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European Regional Seminar on Decentralisation and Local Governance Session 1.3: The Continuing Relevance of Decentralisation and Local Governance Agenda.

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Presentation on theme: "European Regional Seminar on Decentralisation and Local Governance Session 1.3: The Continuing Relevance of Decentralisation and Local Governance Agenda."— Presentation transcript:

1 European Regional Seminar on Decentralisation and Local Governance Session 1.3: The Continuing Relevance of Decentralisation and Local Governance Agenda 11 th November 2013 Nairobi, Kenya George Matovu Municipal Development Partnership for Eastern and Southern Africa (MDP-ESA)

2 Outline Current status of decentralisation & local governance Funding for decentralisation and local governance by EU The agenda for decentralisation After 20 years of decentralisation Basic questions New challenges impacting decentralisation and local governance Way forward Role of MDP-ESA

3 State of Decentralisation Since the late 1980s, D/LG is part of the on-going public sector & local government reform processes in progress and will continue to be work in progress for some time The latest statistics show that over 40 countries have embraced decentralisation The reforms have been supported by the World Bank and IMF, the United Nations System, and the European Union as well as bilaterals such as: Denmark, Norway, Sweden, the United Kingdom, and the Netherlands EU has increasingly recognised decentralisation as an essential pillar in the new Euro-Partnership architecture.

4 Governance Classification AreaBudget (US$)% of Total Budget Socio-Economic Management4,510,404, % Rule of Law and Human Rights1,145, % Leadership Building188,652, % Electoral System109,325, % Communication, Press, & Media109,325, % Public Administration5,511,500, % Civil Society Empowerment924,815, % Peace and Stability1,586,431, % Decentralisation2,402,730, % Parliamentary System197,574, % Total16,772,342, % Governance Funding Source by Classification Area for Sub-Saharan Africa (1980s to 2008) Source: Compiled by Professor Andres de Guttry

5 The Agenda for decentralisation in Africa Dismantle colonial state apparatus, one-party political systems, and foster national unity and political stability and legitimacy within diversity Ensure equitable delivery of services not only to a few elites but to all Promote devolution of powers and resources to democratically elected ‘executive’ councils (headed by mayor or chairperson) with administrative and financial autonomy Establish assemblies (Malawi, Mozambique) or local councils to facilitate citizens’ participation in decision making processes and in defining development priorities of their respective localities. Shift from local government to local governance implying principles of participation, transparency, and accountability with local government playing a catalytic role to ensure collaboration and harmonisation among the frontline actors. It also entailed integration of non-state actors in management of local affairs. It also called for innovative practices such as participatory planning and budgeting Promote local economic development with involvement of the private sector Promote regional planning to take advantage of economies of scale Emphasise local sustainable development and governance

6 Reasons for Decentralisation in Africa The overt failure of centralised public sector management which gave way to economic, fiscal and political crises on the 1970s and 1980s. The resulting decline in state resources increased pressure for economic, institutional and political reforms as part of the search for new paradigms of governance. Pressure from increasingly sophisticated non-state actors – the civil society and private sector who pressed for space to influence decision- making process and to get more involved in public affairs, especially in service delivery and local development. Pressure from external donors to establish leaner and efficient bureaucracies as a pathway to improving governance and service delivery; an important consideration given the fact many African states are heavily dependent on donor funds for development expenditures. Pressure of the urbanisation and metropolitanisation phenomenon in most countries. The use of decentralisation by ruling groups to neutralize or seek compromises with local elites with secessionist mentality The pressure from the globalisation phenomenon which compelled many national governments to focus their attention on strategic issues of national economic and political management

7 Constitutional Recognition and Protection of Local Governance Ethiopia, Article 89/6: “the government shall at all times promote the participation of the people in the formulation of national development policies and programs; it shall also have the duty to support the initiatives of the people in their development endeavours.” Kenya, Chapter 11: gives powers of self-governance to the people and enhance the participation of the people in the exercise of the powers of the State and in making decisions affecting them; Mozambique, Article 250: “ the Public Administration shall be structured on the basis of the principle of decentralisation and de-concentration.” Uganda, Article II: (i) “The State shall be based on democratic principles which empower and encourage the active participation of all citizens at all levels in their own governance and (ii) shall be guided by the principle of decentralisation and devolution of governmental functions and powers to the people at appropriate levels where they can best manage and direct their own affairs; and (iii) Civic organisations shall retain their autonomy in pursuit of their declared objectives.”

8 Innovations in the Cotonou Agreement Cotonou Agreement acknowledges the need to partner with local government to foster good governance and local development principles. In that regard, Article 2 promotes participatory development Article 4 recognises local decentralised authorities as having a “complementary role of and potential for contributions … to development cooperation and development process The Agreement recognises decentralisation as a political priority The 8th and 9th EDF was dedicated to supporting decentralisation, Article 10 calls for greater involvement of local decentralised authorities where appropriate Article 33 states that the Cotonou Agreement would pay attention to efforts that help to: ‘build the capacity at the local and municipal levels which is required to implement decentralisation policy and to increase the participation of the population in the development Process’ Article 58 par. 2 provides that “local decentralized authorities from ACP States …” become eligible for financial support, subject to the agreement of the ACP State or States Article recognises decentralised cooperation between Africa and EU local authorities as an effective means for reinforcing development.

9 Busan Declaration 29 November-1 December 2011 …local governments play critical roles in linking citizens with government, and in ensuring broad- based and democratic ownership of countries’ development agendas. To facilitate their contribution, we will: … support local governments to enable them to assume more fully their roles above and beyond service delivery, enhancing participation and accountability at the sub-national levels.

10 Basic questions Has decentralisation: effectively addressed poverty? Improved service provision to the poor? Promoted good local governance? Enabled participation of non-state actors – CBOs and private sector? Delivered truly autonomous local authorities? Enabled establishment of accountable and transparent local governments? Resolved inter-governmental fiscal relations? Allowed for effective sharing of functions and responsibilities?

11 Positive developments Constitutional protection. Local Governments have been empowered and counterweight central government orders. Balance of territorial powers. A president or prime minister can no longer give orders to municipalities without facing a counterweight Civil society movements are empowered enforcing local decision making and some measure of transparency and downward accountability.

12 After 20+ years of decentralisation There is need to review accomplishments – what has worked and what has not worked To compile lessons learned from experiences and research findings To reassess the opportunities and risks (such as over centralisation, fiscal indiscipline, nepotism, conflict of powers) associated with decentralisation

13 New Challenges impacting decentralisation and local governance The lingering culture of centralisation at the centre persists perpetuating financial dependency The capacities and systems in place continue to below expected standards Coordination of various actors and establishment of productive linkages is characterised by tension Incoherent policies on signalling recentralisation vs. decentralisation Brain drain in search of greener pastures Corruption, bribery, and increasing absence of ethics in local governance Declining core values in local governance Hesitance to embrace ICT to enhance service delivery? Unemployment and unprecedented spread of both rural and urban poverty and informal sector Climatic change mitigation and adaptation Environment, equitable management of natural resources and extractive industries and tourism Green issues: reducing pollution, promoting energy conservation, managing public transport food crises Intra and cross-boarder conflicts armed conflicts and insecurity The space for voices of the poor, marginalised groups, and physically challenged citizens is not guaranteed

14 Defining the Frontline Actors Ministry of Finance / National Treasury responsible for decentralising revenues and developing intergovernmental transfers. Sectorol ministries—health, education, agriculture, public works, environment, water, etc.— in charge of devolution of responsibilities under their general expertise. Ministries of Local Government, Home Affairs or Interior are responsible for developing sub-national institutions and managerial procedures Decentralisation Secretariat Elections Commissions Local Government Finance Commission Local Councils and their departments Traditional authorities Non-State Actors – NGOs and Private Sector There is need for a deeper understanding of the actors, what motivates them and how they can be helped to support decentralisation more effectively

15 Way forward Promotion of corporate governance & good local financial management Promotion of decentralised cooperation and peer learning Improving overall oversight and supervision by central government agencies seem to be weak Utilisation of national and regional local government association in lobbying & advocacy Providing consistent policies on Land use planning and management, and sustainable development Aligning training institutions to the capacity building needs of local governments Establishing effective policies and by laws that allow private sector engagement and for private sector led growth to leverage resources and expertise with strong input of citizens Establishment of performance and results based governance and management Gender mainstreaming and enhanced participation by women in decision making and development Youth issues Recognise the significance of managing rural-urban linkages to foster local economic development and food security Link post 2015 development agenda to decentralisation and local governance

16 Transforming Local Government Drivers ProcessesOutcomes Increased access to: Basic services & information Secure tenure Adequate shelter Markets and Jobs Participation & inclusion Law and Justice Data and information Local autonomy & Decentralisation Intergovernmental relations Financing mechanisms Human resource Urbanisation and poverty Globalization Challenges Outcomes Policy Institutional Finance Leadership & corporate governance to manage change Organisational capacity to deliver outputs Traditional institutions Legislative frameworks Partnerships Conflict management Revenue sharing Intergovernmental fiscal relations Resource mobilisation capacity Integrity transparency and accountability Increased autonomy Employment creation Effective local economic governance Poverty reduction & MDGs Citizen well-being and healthy communities Deliverables Decentralisation Democratisation Participation Modernization Transformation & Modernisation Governance & economic reforms Institutional reforms Systems development Capacity building Process Policy Development Institutional Capacity Financing

17 Knowledge Development Capacity Enhancement and access to services Knowledge dissemination and Sharing Capacity Development

18 The Role of MDP-ESA The Municipal Development Partnership (MDP) for Eastern and Southern Africa was formed in 1991 with the mission of supporting the process of decentralization and strengthening the capacity of local governments throughout Eastern and Southern Africa. For over 20 years MDP has been supporting research, training, technical assistance, decentralized cooperation and knowledge dissemination and knowledge sharing.

19 Role of MDP-ESA Since 2010, MDP-ESA has partnered with: – the Commonwealth Local Government Forum (CLGF), the Municipal, le Partenariat pour le Développement Municipal (PDM), the Foundation of the Peoples of the South Pacific International (FSPI) and the University of the West Indies (UWI). to implement a programme on "Supporting and strengthening Local Authority Associations at ACP national and regional levels" – GIZ to support Local Finance Management and Participatory Budgeting in the SADC region – ICMA and Cities Alliance to facilitate a pilot project on Strengthening of Urban Local Governments in Uganda – USAID to focus on Leadership and Professionalising Urban Management in Sub-Saharan Africa MDP-ESA has also strong dedication to: – Urban agriculture and food security, – Climate adaptation, climate mitigation, housing, water/sanitation; and – Cross-cutting themes: gender, private/public partnerships, and local economic development

20 The Role of MDP-ESA We commit to collaborate and assist EU in any future activities related to decentralisation and local governance. MDP is willing to offer its regional and topical expertise, should EU call upon us.

21 Message In 1972, Tanzania opted for abolition of local government to emphasise the notion of a unitary state, and centralized planning. At the end of his administration, Mwalimu Julius Nyerere made the following expression: ‘‘There are certain things I would not do if I were to start again. One of them is the abolition of local governments and the other was the disbanding of co-operatives. We were impatient and ignorant. We had these two useful instruments of participation and we got rid of them. It is true that local governments were of taking decisions, but instead of helping them, we abolished them. Those were two major mistakes”.


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