Coordination
#6Key Findings
Estonia performs well in international comparison (rank 6) with regard to coordination.
Coalition governments follow a previously agreed government program and rules of procedure, coordinated by a coalition committee. The government office’s Strategy Unit coordinates and monitors activities associated with the long-term Estonia 2035 strategic plan.
The government office has limited ability to evaluate legislative proposals. Government support structures are largely located in the line ministries. All policy initiatives are discussed in the coalition council, and the cabinet reviews substantial issues in a weekly meeting. Informal coordination is common.
Estonian municipalities are legally responsible for public services, but are limited by their dependence on central government grants. No intermediate regional self-governance tier exists. The central government has taken over core tasks that require a concentration of professional resources, for instance in education and social services.
Coalition governments follow a previously agreed government program and rules of procedure, coordinated by a coalition committee. The government office’s Strategy Unit coordinates and monitors activities associated with the long-term Estonia 2035 strategic plan.
The government office has limited ability to evaluate legislative proposals. Government support structures are largely located in the line ministries. All policy initiatives are discussed in the coalition council, and the cabinet reviews substantial issues in a weekly meeting. Informal coordination is common.
Estonian municipalities are legally responsible for public services, but are limited by their dependence on central government grants. No intermediate regional self-governance tier exists. The central government has taken over core tasks that require a concentration of professional resources, for instance in education and social services.
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To what extent do established coordination mechanisms between the government’s office and line ministries effectively enhance policy coherence?
10
9
9
Functional coordination mechanisms between line ministries and the GO/PMO, aimed at enhancing policy coherence, are in place.
8
7
6
7
6
Largely functional coordination mechanisms between line ministries and the GO/PMO, aimed at enhancing policy coherence, are in place.
5
4
3
4
3
Coordination mechanisms between line ministries and the GO/PMO, aimed at enhancing policy coherence, are only somewhat functional.
2
1
1
Coordination mechanisms between line ministries and the GO/PMO, aimed at enhancing policy coherence, are not at all functional.
Estonia typically has coalition governments; reaching an agreement on the priorities and goals of the future government is a core issue in the cabinet formation process. After a coalition cabinet is sworn in, it generally acts in accordance with the government program and rules of procedure signed by all coalition partners. The process of program implementation is coordinated by the coalition committee, which is composed of a representative from each coalition partner. The Basic Principles of the Government Coalition for 2023 – 2027 are stipulated in the coalition agreement, reached in April 2023. The objectives set out in the agreement will serve as the basis for the government in drafting its four-year plan of action. Defense and security are among the top priorities for the new government, along with ensuring the sustainability of public financing, implementing green reforms, reducing regional stagnation and inequality, and guaranteeing high-quality education.
Strategic meetings between the prime minister and line ministers take place annually to steer the strategic goals of Estonia 2035. The strategy, adopted in 2021, establishes a framework consolidating Estonia’s major strategic goals and national courses of action while taking into account international obligations.
Estonia 2035 serves as a crucial instrument for the country’s long-term development strategy and cross-sectoral coordination. All development plans approved by the government and all programs approved by the ministers adhere to the goals and necessary changes outlined in the Estonia 2035 strategy. Estonia 2035 is also closely linked to the state budget strategy process.
Primary responsibility for coordinating, implementing and monitoring Estonia 2035 lies with the Strategy Unit of the Government Office (GO). This unit drafts strategic development plans and government action plans and monitors the implementation of these policy documents. In addition to the GO, there is the Prime Minister’s Bureau, which is composed of experts in various policy areas who advise the prime minister. Unlike the GO, this body is mostly linked to the prime minister’s political party, and its members change with each new prime minister.
Citations:
https://valitsus.ee/en/coalition-agreement-2023-2027
https://valitsus.ee/en/estonia-2035-development-strategy/strategy/strategic-goals
Strategic meetings between the prime minister and line ministers take place annually to steer the strategic goals of Estonia 2035. The strategy, adopted in 2021, establishes a framework consolidating Estonia’s major strategic goals and national courses of action while taking into account international obligations.
Estonia 2035 serves as a crucial instrument for the country’s long-term development strategy and cross-sectoral coordination. All development plans approved by the government and all programs approved by the ministers adhere to the goals and necessary changes outlined in the Estonia 2035 strategy. Estonia 2035 is also closely linked to the state budget strategy process.
Primary responsibility for coordinating, implementing and monitoring Estonia 2035 lies with the Strategy Unit of the Government Office (GO). This unit drafts strategic development plans and government action plans and monitors the implementation of these policy documents. In addition to the GO, there is the Prime Minister’s Bureau, which is composed of experts in various policy areas who advise the prime minister. Unlike the GO, this body is mostly linked to the prime minister’s political party, and its members change with each new prime minister.
Citations:
https://valitsus.ee/en/coalition-agreement-2023-2027
https://valitsus.ee/en/estonia-2035-development-strategy/strategy/strategic-goals
To what extent are there positive (formalized) forms of coordination across ministries that aim to enhance policy coherence?
10
9
9
Interministerial coordination mechanisms targeting policy coherence provide incentives for identifying synergies and opportunities.
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7
6
7
6
Interministerial coordination mechanisms targeting policy coherence sometimes provide incentives for identifying synergies and opportunities.
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3
4
3
Interministerial coordination mechanisms targeting policy coherence rarely provide incentives for identifying synergies and opportunities.
2
1
1
There are no interministerial coordination mechanisms targeting policy coherence that provide incentives for identifying synergies and opportunities.
The Government Office (GO) and prime minister’s support structures primarily provide consulting services, monitor governmental processes and provide technical (judicial) expertise. De facto, the GO’s and prime minister’s capacity to undertake substantial evaluations of line-ministry proposals is limited due to the efficiency aims, inflexibility and highly siloed nature of the administrative system (Elbrecht 2023). Hence, the supporting structures of government in Estonia are mainly located in the line ministries.
The need to improve governance policy innovation capacity and quality management, as well as to pursue holistic approaches, has long been a concern. There has been considerable demand for such state reform. One element of this state reform aims to improve the coherence of governance by merging executive agencies with overlapping functions and strengthening the Prime Minister’s Office.
Currently, Estonia does not have a cabinet committee structure within the government or any ministerial committee tsked with fostering pre-consultations and synergies between ministries. Recently, however, steps have been taken to enhance cooperation and embrace a whole-of-government governance approach. These steps include granting the prime minister more power in strategic planning, initiating interministerial programs and increasing flexibility in recruiting personnel for interministerial units.
At the ministry level, procedures for coordinating policy proposals are set by national government rules. According to these rules, all relevant ministries must be consulted and involved in a consensus-building process before an amendment or policy proposal can be presented to the government. Additionally, senior civil servants from various ministries consult and inform each other about upcoming proposals. Deputy secretaries general play a key role in this informal consultation process.
The entire consultation process is managed via an online system for draft laws, the Information System for Legal Drafts (Eelnõude infosüsteem, EIS). The EIS allows users to search documents currently under consideration, participate in public consultations and submit comments on draft bills. Policymaking and policy monitoring are further supported by an interoperable data exchange platform called X-Road, an integrated system facilitating data exchange between different organizations and information systems. However, this has been criticized as a passive minimum that rarely generates qualitative and useful insights for suggestions.
As a result, Estonia’s Digital Agenda 2030 targets the development of an interinstitutional data governance and data science competence center, as well as the expansion of the usage of the administrative system for technical services and of the state information system databases. One of the sub-aims is also to improve the participatory element in the EIS, a pilot of which is already underway.
Citations:
Elbrecht, G. 2023. “Riigireformist ja riigivalitsemise tulevikust (About State Reform and the Future of State Governance in Estonia).” Riigikogu Toimetised 48. https://rito.riigikogu.ee/wordpress/wp-content/uploads/2023/12/81-94_Fookus-Elbrecht.pdf
The need to improve governance policy innovation capacity and quality management, as well as to pursue holistic approaches, has long been a concern. There has been considerable demand for such state reform. One element of this state reform aims to improve the coherence of governance by merging executive agencies with overlapping functions and strengthening the Prime Minister’s Office.
Currently, Estonia does not have a cabinet committee structure within the government or any ministerial committee tsked with fostering pre-consultations and synergies between ministries. Recently, however, steps have been taken to enhance cooperation and embrace a whole-of-government governance approach. These steps include granting the prime minister more power in strategic planning, initiating interministerial programs and increasing flexibility in recruiting personnel for interministerial units.
At the ministry level, procedures for coordinating policy proposals are set by national government rules. According to these rules, all relevant ministries must be consulted and involved in a consensus-building process before an amendment or policy proposal can be presented to the government. Additionally, senior civil servants from various ministries consult and inform each other about upcoming proposals. Deputy secretaries general play a key role in this informal consultation process.
The entire consultation process is managed via an online system for draft laws, the Information System for Legal Drafts (Eelnõude infosüsteem, EIS). The EIS allows users to search documents currently under consideration, participate in public consultations and submit comments on draft bills. Policymaking and policy monitoring are further supported by an interoperable data exchange platform called X-Road, an integrated system facilitating data exchange between different organizations and information systems. However, this has been criticized as a passive minimum that rarely generates qualitative and useful insights for suggestions.
As a result, Estonia’s Digital Agenda 2030 targets the development of an interinstitutional data governance and data science competence center, as well as the expansion of the usage of the administrative system for technical services and of the state information system databases. One of the sub-aims is also to improve the participatory element in the EIS, a pilot of which is already underway.
Citations:
Elbrecht, G. 2023. “Riigireformist ja riigivalitsemise tulevikust (About State Reform and the Future of State Governance in Estonia).” Riigikogu Toimetised 48. https://rito.riigikogu.ee/wordpress/wp-content/uploads/2023/12/81-94_Fookus-Elbrecht.pdf
How effectively do informal coordination mechanisms complement formal mechanisms of interministerial coordination?
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Informal coordination mechanisms complement formal mechanisms of interministerial coordination.
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In most cases, informal coordination mechanisms complement formal mechanisms of interministerial coordination.
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3
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In some cases, informal coordination mechanisms undermine formal mechanisms of interministerial coordination.
2
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1
Informal coordination mechanisms undermine formal mechanisms of interministerial coordination.
Two different forms exist to communicate line ministries’ proposals to the GO. First, all policy initiatives are discussed in the coalition council. Second, the cabinet informally examines all substantial issues at its weekly meetings. No binding decisions are made in these meetings; the main function is to exchange information and prepare for formal government sessions.
Informal coordination, especially considering the small size of the country, plays an important role in ensuring efficient policymaking. In addition to contacts between high-ranking civil servants in ministries, the coalition committee and governing bodies of political parties are crucial in garnering support from coalition partners. However, while the Estonia 2035 long-term development strategy sets strategic goals, including a focus on governance, it lacks implementation plans and targets for government coordination.
Informal coordination, especially considering the small size of the country, plays an important role in ensuring efficient policymaking. In addition to contacts between high-ranking civil servants in ministries, the coalition committee and governing bodies of political parties are crucial in garnering support from coalition partners. However, while the Estonia 2035 long-term development strategy sets strategic goals, including a focus on governance, it lacks implementation plans and targets for government coordination.
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To what extent does central government ensure that subnational self-governments meet national (minimum) standards in delivering public services?
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The central government effectively ensures that subnational self-governments successfully meet national standards for public service delivery.
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7
6
Most of the time, the central government ensures that subnational self-governments successfully meet national standards for public service delivery.
5
4
3
4
3
The central government rarely ensures that subnational self-governments successfully meet national minimum standards for public service delivery.
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The central government does nothing to ensure that subnational self-governments successfully meet national standards for public service delivery.
A number of public services in Estonia are provided at the local level, although the quantity and quality of services vary greatly relative to the size and capacity of municipalities. According to the Estonian constitution, local self-governments can independently decide on all local issues. The rights and responsibilities of local governments are stipulated in detail in the Local Government Organization Act. In 2018, a major local government reform was undertaken, reducing the number of municipalities from 213 to 79. This reform aimed to enhance local governance capacity and improve the quality of public services, addressing resource shortages, especially in smaller and remote areas.
Estonia’s population is projected to decline by 2040 in all but two counties. While the whole country will lose about 2% of its population by 2040, most regions will lose more than 20% of their population, bringing population density to one of the lowest levels in Europe (OECD 2021). In international comparison, Estonia is among the least decentralized countries when measured by the subnational government share of general government spending as a share of GDP (ibid.).
While Estonian municipalities are legally responsible for a number of public services, their capacity to fulfill these responsibilities is limited due to high dependency on central grants, significant differences in per capita revenues and a lack of regional cooperation. Most state grants are earmarked and equalized against regional differences; however, they may disincentivize efficient service delivery and do not allow for adaptation to regional needs and demand (OECD 2022).
Since 2017, regulations have set the main principles for the governance of services, but these regulations provide broad directions rather than concrete quality standards. This approach is due to both disparities between municipalities and increasing local discrepancies in service delivery that respond to different needs. Although Estonia scores high with regard to the digitalization of services, there are challenges related to the quality, access, and integration of these solutions due to a lack of cooperation between responsible agencies (Elbrecht and Kobin 2022).
Thus, while a formal system is in place to ensure a basic universal list of services in each municipality, the implementation process faces serious challenges due to a shortage of qualified labor in regions, resulting in difficult trade-offs between accessibility and quality. Furthermore, the serious effects of a shrinking population are not widely understood among municipalities or citizens (OECD 2022).
Despite a large share of unmet medical needs, a lack of health centers in nearly a third of municipalities and limited out-of-hours appointments (NAO 2022), Estonia performs comparatively well in terms of people’s satisfaction with public services (OECD 2023). However, the shortage of doctors, teachers, policemen and rescue workers has reached a level at which the provision of public services according to established quality standards faces serious challenges (NAO 2022).
Recent strategic documents and state reform plans all agree that important steps need to be taken to effectively collaborate with regional and local governments to improve the delivery of public services, and several pilots and e-solutions are being undertaken. However, the issue does not seem to be a lack of analysis or an overarching vision, but rather the ability and courage to implement the agreed-upon goals. This will require the central government to enhance voluntary cooperation between municipalities, especially for services that benefit from a larger scale – for example, education and some infrastructure such as roads – so as to better utilize economies of scale and improve the scope of public service provision at the municipal level.
Citations:
Elbrecht, G., and R. Kobin. 2023. “Riigireformi analüüs. Riigireformi tagasivaade ja riigivalitsemise edasised suunad.” Rahandusministeerium. https://www.fin.ee/riigihaldus-ja-avalik-teenistus/riigihaldus/riigireform
National Audit Office. 2022. “Healthcare Trends in Estonia.” https://www.riigikontroll.ee/Suhtedavalikkusega/Pressiteated/tabid/168/ItemId/2378/amid/557/language/en-US/Default.aspx
OECD. 2022. “Executive Summary.” In Shrinking Smartly in Estonia: Preparing Regions for Demographic Change, OECD Publishing, Paris. https://doi.org/10.1787/e7bfbd91-en
OECD. 2023. “Government at a Glance. Estonia.” https://www.oecd.org/publication/government-at-a-glance/2023/country-notes/estonia-e1676b75#section-d1e27
Estonia’s population is projected to decline by 2040 in all but two counties. While the whole country will lose about 2% of its population by 2040, most regions will lose more than 20% of their population, bringing population density to one of the lowest levels in Europe (OECD 2021). In international comparison, Estonia is among the least decentralized countries when measured by the subnational government share of general government spending as a share of GDP (ibid.).
While Estonian municipalities are legally responsible for a number of public services, their capacity to fulfill these responsibilities is limited due to high dependency on central grants, significant differences in per capita revenues and a lack of regional cooperation. Most state grants are earmarked and equalized against regional differences; however, they may disincentivize efficient service delivery and do not allow for adaptation to regional needs and demand (OECD 2022).
Since 2017, regulations have set the main principles for the governance of services, but these regulations provide broad directions rather than concrete quality standards. This approach is due to both disparities between municipalities and increasing local discrepancies in service delivery that respond to different needs. Although Estonia scores high with regard to the digitalization of services, there are challenges related to the quality, access, and integration of these solutions due to a lack of cooperation between responsible agencies (Elbrecht and Kobin 2022).
Thus, while a formal system is in place to ensure a basic universal list of services in each municipality, the implementation process faces serious challenges due to a shortage of qualified labor in regions, resulting in difficult trade-offs between accessibility and quality. Furthermore, the serious effects of a shrinking population are not widely understood among municipalities or citizens (OECD 2022).
Despite a large share of unmet medical needs, a lack of health centers in nearly a third of municipalities and limited out-of-hours appointments (NAO 2022), Estonia performs comparatively well in terms of people’s satisfaction with public services (OECD 2023). However, the shortage of doctors, teachers, policemen and rescue workers has reached a level at which the provision of public services according to established quality standards faces serious challenges (NAO 2022).
Recent strategic documents and state reform plans all agree that important steps need to be taken to effectively collaborate with regional and local governments to improve the delivery of public services, and several pilots and e-solutions are being undertaken. However, the issue does not seem to be a lack of analysis or an overarching vision, but rather the ability and courage to implement the agreed-upon goals. This will require the central government to enhance voluntary cooperation between municipalities, especially for services that benefit from a larger scale – for example, education and some infrastructure such as roads – so as to better utilize economies of scale and improve the scope of public service provision at the municipal level.
Citations:
Elbrecht, G., and R. Kobin. 2023. “Riigireformi analüüs. Riigireformi tagasivaade ja riigivalitsemise edasised suunad.” Rahandusministeerium. https://www.fin.ee/riigihaldus-ja-avalik-teenistus/riigihaldus/riigireform
National Audit Office. 2022. “Healthcare Trends in Estonia.” https://www.riigikontroll.ee/Suhtedavalikkusega/Pressiteated/tabid/168/ItemId/2378/amid/557/language/en-US/Default.aspx
OECD. 2022. “Executive Summary.” In Shrinking Smartly in Estonia: Preparing Regions for Demographic Change, OECD Publishing, Paris. https://doi.org/10.1787/e7bfbd91-en
OECD. 2023. “Government at a Glance. Estonia.” https://www.oecd.org/publication/government-at-a-glance/2023/country-notes/estonia-e1676b75#section-d1e27
To what extent do national policymakers effectively collaborate with regional and local governments to improve the delivery of public services?
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9
9
National policymakers work effectively with regional and local governments to improve the delivery of public services.
8
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6
7
6
In general, national policymakers work effectively with regional and local governments to improve the delivery of public services.
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3
4
3
National policymakers rarely work effectively with regional and local governments to improve the delivery of public services.
2
1
1
There is no effective multilevel cooperation between the central and subnational governments.
Estonian local governance is established only at the municipal level, not at the intermediate tier. There are neither self-governing nor central government autonomous tiers at the intermediate level. Regional government was abolished in a previous administrative reform, and the central government’s main interface for the new regional development policy consists of county development agencies. These agencies are mostly NGOs that aggregate municipalities within their counties. In developing the new regional development policy, the Ministry of Finance compiled the guidelines for counties’ development strategies to serve as inputs to national policies. However, the integration of those strategies into the development and implementation of national policy has been limited (ESPON 2022).
Central government ministries typically have regional offices in four major centers, with each ministry defining their regional areas as they see fit (Ladner et al. 2021). Formally, municipalities are autonomous, but in practice, their revenues are entirely dependent on the central budget. Thus, addressing the quality of public services in the face of shrinking populations and revenues in most municipalities involves somewhat countervailing trends (Lander et al. 2021). On the one hand, municipalities tend to limit their general competencies, citing a lack of direct responsibility. On the other hand, particularly in the fields of education and social services, the central government has – often through capacity-building projects funded by EU structural funds – taken over selected core tasks, which require the concentration of professional resources.
Citations:
ESPON. 2022. “ReSSI-EE Regional Strategies for Sustainable and Inclusive Territorial Development – Estonia.” https://www.espon.eu/sites/default/files/attachments/Regional%20strategies%20for%20sustainable%20and%20inclusive%20territorial%20development%20-%20Estonia.pdf
Ladner, A., Keuffer, N., and Bastianen, A. 2021. Local Autonomy Index in the EU, Council of Europe and OECD countries (1990-2020). Release 2.0. Brussels: European Commission.
Central government ministries typically have regional offices in four major centers, with each ministry defining their regional areas as they see fit (Ladner et al. 2021). Formally, municipalities are autonomous, but in practice, their revenues are entirely dependent on the central budget. Thus, addressing the quality of public services in the face of shrinking populations and revenues in most municipalities involves somewhat countervailing trends (Lander et al. 2021). On the one hand, municipalities tend to limit their general competencies, citing a lack of direct responsibility. On the other hand, particularly in the fields of education and social services, the central government has – often through capacity-building projects funded by EU structural funds – taken over selected core tasks, which require the concentration of professional resources.
Citations:
ESPON. 2022. “ReSSI-EE Regional Strategies for Sustainable and Inclusive Territorial Development – Estonia.” https://www.espon.eu/sites/default/files/attachments/Regional%20strategies%20for%20sustainable%20and%20inclusive%20territorial%20development%20-%20Estonia.pdf
Ladner, A., Keuffer, N., and Bastianen, A. 2021. Local Autonomy Index in the EU, Council of Europe and OECD countries (1990-2020). Release 2.0. Brussels: European Commission.