PROMOTING LOCAL GOVERNANCE

1
PROMOTING LOCAL GOVERNANCE DECENTRALISATION IN
ASIA

• HIGHLIGHTS FROM UNCDF EXPERIENCE

2
(No Transcript)
3
(No Transcript)
4
(No Transcript)
5
Asia variety of national contexts

• Very varied state-building (and colonial)
  histories (ref. Africa)
• Varying sub-national state structures LGs
  well-established in some places (Bangladesh),
  quite new in others (Timor, Laos) varying
  combinations of deconcentrated and devolved
  structures
• Varying Politics from messy multi-partyism
  (Nepal, Bangladesh), to highly dominant single
  parties (Cambodia, Timor), to one party states
  (Viet Nam, Laos) .. and even a 2 party state
  (Bhutan)
• Varying political rationales for
  decentralisation from post-conflict state
  building (Nepal, Timor), to governing party
  attempts to build up local political base in
  rural areas (Bangladesh, Cambodia), to single
  party legitimacy concerns (VN and Laos) and all
  intertwined with more technical concerns to
  promote local service delivery and implement
  PRSPs, etc..

6
ASIAN LDCs SUB-NATIONAL TIERS OF GOVERNMENT
7
UNCDFs Local Development strategy

• Vicious circle no capacity-no responsibility-no
  resources-no capacity
• Break this by innovations in
• Local Government Financing simulates u/c block
  grant, performance links
• Part. planning/budgeting, implementation, OM
  (procedures, tools within system) limited menu
• Institutional innovations Capacity-building
• Impact to date
• Scope for greater ISD efficiency for basic infra
  at least
• Scope for much greater public involvement
• Piloting (plus opportunistic advisory/advocacy
  work) also effective in reforming Policy

8
LDP INNOVATIONSA SCHEMATIC PICTURE
Central government
Performance Block Grant
Local Line Depts
Local Firms, NGOs
LG
CBOs
9
RECAP

• KEY LESSONS
• Promoting ISD role of rural LG is critical (for
  MDGs etc) but neglected
• Rural local govt service delivery is
  qualitatively different and more challenging,
  requiring policy institl reform as much as
  better local practice citizen engagement
• But innovations are possible - in procedures for
  service planning, delivery, accountability
  and, underlying these, in financing arrangements
  .. and they can be mainstreamed
• Beware the weak local capacity argument!
  Simply introducing such enabling factors allows
  learning by doing, can greatly improve
  performance - with no change in personnel

10
The importance of sub-national government (esp.
in rural areas)

• Poverty still primarily rural massive
  improvements required in basic infrastructure
  service delivery (ISD)
• Many (not all) are local public/merit goods
• Local government can (potentially) help improve
  efficiencies shorten the accountability route
  (WDR 2004) (even in tiny Timor!)
• but rural local governments often presumed to
  be hopelessly weak, and sidelined (exacerbating
  the problem)

11
IMPROVING SERVICE DELIVERYURBAN-RURAL CONTRASTS
12
Capacity Building lessons

• Beware the blanket weak capacity mantra (and
  blanket solutions) - this suggests problems
  inherent
• Better to identify reasons for shortfalls in
  specific areas of performance esp in public
  expenditure management
• Major improvements in performance can be gained
  by addressing these constraints, through improved
  institutions, procedures funding without
  changes in human resources
• Capacity development more akin to a performance
  art
• Entrusting functions resources is a
  pre-condition for improved performance

13
PILOTING, LOCAL DEVELOPMENT POLICY IMPACT
POVERTY REDUCTION IN PROGRAMME AREA
INDIRECT POVERTY REDUCTION NATIONALLY
LOCAL DEVELOPMENT
POLICY IMPACT REPLICATION
LOCAL PROGRAMME OUTPUTS ACTIVITIES
POLICY- RELEVANT LESSONS
ADVOCACY ADVISORY WORK
14
POLICY IMPACT STRATEGYGOALS INSTRUMENTSmacro
policy lt-----------gt micro policy
15
Promoting local service delivery capacity

• MDG debate overly focussed on costing, tracking
  and localising
• Neglect of practical policy issues in
  decentralising MDG-key services (H, E, W, Ag,
  etc)
• Who does what at which level?
• How to finance?
• How to manage public expenditure?
• How to ensure accountability?
• Decentralisation policy issues which determine
  the effectiveness and efficiency of the
  transmission belt from national budgetary
  allocations to local service delivery.

16
UNBUNDLING LOCAL SERVICE DELIVERY ROLES

• POLICY setting overall service goals, standards,
  norms etc and monitoring their implementation
  (central/higher level role)
• PROVISION managing finance, planning, budgeting,
  overseeing being answerable for service
  delivery (a sub-national government) NB Agency vs
  Principal Role ?
• PRODUCTION actually designing, constructing,
  operating managing service delivery
  (sub-national government, private sector, NGOs,
  or community groups)

17
EXPLORING LOCAL ISD ROLES IN CAMBODIA - A
FRAMEWORK -
18
(No Transcript)
19
(No Transcript)
20
Public expenditure management typical
challengesundermine effective, efficient,
equitable use of funds

• PLANNING, BUDGETING PROCEDURES NOT OPEN TO PUBLIC
  INPUT, NOT TRANSPARENT, TOO INFLUENCED BY MASTER
  PLANS AND/OR POLITICS
• INSUFFICIENT CAPITAL/RECURRENT BUDGET INTEGRATION
  OR OM FOCUS
• WEAK BUDGET EXECUTION
• PROCUREMENT PROBLEMATIC
• COMMUNITY/PRIVATE/NGOs USED TOO LITTLE (OR TOO
  MUCH!)
• INADEQUATE MONITORING TRANSPARENCY ARRANGEMENTS
• POOR FINANCIAL ACCOUNTING REPORTING
• POOR INSPECTION AUDIT

21
Local Accountabilities typical
challengesundermine LG role in shortening
accountability route

• Downward Council to Citizens?
• Low levels information, education, association
  logistics, time, travel costs
• Weak media and civil society watchdog role
• Party representational mechanism constraints
• Horizontal Civil Servants to Councilors?
• Civil servants often deployed to higher level
  with no Council
• Even if at same level, Ministries retain real
  control
• Sector Committee system not functional
• Line department funded by vertical sector
  transfers
• Education level difference
• S/national Government to Centre?
• Unclear expectations and reporting procedures
• Weak central capacity to monitor, inspect, audit
• National Parliaments often show no interest

22
MULTI-TIER SUBNATIONAL SETUPS TWO
STEREOTYPESCLASSIC DEVOLVED LG - LG
DECONCENTRATION UGANDA
BANGLADESH/CAMBODIA

ministries
ministries
centre
centre

council
line depts
line depts
gov
province
district

council
council
commune
s/district
23
Improving Peformance Accountability LDP
strategy

• Planning-budgeting integrate to statutory budget
  cycle adopt minimalist part. approaches promote
  institutional arrangements to bridge LG-community
  and LG-line dept gaps simple technical guidance
• Implementation reform procurement procedures
  within reg frame simplified tender procedures
  (where priv procurement possible) community
  cttees for oversight block grant funding window
  for LG to buy technical support
• Operations Maintenance distinguish roles of
  CBOs and LGs integrate in planning/budgeting
  procedures
• Information availability on funds, budgets,
  schemes
• Monitoring support community centre-local
• Incentives to adopt procedures build into
  performance funding arrangements.

24
Procedures, politics elite capture

• The strategy is no safeguard against predatory
  behaviour but such innovations can
• Encourage demand for accountability
• Force local politicians to be more open and
  trade-offs more apparent or embarrassing
• Even find favour (with those with populist
  interests in more equitable public expenditure,
  or being seen to be developmental?)
• Bangladesh the contrast in use made by LGs of
  LDP block grant funds and of conventional
  transfers are stark

25
RECAP

• Promoting ISD role of rural LG is critical but
  neglected
• Rural local govt service delivery is
  qualitatively different and more challenging,
  requiring policy institl reform as much as
  better local practice citizen engagement
• But innovations are possible - in procedures for
  service planning, delivery, accountability
  and, underlying these, in financing arrangements
  .. and they can be mainstreamed
• Beware the weak local capacity argument!
  Simply introducing such enabling factors allows
  learning by doing, can greatly improve
  performance - with no change in personnel