1. Decentralization for Democracy, Development and Stabilization: USAID Staff Guidance May 3, 2007

2. Decentralization and Democratic Local Governance (DDLG) Programming Handbook, USAID (2000)

3. Why revise?  Update country case materials  Enhance conceptual framework  Changes in US foreign policy Fragile/failed states Development linked to U.S. national security Millennium Challenge Corporation

4. Handbook Revision Process  Background/issues papers  September 2006 Workshop  Task Order to Associates in Rural Development, December 2006  Complete Draft, June 30,2007  Publication expected October, 2007

5. Principal Authors Kent Eaton Paul Smoke Tyler Dickovick Harry Blair James Wunsch Joanne Nicoll UC Santa Cruz New York University Washington and Lee Yale Creighton Pittsburgh

6. Revised Handbook Contents (Next 8 slides)

7. Chapter Titles 1.Opportunities and Challenges for DDLG Reform 2.What is Decentralization? 3.Why Decentralize? 4.Assessing the Environment for DDLG Reform 5.Programming Strategies and Actions 6.Monitoring and Evaluation 7.Conclusions

8. Definition (Chapter 1) Decentralization is the transfer of power and resources from national governments to subnational governments or to the subnational administrative units of the national government.

9. Essentials of Decentralization (Chapter 1)  Authority  Autonomy  Accountability  Capacity

10. Dimensions of Decentralization (Chapter 2)  Political  Fiscal  Administrative

11. Forms of Decentralization (Chapter 2)  Deconcentration  Delegation  Devolution

12. Primary Goals of Decentralization (Chapter 3)  Stability  Economic Development  Democracy

13. Constraints on Decentralization (Chapter 3)  Strength of the Central State  Internal Structure of Political Parties  Weak Subnational Political Competition  Resource Constraints  Tradeoffs and Conflicting Goals

14. Arenas of Diagnosis and Action (Chapters 4 and 5)  National  Subnational  Civil Society

15. Can we provide reliable guidance concerning decentralization for democracy, development and stabilization? We think we can.

16. If stability is the objective,  Does the state have an effective monopoly on the legitimate use of force?  What is the nature of the export/import political economy?  Is the rule of law effective throughout the national territory?

17. If democracy is the objective,  Are subnational authoritarian “enclaves” common or rare?  How are candidates for subnational elected offices and national legislative bodies chosen?  How well and widely organized is civil society?

18. If development is the objective,  What are the capacities of subnational governments/administrations to provide valued local public services?  What is the degree and frequency of subnational inequalities?  Are subnational units subject to a hard budget constraint?

19. Under adverse circumstances,  Decentralization should take the following sequence: Administrative Fiscal Political  Asymmetrical treatment of subnational units should be considered

20. Under adverse circumstances,  Do single-purpose subnational units offer advantages over multiple-purpose units?