An open system approach to An open system approach to decentralisation and local decentralisation and local

governancegovernanceHarmonisation, Decentralisation and Local Harmonisation, Decentralisation and Local

GovernanceGovernance

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

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 risksPros:

improved efficiencybetter service deliverylocal democratisation and local governanceimproved equityimproved developement and poverty reduction

Cons:Mismatch mandates and delivery capacity Elite capturing and bad local governanceInterjuridisctional disparitiesLocal development not supported by central policies

Earlier wave of Decentralisation: focused on re -organization public sector (de -concentration)

1990s: 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)

Decentralisedservice delivery

State modernization

and overall public sector

reform

The two waves of decentralisation

Visualisation of linkages

Administrative Decentralisation

Political Decentralisation

Fiscal Decentralisation

Broader societal reform

State reform

"Governmentality”"Governmentality”

At present

Tendency to re-centralise

Reviewing concepts of DLG

Administrative decentralisationPolitical decentralisationFiscal decentralisationFrom government to governance - involvement of

civil society and private sectorLocal economic developmentTerritorial planning

Existence of lower levels of government, agencies, field

officesDelivery 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

relationshipsTransferring decision-making

authority, resources

Building institutional capacities at lower

levels

Existence of bodies separated by law with from

centreAdapting public institutions to

decentralised context

Organisation downward accountability

A well-developed and inclusive local political process (participation)

Free and fair electionsDevolution of power to local governments

Local autonomy to programme and spend

(own) resources

(ECDPM training kit)(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

Pillars for effective decentralisationLegal framework (legal, constitutional,

policy dimensions)Administrative and political dimensions Fiscal dimensionHuman resource dimensionInstitutional 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

Responsive andaccountable

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 citizen’s willingness to pay taxes

Empowerment civil society (dialogue

partners and ‘watchdog’

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 upperlevel

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

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 actorsMultiplie sectorsMultiple scalesMultiple 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…