Mozambiques emerging Program for Decentralized Planning and Finance DPFP

1
Mozambiques emerging Program for Decentralized
Planning and Finance(DPFP)

• Dr. Rodney Reviere
• Norbert Eulering
• GTZ Mozambique

2
Background

• Population 19 million
• Surface area as big California and over twice the
  size of Germany
• Poverty Index 54
• 70 of population live in rural areas
• 1975 Independence
• 1978 Centrally planned economy
• 1978 Destabilization
• 1986 IMF, transition to market-based economy
• 1992 Peace Accord
• 1994 First multi-party elections

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Local Government in Mozambique

• Little history or culture of local,
  democratically elected, government
• 11 provinces, 128 districts ( Administrative
  Posts Localities)
• State is still relatively highly centralised
• 1995 Provinces get some discretion over
  investment budget
• 1997 Municipalisation creation of 33 elected
  municipal councils (elections in 1998)
• 1998 Introduction of decentralised planning
• 2005 Approved the law of Local Organs of the
  State (LOLE)

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Decentralized Planning

• Initially donor led
• 1996 Piloted in Manica- (GTZ) and then in
  Nampula-Province (UNCDF/UNDP)
• 1997-98 Government undertakes study and issues
  guidelines
• 2003 Donor desire to unify approaches and work
  more closely together - donor working group on
  decentralization starts
• 2005 Government takes decision to scale up
  existing projects (GTZ UNDP WB) to a national
  program which covers the whole country and
  defines in general lines it's overall objective

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Objective

• Empower citizens and increase local governments
  capacity to plan and manage their own sustainable
  socio-economic development

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Current state of affairs

• Joint evaluation with intention of harmonizing
  three projects
• Backward- looking evaluation of the 3 projects
  against the defined objective and a common
  framework to identify differences and best
  practices
• Forward- looking assessment of legal and policy
  context to make recommendations as to the design
  a single national DPFP
• Propose design changes to projects so that they
  could effectively support a national DPFP
  (including financial arrangements)
• National workshops to discuss findings including
  all stakeholders, presided over by the Minister
  of Planning and Development
• Following the evaluation a series of workshops to
  flesh-out the basic framework and produce a
  log-frame for national program
• Yearly plans for each province to be developed in
  the provinces based on the national log frame

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DPFP - Principles

• Shared set of guiding principles
• The district is the base for planning and
  development
• We work within existing Legislation, guidelines
  and methodologies
• The Government has the leadership of the program
• Financing is done through national systems and
  processes (on budget)
• It is a process of knowledge management
  continuous learning
• We create a dynamic and facilitative environment
• We want to facitlitate good governance
  transparency
• The CD leds to improved service delivery in the
  district

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DPFP - Characteristics

• Strategy and methodology based on best
  practices identified in joint evaluation
• One Single planning and reporting framework
• Differentiated implementation arrangements but
  common objectives and methodologies
• Common resource pool to support program
  implementation at national level and in all
  provinces
• In-kind contributions and financial contributions
• Phased shifting from project to program approach

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DPFP - CD Elements

• Overall goal is increase local capacity
• Pilot to scale based on best practices (how to do
  things different and how to get people to do
  things different)
• Use of national systems where they exist
• Program is an open system with room for
  innovation and improvement
• Multi-level intervention- learning between levels
• Bottom-up and top-down participative approach
  (practice precedes policy)

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DPFP Program Support

• German Cooperation (GTZ/KfW/DED/InWent)
• UNDP
• World Bank
• Ireland
• The Netherlands
• Norway
• Sweden
• Switzerland
• Open to others

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Alignment of the Main Actors

• Government side President declares districts as
  poles of development approval of new law (LOLE)
  and first major step towards fiscal
  decentralization government expressed preference
  for joint approaches
• Donor side Paris Declaration provokes new
  thinking timing - end of phase for 2 of 3
  projects, mid-term review for third WB project
  manager moving to Johannesburg helped a lot
• Framework conditions Paris declaration, donor
  working groups in place and functioning which
  provided/promoted direct contact between donors
  supporting decentralization
• Common belief towards developing capacity
  learning by doing

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Lessons Learned

• Not over planning, instead get things moving and
  try to keep them moving
• Dont let the details stop you
• Expect mistakes and create systems to learn from
  them
• Learning by doing it right. Learning by doing can
  be misleading doing isnt enough if it is done
  incorrectly (practice makes consistent, not
  perfect) so the importance of long-term TA to
  provide coaching all along the process
• Use of common processes (planning, budgeting,
  procurement, monitoring, etc.) is essential so
  that same learning is done throughout the system.

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Closing thoughts

• I Hear, I forget
• I See, I remember
• I do, I learn