City of Prague Prague City Hall Operational Programme Prague – Adaptability 24 September 2007 Operational Programme Prague – Adaptability 24 September 2007 1 SUMMARY For the City of Prague, the Operational Programme Prague – Adaptability represents an instrument for drawing on funds from the European Social Fund in the programming period of 2007-2013. Due to its economic maturity the City of Prague was classified under the Regional Competitiveness and Employment Objective. The global objective of the OP Prague – Adaptability is to increase competitiveness of Prague by strengthening adaptability and performance of human resources and by improving access to employment for everybody. Fulfilment of the global objective within the time frame of the programme (until 2015) will contribute to the strengthening of sustainable socio-economic development of the region and to increasing the importance of Prague in the Central European region when compared to other capitals of Member States. The programming document has the following structure. Chapter “Socio-economic Analysis of the Region” describes the situation in the City of Prague from the viewpoint of demography, economic performance of the region, situation on the labour market, including risk groups, equal opportunities, business environment and education. Analytical findings are summarized in the SWOT analysis based on which global and specific objectives have been defined under chapter “Programme Strategy”, including its links to strategic documents of the EU and the Czech Republic. Chapter “Priority Axes” describes areas to which support will be directed in order to achieve the programme objectives, including quantification of the programme objectives. Chapter “Implementation structure” describes how the operational programme will be implemented by identifying the relevant responsible entities and by outlining implementation procedures for monitoring, evaluation, financial management, control and publicity. Chapter “Financial Plan” specifies the funds allocated for the fulfilment of the programme objectives. Information on applicability of the SEA to the programme Given the nature of the European Social Fund, focusing on immaterial operations related to human resources development, this operational programme does not set the framework for operations likely to have significant environmental effects, such as infrastructure projects, especially those listed in Annexes I and II to Directive 85/337/EEC, as amended. For details on strategic environmental assessment of the Operational Programme Prague – Adaptability see chapter 3.8. Operational Programme Prague – Adaptability 24 September 2007 2 TABLE OF CONTENTS SUMMARY............................................................................................................................... 2 TABLE OF CONTENTS......................................................................................................... 3 1 INTRODUCTION............................................................................................................ 6 1.1 1.2 2 PRAGUE AND THE EUROPEAN SOCIAL FUND ............................................................... 6 PARTNERSHIP FOR THE PROGRAMME........................................................................... 6 SOCIO-ECONOMIC ANALYSIS OF THE REGION ................................................ 8 2.1 GENERAL DESCRIPTION OF THE REGION ..................................................................... 8 2.2 DEMOGRAPHIC DEVELOPMENT ................................................................................... 9 2.2.1 Age Structure.................................................................................................... 10 2.2.2 Prognosis of Population Development............................................................. 11 2.3 ECONOMIC PERFORMANCE OF THE REGION ............................................................... 12 2.4 SITUATION ON THE LABOUR MARKET ....................................................................... 12 2.4.1 Employment ...................................................................................................... 12 2.4.2 Unemployment.................................................................................................. 18 2.5 RISK GROUPS AND EQUAL OPPORTUNITIES ............................................................... 21 2.5.1 Risk Groups ...................................................................................................... 21 2.5.2 Social Economy ................................................................................................ 24 2.5.3 Social Services.................................................................................................. 24 2.5.4 Non-governmental Non-profit Organisations .................................................. 26 2.5.5 Equal Opportunities ......................................................................................... 28 2.6 LIFELONG LEARNING ................................................................................................ 29 2.6.1 Participation in Education ............................................................................... 30 2.6.2 Education at Elementary, Secondary and Advanced Specialised Schools....... 33 2.6.3 Higher Education ............................................................................................. 34 2.6.4 Further Education ............................................................................................ 35 2.6.5 Modernisation of the City’s Public Administration ......................................... 37 2.7 BUSINESS ENVIRONMENT .......................................................................................... 40 2.7.1 Small and Medium-sized Enterprises ............................................................... 42 2.7.2 Tourism............................................................................................................. 43 2.7.3 Research, Development and Innovation........................................................... 45 2.8 EXPERIENCE FROM THE PREVIOUS PROGRAMMING PERIOD....................................... 47 2.8.1 Single Programming Document for Objective 3 .............................................. 47 2.8.2 EQUAL Community Initiative .......................................................................... 49 2.9 SWOT ANALYSIS...................................................................................................... 50 2.9.1 Strengths........................................................................................................... 50 2.9.2 Weaknesses....................................................................................................... 50 2.9.3 Opportunities.................................................................................................... 51 2.9.4 Threats.............................................................................................................. 52 3 PROGRAMME STRATEGY ....................................................................................... 53 3.1 GLOBAL OBJECTIVE .................................................................................................. 53 3.2 SPECIFIC OBJECTIVES ................................................................................................ 54 3.3 CONFORMITY WITH STRATEGIC DOCUMENTS............................................................ 54 3.3.1 Community Strategic Guidelines...................................................................... 55 Operational Programme Prague – Adaptability 24 September 2007 3 3.3.2 National Strategic Reference Framework........................................................ 57 3.3.3 Community Lisbon Programme ....................................................................... 59 3.3.4 National Strategic Documents ......................................................................... 61 3.3.5 Links to the Operational Programme Prague – Competitiveness.................... 67 3.3.6 Links between the ESF Operational Programmes ........................................... 68 3.3.7 Strategic Plan for the City of Prague............................................................... 71 3.3.8 Information on complementarity with EAFRD and EFF ................................. 72 3.3.9 Information on Complementarity with the Activities of the Seventh Framework Programme....................................................................................................................... 72 3.4 TOPICAL, GEOGRAPHIC AND FINANCIAL CONCENTRATION ....................................... 73 3.5 HORIZONTAL THEMES ............................................................................................... 74 3.5.1 Sustainable Development ................................................................................. 74 3.5.2 Equal Opportunities ......................................................................................... 74 3.6 INTERNATIONAL CO-OPERATION AND SUPPORT TO INNOVATIVE ACTIVITIES ........... 75 3.7 SUMMARY OF EX-ANTE EVALUATION ....................................................................... 76 3.8 STRATEGIC ENVIRONMENTAL ASSESSMENT .............................................................. 78 4 PRIORITY AXES .......................................................................................................... 79 4.1 PRIORITY AXIS 1 – SUPPORT TO DEVELOPMENT OF KNOWLEDGE-BASED ECONOMY 79 4.2 PRIORITY AXIS 2 – SUPPORT TO ENTRY ONTO LABOUR MARKET.............................. 82 4.3 PRIORITY AXIS 3 – MODERNISATION OF INITIAL EDUCATION ................................... 84 4.4 PRIORITY AXIS 4 – TECHNICAL ASSISTANCE ............................................................. 88 4.5 MONITORING INDICATORS AND QUANTIFIED OBJECTIVES ........................................ 89 4.5.1 Context Indicators ............................................................................................ 89 4.5.2 Definitions of Indicators................................................................................... 90 4.5.3 Detailed Breakdown of Indicators ................................................................... 93 4.5.4 Quantification of Objectives............................................................................. 94 4.6 INFORMATION ON STATE AID .................................................................................... 98 5 IMPLEMENTATION STRUCTURE .......................................................................... 99 5.1 MANAGEMENT .......................................................................................................... 99 5.1.1 Managing Authority ......................................................................................... 99 5.1.2 Paying and Certifying Authority .................................................................... 100 5.1.3 Audit Authority ............................................................................................... 101 5.1.4 National Coordination Authority ................................................................... 103 5.1.5 Coordination Mechanisms of ESF Programmes............................................ 104 5.2 MONITORING ........................................................................................................... 105 5.2.1 Annual and Final Reports .............................................................................. 106 5.2.2 Computer Monitoring System......................................................................... 106 5.2.3 Joint Monitoring Committee .......................................................................... 108 5.3 EVALUATION ........................................................................................................... 110 5.3.1 Ex-ante Evaluations ....................................................................................... 110 5.3.2 Ongoing and Ad-hoc Evaluations .................................................................. 110 5.3.3 Ex-post Evaluations........................................................................................ 111 5.3.4 Evaluation Procedures ................................................................................... 111 5.4 FINANCIAL MANAGEMENT ...................................................................................... 111 5.5 FINANCIAL CONTROL SYSTEM ................................................................................ 113 5.5.1 Controls in Public Administration ................................................................. 113 5.5.2 Internal Control System ................................................................................. 113 5.5.3 Audits in Public Administration ..................................................................... 114 5.5.4 Controls by the Supreme Audit Office............................................................ 115 Operational Programme Prague – Adaptability 24 September 2007 4 5.5.5 Audit Activities Performed by the European Commission’s Bodies and the European Court of Auditors ........................................................................................... 115 5.5.6 Irregularities .................................................................................................. 115 5.6 BASIC PRINCIPLES OF PROJECT SELECTION ............................................................. 115 5.7 INFORMATION AND PUBLICITY ................................................................................ 116 5.7.1 Communication Plan and Experience Exchange ........................................... 117 5.7.2 Publicity for Potential Beneficiaries .............................................................. 117 5.7.3 Public Awareness ........................................................................................... 118 5.8 ELECTRONIC DATA EXCHANGE WITH THE EUROPEAN COMMISSION ....................... 118 6 FINANCIAL PLAN ..................................................................................................... 119 6.1 6.2 6.3 EU FUNDS CONTRIBUTION ...................................................................................... 119 PROGRAMME BUDGET BY PRIORITY AXES .............................................................. 120 INDICATIVE BREAKDOWN OF THE COMMUNITY CONTRIBUTION BY CATEGORY...... 121 7 DEFINITIONS OF TERMS USED ............................................................................ 122 8 ABBREVIATIONS ...................................................................................................... 125 9 LIST OF TABLES, CHARTS AND FIGURES ........................................................ 127 Operational Programme Prague – Adaptability 24 September 2007 5 1 INTRODUCTION 1.1 Prague and the European Social Fund In the programming period 2004-2006 the Prague region was eligible for assistance within the framework of Objective 2 and Objective 3 of the EU cohesion policy. The Single Programming Document for Objective 3 with a total budget of EUR 117.5m received a 50% support from the European Social Fund. In the programming period 2007-2013, the City of Prague will receive support from the European Social Fund within the framework of the Regional Competitiveness and Employment Objective by means of the Operational Programme Prague – Adaptability (OPPA). The OPPA has been prepared with reference to Government Resolution No. 175/2006 of 22 February 2006 and in compliance with Act No. 248/2000 Coll., on Regional Development Support, as amended, and with other national and EU legislation. Figure 1 Inclusion of NUTS 2 regions in the cohesion policy objectives for 2007-2013 Source: Development Authority of the City of Prague 1.2 Partnership for the Programme The partnership principle has been strictly followed in the course of OPPA preparation and the ensuing implementation phase. The OPPA Programming Team, established within the Prague City Hall, participated in the preparation of the programme. The team launched its activities on 2 March 2006 and its members are representatives of the competent departments of the Prague City Hall and of the departments participating in the preparation of programme implementation. Operational Programme Prague – Adaptability 24 September 2007 6 The OPPA Preparation Workgroup has been set up for the purposes of broad involvement of partners at the programme preparation stage; it launched its activities on 16 March 2006. The Workgroup members are representatives of the coordinating ministries (Ministry for Regional Development, Ministry of Finance), representatives of the Managing Authorities of the related Convergence Objective programmes (Ministry of Labour and Social Affairs, Ministry of Education), representatives of business associations, a trade union representative, a Chamber of Commerce representative, a research and development representative, a tertiary education representative, a representative of the Czech Statistical Office, an equal opportunities representative and NGO representatives. NGO representatives shared the information on the preparation of the programme with other organisations, including environmental organisations. As the programme was being prepared, its draft versions were available for public comments and suggestions on the City of Prague’s website (www.praha-mesto.cz). In order to involve as many future participants in the programme as possible, a joint public discussion on Operational Programmes Prague – Adaptability and Prague – Competitiveness was held on 15 June 2006. During programme implementation, a Joint Monitoring Committee of operational programmes co-financed under the EU funds within the City of Prague monitors compliance with the partnership principle. The committee will monitor and assess the fulfilment of OPPA objectives, discuss programme implementation reports, approve and modify project selection criteria and carry out other activities related to OPPA implementation. Operational Programme Prague – Adaptability 24 September 2007 7 2 SOCIO-ECONOMIC ANALYSIS OF THE REGION 2.1 General Description of the Region Prague is the capital city of the Czech Republic and an attractive region to live in with rich history and traditions. Prague ranks among the most economically advanced regions of the EU with a potential for further economic growth. It generates nearly a fourth of the Czech Republic’s gross domestic product, with the services sector being the most significant contributor. The significance and the position of Prague can potentially influence the competitiveness and economic development of the Czech Republic to a large extent. From a geographic standpoint, Prague is situated in the middle of Europe, with a very good position in relation to the neighbouring countries. Prague is surrounded by the Central Bohemian region. The present-day reach of the city is the result of a natural historic and long-term territorial expansion. It extends over an area of 496 sq km, which is only 0.6% of the Czech Republic’s total area. Prague is home to 1.18m people, i.e. 11.5% of the Czech Republic’s population. Figure 2 Division of Prague into boroughs and administrative districts (as at 30 June 2006) Source: Development Authority of the City of Prague The City of Prague is a municipality and region, a NUTS 2 (cohesion region) and NUTS 3 region from the EU perspective. As regards the execution of delegated State administration it Operational Programme Prague – Adaptability 24 September 2007 8 is divided into 22 administrative districts; in terms of local self-administration it consists of 57 city boroughs. The city boroughs vary largely in terms of size and urban nature. Some are part of the city centre, others constitute its outskirts; industrial production is prevalent in some parts, while residential housing dominates in others. Some boroughs have arisen through the connection of peripheral village-type municipalities. Therefore, the population density, the quality of technical infrastructure and the social and economic conditions for living are highly varied in the individual boroughs. 2.2 Demographic Development Until early 1990s, a long-term and intensive growth of Prague’s population prevailed due to the inflow of people coming from the whole of Czechoslovakia. The overall population of Prague began declining in 1993, influenced by a migration deficit and an ongoing negative natural growth. The migration losses were mainly caused by the inhabitants leaving Prague for the suburban areas. In recent years, however, there has been a slight increase in the birth rate, while the mortality rate has remained stable. The rate of population decline has therefore begun to slow down by way of natural exchange. Since 2002, Prague’s total population has been slightly rising once again owing to migration. This is mainly due to the influx of foreigners, included in the population totals for the first time. Table 3 Fundamental demographic data of Prague’s population in 2000-2005 Natural population growth Population growth through migration Total population growth 2000 -3,972 2001 -3,529 2002 -3,643 2003 -3,431 2004 -1,718 2005 -730 -1,757 -6,829 5,463 7,074 6,708 11,769 -5,729 -10,358 1,820 3,643 4,990 11,039 Source: CSO As shown in the statistical results as at 31 December 2005, Prague had 1,181,610 inhabitants, of which 615,068 (52.0%) were women. In 2005, a total population increase by 11,039 persons was recorded. Table 4 Population development of Prague in 2000-2005 (as at 31 December) Number of inhabitants Of which women 2000 1,181,126 2001 1,160,118 2002 1,161,938 2003 1,165, 581 2004 1,170,571 2005 1,181,610 621,582 610,466 610,048 610,099 611,463 615,068 Source: CSO In comparison with European cities similar in size, Prague is homogeneous in terms of population nationality. Based on the census taken in 2001, Prague’s population is predominantly Czech (93.4%); another large nationality group in Prague are the Slovaks (1.6%). Other nationalities are represented to a very small extent. The Roma hold a unique position: during the 2001 census only few of them declared their nationality, but the professionals estimate their number to be between 20,000 and 25,000. In general, the national minorities in Prague are neither overly territorially concentrated nor segregated. In 2005, an overall number of 89,911 foreigners legally resided in Prague, which constituted nearly a third of the total number of foreigners with legal residency in the Czech Republic Operational Programme Prague – Adaptability 24 September 2007 9 (278,312 people). A total of 28% of the foreigners residing in Prague had permanent residency (25,414 people), 63% had temporary or long-term residency there and 9% held visas valid for more than 90 days. The most numerous groups were 30,000 Ukrainian citizens (34%), 14,000 Slovak citizens (16%) and 8,500 Russian citizens (10%). Over 55,000 of the foreigners living in Prague were economically active (this includes employment permits, registration and trade licences), i.e. 9% of Prague’s total labour force, of which over 22,000 people owned trade licences. 2.2.1 Age Structure Prague has the oldest age structure of the population in the Czech Republic. The average age of the population (41.7 years in 2004) is constantly the highest of all the regions (the Czech Republic’s average is 39.8 years) and continues rising slightly. The average life expectancy of Prague’s women and men (average for 2003-2004) reached 79.6 and 74.1 years, respectively (79.0 and 72.6 in the Czech Republic). Table 5 Development of age structure indicators for the population of Prague and the Czech Republic Average age Ageing index Economic burden index Prague 40.6 114.4 1998 CR 38.2 80.6 Prague 41.2 120.6 2000 CR 38.8 85.5 Prague 41.5 123.4 2002 CR 39.3 89.2 Prague 41.7 126.9 2005 CR 40.0 97.0 44.2 44.4 42.5 43.0 40.7 41.8 38.7 40.6 Source: CSO Notes: Ageing index – number of people aged 65+ per 100 children aged 014 Economic burden index – number of children aged 0-14 and people aged 65+ per 100 people aged 15-64 Prague’s population has been growing older over the recent years particularly as a result of a significant decline in the number of children. In 2004, there were 146,000 children aged up to 14 (12.5%) living in Prague; which was by 50,000 fewer than 10 years before that (196,000 in 1994). There is a low birth-rate level in Prague in the long run compared with other regions (Prague 1.19, Czech Republic 1.23). The low share of children in the recent years has been also partially influenced by the migration of young families with children to the areas surrounding Prague. The children vs. overall population ratio in Prague remains lower than in the whole of the Czech Republic (14.9%). Table 6 Development of the age structure of the population of Prague and the Czech Republic (%) Age 0-14 Age 15-64 Age 65+ Prague 14.3 69.4 16.3 1998 CR 17.0 69.3 13.7 Prague 13.5 70.2 16.3 2000 CR 16.2 69.9 13.9 Prague 13.0 71.1 16.0 2002 CR 15.6 70.5 13.9 Prague 12.3 72.1 15.6 2005 CR 14.6 71.1 14.2 Source: CSO There have always been fewer children aged up to 14 than people aged over 60 in Prague. Despite the changes in methodology, which set the post-productive age at 65+ in 2000, the Operational Programme Prague – Adaptability 24 September 2007 10 trend still persists. The proportion of Prague’s inhabitants in the post-productive age is the highest of all regions, and in relation to the Czech average it is nearly by two percentage points higher. 2.2.2 Prognosis of Population Development The expected trends of the future population development in Prague do not differ from the estimates for the entire Czech Republic. The CSO expects an increase in the birth rate and a continued improvement in mortality rates; it also expects that Prague will remain a migration-plus area. Table 7 Projections of population development in Prague Live births Deaths Natural population growth Birth rate (‰) Mortality rate (%) Life expectancy - men Life expectancy - women Aggregate fertility rate 2006 11,187 13,869 2007 11,156 13,844 2008 11,051 13,829 2009 10,886 13,852 2010 10,676 13,871 2011 10,490 13,884 2012 10,280 13,916 2013 10,062 13,944 -2,682 -2,688 -2,778 -2,966 -3,195 -3,394 -3,636 -3,882 9.7 12.1 9.7 12.1 9.6 12.1 9.5 12.1 9.4 12.2 9.2 12.2 9.1 12.3 8.9 12.4 73.9 74.1 74.2 74.3 74.5 74.6 74.8 74.9 79.3 79.5 79.6 79.7 79.8 80.0 80.1 80.2 1.24 1.25 1.27 1.28 1.30 1.32 1.34 1.37 Source: CSO A high proportion of the oldest age bracket in the population should be an enduring characteristic for Prague. The shift of a numerous group of residents born after World War II to the post-productive age will lead, despite the expected higher fertility rate of women, to the preservation of an increase in the ageing index (number of people aged 65+ per 100 children aged 0-14). An expected slight decrease in the overall population is one of the main conclusions of Prague’s population projections. The age components will be influenced by the development of migration, especially from abroad. The mortality rate will continue improving, and the life expectancy will continue rising among both men and women. The number of people in the highest age brackets will increase the fastest, especially that of women. The number of people entitled to healthcare, social and advisory services is expected to rise. The population decrease in “downtown” Prague will continue. Key characteristics and trends à Positive population growth in recent years à Minimum territorial concentration of national minorities à Growing proportion of people in post-productive age in the region’s population – ageing population à Migration of families with children to regions outside of Prague à Strong migration potential of the region à Need to increase the effectiveness of the system of social and healthcare services Operational Programme Prague – Adaptability 24 September 2007 11 2.3 Economic Performance of the Region Approximately a quarter of the Czech Republic’s GDP (24% in 2005) is generated in Prague. GDP per capita in Prague reached 209.1% of the Czech Republic’s average in 2005. At present Prague highly exceeds the average values for the entire EU-25 (in 2005 GDP per capita in Prague was 54% higher). Higher GDP (generally typical for a metropolis) is related to a higher level of wages, localisation of activities with a high added value and the concentration of central bodies of the public and private sectors. Table 8 Economic performance of Prague in 2001-2005 Indicator Unit of measure ment GDP at usual prices GDP in % (CR=100) GDP per capita GDP per capita in % (CR=100) GDP in Prague per capita in PPS (EU-25=100) GDP in CR per capita in PPS (EU-25=100) 2001 2002 2003 2004 2005 CZK mil. 556,312 566,372 591,068 637,704 713,814 % 24.0 23.5 23.1 23.0 24.0 CZK 477,651 488,757 508,730 547,096 606,925 % 210.9 206.5 203.1 201.8 209.1 % % 139.3 66.0 139.7 67.6 139.9 68.9 143.0 70.9 154.0 70.5 Source: CSO, Prague Statistical Yearbook, Eurostat Prague is the strongest region of the Czech Republic in terms of labour productivity. In Prague the figure is over twice as high as the Czech Republic’s average. Key characteristics and trends à High economic performance of the region à High labour productivity à Concentration of central bodies of the public and private sectors in Prague 2.4 Situation on the Labour Market Prague constitutes the largest regional labour market in the Czech Republic. Approximately 760,000 people work there, of which over 600,000 live in Prague; 110,000 commute from other regions and 50,000 are foreigners (in total this constitutes 15% of the employment in the Czech Republic). Prague can draw on labour force of higher qualifications (62% of people older than 15 with a school-leaving certificate or university education) and the average wages are higher than in other regions of the Czech Republic (124% of the Czech Republic’s average). The unemployment rate is below average (2.7% in 2006) in relation to the statistics for the entire Czech Republic (6.6% in 2006). 2.4.1 Employment In 2005, the labour force in Prague stood at 637,500 (people living in Prague), of which 54% were men and 46% women. Prague’s share in the labour force for the whole of the Czech Republic reached 12.2% in 2004. During the same period, the number of economically inactive individuals (older than 15) in Prague was 394,700, i.e. 11.1% for the entire Czech Republic. Operational Programme Prague – Adaptability 24 September 2007 12 Table 9 Development of labour force in Prague and the Czech Republic in thousands of people Prague 645.4 340.5 304.9 Total Men Women 1998 CR 5,201.5 2,903.1 2,298.4 Prague 640.3 338.2 302.1 2000 CR 5,186.1 2,887.3 2,298.8 Prague 631.2 335.3 295.9 2002 CR 5,139.1 2,869.7 2,269.4 Prague 637.5 345.2 292.3 2005 CR 5,174.2 - Source: CSO The rate of economic activity in Prague is above the level of economic activity of the entire Czech Republic (in 2004 62% in Prague compared to 59.4% in the Czech Republic). The highest rate of economic activity is observed in the 35-54 age brackets, while the lowest is seen in the age category of 19 and lower, which is, of course, related to the preparation of these individuals for their future employment. The economic activity of the individual age groups is roughly stabilised; a decline occurs for the age brackets of 60 years and over. Table 10 Rate of economic activity 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 61.6 61.5 61.2 61.1 61.0 61.0 60.4 60.0 59.8 59.4 59.2 59.4 61.7 62.1 62.1 62.3 63.0 63.3 62.7 62.6 62.5 62.5 61.3 62.0 Czech Republic Prague Source: CSO Chart 11 Rate of economic activity in Prague by age brackets in 2001-2004 in % 2001 100 2002 90 2003 80 2004 rate 70 of economic 60 activity 50 40 30 20 10 0 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65+ age group Source: CSO The highest rate of economic activity is observed among people with university education. While the rate of economic activity is nearly the same for men and women with elementary education and without education, in the secondary education group men have a higher rate of economic activity than women. Operational Programme Prague – Adaptability 24 September 2007 13 Table 12 Qualification structure and rate of economic activity by education and gender Type of education Elementary and no education Secondary without schoolleaving certificate Secondary with school-leaving certificate Higher Men Elementary and no education Secondary without schoolleaving certificate Secondary with school-leaving certificate Higher Women Elementary and no education Secondary without schoolleaving certificate Secondary with school-leaving certificate Higher 2001 18.5 2002 14.9 2003 20.3 2004 19.1 67.0 65.7 64.0 62.5 68.2 80.1 70.8 21.6 66.8 80.1 70.9 13.2 67.3 78.5 70.7 19.8 65.3 77.8 70.0 23.0 78.1 77.5 76.9 76.0 74.3 81.5 55.4 16.7 73.0 82.7 55.2 15.9 72.4 82.5 55.3 20.7 71.3 80.4 53.6 16.7 53.7 51.8 49.4 46.9 64.0 78.1 62.5 76.6 63.8 73.2 61.0 74.3 Source: CSO The total number of employed people in Prague has been declining since 2000, but in 2005 it started to slightly grown again. The number of employed men increased (most since 1998) as well as that of employed women (to the level of 2002). Table 13 Employed people aged 15+ in Prague and the Czech Republic (in thousands of people) Total Men Women Prague 624.4 331.7 292.7 1998 CR 4,865.7 2,756.9 2,108.8 Prague 613.4 326.3 287.1 2000 CR 4,731.6 2,675.7 2,055.9 2002 Prague 608.3 325.8 282.4 CR 4,764.9 2,700.4 2,064.5 Prague 615.2 334.7 280.5 2005 CR 4,767.1 2,705.4 2,043.2 Source: CSO, SLFS Most people are employed in retail, motor vehicle repair and consumer goods (16% in 2004), followed by employees in areas dealing with real estates, rentals and private trading activities (14%). Other major areas are transport, warehousing and communications (10%), processing industry (10%), construction (9%), public administration (8%), health and social care (9%). Women in Prague are mostly employed in retail and repair shops (15%), real estates and rentals (13%), health and social care (13%) and education (11%). Operational Programme Prague – Adaptability 24 September 2007 14 Table 14 Employment in Prague by sector activities 1998 2000 2002 2005 1998 2000 2002 2005 total women Total 624.4 613.4 608.3 615.2 292.7 287.1 282.4 280.5 Agriculture, hunting and keeping, mineral resource mining 2.6 4.7 3.6 2.9 0.7 1.7 2.0 0.9 Processing industry 74.6 63.7 62.5 52.8 27.4 22.4 20.7 19.2 Power, gas and water production and distribution 10.1 8.0 11.0 9.5 2.8 2.1 2.9 2.7 Construction 61.6 59.3 54.1 61.2 7.6 7.6 7.0 6.6 Retail, motor vehicle repairs and consumer goods 108.7 107.9 96.2 93.6 54.2 52.3 45.9 43.9 Catering and accommodation 30.1 27.3 33.2 31.9 15.9 13.7 16.2 15.3 Transport, warehousing and communications 57.0 63.9 51.5 53.8 20.8 22.4 17.4 17.4 Financial brokering 29.9 24.7 29.6 25.4 19.7 16.0 15.8 13.1 Real estates, rentals and private trading activities 78.1 85.2 76.1 88.1 35.3 39.3 33.9 38.0 Public administration and defence, obligatory social security 45.6 44.4 46.2 51.2 23.9 24.8 25.8 28.7 Education 38.3 38.0 47.3 48.5 26.6 27.9 34.8 35.5 Health and social care, veterinary activities 41.5 39.9 46.6 47.0 32.8 31.0 34.4 34.3 Other public, social and personal services 45.4 46.2 49.6 47.1 24.2 25.2 25.0 24.1 Source: CSO Nearly an 80% share in Prague’s employment is held by the tertiary sector, while the percentage of the primary sector is less than 1%. Between 1995 and 2004 there were several major changes in Prague: the banking and insurance sector strengthened (rise in the number of employees by 29%); the number of employees working on the real estate market grew (by 13%); the transport, warehousing and logistics sectors also showed an increase (by 10%). The data available also show a shift of employees to the social and health services area. Table 15 Development of sector employment in Prague in 1998-2005 (in %) Primary sector 1998 0.3 1999 0.3 2000 0.7 2001 0.6 2002 0.5 2003 0.4 2004 0.3 2005 0.6 Secondary sector 23.5 22. 6 21.4 22.1 21.1 21.4 20.6 21.3 Tertiary sector 76.0 76.8 79.2 77.1 78.3 78.0 79.1 78.1 Source: CSO, EUROSTAT Agriculture recorded a drop of 15%; there was also a drop in employment in the mining of mineral resources. Table 16 Sector employment in Prague, the Czech Republic and the EU in 2004 Czech Republic EU (15) Prague 4.3 3.8 0.3 Secondary sector 39.2 24.2 20.6 Tertiary sector 56.5 72.0 79.1 Primary sector Source: CSO – SLFS, Labour market – employment in NE by sectors, ICEA, EUROSTAT The employment structure in Prague is markedly different from the employment structure in the Czech Republic. The highest share is held by employment classification groups 1-4 (i.e. legislators, executives and senior management, scientists and professionals, technical, healthcare workers and teachers; administrative staff and clerks) – with a total of 67.8%, Operational Programme Prague – Adaptability 24 September 2007 15 while the same share for the whole Czech Republic is only 46.4%. Prague’s share of the mentioned employment classification groups 1-4 constitutes 79% of the entire Czech Republic. This is caused by the low number of people employed in industrial plants as a result of the transformation of industry in the region and the development of employment in service sectors (retail, real estates, rentals, private trading, accommodation, catering, transport, warehousing and communications, public administration, health and social care and other public services). There is a distinct rise in the number of scientists and professionals, influenced by the large concentration of universities and scientific institutions and an increased interest of business entities to spend more on research and development. Table 17 Number of employees in Prague by employment classification (in thousands) 1998 2000 2002 2004 1998 2000 2002 2004 total Total 624.4 613.4 608.3 601.3 Legislators, executives and senior management 45.2 50.7 54.4 45.0 Scientists and professionals 117.1 137.6 134.5 148.3 Technical and healthcare workers and teachers 146.0 146.3 152.8 155.0 Administrative staff (clerks) 75.2 59.1 63.8 59.1 Service and retail staff 78.9 68.9 74.9 62.4 Skilled agricultural and forestry workers 1.6 1.7 2.2 1.2 Craftsmen and skilled manufacturers, processors 83.5 77.6 66.5 67.3 Machine and equipment operators 36.4 30.9 27.5 31.9 Assistant and unskilled workers 36.8 36.3 28.7 29.0 Members of the armed forces 3.0 2.8 1.9 0.6 Not stated 0.6 1.6 1.0 1.4 women 292.7 287.1 282.4 275.8 10.1 11.0 15.4 12.5 57.1 68.9 64.2 73.2 79.7 80.8 79.8 81.6 62.1 47.2 53.1 50.9 50.7 44.3 42.9 34.3 0.7 0.0 0.9 0.0 8.8 9.4 5.4 5.3 3.5 2.6 2.4 3.3 20.0 22.0 18.1 14.1 0.0 0.0 0.0 0.0 0.0 0.6 0.0 0.0 Source: CSO – SLFS, Labour market – employment in NE based on employment classification and position at work The largest group among Prague’s economically active inhabitants comprises employees (78% in 2004, 87% of women), although the overall number of employees is decreasing. On the other hand, the number of self-employed people (i.e. who conduct business predominantly on the basis of a trade licence) rose (99,000 in 2004) and their share in the total labour force is 16%. The number of self-employed women has stagnated since 2000 (28,000-29,000) and represents 10% of the total female labour force. Table 18 Development of the number of employees in Prague by position at work (in thousands) 1998 2000 2002 Total 624.4 613.4 608.3 Employees 516.1 487.2 471.8 Employers 29.0 33.6 33.8 Self-employed 74.6 86.8 97.6 Members of production co-operatives 0.9 1.4 0.0 Assisting family members 3.7 4.1 4.9 2005 1998 2000 2002 2005 total women 615.2 292.7 287.1 282.4 280.5 486.4 259.2 245.4 240.9 242.8 26.2 6.8 8.4 8.5 5.7 99.1 22.8 29.5 28.9 29.3 0.4 0.0 0.0 0.0 0.1 3.2 3.6 3.3 4.2 2.6 Source: CSO – SLFS, Labour market – employment in NE based on employment classification and position at work Operational Programme Prague – Adaptability 24 September 2007 16 The share of Prague in employment of foreigners in the CR stands at 35%. The largest number of work permits (71% of all permits issued as at 31 December 2006) were granted to foreigners from Ukraine (67% of work permits in construction), the second largest number were for citizens of Russia, then Moldova and the USA, 40% of whom work in education (lecturers and language teachers). Table 19 Employment of foreigners, EU, EEA and Swiss nationals in Prague Foreigners (work permits) EU / EEA / Swiss citizens 2001 13,066 - 2002 16,947 - as at 31 December 2003 2004 18,692 15,931 18,461 2005 25,602 24,520 2006 27,223 33,223 Source: Labour Office of the City of Prague The employment structure in the Prague region is, at the fundamental level, comparable with advanced EU countries and has a potential of flexible response to the quickly changing economic conditions. In 2004, executives and senior managers earned the highest wages (CZK 58,244). The lowest gross monthly wages were earned by unqualified workers (CZK 13,084). A slight year-onyear drop in the gross monthly wages was recorded for scientists and professionals, technical, healthcare workers and teachers. A slight year-on-year rise was recorded for other classes of the employment classification. In 2004 the overall average wage among men saw a slight year-on-year drop, while women’s wage at that time went through a slight rise. The wage median for men was CZK 23,969, for women CZK 19,564. Table 20 Development of average nominal wages (in %, CR = 100%) City of Prague 1997 121.6 1998 123.6 1999 124.0 2000 125.3 2001 125.8 2002 126.5 2003 124.6 2004 124.4 2005 125.8 Source: MoLSA based on data from CSO Already since 2000, part-time jobs constitute 6% of all jobs in Prague. In 2003 it was 7.1% compared to 3.2% in the whole of the Czech Republic and 16.6% in EU-15 (using the OECD methodology – it is a percentage of employed working for less than 30 hours per week and it includes both employees and self-employed). In Prague there is a major difference in the share of part-time jobs between men and women; the share of men with a part-time job in 2004 was 3.1%, while the share of women with a part-time job was 10.2%. Table 21 Number of part-time employees in Prague (in %) 2000 2001 2002 2003 2004 Total 6.2 5.9 6.7 7.1 6.4 Men 3.0 3.6 3.4 4.0 3.1 Women 9.8 8.6 10.6 10.6 10.2 Source: CSO – SLFS Note: Includes employed people normally living in the Prague region regardless of the location of employment Operational Programme Prague – Adaptability 24 September 2007 17 2.4.2 Unemployment Owing to the range of occupations it offers, the Prague labour market was able to absorb nearly all of the labour force released during the transformation process as well as new arrivals (the unemployment rate in the first half of the 1990s was around mere 1%). Since 1999 the registered unemployment rate in Prague has increased (similarly to other regions of the Czech Republic), but has dropped again in the past two years and remains below half of the national average. Table 22 Development of unemployment in Prague in 1995-2006 (as at 31 December) 1995 1998 2000 2001 2002 2003 2004 2005 2006 1,854 14,580 21,832 21,632 23,691 25,448 26,727 24,571 21,364 Job seekers 55.0 56.5 53.2 52.1 52.6 52.3 52.5 52.9 53.1 Share of women (%) 14,432 5,370 4,906 7,658 7,685 8,482 14,583 11,119 16,192 Vacancies Registered 0.3 2.3 3.4 3.4 3.7 4.0 4.2 3.2 2.7 unemployment rate (%) Source: CSO The unemployment rate of women is higher than that of men. The share of women among job seekers has recently been around 53%; the rate of their registered unemployment exceeds 3% (3.8% in 2005 and 3.2% in 2006). The share of women unemployed in the long term (for more than 6 months) is approximately 73%. The largest group of unemployed people consists of job seekers with vocational education, CSV with a school-leaving certificate and people with elementary education. Table 23 Educational structure of job seekers (as at 31 December 2005 in %) No education and incomplete elementary education Elementary education Lower secondary education Lower secondary vocational education Secondary vocational education with a vocational certificate Secondary, secondary vocational without a school-leaving certificate or a vocational certificate CSE CSE with a vocational and school-leaving certificate CSE with a school-leaving certificate (without a vocational certificate) Advanced specialized education Bachelor’s degree University, college PhD Total Total 0.4 18.3 0.4 1.2 Women 0.4 18.8 0.4 1.2 32.5 28.2 1.7 2.3 5.1 5.2 5.9 4.3 22.8 27.1 1.2 0.8 10.3 0.1 100.0 1.3 0.8 9.2 0.1 52.9 Source: Labour Office of the City of Prague Unemployment for a period longer than 6 months is observed in about 45% of all unemployed persons (as at 30 June 2005). 34.8% of job seekers are registered as unemployed for up to 3 months. The unfavourable rise in the number and share of job seekers registered for over 9 months is a continuing trend. The average length of unemployment registration, which was 295 days as at 30 June 2004, rose to 319 days as at 30 June 2005 and reached 326 days as at Operational Programme Prague – Adaptability 24 September 2007 18 31 December 2005. A typical characteristic for long-term unemployment is low education. Due to a lack of specific measures, the participation of this group in re-qualification programmes is clearly insufficient. Women are more at risk of long-term unemployment than men. A first-hand solution is a targeted and individual consultancy stimulating motivation and activation, including specialised activities leading to an employment increase. Chart 24 Share of men and women in groups by the length of unemployment as at 31 December 2005 Share of men and women in groups by the length of unemployment as at 31 December 2005 18.0% 17.0 16.1 16.0% 14.0% 11.9 12.0% 10.1 10.0% 7.8 8.0% 6.7 6.2 6.2 5.5 6.0% 4.8 4.1 3.4 4.0% 2.0% 0.0% up to 3 months 3-6 months 6-9 months 9 -12 months men 12-24 months 24+ months women Source: Labour Office of the City of Prague The age structure of job seekers has not seen any significant changes in recent years. Most job seekers are aged between 50 and 54 (14.7%); female job seekers account for approximately one third of this category. The average age of job seekers has risen by two years, i.e. to 40 (for women as well). The greatest increase has been observed in the share of job seekers aged over 55. The highest total drop in comparison with 2004 has been recorded among job seekers aged up to 24. Table 25 Age structure of job seekers (as at 31 December 2005, in %) Age up to 19 Age 20-24 Age 25-29 Age 30-34 Age 35-39 Age 40-44 Age 45-49 Age 50-54 Age 55-59 Age 60+ Total Total 3.4 12.6 13.5 12.1 9.7 9.4 9.5 14.7 12.9 2.3 100.0 Women 2.9 10.1 12.6 13.9 11.4 10.4 10.8 16.4 11.0 0.4 52.9 Source: Prague Quarterly statistics Operational Programme Prague – Adaptability 24 September 2007 19 There are extremely few vacancies suitable for individuals with health disabilities in the offer of available jobs (S. 67 of Act No. 435/2004 Coll., on Employment, as amended). The primary cause is the limited range of opportunities that disabled people have for work, with regard to their disabilities, often linked to low or no qualifications. The negative influences also include a change from a full disability pension to a partial disability pension and a frequent lack of working skills and expertise (often due to collecting social benefits), the employers’ fear of frequent or long-term work incapacity, and also a lack of the specific individuals’ interest in the work process. The motivation tools specified in Act No. 435/2004 Coll., on Employment, as amended, have had a certain positive influence. Job seekers with health disabilities constituted 11.8% (2,890 people) of the total number of job seekers as at 31 December 2005, of which 2,476 people were partially disabled job seekers. Table 26 Number of disabled job seekers (as at 31 December) Disabled persons Share in the total number of job seekers (in %) Fully disabled Partially disabled Job seekers with health disabilities 2001 2,781 2002 2,876 2003 3,137 2004 3,100 2005 2,890 12.9 13.3 12.3 11.6 11.8 - - - 70 2 510 54 2,476 - - - 455 360 Source: Statistics of the Labour Office of the City of Prague In general, an increased care in employment brokerage is necessary in the category of young people, which includes people aged up to 25 and university graduates up to two years after the successful completion of study, but not aged over 30. The graduates of higher specialised schools and universities are less prone to unemployment; in contrast, people with elementary education or incomplete elementary education constitute the biggest risk group exposed to unemployment. The share of graduates unemployed in the long run also depends on the level of education reached: the lower the level of education, the higher the share of long-term unemployment. The ratio of the number of registered graduates and young people in Prague to the overall number of registered job seekers is, in comparison with 2004, significantly lower in both absolute and relative terms. As at 31 December 2004 it stood at 7.7% and in 2005 it was 6%. Of the total number of graduates and young people, the largest share among the unemployed is repeatedly held by graduates with CSV with a school-leaving certificate (30%) and with a vocational certificate (18%). Key characteristics and trends à Unemployment in the region below the Czech Republic’s and the EU average à High degree of economic activity of residents, including women, in comparison with the EU-15 à Higher share of highly qualified people in the labour force à Rise in the number of self-employed people à More expensive labour force as compared to other regions of the Czech Republic – higher average wages à Increase in the number of scientists and professionals in recent years à Low rate of utilization of part-time jobs (6.4% compared to 16.6% in the EU-15) à Trend towards extending the average length of unemployment Operational Programme Prague – Adaptability 24 September 2007 20 à Increase in the number of long-term unemployed people, especially among women à Lack of job opportunities for the disabled à Above-average share of foreigners in the Prague labour market 2.5 Risk Groups and Equal Opportunities The level of social integration depends on the possibility of equal access of all people to social funds. There are groups of people who for various reasons have limited opportunities to access these funds. 2.5.1 Risk Groups The 2007-2013 National Development Plan of the Czech Republic defines the following risk groups: individuals with health disabilities, children, youths and young adults, seniors, ethnic minorities, immigrants and asylum seekers, homeless people, people leaving an institutional facility, people leaving facilities for serving a sentence of imprisonment, crime victims, victims of domestic violence, commercially abused persons and victims of human trafficking. As regards employability, the potential target groups include, in addition to those mentioned above, also graduates within two years of finishing their study (but not aged over 30), pregnant women, mothers up to 9 months after childbirth, persons taking care of children aged up to 15, persons aged over 50, people registered as job seekers for over 6 months, persons requiring special assistance, particularly persons who temporarily find themselves or live in extraordinarily difficult circumstances, persons socially inadaptable and persons with a socially and culturally disadvantaged background. Disabled persons Valid statistical data on the number and the structure of disabled persons are not available in the Czech Republic or in Prague. The qualified estimates place the figure at 12% of the population. This group includes citizens whose status has not been recognised as disabled, but who have disabilities that limit their possibilities on the labour market. The care for disabled persons is provided in Prague, just like in the rest of the Czech Republic, in institutional facilities and in their natural social environment in which they live with parents or other close persons. Persons tending to disabled people cannot therefore enter the labour market. Their higher employability can be achieved through the development of supporting social and healthcare field services. The development of field services and the distribution of the necessary information on them will also lead to lower demands on institutional care. Children, youths and young adults The most frequent causes for the social exclusion of children and young people include: unemployment of parents, health disabled parents or children, incomplete family, excessive number of household members, immaturity of parents, dysfunctional family, low education, unfavourable social situation (bullying, running away from home, family break-up, abuse, especially sexual abuse) and social marginalisation. In the Czech Republic and in Prague there is an evident increase in the socially deviant behaviour among children from socially weak families and in the number of problem children from well-situated families. The problem is the absence of a prompt delivery of social assistance. Operational Programme Prague – Adaptability 24 September 2007 21 Persons leaving an institutional facility For people leaving institutional care, the causes for exclusion are especially deficiencies in the subsequent care in the area of social services and in the delivery of employment and available accommodation. There is a problem if these services are not provided concurrently. An obstacle is posed by the insufficient co-operation of the other involved entities – towns and labour offices. NGOs do not manage to cover the actual needs of all those leaving institutional care. Seniors Seniors make up a significant population group in Prague as the region with the highest ageing index in the Czech Republic. The current generation is very heterogeneous. Seniors are more educated and women are more emancipated. Based on the sub-classification of the 65+ age group there is a marked rise in the number of the elderly. A typical trait is the much higher proportion of women, those living alone and those widowed. The risk groups of seniors prone to social exclusion can be defined using the definition formulated by the World Health Organization (WHO); they include people aged over 80, those living alone, people in institutional facilities, the childless, people with serious diseases and health problems, couples in which a partner is seriously ill or disabled, poor people. In a large number of elderly persons, there is an accumulation of the above-mentioned factors. One of the results of the aging population is an increase in the needs and consumption of social and health services. In Prague, the demand for residential social services is on the rise. Among those in need are a high proportion of people requiring intensive nursing care that rest homes cannot provide, and the capacity of nursing facilities is insufficient. At the same time, many needs of seniors can be accommodated with the help of family caretakers and through suitable services provided in a natural environment. Approximately 80% of the care for elderly care-dependent people is provided by the family. The average care period is 4-5 years. The persons providing care are most often women, most of whom are employed. Ethnic minorities The ethnic minority most at risk of social exclusion in Prague are the Roma. During the population census taken in 2001, nearly 12,000 people (0.1%) declared themselves as members of the Roma nationality in the Czech Republic, while the actual number is estimated at between 160,000 to 200,000 people; sometimes the total number is estimated at 300,000. The number of Roma living in Prague is estimated at 20,000 to 25,000. The risk of social exclusion mostly concerns unemployment and the related dependence on the benefit systems of social protection. Other factors include the complicated residential situation and the low level of education of the Roma population. Many Roma attempt to make a living on the black market, sometimes as a consequence of overt or latent discrimination. Immigrants and asylum seekers Prague is a natural target for new migration. The residency of foreigners and the opening-up to the world create a multi-cultural environment that brings with it both positive and negative phenomena. The groups of immigrants are extremely heterogeneous. The rate of integration varies depending on the specifics of each ethnic group. Generally speaking, the different legal status, the complicated inclusion conditions, the cultural origin, the awareness of the legal environment of the Czech Republic and the availability of information lead to varying levels of social exclusion. There has not yet been a comprehensive study of the life of the various Operational Programme Prague – Adaptability 24 September 2007 22 communities, which is why we can only draw on a few partial studies. We can infer from them that the threat of social exclusion is real for many ethnic groups and that it can over time lead to social problems and a threat to social cohesion. According to CSO data, as at 31 December 2005, there were 89,000 foreigners living in Prague, which constitutes a third of all foreigners staying in the Czech Republic beyond the framework of a tourist visit. Most of the foreigners living in Prague hold a long-term residency permit (63%), 28% have permanent residency in Prague. The population of foreigners living is Prague does not differ in terms of citizenship from the rest of the Czech Republic. A third of them come from Ukraine, 16% from Slovakia, 10% from Russia. Other highly represented countries are Vietnam and China. Illegal immigrants are generally considered to be exposed to the biggest risks. Their number is estimated at 200,000. Most of them are immigrants from Ukraine and other countries of the former Soviet Union. Persons without shelter Prague has become the natural centre of homeless people in the Czech Republic over the past ten years. The main reasons are the anonymity guaranteed by the number of residents and the region’s economic force. In the past it was easy to find short-term or occasional work and cheap accommodation in Prague. But the conditions have significantly changed in recent years. There has been a dramatic decrease in the number of jobs and cheap accommodation has become increasingly difficult to find. People coming to Prague therefore often find themselves on the streets without any background and are unable to improve their situation without help. Based on the census of the homeless taken in Prague in 2004, there are evidently over 3,000 of them living there, with women constituting 14% of the total number (Homeless Census Prague 2004, LSARI 2004). Persons leaving facilities for serving a sentence of imprisonment Persons released after serving a sentence of imprisonment encounter difficulties when they attempt to find a suitable job (e.g. a clean criminal record is often a condition for applying for a job), to find suitable accommodation or housing in general. Often these individuals experience a family break-up and the deracination from a familiar environment accompanying it, as well as rising debts. Victims of crime, victims of domestic violence, commercially abused persons and victims of human trafficking The Czech Republic has gradually become a target country for human trafficking. More than other regions, Prague offers anonymity and the market space. One of the forms of human trafficking is trade for the purpose of sexual exploitation and prostitution brokerage. The victims are women from Eastern European and Asian countries; they are forced into prostitution or transported on to Western Europe. The victims usually display a low degree of willingness to co-operate with the police. The second most common form of human trafficking involves people traded for the purpose of forced labour. Labour exploitation of foreigners is not a marginal problem; instead it is a common part of the migration reality in the Czech Republic. It is related to illegal migration and the concept of the so-called clientelism that offers brokerage of informal work in non-market ways. Violence in families and violence between partners where women and children, but also seniors and disabled family members are often the victims, is covered by the National Report on Families, MoLSA 2004. Operational Programme Prague – Adaptability 24 September 2007 23 2.5.2 Social Economy A specific feature of social economy is the integration of disadvantaged groups of people into the society in relation to the development of local services and the economy. Its contribution to the opening of new jobs and the improvement of the quality of life in a given place is widely recognised, as it flexibly develops social and healthcare services, services for dependent household members, retail services and selected production activities that are subject to demand. It is a source of trading activities conducted mainly by NGOs. The abatement of social exclusion requires the introduction of inclusive procedures and mechanisms, which definitely include an expansion of social services and social economy (Integrated Guidelines for Growth and Jobs 2005-2008, European Commission). In social economy, the main attention is focused on merging social and economic goals (the new business spirit). The social economy entities are parts of the local economy, whereas the cooperative form of ownership is equal to the others. The support of social economy is a tool for social inclusion, increasing local jobs, local development and economic development contributing to the balanced development and prosperity of the respective places. To date there is only a limited awareness in the Czech society of what social economy means and what it serves. There is no explicit government document introducing the concept of social economy. Some social economy topics are supported by the EQUAL initiative. NGOs constitute an important group with a potential to strengthen the social economy sector. The share of this sector in the total employment in the Czech Republic is estimated at 3-4% and its market force ranges between CZK 35bn and 50bn per year. If we include voluntary participation, the share in the total employment is 5-6%. At present, NGOs operate more in social services than in employment services. The main causes for the low capacity in the area of social economy are the general underdevelopment of NGOs in the Czech Republic, its dependence on one-year grants, its fragmentation and capital weakness and also an extremely small number of companies with social policies. To rectify these problems it will be necessary to support partnerships at the regional and local levels, to support the development of managerial skills and professional capabilities of workers in organisations with a potential to operate in the social economy sector, to increase the quality of consultancy and the availability of investment capital, to support new forms of social services and the direct involvement of clients in the usual course of life (including job opportunities on the labour market). 2.5.3 Social Services There are 585 providers of social services in the City of Prague. The structure of social and healthcare services has gradually expanded in recent years, but the necessary changes are limited by financial and capacity-related possibilities. The main trend in these changes is the individualisation of the provided care. An analysis of social service providers operating in Prague conducted in 2005 showed that the largest number (roughly a third) of the providers of social services had been established between 1990 and 1993. In 1994-1997, another 27% of the organisations were founded, of which a vast majority were civic associations. Operational Programme Prague – Adaptability 24 September 2007 24 Table 27 Social service providers in Prague Category Help-lines, crisis assistance and intervention Victims of violence, crime Consultancy, assistance with the exercise of rights and interests Psychotherapy, social therapy and diagnosis Children and youths Family, family problems Seniors Physical disability, health disability Mental disability, autism Mental illness Homelessness Asylum shelters, dormitories, accommodation Addictions Sexual problems, AIDS, prevention against STDs Youth centres for children in need, streetwork Gender Employment services, sheltered workshops Prisoners and released prisoners Foreigners and refugees, human rights Minorities Charities, humanitarian aid City boroughs Number of providers 34 8 259 74 135 54 131 188 48 30 28 23 40 11 7 4 12 14 11 6 49 23 Source: Report on the analysis of social service providers operating in the City of Prague, City Centre for Social Services and Prevention, February 2005 An overwhelming majority of the service providers delivers comprehensive social services to several target groups. 33.8% of the organisations offer services to seniors, 32.4% to physically disabled people and the same number provides crisis care. 31.5% of the organisations specialise in families with children, 27% provide services to people with combined disabilities and 26.1% to mentally disabled persons. Relatively few organisations provide services to refugees, persons prone to prostitution and HIV-positive persons and those suffering from AIDS. Geographically, most of these facilities are located in the centre of Prague. In a clear majority of the service types, NGOs account for over 50% of providers, with the exception of home care services and foster care. In 2003 the main financial resources of service providers were subsidies from the Ministry of Labour and Social Affairs (21.5% of respondents) and from the City of Prague (20.6%). Approximately 3,900 employees, 75% of which were in direct contact with clients, worked in the surveyed organisations. The providers and sponsors of social services generally respond to a situation that arises on the basis of the current needs and without a longer-term systematic solution. The way of solving the problems depends on the specific organisation’s position. The organisation of social services has until now lacked a regional strategy and medium-term (community) planning. (See Analysis of social service providers operating in the City of Prague, City Centre for Social Services and Prevention, 2005). The objective of community planning in Prague is to expand a regional project whose implementation began in 2006 using SPD 3 funds. The need for any additional support of community planning will be analysed following the completion of this project in order to implement the OPPA. Operational Programme Prague – Adaptability 24 September 2007 25 2.5.4 Non-governmental Non-profit Organisations Czech legislation has not defined the term “non-profit organisation” yet. This causes problems in the activities of non-governmental non-profit organisations (NGOs), since the operation of legal entities of a non-profit type is governed by special acts. In addition to the administrative obstacles due to this legally unclear concept, there is only a limited group of legislative and NGO specialists in the Czech Republic. Even though subsidies, grants and donations are free of tax, the stipulated limit for possible deductions is insufficient and does not provide an incentive to develop donorship. NGOs include civic associations, benevolent societies, foundations and endowment funds and special-purpose religious facilities. In 2003, there were 160 foundations, 240 endowment funds, 8,641 civic associations and 233 benevolent societies in Prague. 16% of the NGOs in the Czech Republic operated in Prague; but their range of operation is not limited to the Prague region. A specific aspect of Prague is that it is the seat of NGOs’ umbrella organisations that incorporate similarly orientated NGOs. The activities of Prague’s NGOs mainly concern the delivery of services that the city either provides in a limited extent or does not provide at all. Table 28 Number of NGOs in 2003 Civic associations Benevolent societies Foundations Endowment funds Religious legal entities Total Prague 8,641 233 160 240 9,275* Czech Republic 50,997 884 350 859 4,946 58,036 Share 16.9% 26.4% 45.7% 27.9% 16.0% Source: Czech Statistical Office, November 2003, NGO Information Centre Note: *not including religious legal entities NGOs play an extremely important role in the community. They have an irreplaceable role as the providers of social services to disadvantaged groups and also operate in the field of social services not covered by the public sector. They are also essential in environmental education and teaching. The perception of NGO activities is mostly positive in the eyes of the public. NGOs try to obtain a true and accurate picture of the needs of the society, but usually do not have the capacities for marketing research of the specific needs of their target groups and therefore often determine the actual needs on the basis of a qualified estimate. The basic problems of NGOs include insufficient human resources and capital weakness. People working in the NGOs are often only employed for the duration of a project. The employees’ work is not always specifically described. There is a general lack of managers with managerial skills and organisation managers. NGOs work with volunteers, but rarely have a systematically compiled list of volunteers. Based on Act No. 198/2002 Coll., on Volunteer Service and on Changes to Some Laws, as amended, the preparation and training of volunteers are the responsibility of accredited volunteer centres. It can be said that the activities of NGOs suffer from a long-term lack of funds, which leads to limited opportunities to train managements and improve the quality of their activities. Most NGOs consider their fundraising to be insufficient. This is caused by the insufficient level of Operational Programme Prague – Adaptability 24 September 2007 26 the overall leadership and the unclear processes within the organisation. Skills lacking in financial and marketing management have a negative impact. It is therefore justifiable to recommend that an emphasis be placed on the systematic development of NGOs so that it could help increase the employment opportunities in this area. This development should include, in particular, the strengthening of management, fundraising and other professional training of NGO employees at general and specific levels. At the same time an emphasis must be placed on NGO networking in the relevant thematic areas, with a focus on engaging them in the European network where applicable. The links of NGOs to public administration vary at each level. The City of Prague has an elaborate grant strategy and rules for supporting NGOs, while support coming from the city boroughs is random and improvised. Public administration only carries out joint projects with NGOs in certain areas (especially in dealing with the Roma, anti-drug and community issues, issues concerning minorities and questions of human rights). In other areas (especially social and health ones) public administration is the customer for services that NGOs provide. Specific aspects of small NGOs Due to their capacity, small NGOs do not have the chance to reach the support provided by complex grant proceedings organized for funds drawn from the EU Structural Funds. A simplified form of utilising support from the ESF is appropriate for building up an absorption capacity, strengthening networks and the quality of social services provided by small NGOs. According to the study “Czech Civic Society 2004: Fifteen Years of Development” compiled in 2005 within the framework of the CIVICUS Society Index project, social services are one of two fundamental topics for NGOs in the Czech Republic (the other area involves environmental protection). Even though the civic sector in the Czech Republic (including Prague) has been developing for 15 years, numerous organisations work only on a voluntary basis. A regional questionnaire that served as a basis for the said study showed that a large majority of NGOs considered financing to be their biggest problem. Nearly 80% of respondents stated that the financing of their NGO was insufficient. The issue of human resources is related to financing and most organisations rely on volunteer work without the possibility of professional background; only large and established organisations can afford to employ a fundraiser, a qualified accountant, a lawyer or a public relations expert. Based on the 2004 survey of the Non-Profit Sector Research Centre, only about a third of NGOs have more than two employees. Without a background of professional employees, a grant from the OPPA is unattainable for these organisations due to the administrative and capacity-related demands. Owing to the smaller size of the intervention, it will be possible to reinforce the capacity and volume of social services provided by small NGOs. The benefit of NGOs is evident in the more successful presentation of neglected issues in the society. A recent example in the Czech Republic is domestic violence. In Prague there are active and influential volunteer-based NGOs with a smaller member base that provide services to physically and mentally disabled or socially disadvantaged people, drug prevention, etc. The advantage of these organisations compared to the State is their ability to provide services to clients more cheaply and the achievement of a higher satisfaction rate among social service beneficiaries. The study “Czech Civic Society 2004: Fifteen Years of Development” states that 61% of respondents who received social services from the State and from an NGO in 2004 believed that NGOs helped them more. Operational Programme Prague – Adaptability 24 September 2007 27 The civic society index, developed in the above-mentioned study, shows that the further development of the Czech civil society will depend on the strengthening of the structure, networking, co-operation and communication among NGOs. The structuring and networking of NGOs can be provided for by umbrella NGOs – umbrellas that cover individual fields or regions. The study “Umbrella Organisations for Related Fields in the Civic Sector in the Czech Republic 2005” carried out by the Civil Society Development Foundation for the of and by the Faculty of Humanity Studies of the Charles University focused on the specifications in the operation of these organisations. The number of umbrella organisations active in the CR is estimated at 80; most of them are seated in Prague. Umbrellas, similarly to non-umbrella NGOs, struggle mostly with funding. They mainly make use of the volunteer work of their members. A third of all umbrellas do not have any employees, a third have one or two employees. More than a half of all umbrellas have less than CZK 100,000 in assets. The research also ascertained that umbrella members perceive the following as the most serious problems and future challenges: 1) financing, 2) professionalization of organisations and 3) co-operation with public administration. 2.5.5 Equal Opportunities By signing the Convention for the Protection of Human Rights and Freedoms, the Czech Republic undertook to observe the rights and freedoms without discrimination for any reason, including gender. Although these principles are part of the Czech legal system, in practice there are certain inequalities and discrimination. The principle of equal opportunities of men and women is a hot issue mainly on the labour market in the Czech Republic (including Prague). Taking care of the family and its dependent members is still considered part of the woman’s role. Women, even those who prefer having a career to having a family, are considered to be individuals burdened by domestic obligations. This leads to a conflict of work and family roles. Most women seek a way to manage family care without jeopardising their own careers. The currently available flexible forms of employment such as part-time jobs, position sharing, etc., are rarely used. It is more difficult for women to find their position on the labour market. From the employers’ viewpoint, the biggest risk group includes mothers with children. The employment of women in the Czech Republic reached 2,043,500 in 2004, i.e. 45.5% of women over 15. The share of women in the overall employment rose only slightly (from 43.2% to 43.4%). While men predominate in the primary and secondary sphere of the economy, women dominate in the tertiary sphere. With regard to professions, most women in the Czech Republic are seen as junior administrative workers (80.4%) and operating workers in services and retail (64.3%) and assistance and unqualified workers (60.5%). This also influences the existence of a difference in the remuneration of women and men. In 2004, the share of women’s average wages to those of men was 80.9% (compared to 74.4% in 2001). The rate of registered unemployment from 1999-2006 ranged from 2.7% (2006) and 4.2% (2004) – the number of registered job seekers as at 31 December 2006 was 21,400. Since 1999, between 52 and 53% of all job seekers have been women. The rate of men’s economic activity since 1999 has ranged between 70-71%; women’s economic activity is lower (61.3% in 2004). Based on the working positions of working women, they are mainly employees. The percentage of women among sole traders is low, regardless of whether or not they have Operational Programme Prague – Adaptability 24 September 2007 28 employees. There is an extremely low number of women among legislators, executives and senior managers, and over the past two years this figure has even fallen slightly. The reconciliation of work and family lives remains at a low level. It is not a common practice for employers to offer parents on parental leave the possibility to continue at work even after maternal leave or to become involved in the working process during the parental leave (Gender Package 3/2005, Gender Studies, o.p.s.). Women with children of preschool age, elderly women and women after maternity leave are three of the five most frequently discriminated groups on the labour market (along with individuals with health disabilities and low education). Another contributing factor is the lack of available facilities for preschool children (only a quarter of children aged under 3 attend facilities of this type). In addition to legislative changes, statistical analysis and activists’ work, the enforcement of principles of equality of men and women on the labour market requires above all an awareness of the issues of equal opportunities among potential employers, public administration officials and policymakers. Training programmes predominantly for employment service workers will have to be developed. Flexible forms of work and the possibility of further education will have to be developed in order to reconcile family and work lives, especially for parents returning to the labour market. Key characteristics and trends à Heterogeneous structure of NGOs by field of activity à Minimum percentage of social economy entities in the region à High dependency of NGOs on grants from public funds à Lasting lower awareness of equal opportunities, higher unemployment of women and lower remuneration of women than that of men for the same work à Insufficient managerial skills and financial knowledge of NGO workers à Need to provide for a high-quality implementation of social care standards in practice à Low degree of economic activity among the disabled à Lack of timely social assistance for children and young people at risk of social exclusion à Poor cohesion of social care for young people leaving institutional facilities à Increasing need for residential social and health care for seniors à Lasting barriers to the official participation of immigrants on the labour market à Insufficient capacities of social assistance for people without shelter à Prague’s population is relatively socially cohesive 2.6 Lifelong Learning The current economic and social changes that are taking place throughout Europe require a new approach to education. The initial education from elementary schools to universities should constitute a gateway to the lifelong learning process for each individual. The 2000 Memorandum on Lifelong Learning talks about the necessity of teaching individuals to responsibly educate themselves, regardless of the stage of their life, place, time and form of learning. The Czech Republic supports this new concept of education and reflects it in its strategic documents. The 2003 Strategy for Human Resources Development for the Czech Republic discusses not only each person’s responsibility for amending his knowledge and skills throughout his life, but also emphasises the need to promote this concept and to stimulate individuals, teachers and managers in private, non-profit and public sectors. Operational Programme Prague – Adaptability 24 September 2007 29 The Czech Republic’s total public spending on education in relation to GDP is 0.8% lower compared to other EU countries. Table 29 Total public expenditure on education (in % of GDP) EU-25 CR 1995 5.17 4.62 1996 4.68 1997 5.03 4.43 1998 3.93 1999 4.77 4.05 2000 4.71 4.04 2001 5.02 4.16 2002 5.14 4.41 2003 5.21 4.55 Source: EUROSTAT The expenditures on education in Prague come, to a large extent, from public sources, in particular from the State budget through the Ministry of Education, Youth and Sport (approximately 80%); other funds are provided by school administrators (approximately 20%). Governmental institutions of university education (Police Academy of the Czech Republic and Defence University) are fully financed from State funds, and public institutions of university education also get most of their funding from the State budget. Teaching activities are financed in a normative manner, where the normative amount per student is derived from the financial demands of the accredited study programmes. The scientific activities of public institutions of university education are financed from the State budget, in particular through contract funding (research plans, grants). Other income of public institutions of university education comes from their asset management activities, the results of scientific, research, development and other creative activities, and also from several types of charges pursuant to S. 58 of Act No. 111/1998 Coll., on Higher Education and on Amendments and Additions to Other Acts (the Higher Education Act), as amended (admission proceedings, extended study time, study in a foreign language). 2.6.1 Participation in Education When broken down by the highest education achieved, the population structure in Prague is different to the average in the Czech Republic. Whereas Prague has a lower share in the categories with lower education (elementary education, no education and secondary education without a school-leaving certificate), it is above-average in the categories of secondary education with a school-leaving certificate and university education. The share of the population with university education in Prague is more than double that of the rest of the Czech Republic. Operational Programme Prague – Adaptability 24 September 2007 30 Share of total population Chart 30 Population by the highest education achieved 15+ in 2004 45,0% 40,1% 38,3% 40,0% 35,0% 30,9% 30,0% 24,7% 25,0% 22,1% 20,9% 20,0% 13,1% 15,0% 9,9% 10,0% 5,0% 0,0% Primary education and no education Secondary with no school-leaving certificate Secondary with school-leaving certificate Higher Highest education achieved Prague CR Source: CSO Between 1993 and 2004 the following trends were evident in the education structure of Prague’s population in the 15+ age category: an increase in population with university education (from 18% in 1993 to 22% in 2004) and secondary education with a school-leaving certificate (from 34% to 40%) and a fall in the share of the groups of secondary education without a school-leaving certificate and no education. Chart 31 Trends in education structure of Prague’s population Number of people aged 15+ (in thousands) 450,0 400,0 350,0 300,0 250,0 200,0 150,0 100,0 50,0 0,0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2001 2002 2003 2004 Year Primary education and no education Secondary without school-leaving certificate Secondary with school-leaving certificate Higher Source: CSO The education structure in Prague varies significantly depending on gender, as women have a higher degree of education at the levels of secondary with a school-leaving certificate, primary education and no education. Operational Programme Prague – Adaptability 24 September 2007 31 Table 32 Education structure of the 15+ population in 2004 Total 13.1% 24.7% 40.1% 22.1% Elementary education and no education Secondary without a school-leaving certificate Secondary with a school-leaving certificate Higher Men 10.4% 28.1% 35.0% 26.4% Women 15.5% 21.6% 44.6% 18.3% Source: CSO The City of Prague offers all types of schools. The following tables give statistical information on the number of such types of schools and the number of their pupils/students in the respective years. Table 33 Trends in the number of children, pupils and students at various levels of education Nursery schools Children Primary schools Total pupils Grammar schools Day-study pupils Secondary specialised schools Day-study pupils Vocational schools Total pupils Advanced specialised schools Day-study pupils Higher education – number of faculties 1990 1995 20002002 2004 2005 420 34,998 235 128,890 25 - 385 32,495 248 102,415 59 20,328 351 26,710 236 101,853 58 22,474 320 26,660 230 94,452 58 22,827 307 27,646 219 85,584 58 23,295 302 27,787 215 81,246 60 23,695 47 - 99 99 99 95 25,245 50 38,775 30,737 - 26,239 51 19,220 27,270 51 20,130 - - - - 35 34 36 36 - - 5,609 5,252 5,605 5,296 33 34 36 51 36 36 Source: CSO Table 34 Number of teachers in the individual types of schools in Prague Nursery schools Number of children per teacher Primary schools Number of pupils per teacher Grammar schools Number of students per teacher Secondary specialised schools Number of students per teacher Vocational schools Number of apprentices per teacher Advanced specialised schools Number of students per teacher 2000 2001 2002 2003 2004 2,193 12.2 6,591 15.5 2,109 10.8 3,106 10.2 1,721 11.0 622 11.3 2,207 12.0 6,568 15.0 2,177 10.6 3,093 10.3 1,814 11.0 607 11.1 2,209 12.1 6,398 14.8 2,205 10.6 3,222 10.1 1,804 11.2 607 11.3 2,314 11.8 6,193 14.4 2,240 10.6 3,314 10.2 1,759 11.4 625 11.7 2,228 12.4 5,936 14.4 2,260 10.5 3,426 10.0 1,801 10.9 662 10.6 Source: CSO Operational Programme Prague – Adaptability 24 September 2007 32 Education of individuals with special educational needs There were a total of 148 schools for pupils with special educational needs (e.g. children, pupils and students with a disability, health disadvantage or social disadvantage) at preschool, elementary school and secondary school levels in Prague in 2003. There were a total of 6,962 children and pupils in such schools in 2002/2003. In recent years the schools have been especially attended by children and pupils with more serious forms of disability, as pupils with a disability are increasingly more able to integrate into ordinary schools, either as pupils in special or specialised classes, or as pupils in ordinary classes. The key trend in special education is the removal of segregated education for children and pupils with special needs and their integration into ordinary education streams where equal access to education for all children is guaranteed. In Prague the share of individually integrated disabled pupils is 8% (the national average is 10 to 11%), another 2% are integrated as part of groups. The fact that in Prague there is a high concentration of schools for pupils and students with more serious types of disability and that these schools also cover large catchment areas should, however, be taken into consideration. One of the problems associated with the integration of such pupils is the unpreparedness of school teachers for work with disabled children and also the low number of specialised teachers in ordinary schools. It will therefore be necessary to develop programmes focused on the education of pupils with special educational needs in ordinary types of schools and also, in co-operation with institutions of university education, to develop special teaching courses for the further education of teaching staff in order to integrate and include children and pupils in society. The Department of Education of the Prague City Hall is currently drafting a concept for the education of children with specific developmental behavioural disorders. In addition to the above-mentioned pro-integration measures, the concept envisages, with respect to the target group of children with behavioural disorders, the establishment and development of comprehensive specialised facilities that would first work with children separately and then help their integration either back into elementary or secondary schools. Another problem that has not been settled satisfactorily is the search for and education of talented pupils and students. With regard to the differences in the quality and quantity of their talents, talented pupils need a combination of various forms of differentiation of preparation in the course of their schooling. This goes hand in hand with the need for qualified teachers to be sufficiently aware of the opportunities, forms and methods of educating such pupils. In this field it is also necessary to provide programmes focusing on educating talented pupils and on the further education of the teaching staff. 2.6.2 Education at Elementary, Secondary and Advanced Specialised Schools The demographic development, characterised by a dramatic fall in the age groups in the obligatory schooling age bracket, was and is marked by an equally dramatic fall in the number of pupils in Prague’s elementary schools, however, in recent year thanks to the growing birth rate the number of children in kindergartens has started to grow slowly, which will be reflected in a few years also in the elementary schooling. Operational Programme Prague – Adaptability 24 September 2007 33 Whereas in the school year 2002/2003 elementary education in Prague was provided to a total of 94,000 pupils by 230 elementary schools, in 2003/2004 there were 229 schools, attended by just under 90,000 pupils, in 2004/2005 there were a total of 219 elementary schools with approximately 85,000 pupils, and in 2005/2006 only 215 elementary schools with 21,000 pupils. The above-mentioned statistics also include schools for pupils with special educational needs. Over 70,000 students studied at secondary schools in the school year 2002/2003. The structure of specialisations in schools is well-balanced, primarily thanks to the concentration of people in the capital city. The share of grammar school education in the total volume of secondary education in Prague is the highest in the Czech Republic (24%), although the degree of satisfaction of the demand to study in Prague’s grammar schools is the lowest when compared to other regions. In comparison with the Czech Republic’s average, the range of study fields in secondary specialised schools in Prague marks a low share of general specialised education, an insufficient volume of educational opportunities in areas involving information and communication technologies, and an insufficient volume of educational opportunities in areas related to tourism and social services. In the field of vocational schools with a school-leaving certificate, Prague is at the level of the Czech average. Due to the different structure of the labour markets, the structure of specialisations in Prague differs from that of the rest of the country; there are less mechanical engineering, construction and agricultural specialisations, while the offering of specialisations in catering, tourism, sales and arts and crafts is larger. In the school year 2002/2003 there were 5,252 students studying at advanced specialised schools, about half of them at private and church schools. This year there were 34 advanced specialised schools in Prague. Advanced specialised schools substitute Bachelor’s degree courses, where there is an insufficient supply to meet the demand. The lower willingness of Prague’s higher-education institutions to offer Bachelor’s programmes means that Prague has the lowest proportion of students in Bachelor’s degree programmes in the Czech Republic (18%). The population’s interest in tertiary education is growing constantly. 2.6.3 Higher Education In the last ten years Prague’s institutions of higher institution have experienced an enormous increase in the number of students, but there is still an unsatisfied demand in areas such as law, medicine, humanities and the arts. Due to the transformation and significant changes in the structure of labour force, and also as a consequence of the country’s integration into the EU, a lot of new fields have emerged. In addition, many new private institutions of university education were founded. Operational Programme Prague – Adaptability 24 September 2007 34 Table 35 Numbers of students at institutions of university education in Prague in the school year 2004/2005 Charles University in Prague Czech Technical University in Prague Institute of Chemical Technology in Prague University of Economics in Prague Czech Agricultural University in Prague Academy of Performing Arts in Prague Academy of Fine Arts in Prague University of Applied Arts in Prague Private institutions of university education in Prague total Total Total 47,257 22,942 3,780 16,021 12,674 1,242 269 442 Of which: women 27,702 3,957 2,083 8,532 6,399 617 107 216 13,069 7,528 117,696 57,141 Source: CSO Institutions of university education in Prague account for 40% of all students in university education; this figure is even higher for private institutions – 68%. The development of the system of university education in Prague is closely linked to a qualified body of academic staff and the ability of the various institutions to react flexibly to Prague’s needs and the demand on the labour market, whilst making use of the latest research and development. The quality of the institutions is clearly interrelated with the quality of these specialists, and private institutions, primarily the new ones have a certain problem in this regard due to the unfavourable age structure and the lack of staff with teaching experience. Another problem is the permeability of tertiary education, i.e. the permeability between the various levels of university education, which can be dealt with using a modular structure of study programmes that would enable access to study at any age and at any level. Higher-education institutions should also concentrate on expanding the supply of further education. This will require the development of combined and distance forms of study, the establishment and introduction of teaching supports (multimedia educational aids), the use of e-learning, interactive teaching programmes and materials for such forms of study, the founding of common teaching laboratories, the introduction of project-based and problembased teaching methods and the development of advisory and information centres. All these projects will require co-operation among the higher-education sector and national and international partners, not only on the part of the higher-education community, but also on the part of the employers. 2.6.4 Further Education For a long time further education, one of the key factors for the growth of competitiveness in Prague (and throughout the Czech Republic), has struggled with the lack of general legislation on further education, in particular with a lack of recognition of the results of non-formal and informal education. Act No. 179/2006 Coll., on Verification and Recognition of Further Education Results and on the Amendment to Some Other Acts (the Professional Qualifications Recognition Act), as amended (effective from 1 August 2007), which proposes a national system of qualifications to describe partial and complete qualifications, was Operational Programme Prague – Adaptability 24 September 2007 35 adopted in 2006. The national system of qualifications was created as a part of the “National System of Qualifications Development” project of the Ministry of Education, Youth and Sport in the programming period 2004-2006, which was co-financed under the ESF. Further, in addition to Act No. 18/2004 Coll., on Recognition of Professional Qualifications and Other Skills of EU Nationals, there are acts that set out, to various extents, the options of further education for various professions (e.g. for teaching staff, for healthcare staff, etc.). Act No. 179/2006 Coll., which was originally intended to comprehensively deal with the whole area of further education, was unfortunately narrowed down to only include qualifications. There are still, for example, limitations related to motivational tools for employees and employers to support an increasing interest in lifelong learning. The range of further education is relatively broad, but not transparent for those interested in it. In Prague, in contrast to the total average for the Czech Republic, it is possible to attend a large number of courses offered not only by companies and NGOs, but also by certain educational institutions (in particular in university education). Prague schools (at all levels) have the capacity and infrastructure for further education. Potentially they are therefore significant contributors to the development of further education. Further education in schools should be complemented by education in business and NGOs, while corporate education should play an essential role, too. Unfortunately, there are no accurate statistics on further education (in the Czech Republic or in Prague). According to EUROSTAT, 5.4% of the population (aged 25-64) was involved in further education in the Czech Republic in 2003. In accordance with the Lisbon Strategy the Czech Republic’s aim is to increase this share to at least 12.5% by 2010. In 2003, the CSO performed a research of formal, non-formal and informal education. The research showed that the largest percentage of those in non-formal further education was in Prague (157% of the national average). Table 36 Number of people in non-formal education in 2003 Yes Absolute terms Czech Republic Prague Men CZ Prague Women CZ Prague As a % No Absolute terms Not ascertained Absolute terms 348.1 4.0 8,205.1 71.3 64.3 6.3 944.6 4.2 156.2 26.3 3.8 5.5 3,951.6 446.6 49.0 3.3 191.9 37.9 4.3 7.1 4,253.5 498.0 22.3 1.0 Source: CSO The research showed that non-formal education was most popular with people with average or higher degrees of education, which paradoxically deepened the differences within the population. In this context it is important to motivate people with a lower degree of education and support their efforts to continue their education. It will be necessary to involve not only employees, but also employers, in further education. Only about one quarter of Czech businesses regard education as a priority in their HR policies and the development of human resources as part of their development strategy. On average, the spending by Czech companies and other organisations on educating their employees are less than half of those by Operational Programme Prague – Adaptability 24 September 2007 36 EU-15 businesses. Only one in twenty job seekers attends re-qualification courses. The dominant areas of further education include humanities, business and administration, information technology, security services, foreign languages, use of computers, etc. Since the effective date of Act No. 435/2004 Coll., on Employment, as amended, the re-qualification education has been extended to include those interested in employment and the possibility of purchasing advisory services. Labour offices focus on re-qualification based on the monitoring of the labour market and the employers’ requirements to increase employability and professional mobility. Re-qualification activities are otherwise targeted at non-specific re-qualification, supplementary re-qualification, internships and employee re-qualification. Table 37 Re-qualification in 2001-2006 Indicator 2001 2002 2003 2004 2005 2006 Re-qualification of job seekers 968 1,189 1,173 1,497 Number of job seekers involved in 521 570 re-qualification Of which: women 332 389 632 771 734 961 School graduates and youth 35 51 84 91 50 55 Disabled 55 36 86 110 115 139 Completed re-qualification total 460 514 875 1,080 1,114 1,354 Of which: successfully 438 483 822 999 1,027 1,246 Number of job seekers placed after 190 281 371 582 613 531 re-qualification Re-qualification of persons interested in employment (from 1 October 2004) Number of interested persons placed in 2 9 6 re-qualification Re-qualification of employees Number of employers 0 0 0 0 0 0 Source: Labour Office of the City of Prague The range of further education on offer can be enlarged by a co-operation among employers, educational institutions and specialised professional institutions. It is necessary to arrange for the participation of experts with teaching experience and to ensure student and teacher mobility through practical internships in companies. Another method is to build education and training centres for the purposes of further education of persons without qualifications or with qualifications not useful on the labour market. An adequate level of support services is necessary for further education (in particular information, analytical, advisory and diagnostic systems). Currently, the Czech Republic does not have an umbrella system providing data about the supply and the demand for further education that would make the situation more transparent. There is a fragmented offering of partial information systems in the individual sectors. It is necessary to establish a system of co-operation between the providers of further professional education and to promote innovation activities and the professional training of lecturers, consultants, teachers, methodologists and managers in further professional education. 2.6.5 Modernisation of the City’s Public Administration The execution of public administration in both the Czech Republic and Prague has to be made systematically more efficient. In accordance with the trends in the execution of administration Operational Programme Prague – Adaptability 24 September 2007 37 in the EU, Prague’s public administration will change from managerial and autocratic into one that primarily serves and individualises its services and is able, whilst performing its functions, to co-operate with its partner institutions. One of the means of modernisation is also the ever-increasing involvement of information technology in the execution of administration (e-government). Along with the development of new electronic services (frontoffice), it is also necessary to change back-office processes and the way the authorities work. There will be new demands on education and qualifications. A reform of the local public administration was prepared and implemented between 1998 and 2002. In the first stage of the local public administration reform, regions were established as higher regional self-governing units (as at 1 January 2001), and in the second stage district offices were closed down (as at 31 December 2002) and their powers were transferred to municipalities and regions. The current efforts are focused on modernising public administration, both at the level of territorial public administration and at the level of central State administration. Most attention is paid to increasing the efficiency and transparency of public administration, increasing the quality and availability of public services, introducing modern management methods, including the utilisation of modern information and communication technologies, increasing the transparency of public administration, etc. At the level of the Prague region, one of the key topics is developing the effectiveness and interoperability of public administration (within the city and with State administration), as well as the preparation and offer of e-services and information about the city. In 2005, Prague adopted the concept document Information Strategy of the City of Prague until 2010, “The Path to e-Prague”, which is based on the EU’s documents, for example the initiative of i2010 European Information Society for Growth and Employment (the follow-up of eEurope 2005), and documents drafted at the national level – the State Information and Communications Policy until 2006 – “eCzech Republic”. Prague is also one of the initiators of the LORIS declaration – Local and Regional Information Society Development (2004) – and a signatory of the EUROCITIES Charter of Rights of Citizens in the Knowledge Society (2005). In Prague, in comparison with the Czech Republic, there is a high degree of computer infrastructure development, Internet penetration and computer literacy, which creates good conditions for the further development of an information society and e-government. The city operates a city-wide high-speed computer network called MepNet, which interconnects more than 50 municipal entities. It enables an efficient work and co-operation between all of the interconnected internal users (civil servants and elected representatives) and provides Internet access. There is a large amount of computers at the Prague City Hall and in the various borough offices and other municipal entities. Virtually all professionals and elected representatives have access to computer equipment and use it for their work. Most entities provide basic information on their activities over the Internet. Nevertheless, some weaknesses were identified in the further effective use of information and communication technologies for the modernisation of the city’s administration: (1) information systems of Prague’s entities are not interoperable, i.e. they cannot transfer and use information in a uniform and effective way; (2) there is no set of policies, standards and directives that would define the mode of co-operation in the field of IT; (3) there are no suitable institutional tools, organisational structures and stipulated processes for managing information technology throughout Prague effectively, for enforcing and meeting the stipulated targets at the city level; (4) the level of computer literacy of civil servants, elected Operational Programme Prague – Adaptability 24 September 2007 38 representatives and users does not enable sufficiently efficient work with the new information systems and the use of e-services. The modernisation of administration will be boosted by activities developed on the principles of co-operation and participation: experience sharing (best/good practices), benchmarking in e-Government, support for the development of knowledge of modern strategic and project management methods using ICT support. Likewise, this involves the development of transparency in administration, the participation of citizens in public administration and community solidarity with the use of ICT and, last but not least, the facilitation of availability of administration to the disadvantaged with the help of ICT (blind-friendly web, etc.). As far as strengthening the involvement of ICT in public administration is concerned, Prague has a better position than other regions in the Czech Republic. The Information Needs Analysis (Prague) performed by STEM / Mark in 2005 showed that 74% of Prague’s population were using the Internet and e-mail (compared to an average of 52% in the Czech Republic), and a large majority of them were using it daily or almost daily (66%). Prague came first, ahead of all the other regions, in the use of electronic communication with the authorities, where the research confirmed that it was used by 42% of Prague’s population (the nearest highest percentage was in the Olomouc region, where it was used by 30% of the population). The systematic education of employees in administration is fundamentally important for the development of e-government. Education brings an increase in the quality and productivity of labour, helps retain motivated and high-performing employees in administration, etc. The HR Department of the Chief Executive’s Office of the Prague City Hall is responsible for the education of Prague’s city employees at the Prague City Hall and employees in other borough offices. The Department has drafted a needs analysis and an education concept. It has experience in providing highly qualified trainers who often help create legislation applied during the execution of administration. The City of Prague currently has approximately 1,800 employees at the Prague City Hall and another approximately 5,000 persons employed in the city boroughs. The employees of the City of Prague can be broken down by the highest education achieved as follows: two fifths of them are university graduates, half of them have completed secondary education. From the viewpoint of age structure, the largest group is 50-59 (39%), followed by 40-49 (22%) and 30-39 (16%). When dealing with further education, the city boroughs and organisations often encounter low motivation among some employees to improve their education (there is no financial appreciation and few opportunities for career growth), little use of analyses in modernisation activities and relatively little use of information technology in the organisation of education and in education itself. The basic aims of modernising Prague’s regional and local administration are: to strengthen the complementarity of formal, non-formal and informal teaching, to assemble and maintain high-quality teaching staff, to strengthen networking within the city and at the selfgovernment level in the Czech Republic and internationally, and to increase the use of feedback. The priority areas of education are, in addition to professional education, also presentation, communication and psychosocial knowledge; information literacy is also very important. So far, only minimum use has been made of the modern methods of coaching, Operational Programme Prague – Adaptability 24 September 2007 39 mentoring, counselling, assisting and work rotation. The introduction of a high-quality management system for administration in the City of Prague, which is expected to take place soon, will be a fundamental innovation. Another way how to achieve higher efficiency in administration is to develop co-operation with university education and other relevant institutions. Activities related to modernisation of public administration of the City of Prague will be supported within the relevant multi-objective priority axes of the Integrated Operational Programme and the Operational Programme Human Resources and Employment. Key characteristics and trends à Above-average education of Prague’s population compared to the rest of the Czech Republic, lower compared to the EU-15 capitals à Need to adapt the structure of the education offering to the falling number of children à Increase in the number of students at secondary specialised schools, grammar schools and in university education à Decline in elementary school pupils à Insufficient integration of pupils and students with special educational needs, in particular due to lack of specially qualified teaching staff à Below-average offering of Bachelor’s degree studies in university education in Prague à Public institutions of higher institutions are mostly financed from the State budget, there is a shortage of supplementary sources à Potential for using the school infrastructure in Prague to develop further education à Absence of a concept for further education, little motivation for people and employers for further education à Demand for tertiary education is not sufficiently satisfied à Opportunities to strengthen the use of e-government in Prague à Need to systematise the further education of employees in public administration and to make it more effective. 2.7 Business Environment According to information contained in the Register of Business Entities, as at 31 March 2005 there were a total of 418,000 business entities in Prague, 18% of the total for the Czech Republic (2,352,601). The tertiary industries generate more than 80% of the total added value in Prague (83.8% in 2003). The share of the production industries in the total added value and employment in Prague is significantly lower than the national average. Operational Programme Prague – Adaptability 24 September 2007 40 Chart 38 Number of registered business entities Number of Registered Business Entities Number of registered business entities 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 2000 2001 2002 year Czech Republic 2003 2004 Prague Source: Prague Statistics Yearbook In addition to retail, the industries with the greatest dynamism in the 1990s also included tourism, which became a significant cornerstone for the city’s economic development. The importance of congress and incentive tourism is rising. There was an extraordinary capacity growth in finance. There are significant developments in the tertiary sector in telecommunications and B2B services – consultancy, IT, real estate, advertising, marketing and others. In terms of the individual economic sectors, the situation in Prague corresponds to sector employment. The most dynamically growing sectors are activities focused on real estate and rentals (in the 1990s there was a 22% increase in the number of these entities), followed by education and health care (increase by 20%), and transport and telecommunications (increase by 13%). A fall of almost 54% was reported in public administration and defence. Table 39 Registered operators in Prague by sector as at 31 December Agriculture Engineering Construction Retail Transport and communications Financial brokering Real estate services Public administration and defence Education and health care Others 2000 2,489 32,510 35,598 130,082 2001 2,598 32,842 36,034 129,363 2002 2,299 33,499 36,634 130,336 2003 2,510 34,482 37,968 132,636 2004 2,687 34,547 38,454 131,426 15,867 16,881 17,197 18,168 17,975 9,412 110,337 9,208 115,405 9,151 121,859 9,109 130,075 9,047 134,905 469 275 322 369 215 10,522 29,466 11,004 30,712 11,388 32,017 12,237 34,058 12,593 35,274 Source: CSO, Register of Business Entities Operational Programme Prague – Adaptability 24 September 2007 41 The vast majority of business entities are individuals. Their number had been growing steadily in the beginning of the millennium until 2003 and 2004 when their number dropped. The drop between 2003 and 2004 can be perceived, among other factors, as a reaction to the changes in the Trade Licensing Act which made the terms and conditions for doing trade stricter. In 2005, however, there was again a very small increase in the number of registered individuals by 0.26% when compared to 2004. Between 2000 and 2005, the most significant increase was shown by trading companies. Owing to this significant increase in the number of trading companies, the share of this group of entities in the total number increased, too. In 2005, the trading companies accounted for over one fifth of all business entities seated in Prague. In terms of legal forms, other groups’ share in the total number of business entities seated in Prague is significantly smaller. It is worth mentioning that the number of representations of foreign entities has gone up since 2000, particularly in the past two years. The fall in the number of state-owned enterprises is correlated with the development of a decentralised economy. Table 40 Registered operators in Prague by legal form as at 31 December Total legal entities Of which: State enterprises Of which: trading companies Of which: joint stock companies Of which: cooperatives Of which: other legal entities Total individuals Of which: sole traders Of which: farmers Of which: free trades 2000 2001 2002 2003 2004 2005 105,243 109,230 112,596 121,479 128,779 137,049 276 267 252 229 211 202 68,577 72,464 74,850 79,762 84,717 89,820 5,170 5,507 5,732 6,041 6,386 - 4,487 4,658 4,945 5,303 5,372 5,494 31,903 31,841 32,549 36,185 38,479 - 271,509 275,092 282,106 290,133 288,344 289,116 253,922 257,204 264,067 271,661 269,424 269,764 1,231 1,270 1,260 1,301 1,347 1,419 16,356 16,618 16,779 17,171 17,573 17,933 Source: CSO, Register of Business Entities The number of sole traders in Prague reached 269,764 in 2005. In comparison with the second half of the 1990s, when there was a high increase, in particular in retail, their number is currently stagnating. 2.7.1 Small and Medium-sized Enterprises The vast majority of business entities in Prague are individuals – persons involved in independent gainful activity without their own employees (86%). Small sole traders account for 95% of the companies with employees in Prague, while medium enterprises account for 3%. This means that small and medium-sized enterprises are of a fundamental importance for Prague’s economy. Operational Programme Prague – Adaptability 24 September 2007 42 Table 41 Registered operators in Prague by size (as at 31 December) No employees 1-5 employees 6-19 employees 20-24 employees 25-49 employees 50-99 employees 100-249 employees 250-499 employees 500 and more employees 2000 320,576 38,605 11,703 1,153 2,243 1,307 708 247 210 2001 330,474 36,574 11,539 1,045 2,195 1,328 718 243 206 2002 343,458 34,417 10,970 1,172 2,251 1,280 716 241 197 2003 356,769 37,567 11,344 1,257 2,268 1,284 687 238 198 2004 362,002 37,650 11,346 1,262 2,279 1,363 758 254 209 Source: CSO, Register of Business Entities One of the characteristics of small and medium-sized enterprises is a certain degree of undercapitalisation, because the enterprises spend money primarily on operations. In addition, the education of employees in such enterprises is hindered by their greater workload. This results in a lower managerial erudition of their employees. 2.7.2 Tourism Tourism is an important sector of Prague’s economy and its performance in the last few years has made it one of the most dynamic sectors. Tourism accounts for 3.6% of the total output of Prague’s economy (in terms of gross added value) and for more than half of the national revenues in catering and accommodation (over CZK 33bn). The catering and accommodation sector accounts for a total of just under 5% of Prague’s employment. In the long term it employs around 30,000 people, although it is subject to marked seasonal fluctuations. Based on the 2001 census, additional 7,000 people commute to Prague to work in this sector. The share of women is between 43 and 49%, which corresponds to the share of women in Prague’s total employment. When the related segments are included (e.g. travel agencies, guides, information centres, transport services, cultural facilities and sales networks), the number of employees whose activities are related to tourism is as high as 15% of all jobs in Prague. The average salary in catering and accommodation (CZK 13,597) in 2004 constituted only 73% of the average salary (CZK 18,582), which is caused both by the high share of unskilled work and by the sector’s low prestige. In 2000-2004 the number of mass accommodation facilities rose from 502 to 598 and the number of hotels and similar accommodation facilities rose from 390 to 480. In the period in question the number of four- and five-star hotels more than doubled (from 53 and 114), while the number of beds they offered accounted for 46% of the capacity. The structure of accommodation facilities is comparable to other European capitals and Prague is a soughtafter destination for foreign guests travelling for both business reasons and leisure. Operational Programme Prague – Adaptability 24 September 2007 43 Table 42 Tourism trends in Prague in 1990-2005 Beds in accommodation facilities Guests in accommodation facilities Of which: foreigners 1990 2000 2002 2004 2005 - 68,379 71,160 68,913 66,351 1,685,720 2,619,816 2,534,421 3,863,969 4,108,565 - 2,319,294 2,231,760 3,470,279 3,725,180 Source: CSO The number of foreign visitors is an important indicator. The number of guests in Prague’s accommodation facilities reached a record-high 3.8m people in 2004 and 4.1m people in 2005 (of which almost 90% were foreigners). Prague accounts for 57% of foreign visitors to the Czech Republic, which demonstrates the marked concentration of tourism activities in Prague. The average length of stay in 2002-2004 was 2.8 days, whereas the average duration of a stay by a foreign tourist was 3.8 days, which are both values under the national average, although they correspond to the trends in other European cities. On the contrary, the occupancy of rooms in accommodation facilities is above the national and European average (it was 61.2% in 2004). The most numerous group of visitors to Prague in 2004 comprised citizens of Great Britain (17.1%); visitors from Germany were dominant before that, but came second in 2004 (14.7%), followed by Italians (8.9%) and US citizens (6.8%). Table 43 Performance of mass accommodation facilities in Prague and the Czech Republic in 2005 Guests Average number of nights* Average length of stay (days)* Total Of which: foreigners Total Of which: foreigners Total Of which: foreigners Net utilisation of beds (%) Utilisation of rooms (%)* Czech Republic 12,361,739 6,336,128 Prague 4,108,565 3,725,180 3.3 3.1 2.8 2.8 4.3 4.1 3.8 3.8 35.8 44.1 53.4 61.2 Source: Prague Statistics Yearbook Note: * Data of 2004 The results of surveys conducted among foreign tourists in 1997, 2001 and 2004 show that the foreigners in Prague evaluate their stays positively and are increasingly more satisfied. The city’s good reputation is based not only on its remarkable architecture and specific atmosphere, but also on its “service” areas, such as the standard of catering and mass transport. It is positive that visitors to Prague feel safe, praise the city’s cultural life and are not disappointed about the prices. 98% of all foreign tourists wanted to return and 99% would recommend Prague to their friends. Operational Programme Prague – Adaptability 24 September 2007 44 Graph 44 Average evaluation of aspects of the city – trends over time Architecture Atmosphere Cultural life Public transport Prices Monument care City cleanliness Feeling of safety Standard of restaurants Quality of cuisine Information service Contact with locals Taxi service 0 0,5 1 1,5 2004 2 2,5 3 3,5 2001 4 4,5 5 1997 Source: Prague Information Service Note: The average values on a scale from 1 (excellent) to 5 (very bad) are displayed 2.7.3 Research, Development and Innovation Prague contains approximately two thirds of all public research and development institutions and one third of the capacity of private research and development. Therefore, it meets the basic requirements for increasing the competitiveness of Prague’s economy in conjunction with the use of research and development results, primarily by developing Prague’s innovation potential and improving co-operation between science and research facilities, education institutions and the business community. Due to the location of research and development institutions’ headquarters, 37.9% of the government spending in 2004 were directed to Prague (37.5% in 2005). In line with the Lisbon Strategy, the Czech Republic wants to spend at least 1% of its GDP on R&D in terms of public expenditure and at least 3% of its GDP in total by 2010. This parameter (share of the total R&D expenditure in the GDP) reached 1.28% in the Czech Republic in 2004 (1.26% in 2003), whereas it was 1.98% in the EU-15 and 1.92% in the EU-25 in 2003. Table 45 Spending on research and development (in CZK million) Czech Republic Prague Share 2001 28,337 10,120 35.7% 2002 29,552 10,190 34.5% 2003 32,247 11,854 36.8% 2004 35,083 13,300 37.9% 2005 42,198 15,835 37.5% Source: CSO Operational Programme Prague – Adaptability 24 September 2007 45 Table 46 R&D employees as at 31 December (individuals) Czech Republic Prague Share 2001 51,939 21,122 40.7% 2002 53,695 21,567 40.2% 2003 55,699 22,313 40.1% 2004 60,148 24,158 40.2% Source: CSO Prague is the seat of 40 offices of the Academy of Sciences of the Czech Republic (AS CR) and 50 research institutes, as well as several universities. There are also professional organisations engaged in research and development, innovations and technology transfer (Association of Innovation Business, Association of Research Organisations, etc.), scientific and technological parks, technology transfer centres, BIC and networks of regional advisory and information centres (RAIC), economic chambers and other business and research entities. Co-operation between these entities, however, is not sufficiently developed. The use of the region’s research, development and innovation potential is inhibited by the unsuitable structure of R&D support from the public budgets, the insufficient development of R&D capacities (including human capital), the lack of a technology or innovation agency, the low motivation for research and development organisations to co-operate with the business sector and the differences in the organisation, style of work, financing and management of research and development organisations and the business community. Most R&D institutions do not have special departments dealing with the co-operation with businesses. The technology transfer system and its institutional framework are insufficient. The low degree of patent filing activities is caused by low motivation of research workers, whose work is assessed in terms of publication criteria, not criteria of utilisation of the research results. There has been a visible attempt to make co-operation between university education and the AS CR more intensive in recent years, but it is currently only successful in the training of new professionals/PhD students. Co-operation in other sectors is prevented due to the setup of the labour law environment, which makes the exchange of employees difficult. The same problems exist for transfers of employees between universities, the AS CR and industrial plants. There is some innovation infrastructure and consultancy in Prague. However, decisive are entities such as scientific and technology parks, business incubators and institutions supporting technology transfer. There are two scientific and technology parks in Prague (TIC CTU and Aeronautical Research and Test Institute). The protection of intellectual property is an area that sufficient attention is not paid to by R&D institutions or SMEs. Clustering of companies is not currently a standard practice in Prague yet. The uncertainty of the business environment is reflected in the low degree of co-operation between SMEs and their limited communication with large companies and R&D institutions. There is currently no environment for the development of spin-off companies, increasing business skills in academic bodies and in university education, etc. Operational Programme Prague – Adaptability 24 September 2007 46 Key characteristics and trends à Just under a fifth of all business entities in the Czech Republic are seated in Prague à 80% of Prague’s economy is constituted by services à Tourism and trade are markedly dynamic à Strong share of small and medium enterprises in the economy, but they invest most of their spending into operations, not education and innovation à High concentration of research and development institutions à Lack of co-operation between research institutions, institutions of university education and businesses 2.8 Experience from the Previous Programming Period 2.8.1 Single Programming Document for Objective 3 The experience gained through the implementation of the Single Programming Document for Objective 3 of the NUTS 2 Prague region (SPD 3) is particularly relevant for OPPA. This programme, which applies to the whole City of Prague, is by 50% financed from the ESF. The total financial allocation for SPD 3 is EUR 117.59m, and the average annual allocation is EUR 39.2m. The average annual allocation to OPPA is therefore less than half of that for SPD 3 (EUR 18.2m). The global objective of SPD 3 is an effective labour market based on skilled labour force, competitive employers, use of the region’s research and development potential, social integration of risk groups and equal opportunities, whilst respecting the principles of sustainable development. This global objective will be reflected in four specific objectives corresponding to the programme priorities, which are further specified in detail in the form of 11 measures (2 measures involve technical assistance). With reference to the Evaluation of Progress Achieved in the Implementation of SPD 3 analysis, drafted by Elbona and Akses in March 2005, it can be stated that the strengthening of the active employment policy proved to be the weakest link in SPD 3 intervention, as the programme’s targeting insufficiently reflects the specific features of Prague’s labour market. OPPA draws on these conclusions; it does not contain any intervention in the general employment policy, but rather focuses on measures in favour of persons disadvantaged on the labour market and on the reinforcement of lifelong learning. In addition to measure 1.1 of SPD 3 focused on an active employment policy, the other SPD 3 measures were, based on the above-mentioned analysis, regarded as having performed well, i.e. they had a sufficient absorption capacity and helped the supported projects achieve the set aims. The OPPA therefore draws on SPD 3 in many respects, i.e. in particular: support for the adaptability of employers and employees, support for the integration of the disadvantaged on the labour market, support for lifelong learning, etc. Priority axis 3 of OPPA directly draws on measure 3.1 of SPD 3 (Development of initial education as the basis for lifelong learning and in terms of the needs of the labour market and the knowledge-based economy), priority axis 2 of OPPA draws on all three measures of priority 2 of SPD 3 (Social integration and equal opportunities), priority axis 1 takes over many of the activities supported under priority 4 of SPD 3 (Adaptability and enterprise). Operational Programme Prague – Adaptability 24 September 2007 47 The SPD 3 Managing Authority is the Ministry of Labour and Social Affairs, and the City of Prague performs the function of an intermediate body for 4 of the 11 measures the programme has. In financial terms, the City of Prague is responsible for measures accounting for approximately 55% of the SPD 3 allocation. From the viewpoint of the implementation setup, the SPD 3 encountered the following main shortcomings: − Complicated implementation structure (3 intermediate bodies); − Unpreparedness of an implementation structure for the utilisation programme (the first calls for submitting applications were announced as late as October 2004); − Complicated integrated information system – SFMS, which is not automated in all segments, i.e. there are a lot of duplicities with other information systems and it is not set up to always provide up-to-date data; − Poor degree of coordination of the application of some rules, e.g. the method of demonstrating the eligible costs within the implementation structure; − Lack of integrated and transparent setting of indicators which makes it hard to aggregate them at a higher level and also complicates the understanding of indicators by the applicants; − Complicated system of setting the rules between the providers of support and the beneficiaries resulting from rules based on the Czech legislation and the internal by-laws of the entities themselves; − Establishment of a Managing Authority at the level of the MoLSA insufficiently reflected the specific features of the self-government of the City of Prague; − Bureaucratic demands of submitting an application and, in particular, a payment application; − In some cases a low standard of project management knowledge on the part of the applicants, related to an insufficient link to the strategic documents and the needs of the target groups. Most of the ascertained shortcomings resulting from the Evaluation of Progress Achieved in the Implementation of SPD 3, dated March 2005, have been eliminated in OPPA. The preparedness of the City of Prague and the potential applicants is therefore higher thanks to the experience with SPD 3. The programme will be implemented by the City of Prague as the Managing Authority, and no intermediate bodies will be involved. The simplified implementation structure will also ensure an easy exchange and aggregation of information and a uniform application of all the relevant rules. The City of Prague, as the Managing Authority for OPPA and OPPC, plans to introduce a “one door” approach for applicants for both operational programmes for the EU Regional Competitiveness and Employment Objective, as well as for all stages of the project cycle. The City of Prague will strengthen the ability of applicants to draft high-quality projects through counselling and publicity, as well as other information activities. The City of Prague has already performed these activities, so when implementing OPPA it will be able to make use of its experience. The above-mentioned analysis includes the results of a questionnaire research among applicants for support under the SPD 3. More than half of the respondents (211 respondents in total) said that the Prague City Hall was the main source of support and expert guidance; they also gave it higher marks for the quality of the support it provided than those they gave to other institutions. The issues of setting the indicators for 2007-2013 will be significantly more coordinated with the Ministry for Regional Development, as will be the issue of an information system, which will be set with regard to the shortcomings in the SFMS currently in use. Operational Programme Prague – Adaptability 24 September 2007 48 2.8.2 EQUAL Community Initiative In the shortened programming period 2004-2006, the Czech Republic implemented also projects aimed at pursuing the principles of partnership, international co-operation, joint decision-making, innovation, mainstreaming, gender mainstreaming and topical approach. Until today, all of the above principles could be pursued in a comprehensive way only within the EQUAL Community Initiative. In the new programming period 2007-2013, based on the experience gained from the implementation of EQUAL, the EU Member States and the European Commission decided to incorporate the principles typical for the initiative to all programmes supported from the ESF. In the shortened programming period 2004-2006, the National Mainstreaming Strategy of the EQUAL initiative left the responsibility for pursuing the mainstreaming principle primarily with final beneficiaries. However, experience with the implementation of EQUAL shows that the beneficiaries focused on dissemination activities rather than on the mainstreaming of their outputs, experience and knowledge. Therefore, among other activities, the OP HRE supports development of networks of key institutions and partners dealing with HR development issues in the Czech Republic. At the same time, the implemented projects of this type will have enormous potential to enhance the mainstreaming process in the HR area as such. Due to the fact that the supported activities form part of the OP HRE multi-objective priority axes, it will be possible to implement them also in the City of Prague. In order to make the mainstreaming successful, based on the existing experience, it is necessary to provide for the participation of competent partners in the networks and, in the case of innovation mainstreaming, to introduce a validation methodology to verify the quality of innovation, and to involve key stakeholders in the innovation development. The principles of innovation and mainstreaming shall receive methodological support due to a general lack of awareness concerning the principles. Key characteristics and trends à OPPA builds on the experience in implementing SPD 3 à OPPA replaces the complicated SPD 3 implementation structure, OPPA’s agenda will only be administered by the City of Prague, as the Managing Authority without intermediate bodies à Thanks to the greatly simplified implementation structure, OPPA will have simplified monitoring and the implementation rules will be applied uniformly à Active employment policy measures that proved to be ineffective in Prague are not included in OPPA à Initial education, which proved to be the best performing measure in SPD 3, is a separate priority axis in the OPPA à The City of Prague’s preparedness to implement OPPA is high thanks to its experience administering more than one half of the SPD 3 allocation; the quality of the implementation of part of SPD 3 for which the City of Prague was responsible was appreciated by the applicants à With regard to a reduction in the OPPA allocation compared to SPD 3, a sufficient absorption capacity for the region is guaranteed Operational Programme Prague – Adaptability 24 September 2007 49 2.9 SWOT Analysis The SWOT analysis is a basic pillar of the OPPA strategy. It is a summary of the results of analysing the qualitative and quantitative characteristics of the programme environment. 2.9.1 Strengths Labour market à Low rate of unemployment à Highly qualified labour force à Strong tertiary sector with growth industries, in particular tourism and trade à Higher average salary compared to other regions of the Czech Republic Economic environment à Existence of a relatively strong SME sector à Increase in the number of scientific and professional workers in recent years à Traditional tourist centre of a European and global importance with a dynamic growth à High concentration of research and development institutions Social integration à Relatively strong social stability à High concentration of NGOs in the social sector à Open environment of the city accepting impulses from various cultures and directions à High degree of economic activity among women in comparison with the EU-15 à Varied structure of NGOs by field of activity Lifelong learning à Wide-ranging network of schools and training facilities with an appropriate capacity useable for further education à Large number of institutions of university education offering a wide range of subjects à Increase in the number of students in secondary schools, grammar schools and in university education à Existence of strategy to make use of ICT to modernise city administration 2.9.2 Weaknesses Labour market à Trend towards the lengthening of the average time of unemployment à Lack of job opportunities for the disabled à Lasting lower awareness of equal opportunities, higher unemployment of women and lower remuneration of women than men for the same work Economic environment à Insufficient co-operation between research institutions, universities and businesses à Insufficient language and communications skills of workers à Information and communication barriers between the various scientific fields and between workers in scientific and business entities à Low capacity of SMEs to invest in their long-term growth Operational Programme Prague – Adaptability 24 September 2007 50 Social integration à Existence of locations with a higher concentration of socio-pathological phenomena, including crime, drugs and prostitution à Insufficient managerial and financial knowledge of NGO workers à Low degree of participation in economic activities by the disabled à Lack of timely social assistance for children and young people at risk of social exclusion à Lasting barriers to legal participation of immigrants on the labour market à Low level of utilisation of part-time employment relationships à Minimum share of social economy entities in the region à Low degree of co-operation between public administration and NGOs Lifelong learning à Insufficient link between the educational system, the content of education and the needs of the labour market à Lack of a comprehensive system of further education à Low permeability of the educational system à Insufficient education of teachers in modern technologies and in using modern teaching methods à Insufficient offering of tertiary education à Low willingness of employers and low motivation of employees for further education à Insufficient use of modern education methods in the system of further education for the city’s public administration employees à Insufficient integration of pupils and students with special educational needs, in particular due to a lack of specialised, qualified teaching staff à Below-average range of Bachelor’s degree study programmes in university education in Prague compared to other regions in the Czech Republic 2.9.3 Opportunities Labour market à Expansion of employment to delivery of social services à Attractiveness of Prague’s labour market for immigrants à Development of information and communication technologies Economic environment à Improvement in the business environment for SMEs à Greater use of new forms of work organisation à Further development of tourism in the city and the surrounding area à More intensive link between research and development and the business sector Social integration à Developing social services as an opportunity to expand the participation of risk groups on the labour market à Maintaining relative social cohesion à Rising public awareness about equal opportunities à Developing community planning and social service quality standards à Making use of the social economy’s potential to increase the employability of disadvantaged persons Operational Programme Prague – Adaptability 24 September 2007 51 à Introducing market principles (demand-supply) to the financing system for social services Lifelong learning à Making further education more effective and increasing the motivation of employees and employers for further education à Improving the systematic verification of the quality of educational programmes and the certification of results à Use of schools as multifunctional centres of education for the further education of the population à Optimising the network of schools in Prague and the neighbouring region à Expanding access to education and activation possibilities for citizens with special educational needs à Developing e-government in Prague 2.9.4 Threats Labour market à Ineffectiveness of measures for long-term unemployed and disadvantaged persons à Barriers to the official work of foreigners à Ineffectiveness of sanctions against employers who do not meet the mandatory quota for employing disabled persons à Lack of specific highly skilled workers on the Prague labour market Economic environment à Insufficient interest of employers in supporting the introduction and development of further education and employees participating in further education à Departure of qualified workers, in particular from university education and research institutions, abroad à Competition from other regions in the Czech Republic in the development of sectors with high added value à Increased competition by other European cities Social integration à Rising proportion of people at post-productive age in the region’s population – aging population à Risk of social degradation of Prague’s housing estates à Disproportion between the aging population and the capacity of social and healthcare services à Insufficient professionalisation of NGOs due to the instability in their financing Lifelong learning à Low ability of the educational system to adapt to the changing needs of the labour market à Insufficient motivation for teachers to get involved in development programmes, to change their teaching habits and to increase their qualifications à Lasting lack of controls of the quality of further education à Insufficient co-operation between the key actors on the labour market à Absence of legislation on further education à Offering of further education courses is not transparent Operational Programme Prague – Adaptability 24 September 2007 52 3 PROGRAMME STRATEGY The pillars for formulating the OPPA strategy are: − Analysis of Prague’s socio-economic situation summed up in the SWOT analysis contained in chapter 2.9; − Strategic documents of the EU and the Czech Republic on the cohesion policy, in particular the Community Strategic Guidelines and the National Strategic Reference Framework within the context of the Community Lisbon Programme, as reflected in the National Reform Programme, the National Sectoral Strategy and the Regional Development Strategy – Strategic Plan for the City of Prague. 3.1 Global Objective The global objective of the Operational Programme Prague – Adaptability is to increase Prague’s competitiveness by strengthening the adaptability and performance of human resources and improving access to employment for all. Meeting the global objective within the programme’s timeframe (by 2015) will help strengthen the region’s sustainable socio-economic development and increase Prague’s importance in Central Europe in comparison with the other Member States’ capitals. Figure 47 System of OPPA objectives and priority axes Global objective Increase Prague’s competitiveness by strengthening the adaptability and performance of human resources and improving access to employment for all. Specific objective 1 Specific objective 2 Specific objective 3 Increase professional mobility and adaptability of employees and employers leading to increase in labour quality and productivity Improve access of disadvantaged persons to employment and increase their participation in the labour market Increase the quality of education and vocational training for people to meet the demands of the labour market Priority axis 1 Support to development of knowledge-based economy Priority axis 2 Support to entry onto labour market Operational Programme Prague – Adaptability 24 September 2007 Priority axis 3 Modernisation of initial education 53 3.2 Specific Objectives The specific objectives further elaborate on the focus of the operational programme’s global objective. The specific objectives will be met through implementing activities within the priority axes formulated in chapter 4. The OPPA’s specific objectives are: Increase professional mobility and adaptability of employees and employers leading to increase in labour quality and productivity; Improve access of disadvantaged persons to employment and increase their participation in the labour market; Increase the quality of education and vocational training for people to meet the demands of the labour market. 3.3 Conformity with Strategic Documents Strategic documents constitute the second pillar on which the OPPA strategy is based. Formulating the operational programme’s global and specific objectives and achieving them by implementing the priority axes take place in the context of the Community Lisbon Programme, whose aim is growth and jobs in Europe. The Lisbon objectives are transposed for the Czech Republic in the National Reform Programme, which draws on the National Action Plans in the field of employment. The Community Strategic Guidelines and the ensuing National Strategic Reference Framework were formulated in the context of the Lisbon Programme (see subsequent chapters). OPPA activities will be very closely linked to the operational programmes on related topics (OP HRE and OP EC) and to the geographically close Operational Programme Prague – Competitiveness (see subsequent chapters for details). The OPPA strategy takes into account the strategy formulated in the comprehensive development document for Prague – the Strategic Development Plan. Operational Programme Prague – Adaptability 24 September 2007 54 Figure 48 Context of the OPPA strategy EU Level Community Lisbon Programme Integrated Guidelines for Growth and Jobs 2005-2008 Community Strategic Guidelines Employment Guidelines 2005 -2008 National Level National Reform Programme National Strategic Reference Framework OP Prague – Competitiveness National Social Integration Action Plan OP Prague – Adaptability Economic Growth Strategy Regional Development Strategy OP Human Resources and Employment Strategic Plan for Prague OP Education for Competitiveness 3.3.1 Community Strategic Guidelines The Community Strategic Guidelines (CSG) lay down the directions for economic, social and local cohesion as a framework for interventions from the Structural Funds and the Cohesion Fund in the programming period 2007-2013. Operational Programme Prague – Adaptability 24 September 2007 55 Figure 49 Links between OPPA and the Community Strategic Guidelines GUIDELINE I: Making Europe and its regions more attractive places to invest and work Expand and improve transport infrastructures Strengthen the synergies between environmental protection and growth Address Europe’s intensive use of traditional energy sources GUIDELINE II: Improving knowledge + innovation for growth Increase and improve investment in research + technological development Facilitate innovation and promote entrepreneurship Promote the information society for all Improve access to finance OP Prague – Adaptability Increase professional mobility and adaptability of employees and employers leading to increase in labour quality and productivity GUIDELINES III: More and better jobs Attract and retain more people in employment and modernise social protection systems Improve adaptability of workers and enterprises + labour market flexibility Increase investment in human capital through better education and skills Administrative capacity Improve access of disadvantaged persons to employment and increase their participation in the labour market Increase quality of education and vocational training for people to meet the demands of the labour market Help maintain a healthy labour force The focus of the OPPA strategy is directly derived from the CSG. The implementation of OPPA will especially contribute to the accomplishment of the third guideline “More and better jobs” and partially also to the accomplishment of the second guideline “Improving knowledge and innovation for growth”. Within the third guideline, OPPA has strong links with the priorities “Attract and retain more people in employment and modernise social protection systems”, “Improve adaptability of workers and enterprises and the flexibility of the labour market“, “Increase investment in human capital through better education and skills” and “Administrative capacity”, as well as a partial link with the priority “Help maintain a healthy labour force”. The links between OPPA and the priorities “Facilitate innovation and promote entrepreneurship” and “Promote an information society for all” are identified in the second guideline. Operational Programme Prague – Adaptability 24 September 2007 56 3.3.2 National Strategic Reference Framework The National Strategic Reference Framework (NSRF) is a fundamental strategic document of the Czech Republic for utilising support from the Structural Funds and the Cohesion Fund during the programming period 2007-2013. The global objective of the National Strategic Reference Framework for 2007-2013 is to transform the socio-economic environment of the Czech Republic in accordance with the principles of sustainable development in such a manner that the Czech Republic would be an attractive place for investing, working and living. Sustainable development will be accomplished through the permanent strengthening of competitiveness and its pace will be higher than the average growth in the EU-25. The Czech Republic will attempt to increase employment and achieve a balanced and harmonious development in the regions, leading to an increase in the quality of the population’s life. This global objective is further specified in the four strategic objectives: “Competitive Czech economy”, “Open, flexible and coherent Czech society”, “Attractive environment” and “Balanced development of the regions”. The implementation of the Operational Programme Prague – Adaptability will primarily contribute to achieving the strategic objective of an open, flexible and coherent society; there is a relatively strong link with the objective of a balanced development of the regions and a partial implementation of OPPA will contribute to achieving the objective of a competitive Czech economy. The relationship between OPPA and the NSRF strategic objectives and its intensity are shown in the following figure. Figure 50 Links between OPPA and the National Strategic Reference Framework National Strategic Reference Framework Operational Programme Prague – Adaptability Competitive Czech economy Open, flexible and coherent society Attractive environment Increase Prague’s competitiveness by strengthening the adaptability and performance of human resources and improving access to employment for all. Balanced development of regions The OPPA priority axes are intensively linked with all priorities of the second NSRF strategic objective “Development of a modern and competitive society”. Medium-strength links are identified with the priorities of the first NSRF strategic objective “Competitive Czech economy.” The OPPA interventions are systemically included in the third NSRF strategic Operational Programme Prague – Adaptability 24 September 2007 57 objective “Balanced development of the territory”. The detailed characteristics for the links between OPPA priorities and NSRF priorities are shown in the following table. OP Prague – Adaptability Support to development of knowledge-base d economy Support to entry onto labour market Modernisation of initial education Competitive Czech economy 1. Competitive business sector « 2. Promote R&D capacities for innovation « 3. Develop sustainable tourism National Strategic Reference Framework Open, flexible and coherent economy « 1. Education 2. Increase employment and employability «« « «« 3. Strengthen social cohesion 4. Develop information society «« « « « «« «« «« 5. Smart administration Attractive environment 1. Protect and improve quality of environment 2. Improve transport accessibility Balanced development of the territory 1. Balanced development of regions 2. Development of urban areas 3. Development of rural areas 4. Regional competitiveness and employment – City of Prague 5. Regional co-operation Notes: «« Significant links « Medium-strength links No links or indirect link Operational Programme Prague – Adaptability 24 September 2007 58 3.3.3 Community Lisbon Programme Integrated Guidelines for Growth and Jobs The measures of the Community Lisbon Programme on employment – more and better jobs – are reflected in the Integrated Guidelines for Growth and Jobs 2005-2008. Of the total of eight guidelines, the implementation of OPPA conforms to seven of them. The detailed characteristics are set out in the following table. Integrated Guidelines for Growth and Jobs 2005-2008 OP Prague – Adaptability Notes: Guideline No. 17: Implement employment policies aiming at achieving full employment, improving quality and productivity at work, and strengthening social and territorial cohesion. Guideline No. 18: Promote a life-cycle approach to work. Guideline No. 19: Ensure inclusive labour markets, enhance work attractiveness, and make work pay for job seekers, including disadvantaged people, and the inactive. Guideline No. 20: Improve matching of labour market needs. Guideline No. 21: Promote flexibility combined with employment security and reduce labour market segmentation, having due regard to the role of the social partners. Guideline No. 22: Ensure employment-friendly labour cost developments and wage-setting mechanisms. Guideline No. 23: Expand and improve investment in human capital. Guideline No. 24: Adapt education and training systems in response to new competence requirements. Support to development of knowledge-b ased economy Support to entry onto labour market Modernisatio n of initial education « « « «« « «« « «« « «« «« «« «« « «« « «« «« «« Significant links « Medium-strength links No links or indirect link National Reform Programme 2005-2008 The Lisbon Strategy was declared in March 2000 and further developed and supplemented by the conclusions of meetings of the European Council in Stockholm (March 2001) and Gothenburg (June 2001). The Lisbon Strategy is focused on dealing with the EU long-term macroeconomic and structural problems as a whole and with those of the individual countries, and could contribute to a higher consistency of attitudes when setting national economic priorities. Based on the new focus of the Lisbon Strategy, or rather the Integrated Guidelines, the Czech Republic has drafted the National Reform Programme (NRP). Operational Programme Prague – Adaptability 24 September 2007 59 With regard to its focus, OPPA is not coherent with the macroeconomic part of the NRP, and it is only marginally connected to the microeconomic part, through the first priority axis of OPPA in the innovation area. There is an intensive link between OPPA and the employment part, through all of the OPPA priority axes. The link to the NRP is clear in the areas of education, lifelong learning, in-company education, information education and, last but not least, integration of disadvantaged persons and co-operation with employers. OP Prague – Adaptability National Reform Programme Support to development of knowledge-based economy Notes: Support to entry onto labour market Modernisatio n of initial education «« «« Macroeconomic part Microeconomic part Employment part « «« «« Significant links « Medium-strength links No links or indirect link In the microeconomic part of the National Reform Programme there are partial links between OPPA and the priority measures “Simplify entry into business,” “Develop innovation infrastructure” and “Promote development and effective use of ICT”. The detailed characteristics of the contribution made by the implementation of OPPA to the National Reform Programme’s priority measures on employment are shown in the following table. Operational Programme Prague – Adaptability 24 September 2007 60 OP Prague – Adaptability Integration on labour market Labour Market Flexibility National Reform Programme 2005-2008 Expand contractual freedom in labour law relations Reduce statutory non-salary costs of labour Improve stimulation effect of direct taxes and benefits with the aim of limiting unemployment and increasing motivation to work for low-income groups Increase territorial mobility Support to developme nt of knowledgebased economy « Modernise employment policy « Reduce unemployment of young people aged under 25 Enforce equal opportunities for men and women on the labour market Increase participation of elderly people in the labour market Increase professional mobility with an efficient re-qualification system Simplify foreigners’ access to the labour market « Education Expand access to advanced specialised and university education Promote co-operation between employers, employees and educational and specialised professional institutions Improve connections between the systems of initial and further education Promote links between the various levels of tertiary education Promote further in-company education Increase information education Modernisation of initial education « « «« « « «« «« Implement a curriculum reform Notes: Support to entry onto labour market « « «« «« «« «« « «« «« «« «« Significant links « Medium-strength links No links or indirect link 3.3.4 National Strategic Documents OPPA’s focus is in accordance with a number of national strategic documents for economic growth and regional development, as well as strategies for education, social integration, research and development, etc. Sustainable Development Strategy of the Czech Republic The Sustainable Development Strategy of the Czech Republic, i.e. development that ensures a balance between the economic, social and environmental development of the society, forms a consensual framework for drafting other materials of a conceptual nature. The basic time Operational Programme Prague – Adaptability 24 September 2007 61 horizon for the strategy is 2014, but some contemplations and objectives are, however, aimed at 2030, or even farther on, depending on the nature of the given area (for example energy). The strategy aims to ensure the greatest possible quality of life for the current generation and to create the conditions for high-quality life for the future generations. National Programme for Development of Education in the Czech Republic (White Paper) At the national level one of the significant documents in the field of lifelong learning is the National Programme for Development of Education in the Czech Republic (White Paper), which was drafted by the MoEYS in co-operation with its partners at the central, regional and local levels and was approved by the Czech government in 2001. Based on a thorough analysis, the White Paper formulates the strategic lines of education policy until 2005 and the main measures to be taken to implement it. The document establishes the foundations for an educational reform in the Czech Republic. It sets educational priorities until 2005 and in some areas works with impacts that will occur by 2010. National Programme for Development of Education in CR OP Prague – Adaptability Support to development of knowledge-base d economy Support to entry onto labour market Modernisation of initial education «« « «« Implement lifelong learning for all Adapt education and study programmes to the needs of life in knowledge society Monitor and assess the quality and efficiency of education Promote internal transformations and openness of educational institutions Transform roles and professional perspectives of teaching and academic workers Transfer from central management to responsible common decision-making Notes: «« « « « « «« « « « «« Significant links « Medium-strength links No links or indirect link Long-term Plan for Education and Development of Educational System of the Czech Republic Another important document for education is the Long-term Plan for Education and Development of the Educational System of the Czech Republic of 2005 (the Long-term Plan). The previous long-term plan dated 2002 elaborated on the strategic aims set out in the White Paper in more detail. The missing legislation that prevented the implementation of some of the strategic aims was supplemented by Act No. 561/2004 Coll., on Pre-School, Primary, Secondary, Higher Specialised and Other Education (the Schools Act), as amended. The 2005 Long-term Plan lays down six areas resulting from the assessment of trends in education and society, following entry to the European structures. Operational Programme Prague – Adaptability 24 September 2007 62 OP Prague – Adaptability 2005 Long-term Plan Support to development of knowledge-base d economy Improve quality and modernise education Ensure quality, monitor and assess results of education Ensure equal opportunities for education Develop an integrated system of advice in education Increase professionalism and social position of teaching staff « Promote further education « Notes: Support to entry onto labour market Modernisation of initial education «« « «« « «« «« «« Significant links « Medium-strength links No links or indirect link National Action Plan for Social Inclusion 2006-2008 The strategy of the National Action Plan for Social Inclusion is based on the updated Common Objectives of the Fight against Poverty and Social Exclusion of the EU, as amended in 2006, following the commencement of the process enhancing the efficiency of coordinating social protection and social exclusion policies. The following objectives were defined for the area of social exclusion: § Guarantee access for all to the basic resources, rights and social services needed for participation in society; § Avoid risk of social exclusion and fight discrimination; § Ensure the active social inclusion of all; § Ensure that social inclusion policies are well-coordinated and involve all levels of government and relevant actors, including people experiencing poverty, that they are efficient and effective and mainstreamed into all relevant public policies, including economic, budgetary, education and training policies and Structural Funds programmes (notably ESF). Operational Programme Prague – Adaptability 24 September 2007 63 OP Prague – Adaptability National Action Plan for Social Inclusion 2004-6 Support to Support to entry development of onto labour knowledge-based market economy Notes: Modernize initial education Mitigate regional inequalities Facilitate access to employment Facilitate access to resources, rights, goods and services to all «« «« «« « «« « «« « «« « Prevent social exclusion Assist most population risk groups in the « «« Significant links « Medium-strength links No links or indirect link Long-term Plan for Education and Scientific, Research, Development, Artistic and other Creative Activities for Universities 2006-2010 The long-term plan for 2006-2010 drafted by the Ministry of Education, Youth and Sport in August 2005 focuses on university education, but in some respects concerns the whole tertiary sector of the educational system. The Ministry aims to create a competitive, richly diversified system that performs all three basic functions of university education. § In the field of education it enables the development and realisation of people’s potential, the preparation of young people for the labour market and the arrangement of their employment over the long-term. § In the field of research and development, universities are expected to set up highquality conditions for the development of top-quality research and development and also to be able to transmit the results of the research and development or to directly apply them in practice. § The third, no less important area of activity in university education is its close co-operation with the business community (businesses, employers and other customers). Operational Programme Prague – Adaptability 24 September 2007 64 OP Prague – Adaptability Long-term Plan for Higher Education 20062010 Support to development of knowledge-base d economy Notes: Support to entry onto labour market Modernisation of initial education Structure and diversification of programmes and institutions «« Access to education, numbers of students and graduates « Internationalisation « Quality and excellence of academic activities « « «« «« « «« «« Significant links « Medium-strength links No links or indirect link Economic Growth Strategy of the Czech Republic The strategy (adopted by the government of the Czech Republic on 16 November 2005) sets out the priorities of the economic policy of the Czech Republic until 2013. The OP Prague – Adaptability is particularly in compliance with the Development of Human Resources – Education and Employment, and Research, Development and Innovation. Economic Growth Strategy OP Prague – Adaptability Support to development of knowledge-base d economy Support to entry onto labour market Modernisation of initial education « «« «« Institutional environment for business Sources of finance Infrastructure Development of human resources – education and employment Research, development and innovation Notes: «« « «« Significant links « Medium-strength links No links or indirect link National Research and Development Policy of the Czech Republic for 2004-2008 The National Research and Development Policy of the Czech Republic (adopted by the government of the Czech Republic in Resolution No. 5 of 7 January 2004) formulates the government’s principles for science and research and provides institutions, organisations and science and research workers with framework information for strategic decisions and the drafting and subsequent implementation of their research plans, as well as other research (including infrastructure), development and innovation, and other related areas. The following Operational Programme Prague – Adaptability 24 September 2007 65 National Research and Development Policy of the Czech Republic 2004-2008 areas were chosen to be the fundamental priorities of this policy: human resources, international co-operation in research and development, regional aspects of research and development, use of research and development results in practice and assessment of research. Notes: OP Prague – Adaptability Support to development of knowledge-base d economy Human resources in R&D International co-operation in « « Support to entry onto labour market Modernisation of initial education « R&D Regional aspects of R&D Use of results of R&D in practice Assessment of research « «« «« « « «« Significant links Medium-strength links « No links or indirect link Regional Development Strategy of the Czech Republic The Regional Development Strategy of the Czech Republic is the basis for drafting development programmes. With regard to the Strategy’s focus, the links between the OP Prague – Adaptability and the Strategy can only be seen in two problem areas: the Economy of Regions and People and Settlements. The promotion of research and development and innovation, and the further education and cooperation between the public and private sectors is related to the area of Economy of the Regions; investments in human capital correspond to the field of People and Settlements. Operational Programme Prague – Adaptability 24 September 2007 66 Regional Development Strategy of the Czech Republic OP Prague – Adaptability Support to development of knowledge-base d economy Support to entry onto labour market «« «« «« «« Modernisation of initial education European and National Economy Strategic Framework Economy of the Regions People and settlements «« Infrastructure Countryside, landscape, and environment Tourism Culture Problem areas Notes: «« Significant links Medium-strength links « No links or indirect link 3.3.5 Links to the Operational Programme Prague – Competitiveness OPPA is closely related to the Operational Programme Prague – Competitiveness. Both programmes focus on the assistance to the entire region of Prague. OPPC will be financed solely from ERDF funds and is oriented on the availability of key services, the city environment, innovation and enterprise, which are important factors for the city’s competitiveness. These factors are closely linked to areas that are the subject of OPPA intervention. The global objective of OPPC is to increase Prague’s competitiveness as a dynamic city in an EU Member State by removing all development barriers and weaknesses in the region, improving the city environment, improving the availability of transport and telecommunications services and developing the city’s innovation potential. The OPPC priority axes are “Availability and environment” and “Innovation and enterprise”. The first two OPPA priority axes are closely related to OPPC, in particular through activities that are included under the Innovation and enterprise priority. This concerns, for example, activities such as support and consultancy for developing the business environment, cooperation between business and science and research facilities, co-operation with employers, and support for the development of social economy. The risk of overlaps in these areas is dealt with by a different definition of eligibility of the supported activities. The coordination between the operational programmes based on the principle of concentration and the accomplishment of the maximum efficiency of the assistance provided through the Operational Programme Prague – Adaptability 24 September 2007 67 synergy effect is a result of the joint management of the two programmes by the City of Prague, including the existence of the Joint Monitoring Committee for both programmes. 3.3.6 Links between the ESF Operational Programmes In the Convergence Objective regions (the whole territory of the Czech Republic with the exception of Prague) the Operational Programmes Human Resources and Employment (managed by the MoLSA) and Education for Competitiveness (managed by the MoEYS) will be implemented with assistance from the ESF. During the preparation of all operational programmes there was an ongoing coordination of the areas of intervention through the working groups of the individual Managing Authorities, in whose work other entities from ESF programmes were involved. Whereas the OP HRE is focused on the active employment policy and on measures strengthening social cohesion, the OP EC includes initial education and systems of further education, including the strengthening of the links between research and development, university education and businesses. OPPA is designed to be in synergy with both Convergence Objective programmes and takes Prague’s specific features into account. OPPA priority axis 1 includes areas of intervention corresponding to priority axis 1 of the OP HRE (“Adaptability”), in particular in further education. The focus of OPPA priority axis 2 (“Support to entry onto labour market”) corresponds to OP HRE priority axes 2 and 3 (“Active policies on the labour market and social integration and equal opportunities”). OPPA priority axis 3 (“Modernisation of initial education”) is parallel to priority axes 1 and 2 of the OP EC (“Modernisation of initial education and modernisation of tertiary education and research and development”). In addition to the related contents of the various areas of intervention, it is necessary to take into account the implementation of the systematic national activities in the OP HRE and the OP EC. The City of Prague, as the centre of the Czech Republic, hosts the headquarters of a number of central institutions with the potential to provide for national activities of a systematic character. To ensure these activities as a part of the ESF programmes, an agreement was made among the main ESF actors in the Czech Republic – the MoLSA, the MoEYS, the MoF, the MfRD, and the City of Prague – to form the OP HRE and the OP EC as multi-objective operational programmes with a contribution from the allocation of the objective concerning regional competitiveness and employment for national systematic activities, cross-section activities and to fulfil national policies. The following approaches will apply in addition to the principle of multi-objectiveness: implementation of mirror projects, transfer of outputs and good practice from the pilot projects. Formation of OP HRE as a multi-objective programme For operations in the areas of active employment policy, modernisation of public administration (smart administration), international co-operation and complementarily also technical assistance, four multi-objective priority axes were formed within the OP HRE (“Active labour market policies”, “Public governance and public services”, “International cooperation” and “Technical assistance”) and the relevant transfer of some of the allocation of the Regional Competitiveness and Employment Objective to the OP HRE budget was implemented. Operational Programme Prague – Adaptability 24 September 2007 68 Table 51 Priority axes of the OP HRE Priority axis 1 Priority axis 2 a Priority axis 2 b Priority axis 3 Priority axis 4 a Priority axis 4 b Priority axis 5 a Priority axis 5 b Priority axis 6 a Priority axis 6 b Adaptability Active labour market policies (Convergence) Active labour market policies (RCEO) Social integration and equal opportunities Public governance and public services (Convergence) Public governance and public services (RCEO) International co-operation (convergence) International co-operation (RCEO) Technical assistance (Convergence) Technical assistance (RCEO) Source: NSRF The multi-objective character of the OP HRE will apply to those activities that are of the systemic nation-wide nature and it is therefore desirable that they be implemented in the whole of the Czech Republic. The activities of the systemic nature with a nation-wide impact fall within the priority axes concerning active employment policy, public governance and public services, international co-operation and technical assistance. The OP HRE Managing Authority in co-operation with the OPPA Managing Authority, using the coordination mechanisms of the ESF programmes (see below), will ensure that the funds allocated to the Convergence Objective be not spent on interventions in a territory falling within the Regional Competitiveness and Employment Objective; at the same time, both Managing Authorities guarantee that the activities implemented under the OP HRE not duplicate the OPPA activities, i.e. the same type of activities is not implemented for the same target group. Public administration modernisation will be supported under two topical OPs – under the priority axis “Public governance and public services” of the OP HRE and under the priority axes “Public administration modernisation” and “Increased quality and accessibility of public services” of the Integrated Operational Programme (IOP). The IOP aims to support the interventions which take place in seven NUTS 2 regions in the Czech Republic falling under the Convergence Objective (it does not concern the City of Prague). The projects of the systemic nature with a nation-wide impact (smart administration, tourism) will be implemented within the framework of the IOP multi-objective priority axes. Formation of OP EC as a multi-objective programme The multi-objective character of the OP EC will apply to those activities that are of the systemic nation-wide nature and it is therefore desirable that they be implemented in the whole of the Czech Republic The activities of the systemic nature with a nation-wide impact fall within the priority axis “Lifelong learning system framework” which includes systemic projects on the national level, including initial, tertiary and further education. The multi-objectiveness includes the priority axis “Technical assistance”. The OP EC Managing Authority, using the coordination mechanisms of the ESF programmes (see below), will ensure that the funds allocated to the Convergence Objective be not spent on interventions in a territory falling within the Regional Competitiveness and Employment Objective; at the same time, the OP EC Managing Authority in co-operation with the OPPA Managing Authority guarantee that the activities implemented under the OP EC not duplicate the OPPA activities, i.e. the same type of activities is not implemented for the same target group. At the same time, the Managing Authority shall provide for the sufficient financial allocation to the activities of the systemic/nation-wide nature. Operational Programme Prague – Adaptability 24 September 2007 69 Table 52 Priority axes of OP EC Priority axis 1 Priority axis 2 Priority axis 3 Priority axis 4 a Priority axis 4 b Priority axis 5 a Priority axis 5 b Initial education Tertiary education, research and development Further education Systemic framework for lifelong learning (Convergence) Systemic framework for lifelong learning (RCEO) Technical assistance (Convergence ) Technical assistance (RCEO) Source: NSRF In the areas of no multi-objective priority axes the principle of mirror projects will apply. It concerns particularly the areas of developing social services and a system of further education. Within the framework of the OPPA, the City of Prague will implement projects mirroring those implemented at the national level under the OP HRE. The projects of this type are designed to meet and implement the already developed national policies with a strong regional dimension, usually falling within the powers of the regions. Pursuant to Art. 3(6) of Regulation (EC) No. 1081/2006 of the European Parliament and of the Council (The ESF shall also support transnational and interregional actions in particular through the sharing of information, experiences, results and good practices, and through developing complementary approaches and coordinated or joint action.), the OPPA activities will be complementary with the OP HRE and OP CE activities through sharing of outputs and good practices derived from pilot projects. Figure 53 Links between OPPA and operational programmes 2007-2013 City of Prague Operational Programme Human Resources and Employment Operational Programme Prague – Adaptability Operational Programme Education for Competitiveness Operational Programme Prague – Competitiveness Notes: Related contents of the specific objectives of operational programmes Additionality of national systematic activities, coordination in the form of multi-objective priority axes Operational Programme Prague – Adaptability 24 September 2007 70 3.3.7 Strategic Plan for the City of Prague Prague’s basic programming document is the Strategic Plan for the City of Prague, which was approved by the Prague City Council in 2000. It is a comprehensive and long-term document, which, however, strives to react to the current trends in the city and the world. The Strategic Plan for the City of Prague places emphasis on Prague’s role as the capital of the Czech Republic, the city’s economy, quality of life and environment, transport and technical infrastructure, management and administration, spatial development. The strategic vision for Prague’s development is focused on five areas: § A successful, competitive and respected city with a strong, modern economy, ensuring good conditions for its inhabitants, prosperity for business and the funds necessary for public projects. § An attractive city that attempts to satisfy its inhabitants and visitors with a good quality of life and safety, attractive and balanced communities and equal opportunities. § A high quality of natural and urban environment whilst respecting the principles of sustainable development related to reducing the current environmental burden on the city and achieving a balance between housing sections and the landscape in the sense of a clean, healthy and harmonious city. § Modernisation, development and operation of the city’s own transport and technical infrastructure to support the correct functioning and economy of the city, its ambitions and development, the corresponding standard of technical progress, reliable and efficient work of systems sensitive to the environment. § Dynamic and friendly administration of the city, high performance when providing services and protecting the public interest, co-operation with other entities based on the principles of partnership, enabling the activities of others and supporting the participation by the citizens in the municipality’s management and development. The Strategic Plan for the City of Prague is the initial document for OPPA. Its themes focus on supporting education, strengthening the adaptability of human resources, increasing the flexibility of the labour market, strengthening social cohesion. The area of public administration modernisation which is of key importance for the City of Prague (where most of the public administration institutions are located) will be supported within the framework of the OP HRE multi-objective priority axis “Public governance and public services”. Operational Programme Prague – Adaptability 24 September 2007 71 Strategic Plan for the City of Prague OP Prague – Adaptability Support to development of knowledge-base d economy Support to entry onto labour market Modernisation of initial education «« « «« « «« «« Prague’s role and city economy Quality of life Quality of the environment Transport and technical infrastructure Management and administration Notes: «« Significant links « Medium-strength links No links or indirect link 3.3.8 Information on complementarity with EAFRD and EFF Geographic eligibility of the Operational Programme Fisheries 2007-2013 (financed from the European Fisheries Fund – EFF) covers regions of the Czech Republic, which are eligible under Convergence Objective, i.e. the whole territory of the Czech Republic except for Prague. Under Rural Development Programme 2007-2013 (financed by the European Agriculture Fund for Rural Development – EAFRD) priority axis 1 “Enhancing competitiveness of agriculture and forestry” covers the territory of the Czech Republic except for Prague, priority axis 2 “Enhancing environment and landscape” excluding agro-environmental measures, which are applicable in Prague, covers the territory of the Czech Republic except for Prague, as well as priority axis 3 “Quality of life in rural areas and diversification of rural economy”. European Social Fund interventions are linked only to priority axis 3 of Rural Development Programme 2007-2013, which is not intended for application in Prague. Operational Programme Fisheries 2007-2013 covers only territory of the Czech Republic except for Prague. To that end OPPA activities are not complementary to interventions of the Rural Development Programme 2007-2013 and Operational Programme Fisheries 2007-2013. 3.3.9 Information on Complementarity with the Activities of the Seventh Framework Programme The Seventh Framework Programme has been divided into four specific programmes corresponding to the main directions of the EU research and development policy: Cooperation, Ideas, People, and Capacities. These specific programmes, which are of the international character, should allow for the creation of European poles of excellence. Activities of the ESF, and therefore also of the OPPA (particularly PA 1 “Support to development of knowledge-based economy” and PA 3 “Modernisation of initial education”) have the closest link to the specific programme People. The OPPA focuses particularly on the Operational Programme Prague – Adaptability 24 September 2007 72 activities which are designed for scientists at all stages of their professional growth (“MarieCurie activities”) – from initial education through further education; at the same time they provide for their career growth. Other activities include establishing connections between industrial and academic spheres, creating partnership and international links. The complementarity of the activities of the OPPA and of the Seventh Framework Programme will ensue from the EU draft directive “Coordinating the Research Framework Programme and the Structural Funds to Support Research and Development” of April 2007 which contains recommendations to coordinate activities of the Seventh Framework Programme and of the Structural Funds. 3.4 Topical, Geographic and Financial Concentration The activities of particular OPPA priority axes cover priorities stipulated by Regulation (EC) No. 1081/2006 of the European Parliament and of the Council on the ESF under the Regional Competitiveness and Employment Objective and they focus particularly on the following: • Lifelong learning and increased investment in human resources by enterprises, especially SMEs, and workers; • Pathways to integration and re-entry into employment for disadvantaged people, through employability measures, including in the field of the social economy, access to vocational education and training, and accompanying actions and relevant support, community and care services that improve employment opportunities; • The design and introduction of reforms in education and training systems in order to develop employability, the improvement of the labour market relevance of initial and vocational education and training and the continual updating of the skills of training personnel with a view to innovation and a knowledge-based economy; • Networking activities between universities, research and technological centres and enterprises. The contents and financial parameters of individual priority axes ensue from the City of Prague’s needs identified based on a socio-economic analysis (summarised in the SWOT analysis – see chapter 2.9), based on links to the relevant strategic documents of the EU, Czech Republic and the City of Prague (see chapter 3.3), the assessment of experience from the previous programming period, and the implementation of particular SPD 3 measures (for details see chapter 2.8) where the area of enhancing the active employment policy in the City of Prague accounted for the relatively weakest element. In the programming period 2004-2006, the projects concerning employers’ and employees’ adaptability were perceived as the most efficient (sufficient absorption capacity, achieving set goals), as well as the projects supporting integration of disadvantaged people in the labour market and those related to lifelong learning. Therefore, the OPPA no longer focuses on the general employment policy, but rather on the activities supporting disadvantaged people on the labour market, measures fighting discrimination and harmonising professional and family lives. The support of human resources in research and development has a very close link to the area of business and innovation and will be supported under PA 1 of the OPPA also with regard to the experience gained during the implementation of SPD 3 projects where there was demand in Prague for investment projects rather than other projects in the area of research and development The largest volume of funds under the OPPA is allocated under PA 1 “Support to development of knowledge-based economy” (38.2%) and relatively lower volumes of funds Operational Programme Prague – Adaptability 24 September 2007 73 under the remaining two priority axes: PA 2 “Support to entry onto labour market” and PA 3 “Modernisation of initial education” (both 29.2%). As regards geographic eligibility, all OPPA activities will be implemented solely in the City of Prague cohesion region, pursuant to Art. 6 of Council Regulation (EC) No. 1083/2006, concerning the regions eligible for funding under the Regional Competitiveness and Employment Objective. 3.5 Horizontal Themes 3.5.1 Sustainable Development Sustainable development is understood in OPPA, in connection with the Lisbon Strategy and other relevant strategic documents, as a cross-sectional theme with overlaps into the areas of economic growth, social cohesion and environmental protection. The main idea is to promote growth to an extent that satisfies the needs of the current generation, without endangering the fulfilment of the needs of future generations. Economic growth and social cohesion are directly and explicitly stated in the OPPA objectives. The support of entrepreneurship and the adaptability of employers and employees is linked to the performance of the region’s economy, and social cohesion will be strengthened as a part of priority axis 2, focused on increasing the accessibility of the labour market for disadvantaged individuals. Environmental protection will be reflected in all stages during the programme’s implementation. With regard to the character of interventions that can be supported by OPPA, this will not concern projects with a significant impact on the environment due to the construction of infrastructure. As a part of the activities supported by OPPA, emphasis will be, however, placed on increasing the awareness of the principles of sustainable development amongst the beneficiaries and the target groups. A theme relevant in particular for further education is, for example, education on environmental management. Wherever appropriate, attention will be paid to better education in the management principles that would reduce the impact of organisations’ activities on the environment and enhance their socially responsible behaviours in accordance with the Lisbon and Gothenburg Strategies. 3.5.2 Equal Opportunities Promoting equality between men and women and involving gender perspectives during the various stages of implementation is a task that has to be met by all implementation elements and results from Art. 16 of Council Regulation (EC) No. 1083/2006. The emphasis on equal opportunities in OPPA is also linked to Art. 6 of European Parliament and Council Regulation (EC) No. 1081/2006. As a part of all implementation activities one of the OPPA objectives is to strengthen equal opportunities for all individuals where there is a risk of discrimination, regardless of the cause for the risk (gender, ethnic origin, race, age, social situation, health condition, religious or political belief, sexual orientation, etc.). Trends in employment by gender in Prague have been a little negative for women since 2000. The high employment of women is falling slightly, although more than 51.2% (2004) of women aged over 15 are employed (52.8% in 2000). The share of women in the total number of people employed has fallen from 46.8% (2000) to 45.9% (2004). The share of female Operational Programme Prague – Adaptability 24 September 2007 74 entrepreneurs is also falling; the share of female employers in Prague has fallen from 25.1% to 20.4% and their share amongst the self-employed has declined from 34.0% to 28.7%. There was a slight increase in the use of part-time jobs. Women are a group more at risk of unemployment than men. There are still more women than men amongst job seekers and their share in Prague fell from 55.7% in 2000 to 52.5% in 2004. The unemployment rate among women has fallen from 5.0% to 4.4%. The share of long-term unemployed women (more than 1 year) has increased from 48.5% to 54.1%. The OPPA envisages support of flexible forms of employment, advice for start-up entrepreneurs and also support focused on persons returning to the labour market after a longer break, i.e. including parents ending parental leave. In addition to gender discrimination, the OPPA will support the fight against ageism (age discrimination), which can be gradually expected to increase in importance, primarily due to demographic processes. Old people and people of pre-pension age are sometimes categorised as rigid in their thinking and methods, and old-fashioned in their morality and skills. The degree of unemployment with regard to the job seeker’s age is stable. Most job seekers are aged between 50 and 54 (14.7%); and female job seekers account for one third of this category. The average age of job seekers has increased by 2 years, i.e. to 40 years (also for women). The greatest increase has been seen in the share of job seekers aged over 55. The OPPA will help, through the defined areas of intervention, disabled people find employment (7,100 disabled people were employed in Prague in 2004). There are very few job vacancies suitable for disabled people. The primary cause is the limited possibilities disabled people have to work, because of their disabilities, often linked with low or no qualifications. The negative influences also include changes from a full disabled pension to a partial disabled pension and a frequent lack of work habits and expertise (often due to collecting social benefits), employers’ fear of frequent or long-term work incapacity, and also a lack of interest in the work process by the individual. Disabled job seekers account for 11.8% (2005) of the total number of job seekers, in 2001 they accounted for 12.9%. In a similar manner the OPPA also contains pro-active measures for enforcing the principle of equal opportunities for persons at risk of social exclusion. The principle of equal opportunities will also be complied with at the stage of programming, management, monitoring and evaluation. Primarily there are equal opportunities in the interventions included in OPPA priority axis 2, but at the level of the relevant indicators they will be reflected in the whole programme through project selection. 3.6 International Co-operation and Support to Innovative Activities International co-operation and innovation are factors that can help harmonious and sustainable development in the region. Within OPPA international co-operation is perceived in a close relationship to innovation. Its main benefits can be expected in the dissemination of good experience, so the elements of international co-operation will be taken into consideration during the implementation of OPPA. The greatest use of international co-operation can be expected as a part of priority axis 1, in particular in support for co-operation between business and science and research facilities, for example the establishment of research and development centres or the development of spinoff companies, and the development and implementation of further education, e.g. during the formation of further education centres, support for know-how transfer, etc. priority axis 3 will also include support for elements of international co-operation, in particular university Operational Programme Prague – Adaptability 24 September 2007 75 education facilities, e.g. in the form of internships, the dissemination of experience with the form and content of teaching, etc. Inspiration and the introduction of successful foreign models of support onto the labour market for the target group of disadvantaged people will be supported as a part of priority axis 2 of OPPA. Innovative activities will be supported within the frame of all priority axes of the programme. Regarding the dynamics of the development of further professional education in the Prague region the support of innovative activities is to be important mainly during the implementation of priority axis 1. However, the support of innovation and the dissemination of new procedures will be applied during the integration of disadvantaged people and modernisation of initial education, i.e. within the framework of priority axes 2 and 3. An important parameter that the OPPA intends to influence positively is the formation and strengthening of networks for the exchange of good experience between the entities active in the various EU Member States. 3.7 Summary of Ex-ante Evaluation The preparation of an ex-ante evaluation of OPPA was announced in accordance with Art. 48 of Council Regulation (EC) No. 1083/2006 as an independent assessment of the operational programme for the Regional Competitiveness and Employment Objective. The evaluation was performed by DHV ČR, spol. s r.o., which assembled a team of experts and external workers, including a foreign expert, for this purpose. The evaluation was performed between February and October 2006, based on a contract concluded with the Ministry of Labour and Social Affairs. The ex-ante evaluation was performed as an interactive continuous process between the exante drafter and the OPPA text drafter, where the comments and recommendations were continuously included into the resulting text of the programme. The ex-ante evaluation process can be divided into three stages: (1) evaluation of the quality of contextual analyses, (2) evaluation of internal and external coherence of the programme, and (3) evaluation of the proposed implementation and monitoring system. As a part of these stages, the evaluator’s assessments and recommendations were provided to the team preparing OPPA on an ongoing basis. The first stage of the ex-ante evaluation took place in February 2006. The evaluator focused on the evaluation of the socio-economic analysis and the SWOT analysis. The conclusions stated that all of the decisive areas were covered, but drew attention to the unequal levels of the analysis in the various theme areas and to the insufficient references to data analyses. In connection with the recommendations there was a reduction in the number of analytic comments and a slimming of the analysis, in particular from the viewpoint of its use for the OPPA. In March 2006, the ex-ante evaluator was handed the first working draft of OPPA as the source document for the second stage of the evaluation, focusing on the connection between the programme and the analytical conclusions and OPPA’s coherence with the priorities of the Czech Republic’s development policy and the EU strategic documents. Using a coincidence matrix the ex-ante evaluator identified that the proposed programme did not sufficiently refer to the analytical conclusions. Some of the proposed intervention areas did not have a Operational Programme Prague – Adaptability 24 September 2007 76 sufficient analytical basis and at the same time the analysis also documented areas that were not relevant for the OPPA. In connection with this ongoing evaluation, findings without a direct link to the ESF were removed from the analysis (e.g. macroeconomic findings) and the information on several areas of intervention was expanded (e.g. further professional education for adults). The ex-ante evaluator also paid attention to the structure of the global and specific objectives. The global objective was redefined based on the ex-ante evaluator’s recommendations. The original objective oriented explicitly on the labour market was replaced by a target that is linked to the competitiveness of the region’s economy and the performance of human resources in Prague. The preliminary final report on the ex-ante evaluation, which was drafted on 30 May 2006, has the following to say about the subsequent parts of OPPA: 1) Analysis of the initial state “The analysis covers all the decisive areas that form the wider context for human resources development in the Prague region. (…) The analysis is based on statistical data showing development trends. The analysis of experience from the last programming period presented as experience from the SPD 3 implementation suitably refers to the organisation’s own analysis. (…) The analysis reasonably supports the setting of the priority axes in the programming document.” 2) SWOT analysis “The problems identified in the SWOT analysis were set out in a relatively clear and reasonable order, enabling the programme to have an appropriate strategic focus.” 3) Internal programme consistency “From the viewpoint of the relevance of priorities and groups of activities, the ex-ante evaluation reviewed the links between the analytical findings of the SWOT analysis and the priorities and groups of activities. The review indicated that the majority of the SWOT analysis findings were reflected in the programmes and, therefore, the proposed programme referred to the analytical conclusions in the relevant manner. (…) The priorities and groups of activities could be regarded as consistent and synergic. The programme is economically reasonable and is suitably balanced to support economic growth and competitiveness, social cohesion and long-term sustainability.” 4) External programme coherence “In connection with the EU strategic documents, the programme’s coherence with the Community Strategic Guidelines and the Lisbon Strategy implemented in the Czech Republic through the National Reform Programme was verified. In connection with the priorities of the Czech Republic’s development policy, the programme’s coherence was checked against the National Strategic Reference Framework, the National Programme for Development of Education in the Czech Republic, the Long-term Plan for Education and Development of the Educational System of the Czech Republic, the Economic Growth Strategy and the Regional Development Strategy of the Czech Republic. The review made clear the high degree of coincidence between the activities proposed in OPPA and the above-mentioned strategic documents. The programme’s proposed groups of activities are in accordance with the priorities of the relevant strategic documents. The programme suitably specifies the links between the OPPA and the relevant operational programmes for 2007-2013.” 5) Expected results and consequences Operational Programme Prague – Adaptability 24 September 2007 77 “The implementation of OPPA will increase employment in institutions contributing to the OP implementation, slightly increase employment as a whole, while the long-term unemployment of specific groups of the population should fall. The quality of employment will increase and it will better correspond to the demand. A network of organisations and institutions will come into being to work with people at risk of social exclusion systematically, and the number of socio-pathological phenomena in the society will fall in relative terms. The labour market will significantly get closer to the requirements of the knowledge-based economy. The ex-ante evaluation reviewed the various indicators in terms of relevancy, efficiency and usefulness/sustainability. The review indicated that the proposed indicators at the priority axes level are clearly related to the OPPA global and specific objectives.” 6) Implementation system “The implementation system clearly defines the powers, responsibilities, management methods and procedures. There are also proposals of adequate structures for the management, monitoring and evaluation of the operational programme. The implementation system is generally straightforward and transparent, the capacities for its implementation are specified and seem to be clear.” 7) Financial framework “The financial framework is drafted transparently in the form of tables and respects the relevant provisions and recommendations of the Commission. (…) Based on experience with implementing the SPD 3 and the current utilisation of funds, we do not expect any significant problems with the absorption capacity.” The full ex-ante evaluation is available at the Managing Authority of OPPA. 3.8 Strategic Environmental Assessment Directive 2001/42/EC of the European Parliament and of the Council dated 27 June 2001 on the Assessment of the Effects of Certain Plans and Programmes on the Environment is transposed into the Czech legal order in Act No. 100/2001 Coll., on Environmental Impact Assessment (Environmental Impact Assessment Act), as amended. According to a statement of the Ministry of Environmental Impact Assessment and IPPC Operational Programme Prague – Adaptability assessment, pursuant to S. 10a(1) of Act No. Assessment, it is not subject to assessment. Operational Programme Prague – Adaptability 24 September 2007 the Environment of the Czech Republic, Department, dated 27 March 2006, the is not subject to a strategic environmental 100/2001 Coll., on Environmental Impact 78 4 PRIORITY AXES The Operational Programme Prague – Adaptability consists of four priority axes. Three priority axes are aimed at direct implementation of three specific objectives of the programme. The fourth – supporting – priority axis deals with technical assistance. Priority axis 1 – Support to development of knowledge-based economy Priority axis 2 – Support to entry onto labour market Priority axis 3 – Modernisation of initial education Priority axis 4 – Technical assistance 4.1 Priority Axis 1 – Support to Development of Knowledge-based Economy Specific objective Increase professional mobility and adaptability of employees and employers leading to increase in labour quality and productivity. This specific objective is based on the ESF priority for the Regional Competitiveness and Employment Objective pursuant to Art. 3(1)(a) of Council Regulation (EC) No. 1081/2006. Justification of the focus of the priority axis The focus of this priority axis on adaptability of employees and employers is based on analytical findings presented in chapter 2 (Socio-economic Analysis of the Region) and on the relevant strategic documents of the EU, the Czech Republic and the City of Prague; these links are documented in chapter 3.3 of the OPPA (Conformity with Strategic Documents). This specific objective will be implemented by strengthening the adaptability of employees on the labour market through development of their professional theoretical and practical knowledge and skills, and by enhancement and development of their qualifications. Further education in information and communication technologies, sustainable development and literacy will be also supported. Special attention will be paid to the development and use of Prague’s innovation potential through improvement in co-operation between research and development facilities, educational institutions and the business community, e.g. in the form of know-how transfers and internships. Emphasis will be given to support to self-employment, establishment of businesses and consultancy in this area. At the same time, specific services in the areas of professional training and support to employees, employers and the self-employed will be developed in connection with the changing labour market requirements. Support will also be given to development and implementation of lifelong learning systems in businesses and NGOs, including improvements in access to the labour market for people without experience, people without qualifications or with low qualifications, and for elderly employees, such as measures focused on unemployment prevention. In the area of recognizing professional qualifications, disparities between the European Qualification Framework and Directive 2005/36/EC and their roles in the qualification recognition process will be taken into consideration. Coordination with ESF operations in the Convergence Objective From the territorial point of view, the activities under priority axis 1 of the OPPA will be complementary to the activities of the OP HRE and OP EC. National system activities in the Operational Programme Prague – Adaptability 24 September 2007 79 area of further education will be implemented through the multi-objective priority axis “Lifelong learning system framework” of the OP EC in the whole of the Czech Republic including Prague. In areas where multi-objective interventions will not be available, the principle of mirror projects and interventions in the form of mutual transfers of outputs and best practice from pilot projects will be used as a complement. Coordination of activities will be ensured through close co-operation of Managing Authorities during selection of the supported projects and through coordination mechanisms described in detail in chapter 3.3.6. The delimitation of scopes of the OPPA and the operational programmes under the Convergence Objective is defined based on territorial eligibility of the specific target group. The OPPA will therefore support only target groups with a link to the territory defined for intervention in the Regional Competitiveness and Employment Objective – the City of Prague. It is not admissible to support target groups without any link to the eligible region. Support to “Development and implementation of further education” in the area of public administration modernisation will be implemented within multi-objective priority axes of the OP Human Resources and Employment; activities performed for this target group will not be supported under the OPPA. Table 54 Categories of expenditure – priority axis 1 Code Priority Themes Lisbon Priority 62 Development of lifelong learning systems and strategies in businesses; professional training and services for employees to increase their ü adaptability to changes; promoting entrepreneurship and innovation 68 Support to self-employment and establishment of businesses 74 Development of the human potential in the area of research and innovation, particularly through graduate studies and professional training of researchers, and networking activities between universities, research centres and businesses ü ü Note: In compliance with Council Regulation (EC) No. 1083/2006 Supported activities Development and implementation of further education – implementation of educational programmes and courses, in particular in the areas of information and communication technologies, communication and management skills, sustainable development, and language knowledge and skills; support to access of groups with specific requirements to further education; preparation and innovation of methodologies and tools for further education, including training and professional preparation of further education providers; increase in the qualifications of employees and graduates through internships and knowledge transfers; development, introduction and implementation of further educational systems in businesses and industries. Human resources enhancement in research and development – support for building of human resources capacity in research and development (e.g. when establishing research and development centres, for the development of spin-off companies, etc.); support to human resources in small and medium-sized enterprises in the area of research and development; support to know-how transfers and internships; support to co-operation between businesses and research and development facilities. Operational Programme Prague – Adaptability 24 September 2007 80 Support and counselling for the developing business environment – provision of education and counselling when establishing new companies; support to start-up small and medium-sized enterprises; support to and education of the self-employed. Eligible target groups Employees People interested in doing business Employers Self-employed Beneficiaries* Enterprises Public institutions NGOs Professional and special interest associations Schools Intervention form Non-reimbursable individual intervention (grants) Intervention amount Maximum intervention amount up to 100% of eligible project expenditure Funding flexibility With reference to Art. 34(2) of Council Regulation (EC) No. 1083/2006, the priority axis allocation will be used to finance the measures that fall within the framework of the ERDF intervention, up to a maximum of 10% of the priority axis allocation. The funding of operations falling within the ERDF intervention framework will only be used in cases which will be directly linked to the operations supported by the OPPA as part of the ESF intervention and which will be necessary for their successful implementation. An indicative list of operations to which Art. 34(2) of Council Regulation (EC) No. 1083/2006 applies: operations falling within the ERDF intervention framework are, in all cases, from the area of purchase of facilities and equipment and adaptation or modernisation of real estate in which activities supported from the ESF are implemented: − Development of further education centres and other organisations providing further education through their facilities, in particular through information and communication technologies with the aim of ensuring multimedia learning forms and innovation transfer; − Support to research and development centres for human resources development, including small and medium-sized enterprises performing research and development by providing facilities, equipment and modernisation of the real estate in use. The Managing Authority will monitor and register use of funding flexibility in a manner allowing for search and identification (audit trail) of the expenditure items entered. * For a detailed explanation of the individual beneficiary categories, see the Definitions of Terms Used. Operational Programme Prague – Adaptability 24 September 2007 81 4.2 Priority Axis 2 – Support to Entry onto Labour Market Specific objective Improve access of disadvantaged persons to employment and increase their participation in the labour market. This specific objective is based on the ESF priority for the Regional Competitiveness and Employment Objective pursuant to Art. 3(1)(c) of Council Regulation (EC) No. 1081/2006. Justification of the focus of the priority axis The focus of this priority axis on improvement in access to employment of disadvantaged people and increase in their participation in the labour market is based on analytical findings presented in chapter 2 (Socio-economic Analysis of the Region) and on the relevant strategic documents of the EU, the Czech Republic and the City of Prague; these links are documented in chapter 3.3 of the OPPA (Conformity with Strategic Documents). This specific objective will be accomplished through interventions focusing on integration of disadvantaged people (people at risk of social exclusion, socially excluded individuals, people with incomplete education, people with a physical disability, minorities, etc.) into employment by improving their employability, including the complementary social services. The intervention will also focus on establishment of specific workplace conditions for disadvantaged people and on implementation of measures preventing discrimination in the access to the labour market (promotion of equal opportunities for men and women, groups from different socio-cultural environments, etc.) through increase in public awareness and involvement of local initiatives. Emphasis will be given to the introduction of new, more flexible forms of work organisation which will facilitate entry or return onto the labour market of people with a physical disability and of parents after parental leave. Coordination with ESF operations in the Convergence Objective From the territorial point of view, the activities under priority axis 2 of the OPPA will be complementary to the activities of the OP HRE. The area of active employment policy, as a national policy, will be supported under the OP HRE’s multi-objective priority axis “Active labour market policies” through interventions aiming at improvement in access to employment and permanent integration of job seekers. The intervention will focus on prevention of unemployment, in particular long-term unemployment and unemployment of elderly employees, by modernising and strengthening the labour market institutions, especially employment services. Emphasis will be also placed on individuals and on selecting the tools for the best support of their integration into sustainable employment, including mobility support. This priority axis will include not only the activities developing the employment policy system as such, but also the activities fulfilling the objectives through service provision. Since it is a multi-objective priority axis, it will be implemented also in the City of Prague. In the area of social services development (OP HRE’s priority axis “Social integration and equal opportunities”) where it is necessary to ensure a uniform national approach to implementation of the current policies, projects mirroring the national systematic projects implemented by the MoLSA under the OP HRE will be implemented by the City of Prague within the OPPA. Moreover, mutual transfers of outputs and best practice from pilot projects will be used. Coordination of the supported activities will be ensured by close co-operation between the Managing Authorities when selecting projects to be supported and by coordination mechanism described in detail in chapter 3.3.6. Operational Programme Prague – Adaptability 24 September 2007 82 The delimitation of scopes of the OPPA and the operational programmes under the Convergence Objective is defined based on territorial eligibility of the specific target group. The OPPA will therefore support only target groups with a link to the territory defined for support in the Regional Competitiveness and Employment Objective – the City of Prague. It is not admissible to support target groups without any link to the eligible region. The target group delimitation of the OP HRE priority axis “Active labour market policies” is based on the character of the target group: the OP HRE will provide support to job seekers and people interested in employment, while the eligible target groups under the OPPA are groups of disadvantaged people. Table 55 Categories of expenditure – priority axis 2 Code 69 71 Priority Themes Lisbon Priority Measures to improve access to employment and increase sustainable employment and advancement of employed women with the aim to reduce gender-based segregation on the labour market and to ü harmonize work and private life, e.g. to facilitate access to childcare and care for dependent individuals Pathways to integration and re-integration into employment of disadvantaged people on the labour market; combating discrimination in access to and advancement on the labour market; promoting ü acceptance of diversity at the workplace Note: In compliance with Council Regulation (EC) No. 1083/2006 Supported activities Integration of disadvantaged people – integration activities aiming at improvement in the position of disadvantaged people on the labour market, in their return to and retention on the labour market, including the delivery of the associated social services under Act No. 108/2006 Coll., on Social Services; support to disadvantaged people in job seeking and retention of a job; development of activities supporting the extension of the working life; provision of support and counselling for the establishment and start-up of social economy entities. Development of organisations supporting the integration of disadvantaged people – support to further education of social services workers; development and innovation of methods of work with clients within work integration; further education in organisations associated with the social services transformation, including education enhancing the quality of social services and best practice sharing. Support to balance between work life and private life – support to and development of childcare services with the aim to achieve balance between the work life and private life of their parents; support to the family-friendly working environment and development of flexible forms of work organisation (enabling parents taking care of children or a dependent family member to return to the labour market); specific measures supporting equal opportunities for men and women on the labour market; support to job description adaptation and expansion of possible involvement of employees in pre-retirement age. Development of capacities of small organisations – support to development of activities of the current small and new organisations involved in social inclusion; the rules for small grants will be simpler for the supported organisations from the administrative viewpoint, the provided intervention volumes will be smaller. Operational Programme Prague – Adaptability 24 September 2007 83 Eligible target groups Disadvantaged people Workers in social services Employers Beneficiaries* NGOs Public institutions Enterprises Intervention form Non-reimbursable individual intervention (grants) Intervention amount Maximum intervention amount up to 100% of eligible project expenditure Funding flexibility With reference to Art. 34(2) of Council Regulation (EC) No. 1083/2006, the priority axis allocation will be used to finance the measures that fall within the framework of the ERDF intervention, up to a maximum of 10% of the priority axis allocation. The funding of operations falling within the ERDF intervention framework will only be used in the cases which will be directly linked to the operations supported by the OPPA as part of the ESF intervention and which will be necessary for their successful implementation. An indicative list of operations to which Art. 34(2) of Council Regulation (EC) No. 1083/2006 applies: operations falling within the ERDF intervention framework are, in all cases, from the area of purchase of facilities and equipment and the adaptation or modernisation of real estate in which activities supported from the ESF are implemented: − Support to organisations in the social economy area through investments in equipment and modernisation of real estate necessary for project implementation; − Strengthening of the capacity of organisations active in the area of inclusion of disadvantaged people by provision of facilities, equipment and adaptation of the real estate used; − Support to inclusion of disadvantaged people (in particular due to a disability) by refurbishment of their work environment. The Managing Authority will monitor and register use of funding flexibility in a manner allowing for search and identification (audit trail) of the expenditure items entered. 4.3 Priority Axis 3 – Modernisation of Initial Education Specific objective Increase the quality of education and vocational training for people to meet the demands of the labour market. This specific objective is based on the ESF priority for the Regional Competitiveness and Employment Objective pursuant to Art. 3(1)(d) of Council Regulation (EC) No. 1081/2006. * For a detailed explanation of the individual beneficiary categories, see the Definitions of Terms Used. Operational Programme Prague – Adaptability 24 September 2007 84 Justification of the focus of the priority axis The focus of this priority axis on the increase in the quality of education and vocational training of people is based on analytical findings presented in chapter 2 (Socio-economic Analysis of the Region) and on the relevant strategic documents of the EU, the Czech Republic and the City of Prague; these links are documented in chapter 3.3 of the OPPA (Conformity with Strategic Documents). This specific objective will be achieved through interventions aiming at an increase in availability and quality of education on offer so that it meets the requirements of the labour market and the knowledge-based society. Support will be provided to initial education and to strengthening of links between the initial and further education. Interventions in the secondary and higher vocational education will focus on improvement in the quality and on the development of individual areas in a manner to meet the requirement of harmonising the educational offer with the labour market’s needs. One of the activities is support to prevention of early drop-outs from education as part of preventing people with no or low qualifications from being unemployed. To facilitate the transition of school graduates to employment, support will be provided to programmes focusing on the development of transferable competences and the spirit of entrepreneurship (development of business education in the curricula of secondary and higher vocational schools). The schools will establish specialised partnerships with both employers and other similarly focused schools in the Czech Republic and the EU. The co-operation between schools will be vertical in a manner ensuring that graduates proceed to the next schooling level with the appropriate profile. Another aim is to increase the interest in technical and natural science subjects in university education. Schools will be supported in development of counselling services for their pupils and students regarding their educational careers or choice of profession, and in their orientation on the labour market. The quality of managers and teaching staff is a fundamental condition for improving education in schools. Teaching staff still need to supplement their knowledge and to include new methods and forms of teaching. Their knowledge of work with information technologies and their application in teaching, as well as their knowledge of foreign languages, is unsatisfactory. The interventions in this area are aimed at developing and implementing educational products that reflect the real demand and needs of teachers in Prague’s schools. In university education, emphasis will be given primarily to the development of Bachelor’s study programmes that prepare graduates directly for work, but also to PhD study programmes and student exchanges with foreign universities, developing capacities for implementation of international projects and co-operation with research and development entities. Schools will expand their information and counselling services for students so that students get a clearer picture of the range of education on offer. The education offered by schools should be more involved in lifelong learning. In order to facilitate access to education for all those interested, schools should also develop distance and combined study forms. To ensure success of their students on the labour market, schools should also contribute to the diversity and individuality of afternoon courses that help develop key skills to be used on the labour market. Operational Programme Prague – Adaptability 24 September 2007 85 Another intervention area is support to integration of pupils with special educational needs into education. Schools will be enabled to prepare and implement plans for the individual inclusion of children with special educational needs in ordinary classes, and to draft comprehensive programmes for such pupils and students, including supplementary or additional education. The integration measures, in particular for children with serious behavioural problems, can be implemented through special programmes (e.g. through support to comprehensive-type facilities) which would precede the integration into an ordinary teaching environment. These measures should help facilitate the transition to a higher schooling level, equalise the chances to succeed in life and in work and motivate to lifelong learning. Identification and education of talented pupils and students is a cross-sectional theme of this priority axis. With regard to the differences in the quality and quantity of their talents, talented pupils need a combination of various forms of differentiation of preparation in the course of their schooling. Coordination with ESF operations in the Convergence Objective From the territorial point of view, the activities under priority axis 3 of the OPPA will be complementary to the activities of the OP EC. National system activities in the area of initial education will be implemented through the multi-objective priority axis “Lifelong learning system framework” of the OP EC in the whole of the Czech Republic including Prague. Moreover, mutual transfers of outputs and best practice from pilot projects will be used. Coordination of activities will be ensured through close co-operation of Managing Authorities during selection of the supported projects and through coordination mechanisms described in detail in chapter 3.3.6. The delimitation of scopes of the OPPA and the operational programmes under the Convergence Objective is defined based on territorial eligibility of the specific target group. The OPPA will therefore support exclusively the target groups with a link to the territory defined for support in the Regional Competitiveness and Employment Objective – the City of Prague. It is not admissible to support target groups without any link to the eligible region. The activity “Development of and quality increase in university education curricula” in Prague will be supported under the OPPA because of the connection with the programming period 2004-2006 (SPD 3), since all the necessary coordination mechanisms have been set up and are running well. Universities are established pursuant to Act No. 111/1998 Coll., on Higher Education, as amended, according to which development of curricula (i.e. an activity supported under the OPPA) falls within the independent competence of university education facilities; the role of the MoEYS is rather of a coordination character in this area. The focus of calls and direct allocation projects in the areas of the curricula reform and support to university education facilities will be consulted with the MoEYS. Operational Programme Prague – Adaptability 24 September 2007 86 Table 56 Categories of expenditure – priority axis 3 Code Priority Themes Lisbon Priority 72 Design, introduction and implementation of reforms in the education and training systems in order to develop employability, improving the ü labour market relevance of initial and vocational education and training, and continuous improvement of skills of teaching staff with respect to innovation and the knowledge-based economy 73 Measures to increase lifelong participation in education and vocational training, among other things through measures focusing on reduction in ü the number of people with incomplete education and in gender-based segregation of subjects, and on increase in access to and quality of initial, vocational and tertiary education and vocational training 74 Developing human potential in the research and innovation area, in particular through graduate studies and vocational training of ü researchers, and networking activities between universities, research centres and businesses Note: In compliance with Council Regulation (EC) No. 1083/2006 Supported activities Improvement in the quality of education at secondary schools and higher vocational schools – development and innovation of curricula at secondary schools and higher vocational schools with respect to flexibility and adaptability of graduates on the labour market (e.g. development of key and transferable competences, development of distance and combined learning forms); prevention of early drop-outs from education (e.g. help with completion of studies); support to facilitating the transition from school to work, e.g. by means of vocational counselling; enhancement of co-operation between schools and businesses, university education facilities and research and development institutions; support to afternoon educational programmes at schools for pupils and students, with emphasis on development of key and transferable competences; popularisation of science with the aim to increase the attractiveness of scientific careers for the young generation. Further education of teaching staff – support to further education programmes in the area of introducing new methods and forms of teaching, management and evaluation of schools’ work, specific features of work with pupils and students with special educational needs and work with exceptionally gifted pupils and students, prevention of socially pathological phenomena, etc.; developing knowledge of foreign languages and computer literacy; improvement in qualifications of teaching staff. Development of and improvement in university education curricula – development of especially the Bachelor’s and PhD curricula with respect to achieving the objectives of the Bologna Declaration; support to distance and combined learning forms; support to international co-operation; enhancement of co-operation with businesses and research and development institutions; development of career counselling and information services on the educational offer for students. Support to pupils and students with specific educational needs – support to inclusion of disadvantaged pupils and students (e.g. socially or health disadvantaged, or with a physical disability) into the educational programmes of ordinary schools; support to motivational programmes for pupils and students such as prevention of early drop-outs from the educational system; support to individualisation of education for gifted pupils and students. Eligible target groups Pupils Operational Programme Prague – Adaptability 24 September 2007 87 Students Teaching staff Persons who prematurely left the educational system Beneficiaries* Schools Public institutions NGOs Intervention form Non-reimbursable individual intervention (grants) Intervention amount Maximum intervention amount up to 100% of eligible project expenditure Funding flexibility With reference to Art. 34(2) of Council Regulation (EC) No. 1083/2006, the priority axis allocation will be used to finance the measures that fall within the framework of the ERDF intervention, up to a maximum of 10% of the priority axis allocation. The funding of operations falling within the ERDF intervention framework will only be used in cases which will be directly linked to the operations supported by the OPPA as part of ESF intervention and which will be necessary for their successful implementation. An indicative list of operations to which Art. 34(2) of Council Regulation (EC) No. 1083/2006 applies: operations falling within the ERDF intervention framework are, in all cases, from the area of purchase of facilities and equipment and adaptation or modernisation of real estate in which activities supported from the ESF are implemented: − Support to inclusion of disadvantaged pupils and students (in particular due to disabilities) by refurbishment of educational facilities; − Improvement in and innovation of curricula at secondary schools, higher vocational schools and universities by providing equipment and adaptations to real estate used for education, co-operation with research institutions and businesses; − Support to further education of teaching staff and professional workers in education by ensuring the provision of, especially, information and communication technologies, with the aim of to promote multimedia teaching forms and innovation transfer. The Managing Authority will monitor and register use of funding flexibility in a manner allowing for search and identification (audit trail) of the expenditure items entered. 4.4 Priority Axis 4 – Technical Assistance Specific objective Ensuring an efficient and effective implementation of the OPPA. In this priority axis, funding will be provided primarily to activities supporting the management, implementation, control, monitoring, evaluation and publicity of the OPPA. * For a detailed explanation of the individual beneficiary categories, see the Definitions of Terms Used Operational Programme Prague – Adaptability 24 September 2007 88 Justification of the focus of the priority axis The focus of this priority axis is based on Council Regulation (EC) No. 1083/2006 and on the experience gained during implementation of the SPD 3 in the programming period 2004-2006. Table 57 Codes of priority themes – priority axis 4 Code Priority Theme 85 Preparation, implementation, monitoring and inspection 86 Evaluation and surveys; information and communication Note: In compliance with Commission Regulation (EC) No. 1828/2006 Lisbon Priority - Intervention areas Programme management support – ensuring the preparation, selection, contracting and monitoring of projects; provision for and enhancement of administrative capacity; project audits and checks; provision for the activities of the Monitoring Committee; provision for operation and development of the electronic management and monitoring system; performing the duties of the Managing Authority. Additional activities related to programme implementation – implementation of the OPPA’s communication plan; preparation and performance of evaluations, analyses and monitoring studies; strengthening of the absorption capacity. Beneficiary Managing authority Intervention form Non-reimbursable intervention Intervention amount Maximum intervention amount up to 100% of eligible project expenditure 4.5 Monitoring Indicators and Quantified Objectives The system of monitoring indicators is, in accordance with Council Regulation (EC) No. 1083/2006, a tool for an efficient monitoring of the progress of implementation of the operational programme. Monitoring indicators are set at the level of the programme and the individual priority axes. Context indicators were defined in order to monitor any changes in the environment in which the operational programme is implemented. 4.5.1 Context Indicators Context indicators are basic characteristics of the socio-economic environment in the City of Prague. These indicators can by influenced by programme interventions to a varying extent. The context indicators were set at the level of the programme for the economic, demographic, educational and employment areas. The initial values of the context indicators are quantified; another quantification will be carried out at the end of the programming period which will describe the changes in the socio-economic environment. Operational Programme Prague – Adaptability 24 September 2007 89 Table 58 OPPA context indicators Code Indicator / Definition Unit 01.09.00 GDP per capita (in PPS, EU-25 = 100%) Employment rate / share of the employed people in population Economic activity rate / share of labour force in 15+ population % 154 – – % Total 59.9 54.4 51.9 CSO (SLFS) % 62.0 70.9 54.0 Employment structure by sector / share of people employed in a sector in the total number of employed people Share of businessmen / share of employers and self-employed people in the number of employed people % Primary Secondary Tertiary 0.6 20.1 79.1 0.9 28.4 70.5 0.3 10.1 89.4 CSO (SLFS – annual averag e) CSO (SLFS) % 20.4 27.0 12.5 Population structure by age / share of specific age groups in total population % 0-14 15-64 65 and over % Primary Secondary no cert. Secondary w/ cert. Higher 12.4 71.9 15.7 13.3 74.0 12.8 11.6 70.0 18.4 12.9 23.7 41.0 22.4 10.4 27.3 35.2 27.0 15.0 20.5 46.1 18.2 % 3.25 2.80 3.81 07.22.00 07.12.00 07.07.01 07.07.05 07.07.07 07.07.10 05.04.01 05.04.02 05.04.03 06.39.10 06.39.20 06.39.25 06.39.30 07.26.00 Population structure by the highest level of achieved education / share in 15+ population Registered unemployment rate Source Initial value (2005) Total Men Women CSO CSO (SLFS – annual averag e) CSO (SLFS) CSO (SLFS – annual averag e) MoLSA (Labour Office) 4.5.2 Definitions of Indicators In accordance with the requirements of the Methodological Working Paper of the European Commission – Indicators for Monitoring and Evaluation, the indicators have been set at four levels for the OPPA – i.e. there are the input, output, result and impact indicators. The system of OPPA indicators has been established in compliance with the proportionality principle with respect to the limited programme budget and technical assistance sources for monitoring of the programme implementation progress. Operational Programme Prague – Adaptability 24 September 2007 90 Number of supported projects Number of successfully supported people Number of supported projects Number of successfully supported people Specific objective 2 Improvement in access to employment of disadvantaged people and increase in their participation in the labour market Specific objective 3 Increase the quality of education and vocational training for people to meet the demands of the labour market Operational Programme Prague – Adaptability 24 September 2007 Number of programme intervention activities Number of supported projects Number of successfully supported people Specific objective 1 Increase professional mobility and adaptability of employees and employers leading to increase in labour quality and productivity Specific objective 4 Ensure an efficient and effective implementation of the OPPA Output Objective Global objective Increase competitiveness of Prague by strengthening adaptability and performance of human resources and improving access to employment for all Table 59 Programme indicators system Programme Priority Priority axis Priority axis axis 3 2 1 Priority axis 4 Project applications success rate Education quality level Employment accessibility level Employment satisfaction level Result 91 Impact Rate of participation of the employed people in further education Long-term unemployment rate of the elderly Long-term unemployment rate of young people Use of private co-financing Input indicators The input indicators describe the sources for implementation of the activities supported by the OPPA in financial terms. Table 60 Definition of the OPPA input indicators Indicator title Definition Priority axis budget Total amount allocated to the individual priority axes Output indicators The output indicators describe the activities implemented within a project using its budget. They represent the immediate effects of the funds expended. The entity implementing a project directly influences achievement of the outputs. The data necessary for monitoring of the output indicators will be gathered using the project monitoring reports. Table 61 Definition of the OPPA output indicators Indicator title Number of successfully supported people Number of supported projects Number of programme intervention activities Definition Number of people for whom the set of the intervention activities implemented fulfilled the pre-defined objective specified under chapter 4.5.3 The total number of supported projects which were granted financial intervention under the OPPA based on an application The total number of trainings, seminars, workshops and conferences organised with the purpose of supporting the programme Result indicators The result indicators document the progress in fulfilment of the programme’s priority axes. They describe the long-term effects of the implemented project activities. With respect to the proportionality principle, monitoring of the result indicators is performed periodically twice in the programming period (being planned for the years 2011 and 2015). The data sources for monitoring of the result indicators are evaluation studies. Table 62 Definition of the OPPA results indicators Indicator title Employment satisfaction rate Employment accessibility rate Education quality level Project application success rate Definition Share of the employed people (successfully supported project participants) who, at least six months after intervention termination, consider their position on the labour market better (career growth, potential to find a better job) compared to their situation before the project Share of disadvantaged people (successfully supported project participants) employed or continuing in their labour market integration activities at least six months after intervention termination in the total number of supported people Share of people (successfully supported project participants) employed at a position appropriate for the type of their education level, or continuing in education in the same profession at least six months after intervention termination in the total number of supported people Share of financially eligible projects in the total number of project applications submitted Operational Programme Prague – Adaptability 24 September 2007 92 Impact indicators The impact indicators express the positive effects leading to the achievement of the programme’s objective. The impacts of programme implementation take effect after a certain time period with a varying level of causal connection with the programme activities. The OPPA impact indicators comply with the NSRF strategic objective 2 “Open, flexible and cohesive society”. Table 63 Definition of the OPPA impact indicators Indicator title Rate of participation of the employed people in further education Long-term unemployment rate of the elderly Long-term unemployment rate of young people Use of private co-financing Definition Share of people aged 25-64 who have participated in education and vocational trainings (in the four weeks preceding the survey) in the relevant population Share of people unemployed for more than 12 months in the total number of people aged 50+ Share of people unemployed for more than six months in the total number of people aged 15-24 Share of private financing used within the supported projects (other than public resources) 4.5.3 Detailed Breakdown of Indicators For more detailed monitoring of outputs and results, certain indicators will be broken down in detail in accordance with the Commission Regulation (EC) No. 1828/2006 providing for the detailed rules for implementing Council Regulation (EC) No. 1083/2006: Indicator: number of people supported (07.46) − Detailed breakdown by gender (men, women); − Detailed breakdown by position on the labour market (employees, self-employed, long-term unemployed, other unemployed people, inactive people, inactive people in education or vocational training); − Detailed breakdown by age (young people aged 15-24, elderly employees aged 55-64); − Detailed breakdown by disadvantage (minorities, migrants, the disabled, other disadvantaged groups); − Detailed breakdown by the achieved education level (primary ISCED 1 and 2, secondary ISCED 3, additional study ISCED 4, university education ISCED 5 and 6); − Detailed breakdown into clients and service providers (only within priority axis 2). Indicator: education quality level − Detailed breakdown by gender (men, women). Indicator: employment accessibility rate − Detailed breakdown by gender (men, women). Indicator: employment satisfaction rate − Detailed breakdown by gender (men, women). Indicator: long-term unemployment rate of the elderly (07.26) − Detailed breakdown by gender (men, women). Operational Programme Prague – Adaptability 24 September 2007 93 Indicator: rate of participation of the employed people in further education (06.41) − Detailed breakdown by gender (men, women). Indicator: long-term unemployment rate of young people (07.30) − Detailed breakdown by gender (men, women). 4.5.4 Quantification of Objectives The objectives have been quantified at the programme and the priority axes levels. The objective quantification is based on a detailed analysis of the progress in implementation of SPD 3 in 2004-2006. The quantification is influenced by a change in the methodology for the monitoring indicators in comparison with SPD 3 where the indicator of the number of people supported is structured differently, i.e. each person supported is included only once, while in SPD 3 the analogous indicator represents the number of supports provided. Operational Programme Prague – Adaptability 24 September 2007 94 Priority axis budget Number of successfully supported people Inputs Outputs Outputs Results 07.46.00 49.21.00 07.61.00 Priority axis budget Number of successfully supported people Inputs Outputs Outputs Results 07.46.00 49.21.00 07.62.00 Operational Programme Prague – Adaptability 24 September 2007 Employment accessibility rate Number of supported projects Title Type Code Table 65 Quantified objectives of priority axis 2 Employment satisfaction rate Number of supported projects Title Type Code Table 64 Quantified objectives of priority axis 1 % pcs EUR pcs Unit % pcs EUR pcs Unit 95 - 0 Initial value (2005) 0 - 0 Initial value (2005) 0 70 170 Target value (2015) 37,188,301 2,550 75 230 Target value (2015) 48,729,498 5,100 Monitoring periodicity 6 months 6 months Monitoring periodicity 6 months 6 months OPPA project monitoring reports OPPA 6 months monitoring system evaluation Twice in the studies programming period Data source OPPA project monitoring reports OPPA 6 months monitoring system evaluation Twice in the studies programming period Data source Priority axis budget Number of successfully supported people Inputs Outputs Outputs Results 07.46.00 49.21.00 07.63.00 Priority axis budget Number of programme intervention activities Inputs Outputs Results 48.11.00 07.64.00 Operational Programme Prague – Adaptability 24 September 2007 Project applications success rate Title Type Code Table 67 Quantified objectives of priority axis 4 Education quality level Number of supported projects Title Type Code Table 66 Quantified objectives of priority axis 3 % EUR pcs Unit % pcs EUR pcs Unit - Initial value (2005) 0 - 0 Initial value (2005) 0 55 Target value (2015) 4,405,949 80 80 170 Target value (2015) 37,188,301 5,100 Monitoring periodicity 6 months 6 months OPPA statistics of the Managing Authority evaluation studies Data source 96 Once a year Monitoring periodicity 6 months 6 months OPPA project monitoring reports OPPA 6 months monitoring system evaluation Twice in the studies programming period Data source Programme budget Number of successfully supported people Education quality level Rate of participation of the employed people in further education Long-term unemployment rate of the elderly Long-term unemployment rate of young people Use of private co-financing Inputs Outputs Outputs Outputs Results Results Results Impacts Impacts Impacts Impacts 07.46.00 49.21.00 48.11.00 07.61.00 07.62.00 07.63.00 06.41.05 07.30.03 07.30.00 49.41.13 Operational Programme Prague – Adaptability 24 September 2007 Employment accessibility rate Employment satisfaction Number of programme intervention activities Number of supported projects Title Type Code Table 68 Quantified objectives of the operational programme EUR % % % % % % pcs pcs EUR pcs Unit 12 13 6.7 - - - 0 0 Initial value (2005) 0 1,500,000 10.5 11.5 12.5 80 70 75 80 570 Target value (2015) 127,512,049 12,750 Monitoring periodicity 6 months 6 months Labour office registry Labour office registry OPPA monitoring system 97 Once a year Once a year Once a year OPPA project monitoring reports OPPA 6 months monitoring system statistics of the 6 months Managing Authority evaluation Twice in the studies programming period evaluation Twice in the studies programming period evaluation Twice in the studies programming period Eurostat, CSO Once a year Data source 4.6 Information on State Aid Based on Art. 9 of Council Regulation (EC) No. 1083/2006, the OPPA is prepared and will be implemented in compliance with the Community activities, policies and priorities, including the Competition Policy. The Managing Authority shall ensure that State Aid under the OPPA be provided in compliance with procedural and factual State Aid rules applicable at the moment of granting the relevant State Aid. Pursuant to Art. 87 and 88 of the EC Treaty, no aid will be granted by the OPPA which would or could interfere with economic competition in the EU by favouring certain businesses or certain manufacturing sectors within the framework of trading between the Member States. The total State Aid provided, regardless of whether it is financed from the EU funds in whole or in part, will not exceed the relevant ceiling for regional aid determined in accordance with the map valid at the time the aid is granted and approved by the European Commission for the Czech Republic, where relevant. Operational Programme Prague – Adaptability 24 September 2007 98 5 IMPLEMENTATION STRUCTURE At all OPPA implementation stages and wherever possible and practical, the principle of wide involvement of partners, the proportionality principle, the principle of effective management with respect to costs, and the good governance principle will be respected. 5.1 Management 5.1.1 Managing Authority Pursuant to Art. 60 of Council Regulation (EC) No. 1083/2006, the Managing Authority is responsible for the proper and effective management of the programme in compliance with legislation of the European Union and with national laws. Pursuant to Act No. 248/2000 Coll., on Support to Regional Development, as amended, the Managing Authority of the Operational Programme Prague – Adaptability is the City of Prague, Prague City Hall, EU Funds Department. Table 69 Managing Authority of the Operational Programme Prague – Adaptability Name Registered office City of Prague, Prague City Hall, EU Funds Department Mariánské nám. 2, 110 01 Prague 1, Czech Republic The Managing Authority of the operational programme, in particular: a) Gathers reliable financial and statistical data enabling monitoring of intervention implementation and transfers the data to the National Coordination Authority (NCA), or to the Commission, as the case may be, usually in electronic form; b) Drafts the selection and evaluation criteria for project selection and submits them for approval to the Monitoring Committee; c) Ensures that the operations for financing are chosen according to the operational programme criteria and that they comply with the relevant EU and Czech regulations for the whole duration of implementation; d) Ensures the recording and storage of accounting records in electronic form for each operation that is part of the operational programme, as well as the gathering of data on implementation of steps necessary for financial management, monitoring, verification, auditing and evaluation; e) Ensures that beneficiaries and other entities involved in the performance of operations maintain an independent accounting system or a corresponding accounting code for all transactions associated with an operation, without prejudice to domestic accounting regulations; f) Verifies the delivery of co-financed products and services, the actual expenditures on operations reported by beneficiaries, and their compliance with the EU and Czech regulations; g) Drafts annual and final reports on the intervention implementation and, after approval by the Monitoring Committee, submits them to the Commission; h) Ensures transfer of all the necessary information on procedures and verifications performed in connection with the expenditures to the Paying and Certifying Authority for the purposes of confirmation; Operational Programme Prague – Adaptability 24 September 2007 99 i) Ensures compliance of the supported events with the Community policies; j) Ensures compliance with the information and publicity requirements (pursuant to Art. 69 of Council Regulation (EC) No. 1083/2006); k) Sets the management and control systems in compliance with the valid legislation of the Czech Republic and the EU and is responsible for the effective and correct functioning of the systems; l) Prevents, detects and corrects irregularities; m) Manages the activities of the Monitoring Committee and provides it with documents enabling it to monitor the quality of the implementation of the operational programme with respect to its specific objectives; n) Sets the procedures to ensure that all documents concerning expenditure and audits necessary to ensure the appropriate verification record are stored in compliance with the requirements of Art. 90 of Council Regulation (EC) No. 1083/2006; o) Ensures that the evaluation of the operational programme be implemented in compliance with the EU regulations (in particular in compliance with Art. 47 of Council Regulation (EC) No. 1083/2006). The OPPA Managing Authority is methodologically supported by the National Coordination Authority (NCA) which issues instructions and recommendations with the aim to effectively achieve fulfilment of all of the tasks required. The Managing Authority will ensure that the granted public contracts or licenses relating to project co-financed under the OPPA comply with the applicable national public procurement legislation which conforms to Directives 2004/17/EC and 2004/18/EC of the European Parliament and of the Council, Regulation (EC) No. 1564/2005, and the Treaty principles. The description of the management and control systems pursuant to Art. 71(1) of Council Regulation (EC) No. 1083/2006 and to Art. 21, 22 and 23 of Commission Regulation (EC) No. 1828/2006 will contain identification of an authority within the management structure which is responsible for decision-making on costs eligibility. 5.1.2 Paying and Certifying Authority To implement the intervention from the Structural Funds in the Czech Republic, the Ministry of Finance was authorised to perform the function of the Paying and Certifying Authority (PCA) for the Structural Funds pursuant to Czech Government Resolution No. 198 of 22 February 2006. Table 70 Paying and Certifying Authority Name Registered office National Fund Department, Ministry of Finance of the Czech Republic Letenská 15, 118 10 Prague 1 – Malá Strana, Czech Republic The PCA, pursuant to Art. 61 of Council Regulation (EC) No. 1083/2006, performs the following activities in particular: a) Administration of the funds provided from the SFs and CF on the accounts established with the Czech National Bank; b) Drawing up and submission of interim and final payment requests to the Commission for all programmes based on the statements of expenditure submitted by the Managing Authorities; Operational Programme Prague – Adaptability 24 September 2007 100 c) Reception of payments from the Commission; d) Based on a check of the summary requests submitted by the Managing Authorities, transfer of money from the SFs and CF to the income accounts of administrators of the various State budget chapters; e) Posting of accounting transactions for the PCA as part of the Ministry of Finance’s accounting unit; f) Maintenance of a system of financial reporting for the PCA’s funds; g) Certification of expenditure incurred and drawing up of a certificate of expenditure that is sent to the Commission together with an interim or final payment request; h) For the purposes of certification, verification of the correct functioning of the management and control system at all implementation levels; i) Performance of on-site inspections; j) Creation and updating of the methodological guidelines for the certification of the SF and CF expenditure and for the financial flows and checks of SFs and CF; k) Return of incorrectly reimbursed expenditure, including interest on them, to the Commission, unless a decision is made in compliance with the EC rules on their re-allocation within the programme in which the incorrect drawing occurred; l) Return of the unused funds to the Commission; m) Based on the estimates drafted by the Managing Authorities, submission of estimates concerning payment requests (expenditure forecasts) to the Commission for the current and subsequent year by 30 April, summarily for all Managing Authorities; n) Acting in compliance with the management control rules; o) Responding to the Commission’s comments and recommendations; p) Ensuring the concept and methodology for development of the IS VIOLA for performance of the PCA’s functions, including data communication with the SF monitoring system; q) Assessment of drawing of the SF and CF allocations, and monitoring of compliance with the n+2 (n+3) rule, respectively. 5.1.3 Audit Authority The Audit Authority (AA) was established pursuant to Art. 59 of Council Regulation (EC) No. 1083/2006 of 11 July 2006 laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No. 1260/1999 (hereinafter the “General Regulation”). Czech Government Resolution No. 198 of 22 February 2006 authorised the Ministry of Finance to perform the function of the Audit Authority for the SFs. Based on a decision by the Minister of Finance, the Central Harmonisation Unit for Financial Control of the Ministry of Finance, which is functionally independent of the Managing Authorities and the PCA, was assigned to perform the function of the Audit Authority for the SFs. Table 71 Audit Authority Name Registered office Ministry of Finance, Central Harmonisation Unit for Financial Control Letenská 15, 118 10 Prague 1 – Malá Strana, Czech Republic Operational Programme Prague – Adaptability 24 September 2007 101 In compliance with the requirements of the relevant EC and Czech legislation, the Audit Authority in particular: a) Ensures a preparedness audit of the programmes’ management and control systems; b) Submits to the Commission a report assessing the setting-up of the programme’s management and control systems, including an opinion on their compliance with the relevant provisions of the EC legislation, before the submission of the first interim payment request and no later than 12 months after the approval of the relevant programme; c) Submits to the Commission, within nine months after the approval of the relevant programme, an audit strategy including the entities that will perform the audits; d) Ensures the performance of an audit in public administration for the purpose of verifying the effective functioning of the programmes’ management and control systems; e) Annually submits to the Commission an updated audit strategy, a method of selecting samples for the audits of operations, and indicative audit planning ensuring the performance of audits of the main entities and even distribution of audits for the whole programming period; f) Annually submits to the Commission a consolidated plan for auditing of the funds provided from the SFs; g) Performs quarterly checks of the performance of the consolidated audit plan and informs the PCA about performance of such plan; h) Ensures that the PCA receives the results of all audits performed or authorised by the AA, for the purposes of certification; i) Ensures the performance of an audit in public administration on a suitable sample of operations for the verification of expenditure reported to the Commission; j) Ensures the methodological management of other audit entities involved in public administration audits in all programmes; k) Supervises the quality of audits in public administration performed by other audit entities for projects co-financed from the SFs; l) Contributes to the formation and updating of the methodological guidelines for the performance of audits in public administration of the programmes’ funds; m) Annually, from 2008 to 2015, submits to the Commission an annual control report containing the findings from audits performed during the previous year in compliance with the programme audit strategy, as well as shortcomings ascertained in the programmes’ management and control systems. The information on the audits performed after 1 June 2015 will be included in the final control report which is a source document for the declaration for closure; n) Issues annually an opinion for the Commission on whether the operation of the management and control systems provides a reasonable guarantee that the statements of expenditure submitted to the Commission are correct and that the related transactions are lawful and proper; o) Participates in audit missions of the Commission to verify aspects of the management and control system that resulted from the annual control report; p) Submits a declaration for partial closure in which it assesses the legality and regularity of the relevant expenditure pursuant to Art. 88 of the General Regulation; Operational Programme Prague – Adaptability 24 September 2007 102 q) Submits to the Commission, no later than by 31 March 2017, a declaration for closure in which it assesses the validity of the final payment request and the legality and regularity of the related transactions included in the final statement of expenditure; r) Co-operates with the Commission on the coordination of audit plans and audit methods, and exchanges the results of audits performed with it; s) Ensures that the internationally recognised audit standards be applied during audit activities; t) Performs an analysis of the reported irregularities for the purposes of drafting declarations for closure or partial closure; u) Annually drafts a report on the results of financial checks of the programmes for the Czech government. The AA is responsible for ensuring the above-mentioned activities and, whilst remaining responsible, it can delegate the selected activities to other audit entities. Only one level of authorisation to perform the above-mentioned activities is admissible (i.e. an audit entity cannot authorise another entity to perform the activities), under a public law contract. 5.1.4 National Coordination Authority Based on Resolution of the Government of the Czech Republic of 22 February 2006 (Resolution No. 198), the Ministry for Regional Development was assigned as the NSRF National Coordination Authority (NCA). The NCA as the central coordinator establishes a unified framework for implementation of operational programmes by the Managing Authorities. It supervises the Managing Authorities in order to ensure effectiveness and legality in management of operational programmes. The NSRF National Coordination Authority shall: a) Issue guidelines and methodologies in the areas of management, evaluation performance, collection and electronic data exchange, establishment and activities of monitoring committees; control and supervise all activities under the scope of operational programmes’ Managing Authorities; b) Monitor implementation of the NSRF and operational programmes and propose system solutions in case of slow programme implementation, objective implementation-limiting obstacles or violation of obligations arising from regulations; c) Ensure compatibility of implementation of the NSRF and OPs with national policies and EU priorities and compliance of interventions with the national and Community legislations, in particular in the area of competition, public procurement, environmental protection, disparities reduction, equal opportunities and non-discrimination principle, and propose suitable tools for their efficient implementation; d) Ensure setting up of a framework for the work of the NSRF Monitoring Committee; e) Draft the expenditure eligibility rules in co-operation with the PCA; f) Coordinate and draft reports submitted to the Commission; g) Ensure preparation of other reports, including the NRP, concerning additional funding from the SFs and the CF for the Lisbon Strategy; Operational Programme Prague – Adaptability 24 September 2007 103 h) Submit strategic progress reports pursuant to Art. 29 of Council Regulation (EC) No. 1083/2006; i) Ensure setting up of the basic criteria for project selection in order to fulfil the four NSRF strategic objectives; j) Establish and ensure operation of the integrated monitoring information system, which will be used by the Managing Authorities of all OPs, the Paying and Certifying Authority and the Audit Authority; ensure electronic exchange of documents and data; k) Perform tasks associated with general awareness about and publicity for implementation of economic and social cohesion policies; ensure planning, implementation and coordination of general awareness-raising activities and coordinate activities of Managing Authorities in this area; l) Prepare a communication strategy at the national level to ensure transparency of and full awareness about allocation of intervention from the SFs and the CF, with respect to the Lisbon Strategy objectives; m) Ensure activity of the evaluation working group whose members are, apart from the national coordinator, members of the Managing Authorities of operational programmes; n) Guarantee the flow of information from the Commission to all Managing Authorities and back; o) Create conditions for evaluation of efficiency of control mechanisms; p) Supervise compliance with the State Aid (and regional aid) rules amended by the relevant European and national regulations; q) Create a methodology for the setting up of indicators and monitoring of their fulfilment; r) Monitor fulfilment of the additionality rules and provide information to the Commission allowing for its verification, as specified under Art. 15 of Council Regulation (EC) No. 1083/2006; s) Participate in annual meetings of Managing Authorities of operational programmes and of the Commission, as stipulated under Art. 68 of Council Regulation (EC) No. 1083/2006; t) Ensure that the priorities specified under Art. 9(3) of Council Regulation (EC) No. 1083/2006 be reflected in implementation of the NSRF operational programmes; monitoring of the progress in their fulfilment. 5.1.5 Coordination Mechanisms of ESF Programmes In the programming period 2007-2013, financial intervention from the European Social Fund will be implemented through three operational programmes: OP HRE, OP EC and OPPA, i.e. the implementation will be ensured by three Managing Authorities – the Ministry of Labour and Social Affairs, the Ministry of Education, Youth and Sports, and the City of Prague. The interconnection and synergy of operational programmes co-financed from the ESF both from the content and time viewpoint will be ensured during their implementation based on cooperation and mutual coordination of activities, especially using the following mechanisms: a) Monitoring committees of the individual ESF programmes will be, as applicable, interconnected through representatives of the identical member organisations; Operational Programme Prague – Adaptability 24 September 2007 104 b) Managing authorities of the remaining two ESF programmes will be also represented in the individual monitoring committees; c) For the purpose of identification and solution of joint problems, a coordination group of the Managing Authorities of ESF programmes will be established; d) The central part of the MSC2007 monitoring system for the three operational programmes will be made accessible for viewing to the Managing Authorities to ensure mutual awareness about the implemented projects; e) The communication strategies of the individual operational programmes will include joint themes – e.g. unified visual identity elements (the ESF logo); the joint website of the ESF in the Czech Republic (www.esfcr.cz) created in the previous programming period will remain to be administered, etc.; f) The joint working groups established in the previous programming period, e.g. the Working Group for the Roma Community Affairs (this group was established as a joint working group by the monitoring committees of the OP HRE, SPD 3 and CIP EQUAL) or the Evaluation Working Group, will continue in their activities. In compliance with Government Resolution No. 159/1998, the MoLSA has been assigned the coordinator for the ESF. With respect to the competence of the MoLSA, the member of the ESF Committee on behalf of the Czech Republic will be the Deputy of the Managing Authority of the OP HRE. The alternate member in the following programming period will be the Deputy of the Managing Authority of the OP EC. The ESF coordination mechanisms will be fulfilled by joint preparation for the meetings of the ESF Committee, coordination of source documentation preparation, provision of follow-up information on the results and implementation of the tasks arising from the relevant meetings. The issues directly impacting the ESF affairs in the Czech Republic will be handled within the coordination group of the Managing Authorities of OP EC, OP HRE and OPPA. 5.2 Monitoring With respect to the effective management of programme implementation, the Managing Authority will monitor the progress of implementing the OPPA at the level of individual projects, priority axes and the programme as a whole, in relation to fulfilment of the global and specific objectives. The monitoring indicators specified in chapter 4 will be used to monitor the progress. To gather the necessary financial and statistical data at the project level, the Managing Authority will ensure the operation of a computer-based operations monitoring system. The purpose of the system is to: − Provide a tool for an effective programme administration; − Ensure the collection of material and financial data on project implementation; − Monitor fulfilment of the monitoring indicators at the level of the individual projects and priority axes of the programme; − Provide data for the evaluation of the programme (see chapter 5.3); − Ensure a data exchange with the central monitoring system and the payment systems. Operational Programme Prague – Adaptability 24 September 2007 105 5.2.1 Annual and Final Reports The OPPA Managing Authority is responsible for drawing up of the annual and final reports. The annual reports are sent to the Commission by 30 June of each year of the programme’s implementation, however, for the first time in 2008. The final report is sent to the Commission by 31 March 2017. Before sending the annual and final reports to the Commission, the reports will be discussed and approved by the Monitoring Committee. The annual and final reports contain the following information in order to provide an overview of the operational programme’s implementation: a) Information on the progress achieved when implementing the operational programme and the priority axes with respect to the specific and verifiable objectives, with a quantification, wherever possible, of the physical indicators and the implementation, result and impact indicators for the given priority axis; b) Information on the financial implementation of the operational programme; for each priority axis, the report specifies details of expenditure incurred by the beneficiary and the corresponding State Aid, the total payments received from the Commission, and quantification of the financial indicators pursuant to Art. 67(2) of Council Regulation (EC) No. 1083/2006; c) In the relevant cases, the information on financial implementation in areas receiving transitional aid is specified separately in the operational programme; d) Information on financial implementation by intervention areas received by the Commission pursuant to the procedure laid down in Art. 103(3) of Council Regulation (EC) No. 1083/2006; e) The steps taken by the Managing Authority and the Monitoring Committee to ensure quality and effectiveness of implementation, in particular: 1) Measures for monitoring and evaluation, including data gathering measures; 2) A summary of significant problems in implementation of the operational programme and all measures adopted, including response to comments made pursuant to Art. 68 of Council Regulation (EC) No. 1083/2006; 3) Use of technical assistance; f) Measures adopted to ensure the awareness about and publicity for the operational programme; g) Declaration of conformity with the Community law when implementing the operational programme, or a statement of all problems and measures to resolve them; h) The achieved state and the financing of major projects and global grants; i) Information on the rules that govern the granting of preferential financing in areas with a natural disadvantage; j) Use of support returned to the Managing Authority or other public authority during the implementation of the operational programme. 5.2.2 Computer Monitoring System Based on Council Regulation (EC) No. 1083/2006, requirements of the Commission for the monitoring of programmes co-financed from the EU funds, requirements of the National Coordination Authority, requirements of the Paying and Certifying Authority and based on Resolution of the Government of the Czech Republic No. 198/2006, the Monitoring System Operational Programme Prague – Adaptability 24 September 2007 106 Central (MSC2007) was prepared as at 1 January 2007. MSC2007 will be used by the Managing Authority for an effective monitoring of the progress in implementation of the OPPA projects and as a programme management tool. The system will be also used by the Paying and Certifying Authority and other entities in the implementation structure. The monitoring system’s IT solution is based on the solution used in the programming period 2004-2006. Based on the experience gained during the implementation of projects, the system is modified and new monitoring, management and evaluation tools are incorporated into it. The monitoring system will provide for monitoring of the following activities: § Drawing of funds from the relevant European funds; § Drawing of the national co-financing funds; § Monitoring, evaluation and controlling activities; § Communication with the Commission – the SFC2007 database and other databases; § Provision of data for the Commission’s standard monitoring table; § Data monitoring at the beneficiary level; § Connection to the relevant public administration systems; § Fulfilment of the monitoring indicators (fulfilment of the defined objectives). The monitoring system consists of the following levels. Users at all levels will access the monitoring system via the Internet. Data will be regularly transmitted among all of the system’s levels. Figure 72 Scheme of the system for monitoring of the structural operations in Prague European Commission SFC2007 CEDR MfRD MoF MSC2007 VIOLA ISPROFIN City of Prague Monit2007 Ginis Beneficiary Benefit7+ Source: FEU, Prague City Hall SFC2007 Joint database of the Structural Funds of the Commission. Based on the Commission’s requirements, the transmission is based on the MSC2007 interface which is operated by the NCA. MSC2007 MSC2007 represents the central level of the monitoring system for the Managing Authorities, NCA and PCA operated on the equipment of the Ministry for Regional Development. Operational Programme Prague – Adaptability 24 September 2007 107 Development, operation, maintenance and user support are provided by the Monitoring System Administration Department of the MfRD. The system allows for the physical and financial monitoring of programmes and projects at the central level, performance of financial flows and electronic data exchange with the subordinated levels of the information monitoring system, with the information systems of the Ministry of Finance (especially with the Viola, CEDR and ISPROFIN systems) and with the Commission’s database SFC2007. Monit2007 The Monit2007 level of the information system will be used for the programme management and project administration. The Managing Authority is responsible for administration of the relevant part of the Monit7+ monitoring system. The Managing Authority also provides up-to-date information on the state of the programme and the projects all the way through the implementation of the programme and the individual projects. The Monit2007 system is connected to the accounting system of the City of Prague (Ginis). Benefit7+ The purpose of Benefit7+ is to support the performance of the monitoring system of the Czech Republic at the beneficiary level. Benefit7+ is a beneficiary’s web account used for submission of application forms and for all data communication between the Managing Authority and the beneficiary. The web-based application will be operated at one central point (in the MfRD’s technical infrastructure) including the transmission of data from the web-based application and the Monit2007 system. The uniform monitoring system should start operating on 1 January 2009 (pursuant to Government Resolution No. 198/2006). This system will be interconnected from the data and software viewpoints and will replace the current three-tier monitoring system. The uniform monitoring system will be pilot-tested during the year 2008 and its launch is planned for 1 January 2009. The Managing Authority will be responsible for the provision of data from the current levels of the SF monitoring system in the relevant structure, form and on the defined dates (ensuring thus compliance with the Commission’s requirement for transmission of all the necessary information in a uniform format). 5.2.3 Joint Monitoring Committee With the aim to ensure synergy and interconnection during implementation and monitoring, the Joint Monitoring Committee (JMC) will be established for the purposes of the OPPA and the OPPC. The JMC will be established no later than three months after the approval of the operational programme based on a proposal by the Managing Authority. The JMC will be established following consultations with the relevant social and economic partners and whilst respecting the principle of balanced representation of men and women. The JMC is set up based on the partnership principle and consists of representatives of the partner Managing Authorities, representatives of the City of Prague, representatives of other partners, including social partners, and representatives of the Paying and Certifying Authority. The number of members of the JMC and its competences are laid down in its Statutes and the Rules of Procedure. When appointing the members of the individual entities represented, the principle of equal representation of men and women will be taken into account, where possible. The members of the JMC are appointed by the Council of the City of Prague based on proposals made by the individual bodies and social partners. The meetings of the JMC are attended by a representative of the Commission, as a guest. Operational Programme Prague – Adaptability 24 September 2007 108 Pursuant to Art. 65 of Council Regulation (EC) No. 1083/2006, the Joint Monitoring Committee shall, in particular: a) Consider and approve the criteria for the selection of operations financed from the operational programmes within four months after the operational programme’s approval. The selected criteria shall be reviewed according to the programme needs; b) Regularly review the progress made towards fulfilment of the operational programme’s specific objectives based on the documents submitted by the Managing Authority; c) Verify the results of implementation, in particular the achievement of the objectives set for each priority axis, and evaluation; d) Consider and approve the annual and final implementation reports before sending them to the Commission; e) Be informed about the annual control report and all potential comments of the Commission after the report is reviewed; f) Upon the request by a Member State, be informed about the annual report pursuant to Art. 67 of Council Regulation (EC) No. 1083/2006; g) Be able to propose to the Managing Authority any modifications to or reviews of the operational programme that could facilitate the achievement of the objectives of the funds specified in Art. 3 of Council Regulation (EC) No. 1083/2006 or improve its management, including financial management; h) Consider and approve all proposals to amend the content of the Commission’s decision on the contribution from the funds. Table 73 Indicative composition of the Joint Monitoring Committee Institution Prague City Council Prague City Assembly OPPA Managing Authority OPPC Managing Authority Ministry of Labour and Social Affairs Ministry of Education, Youth and Sports Ministry for Regional Development – NCA Ministry of Finance – PCA Ministry of Finance – AA Ministry of Transport Ministry of the Environment Ministry of Industry and Trade Czech Statistical Office Economic Chamber Professional education institutions Universities NGOs Equal opportunities Research and development Employers Trade unions Municipal districts of the City of Prague European Commission (DG Employment, DG Regio) Number of members 1 4 1 1 1 1 1 1 1 1 1 1 1 1 2 1 2 1 1 1 1 2 2* Note: * guests Operational Programme Prague – Adaptability 24 September 2007 109 5.3 Evaluation The OPPA is evaluated pursuant to the obligations specified in Art. 47 through 49 of Council Regulation (EC) No. 1083/2006, pursuant to the Commission’s methodological guidelines and pursuant to the NCA’s guidelines. The Managing Authority will be responsible for organisation of the whole evaluation process. It will be responsible for drafting of the brief for the evaluation, for selection of independent external advisors, and for monitoring of the performance of the evaluation tasks. The results of the individual evaluations will be publicly accessible in a manner providing for transparency of the programme implementation and the transfer of the experience gained. The aim of the evaluation, in connection with Art. 47(1) of Council Regulation (EC) No. 1083/2006, is to increase the quality and effectiveness of the intervention provided from the EU funds and its consistency with the objectives of the EU and the Czech Republic; to improve the strategy and to make the implementation of the operational programme more effective; to review the specific structural problems in the Czech Republic and sustainable development in relation to the subject of the OPPA. Pursuant to Art. 48(2) and (3) of Council Regulation (EC) No. 1083/2006, this includes: − Ex-ante evaluations; − Ongoing evaluations, ad-hoc evaluations during the implementing period based on the monitoring findings (deviations from the objectives, review requirements, etc.); − A summary evaluation for the strategic reports pursuant to Art. 29(2) of Council Regulation (EC) No. 1083/2006. 5.3.1 Ex-ante Evaluations The Managing Authority ensures the performance of ex-ante evaluations as a process parallel to the drafting of the operational programme. The aim of the ex-ante evaluation is to improve the quality of programming. The evaluation determines and assesses the medium-term and long-term needs, objectives to be achieved, the expected results, the quantified objectives, or cohesion of the strategy proposed for the region, the Community’s added value, the extent to which the Community’s priorities are respected, the findings from the previous programming and the quality of the procedures of implementation, monitoring, evaluation and financial management. A summary of the ex-ante evaluation performed for the OPPA is included in chapter 3.6. 5.3.2 Ongoing and Ad-hoc Evaluations Ongoing evaluations will be performed for the purposes of managing the programme and evaluating the course of implementation. The aim of these evaluations is to assess the previous development in implementation of the operational programme with respect to its objectives and its compliance with the Community Strategic Guidelines and the National Strategic Reference Framework. The evaluation results are discussed by the programme’s Monitoring Committee. The ongoing evaluation outputs can be used for the preparation of annual reports on the implementation of the National Reform Programme and also in 2009 and 2012 for the preparation of reports pursuant to Art. 29(2) of Council Regulation (EC) No. 1083/2006. Should the results of the operational programme monitoring during its implementation reveal significant deviations from the objectives set in the programme, the Managing Authority will Operational Programme Prague – Adaptability 24 September 2007 110 perform an ad-hoc evaluation of the programme with the aim to identify the causes and to propose a solution for the programme’s further implementation. The results of the ad-hoc evaluation will be discussed by the programme’s Monitoring Committee and sent for information to the European Commission. 5.3.3 Ex-post Evaluations Performance of an ex-post evaluation is under the responsibility of the Commission in cooperation with the Managing Authority which will arrange for the collection of the necessary data. The ex-post evaluation will include all the operational programmes for the relevant objective and examine the extent to which resources were used, the practicality and efficiency of fund programming, the socio-economic impact and the impact on the Community’s priorities. The ex-post evaluation will be completed by 31 December 2015. Apart from the above-mentioned activities, parts of the OPPA will be evaluated within evaluations performed by the NCA (in compliance with the NCA’s Evaluation Plan) and the Commission. The Managing Authority will provide full co-operation during performance of these evaluations. 5.3.4 Evaluation Procedures The OPPA’s evaluation obligations include: − Drafting, implementation, updating and evaluation of the evaluation schedule (in connection with the Evaluation Plan for the Czech Republic created by the NCA); − Provision for ex-ante, ad-hoc, ongoing and strategic evaluations; − Provision of funds and data for evaluations performed and organised by the NCA, in particular for strategic reports in 2009 and 2012, for the ex-post evaluation performed by the Commission, and the ex-ante evaluation in 2014+; − Active co-operation with the evaluators at the national level (with the NCA’s Evaluation Unit) and at various levels of the OPPA implementation and at various levels of implementation of the Structural Funds and the Cohesion Fund in the Czech Republic; − Publishing of the evaluation results pursuant to the requirements of Art. 47(3) of Council Regulation (EC) No. 1083/2006. 5.4 Financial Management The system of financial flows is described in the “Methodology for Financial Flows and Controls of the Structural Funds, the Cohesion Fund and the European Fisheries Fund for the Programming Period 2007-2013”, issued by the Ministry of Finance. The Ministry of Finance administers the funds provided by the Commission to finance the programmes of the Structural Funds and the Cohesion Fund. Funds from the European Social Fund will be sent by the Commission to the Paying and Certifying Authority’s account. Within the Paying and Certifying Authority, the resources from the Structural Funds and the Cohesion Fund are managed by the Financial Management and Payments Methodology Department, which will also perform transfers of money from the Structural Funds and the Cohesion Fund to the State budget. Operational Programme Prague – Adaptability 24 September 2007 111 The OPPA financial flows system is ensured through a flow of funds from the State budget. The monies for the beneficiaries, corresponding to the amounts of funding from the EU funds, will be provided from the State budget chapter of the Ministry for Regional Development. This expenditure will then be refunded to the Ministry for Regional Development from the ESF funds sent by the Commission to the account of the Paying and Certifying Authority. The Ministry for Regional Development will provide the resources corresponding to the amounts of funding from the EU funds to the City of Prague which will make them available to the OPPA beneficiaries based on the submitted requests. The requests will be submitted only in CZK. The relationships between the State budget and the budget of the City of Prague are under the responsibility of the Ministry for Regional Development. System of the Structural Funds financial flows Payments to the beneficiaries will be made in the form of ex-post payments (reimbursement of the already incurred expenditure to the beneficiary), or ex-ante payments (in the form of advance payments provided for project implementation from Prague’s budget). The decision on the form of payments to the beneficiaries within the OPPA will be made by the City of Prague. 1. Based on the incurred expenditure1 the beneficiary issues a request for the reimbursement of funds from the budget of the City of Prague (corresponding to the EU contribution and the contribution from the national public resources); such request is submitted to the Managing Authority for review and approval; 2. The Managing Authority approves the beneficiary’s request and instructs the financial unit of the City of Prague to make the payment to the beneficiary’s account (the function of the financial unit is assigned to the Accounting Department of the Prague City Hall which is responsible for financial issues, while the EU Funds Department performing the function of the Managing Authority is responsible for the external relations); 3. The financial unit of the City of Prague makes the payment from Prague’s budget to the beneficiary’s account; 4. Based on payments made from Prague’s budget, the Managing Authority issues a summary request for payment of funds from the Structural Funds from the account of the Paying and Certifying Authority to the relevant State budget chapter; 5. The Paying and Certifying Authority checks the submitted summary request, settles it (the decisive date for determination of the exchange rate for conversion of funds from CZK to EUR is the date of settlement by the Paying and Certifying Authority) and then transfers the money from the Structural Funds to the relevant State budget chapter; 6. After certification, the Paying and Certifying Authority asks the Commission to replenish its account; 7. The Commission approves the request and sends the money to the Paying and Certifying Authority’s account. 1 In case payments to beneficiaries are made ex-ante, the beneficiary submits a declaration of expenditure from the funds provided by the City of Prague as part of its request for the reimbursement of funds from the State budget. Operational Programme Prague – Adaptability 24 September 2007 112 5.5 Financial Control System The Ministry of Finance as the central administration authority for financial control pursuant to the relevant provisions of Act No. 2/1969 Coll., on Establishment of Ministries and Other Central State Administration Bodies of the Czech Republic, as amended, methodologically manages, coordinates and ensures the performance of financial control within the operational programme. The current Czech and EC legislation is the starting point for the issuance of partial methodological guidelines which are consulted with the relevant bodies of the Commission. In the control system, the system of control in public administration and management controls must be clearly separated from the system of internal audits and audits in public administration. 5.5.1 Controls in Public Administration The Managing Authority is responsible for the management and implementation of the operational programme in compliance with the principle of proper financial management, and therefore makes sure that operations are chosen for financing in compliance with the criteria for the operational programme and that they are implemented in compliance with the relevant Community and national legislation throughout their duration. The MA ensures the performance of controls within the primary system by verifying the delivery of the co-financed products and services and the actually incurred expenditure for operations reported by the beneficiaries. The MA ensures the existence of a system for recording and storing accounting records in an electronic form for each operation, and collection of data for audits. The MA’s task is also to ensure that the procedures and all documents concerning expenditure and audits of the operational programme be available to the Commission and the European Court of Auditors for three years after the closure of the operational programme. 5.5.2 Internal Control System All authorities participating in implementation of the operational programme will have the necessary management and control system that will be in compliance with national legislation and able to timely identify administrative, system or intentional errors, and to create conditions for preventing generation of errors. Management controls Management controls are performed by the responsible managers. They form part of the internal management of all entities involved in the operational programme’s implementation, the preparation of operations before their approval, the ongoing monitoring of operations until their final settlement, and the final settlement, billing and subsequent verification of the selected operations within the evaluation of results achieved and the correctness of the financial management. Operational Programme Prague – Adaptability 24 September 2007 113 With respect to the principles of an efficient and effective management and control system in the course of implementation of the programme, it will be ensured that: a) Specific functions are clearly defined for all entities involved in the management and control of the programme, both within the whole implementation system and within each entity separately; b) The principle of separation of payment, management and control functions between the individual entities involved in programme implementation and within the entities as such is complied with; c) There are clear procedures ensuring the correctness and eligibility of the expenditure reported in the programme; d) There are reliable accounting systems, monitoring systems and financial reporting systems; e) There is a system for submitting reports on the implementation of the programme, projects and monitoring; f) Measures are adopted for performing an audit of the performance of the management and control system; g) The systems and procedures ensuring source documents for an audit (an audit trail) are introduced and defined; h) There are procedures for reporting and monitoring of any irregularities, and for recovering the amounts paid out in an unjustified manner. For each level of management and implementation of the programme, an internal control system manual will be drafted in the form of managed documentation that will contain a detailed description of working procedures for the activities performed. Internal audit The Internal Audit Unit (of the Chief Executive’s Office Department of the Prague City Hall) is functionally independent and organisationally separated from the OPPA’s management and executive structures and will be subordinated to the Chief Executive of the Prague City Hall. The Internal Audit Unit checks the internal control system at regular intervals. Its activities includes, among other things, checks of the performance of the basic requirements for the internal control system. An important part of its work is also the delivery of recommendations for enhancing the quality of the internal control system, for preventing or mitigating risks and for taking measures to remedy the identified shortcomings, and consultations. Reports on the internal audits performed regularly at the various levels of implementation will be submitted to the relevant public administration management body. A uniform approach to the audit at all levels of implementation and the reporting of audit findings will constitute the basis for risks management at the Managing Authority level. 5.5.3 Audits in Public Administration The AA is responsible for performing audits in public administration (secondary and central system) at all levels of utilisation of funds from the operational programme, pursuant to Act No. 320/2001 Coll., on Financial Control in Public Administration and on Amendment to Certain Acts, as amended, and pursuant to the directly applicable legislation of the European Communities. Within the secondary system, it also checks the efficiency of the financial management and control system and subsequently tests the correctness of the risk transactions in compliance with the permissible risk level for the primary system area. Within the central Operational Programme Prague – Adaptability 24 September 2007 114 system, the AA, based on the residual risk, verifies and assesses the adequacy and efficiency of operation of the primary and secondary systems and audits a sample of the operations. 5.5.4 Controls by the Supreme Audit Office The Supreme Audit Office is entitled to perform independent control activities within the meaning of the relevant provisions of Act No. 166/1993 Coll., on the Supreme Audit Office, as amended. 5.5.5 Audit Activities Performed by the European Commission’s Bodies and the European Court of Auditors The Commission will make sure that management and control systems have been introduced to the operational programme and work well in compliance with Art. 72(1) of Council Regulation (EC) No. 1083/2006. This audit is performed by the Commission based on the annual control reports, the Audit Authority’s opinion on the reports, and based on its own audits. With the purpose of protecting the EU’s financial interests, the European Anti-Fraud Office performs on-site inspections in order to fight against frauds, corruption and any other illegal activities. Within its competences, the European Court of Auditors performs independent and separate controls resulting from its remit. 5.5.6 Irregularities All bodies participating in the implementation of the operational programme are obliged to report any suspected irregularities to the MA. The MA investigates the suspicions and refers those that prove to be justified, based on the control findings, to the relevant bodies in order to initiate administrative or court proceedings. The reports by the control bodies must be always considered justified. At the same time, the MA is responsible for reporting the justified suspicions to entities involved in the external reporting level. The MA is obliged to provide information about the irregularities pursuant to the provisions of Section 4 of Commission Regulation (EC) No. 1828/2006. The MA will send the reports to the European Anti-Fraud Office and to the Attorney’s General office, and for information also to the AA and the PCA. 5.6 Basic Principles of Project Selection With respect to the experience gained in the programming period 2004-2006, the size of the financial allocation for the programme and from the viewpoint of management transparency and effectiveness, the following implementation system is applied. The funds are allocated to the projects using the following two distribution mechanisms: − Direct allocation: The funds for individual comprehensive projects (projects whose nature globally deals with some of the activities of the programme and whose character requires Operational Programme Prague – Adaptability 24 September 2007 115 that they be ensured in a uniform manner throughout Prague, i.e. this mostly applies to projects of a systematic character) will be provided by direct allocation to the pre-defined beneficiaries; comprehensive projects can be implemented as public contracts announced by the beneficiary; the funds for technical assistance projects will also be provided by direct allocation – the Managing Authority will be the beneficiary; − Grants: Grants will be used to provide funds for implementation of individual grant projects while the programme only defines a group of potential beneficiaries; the beneficiaries can implement the grant projects with their own resources, by delivering services and/or by a combination of the previous two tools. Programme partnerships will be set up to coordinate the factual focus of the grants and the comprehensive projects. The following will be represented in the programme partnerships: the Managing Authority, designated beneficiaries, social and economic players and NGOs. Figure 74 Simplified OPPA implementation scheme Managing authority Capital City of Prague FEU, ESF Dept. Direct allocation Designated beneficiaries Capital City of Prague Calls for proposals Beneficiaries Indiv. comprehensive projects Individual grant projects Direct allocation Managing authority Capital City of Prague FEU Tech. assist. projects 5.7 Information and Publicity The OPPA’s information activities and publicity will be performed pursuant to Art. 69 of Council Regulation (EC) No. 1083/2006 and with the procedures and principles stipulated in chapters I through III of the Implementing Regulation (EC) with the aim to ensure a maximum degree of transparency in drawing of funds for this programme and to inform the widest possible public. These activities will be financed under the OPPA priority axis 4 “Technical assistance”. Ensuring the publicity and dissemination of information about the OPPA will take place in coordination with other programmes drawing of the Structural Funds in the Czech Republic. Strong co-operation in the area of information and publicity will be established with other programmes drawing of the European Social Fund. The communication strategy of OPPA, OP HRE and OP EC will include joint themes (e.g. unified visual identity elements such as the ESF logo, administration of the joint website of the ESF in the Czech Republic, joint annual conferences to present the results of the programmes under way). Information and Operational Programme Prague – Adaptability 24 September 2007 116 publicity activities will also be performed in co-operation with the Commission which will be regularly informed by the annual OPPA implementation reports about the measures adopted in this area. 5.7.1 Communication Plan and Experience Exchange Pursuant to Art. 2 of the Commission Regulation (EC) No. 1828/2006, the Managing Authority will prepare an OPPA Communication Plan no later than four months after the approval of the programme. The Communication Plan will be a joint document for the Operational Programmes Prague – Adaptability and Prague – Competitiveness. The Communication Plan (CP) will contain information on: • The plan’s objectives and target groups; • The strategy and focus of the information and publicity activities (these measures will be taken with respect to the added value of the EU intervention at the national, regional and local levels); • The financial plan of the CP; • The entity responsible for implementation of the information and publicity activities; • The procedure for evaluation of the information activities and publicity with respect to the criteria of transparency, awareness of the OPPA and informing about the EU’s role in the programme. The Managing Authority will ensure that the CP implementing tools correspond to the information needs contained in the plan. The Managing Authority will regularly inform about progress in implementation of the CP. Annual reports and the final report on implementation of the OPPA will contain examples of information and publicity measures implemented. The 2010 annual report and the final report will also contain an evaluation of such activities. The subject and reason for any amendment to the OPPA’s CP will be explained in detail in the annual report. The Commission will be informed about the persons (person) whom the Managing Authority appoints as responsible for the implementation of the OPPA information activities and publicity. Within the network of such representatives, the Managing Authority will co-operate with the Commission with the aim of ensuring an exchange of experience with implementation of the CP and, in particular, an exchange of best practice. 5.7.2 Publicity for Potential Beneficiaries In compliance with the CP, the Managing Authority will ensure that the information about opportunities to obtain intervention from the Community funds and the national and regional funds of the Czech Republic through the OPPA is transmitted to the widest possible public. OPPA publicity will always contain information about the EU contribution share, the involvement of the European Social Fund, and will be performed with the aim of ensuring maximum accessibility of information to all stakeholders. The Managing Authority shall ensure that potential beneficiaries receive clear and transparent information, in particular about: • The applicable eligibility rules for the OPPA; Operational Programme Prague – Adaptability 24 September 2007 117 • • • The applicable procedures and the duration of the evaluation of applications from the programme; The criteria for the selection and evaluation of the applications; Contact details of the entities providing information about the programme at the national, regional or local levels. The Managing Authority will co-operate with the local and regional public administration bodies, trade union associations, economic and social partners, NGOs, representatives of the business sector, EU information centres and the Commission’s representation in the Czech Republic in information and publicity activities. 5.7.3 Public Awareness Together with the OPPA beneficiaries, the Managing Authority will inform the public about the supported operations and the progress in their implementation. Information activities will be implemented with the help of all suitable communication forms and methods, with respect to the regional validity of the OPPA and in compliance with the CP. The Managing Authority will attempt to obtain the widest media coverage possible and, in compliance with Art. 7 of the Implementing Regulation (EC), it will ensure, among other things: • An information campaign about the launch of OPPA implementation; • Information about the programme’s interim results once a year; • Publication of a list of beneficiaries, including the titles of the operations supported and the amount of public funding. Pursuant to Art. 8 of the Implementing Regulation (EC), the beneficiaries will be obliged to provide information about the intervention obtained from the European Social Fund in a manner specified in Art. 8 and 9 of the above-mentioned regulation. The implementation structure authorities, too, will act in compliance with Art. 9 of the Implementing Regulation (EC) when implementing the information and publicity activities, i.e. they will use the European flag in the prescribed format and refer to the European Social Fund using the phrase: “European Union: European Social Fund”. 5.8 Electronic Data Exchange with the European Commission Electronic data exchange with the Commission’s SFC2007 system is ensured by a transfer from the MSC2007 database using a technical interface and Internet services within the extent specified by Council Regulation (EC) No. 1083/2006 and Regulation No. 1198/2006. A special module was created in the MSC2007 database allowing for data authorisation by entities responsible for management and coordination of the EU funds programmes. This module generates and exports the validated data of the Managing Authorities, the Paying and Certifying Authority and the NCA through the Internet services to the Commission’s SFC2007 database. The module meets the Commission’s eGovernment requirement. Operational Programme Prague – Adaptability 24 September 2007 118 6 FINANCIAL PLAN The financial framework is based on the National Strategic Reference Framework, in compliance with the conclusions of the European Council meeting of 15-17 December 2005 when the total allocation proposed for the Czech Republic for the Regional Competitiveness and Employment Objective was increased by EUR 200m (Council conclusions paragraph 46b). Therefore, in 2004 prices, the total amount of EUR 372m was allocated to the City of Prague region. In current prices (using a fixed deflator by 2% a year pursuant to item 16 of the Interinstitutional Agreement), the total allocation available for the Regional Competitiveness and Employment Objective is EUR 419.1m. A part of the funds for the Regional Competitiveness and Employment Objective is allocated to multi-objective operational programmes of the Convergence Objective. The allocation for the OP Prague – Adaptability from the EU budget is EUR 108.3m in current prices. 6.1 EU Funds Contribution Table 75 Financial plan in terms of annual allocations from the individual Structural Funds (in EUR, current prices) 2007 2008 2009 2010 2011 2012 2013 Total 2007-2013 Structural Funds (ESF) 1 14,579,111 14,870,693 15,168,107 15,471,469 15,780,898 16,096,517 16 418 447 108,385,242 Cohesion Fund 2 0 0 0 0 0 0 0 0 Total 3=1+2 14,579,111 14,870,693 15,168,107 15,471,469 15,780,898 16,096,517 16,418,447 108,385,242 The NUTS 2 region – the City of Prague – is not a region eligible for specific and transitional financing from the Structural Funds pursuant to Art. 3(2) of Council Regulation (EC) No. 1083/2006. Operational Programme Prague – Adaptability 24 September 2007 119 Fund/cofinancing rate 108,385,242 7,309,425 5,578,245 5,578,245 660,892 c d 0 127,512,049 0 48,729,498 0 37,188,301 0 37,188,301 0 4,405,949 d=a+b National Total funding National private public funding funding 19,126,807 19,126,807 7,309,425 5,578,245 5,578,245 660,892 b(=c+d) a 41,420,073 31,610,056 31,610,056 3,745,057 National resources Community funding 85% 85% 85% 85% 85% e=a/d Co-financing rate 1,500,000 0 0 0 Other sources 0 1,500,000 EIB For information Operational Programme Prague – Adaptability 24 September 2007 120 The national co-financing of the operational programme from public funds is expected to be 7.5% from the Czech State budget and 7.5% from the budget of the City of Prague. Notes: Numbers of the priority axes in this table (unlike in the text of the operational programme) comply with their numbers in the national information system MSC2007 where the OPPA was assigned the serial number 17; the system automatically generates numbers to all priority axes. Total 1 Support to development of knowledge-based economy ESF/public 2 Support to entry onto labour market ESF/public 3 Modernisation of initial education ESF/public Technical assistance ESF/public 4 Priority Priority axis title axis numbe r Indicative breakdown of national funding Table 76 Financial plan by resources and priority axes (in EUR, current prices) 6.2 Programme Budget by Priority Axes 6.3 Indicative Breakdown of the Community Contribution by Category Table 77 Indicative breakdown of the Community contribution by category (in EUR) Theme 1 Priority Theme Code Amount 62 68 69 71 72 73 74 85 86 Total Theme 2 Form of financing Code Amount 01 26,160,000 7,620,073 4,360,056 27,250,000 18,530,000 8,720,056 12,000,000 2,808,700 936,357 108,385,242 Total Operational Programme Prague – Adaptability 24 September 2007 Theme 3 Territory Code 108,385,242 108,385,242 01 Total Amount 108,385,242 108,385,242 121 7 DEFINITIONS OF TERMS USED Term Definition Addicts and persons at Persons who cannot get by without a certain substance (alcohol, drugs) or activity (e.g. gamblers) or people who are in an environment that could induce risk of addiction such an addiction. Business entities Disadvantaged persons E-government Employees Employers Ethnic minorities Initial education Intervention A business entity is a person involved in independent gainful activity or a legal entity established for the purpose of doing business (i.e. a trading company), including small and medium-sized enterprises. The types of commercial companies are: general commercial partnership, limited partnership, limited liability company and joint stock company. Disadvantaged persons is an aggregate term that includes members of ethnic minorities, the long-term unemployed, young people under 25, young people leaving institutional facilities, the low-qualified, victims of criminal activity, persons without shelter, persons caring for a dependent family member, persons having completed sentence, addicts and persons at risk of addictions, persons over 50 and the disabled. The use of information and communication technology in public administration in combination with organisational changes and new skills for the purpose of improving the services provided, developing democratic processes and strengthening support for public policies. Employees are persons who are in a labour law or service relationship, provided they perform work for more than half the set weekly working hours and their monthly earnings are more than half the minimum wage, or, in the event they perform activities based on agreements on work done outside an employment relationship, provided the monthly wage or average monthly wage is higher than half the minimum wage. An employer is a legal entity or person involved in independent gainful activity that employs individuals in labour law relations (or in similar relations – e.g. work relationships between a co-operative and its members). Employers act on their own behalf in labour law relationships and have the responsibilities resulting from such relationships. Members of ethnic minorities, including the Roma communities and persons from a different socio-cultural environment. Initial education pursuant to Act No. 435/2004 Coll., on Employment, as amended, includes all professional preparation at schools before starting work experience which is part of the mandatory school curriculum and systemic preparation for future profession. Any activity financed from a project budget that benefits the target groups. Intervention can have the form, for example, of an educational or requalification course, internship, specialist consultations, advice, training, education, work experience, etc. Job seekers In accordance with S. 24 of Act No. 435/2004 Coll., on Employment, as amended, a job seeker is an individual who personally asks the labour office in whose administrative area he or she resides to arrange a suitable job and meets the statutory conditions to be entered into the records of job seekers. Large enterprises Large enterprises are enterprises that do not meet the definition of a micro, small or medium-sized enterprise set out in Commission Regulation (EC) No. 364/2004 of 25 February 2004. Long-term unemployed The long-term unemployed are job seekers in accordance with S. 24 et seq. of Act No. 435/2004 Coll., on Employment, as amended, where long-term unemployment is defined as unemployment lasting more than 6 months for persons under 25 and longer than 12 months for persons over 25. Operational Programme Prague – Adaptability 24 September 2007 122 Non-governmental organisations NGOs are civic associations under Act No. 83/1990 Coll., on Association of Citizens, as amended, benevolent societies under Act No. 248/1995 Coll., on Benevolent Societies, as amended, religious legal entities under Act No. 3/2002 Coll., on Freedom of Religious Belief and Position of Churches and Religious Societies (Churches and Religious Societies Act), as amended, foundations and endowment funds under Act No. 227/1997 Coll., on Foundations and Endowment Funds (the Foundations and Endowment Funds Act), as amended, and special interest associations of legal entities, provided such entities are the above-mentioned NGOs. This concerns, for example, single parents and persons caring in the long-term for a dependent family member or partner. Persons caring for a dependent family member Persons having served Persons having served sentence of imprisonment or alternative punishment, sentence including persons leaving a facility for serving sentence. Persons interested in Persons who declare their interest in starting business activities of their own. doing business Persons interested in A person interested in employment in accordance with S. 22(1) of Act No. 435/2004 Coll., on Employment, as amended, is an individual interested in employment the arrangement of employment who asks any labour office in the Czech Republic to include him or her in the records of persons interested in employment for this purpose. Persons who have Persons who have not completed full secondary education. prematurely left the educational system Persons without shelter Product Professional and special interest association Professional workers in education Public administration Pupils Schools Small and mediumsized enterprises Persons without shelter, homeless people and persons residing in asylum houses. An aggregate term used for all forms in which support is provided to target groups, e.g. an educational programme, course, methodology, curriculum, school educational programme, e-learning product, re-qualification module, integration procedures, educational aids created and innovated, etc. Professional organisations related to professional work, consumer associations, special interest associations (e.g. gardeners’ associations, fishermen’s associations, etc)., associations of businesses and production cooperatives, etc., the Economic Chamber and the Agrarian Chamber of the Czech Republic established under Act No. 301/1992 Coll. Persons employed in schools in the field of management, etc. Public administration shall be understood to include central state administration bodies and local authority bodies, including organisations established by such bodies, the Academy of Sciences of the Czech Republic established under Act No. 283/1992 Coll., as amended, and public research institutions under Act No. 341/2005 Coll., on Public Research Institutions, or other entities established by the law. Persons accepted for studies at an elementary school. Elementary, secondary and higher specialised schools, including secondary vocational schools (in accordance with Act No. 561/2004 Coll., on Pre-school, Elementary, Secondary, Higher Specialised and Other Education, as amended) and universities (in accordance with Act No. 111/1998 Coll., on Higher Education, as amended). Small and medium-sized enterprises are defined in Commission Regulation (EC) No. 364/2004 of 25 February 2004. A sole trader is regarded as a micro, small or medium enterprise if it employs fewer than 250 employees and the balance sheet assets do not exceed the CZK equivalent of EUR 43m, or its turnover in the last fiscal year does not exceed the CZK equivalent of EUR 50m. Operational Programme Prague – Adaptability 24 September 2007 123 Social service providers NGOs, organisations established by boroughs, organisations established by public administration bodies, boroughs providing people in an unfavourable social situation with support in social inclusion and protection from social exclusion with the aim of enabling them to get involved in the ordinary life of society and take advantage of other systems in the usual manner. Students Persons studying at a higher specialised school or university. Teaching staff The disabled Persons who perform teaching activities at schools, including academic staff. The disabled are, in accordance with S. 67 of Act No. 435/2004 Coll., on Employment, as amended, individuals who are recognised by a social security authority as being fully disabled (persons with a serious disability), partially disabled, or health disadvantaged. This concerns persons with physical, mental and combined disabilities and the mentally ill. The low qualified The self-employed Persons who have completed no more than elementary education. The self-employed are persons who are involved in an independent gainful activity where the person involved in the independent gainful activity is an individual who, for the purposes of pensions insurance in accordance with S. 9 of Act No. 155/1995 Coll., on Pension Insurance, is regarded as a person involved in an independent gainful activity. Unemployed people are job seekers in accordance with S. 24 et seq. of Act No. 435/2004 Coll., on Employment, as amended. This group includes victims of criminal activity, victims of domestic violence and commercially abused people, including victims of human trafficking (e.g. prostitution, exploitation). The unemployed Victims of criminal activity Workers in social services Each individual who works in organisations in social services. This concerns, in particular, employees, volunteers and students performing specialist work in facilities. Young people leaving People who leave an institutional facility and do not have the necessary social an institutional facility and economic links necessary for their further integration into society and the labour market. th Young people under Persons who have not yet completed their 25 year of life at the moment they 25 start drawing support from the project. Operational Programme Prague – Adaptability 24 September 2007 124 8 ABBREVIATIONS AA Audit Authority AS CR Academy of Sciences of the Czech Republic BIC Business and Innovation Centre CF Cohesion Fund CP Communication Plan CR Czech Republic CSE Complete secondary education CSG Community Strategic Guidelines CSO CSV Czech Statistical Office Complete secondary vocational education CZK Czech koruna EAFRD European Agriculture Fund for Rural Development EC EEA European Community European Economic Area EFF European Fisheries Fund ERDF European Regional Development Fund ESF EU European Social Fund European Union EU-15 EU Member States as at 30 April 2004 EUROSTAT European Statistical Office FEU GDP EU Funds and Foreign Relations Department of the Prague City Hall Gross domestic product ICEA Industry Classification of Economic Activities ICT Information and Communication Technology JMC LO Joint Monitoring Committee Labour office LSARI Labour and Social Affairs Research Institute MA MC Managing authority Monitoring Committee MfRD Ministry for Regional Development MoEYS Ministry of Education, Youth and Sport MoF MoLSA Ministry of Finance Ministry of Labour and Social Affairs MSSF Monitoring System for Structural Funds NCA National Coordination Authority NDP NE National Development Plan National Economy NGO Non-governmental non-profit organisation NRP National Reform Programme Operational Programme Prague – Adaptability 24 September 2007 125 NSRF National Strategic Reference Framework NUTS Nomenclature of Territorial Units for Statistics NUTS 2 Nomenclature of Territorial Units for Statistics, level 2 NUTS 3 OP EC Nomenclature of Territorial Units for Statistics, level 3 Operational Programme Education for Competitiveness OP HRE Operational Programme Human Resources and Employment OPPA Operational Programme Prague – Adaptability OPPC Operation Programme Prague – Competitiveness PA Priority axis PCA Paying and Certifying Authority R&D Research and development SF SF/CF Structural funds Structural funds/Cohesion Fund SLFS Sample Labour Force Survey SME Small and medium-sized enterprises SPD 3 Single Programming Document for Objective 3 of the NUTS 2 Prague region Strengths, Weaknesses, Opportunities and Threats analysis SWOT Operational Programme Prague – Adaptability 24 September 2007 126 9 LIST OF TABLES, CHARTS AND FIGURES Figure 1 Figure 2 Inclusion of NUTS 2 regions in the cohesion policy objectives for 2007-2013 .... 6 Division of Prague into boroughs and administrative districts (as at 30 June 2006) ................................................................................................................................ 8 Table 3 Fundamental demographic data of Prague’s population in 2000-2005.................. 9 Table 4 Population development of Prague in 2000-2005 (as at 31 December)................. 9 Table 5 Development of age structure indicators for the population of Prague and the Czech Republic ................................................................................................................ 10 Table 6 Development of the age structure of the population of Prague and the Czech Republic (%) .................................................................................................................... 10 Table 7 Projections of population development in Prague................................................ 11 Table 8 Economic performance of Prague in 2001-2005.................................................. 12 Table 9 Development of labour force in Prague and the Czech Republic in thousands of people .............................................................................................................................. 13 Table 10 Rate of economic activity..................................................................................... 13 Chart 11 Rate of economic activity in Prague by age brackets in 2001-2004 in %............ 13 Table 12 Qualification structure and rate of economic activity by education and gender .. 14 Table 13 Employed people aged 15+ in Prague and the Czech Republic (in thousands of people) .............................................................................................................................. 14 Table 14 Employment in Prague by sector activities .......................................................... 15 Table 15 Development of sector employment in Prague in 1998-2005 (in %)................... 15 Table 16 Sector employment in Prague, the Czech Republic and the EU in 2004 ............. 15 Table 17 Number of employees in Prague by employment classification (in thousands) .. 16 Table 18 Development of the number of employees in Prague by position at work (in thousands)......................................................................................................................... 16 Table 19 Employment of foreigners, EU, EEA and Swiss nationals in Prague.................. 17 Table 20 Development of average nominal wages (in %, CR = 100%) ............................. 17 Table 21 Number of part-time employees in Prague (in %) ............................................... 17 Table 22 Development of unemployment in Prague in 1995-2006 (as at 31 December) ... 18 Table 23 Educational structure of job seekers (as at 31 December 2005 in %).................. 18 Chart 24 Share of men and women in groups by the length of unemployment as at 31 December 2005........................................................................................................ 19 Table 25 Age structure of job seekers (as at 31 December 2005, in %) ............................. 19 Table 26 Number of disabled job seekers (as at 31 December) .......................................... 20 Table 27 Social service providers in Prague ....................................................................... 25 Table 28 Number of NGOs in 2003 .................................................................................... 26 Table 29 Total public expenditure on education (in % of GDP)......................................... 30 Chart 30 Population by the highest education achieved 15+ in 2004 ................................. 31 Chart 31 Trends in education structure of Prague’s population.......................................... 31 Table 32 Education structure of the 15+ population in 2004 .............................................. 32 Table 33 Trends in the number of children, pupils and students at various levels of education .......................................................................................................................... 32 Table 34 Number of teachers in the individual types of schools in Prague ........................ 32 Table 35 Numbers of students at institutions of university education in Prague in the school year 2004/2005 ..................................................................................................... 35 Table 36 Number of people in non-formal education in 2003 ............................................ 36 Table 37 Re-qualification in 2001-2006 ............................................................................. 37 Chart 38 Number of registered business entities................................................................. 41 Operational Programme Prague – Adaptability 24 September 2007 127 Table 39 Registered operators in Prague by sector as at 31 December............................... 41 Table 40 Registered operators in Prague by legal form as at 31 December........................ 42 Table 41 Registered operators in Prague by size (as at 31 December) ............................... 43 Table 42 Tourism trends in Prague in 1990-2005............................................................... 44 Table 43 Performance of mass accommodation facilities in Prague and the Czech Republic in 2005.............................................................................................................................. 44 Graph 44 Average evaluation of aspects of the city – trends over time............................... 45 Table 45 Spending on research and development (in CZK million)................................... 45 Table 46 R&D employees as at 31 December (individuals) ............................................... 46 Figure 47 System of OPPA objectives and priority axes ..................................................... 53 Figure 48 Context of the OPPA strategy .............................................................................. 55 Figure 49 Links between OPPA and the Community Strategic Guidelines ......................... 56 Figure 50 Links between OPPA and the National Strategic Reference Framework ............ 57 Table 51 Priority axes of the OP HRE ................................................................................ 69 Table 52 Priority axes of OP EC ......................................................................................... 70 Figure 53 Links between OPPA and operational programmes 2007-2013 ......................... 70 Table 54 Categories of expenditure – priority axis 1 .......................................................... 80 Table 55 Categories of expenditure – priority axis 2 .......................................................... 83 Table 56 Categories of expenditure – priority axis 3 .......................................................... 87 Table 57 Codes of priority themes – priority axis 4............................................................ 89 Table 58 OPPA context indicators ...................................................................................... 90 Table 59 Programme indicators system .............................................................................. 91 Table 60 Definition of the OPPA input indicators .............................................................. 92 Table 61 Definition of the OPPA output indicators ............................................................ 92 Table 62 Definition of the OPPA results indicators............................................................ 92 Table 63 Definition of the OPPA impact indicators ........................................................... 93 Table 64 Quantified objectives of priority axis 1................................................................ 95 Table 65 Quantified objectives of priority axis 2................................................................ 95 Table 66 Quantified objectives of priority axis 3................................................................ 96 Table 67 Quantified objectives of priority axis 4................................................................ 96 Table 68 Quantified objectives of the operational programme ........................................... 97 Table 69 Managing Authority of the Operational Programme Prague – Adaptability ....... 99 Table 70 Paying and Certifying Authority ........................................................................ 100 Table 71 Audit Authority .................................................................................................. 101 Figure 72 Scheme of the system for monitoring of the structural operations in Prague .... 107 Table 73 Indicative composition of the Joint Monitoring Committee .............................. 109 Figure 74 Simplified OPPA implementation scheme......................................................... 116 Table 75 Financial plan in terms of annual allocations from the individual Structural Funds (in EUR, current prices) ................................................................................................. 119 Table 76 Financial plan by resources and priority axes (in EUR, current prices) ............ 120 Table 77 Indicative breakdown of the Community contribution by category (in EUR)... 121 Operational Programme Prague – Adaptability 24 September 2007 128
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