on the
Component – in a double role of beneficiaries or Project organizers at the lowest
level) and the RDP implementing institutions at the national and regional level;
•
subchapter presenting an evaluation of usefulness of the RDP solutions for future
project management conception.
8.2 The conception of Project management
Conception of the scope of activities and an appropriate organizational form of the Rural
Development Project was created during joint work of the World Bank experts and the
Polish government representatives. The worked out terms and provisions were first
presented in March 2000 in two almost simultaneously published documents – the Project
Appraisal Document (PAD) prepared by the World Bank experts and the “Operational
Manual” which was then made an appendix to the credit agreement concluded between
the Polish government and the World Bank.
It is worth noticing that according to the Supreme Chamber of Control (NIK) report „it was
permitted that the objectives and method of using the Project credit were determined by
the World Bank and not by the Polish side (…). The Project Appraisal Document
prepared for the World Bank by a team of its experts had not taken into account all the
remarks put forward by the Ministry of Agriculture and Rural Development and had not
obtained a formal acceptance of the borrower but it was a basis for preparing the credit
agreement.”140
As the Project Appraisal Document was devoted first of all to the presentation of
assumptions and general form of the Project, the Manual was concentrated on the
practical aspects of its realization, such as description of the planned actions, proposals
of subdivision of the tasks between the parties involved or of working procedures,
together with proposed contents of the essential documents.
The conception presented in both those documents took into account some specific
features of the Project, making it organizationally very complex and at the same time a
novel undertaking:
•
High priority was given to obtaining a strong involvement of the representatives of
local and regional governments („Premise of active participation”). The use of active
participation approach is of key importance to the whole regional development
conception. The local government should be included into the decision making
process of fund allocation, in other words support without involvement of the
beneficiaries carries a risk of longer term inefficiency and may lead to an excessive
dependence. Besides, the use of an active participation approach is required by the
present process of decentralization of the administrative functions and financing in
Poland, where the voivodship governments have an obligation to present to the
national government a proposed regional development plan. Having that in mind, the
RDP has been designed with the bottom-up approach. The applications for financial
140
„Information on the results of control of the sources and use of means of the Poland Rural
Development Project” Supreme Chamber of Control, Warsaw, August 2003.
383
support within the Project were submitted by the interested gminas, powiats and
voivodships. Those applications reflected the priorities determined in the local
development projects and as such they were approved by the local governments.
Regional Steering Committees were set up with participation of representatives of all
social groups and their task was to work out a ranking list of the presented proposals.
•
Some social analyses were performed in parallel in order to adjust best the Project
structure to the local needs and priorities.”141
•
Working procedures, prepared by the World Bank, different from the legal solutions in
force in Poland, were proposed as obligatory in the Project.
•
The activities planned in five Components and Sub-Components of the Project were
a subject of interest to five ministries; in each of the ministries, except the Ministry of
Finance, groups of specialists were set up to deal with the Project and in particular
the Component or Sub-Component of interest to a ministry (Project Teams),
•
A substantial part of the work was to be ordered with external executors selected by
open bidding.
The Project planners, attempting to organize each of the Project Components and SubComponents in a most effective way, devised and presented in the project documents
five separate and basically different organization plans. The organizations listed in the
table below took part in realization of each of the Components in a network of relations
specific to that Component.
Key factors having a decisive impact on the degree of complexity of the Component
organization plans were decisions on which selected tasks would be ordered with
commercial service companies and which institutions would be chosen to supervise the
realization of those tasks. Those decisions, together with estimated values of the planned
contracts, caused, as a consequence, decisions on the selection of: (a) procedure – from
among the available World Bank procedures, applicable to the bidding in question,
(b) contract realization monitoring method, (c) work accounting procedures and methods
of payment.
The need of coordination of the activities of many national and regional institutions was a
reason of setting up a number of new organizations as decision making and
administrative bodies, designed from scratch for serving the Project. On the national level
this is the National Steering Committee (a decision making body) and the Project
Coordination Unit (administrative support). Their regional level counterparts are the
Regional Steering Committees (decisions) and the Voivodship Project Implementation
Units (administration).
In effect, the overall Project (and its Components) organization plan presented in the
Project documents has several specific features:
•
141
384
It was prepared with an assumption that the institutions responsible for Project
realization would use their own earlier used procedures, in order to get them
implemented quickly,
PAD, p. 11.
•
Key national and regional level Project institutions just started their activity or did not
exist yet at the time of beginning of implementation,
•
The Project realization method – in its target version – was to be an outcome of four
complementary elements: (1) the World Bank imposed methods and procedures, (2)
organizational solutions and resources of the Polish national, regional (voivodship)
and local (powiat, gmina) level offices, (3) work practice applied by the specially set
up Project serving units and (4) methods of work of the subcontractors performing
tasks defined in the respective contracts; details are presented in the table below.
Table 124.
Organizations involved in realization of RDP
Level of
involvement
National
Type of organization
World Bank
World Bank
Office in
Poland
Polish permanent
institutions
Ministry of Agriculture and
Rural Development
Ministry of Economy and
Labor142
Polish special
institutions
National
Steering
Committee
Ministry of Finance
Project
Coordination
Unit
Ministry of National
Education and Sport
Project Teams
in Ministries
Ministry of Interior and
Public Administration
Subcontractors
National
Economy Bank
Consultants
(technical
assistance)
Service
providers (e.g.
training)
Suppliers
Agency for Reconstruction
and Modernization of
Agriculture
Regional
Marszalek Offices
Voivodship Labor Offices
Voivodship Education
Supervision Offices
Regional Branches of the
Agency for Reconstruction
and Modernization of
Agriculture
Local
Regional
Steering
Committees
Voivodship
Project
Implementation
Units (VPIU)
Consultants
Service
providers
Suppliers
Powiat Labor Offices
Consultants
Powiat Starosta Offices
Service
providers
Gmina Offices
Suppliers
Source: own study
Rural Development Project is therefore an organizational experiment based on complex
assumptions, broadly conceived, having complicated implementation process and not
unequivocal results.
142
As of April 2005.
385
8.3 Institutions and functions of the Rural Development Project in
the light of program documents
National Steering Committee was established to „(…) distribute the Project means
among the voivodships, supervise the Project implementation, analyse the annual audits,
solve all the problems arising in the coordination process and approve amendments to
the Operational Manual.”143 Members of the Committee are representatives of the
ministries participating in the Project and two representatives of the Convent of
Marszaleks. Minister of Agriculture, as the NSC Chairman, was supposed to invite
representatives of the Ministry of Environment, European Integration Committee,
Chairmen of the Rural Gmina Association and Powiat Association to take part in the NSC
activities..”144
Tasks of the Project Coordination Unit (PCU) are described as follows: „The National
Steering Committee will be supported by the Project Coordination Unit located in the
structure of the Foundation for the Assistance Programs for Agriculture (FAPA), an
independent agency reporting to the Minister of Agriculture and Rural Development (…).”
PCU is „responsible for overall coordination of the Project and will also fulfill a function of
secretariat to the National Steering Committee. The Project Coordination Unit will receive
periodical progress reports from VPIU and from program teams in the respective
ministries. It will also prepare summary reports for the government, Bank and in
appropriate scope for other co-financing organizations. The Project Coordination Unit will
be responsible for organizing the Project initiating workshops and for ensuring support for
all the Project management levels.”145
Reasons for setting up Program Teams in the ministries have been presented in the
Operational Manual: „Each ministry participating in the Project will nominate a group of
persons or authorize an external unit to perform the monitoring functions. Minister of
Agriculture and Rural Development will sign Implementation Agreements with each
minister responsible for implementation of a Component. The agreements will determine
obligations of the parties and the procedure of financial means reallocation from one
ministry to another if it turns out during Project realization that the necessary scope of
work in a task is smaller than planned.”146
The Regional Steering Committees are characterized in the Operational Manual as
follows:
„The Regional Steering Committees are formed in each voivodship included in the
Project. The Committees will perform the following functions:
•
Approval of projects prepared by gminas and appraised by the Voivodship Project
Implementation Units, establishing project hierarchy based on the project importance
to the regional development, gmina financial contribution and the economies of scale.
•
Concluding agreements with the National Steering Committee for assigning the
Project financial means to the participating voivodships. The agreements will be
based on the financial means allocation criteria formulated by the National Steering
Committee (e.g. percentage of population living in rural areas) and will be signed by
143
Project Appraisal Document, 21 March 2000, p. 17.
Project Appraisal Document, 21 March 2000, p. 17.
145
Ibidem, p. 18.
146
Operational Manual, 9 March 2000, p. 8.
144
386
Marszalek as Chairman of Regional Steering Committee and Minister of Agriculture
and Rural Development as Chairman of the National Steering Committee.
The Regional Steering Committee will work under the chairmanship of Marszalek of
voivodship and will be composed of representatives of local governments, education,
chambers of commerce, agriculture, industry, trade and non-governmental
organizations.”147
It as assumed that „functions of the Voivodship Project Implementation Units will include:
•
Project administration on the local level,
•
Assistance to beneficiaries in preparing project applications,
•
Reviews of project applications and qualifying the projects, against qualification
criteria, for inclusion to project portfolio subject to final approval by the Regional
Steering Committee,
•
Receiving notices from the Regional Steering Committee of the approved
applications and notifying the respective beneficiaries of the application-concerning
decisions,
•
Preparing agreements between marszaleks, chairmen of Regional Steering
Committee and beneficiaries,
•
Working in the Public Procurements Committees and, if necessary, accepting
responsibility for those procurements,
•
Supervising the subcontracted work and sending payment orders to the payment
agent,
•
Collecting monitoring and evaluation information in collaboration with local
authorities, sending data to the National Steering Committee.
•
VPIU will serve as RSC secretariats.”148
The Project Appraisal Document presents a draft flow of funds procedure.
„Bank will make a preliminary authorized payment to Special Account in the National
Bank of Poland and then transfers will be effected against payment instructions from
MOF. In the case of an infrastructure development Component, flow of funds takes place
from the Special Account to Voivodship Office Finance Departments (expenditure
justification shall be sent to Bank within 30 days). If the public finance law is amended,
flow of funds shall be in agreement with the respective amendments. When the project
packages have been approved by the National Steering Committee and the financing
agreements signed by respective Marszaleks (see point 48), Ministry of Finance will
transfer financial means in accordance with the official budget procedures and conditions
agreed for each Component, as shown in Annex no. 2. VPIU will then prepare cofinancing agreements to be concluded between Marszaleks and gminas. When those
agreements have been signed, gminas will start implementation process with the
147
148
Ibidem, p. 6.
Operational Manual, p. 5.
387
assisstance of VPIU. In the case of activities connected with building up institutional
potential and resource center in the education Component, the responsible ministry will
effect payments directly to the service providers. In the Component A (micro-credits),
payments will be effected by the National Economy Bank (BGK) through the selected
service providers.
Ministry of Finance will transfer part of the approved total sum (not more than 20%) as an
advance payment and then will be transferring money against fund replenishment
applications submitted by VPIU. When 50% of the advance sum have been spent, VPIU
will submit the fund replenishment applications to the Ministry of Finance, which will
instruct the Bank to replenish the funds from Special Account. Procedures of returning the
funds will be established in case savings are achieved or expenditures not qualified for
financing.
By separating the programming and implementing functions from the payment function,
the RDP decision-making process will be subjected to public control and the distribution
of funds will be performed in an intelligible and transparent way. This allows to manage
the Project more effectively and clarifies the respective scope of responsibility of the local,
regional and national decision-making levels.”149
„A monitoring function will be connected with the scope of responsibility of each
ministry in the Project. In order to perform that function, each of the ministries will
designate one of its departments or an external service provider to carry out the
monitoring operations. The teams responsible for monitoring operations will collaborate at
the national level with the Project Coordination Unit and will make available the Project
realization information in the form of respective indicators.
Project progress reports will be submitted by all the lower level units to the Voivodship
Project Implementation Units or, in the case of institutional potential building activities, the
service provider reports will be submitted to the Project Coordination Unit by design
teams in the ministries. The Project Coordination Unit will prepare periodical summary
financial reports for the National Steering Committee, Ministry of Finance and Bank.
Those reports will be an element of the Management Information System (MIS), which
will inform of the goals achieved in relation to the financial means used. The periodical
evaluation of the RDP (initially performed every half a year) on the regional and local level
has been included in the Project realization schedule to allow continuous Project
improvement.”150
The authors of Project management conception underline that „detail administrative
procedures, principles of financial management and of payments (…) as the Project
realization proceeds (…) may be changed, provided they are not incompatible with this
>Operational Manual<”151.
Assumptions of the Management Information System (MIS) are presented in the
Operational Manual: „In the Project a complex, integrated management information
system will be developed, adjusted to the Project needs, which will include financial
management information, public orders, training of the administration, project details,
149
Project Appraisal Document, p. 18.
Ibidem, p. 18-19.
151
150
388
monitoring and evaluation. The system administrator in the PCU will be responsible for
updating and maintenance of the system.”152
8.4 The Poland Flood Emergency Project as a reference to RDP
An important aspect of the work on the Project assumptions seems to be the fact that the
Project Appraisal Document has been prepared in the World Bank by the same team of
experts who prepared the basis for the Poland Flood Emergency Project in 1997.
The goal of the Poland Flood Emergency Project was reconstruction of the infrastructure
damaged or destroyed by the 1997 flood. The Project had, like the RDP, several
Components and Sub-Components.
•
A – repairs of the municipal and rural infrastructure,
•
B – construction of anti-flood banks and limiting the flood hazards, including
•
o
B.1. – planning of anti-flood banks,
o
B.2. – development of a monitoring, forecasting and warning system,
o
B.4. – prevention and limiting of the flood hazards,
C – project management.
The project was realized from March 1998 to 31 August 2003. The original completion
date – August 2001 – was changed after amendments introduced to the agreement in
January 2001.
Total value of the credit agreement was USD 200 million and the project tasks were
based on the total budget of USD 498.2 million.
An important institution for the Project was the World Bank Project Coordination Unit
(PCU), responsible for implementation of the accounting and audit system and monitoring
the flow of funds during the project. It prepared project task progress reports for the World
Bank, based on the information provided by the project realizing parties and by the
project beneficiaries.
From the Polish government side, members of the Steering Committee were Cabinet
Member responsible for repairs of the flood damage and representatives of the Ministry of
Finance, Ministry of Environment, Natural Resources and Forestry.
Procurements and work orders for the Project were performed in accordance with
guidelines given in the World Bank instructions. The Public Procurements law procedures
did not apply to the project, as an exception based on an international agreement signed
by the government of Poland.
Realization of that Project was subjected to analysis and critical evaluation by the
Supreme Chamber of Control. These are some of their comments:
152
389
„The borrower was obliged to make the credit available in a form of subsidies. Such
solution was possible for Component A in gminas and powiats, but was not possible, due
to the Public Finance law requirements, for Component B in financing the implementation
units (Meteorological Institute, Regional Water Management in Krakow, Poznan and
Wroclaw).” 153
„The control has shown that realization of the Poland Flood Emergency Project tasks, cofinanced by the World Bank financial means, was unpunctual in a different scale in its
individual Components.”154
„Main reason of the delays in realization of the Poland Flood Emergency Project, and its
Component B in particular, was insufficient readiness of the implementing units and
problems in collaboration with the World Bank.” 155
„The problem observed in the whole controlled period were delays in payments for the
tasks co-financed by the World Bank. The reason was too long money transfer time from
the borrower to the beneficiary. Average beneficiary’s money transfer awaiting time was
28 days in 1998, 43 days in 1999, 39 days in 2000 and 50 days in 2001, but in extreme
cases it reached 224 days. That question was not solved although the World Bank many
times demanded the process to take not more than 31 days and the Polish side made
efforts to fulfill that demand.” 156
„Collaboration with the World Bank on the credit agreement was not good, particularly in
the initial stage. An obstacle were some controversial provisions of the agreement and
also, to some extent, not clearly enough defined principles of collaboration between the
parties to the agreement. Therefore, the Polish side had difficulties with meeting the Bank
requirements. Bank would change the bidding procedures for biddings in progress or
would withdraw from an earlier approval of the Component B summary realization
schedule. That caused task realization delays.
• Neither the credit agreement nor the World Bank instructions regulated the time allowed
for individual activities in a procedure and there were cases of long-lasting acceptance of
the bidding documents. For instance, the World Bank acceptance procedure of bidding
documents for the „Feasibility study of the Racibor reservoir dam” task took 18 months.
• On 16 March 1999, the World Bank approved the Component B summary realization
schedule and accepted the start of Project realization. But already in June 1999 the World
Bank working mission, visiting the Project, submitted reservations to the earlier approved
schedules, particularly to work subdivision and bidding procedures. Work on the
amendments lasted until July 2000 and the Project realization delay increased by another
12 months.” 157
„The multilevel Project management and supervision system (Steering Committee, the
Prime Minister Office, Ministry of Finance, Ministry of Environment, the World Bank
Project Coordination Office in Wroclaw, implementation units) partly imposed by the credit
agreement provisions, did not guarantee a proper task execution. There was no clear
definition of the mutual responsibility, rights and intelligible procedures. Therefore, in the
153
„Information on the results of control of the use of the World Bank credit 4264-POL for “Repair of
the July 1997 flood damage” project” Wroclaw, December 2002, p. 28.
154
Ibidem, p. 7.
155
Ibidem, p. 6.
156
Ibidem, p. 9-10.
157
Ibidem, p. 10.
390
opinion of NIK, the financial management and supervision of the Poland Flood
Emergency Project were inadequate, which is confirmed by the observed improper
management of the credit and associated budgetary means and also by the delays in the
fund flow. The supervision was particularly inadequate in the realization of Component B
of the Project.” 158
„The best level of the Project Component B supervision was provided by the Steering
Committee chaired by the Minister responsible for repairs of the flood damage, who
became more active, however, only at the beginning of 1999. Inadequately worked the
World Bank Project Coordination Office in Wroclaw, established for coordination and
supervising the credit means spending and also for realizing the credit agreement
provisions. That unit did not have a legal status in the Polish legal system and in the
Prime Minister Office statutes. It functioned for 3 years without an approved
organizational constitution (that was a responsibility of the alternating Office directors),
the organizational structure, employment and remuneration methods were different than
those described in the credit agreement and in the years 2000-2001 the Office had no
financial plans prepared or approved.”159
„Also questionable is the way the supervision and control were executed by the Ministry
of Environment, which directly supervised realization of Component B >construction of
the flood banks and limiting flood hazard<. No control system was created for the tasks
financed from the World Bank credit and performing the supervisor functions by just one
person, as an additional duty, did not guarantee a proper monitoring of task
realization”.160
Summing up – some important aspects of the Poland Flood Emergency Project were
similar to the Rural Development Project:
•
It had a multi-Component structure,
•
Several ministries were involved in it on the Polish government side,
•
Special institutions were set up to perform effectively the key administrative tasks,
•
The World Bank goods and services procurement bidding procedures dominated
over the Polish legal procedures,
•
Payment procedures were subjected to the requirements of the Public Finance law.
A series of objections were formulated against the Project, regarding the effectiveness of
management and of task execution.
The Rural Development Project designers proposed an organizational formula that to a
significant extent was a continuation of the one used in FEP. They also proposed distinct
improvements on it so as to avoid recurrence of mistakes made during the FEP
implementation.
The evaluators will return to this question further in this chapter.
158
Ibidem, p. 10-11.
Ibidem, p. 11.
160
Ibidem, p. 11.
159
391
8.5 Selected problems
management
8.5.1
of
the
Rural
Development
Project
Taking decisions on the changes to the RDP principles
RDP was designed as a multi-sector project and its pioneering character was underlined
right from the beginning. Therefore, some flexibility of the RDP procedures was adopted
and it was also assumed that the Project would evolve during realization and the changes
would be made along the pre-designed paths.
The basic RDP document was the Operational Manual. Changes to that document had to
be approved by the NSC. Changes to the Operational Manual couId be initiated by the
RDP -involved institutions and, indirectly, by the beneficiaries.
World Bank
Figure 83.
Diagram of making decisions on changes to Operational Manual
Initiators of changes
PCU
National Steering
Commitee
Initially
opinions the
proposal
"No objection"
Approves
changes to
Operational
Manual
Opinion the
proposal, consults it
with involved
institutions, passes to
WB to opinion
Prepares the
proposal of
change &
submits it to
NSC
Includes changes in
the Operational
Manual, distributes
knowledge about
changes
Propose
changes to
Operational
Manual
Source: Own study of RDP documents
Changes to the Operational Manual, introduced by the NSC during the RDP, concerned:
392
•
No data are available for 2000
•
NSC resolution of 27 June 2002, Sub-Component B1 – adding annex 3.2;
•
NSC resolution of 16 January 2003, Sub-Component B1 – adding annex 3.3;
•
NSC resolutions of 5 April 2004, finance management system and realization of SubComponent B1 (annex 3.2);
•
NSC resolution of 26 April 2004, amendment to annex 3.3.
8.5.2
Decision-making process of granting subsidies to beneficiaries
There are 3 main groups of beneficiaries in the RDP:
1. Individual persons – in the case of Components A and B1 – requalifying /
reorientation program and B2 – Education Resources Center.
2. Voivodships, gminas, powiats, Voivodship and Powiat Labor Offices for economic
and labor market research in Sub-Component B1.
3. Gminas and powiats (local communities) – in Components B2, B3 and C.
In the case of individual persons, there were two separate decision making procedures
for granting the subsidies.
In Component A a subsidy for beneficiary had two forms::
•
loan granted by loanable funds, co-financed from the RDP means;
•
non-repayable subsidy financed from the RDP means.
Subsidies were granted by foundations (loanable funds) selected by bidding. They had
their own structures in voivodships.
393
Diagram of making decisions on granting subsidies to the
Component A beneficiaries
Loan comission
Figure 84.
Inspector in
RDF/FDPA
Decides about
granting of
microloan or
subsidy
Registers
Rejestruje
the
application
wniosek
Loan officer or
inspector confirm
the signature
Beneficiary fills
the application
form consulting it
with loan officer
or inspector
Opinions the
Opiniuje wniosek
application
Sign the contract
Beneficiary or loan
groups
Loan officer
Opinions the
application
In the Sub-Component B1 the subsidy had an indirect character – services provided by
local firms were financed fully (most often) or partly from the RDP funds. The services
were rendered in the following spheres:
•
vocational training;
•
employment opportunities (vocational guidance);
•
temporary employment (refunding part of the employment costs to the employer);
•
entrepreneurship supporting centers (help in setting up and running a business unit);
•
entrepreneurship incubators;
•
local development planning.
Then the decision making procedure for granting subsidies, i.e. providing free service,
was made in two stages:
394
•
at the voivodship level (for greater orders also at national level: Ministry of Economy
and Labor, World Bank) – decision on realization of a specific service and selection of
the service provider;
•
at the beneficiary level – decision on qualifying a beneficiary for free services in the
Project.
At the voivodship level, the decision process was based on the competition rules in
accordance with the project guidelines given in annex 3.3 to the Operational Manual.
Diagram of making decisions on concluding agreements with
service providers in Sub-Component B1
Service providers
Figure 85.
Negotiate
contracts
In case of
contract value
> 35 tys. US$ i
<= 70 tys. US$
approves
Prepare
subcomponent's
promotion &
monitoring
system
In case of
contract value
> 70 tys. US$
approves
Analyse the
needs & approve
the demand
RSC
Local governments
Organise
contests in order
to find service
providers
Opinions on the
contracts or
sends to PT
MoEL or WB
WB
Program Team of Ministry
of Economy & Labor
Voivodship
consultant
VLO
Gather the
needs and pass
it to RSC
Signing of
contracts
Identify the
needs of local
communities
Decision on qualifying a beneficiary for a service was taken by the Voivodship Labor
Office. The only selection criterion was compatibility of the service applicants with the
Operational Manual together with annex 3.3 and with the criteria adopted by the local
RSC.
395
The Internet Educational Resources Center – Scholaris site, generally accessible free
service – each interested teacher, student, pupil may use the site. Selection of the service
provider was made in a QCBS bidding organized by the Ministry of Economy and Labor.
The main receiver of the economy and labor market research in Sub-Component B1 was
the Program Team of the Ministry of Economy and Labor (formerly Ministry of Labor and
Social Policy). Each of the interested beneficiaries (voivodship offices, powiats, gminas,
Voivodship and Powiat Labor Offices) could use the effect of work – voivodship reports.
Selection of the service provider was made in a bidding organized by Ministry of
Economy and Labor according to the QCBS procedure. The research performer was a
consortium of companies – Polish Network of Business Consultants (PSDB S.A.), Market
Economy Research Institute (IBnGR), IPSOS – Demoskop. The market research reports
were sent by PSDB for acceptance by National Steering Committee. Besides, the results
were presented at conferences organized for the Sub-Component B1 implementing
institutions and in an Economy and Labor Market forum.
Beneficiaries of the Components B2, B3 and C were local communities of gminas and
powiats (Component C). The decision making procedures in those Components were
different, according to the place of taking decisions on the selection of beneficiaries or
place of selecting the service provider.
Three basic decision making models may be distinguished:
•
in Sub-Component B2 training and procurement, B3 training program – decisions at
the voivodship level based on the gmina applications and on central biddings;
•
in Sub-Component B3 IDP and dissemination program – decisions at the national
level based on the powiat/gmina participation in IDP, dissemination program for all
gminas in Poland based on central biddings;
•
in Sub-Component B2 school repairs and modernization and in Component C –
decisions at the voivodship level based on gmina and powiat applications and on
local gmina level biddings.
Table 125.
Decision-making models in qualifying a beneficiary in Components
B2, B3 and C
Activity in Component / SubComponent
B2 training and procurements
B3 Training Program
B3 IDP, B3 IDP Dissemination
Program
B2 repairs and modernizations, C
infrastructural investments
Decision on qualifying a
beneficiary
Bidding organizer
RSC/VPIU by demand /
gmina applications
Program Teams in MoNES
and MIAPA
MIAPA Program Team by
local government unit (LGU)
applications
MIAPA Program Team
RSC / VPIU by LGU
applications
Gminas / gmina associations,
powiats
Beneficiaries of procurement and training in Sub-Component B2 were gminas and their
communities, in particular rural school pupils and their families, headmasters and
teachers of those schools. Decision on the selection of beneficiaries – schools, teachers,
headmasters and other education sector workers at the gmina level was usually taken by
396
school headmasters (submission of needs to gmina). Gminas collected those applications
and completed a final list of needs, submitted then to the VPIU.
Regional Steering Committees played key role in taking decisions on selecting gmina
applications for realization. They completed and approved ranking lists based on earlier
established criteria and the formal appraisal reports issued by the VPIUs.
Diagram of making decisions on realization of educational and
training tasks in Sub-Component B2
Fill in trainingdidactic
applications
Basing on preset criteria &
VPIU reports
create ranking
lists
VPIU
Evaluate offers &
choose the best
ones, negotiate
Prepare bidding
documentation
On behalf of
VPIU invites
providers to
apply offers
Apply offers
Voivodship
Administration
Office
PCU
Sends to
voivodships a list
of programmes,
didactic aids,
technical
specifications &
ToR
Evaluate
applications &
present
conclusions &
evaluation
reports to RSC
Providers
Invite gminas to
apply for grants
Program Team in
Ministry of National
Education & Sports
RSC
Gminas
Figure 86.
Sign the
contracts
In Sub-Component B3, an IDP pilot program was planned for gminas in 3 powiats in
Poland. Qualifying of powiats/gminas for the IDP was decided by the MIAPA Program
397
Team supported by consultants. Selection was based on questionnaires sent by the
interested powiats. After verification of the questionnaires, a short list of 8 powiats was
set up, of which 3 were selected to implement the IDP. An IDP consultant was chosen in
accordance with the QCBS procedure organized by the MIAPA Program Team. The IDP
was realized by a consortium of Canadian Urban Institute and the Malopolska Public
Administration School.
In B3 Training Programs, the following teams (composed of persons responsible for
management and decision making in the local government units) could submit
applications for training participation:
•
from rural gminas;
•
from municipal-rural gminas;
•
from municipal gminas with population of up to 15,000;
•
from municipal gminas with 15,000 – 40,000 inhabitants, on the condition that they
would qualify only when there were free places left after recruitment of other entitled
local government units;
•
from the Marszalek Office representing teams.
RSC took decisions on qualifying teams to the training program and drew up lists of
applications, based on evaluations and amount of credit allocated by VPIU. The local
government unit qualification process was carried out in collaboration with the training
provider – the Foundation for Local Democracy Development (FRDL). FRDL was chosen
in a QCBS bidding organized by the MIAPA Program Team.
The IDP result dissemination program in Sub-Component B3 included all gminas in
Poland. The program was realized by MIAPA supported by four local government
associations – Association of Polish Cities, Association of Rural Gminas, Association of
Powiats and Union of Polish Towns.
A similar procedure of selecting the beneficiaries was used in Sub-Component B2 repairs
and modernizations and in Component C. In accordance with that procedure, the local
government units submitted investment applications to VPIU. VPIU (in Component C
together with ARMA) prepared a preliminary evaluation of / opinion on those applications
in accordance with criteria adopted by the RSC. The final ranking lists and lists of
accepted applications were adopted by the respective voivodship RSC. The local
government units organized biddings according to the scale and character of work, as
required by the RDP Public Procurement Book. As majority of the investments were
relatively small scale undertakings, the biddings were of the MW type (Components C
and B2) and LVMW type (Sub-Component B2 only).
398
Diagram of making decisions on investment realization in SubComponent B2 and Component C
Decide about the
evaluation
criteria
Inform local
governments
and invite to the
PRDP
Basing on VPIU/ARMA
opinions decide about
ranking list of projects to
be financed
Opinion the
applications
basing on the
criteria decided
by RCS
Prepare &
submit
investment
applications to
VPIU (B2) or
ARMA (C)
Contractor
Local governments
ARMA
(component C
only)
VPIU
Regional Steering
Commitee
Figure 87.
Conduct
biddings
according to WB
rules
Evaluate offers,
choose the
contractors
Local
governments
sign contracts
with the
contractors
Submit offers
8.5.3
Finance management in RDP
The finance management process in RDP was defined in Annex 2 to the Operational
Manual of 11 April 2000 - „Finance Management System”. The document describes tasks
of the individual Project institutions and the respective financing procedures.
Procedures contained in annex 2 to the Operational Manual of 11 April 2000 evolved
considerably during the RDP. The evolution was a result of overcoming, by the local
government units and other RDP implementing parties, the arising problems and
inaccuracies in the fund flows. The essential path of changes was modification of the
procedures in order to prevent payment delays and also simplification of the annex
provisions to make them easier to apply and construe. More or less at the turn of 2002
the procedures took shape that remained unchanged until the end of the Project.
All the changes in the financing procedure until April 2004 did not have any formal effect
in the change of Operational Manual. The RDP implementing units had a knowledge of
procedures in force, but there was no single, unequivocal and legal written source of that
information. On 5 April 2004 the National Steering Committee amended Annex 2 to the
Operational Manual of 11 April 2000. In fact, the new version of Annex 2 was a
399
completely new document – in the opinion of evaluators more precise and clear than the
old version – describing the RDP financing procedures.
The RDP fund flow process had to be in agreement with provisions of the Public Finance
law of 26 November 1998 with later amendments. In view of that, the World Bank did not
have the right to transfer financial means directly to beneficiaries. Those financial means
had to pass through the special account of the Ministry of Finance and then according to
the Public Finance law general principles of distribution of budgetary means.
The adopted procedure was based on the Polish Public Finance law and on the World
Bank procedures.
In developing the fund flow procedures the World Bank experience gained in the Poland
Flood Emergency Project was used. Procedures for that Project were written in the
Project Appraisal Document of 1 December 1997. Proposals in the RDP PAD were
similar to those in the flood project PAD.
The Flood Emergency Project had two main objectives:
•
Reconstruction of the essential infrastructure in the inundation area by repairing the
structures and objects important from the economic and social point of view;
•
Preventing the risk and negative effects of flood in the future.
PFEP consisted of two „material” Components: that dealing with the gmina infrastructural
investments and that of waterway and anti-flood infrastructure investments managed by
the Regional Water Management Boards. With great simplification, the whole project was
similar to Component C in RDP, many investments involved relatively small, by the World
Bank standards, sums of money. The project was more uniform than RDP, its activities
were concentrated in the Ministry of Flood Damage Reconstruction and also Ministry of
Agriculture and Ministry of Environment. The project was managed by Project
Coordination Unit in the Ministry of Flood Damage Reconstruction and its tasks were
similar to those of the PCU in RDP.
The basic legacy taken over by RDP from PFEP were the bidding procedures, based on
the World Bank Instruction on the public procurements financed from the IBRD loans and
IDA credits. In PFEP, in order to adjust the WB standard bidding solutions, used mainly in
large international biddings, to the Polish conditions, those procedures were
supplemented with the National Shopping (NS), National Competitive Bidding (NCB) and
Minor Work (MW) type of bidding. In our opinion, effective execution of most of the
biddings in PFEP was only possible after introducing such solutions.
In RDP it was decided to use the World Bank suggested bidding procedures, taken over
entirely from PFEP. In the interviews, during RDP evaluation, with the Project
implementing institutions, drawbacks of those solutions were more often indicated than
the advantages. The drawbacks mentioned were the following::
400
•
the necessity of learning and implementing by gminas, powiats and RDP institutions
of complicated procedures, completely different from the Polish Public Procurement
law;
•
that acquired bidding knowledge will be of no use in the future;
•
some interviewers indicated unclear mutual relation of the World Bank bidding
procedures and the Polish legislation;
•
too complicated bidding procedures for small value orders and often occurring
problems with solving the biddings – this could be seen in the work procurements in
Sub-Component B2 and was partly solved by introducing the Little Value Minor Work
(LVMW) procedure;
•
necessity of obtaining the World Bank „no objection” decision in key stages of some
large value bidding procedures, which considerably prolonged the bidding process.
As an advantage of the World Bank solutions, the rigidity of procedures was mentioned
and availability of ready forms for bidding documents, which (in the opinion of some
respondents) simplified the bidding process.
Most of the interviewed persons were of the opinion that the RDP objectives could have
been much easier achieved with the use of the Polish Public Procurement procedures,
particularly after amendments adjusting the Polish law to the European Union legislation.
But the question whether „pure” World Bank procedures or the changed PFEP
procedures would have been better for RDP has an obvious answer. Without the use of
PFEP procedures, realization of RDP, at least in the Components C infrastructure and B2
repairs and modernization, would have been extremely difficult.
In the RDP, the money payments were effected through budget procedures, assuming
participation in the financing process of the national and voivodship government
structures – Ministry of Finance and Voivodship Office Finance Departments.
The following RDP finance management procedures were in use:
1. Replenishment of the special account means and transfer of credit money to the state
budget.
2. Payment applications.
3. Payments.
4. Accounting.
Procedure 1 functioned at the Project national level and procedures 1, 2, 3 were
appropriate for Components A, B (B1, B2, B3), C and D.
Within points 2, 3 and 4 there were 11 modes of money flow:
•
•
Component A:
o
micro-loans and service provider remunerations;
o
single subsidies;
o
Component A management;
Sub-Component B1:
o
reorientation / requalifying program;
401
o
•
•
Sub-Component B2:
o
school repairs, school network consolidation and training – educational tasks;
o
technical assistance and equipment for the Internet Center, technical
assistance in implementation and monitoring;
Sub-Component B3:
o
•
•
labor market research and Sub-Component B1 management;
pilot IDP, training program, technical assistance and deliveries of equipment
for the IDP units, dissemination program;
Component C:
o
investment tasks;
o
training and technical assistance;
Component D:
o
Project management.
All the above mentioned modes of money flow had many elements in common, they
differed by specific solutions for the scope and character of the individual tasks within
Components. Detailed descriptions of the procedures are given in Annex 2 to the
Operational Manual of 9 March 2000.
8.5.4
Replenishment of the special account means and transfer of credit
money to the state budget
Key role in this procedure was played by the Ministry of Finance, which applied on behalf
of the government to the World Bank for replenishment of the special account means and
then it had the means at its disposal.
402
Figure 88.
Replenishment of the special account means and transfer of credit
money to the state budget
PCU on behalf of MARD
Ministry of Finance
administrator of the
Special Account in NBP)
World Bank
Approval of the
application &
replenishment of
the special
account means
Approval for the
application by
Minister of
Finance
Application to the
WB for
replenishment of
the special
account means
MF's order to
replenish
national budget
account from the
special account
Preparation of
application with
expenditure
account,
application for
acceptance of
the Minister of
ARD
Source: Own study of the Annex 2 to the Operational Manual and other RDP documents
8.5.5
Applying for payment
General procedure of applying for payment, used in all Components except A – microloans. The procedure is presented in 3 variants:
•
when the executor was selected in a bidding at the ministerial level;
•
when the executor was selected at gmina/powiat level;
•
in Sub-Component B1, where executor sent invoices to the Voivodship Labor Office.
Additionally, in Component D, PCU applied to MF, with prior acceptance by MARD.
403
Applying for payment in RDP – general procedure
Decision on
payment
Prepares
aggregated
application
Prepares
aggregated
application
Prepares
application
Ministerstwo
Gmina lub powiat
odpowiedzialne za
(beneficjent)
dany przetarg
VLO
VPIU on behalf of
Marszalek
PCU on behalf of MoF (administrator of the
MARD
special account in NBP)
Figure 89.
Prepares
application
Sends invoice to
PCU/ prepares
application
central bidding
Contractor
local bidding
Invoice
subcomponent B1
Specific feature of applying for payment in Component A – micro-loans is that there is no
invoicing in the process. The loanable funds (service providers) collect applications from
beneficiaries and submit a summary application to BGK. BGK prepares applications to
Ministry of Economy and Labor (MEL), then the procedure is the same as the general
procedure. The loanable fund financing is in agreement with the general procedure of
applying for payment.
404
8.5.6
Payments
The payment process in RDP was the reverse path of the applying for payment process,
with all the intermediate levels except PCU which had no own account. The diagram in
the Figure below may be used for most activities and Components. The procedure is
presented in 3 variants:
•
when the executor was selected in a bidding at the ministerial level;
•
when the executor was selected at gmina/powiat level;
•
in Sub-Component B1, where executor sent invoices to the Voivodship Labor Office.
Payments in RDP – general procedure
Decision about
payment
Transfer of
means to the
accounts of
Ministries/Voivo
dship
Governments
Transfer of
means to
Marszaleks
Offices accounts
Transfer of
means to
gminas/powiats
or VLO
biddings in gminas & powiats
subcomponent B1
VLO
Transfer of
means to the
contractor's
accounts
Gmina or powiat
(beneficiary)
Ministry
responsible for
bidding
local biddings
central biddings
Marszaleks Offices
Marszaleks Offices
Ministry of Finance
Finance
(administrator of the
Departments
Figure 90.
Transfer of
means to the
contractor's
accounts
Transfer of
means to the
contractor's
accounts
As in the applying for payment, Component A is specific. Depending on the product
(micro-loan and loanable fund remunerations or a single subsidy), the procedure was
different.
405
Payments in Component A
Payment
decision
Transfer of
means to
accounts of
MoEL/FD VAO
Microloans & financing of FDPA & RDF
Subsidies
Transfer of
means to FD
VAO accounts
Transfer of
means to
Marszaleks
Offices accounts
Transfer of
means on FDPA
& RDF accounts
Account of MoEL
in BGK
Marszaleks Offices
Ministry
MoF (administrator of the
Financial Departments
responsible for the
in VAO
bidding
Figure 91.
FDPA, RDF
Transfer of
means on FDPA
& RDF accounts
Payments to
beneficiaries
8.5.7
Accounting of payments
The payment accounting procedure in RDP consisted in entering the transfer information
in the MIS database by the institutions responsible for payments to beneficiaries
(Loanable Funds and BGK/MEL in Component A, VLO and VPIU in B1, VPIU in local
biddings and ministries in the national level biddings) and transferring that database to
PCU. PCU combined the information from various databases into the central MIS
database.
The frequency of sending the MIS database to PCU, i.e. length of the accounting period,
changed during the RDP – from about one month at the beginning of RDP to 2 weeks
(after the NSC resolution of 30 April 2002).
At the RDP initial stage, the adopted accounting system was one of the reasons of delays
in the financing process, due to the sluggishness of gminas in accounting with VPIU for
406
investment expenditures and also due to the prolonged time of decision making by the
MF. Therefore, remedial measures were taken to restore the RDP financing fluidity.
One of the PCU roles in RDP was participation in the financial planning. The financial
planning procedure was based on regulations and procedures of the Polish Budget
Planning law and on the following stages:
1. RDP had annual financial plans, in accordance with the budget cycle. Implementation
of the financial plan consisted in assigning means for individual voivodships by NSC,
based on applications submitted to PCU.
2. PCU updated the performance data in MIS (monthly cycle).
3. If a voivodship plan fulfillment was lower than 60%, PCU asked the Voivodship
Marszalek to release the money.
4. If Marszalek released money, PCU asked MARD to correct the financial plan.
5. MARD, authorized by PCU, corrected the financial plan.
6. If the changes might have an impact on the credit agreement limits then acceptance
was necessary of the other party – the World Bank.
8.5.8
Effecting payments in RDP
It may be seen from the MIS database information on the Project payments how the
individual Components were realized. It is also possible to obtain an overall picture of
RDP activities in time.
Figure 92.
RDP monthly payments in thous. of PLN
80 000
70 000
60 000
50 000
40 000
30 000
20 000
10 000
0
01
2000
07
2000
01
2001
07
2001
01
2002
07
2002
01
2003
07
2003
01
2004
07
2004
01
2005
Source: MIS database received from PCU
The above diagram shows that the actual RDP realization phase started in the second
half of 2001, when the Component C investments started. The annual money spending
cycIe is clearly seen, correlated with the annual budget cycle of the ministries (including
Ministry of Finance) and local government units. In that cycle there is a financial “pit” at
407
the beginning of each year and majority of the money means are spent in the second half
of the year. That “pit”, in the opinion of some respondents, was an effect, at least partly,
of a limited decision making capability of the Ministry of Finance as regards money
spending at the turn of the calendar years. Also clearly seen is the accelerated process of
money spending in the second half of 2004 as the RDP approached the end.
Figure 93.
Accrued payments in RDP, by Components, in millions of PLN
600
500
400
Component C
Subcomponent B2
300
200
100
Subkomponent B1
Component A
Subcomponent B3
Component D
Fe
br
ua
ry
-0
0
M
ay
-0
Au
0
gu
st
N
-0
ov
0
em
be
r- 0
Fe
0
br
ua
ry
-0
1
M
ay
-0
Au
1
gu
st
N
-0
ov
1
em
be
r- 0
Fe
1
br
ua
ry
-0
2
M
ay
-0
Au
2
gu
st
N
-0
ov
2
em
be
r
Fe
-0
2
br
ua
ry
-0
3
M
ay
-0
Au
3
gu
st
N
ov
03
em
be
r
Fe
-0
3
br
ua
ry
-0
4
M
ay
-0
Au
4
gu
st
N
-0
ov
4
em
be
r- 0
Fe
4
br
ua
ry
-0
5
0
The diagram shows that the greatest part of the total sum of payments went to
Component C. Also a substantial part was taken by Sub-Component B2, where very
important was assigning the Project reserve fund means to that Sub-Component. It is
also interesting to note the sequence of the individual Components in time – Component
C was realized as the first – initial significant payments were effected at the end of 2001.
That Component was also finished as the first one. The diagram suggests that
Component C was in a sense separate from other RDP Components, well ahead in time.
408
Figure 94.
Accrued payments in RDP, in Component A and Sub-Component
B1, in millions of PLN
160
140
120
Subcomponent B1
100
80
60
40
20
Component A
Fe
br
ua
ry
-0
0
Au
gu
st
-0
Fe
0
br
ua
ry
-0
1
Au
gu
st
-0
Fe
1
br
ua
ry
-0
2
Au
gu
st
-0
Fe
2
br
ua
ry
-0
3
Au
gu
st
-0
Fe
3
br
ua
ry
-0
4
Au
gu
st
-0
Fe
4
br
ua
ry
-0
5
0
Comparing Component A and Sub-Component B1, which were in the hands of the MEL
Program Team, one can see that they were not performed in parallel. Realization of SubComponent B1 was started in the first half of 2002 and Component A (micro-loans and
subsidies) was fully operational a year later. But Sub-Component B1, from the point of
view of payments, ended later than Component A – at the turn of 2004. Most micro-loans
were paid by the end of the first half of 2004.
One may agree with the opinion that if the two Components had been better coordinated
in time, much better synergy effect would have been achieved. Presumably those
applying for micro-loans would have a chance of participating in various forms of training
available in Sub-Component B1. However, we had signals that target groups of the two
Components were different – persons in Component A performed business activity within
their qualifications and participants of Sub-Component B1 received training in new skills
to find a job.
409
Figure 95.
Accrued payments in RDP, in Component C and Sub-Component
B3, in millions of PLN
600
500
Component C
400
300
200
Subcomponent B3
100
Fe
br
ua
r
y00
Au
gu
st
-0
Fe
0
br
ua
ry
-0
1
Au
gu
st
-0
Fe
1
br
ua
ry
-0
2
Au
gu
st
-0
Fe
2
br
ua
ry
-0
3
Au
gu
st
-0
Fe
3
br
ua
ry
-0
4
Au
gu
st
-0
Fe
4
br
ua
ry
-0
5
0
Comparing the realization time of Component C – infrastructural investments and SubComponent B3 – development of institutional potential, which prepared the local
government units for making use of extra-budgetary investment financing sources, one
can notice that those two Components were carried out in a reversed, illogical sequence.
In our opinion, realizing the Sub-Component B3 first would be better justified and would
prepare a better realization of Component C. We can imagine that potentially more
gminas could apply for money, applications would be better prepared, without delays and
with fewer errors, and the whole Component C would be more effective. There were
preparatory instructions for gminas in Component C before applications but they were
narrow in scope comparing with the complex approach in Sub-Component B3. It has to
be remembered, though, that the RDP Component C has ended with a success.
410
Figure 96.
Monthly payments in RDP, in Component A, in thousands of PLN
12 000
10 000
8 000
6 000
4 000
2 000
0
2001
2002
2003
2004
2005
In Component A, realization of the basic tasks, and therefore greater expenditures, began
as the last of all RDP Components. That was caused by difficulties with selecting the
service providers – loanable funds. Those problems were of a procedural character and
were connected with the World Bank QCBS procedure. Its provisions were not adjusted
to the activities in that Component. When Component A started (turn of 2002), relatively
high rate of money spending could be observed.
Figure 97.
Monthly payments in RDP, in Sub-Component B1, in thousands of
PLN
10 000
9 000
8 000
7 000
6 000
5 000
4 000
3 000
2 000
1 000
0
2001
2002
2003
2004
2005
Expenditures in Sub-Component B1 started at the end of 2001 but at the beginning of
2002 a clear financial “low spot” can be

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