Transcript Document

Piloting Innovations
for Decentralization Reforms
Local Governments in Local Development
and Poverty Reduction
New York, 21 June 2004
UNCDF
Presentation
I.
UNCDF
II.
UNCDF’s pilot approach to local development
III.
Major areas of innovation
IV.
Policy impact
V.
Case studies
(a)
UNCDF project in BANGLADESH
(b)
UNCDF project in MALAWI
(c)
UNCDF projects in MALI
UNCDF
Presentation prepared by :
• Angelo BONFIGLIOLI, Sr. technical adviser
UNCDF,New York
• Azizur Rahman SIDDIQUE, Local
Governance Development Fund Project,
Sirajganj, Bangladesh
• Willie SAMUTE, Principal Secretary,
Ministry of Local Government & Rural
Development, Malawi
• Mohamed AG ERLAF, Director, National
Authority for Local Government
Investment
UNCDF
II.
UNCDF
UNCDF
UNCDF
• The United Nations Capital Fund, created in 1966 by
the General Assembly of the UN, is a multi-lateral
organization.
• It has its own legal status and funds (from a group of
donors), within the UNDP group.
• UNCDF funds and implements small-scale investments
(in the forms of grants) in LDCs in local development
and micro-finance.
UNCDF
II.
UNCDF’s pilot approach
to local development
UNCDF
An innovative model
UNCDF has developed an innovative strategic tool, the
‘Local development Programme’ (LDP), designed to
support local development, within the context of
poverty reduction. LDPs stress :
 the role of democratic governance in povertyreduction (i.e., the establishment of ‘horizontal
networks’ involving local governments, community
organizations, the civil society and the private sector),
 the role of democratically elected local authorities in
local development
UNCDF
Specific challenges faced by LDPs
a) Developing local institutions
b) Building local capacities
c) Fostering pro-poor delivery of
infrastructure and services
d) Financing local development
UNCDF
Major risks faced by LDPs
Lower quality of public services
Inequity & growing regional disparities
Capture of benefits by local elite
Still mixed and incomplete empirical evidence of
the comparative advantage of decentralized
governance in poverty reduction
UNCDF
Existing LDP portfolio
 Since 1998, UNCDF has initiated projects supporting
local governments in more than 20 countries (mainly
in Africa and Asia)
 These projects involve a total cost of about $160
million, of which $96 million from UNCDF’core funds
and $64 million from contributions and/or trust funds
from UNDP and other donors : The Netherlands,
Norway, DFID/UK, BSF/Belgium, Danida/Danemark,
and Luxembourg
 About $64 million constitute a general fund to support
LGs’ investments (poverty reduction, infrastructure,
service delivery, etc.), through different configurations
(block grants, earmarked funds, green windows, etc.)
UNCDF
III.
Major areas
of LDPS’s innovation
UNCDF
Major innovations
Financing
Planning &
Budgeting
LDP
Accountab. &
transparency
Capacity
building
Implement.
& production
UNCDF
Planning & budgeting
• Inclusive and cost effective planning : participation of all local stakeholders
• Technical support : innovative ways of providing
LGs with technical skills for participatory planning
• Linking planning & budgeting : planning as a more
meaningful process with tangible results
UNCDF
Financing
• Fund allocation : use of pre-determined, formulabased allocations to LGs, for capital expenditure
• Block grants : hard budget ceilings, in order to
undertake meaningful investment planning
• Support to local budget : on the basis of
comprehensive LDP, away from a project-byproject modality, with predictable annual
allocations
• Performance-based funding: ex-post controls (in
the light of essential parameters)
• Matching contributions : in kind and nature,
according to differential approach
• Local resources: support for improving local
revenue collection
UNCDF
Capacity building
• Training : for a number of different stakeholders
(use of planning tools, procedures. Mentoring of
lower levels of LGs by higher levels)
• Learning by doing : fostering capacity-building by
on-the-job familiarization (= the crucial
innovation)
UNCDF
Implementation / production
• Procurement /production procedures and
modalities : suitable & flexible arrangements
managed by LGs (private sector bidding, force
account, community implementation, etc.)
• Oversight : supervision & monitoring (with
support to project management committees or
task forces under the supervision of LGs)
• Private sector : upgrading contractors, training
contractors in contract management & for bidding
for tenders, unleashing entrepreneurship
• Operation & maintenance arrangements included
in the planning
UNCDF
Accountability and
transparency
• Communication : a strategy for downward
accountability
• Monitoring and evaluation : through a number of
self-assessments and auto-evaluations
• Participation : participatory planning and
accountability
UNCDF
IV.
Impact on policies
UNCDF
Policy impact
Broad policy directions: local
governance for poverty
reduction
LDP
Legislation & statutory
framework
Regulatory framework :
norms, procedures, practices
Institutional architecture
UNCDF
V.
First case study :
UNCDF Project in Bangladesh
UNCDF
Duration : 5 Years
Started in July 2000
Coverage
1st Phase
19 UPs
2nd Phase
9 UPs
3rd Phase
Implementing Agency:
Local Government Division
Ministry of LGRD & Cooperatives
45 UPs
Funded by
UNCDF & UNDP
UNCDF
BANGLADESH : Country Profile
• Population: 130 million (75% rural)
• Density: 876/sq km
• Poverty: 58% poor people live in rural areas; 40% rural
pop. are poor (against 14% urban pop.)
LOCAL GOVERNMENT & ADMINISTRATION
Division (06)
District (Zila, 64):
Average popul. : 2 million
Deconcentrated
level
Sub-District (Upazila, 469):
Average popul. : 255,000
Union (Union Parishad, 4488)
Average popul. : 30,000
9 wards(Gram Sarkar)
Elected
authorities
UNCDF
Policy Constraints
 LGs (established in 1870) still lack a coherent and
stable policy
• Limited authority of UP (strong central control)
• Unclear women’s representation
• Weak tax & revenue power
• General mistrust, perceptions of “low capacity”, elite
bias, corruption and lack of accountability
• Some policy statements (eg PRSP), while pointing to
potential role of LGs, still remain starved of
resources and sidelined
UNCDF
Overview of major innovations
 Participatory Decision Making & Monitoring
 Decentralized & performance-based funding
 Open Budget Sessions
 Women Empowerment
 Local Resources Mobilization
 Participatory Performance Assessment of UPs
 Transparency and accountability
 Dissemination of lessons learned for policy change
UNCDF
Participatory Decision Making & Monitoring
 Participation of local community in Planning,
Implementation, Monitoring, & Maintenance
 Community ward’s meeting before annual budget
session (at UP level)
 Men and women identify local problems and prioritize
them for immediate solution
 UP plan and budget incorporated in community plan
 UP approved projects are implemented, monitored &
maintained by community committees
UNCDF
Decentralized & performance-based fund
• Annual Development Block Grant directly allocated to
the UPs instead of sub-district
• Use of formula-based predictable grant
• Performance-based financing
• Timely disbursements to the UPs
• Fund owned by UPs
• Dissemination of information to Communities
• 30% of funds earmarked for women
UNCDF
Open Budget Session
•
UP Budget prepared through consultation with
community : opinion of local stakeholders on
allocations to different activities
•
Budget meetings usually attended by 100-500
persons
•
Community’s concerns are reflected in the
budget
•
Community participation in local resource
mobilization
•
Information on different sources of revenue
and expenditures provided to communities
UNCDF
Women Empowerment
• UP Women members are organized / trained
through Women Development Forum at district &
Upazila level.
• At least 30% of local committees are chaired by
female members
• 30% local development fund are earmarked for
women
• Women participation in decision making process
• Advocacy & information on women rights in the
local governments process
UNCDF
Local Resource Mobilization
• Enhancement of local revenue mobilization is one of
the key criteria for accessibility to funds
• Training/Counselling to UPs and Communities
• Local resource mobilized for O&M
• Incentive for performing UPs (e.g. in revenue
collection)
• Community are informed about the use of revenue
collected by UPs.
• Contribute to the government effort to revise model
tax schedule & strategy
UNCDF
Participatory Performance Assessment
•
Assessment of the UP Activities by the community
•
The assessment done once a year in a particular day in
presence of local people
•
The assessment facilitated by UP members or any
persons from community and community representatives
provided score
•
Participation of 100-300 persons (including 20-30%
women) in the assessment workshop
•
Use of public score card to assess the performance of
Ups
•
Links between the results of the performance
assessment and funding & capacity building activities of
UPs
UNCDF
Transparency & Accountability
• Organization of UDC, WDC, SSCs & UFT in a
transparent manner to ensure participation of
community
• Use of scheme information boards, UP notice boards
for information dissemination
- Monitoring activities managed
by community
- Access of communities to UP
financial transactions
- Community gathering at the
start and handover of schemes.
UNCDF
Dissemination of lessons learned
• Performance assessment score card (eventually
introduced nationally by LG Ministry)
• Incentive for the LGIs linked with Performance
outcome
• Organization of local and national workshops
• Wide communication of results and findings of
evaluation studies to constituencies and to policy
makers
UNCDF
Major innovations of the SLGDFP
Appropriate
financing
procedures
Improved
Planning &
Budgeting
SLGDFP
Accountab. &
transparency
with trust and
credibility
Capacity
building for all
stakeholders
Efficient
implement.
& production
UNCDF
V.
2nd Case study :
Local Governance and Development
Management Programme, MALAWI
UNCDF
MALAWI : Country Profile
•
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•
•
•
•
•
Population: about 12 million
Poverty is widespread, deep and severe
65% of population is poor: 28% living in dire
poverty
Life expectancy rate 39 years
Literacy rate 58% (female rate 44%)
Up to 1994: 30 years of autocratic rule, overcentralization and weak local Government
1993: multi-party democracy
1994: first multiparty democratic government
and Government intension to decentralize
UNCDF
District focus for Development Concept
1993: Government adopts the ‘District Focus for
Development Concept’, whose elements are:
• Development planning and management
procedures and institutional arrangements,
• Decentralized Development Financing,
• Capacity building for decentralized development
management,
• National Decentralization Policy formulation
The policy is implemented by the project in 6 Local
Impact Areas (Districts) 1993 – 1997
 Rolled out to the rest of the country 29 Districts
in 1998 (UNCDF/UNDP) under the Local
Governance and Development Management
Programme (LGDMP)
UNCDF
Local Governance & Development
Management Programme (LGDMP)
Objectives:
• Contribute towards the alleviation of
poverty in Malawi by improving governance
through improved broader citizen
participation in decision making and
enhanced performance of central and local
government.
• Develop sub national development planning
system
• Develop decentralised financing mechanism
to meet the challenges of community
development
• Formulation of decentralization policy
UNCDF
Major innovations
of the programme
UNCDF
Sub National Planning System
• Giving to the District Development
Committees responsibility for local
development (= i.e final decision on district
specific development through District
Development Plans)
• Strengthening development institutions
(VDCs, ADCs, DDC)
• Setting planning procedures at all levels
(VAP, SEPS, DDPs)
UNCDF
Sub National Planning System (…)
• Capacity Building: establishing
procedures, institutions and capacities for
communities participation in local
development
• Establishing coordination mechanism
through the setting up of a District
Development Office, District Executive
and Area Executive committees
• Establishing institutions for capacity
building at district, area and village level.
UNCDF
The District Development Fund
• A decentralised development financing
mechanism established and managed at the
district level
 The DDF is designed to respond to issues
and projects that are raised through the
District Development Planning system
 Allocation of funds based on a clear formula
UNCDF
Distribution formula
• National Level
– 5% of National Revenue Net statutory
expenditure
– 20% distributed equally to all district
– 80% based on population, illiteracy
rate, infant mortality rate and access to
safe drinking water
• District level
– 70% of the funds are allocated to
community based projects
– 30% for projects initiated at district
level
UNCDF
National Decentralisation Policy
• 1996 : Commissioning of comprehensive studies
of Decentralization Policy
– Institutional set-up for policy formulation
(Cabinet Committee on Decentralization,
Technical Committee and Decentralization
Secretariat)
• 1998: Decentralisation Policy approved Local
Government Act passed based on the policy
UNCDF
Characteristics of the policy
• Devolving political, administrative and
development authority to the districts
• Integrating governmental agencies at the
district and local level into one local
government administrative unit
• Diverting the centre of implementation
responsibilities
• Promoting popular participation, in the
governance and development management
UNCDF
Other achievements
• Merger of local and district administration to form
one local government secretariat
• Local Government Elections
• Establishment of key Local Government
Institutions including the National Local
Government Finance Committee
• Approval by Parliament of intergovernmental
fiscal transfer formula
• Funding to District Assemblies based on approved
formula including Social Funds
• Integration of MASAF III into Decentralized
Planning and Financing Mechanisms
UNCDF
Other achievements…
• Allocation of funds to assemblies using
the formula
• Establishment of key Local Governance
Institutions including the National Local
Government Finance Committee
• Sustained central government grant
transfers to all local authorities
UNCDF
Major innovations
Financing
Planning &
Budgeting
LGDMP
Accountab. &
transparency
Capacity
building
Implement.
& production
UNCDF
Challenges
(problems still to be solved)
• Slow pace of devolution
• Inadequate capacity at assembly level
• Transferring less funds than indicated in
the policy
• Variation between local priorities and
funding decisions
• Multiplicity of participatory institutions at
the community level
UNCDF
V.
3nd Case study :
Support to Local Government
Projects (in Mopti and Timbuktu)
MALI
UNCDF
MALI
UNCDF :
SUPPORTING LOCAL GOVERNMENTS
(MOPTI AND TIMBUKTU REGIONS)
UNCDF
MALI : COUNTRY PROFILE
POPULATION : 13 million
AREA : 1.204.000 km2
 LIFE EXPECTANCY : 48 ans (men) 49 (women)`
 GDP : 230 $ / capita
 1999 : FIRST LOCAL ELECTIONS (participation rate : 22%)
2004 : SECOND LOCAL ELECTIONS (participation rate: 45%)
MINISTERE DE L’ADMINISTRATION TERRITORIALE ET DES COLLECTIVITES
LOCALES (Ministry of Territorial administration & Local Governments)
Direction Nationale des Collectivités Locales
Agence Nationale d’Investissement des Collectivités Locales (9 élus locaux
faisant partie d’un Conseil d’administration de 12 membres)
HAUT CONSEIL DES COLLECTIVITES TERRITORIALES
UNCDF
TECHNICAL
SUPPORT
DNCT
FINANCIAL
SUPPORT
ANICT
LOCAL GOVERNMENTS
DNCT: Direction Nationale des Collectivités Territoriales (Central Branch)
ANICT: Agence Nationale d’Investissement des Collectivités Territoriales
(Status: Etablissement Public à caractère Administratif)
UNCDF
DNCT: MISSION
DEFINE, CONTROL AND IMPLEMENT THE REGULATORY FRAMEWORK FOR
LOCAL GOVERNMENTS
CARRY OUT BASIC STUDIES TO IMPROVE AND BUILD UP THE
DECENTRALISATION PROCESS
 MONITOR THE LEGAL CONTROL OF THE REPRESENTATIVES OF THE CENTRAL
GOVERNEMENT ON SUB-NATIONAL GOVERNEMNTS
 DEFINE THE TYPE OF SUPPORT NEED BY LOCAL GOVERNMENTS IN ORDER TO
PLAY A CRUCIAL ROLE IN LOCAL DEVELOPMENT AND ADMINISTRATION
STRENGTHEN THE COOPERATION BETWEE LOCAL GOVERNEMENTS AS WELL
AS THE PARTNERSHIP BETWEEN LOCAL GOVERNMENTS AND THEIR PARTNERS
UNCDF
ANICT : THE MISSION
 DISTRIBUTE GRANTS TO LOCAL GOVERNEMENTS IN ORDER TO FINANCE LOCAL
DEVELOPMENT-RELATED INVESTMENT
 FAVOR GRANT PEREQUATION MECHANISMS, WHICH TAKE INTO ACCOUNT THE
DEGREES OF DEVELOPMENT OF LOCAL GOVERNEMENTS, ACCORDING TO
WELL-DEFINED CRITERIA
 ASSIST LOCAL GOVERNEMENTS TO DEVELOP BASIC PRO-POOR INFRASTRUCTURE
AND SERVICES
 ASSIST SUB-NATIONA GOVERNEMENTS TO MOBILIZE INTERNAL FINANCIAL
RESOURCES
 PROVIDE COLLATERAL FOR LOCAL GOVERNEMENTS’ LOANS AIMED AT
FINANCING LOCAL DEVELOPMENT INITIATIVES
UNCDF
UNCDF’S TECHNICAL SUPPORT TO LOCAL GOVERNMENTS
DNCT
NATIONAL COORDINATING UNIT
PACR-TImbuKtu & PACR-Mopti
SUPPORTING THE CRUCIAL ROLE OF LGs
IN LOCAL DEVELOPMENT
PARTCIPATORY PREPARATION OF LOCAL DEVELOPMENT PLANS
PROVIDING TECHNICAL SUPPORT
LOCAL GOVERNMENTS
UNCDF
UNCDF’S FINANCIAL SUPPORT TO LOCAL GOVERNEMENTS
UNCDF
PUBLIC
TREASURY
ANICT : CENTRAL BANK ACCOUNTS
INVESTMENT 95%
ANICT’S ADMINISTR. COSTS 5%
ANICT: LOCAL BANK ACCOUNTS
BLOCK GRANTS TO LOCAL GOV.
MATCHING GRANTS (FROM LOCAL GOVERNEMENTS)
PAYMENT
LOCAL GOVERNMNTS
CONTRACTS
SERVICE PROVIDERS
UNCDF
CONTEXTUAL CONSTRAINTS
SLOW TRANSFER OF SECTORAL RESPONSIBILITIES TO LGs
 LOW MOBILISATION OF LOCAL FINANCIAL RESOURCES
LOW IMPLEMENTATION RATE OF INCOME GENERATING INFRASTRUCTURE
WEAK CONTROL OF LOCAL MANAGEMENT PROCEDURES BY LOCAL
STAKEHOLDERS
FREQUENT TURN-OUT OF STAFF AT LOCAL GOVERNMENT LEVEL
INSUFFICIENT DECONCENTRATION OF LINE DEPARTMENTS
LACK OF SYNERGIE BETWEEN COMMUNITY APPROACHES AND LOCAL
GOVERNEMENT APPROACHES
UNCDF
PACR-T & PACR-M: LESSONS LEARNED
 STRONG CENTRAL GOVERNEMENT INVOLVEMENT
STRONG PARTNERSHIP WITH OTHER DONORS SUPPORTING
DECENTRALISATION AND EFFORTS TO HARMONIZE PROCEDURES
TECHNICAL AND FINANCIAL SUPPORT TO ABOUT 130 LOCAL GOVERNEMENTS
(OUT OF A TOTAL OF 761)
PARTICIPATORY PLANNING AND BUDGETING
 USE OF NON-CONDITIONAL AND PREDICTABLE FUNDS
ADOPTION OF A GENERAL APPROACH SPECIFICALLY AIMED AT EMPOWERING
LOCAL STAKEHOLDERS
UNCDF
Piloting Innovations
for Decentralization Reforms
Local Governments in Local Development
and Poverty Reduction
New York, 21 June 2004
UNCDF