An open system approach to decentralisation and local

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

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

The two waves of decentralisation Earlier wave of Decentralisation: focused on re organization public sector (de -concentration) 1990 s: recent wave of decentralisation 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

Visualisation of linkages State reform Broader societal 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

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

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

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

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

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

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

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

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

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

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

Decentralisation as an ‘open system’ – SGP 2

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…