Integrated planning, budgeting and the role of Intergovernmental Relations

LLM Local Government Lecture UWC

17 August 2012

Johann Mettler

PRESENTATION OUTLINE

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Integrated development planning and processes The role of IGR

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Introduction

   IDP process is about planning (process) for planning (IDP); An annual IDP Review process requires 9 months planning process;  It involves a wide range of role players from inside and outside of the municipality; This process needs proper organization and preparation (institutional arrangements, mechanisms and procedures for public participation and alignment with external stakeholders, roles and responsibilities, action programme, relevant documentation, and cost estimates).

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Legal Requirements

• Municipal Systems Act, 32 of 2000 (MSA) – S 28 requires the adoption of a process set out in writing by each municipality which is supposed to guide the planning, drafting, adoption, and review of the IDP. This written document is in short called the “Process Plan”.

• Section 34 of MSA – Review IDP in accordance with performance measurements, and to the extent that changing circumstances so demand; and – May amend the IDP in accordance with prescribed process.

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Purpose of IDP review

• • • Ensure relevance as strategic plan; Inform other components of the municipal business process; Inform cyclical intergovernmental planning and budgeting cycle.

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Institutional Arrangements

• Municipalities need to establish a set of structural arrangements in order to: – Institutionalize participation; – Effectively manage drafting of outputs; and – Give affected parties access to contribute to the decision- making process.

• The following structures/ persons are recommended: – – – Municipal Manager/ IDP Manager IDP Steering Committee IDP Representative Forum – Project Task Teams (Phase 3): Sector/ technical people "A Place of Excellence"

Mechanisms and procedures for public participation

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Community and stakeholder organizations are critical, ensuring that IDP addresses the real issues.

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Participation of communities has to be seen within a wider context serving the four major following functions:

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Needs orientation

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Appropriateness of solutions

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Community ownership

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Empowerment

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Alignment with other spheres of government

 The national sphere: provide a framework for sectoral, provincial and municipal planning;  The provincial sphere provide a more specific framework as a joint point of reference;  The local government sphere has to elaborate a 5 year IDP as part of an integrated system.

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Mechanisms and procedures for alignment

 The IDP process is a local process requiring input and support from other spheres of government, at different stages.  Alignment is the instrument to synthesize and integrate planning process between different spheres of government.

 Two types of alignment required:  Between municipalities and relevant district; and  Between local government (municipalities/ districts) and other spheres  Province should play a coordinating role ensuring that all other spheres and especially sector departments understand the need for alignment and their role within the local IDP process.

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Aligning municipal sector planning and IDP

The Municipal Systems Act states that the development strategies must be aligned with national and provincial sectoral plans and planning requirements, and they vary in nature in the following categories:

Category Sector requirement Distinct plans

Water Services Development Plan (WSDP); Integrated Transport Plan (ITP); Integrated Waste Management Plan (IWMP), etc.

Sector plans to be incorporated into the IDP IDP compliance

Integrated Sustainable Human Settlement Plan (ISHSP); Local Economic Development (LED) Strategy; Coastal Management Plans; Spatial Development Framework (SDF), Disaster Management; etc.

National Environmental Management Act (NEMA) principles; etc.

Value adding contributions

Local Agenda 21; Millennium Development Goals; Organisational Structure (Macro); Employment Equity Plan; Poverty Alleviation Strategies, Gender

Strategies; etc.

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Roles and Responsibilities

Municipal Council:

• Approve the Process Plan • Final decision-making/ approval of IDPs • Monitoring from planning to implementation

Executive Mayor/ Mayoral Committee:

• Decide on planning process (nominate person/s in charge) • Overall management and coordination (make sure that all relevant sectors are involved)

Councillors:

• Linking IDP process to their constituencies and/or wards • Organize public participation "A Place of Excellence"

Roles and Responsibilities

Municipal Manager/ IDP Manager:

• Prepare the Process Plan • Overall management and co-ordination • Ensure participation of all relevant sectors • Day-to-day management of the Process Plan • Ensure that the planning process is participatory, strategic and implementation is aligned • Respond to comments on the draft IDP • Ensure proper documentation of the results of the planning of the IDP document • Adjust the IDP in accordance with the MEC for Local Government’s proposals

Heads of Departments:

• Provide technical, sector and financial information • Prepare revised project proposals and amendments • Prepare amendments to the draft IDP for submission to Council and MEC "A Place of Excellence"

Action programme

 The Action Programme is a component of the Process Plan which answers the following questions: – What; when; how; by who; and which resources will be required etc.

 The Action Programme should be known by all role players.

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The role of IGR

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• • • •

INTRODUCTION/ BACKGROUND

One of the most pervasive challenges facing LG is need to redress poverty, underdevelopment and unemployment. All spheres of govt are obliged by our Constitution to provide effective, efficient, transparent, accountable and coherent government for the country. Cooperative govt is thus the hallmark of the constitutional system . A challenge which can only be addressed through concerted effort by all spheres and tiers of LG to integrate their actions, as far as is practical and necessary, in providing services and developing our areas/ regions. Co-operative govt is the marshalling of the distinctive effort, capacity, leadership & resources of each municipality; and directing these as effectively as possible towards the dev & service delivery objectives of region as a whole.

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LEGISLATIVE FRAMEWORK

• • • • • Section 41(2) of Constitution requires that an Act of Parliament must: establish or provide for structures and institutions to promote and facilitate intergovernmental relations, and to provide for appropriate mechanisms and procedures to facilitate the settlement of IGR disputes. The IGR Framework Act (the Act) took effect in 2005 and gives effect to this constitutional requirement, and provides for an institutional framework for interaction between national, provincial and munis & all organs of state within those spheres. This legislation was intended to provide more certainty, coherence, transparency and stability to the practice of IGR throughout the country. The framework provided by the Act is the primary institutional mechanism for achieving intergovernmental coordination. The ultimate objective, however, is to provide the necessary vehicle to

facilitate effective delivery.

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IGR FRAMEWORK ACT (CONT.)

• • • • The Act provides a general framework applicable to all spheres and sectors of govt while it recognises the fact that other Acts of the Parliament have created specific forums contemplated in section 41(2), and thus limits its role to establishing a general legislative framework. The forums created by the Act facilitate the monitoring of how policy and legislation are implemented to ensure that legislative intention translates into tangible, measurable results. The Act attempts to: – Reflect on and codify best practices on IGR since 1994; – Establish common approaches and understanding of IGR; and – Provide greater predictability and uniformity in core IGR areas such as intergovernmental development planning; coordinated implementation and service delivery; uniform approaches to IGR forums and predictable approaches to addressing IGR disputes.

– Formalise relations between and within spheres ie. between district and local municipalities. In the end, the Act is just a framework and cannot create effective

intergovernmental relations.

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WHAT IS IGR?

• • • • • At its most basic level, IGR is about relations between spheres or tiers of govt & how these can be made to work together for benefit of residents. IGR incorporates political leadership & directing role players towards the common political priorities.

– Is the processes through which political priorities are harmonized to flow in the same developmental direction. IGR is the set of multiple formal and informal processes, channels, structures and institutional arrangements for bilateral and multilateral interaction within and between spheres of govt. IGR is both complex and fluid. – It can be understood in a narrow, technical and legalistic manner; – it can be seen as an inherently political phenomenon; – can be understood as a management tool to facilitate coordination; – or it can be thought of as a particular mindset/ attitude towards working cooperatively towards common goals. Ultimately, it is a combination of these approaches. "A Place of Excellence" 18

SIGNIFICANCE OF IGR

• • • • • From the perspective of residents and investors there is only one ‘govt’. Communities are not interested in which municipality or department is responsible for providing housing, sanitation or health care and become frustrated when municipalities appear to pass accountability to other provincial or national depts.

IGR structures thus play a crucial role in forging coherent govt in the region in that they establish platforms for engagement to take place between the various municipalities’ policy direction as well as the distinctive service preferences of sector depts, stakeholders and partners.

Clear lines of authority and accountability between the various role players in the IGR arena is thus one of the most important instruments for coordinating integrated action. The primary object of co-operative govt is thus not cooperation for its own sake, but rather to provide effective and efficient govt and maximise resources / impact. "A Place of Excellence" 1 9

VALUE-ADD OF IGR

• • • • The point of departure and underlying premise of our IGR approach, however, is that IGR must be measured terms of development

results rather than in terms of processes, forums, and meetings.

Indeed, IGR has been seen as a process, with various structures, but which have largely not been content driven. But development is about content and IGR is merely a vehicle for driving content – what are we trying to deal with, how should we do it, what are the challenges, who does what, how do we resource our activities, what enabling mechanisms do we put in place, and so forth – that is all IGR is meant to facilitate! IGR and co-operative govt in particular must have this developmental character if it is to add value and be meaningful. "A Place of Excellence" 2 0

ASSESSMENT OF IGR PRACTICE

• • • • • • • • Since Act took effect = proliferation and mushrooming of IGR structures.

There has been an erratic and unfocused participation in coordination structures, with ltd or no shared information particularly around planning and, in particular, IDP and provincial planning alignment.

It is clear that the Act will not by itself achieve the desired outcomes of cooperative govt - non-statutory measures must ensure that the system works in a predictable yet flexible manner. Assumption seemingly prevalent in the Constitution and the Act is that the spheres of govt would work together almost spontaneously and organically. However, is precisely the failure of govt to work in this manner that the need for a rationalised/ more strategic approach to IGR arises.

While achievements have been made in establishing form and laying the foundations required, the substance of IGR engagements leaves much to be desired. The no. of forums and engagements should be revisited & rationalised to give effect to the legislative intent and focus IGR engagements on outcomes.

Guided by the constitutional principle of co-operative govt, our approach must be more structured to achieve our, often overlapping, goals through strategic engagement. "A Place of Excellence" 21

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ASSESSMENT OF IGR PRACTICE

IGR forums often convene on ad hoc basis & are not informed by the planning & budget processes which occur at specified times in the calendar. Poor alignment between policy making and resource allocation has caused sharp divergence between policy intentions and actual outcomes. Alignment of various IGR structures & lack of coordination problems due to: – Processes & engagements are not well coordinated nor strategically

focused on outcomes.

– Lack of institutional linkages between various IGR forums at both admin & political levels, & vertical political and technical structures • agendas between technical & political forums are often unrelated, making IGR engagement meaningless – Equally lacking is linkages between diff sectoral structures • linkages are necessary to minimise duplication and enhance efficiency What’s missing? – Vertical alignment with PCFs and provincial planning and budgeting processes – Horizontal integration/alignment between district and local priorities "A Place of Excellence" 22

ASSESSMENT OF IGR PRACTICE

• • • • • That said, however, there is, increasingly, recognition of just how daunting a task cooperative governance is in light of the varied roles and resources of the different spheres to invest in the same physical spaces. It is challenging, if not near-impossible, to completely synchronise the planning and delivery cycles of all role players, as required by the sustainable human settlements approach to infrastructure investment and maintenance. But the plethora of policies, action plans, programmes of action and the like have contributed to the mishmash of unstructured IGR engagement. Indications are that the existing IGR structures provide a sound mechanism for communication but are less successful in prioritisation, strategic planning, agreed decision making and proper consultation between the spheres – this is where our focus should be (tangible outcomes). With the exception of the budget process, the disjuncture between the legislative intention, foreseen outcomes and impact and its actual realisation in practice has resulted in severe inefficiencies and a general lack of integrated planning and coordination of action, both horizontally & vertically across spheres. "A Place of Excellence" 23

DISTRICT IGR (HORIZONTAL IGR)

• • • • • Each district must have a DCF (which must meet at least once per annum) and supporting technical structures.

Role of DCF is to ensure coherent planning and development in the district and the coordination of strategic plans, priorities and objectives for the municipalities in the district.

Must also consider nat and prov policy and legislation affecting LG interests (SALGA) and matters arising from the provincial IGR structures. Functioning – Focus of good IGR engagements: • IDPs and budget alignment • District-wide projects/shared services What’s missing in most IGR structures at District level (nationally)? – Vertical alignment with provincial plans and projects – Horizontal integration/alignment ie. integration of district projects "A Place of Excellence" 24

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CHALLENGE OF HORIZONTAL ALIGNMENT

District IGR Structures in totality are expected to align their IDPs, budgets and programmes, first internally among all the constituent LM’s in the district, and then to the provincial strategies and programmes in one process. We must shape our IGR engagements around the key issues which provide the strategic direction for IGR engagement in the district – focus on catalytic issues. A more strategic focus will allow us to find consensus on the state of the district, areas of greatest need and priority spending of ALL government resources in our respective areas, minimise duplication and maximise the use of ltd resources. Thus, for example, in the lead up to the adoption or review of the District IDP, the district IGR structures should ensure that the IDPs of the local municipalities and the district are aligned and that it is consistent with the provincial plan of action in that district. "A Place of Excellence" 25

HORIZONTAL ALIGNMENT

• • • We must develop long term planning to inform shorter term plans, resource allocation and trade-offs. Critical success factors for effective horizontal alignment of Integrated Development Plans include: – Participation by all municipalities in designing a District IDP Framework and adherence by all in aligning and executing all process plans accordingly; – – – The IDP Alignment Processes, including cross-boundary collaboration requirements; Strengthening the strategic planning role of District Coordinating Forum; and Adoption of District IGR Framework and institutional mechanisms that coherently links the IGR structures to the IDP’s of all municipalities in the district. – We must also bear in mind unequal capacity between the LM’s. Joint planning, including finding consensus on the state of the district, areas of greatest need and priority spending of ALL govt resources, is critical in achieving accelerated and effective service delivery. "A Place of Excellence" 26

VERTICAL ALIGNMENT

• • • • • A number of questions have to be considered in this regard, including: – What is ideal and what is practical in terms of integrated planning? – How does provincial government become a partner in the IDP development process and ensure that all of provincial APPs are reflected in IDPs and vice versa? – How should IGR engagements be structured so that the strategic agenda guides the functional line discussions? A measure of flexibility must be a key feature of approaches to IGR and each sphere must recognise the limits and constraints of the other, particularly in funding. The number of forums and engagements should be rationalised to give effect to the legislative intent and focus IGR engagements.

Given the dense and extensive network of relationships between prov depts and LG, the key question is how we manage and structure these relationships to achieve optimal effect and efficiency.

In particular, the IDP Indabas, LGMTEC and IDP Analysis should be revisited to minimise duplication. "A Place of Excellence" 27

VERTICAL ALIGNMENT

• • • • • This is premised on the belief that the IDP remains the critical space for the shifting of the development path of provinces. The IDP and budget approval process is therefore not only a, but the major site for the implementation of the Growth Path. If APPs give effect to the PGDS, and the APPs are a product of provincial local negotiation on local priorities, only then will real integrated development planning result. The provincial specific IGR Framework needs to ensure that the timing and content of these engagements results in better integration of provincial-LG action – the calendar and content must be planned and developed against specific key moments in the year take place at standard times in the year. In this way, the IDP informs the ‘planning agenda’ of intergovernmental engagements through a clear geographic investment plan and spatial logic that guides the multi-year investment plan of the whole of govt (but especially prov govt) in a municipal area, resulting in better co-ordination of planning and budgeting – IDPs will only then be the focal point of intergovernmental engagement. "A Place of Excellence" 28

IMPLEMENTATION PROTOCOLS

• • • • While the budget cycle, integrated planning and IGR structures are critical tools that assist in dealing with strategic and planning issues, they are not suited to realise the details of joint implementation of policy or the joint delivery of services. This is why Implementation Protocols are useful tools for the practical application of co-operation and co-ordination. Implementation Protocols: – – – – – Set out clear outcomes of the joint work; Detail who is responsible for what task; Determine what resources are required for the task at hand and who will provide them; Set performance indicators; Put in place oversight mechanisms to ensure that outcomes are indeed achieved.

An Implementation Protocol should be used where multiple entities must co ordinate their actions in order to implement a policy, exercise a power, perform a statutory function, or provide a service. "A Place of Excellence" 29

A few pointers

• • • • • We must use IGR as the vehicle to drive content and development, as clearly evidenced in some international contexts, such as France, where LG is the focal point of all of govt delivery and all projects must be driven through and implemented by the Municipal Council of the affected area. Main objective of our IGR Strategy must be to shape / guide the content of our engagements to ensure that our IGR structures have a strategic agenda that underpins it in order to achieve maximum impact. This approach, while by no means being the complete panacea, may go a long way towards providing a strategic thread to drive alignment and coherence within and between the District and LMs and the District and prov govt. The municipal IDP space remains the key instrument and catalyst for shaping development – it must shape ‘sustainable human settlements & a viable local economy’ and be the tool that spatially brings the various spheres and role players to ‘act as one entity’. At the very least, if the ills of duplication and disparate planning and investment can be nursed to be less wasteful, we will go some way towards maximising the impact of our limited resources. "A Place of Excellence" 30