DECENTRALIZATION AND RURAL SERVICES: MESSAGES FROM RECENT RESEARCH AND PRACTICE

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DECENTRALIZATION AND RURAL SERVICESMESSAGES
FROM RECENT RESEARCH AND PRACTICE

• Graham B. Kerr
• Community Based Rural Development Advisor
• The World Bank
• Regional Seminar on
• Decentralization and Participation for
  Sustainable Rural Development in Southern Africa
• October 26-30, 1998

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The Challenges for US

• 1.3 billion still living in poverty -- 800
  million in rural areas
• Significant growth in number of mouths to be fed

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Why is rural development not happening?

• Rural poor have little political power
• Urban bias in the policy environment
• Agriculture seen as a declining sector
• Falling food prices
• Aid fatigue in the agriculture sector
• Integrated rural development programs have failed

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Why Decentralize?

• improve access to and quality of services
• give local communities control of resources to
  invest in projects they care about -- often
  education, health, infrastructure and other
  growth enhancing services
• create conditions for bargaining, increase
  information flows, increase efficiency
• empower under-represented groups, such as local
  entrepreneurs to be politically active

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What is decentralization ?

• The transfer of authority and responsibility for
  some government functions from central government
  to intermediate and local governments, and often
  to communities and the private sector

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Decentralization A Dynamic Institution

• Deconcentration -- central staff to localities
• Delegation -- to parastatals
• Devolution -- to lower levels of government
• Privatization -- to private firms

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Decentralization is here to stay

• globalization -- changing role of the state
• growth of local democracy -- power sharing
• professionalization of local capacity
• it is now a country strategy rather than a donor
  strategy

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BUT there are pitfalls

• Decentralization has often failed
• -- often not even really started -- de jure vs.
  de facto
• it matters how it is done
• Soufflé theory -- three dimensions of
  decentralization

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Three dimensions of decentralization

• Administrative decentralization transfers
  substantial authority and responsibility for
  managing services to local government, local
  communities and the private sector
• Political decentralization transfers policy and
  legislative powers from central government to
  elected sub-national and local councils.
• Fiscal Decentralization transfers authority and
  responsibility for raising and spending revenues
  from central to local governments and
  communities.

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Our Soufflé Theory

• Rural Impacts -- the long-term results
• Service Delivery System Results -- reformed
  institutions
• Service Delivery System Outcomes -- medium term
  changes in the system
• Decentralization choices -- three dimensions
• Institutional endowments -- the environment

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Decentralization Multiple Levels

• National Decentralization Framework and concerns
• Local Service Institutions and concerns

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Our Characterization Study

• Describes decentralization choices made in 19
  countries in early 1990s
• Data collected by local consultants and
  interviews with Bank staff
• Measures of three dimensions on 10 point scales
  -- 10 points to those which are devolved

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Conclusions of Characterization Study

• Rural services still largely in the hands of
  higher levels of government
• Decentralized systems still in their infancy
• The real benefits and problems of
  decentralization may only be fully appreciated
  when the systems have matured and additional
  powers devolved to local governments and
  communities

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How can we improve the impact of decentralization?

• Ensure a balanced approach -- address all three
  dimensions
• Focus on key system outcomes and results
• accountability
• transparency
• representation
• local resource mobilization
• local institutional capacity
• local voice
• sustainability

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Political Representation?

• Develop policies to
• encourage local competitive political system
• ensure that local politicians represent local
  groups
• enable local NGOs for disadvantaged groups

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Political Accountability?

• Design programs so that
• service providers are accountable to local
  elected councils and their local clients
• local elected councils are accountable to their
  constituents

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Fiscal Devolution?

• Policy dialogue to ensure
• central government devolves appropriate fiscal
  authority
• fiscal policies and procedures in place for each
  level of government
• local governments assume authority and enact
  appropriate, responsible policies
• fiscal discipline -- checks and balances are
  built into the system

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Fiscal Capacity and Accountability?

• Design programs so that
• fiscal transfer schemes are transparent,
  predictable, and local units have appropriate
  level of autonomy
• local units build their capacity to implement
  their fiscal responsibilities
• systems to mobilize local resources are enhanced

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Administrative Decentralization?

• Deconcentration is only the first stage of
  administrative decentralization and may hinder
  further progress
• Delegation of administration to civil society is
  important

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Administrative Capacity?

• Design programs so that
• local managerial and technical expertise is
  recognized and used
• local knowledge is incorporated into program --
  voice

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Administrative Accountability and Transparency?

• Design programs so that
• planning, budgeting and spending are public and
  open
• contract laws and procedures are adequate
• information systems are built into the program
• local press is included in the project process

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Final Messages

• Decentralization has potential
• Decentralization is not happening with rural
  services
• Focus on increasing accountability to local
  clients, increasing responsiveness, building
  political, fiscal and administrative capacity

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• Thank
• you