An open system approach to decentralisation and local governance Harmonisation, Decentralisation and Local Governance

Session overview Introduction on paradigms Rationale for and history of decentralisation Basic concepts of DLG Decentralisation as an ´open system´ of different interacting elements Blueprints to decentralisation don't exist

So many push factors... Democratic imperative Decentralisation Achieving MDGs Pressures from below (local governments and civil society Effective service delivery local economic development urban growth and spatial planning

Potential advantages and risks Pros: improved efficiency better service delivery local democratisation and local governance improved equity improved developement and poverty reduction Cons: Mismatch mandates and delivery capacity Elite capturing and bad local governance Interjuridisctional disparities Local development not supported by central policies

Earlier wave ofDecentralisation:focused on re- organization public sector (de-concentration) 1990s: recent wave ofdecentralisation New model based on four building blocks: Democratically elected local governments (devolution of powers to autonomous local bodies) Local governance (civil society participation and downward accountability) Local (economic) development (pro-poor) Decentralised service delivery State modernization and overall public sector reform The two waves of decentralisation

Visualisation of linkages Broader societal reform State reform "Governmentality

At present Tendency to re-centralise

Reviewing concepts of DLG Administrative decentralisation Political decentralisation Fiscal decentralisation From government to governance - involvement of civil society and private sector Local economic development Territorial planning

Existence of lower levels of government, agencies, field offices Delivery of public services & functions at lower levels Execution on behalf of central government Clarifying accountability lines to local and central government (control/ tutelle) Ensuring effective local-intergovernmental relationships Transferring decision-making authority, resources Building institutional capacities at lower levels Administrative decentralisation

Existence of bodies separated by law with from centre Adapting public institutions to decentralised context Organisation downward accountability A well-developed and inclusive local political process (participation) Free and fair elections Devolution of power to local governments Local autonomy to programme and spend (own) resources Political decentralisation (ECDPM training kit)

Resources for Local governments Allocation of responsibilities among levels of government Impact of fiscal decentralisation? Central government control (upward accountability) Fiscal transfer systems among different levels of government Introduction of planning and budgeting cycle at decentralised level Allocation various taxes among levels of government Fiscal decentralisation

Pillars for effective decentralisation Legal framework (legal, constitutional, policy dimensions) Administrative and political dimensions Fiscal dimension Human resource dimension Institutional arrangements and coordination

Emergence and consolidation of legitimate, effective and viable local governments Recognising legitimate role (obligatory entry point) Accountability of local governments (upwards, horizontal, downwards) Local public finance Local government capacity building (Elected) local government

Responsive and accountable local governments Institutional and organisational set-up for local governance process Existence and quality of accountability mechanisms Mechanisms for exchange of information and dialogue Improvement local finances (including citizens willingness to pay taxes Empowerment civil society (dialogue partners and watchdog Local Governance

Partnerships local governments, private sector and communities in defined area Acceptance catalyst role local governments New generation of local economic development (LED) initiatives Impact decentralised decisions on the local economy Link local development and territorial planning Local coalitions in support of integrated local development strategies Link local level dynamics to processes at upper level Local (economic) development

Coordinating decentralisation with territorial (spatial) planning Is territorial division of country conducive to decentralisation? Ensure provision of spatial planning information (in addition to sectoral information) Creation of regional hubs to ensure articulation between decentralisation and territorial planning Promoting social and economic synergies between urban and rural municipalities Linking admin. decentralisation with inter-sectoral coordination Territorial planning

Simple and complex systems Cooking Simple Predictable Recipe Decentralisation Complex Not predictable Assessment Scenarios Adaptive management Social learning Puzzle Simple Predictable Single solution Trial & error Machine Complicated Not predictable Guidelines Problem tree Planning

Understanding complex realities Looking at reality through different eyes: Multiple actors Multiplie sectors Multiple scales Multiple disciplines

Decentralisation as an open system – SGP2

Specific guiding principle 2 Adopt and open systems approach, which enables donor partners to see and act upon the linkages between different parts of a system This will enhance the effectiveness and impact of decentralisation support

The danger of imposing blueprints…