Transcript Document 7173591

Supporting Decentralization as an Entry Point for
Governance Reform in Sierra Leone
Yongmei Zhou (AFTPR)
Governance and Anti-corruption Core Course (Apr 23, 2007)
1
Governance in CAS: Perspective of a
Governance Specialist
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Why and how did we choose a few entry points
when governance shortcomings were pervasive?
What’s the role of a governance specialist in the
Country Team? How to generate support among
country team colleagues and development partners
for a multi-sectoral agenda?
This presentation focuses on the accountability and
empowerment story, not the growth story
2
Sierra Leone: a poor post-conflict
country
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5 million population
Civil war (1991-2002) displaced half of population, caused
20,000 death, and destroyed infrastructure and social capital
176th out of 177 in UN HDI ranking
Infant mortality: 166 out of 1000; SSA average: 101; world
average 57.
Under-5 mortality: 284 out of 1000; SSA average: 171; world
average 86.
Life expectancy 37; SSA average: 46; world average: 67.
Adult literacy: 36%; SSA average: 71%; world average 80%
3
Extreme poverty and regional
inequality
Sierra Leone Poverty Headcount (%)
Absolute Poverty Line: Le 786,204; Extreme Poverty Line: Le 365,835
Source of data: SLIHS 2002-3
90
Absolute poverty headcount (individuals), %
80
Absolute poverty headcount (individuals), %
70
60
50
40
30
20
10
0
Freetown
Other urban
Rural
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Causes of conflict
 Post-independence
deterioration in governance
 Local councils dissolved in 1972
 Centralization of power, resources and corruption in
Freetown
 Rural population deprived of economic
opportunities, education, political participation
 Marginalization of youth from decision-making
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Numerous studies identified pervasive
governance shortcomings
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Studies: Governance and Anti-Corruption Survey
(2003), ESW “Strategic Options for Public Sector
Reform” (2004), CFAA (2002), HIPC AAP (2004),
Legal and Judicial Sector Assessment (2003)
Findings
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Overly centralized control of resources and lack of
checks and balance
Rampant informality and corruption in public sector
Very limited capacity in public sector
Lack of citizen/business confidence in state institutions
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Good Governance has many entry points – the
broad view today
Citizens/Firms
Political Accountability
• Political competition, broad-based political parties
• Transparency & regulation of party financing
• Disclosure of parliamentary votes
• Independent, effective
judiciary
• Legislative oversight
(PACs, PECs)
• Independent oversight
institutions (SAI)
• Global initiatives: UN,
OECD Convention,
anti-money laundering
Effective Public Sector
Management
• Ethical leadership: asset
declaration, conflict of
interest rules
• Cross-cutting public
management systems:
meritocracy, public finance,
procurement
• Service delivery and
regulatory agencies in sectors
Civil Society & Media
• Freedom of press, FOI
• Civil society watchdogs
• Report cards, client surveys
Private Sector Interface
• Streamlined regulation
• Public-private dialogue
• Extractive Industry
Transparency
• Corporate governance
• Collective business associations
Citizens/Firms
Citizens/Firms
Formal Oversight
Institutions
Decentralization and Local Participation
•
•
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Decentralization with accountability
Community Driven Development (CDD)
Oversight by parent-teacher associations & user groups
Beneficiary participation in projects
Citizens/Firms
7
What to bet on – back in 2003?
Decentralization and Empowerment?
Public Financial
Management Reform?
Human Resource
Management
Reform?
Judicial Reform?
8
IDA made a high-stake bet on
devolution and empowerment
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2004, IDA $25m Institutional Reform and Capacity Building Project
2005, JSDF $2m for strengthening community collective action &
engagement with local councils
2005, PHRD grant $900,000 for strengthening leadership of the
decentralization process
Existing social action project (NSAP, 2003-2008, $35m) adopts a
strategy to support decentralization and strengthen local council
capacity
2006, DfID and EU gave a $25m trust fund to the World Bank to top
up IRCBP
2006: JSDF $900,000 for an NGO providing primary justice service to
rural people
2007: Accelerated Child Survival Project ($35m) to strengthen gov
health grant system and LGs capacity to deliver
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Create enabling conditions for effective local
governance
Central government enabling conditions
allowing fiscal and administrative autonomy, adequate &
predictable transfers, refrain from political interference,
domestic accountability mechanisms
Local government capacity
and governance practice
Citizen and business engagement
open and accountable local political
process, civil society and media oversight,
public-private partnership
Community collective
action
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IDA also supports sustained PFM
reform
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PFM reform history (attached)
IRCBP and Budget Support operations supports
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Legal and regulatory reform
IFMIS
Procurement reform
Local government financial management capacity
building
Budget reform
This new phase of PFM reform is driven by the
decentralization process
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What did we choose NOT to invest in?
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Civil service reform: no champion
Legal and judicial reform: proposal too expensive
and not convincing
12
Why betting on a
decentralization-driven
governance reform program?
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Some criteria for a good entry point for
governance reform
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A good thing to do
A good time to do it
Some influential people lose sleep over it
Can lead to visible and quick enough improvement in
something that people care about
Can generate further momentum and expand constituency
for longer-term governance transformation
Q: Was devolution a good entry point in the Sierra Leone
context?
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A good thing to do, at least in theory
Addressing a root cause of the civil war – centralization of
power and resources and resultant inequality and rampant
corruption.
 Opening space for political participation
 More transparent and equitable resource allocation across
districts
 Bringing resource closer to frontline providers and hopefully
better delivery
 Bringing the state closer to citizens and hopefully building
state legitimacy
 Risk of local capture and corruption to be explicitly
addressed
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Window of opportunity & just-in-time
support
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IRCBP preparation phase coincided with GoSL
preparation for LG legislation and elections
Immediate engagement with newly elected LGs
Start a virtuous cycle
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MoF counting on fiscal decentralization to improve
effectiveness of public spending
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Sustained efforts to improve effectiveness of public
spending in the past decade (see PFM reform history)
MoF frustrated with pervasive leakages of resources
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PETS 2002: less than 10% of all essential drugs could be accounted
for by District Medical Officers; less than 5% of all essential drugs
were accounted for by periphery health units.
PETS 2002: only 72% teaching and learning materials reached the
intended schools from District Edu Offices, arriving 170 days later
than contracted.
PETS 2003: Receipt of seed rice: 8% before planting season; 35%
during planting season; 57% after planting season
Establish Local Gov Finance Department to focus on
fiscal decentralization
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Early results and effective
communication are the key to
expand constituency and open
more doors for reform
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Building constituency for decentralization
through LC Rapid Results Initiatives
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Immediately after LC elections, central government challenged
and supported each LC to identify, design, and implement one
Rapid Result Initiative that was
 Urgent and compelling
 Visible – people will notice the difference
 Can be translated into real impact in 100 days
MLGCD Decentralization Secretariat provided coaches
MoF disbursed Local Government Development Grant four
months after elections
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LCs did not disappoint
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LCs RRIs tackled diverse development issues: water,
sanitation, feeder roads, bridges, traffic, rice production,
post-harvest loss. Examples of results:
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Travel time between Sewafe and Peya of Nimiyama Chiefdom of Kono
District reduced from 1hr to 15 minutes and transportation cost reduced
from Le 5,000 ($1.75) to Le 2,000 (70 cents).
Increase the availability of high-yield quick-harvest Inner Valley Swamp
Rice seeds in Pujehun District by 4,000 bushels within 90 days
Ensure the availability of safe and portable drinking water in the mains
and laterals and 25 public taps in the Moyamba township within 90 days.
Total volume of Garbage in two lorry parks and two markets in Kenema
Township reduced by 90% within 95 days.
Cheaper and faster than MDA projects
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LCs RRIs to generate a virtuous cycle
Given opportunity to learnby-doing, Progressive LGs establish track
record, develop capacity and
motivate other LGs to catch up.
LGs exercise authority and
accumulate capacity. LGs adopt
inclusive accountable practices.
Central Government
and donors
willing to transfer
resources to LGs with
good track record.
Citizens and firms perceive relevance of
LGs and engage in collective action
(express demand for public service,
participate in co-production,
hold LGs accountable,
pay taxes).
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And preventing a vicious cycle of
deteriorating local governance
LGs:
capacity low,
Some corrupt
Inadequate and/or
unpredictable
transfers; limited
autonomy & authority;
Weak monitoring
Citizens and firms discount
LGs relevance and
do not participate in
LGs decision process
and do not pressure for
performance.
Low impact of
LG spending
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Sector RRIs to give credibility to
sector devolution
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Sector staff performing functions related to primary
health, crops/livestock, DEC schools received
orientation of the Rapid Results Approach.
RRIs developed by sector teams
Local council sector committees would monitor the
progress of the sector RRIs: accountability and
partnership between politicians and professionals.
Each RRI team would include members from
beneficiary communities
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Are purseholders aware of
LG achievement
and willing to
further empower
progressive LGs?
Given opportunity to learnby-doing, Progressive LGs establish track
record, develop capacity and
motivate other LGs to catch up.
LGs exercise authority and
accumulate capacity. LGs adopt
inclusive accountable practices.
Central Government
and donors
willing to transfer
resources to LGs with
good track record.
Citizens perceive relevance of
LGs and engage in collective action
(express demand for public service,
participate in co-production,
hold LGs accountable,
pay taxes).
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Negotiation with MoF: improving LG
budget predictability and autonomy
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Increasing share of budget as grants to LGs:
4.4% non-salary non-interest recurrent budget
in 2005; 8.7% in 2006; 13.2% budgeted in 2007.
Treating grants to LGs as priority budget items
Reduce cumbersome bureaucracy in grant
transfer process
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237 signatures per grant per quarter * 14 grants * 4
quarterly payments/grant = 13,272 signatures a year!
Recently consolidated grants and forms
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Field trips to build understanding and
confidence in LGs and communicate
management support
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Field trip in every supervision mission (joint with
DfID/EC/UNDP): make both progress and
challenges transparent
Feb 2006 Country Program Portfolio Retreat:
participation by sector colleagues and sector
managers
2005 MD/CD visit; Jul 2006 PW visit
Mid-term review: invite sector colleagues
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Set standards for accessing LGDG: results
from 1st Comprehensive LG Assessment
Source: Comprehensive Local Government Performance Assessment (Nov 2006)
Legend
5
minimum conditions
4
minimum conditions
3
minimum conditions
2
minimum conditions
0-1
minimum conditions
7 Minimum conditions
1.
2.
3.
4.
5.
6.
7.
Financial management
Development planning
Budgeting and accounting
Procurement
Transparency and
accountability
Project implementation
Functional capacity of LG
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LCs adopting good governance practices,
many not yet adopted by ministries
Source: Comprehensive Local Government Performance Assessment (Nov 2006)
Legend
70 - 88 points
60 - 69 points
50 - 59
points
30 - 49
points
Performance measures
1.
2.
3.
4.
5.
6.
7.
Management, organization and institutional
structures
Transparency, openness, participation and
accountability
Planning systems and project implementation, M&E
Human resource management
Financial management, budgeting and accounting
Fiscal capacity and local revenue mobilization
Procurement and contract management
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Expanded support for LGs and
investment in grant system
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GoSL & IDA/DfID/EC co-finance discretionary
Local Gov Dev Grant: allow LCs discretions and
build in incentive in grant allocation formula.
IDA social fund (NSAP)
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Feeder road component has been adjusted to provide
direct financing to LGs and strengthen LGs capacity
to manage public works projects
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District Medical Officers embraced
decentralization
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Primary health service delivery responsibilities devolved to
LCs in 2005, along with tried grants
DMO is part of LC Management Team and a co-signatory of
LC health grant account
DMO enjoys operational autonomy
“Decentralization has stopped the tide of brain drain among medical
professionals because we now have interesting work to do.”
“Decentralization allows us to quickly respond to disease outbreaks. We
don’t have to wait for the ministry.”
“Decentralization means if I have a problem I can knock on the doors of
our council rather than sitting on a long bench in Youyi Building for a
week and waiting for an audience with a ministry official.”
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Health Care Services at PHUs did not deteriorate
after devolution in 2005
Source: IRCBP Health Clinics Surveys 2005-2006
fraction of clinics...
open at arrival
with patients present
in a good-quality building
with an improved water source
with a working fridge
with a latrine
0
.2
.4
2005
.6
.8
1
2006
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Health Care Services at PHUs did not deteriorate
after devolution in 2005 (continued)
Source: IRCBP Health Clinics Surveys 2005-2006
average fraction of...
required staff posted
important drugs in-stock
important supplies in stock
0
.2
.4
2005
.6
.8
1
2006
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IDA & DfID to transfer sector investment
funds to LGs through grants system
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World Bank and DfID health sector support:
provide financing through GoSL LC grants
system, improving M&E, supporting district
health management teams to implement their
sector plans and budget
DfID water sector support to follow similar
approach
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Need to continue expanding constituency for
decentralization: scope for more CT synergy
Perception of agency commitment to decentralization by 110 participants in the 2nd National Decentralization
Dialogue (Dec 2006)
Sierra Leone Road Authority
Min Education
Sierra Leone Water Company
National Commission for Social Action
MLGCD
MoF
Min Food and Agric
Min Health and Sanitation
IRCBP team
World Bank
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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Stimulating citizen demand for good
governance is an area that greatly
benefits from collaboration with
development partners
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Given opportunity to learnby-doing, Progressive LGs establish track
record, develop capacity and
motivate other LGs to catch up.
Central Government
and donors
willing to transfer
Do citizens know
resources
to LGs with
what LGs are
goodDotrack
doing?
they record.
care? Does
consent translate
into voluntary tax
compliance and
civic activism?
LGs exercise authority and
accumulate capacity. LGs adopt
inclusive accountable practices.
Citizens perceive relevance of
LGs and engage in collective action
(express demand for public service,
participate in co-production,
hold LGs accountable,
pay taxes).
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Does performance comparison lead to
political competition?
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Hypothesis: with a good communication program,
comparative performance data can serve as
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Stimulant for peer learning and performance
improvement
Trigger for political competition and civic activism
Whether disseminating comparative performance
information among electorates will affect political
fortune of councilors remain to be seen.
37
Good-practice LCs get award from MLGCD and bonus
grants from MoF, but are people asking their laggard
LCs tough questions?
Legend
70 - 88 points
60 - 69 points
50 - 59
points
30 - 49
points
Performance measures
1.
2.
3.
4.
5.
6.
7.
Management, organization and institutional
structures
Transparency, openness, participation and
accountability
Planning systems and project implementation, M&E
Human resource management
Financial management, budgeting and accounting
Fiscal capacity and local revenue mobilization
Procurement and contract management
38
Are people wondering why councils are paying such
different prices for similar furniture?
Cost of an average set of office furniture (56 conference chairs, 4 computer workstations, 7 office desks, 2 small conference tables, 1 large
conference table, 4 executive desks), using actual unit prices paid by LCs
35,000,000
30,000,000
25,000,000
20,000,000
15,000,000
10,000,000
5,000,000
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0
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Rural people start knowing their councilors but
they are far more familiar with their chiefs
Knowing the authorities
Source: GoBifo/IRCBP/ENCISS Joint Household Survey in Bonthe and Bombali Districts (Dec 2005)
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
Bombali District
Bonthe District
Percent of respondents able to correctly name the Chairperson of their Local Council
Percent of respondents able to correctly name the Local Councillor from their ward
Percent of respondents able to correctly name their Section Chief
Percent of respondents able to correctly name their Paramount Chief
40
Gender and age gaps in political awareness,
activism and confidence
Source: GoBifo/IRCBP/ENCISS joint household survey in Bombali District and Bonthe District (Dec 2005)
100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
% who attended a meeting in
the last year and spoke at the
last meeting they attended
% able to correctly name Local
Councillor or Local Council
Chairperson
Female (8-24)
% reported voting in last
general election (2002)
Female (25-35)
% reported voting in last local % believing they have some or % believing they have some or
government election (2004)
little chance (rather than no
little chance (rather than no
chance) in changing unjust
chance) in changing unjust
chiefdom law
local council law
Female (>=36)
Male (8-24)
Male (25-35)
Male (>=36)
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Collaborating with other projects to
stimulate demand for good governance
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DfID-sponsored Enhancing Civil Society and State
Interface Project: “Meet the LG” Program
UN: weekly radio programs on LGs
USAID: strengthen sub-district Ward Development
Committees and citizen engagement with LGs
JSDF project GoBifo: strengthen community participation
in LGs and ward development planning process
JSDF grant for Timap for Justice: help rural population
seek justice and change expectation of authorities
DfID/USAID/EC: voter education for 2008 LG Elections
42
How will we know whether
devolution process is a good entry
point for governance reform?
43
The goodness test
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Is devolution bringing the state closer to people?
Are LGs more responsive and accountable than central
government?
Does devolution improve access to and quality of services?
Does improvement in public services increase citizens’ trust
in government?
Will high-performing councilors have more promising
political career?
Will more competent and committed people stand for LG
elections in 2008?
44
The sustainability test
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Will the project momentum be maintained? (tension
between civil servants and contract staff)
Will local politicians fight against recentralization attempts?
Will competition among local governments give pressure
for performance improvement?
Will local political markets allow for more credible
alternatives to emerge for future national elections?
Can culture of inclusion and accountability be built from
below?
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The Role of Governance Specialists in
CAS Process
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Help CT identify development outcomes that can benefit
from governance improvement
Assess likelihood of success of each proposed intervention
and advise a bet
Continuously reassess the bet and add wager or diversify
bets as appropriate
If you want sector colleagues to make governance their
business, you have to make their work your business: cross
support, peer review, QER, keep them updated
Make sure you have CD/CM support! They will encourage
sector colleagues to work with you
46