Transcript DECENTRALISATION: Practical Messages

DECENTRALIZATION AND
RURAL SERVICES:
MESSAGES 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
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
Why is rural development not
happening?
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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
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
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
Messages:gkerr
Decentralization: A Dynamic
Institution
• Deconcentration -- central staff to
localities
• Delegation -- to parastatals
• Devolution -- to lower levels of
government
• Privatization -- to private firms
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
Messages:gkerr
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
Messages:gkerr
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.
Messages:gkerr
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
ENDOWMENTS AND OTHER SLOWLYCHANGING FACTORS
The Soufflé Theory
Decentralization
Choices
System Outcomes
System Resu lts
Rural Impact
Political
•Civil Liberties
•Political Rights
•Democratic Pluralis m
Fiscal
•Fiscal Reso urces
•Fiscal Auto nomy
•Fiscal Decisio n-making
•Political Acco untability
•Political Tran sparen cy
•Political Representation
•Res ource M obilization
•Res ource Allocation
•Fiscal Capacity
•Respons ive Services
•Effective Services
•Efficient Services
•Sustainable Services
•Increased Incomes
•Increased Productivity
•Increased Literacy
•Decreased Mo rtality
•Growth of Civ il Society
•etc.
Administrative
Ad ministrativ e Structures
and Systems
•Participation
•Adminis trative Cap acity
•Admin. Accountab ility
•Admin. Transp arency
TIME
Source: Adapted from Parker, Andrew N. 199 5 Decentralization: The Wa y Forward fo r Rura l Development? Policy Research Working Paper 1475. T he Wo rld
Bank , Was hington, DC.
Decentralization: Multiple
Levels
• National Decentralization Framework
and concerns
• Local Service Institutions and concerns
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
Survey Countries
al
go
Co
l
om
bi
a
le
Ph
ilip
pi
ne
s
Ch
i
Po
la
nd
(M
ex
Ka
ico
rn
)
at
ak
a
(In
di
a)
Hi
d
st
an
)
(B
ra
zil
)
(P
ak
i
Ta
nz
an
ia
Ba
hi
a
Pu
nj
ab
al
ia
'Iv
oi
re
Tu
ni
s
D
Se
ne
g
Co
te
ad
es
h
bi
a
Fa
so
Za
m
na
Ba
ng
l
Bu
rk
i
Decentralization Score
National Decentralization in 15 Countries, 1990-95
10
9
8
7
6
5
4
3
2
1
0
Survey Countries
al
go
le
Co
l
om
bi
a
Ph
ilip
pi
ne
s
Ch
i
Po
la
nd
(M
ex
Ka
ico
rn
)
at
ak
a
(In
di
a)
Hi
d
st
an
)
(B
ra
zil
)
(P
ak
i
Ta
nz
an
ia
Ba
hi
a
Pu
nj
ab
al
7
ia
'Iv
oi
re
8
Tu
ni
s
D
9
Se
ne
g
Co
te
ad
es
h
bi
a
Fa
so
Za
m
na
Ba
ng
l
Bu
rk
i
Decentralization Scores
National Political, Administrative, and Fiscal Decentralization in 15 Countries, 1990-95
10
Political Score
Administrative Score
Fiscal Score
6
5
4
3
2
1
0
Eg
yp
t
ad
es
h
al
Survey Countries
Ch
i
le
NT
T
(B
ra
zil
)
(In
do
ne
sia
)
Po
la
nd
Ph
ilip
pi
ne
s
Co
lo
m
Jia
bi
ng
a
xi
(C
hi
na
)
Ba
hi
a
Tu
Ka
ni
rn
si
at
a
ak
a
(In
di
a)
Za
m
bi
a
Pu
nj
ab
Ta
nz
an
ia
(P
a
ki
Hi
st
da
an
lg
)
o
(M
ex
ico
)
Ba
ng
l
Se
ne
g
(N
ig
er
ia
Co
)
te
D
'Iv
oi
Bu
re
rk
in
a
Fa
so
Im
o
Decentralization Score
Rural Service Decentralization in 19 Countries, in the 1990s
10
9
8
7
6
5
4
3
2
1
0
Eg
yp
t
ad
es
h
al
Survey Countries
(B
ra
zil
)
(In
do
ne
sia
)
Po
la
nd
Ph
ilip
pi
ne
s
Co
lo
m
Jia
bi
ng
a
xi
(C
hi
na
)
NT
T
Fiscal Score
le
7
Ch
i
Administrative Score
Ba
hi
a
8
Tu
Ka
ni
rn
si
at
a
ak
a
(In
di
a)
Za
m
bi
a
Pu
nj
ab
Decentralization Score
9
Ta
nz
an
ia
(P
ak
Hi
ist
da
an
lg
)
o
(M
ex
ico
)
Ba
ng
l
Se
ne
g
(N
ig
er
ia
Co
)
te
D
'Iv
oi
Bu
re
rk
in
a
Fa
so
Im
o
Rural Service Political, Administrative, and Fiscal Decentralization in 19 Countries, 1990-95
10
Political Score
6
5
4
3
2
1
0
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
Messages:gkerr
How can we improve the impact
of decentralization?
• Ensure a balanced approach -- address all three
dimensions
• Focus on key system outcomes and results
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accountability
transparency
representation
local resource mobilization
local institutional capacity
local voice
sustainability
Messages:gkerr
ENDOWMENTS AND OTHER SLOWLYCHANGING FACTORS
The Soufflé Theory
Decentralization
Choices
System Outcomes
System Resu lts
Rural Impact
Political
•Civil Liberties
•Political Rights
•Democratic Pluralis m
Fiscal
•Fiscal Reso urces
•Fiscal Auto nomy
•Fiscal Decisio n-making
•Political Acco untability
•Political Tran sparen cy
•Political Representation
•Res ource M obilization
•Res ource Allocation
•Fiscal Capacity
•Respons ive Services
•Effective Services
•Efficient Services
•Sustainable Services
•Increased Incomes
•Increased Productivity
•Increased Literacy
•Decreased Mo rtality
•Growth of Civ il Society
•etc.
Administrative
Ad ministrativ e Structures
and Systems
•Participation
•Adminis trative Cap acity
•Admin. Accountab ility
•Admin. Transp arency
TIME
Source: Adapted from Parker, Andrew N. 199 5 Decentralization: The Wa y Forward fo r Rura l Development? Policy Research Working Paper 1475. T he Wo rld
Bank , Was hington, DC.
Political Representation?
• Develop policies to
– encourage local competitive political
system
– ensure that local politicians represent local
groups
– enable local NGOs for disadvantaged
groups
Messages:gkerr
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
Messages:gkerr
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
Messages:gkerr
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
Messages:gkerr
Administrative
Decentralization?
• Deconcentration is only the first
stage of administrative
decentralization and may hinder
further progress
• Delegation of administration to civil
society is important
Messages:gkerr
Administrative Capacity?
• Design programs so that:
– local managerial and technical
expertise is recognized and used
– local knowledge is incorporated into
program -- voice
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
Messages:gkerr
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
Thank
you