1. Governance and Decentralization: Progress on Implementation and Plans for 2006
Government of National Unity
Paris, March
Breakout Session 11:00 – 1:00
Draft, March 8

2. The INC Provides the Framework: Decentralization
The overarching aims of economic development shall be the eradication of poverty,……guaranteeing the equitable distribution of wealth, and redressing imbalances of income....etc. (Art. 10 (1))
Art. 24 mandates that Sudan will be a decentralized state with the following levels of government:
National;
Southern Sudan;
The State Level; and
Local Level

3. The INC Provides the Framework: Decentralization
Recognition of the autonomy of the Government of Southern Sudan and the states (Art. 25 (a))
In their relationships with each other or with other government organs, all levels of government and particularly national…. shall …..respect each others’ autonomy (Art 26 (1) (b))
…not to assume powers or functions conferred upon any other level except as provided for by this Constitution (Art 26 (1) (c))

4. The INC Provides the Framework: Good Governance
Commitment to Implementation of the CPA
Special Status for
Southern Sudan
Three Areas
Comprehensive Bill of Rights
Judiciary and Rule of Law
Constitutional Court
National Judiciary
Representative, inclusive and merit-based civil service
Various independent commissions

5. The Key Priority for the GNU
Empowerment at the Sub-national Level is Critical
Need for devolution of responsibility to sub-national levels coupled with resources
Participation of communities in setting priorities

6. Progress
Constitutional framework and CPA implementation (presented in detail yesterday)
Announced the Chair and Members of the FFAMC (November 2006)
Increased transfers to States (up to 23% of revenues) budgeted for 2006
Initiated Public Sector Reform Project for “Making Decentralization Work”

7. Issues to be Addressed - Decentralization
Resist the temptation to Recentralize
Clarify and unbundle assignment of responsibilities and functions across various tiers
Enact Local Government Laws
Introduce a transparent and predictable system for intergovernmental fiscal transfers
Clarify roles of MFNE, FFAMC and NSSF in the intergovernmental fiscal system
Who is responsible for vertical allocation
FFAMC responsible for allocation and monitoring
The extent of discretion the States will have for the transferred resources

8. Issues to be Addressed - Decentralization
Operationalize the FFAMC in its central role identified in the CPA and the INC
Develop Capacity at the State and Local level in Planning, Budgeting, Financial Management, HR Management, etc.
Implement the Public Sector Reform Program aimed at making decentralization work

9. Priorities to be Addressed – Accountability and Efficiency
Public Sector and FM Reform
Establish National Civil Service Commission
Initiate affirmative action for the national civil service to meet targets
Implement plan for right-sizing the national civil service and revising the pay structure
Review and modernize public financial management laws and regulations
Initiate more transparent budgeting and reporting along GFS lines
Implement the Public Sector Reform Program
Establish and operationalize the various commissions (discussed in detail yesterday)

10. Priorities to be Addressed – Service Delivery
Basic Social Services: Key to delivering the Peace Dividend
Balanced Development and Infrastructure at the Local level
Extend the scope of Community-based Development initiatives
Increase Pro-poor Spending

11. Support from the International Community
To establish and strengthen the Framework for Decentralization and Decentralized Delivery of Basic Social Services
To meet Poverty Eradication Goals
To achieve the Millennium Development Goals