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Despite the unfavorable climate for achieving NPRS objectives, the structural reforms implemented starting in the second half of the year had, and will continue to have in subsequent years, a positive impact on poverty reduction goals and growth facilitation.

Regarding the implementation of the various pillars of the action plan, the following was observed:

3.1.1. Pillar 1: “Reform of public institutions, capacity-building, and promotion of a good governance policy.”

The central objective of this pillar is to improve the conditions of political, economic and financial governance, with a view to fostering private enterprise and domestic and foreign investment. To that end, in 2006 the government implemented some measures (Annex 1) and took action in the following areas:

3.1.1.1 Program on political governance and promotion of a good governance policy

In the context of the political governance program, a new organizational structure of the XI constitutional government was put in place and with it a Ministry of Public Administration, State Reform, and Territorial Administration aimed at implementing the necessary reforms. To that end, the following measures were taken:

  • 1.

    Resizing, reorganization and modernization of government agencies:

    • Preparation of studies on the new hours of work for the civil service;

    • Revision of the civil service statute;

    • Training of managers;

    • Acquisition of vehicles for units with the greatest need.

2. Under the Regional and Local Governance Program, local government elections were held and new management bodies installed in the local authorities. The holding of regional and local government elections gave impetus to the decentralization of administrative systems as well as the planned transfer of capital under the OGE to local authorities, in the amount of 38.9 billion dobras, which will not only make it possible to improve local government service provision but will also contribute to the promotion of local development strategies, including the implementation of labor-intensive projects. These actions will in turn help create a climate conducive to local development.

3. The fifth standing committee on human rights, citizenship and gender issues was established in the National Assembly.

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