“Highlights of Institutionalization and Ongoing Project Activities”



Institutionalization

Upon project completion, the LRP staff analyzed sustainability related to all components and institutional partners, and the use of advocacy towards these goals. Staff observed that they had undertaken many activities of advocacy throughout project implementation. Highlights of the main institutionalization successes of the project include:

1. Policies in Labor Code for Prelayoff Services. The new Labor Code stipulates the mandatory delivery of Prelayoff Services (previously this only appeared within legislation or policy, not the Labor Code). All procedures and materials that had been developed and tested under the LRP were cited in this official legislation.

2. Increased budget allocation of the unemployment fund for financing active measures services. The budget for such active measures services, previously allocated for passive measures such as severance payments, increased from 3 to 27% from 2000 and is targeted at financing some active measures type services for the unemployed.

3. New World Bank loan. The World Bank, Agency and Ministry recognized the success of the LRP and agreed to continue funding the program for a new four year loan of $20 million for the same types of active measures for displaced workers. All LRP manuals, approach and methods are stipulated in the loan agreement as official project operational procedures.

4. Sustainable LED projects. In conducting Workshop F and final visits to communities, staff confirmed that the majority of LED projects are still operating. By facilitating these final workshops, staff and communities worked together to ensure that community LED plans were in place and/or operational, and that existing LED projects had or were seeking new funding opportunities to sustain their activities.

Staff NGO

Based on the recommendation from the MSI evaluation and the requirements of WSI, the staff began to draft a sustainability strategy in early 2001. An option was the creation of an NGO that would bid for future contracts. At that time, there were two viable projects that would come to fruition by the end of fiscal year 2002. The first option was to bid as technical assistance for the upcoming World Bank loan that would begin in 2002, and the second option was to bid within a consortia for a five year USAID project focusing on local government and NGO capacity building. The staff weighed the options and decided that creating the NGO was the most viable for long term impact.

The new NGO, called MODEL, was registered in Spring 2002 and is comprised of all staff and Project Director. The NGO bid officially within a consortia for the new USAID project in August 2002, to be announced by October 1, 2002.

By LRP closeout, however, changes in the marketplace significantly reduced the NGO’s viability for contracts. The World Bank officials negotiated with the Ministry for the technical assistance component of the new loan, and concluded that rather than contract the local technical assistance with an NGO or Romanian entity, the contracting would be done on an individual service or consultant basis. The USAID project was also announced and the consortia within which the NGO bid did not win. These disappointing events changed the viability and the marketplace for the NGO’s chances to succeed.

Conclusions

At the close of the LRP, four staff members have been contracted by the Agency under the World Bank SSD loan, and six have been employed by a different contractor for the USAID GRASP project. While this will increase the NGO’s struggle to survive, it may also be viewed as an extremely positive sign of sustainability as staff and their experience, training and knowledge gained during LRP implementation will be utilized in comparable sectors. Their continued work in these sectors will build upon the past successes of the LRP to continue supporting Romanian institutions in workforce and community development during the transition of government reform programs.




Success Stories
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