Policy Support for Devolution Pakistan -...

UUNDP Regional Centre in Bangkok Serving Asia and Pacific

Policy Support for Devolution Pakistan

Neil Webster

Henrik Fredborg Larsen

March 2006

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Preamble

A UNDP mission was fielded in Pakistan with the purpose of reviewing the progress of the

devolution reforms to date, and assist the Government and UNDP in taking stock of the

opportunities and challenges and help define the main pillars of support for policy design and

implementation of the reforms over the next years. UNDP is a partner of the Government of

Pakistan for the devolution reforms, and the aim is also to define UNDP role in policy advice and

programming by identifying key areas for UNDP contribution to institutional change and the

type of support to be provided, including the continuation of support to NRB to lead the reform

process [could be changed to quote the purpose and outputs/activities].

The present report should be read in conjunction with the body of literature studying the

devolution reforms and builds upon research undertaken by a range of Government, research,

NGO and donor agencies.

During the mission, the team met with government and non-governmental partners in at Federal,

Provincial and local level and multilateral and bilateral donor agencies. While this report draws

upon input from many people in UNDP Pakistan and beyond, the assessment and

recommendations are those of the authors alone.

The mission was carried out in the period 21 September to 5 October 2005 by Henrik Fredborg

Larsen, Policy Advisor on Decentralization and Local Governance at the Regional Centre in

Bangkok, and Neil Webster, Head of Department of Development Research at the Danish Centre

for International Studies and independent consultant to UNDP.

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List of Abbreviation

AWP Annual Work Plan

CBO Community Based Organization

CCB Citizens’ Community Boards

CCF Country Cooperation Framework

CEDAW Convention on the Elimination of All Forms of Discrimination Against

Women

CIDA Canadian International Development Agency

CIET CIET International (www.ciet.org)

CP Country Programme

CSO Civil Society Organization

DCO District Coordination Officer

DSP Devolution Support Programme

DTCE Devolution Trust for Community Empowerment

EIROP Essential Institutional Reforms Operationalization Programme

FATA Federally Administered Tribal Area

GoP Government of Pakistan

GSP Gender Support Programme

HRBA Human Rights-Based Approach

ICT Islamabad Capital Territory

LGO Local Government Ordinance

LGP Local Government Plan

LGPP Local Government Proposed Plan

MNA Member of the National Assembly

MoF Ministry of Finance

MoLG Ministry of Local Government

MoPD Ministry of

MP Member of the Provincial Assembly

NGO Non-Governmental Organization

NRB National Reconstruction Bureau

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NSC National Security Council

NWFP North-Western Frontier Province

OECD Organization for Economic Co-operation and Development

PMU Programme Management Unit

PLFC Provincial Local Finance Commission

PLGC Provincial Local Government Commission

SDC Swiss Development Cooperation

SDRP Support to Devolution Reforms in Balochistan

SPDI Sustainable Development Policy Institute

SRF Strategic Results Framework

UNCDF United Nations Capital Development Fund

UNDP United Nations Development Programme

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Part 1 Situation Analysis: Devolution in Pakistan and Lessons Learned from UNDP

Assistance

Context

1. Pakistan continues to face enormous challenges in delivering basic services such as health,

education and water and sanitation services to its population. It continues to face serious

problems in its economic development and in generating the resource base necessary to meet

the needs and expectations of its population. Its system of governance continues to support

high degrees of inequity within the population with access to services, resources and the rule

of law being denied to substantial sections of the population.

2. The government that came to power in Pakistan under General Pervaiz Musharraf after the

military coup in October 1999 brought with it a new proposal for politically empowering

citizens and promising them a role in the process of governance. The National

Reconstruction Bureau (NRB) was established on November 18 P

thP, 1999, to formulate

proposals for a reconstruction of the system of governance based upon citizen empowerment

in Pakistan. Devolution of government to locally elected authorities was to be at the core of a

reconstruction agenda. The NRB’s mandate was broad with nine fields of focus for its work

covering political, governmental, law enforcement, public employment, educational,

population welfare, and primary health care structures and systems.

3. Less than one year after the coup, in May 2000, the NRB’s Local Government Proposed Plan

(LGPP) was released with the title ‘Devolution of Power and responsibility: Establishing the

Foundation of Genuine Democracy’. It was presented as being ‘a new beginning’ that broke

with the existing system and structures of governance in Pakistan in which the interest of the

ruling elite took precedence over all other interests in the country’s governance. It argued

that the crisis of governance in Pakistan had reached critical levels, with profound effects for

economic development, inequalities and poverty in the country. The need for a fundamental

reform of the political system was seen to be supported by a broad consensus across all

segments of society and that a system of decentralized local government with devolved

powers and responsibilities was a fundamental prerequisite for such reform.TP

1PT The proposal

argued that successful decentralization based on the reform of local government institutions

and the restructuring of roles, responsibilities and resources between Federal, Provincial and

Local Government was a basic requirement for bringing about a system of governance

capable of addressing these fundamental problems.

4. The LGPP proposed a set of reforms based upon principles of ‘people-centered, rights and

responsibility-based, and service-oriented’, and with a’ bottom-up methodology’. In that the

proposals called for fundamental break with the past structures and system of governance it

recognized that there would be powerful opposition from vested interests within the

bureaucracy and elsewhere as their ability to exploit the institutions of government for

personal political advantage and economic gain would be threatened.

TP

1PT Local Government Proposed Plan, GoP, National Reconstruction Bureau, May 200, Safar 1421.

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5. Following further consultations the NRB drafted the Local Government Plan 2000 (LGP

2000) and a model Local Government Ordnance to serve as the basis for the Local

Government Ordnances promulgated by the provincial governments in August 2001. TP

2PT The

first elections to the new local government councils were held between December 2000 and

September 2001.Following the completion of the first term of office for these councils new

elections have been held in 2005, with the final phase involving the election to the District

Councils being completed in early October 2005.

6. During the first period of local government tenure a significant number of major policy

initiatives have been taken with NRB continuing to play the leading role at the national level

(see table 1 for a summary). These include the formulation and promulgation of the Local

Government Election Ordinance, of the Legal Framework Order (2002), of the Police Order

(2002) and Model Police Rules (2002), and an internal review of the LGO 2001 leading to a

set of amendments passed in 2005 (see below). In addition proposals have been formulated

for a range of institutions and processes including a restructuring of the Civil Services and

Higher Government structures and systems, a Local Government finance system, a Local

Government Plan for the Federally Administered tribal Area (FATA) and a plan for the

establishment of a city district government in the Islamabad Capital Territory (ICT). TP

3PT

7. The changes to the Constitution enacted on 30 P

thP December 2003, have placed the local

government system, as prescribed by the provincial LGOs, in the sixth schedule of the 1973

Constitution with the result that they cannot be altered, repealed, or amended without the

sanction of the President. This has effectively secured their existence until 2009.

8. In 2005 a series of amendments to the 2001 Local Government Ordinance and to the Police

Order 2002 were passed. In the case of the LGO the reforms include measures designed to

give greater power to the Chief Executive of the Province. These include the power to

suspend a Nazim for 90 days while the Provincial Local Government Commission

undertakes an enquiry and to remove the Nazim if the case is upheld and the power to

suspend council resolutions while these are investigated for irregularities by the Provincial

Local Government Commission. There are also measures designed to enhance the capacity

and accountability of the local government councils such as the creation of a District Service

Cadres at district and tehsil levels, and the administrative restructuring of provincial

departments to make them compatible with the Devolution Plan

TP

2PT Sindh/Balochistan/North West Frontier/Punjab Local Government Ordinance 2001.

TP

3PT See Annex A, ‘An Overview of National reconstruction Bureau’, Support to Good Governance PAK/98/005

(Project Phase II)

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Table 1 - Devolution in Pakistan: Major Achievement

Prior to 1999, Pakistan did face a very difficult economic situation. However, since then the macroeconomic indicators have improved considerably with the

Development expenditure reaching almost Rs.272 billion. The LGO 2001 has devolved political power and decentralized administrative and financial authority to accountable local governments for good governance, ef fective

delivery of services and transparent decision-making through institutionalized participation of the people at the grassroots level. About 6637 (District/City District Governments, Tehsil/Towns Municipal Administrations and Union Administrations) are functioning in the four provinces within the provincial framework. The significant change is that elected leaders are now responsible and accountable for service provision at local levels and the local councils monitor performance.

The provincial governments are in the process of restructuring their Departments. Their new roles mainly focus on provincial legislation, policies, regulation and

standard setting in relation to the local governments. The share of women in decision-making has improved significantly. The 33 percent quota under the devolution plan for women at the union, tehsil and district levels

has helped an unprecedented number of women. This provides a platform for mainstreaming women in the development process and encouraging women participation in the political process. Minority, peasants and workers seats on each local council ensure inclusion of the vulnerable and poor groups.

The PFCs have been established in all four provinces. Since FY 2002-2003, formula based allocation and transfers are taking place. The share of each local

government is clearly indicated in the award. The interim awards are in the process of being replaced by three-year Awards by the Provincial Finance Commissions. New systems of planning, implementation, resource allocations and people’s participation in decision-making have been introduced. Under the bottom up planning

process the schemes identified by the Union Councils are forwarded to the Tehsil/Town Municipal Administration and District Government. Similarly schemes identified by the Tehsil/Town Council are forwarded to the District Government and Union Administration. District Council may also recommend schemes to the Tehsil/Town Municipal Administration and Union Administrations. All schemes are approved by the respective Council. Several types of rules have been notified by all the provinces and additional rules and byelaws are being developed.

The citizens priorities are fully articulated by the councilors as is evidenced from the heated debates in the councils. Nazims and councilors are fully accessible to the people. Compared to the pre-devolution period access of citizens has increased tremendously. Participation of citizens through their elected representatives is the biggest achievement of the local government system. The pace of development work has been appreciated by all including provincial governments, donors and the public. All social sector indicators have improved considerably since 2001 as per the latest survey Pakistan Social and Living Standards Measurement Survey (PSLM) conducted by FBS in 2004-2005. CCBs are an integral part of the planning system at local level. Low utilization of CCB funds in the initial years was known at the design stage and is not a surprise.

The linkage of Planning Commission with the provincial Government is through well established institutional mechanism. Local Governments are represented at the

national level through the provincial Governments. This can be seen in the MTDF documents. In the MDTF document the critical parameters and policy framework for local governments are included. The MDTF document is not classified by level of government.

The civil services reforms are being undertaken to make the civil services a more lean, skilled, efficient and decentralized civil service. The LGO provides a number of checks and balances for ensuring that the expenditure is incurred judiciously and in accordance with the law, rules and regulations.

The Auditor General of Pakistan conducts the audit and the report of the audit is placed before the concerned accounts committee of the respective council for necessary action. If required, a nazim can request a special audit at any time during the year. The provincial LGC can also request for a special audit of the accounts of local governments. In addition to the external audit, nazims are to appoint an internal auditor. Poorly managed projects should be judged in comparison with pre devolution period when there were “graveyard of projects”. Misused is to be judged through the audit report of AGP for FY 2001-2002 and compared with pre-devolution audit paras e.g. SAP and line Departments.

The national financial system introduced in the local governments is a strong point of the system. All accounts of the receipts and expenditure of LGs are kept in

accordance with the principles prescribed by the Auditor General of Pakistan. The district and tehsil accounts officer and the union accountant perform pre-audit of all payments from the LG funds before approving the disbursements of monies. The district accounts are consolidated at the district level. The main function of the accounts committees is to address complaints and improve the functioning of the accounting offices in consultation with the people.

A number of other LG related institutions and committees have also been set up at various tiers to facilitate smooth functioning of the LG system. A comprehensive review of implementation problems experienced by the first local governments was undertaken through a consultative process during the years

2003 and 2004 involving all stakeholders. The consultative process included Bar Associations, Press Clubs, Chambers of Commerce and Industries, NGOs, MNAs, Senators, MPAs, Provincial Chief Ministers, Provincial Chief Secretaries, Provincial Secretaries of Finance, Services and General Administration, Local Government, Home and Law departments, District Public Safety and Police Complaints Commissions, Associations of Nazims and Councillors, Union, Tehsil/Town and District Nazims, DCOs, DPOs and other government functionaries were consulted. Out of over 100 consultative meetings, 35 meetings related to consensus on proposals. The basic demand of the provinces was further strengthening of the accountability and check and balance mechanisms and not clarification of roles and responsibilities. The LGO is an extremely detailed document and clearly lays down the roles and responsibilities of the various levels of governments.

* Based on Summary prepared by NRB

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Analysis

9. The momentum achieved during the first 5 years of the devolution reform process has been

considerable. As indicated above there has been a strong pressure and support for the reforms

from the centre spearheaded by the work of the NRB. This has been matched by a ready

willingness to implement the reconstruction agenda by the District, Tehsil and Union

Councils as well as at the community level. The extent of the break with previous system of

local governance is symbolized by the reservation of 33% of seats in all levels of local

government for women and the fact that more than 30,000 women entered into formal

politics in the first elected local government councils. While problems with the second round

of local government elections have been reported, TP

4PT there is an apparent popular enthusiasm

suggesting that the support for the new system of devolved governance remains strong within

the electorate.

10. The rapidity of the reform process has also led to problems. These are reflected in the uneven

progress between different levels of the provincial and local government bodies, failures in

coordination between line departments and local government, and significant local variations

in the degree of community involvement in local development activities. Problems with the

lack of procedural clarity for implementing the reforms and the lack of mechanisms for

securing coordination and ownership between the many parties involved have further

exacerbated the lack of commitment to the reform agenda by groups with the bureaucracy

and elsewhere. This is particularly apparent with government departments and ministries at

national and provincial levels. At the same time the reforms have created high expectations

amongst citizens and communities at the grassroots level that the new system and structures

has often had great difficulty in meeting.

11. At the local level the pressure to implement the reform and to utilize budget allocations to

local government has also resulted in funds being poorly managed or misused due to poor

collaboration between line departments, elected councils and CCBs. There is an absence of

integrated planning and little or no capacity in participatory planning techniques at all levels

of local government.

12. At the community level the CCB modality for community empowerment and local

development has been slow to take off in many localities and there were delays in the

preparation and dissemination of the rules and guidelines for implementation. The work of

DTCE and its partner organizations initially in 13 districts in the Punjab has demonstrated the

considerable potential present within communities to mobilize resources and implement local

development activities. It has also demonstrated the potential for establishing effective

partnerships between CCBs, NGOs and local government in the identification, formulation

and implementation of development projects in which citizens have set the agenda on the

basis of their own needs assessments. The success of the DTCE and its local partners

demonstrates the lack of readiness for such a demand driven local development modality

elsewhere.

TP

4PT Reports from the Commonwealth electoral observers cited in New Dawn 27 P

thP September 2005.

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13. What remains to be demonstrated is the capacity for local government to bring citizen

participation into the other development activities and service provision for which it is

responsible outside of the 25% development budget allocation for CCB projects. It also

remains to be seen how the bottom-up approach driving the CCBs’ project activities can be

incorporated into local development planning at Union, Tehsil, Town and District (Zila)TP

5PT

levels. Failure to do so will further delay the development of local government bodies with

downward accountability to citizens and will increasingly lead to problems in the equity of

local service and resource provision within and between communities as well as in their

sustainability due to problems of maintenance and in meeting other recurrent expenditure

requirements.

14. At the Union, Tehsil, Town and District levels the procedural framework for devolved

local government is well developed in the LGO 2001 and the subsequent 2005 amendments.

The detail and sophistication of the framework is impressive when considering the relatively

short period within which policies had to be formulated, legislation drafted and promulgated,

operational rules and guidelines prepared and disseminated, trainings developed and

imparted. The degree and extent of the change in local government at the sub-provincial level

has placed considerable pressure on the capacity of the new councils and the associated

administrative departments to take on the new functions and responsibilities and to provide

the levels of service provision and development activity expected. For example the DCO in

Lahore District pointed to the number of staff under his direct administrative responsibility

increasing almost overnight from under 2,000 to over 40,000. It is clear that the quality and

quantity of training for staff and elected members at all three tiers has not been adequate and

that the poor distribution of staff is creating significant problems for the functioning of local

government. This problem is particularly acute at the Union level of government.

15. The poor administrative alignment of the Provincial departments with District departments

and the staffing of District departments with senior staff from the National and Provincial

Civil Service have undermined the administrative functioning and accountability of these in

the devolved system of local governance. For example, the powers to hire, fire, transfer and

promote have not been in the managerial remit of the local government authorities. The

District Coordination Officer (DCO) responsible for coordinating a district’s administration

is usually a Federal or Provincial civil servant on at least Basic Scale 20. The requirement in

the 2005 Amendments that the Provincial departments be restructured and that a District

Service of district and tehsil groups be undertaken by 31P

stP December, 2005, will provide the

administrative basis for addressing some of these problems. Their successful implementation

will undoubtedly take longer if the root causes of the problems are to be resolved as they

include administrative traditions and work cultures, acceptance of new forms of

accountability and significant changes for individual career paths.

16. Local government finance in the LGO 2001 centers on the creation of a District Fund, a

Tehsil Local Fund, Town Local Fund and a Union Local Fund. Their revenues include

government grants-in-aid, transfers from a higher tier of local government, incomes from

taxes or charges levied by the local government, and fines levied. Expenditures are according

TP

5PT A Zila is a District. Both the English and Urdu terms are used in the legislation, policy documentation and other

literature.

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to annual and supplementary budgets, prioritized according to the bottom up planning system

laid out in the LGO 2001. 25% of the budgets are solely for utilization through the CCB

modality. Monies cannot be transferred to a higher level of government except in the case of

debts incurred prior to the LGO 2001 coming into force.

17. The LGO 2001 established the financial framework for accountable budgeting combining

both supply driven and demand driven local development in terms of service provision,

resource allocations and infrastructural development. The implementation has had problems

in the areas of revenues being received, budget planning being participatory and demand

driven, and allocations being utilized. For example fees for collecting taxes have not been

paid TP

6PT and CCB allocations have been systematically underutilized and prone to

irregularities.TP

7PT

18. The electoral system established under LGO 2001 has also experienced problems. Two

issues that are frequently referred to are (i) the strong influence of political parties in the

elections to the three tiers of local government and management of local affairs despite the

elections formally being non party-based and (ii) the current system of indirect elections to

the Tehsil and District Councils which de facto give provincial/national politicians

significant influence in the selection and election of candidates. Both are seen to reduce the

accountability of the representatives to the electorate and to the individual citizen and to

strengthen the role of personal patronage in influencing the outcome of elections.

19. A further issue is the relationship between the elected councils and the civil service with the

accountability of the latter to local government being questioned by the local councils’

members.. This has been addressed with the proposal for a District Civil Service Cadre

introduced in the LGO Amendments 2005. To achieve an effective working relationship

between the elected councils and the civil service in administrations will require time and

effort to change belief and work cultures that run counter to the principles of modern local

government and not least to secure an acceptance of new forms of accountability involved.

20. At the Provincial level it is clear that the emphasis on the district level and below during the

first four years of implementation has led to tensions at the provincial level of government.

Elected Provincial Governments were not in place when the lower tiers of elected

government were established or when many of the initial reconstruction initiatives were

being designed and implemented. In retrospect it can also be seen that reorganization of

functional responsibilities was not based upon a consultative process that secured adequate

ownership and commitment at the provincial level to the reform process. There remains a

lack of clarity on the division of roles and responsibilities between provincial government

and district councils and their respective departments; as indicated above the structures of the

civil service have not be conducive to effective and accountable systems of government at

the district level and below and important areas such as tax and revenue collection and

distribution are a constant source of tension between provincial and district governments.

TP

6PT It was reported by the former Nazim in Lahore District that the 10% fee from the collection of the property tax had

not been paid by the Provincial government.

TP

7PT A forthcoming report from a study conducted by SPDI in Abbotbad indicates a high incidence of irregularities

based upon poor management and mis-management of CCB projects and their funds. (Interviews with SPDI staff)

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21. Problems in the allocation of functional responsibilities are further exacerbated by changes in

political roles introduced by the devolution reforms. Where previously the Provincial

Government was the clear political and administrative authority over the district government,

this is no longer so apparent. The constituency for a District Nazim is often much larger than

that for a member of the Provincial Assembly (MP) or of the National Assembly (MNA).

Combined with the new powers invested in the District Nazim and Council, it has led to a

marked shift in the political balance reflected in MPs and MNAs contesting for election as a

District Nazim.

22. The Provincial Local Government Commission (PLGC) is designed in LGO 2001 to play a

critical role mediating between different levels of government and between elected and

administrative departments of government. Problems in the allocation of functions and

duties, the lack of clear guidelines for implementing key reforms, political interests, and

similar problems have weakened the role of the PLGC and thereby the effective and

accountable functioning of the new local government system. The 2005 LGO Amendments

have addressed a number of these problems paving the way for a stronger and more active

role for the PLGC. Ideally it should play an active and central role in anchoring the system of

local government in each province securing the role of the Provincial Governments as both a

promoter and a defender of the system.

23. The Provincial Local Finance Commission (PLFC) under the LGO 2001 is required to

provide recommendations to the provincial Governor on a formula for distributing the

Provincial Consolidated Fund to the different tiers of local government and to make

recommendations on any other matter relating to finance for and of local government

referred to it by the Governor, the provincial Government or by a local government authority.

Powers invested in the PLFC cover fiscal allocations and the flow of fiscal transfers. For

example statements of estimated revenues and expenditures are required to be provided by

the provincial government to the PLFC at least three months prior to finalizing the Provincial

Budget. As such the PLFC has a potentially very important role to play in the effective

functioning of local government and in facilitating the reform process.

24. As previously indicated the 2005 Amendments to the LGO 2001 have addressed some of

these issues with the reassertion of the Provincial Governments central position within a

system of local government through such measures as the increase of the powers of

provincial Chief Ministers over District Nazims and the decision-making of the District

Councils and lower elected bodies. In the next phase of reforms, the clearer delineation of the

status of the provincial Government both with respect to local government and to federal

government will be a critical factor for the successful consolidation of the reform process.

25. At the National Level the leading role of the NRB with its status of being under the Office

of the Prime Minister is a cause for coordination problems with the main line ministries

working with service delivery at the sub-national level. The creation of the NRB effectively

weakened the status of the Ministry of Local Government and is seen by some in the

Ministry to be linked directly to the downsizing of that Ministry at the federal level. The

Planning Commission and the Ministry Planning and Development appear not to have close

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vertical linkages with planning institutions and processes at provincial levels and below. The

Mid-Term Development Framework recently released contains only minimal reference to the

institutions of local government for whom an effective planning system linking needs to

policies and their implementation is a critical requirement. Vertical programmes remain a

prominent characteristic of government service delivery extending from Federal Ministries

through Provincial governments and downwards through line departments. Finally donor

support both directly to the devolution process and elsewhere to sector programmes that fall

within the areas of local governments’ jurisdiction have tended to promote vertical service

provision through line departments; furthermore the institutional anchoring of these

programmes has not always followed the strategy promoted by the GoP through the creation

and work of the NRB.

26. The creation of a strong national ownership of the reconstruction process based upon a broad

consensus amongst the national and donor stakeholders on content and approach has not been

achieved as yet. In this context it is important to recognize that NRB is not a permanent

institution and that it will in all likelihood be terminated in 2009 when the current protected

status of the new councils ends or 2010 after the third local government elections are held . It

is therefore critical that not only is the reform process successful in securing a strong

ownership at the provincial and local levels of government, but that the commitment of

federal government to maintaining the local government system is also secured.

UNDP Support for Institutional Reforms

40. The country programme of UNDP Pakistan and the Strategic Results place considerable

emphasis on the governance thematic area focus, on institutional reforms specifically, and on

women and governance.

Country Cooperation Framework and UNDP Strategic Results Framework 1998-2003

27. The main thematic areas of the Country Co-operation Framework (1998-2003) are

Governance, Gender and Sustainable Livelihoods. The overarching goal of the governance

programme is the creation of an enabling environment within which the people of Pakistan

can influence the direction and conduct of their governing institutions. The UNDP

programme will seek to strengthen Pakistan's capacity in areas such as democratic

processes, policy development, development management, strengthening of civil society, and

public-private linkages. In all areas, special emphasis will be placed on provincial and local

processes and on community empowerment.

28. The strategy for implementation is that UNDP will assist in the development of such a

programme for the revitalization of the principal institutions of governance. At the federal

level, the programme will include strengthening of the Institutional Reforms Group, which

was established in 1995 and further strengthened during the interim government. At the

provincial level, it is anticipated that each government will establish its own Institutional

Reforms Group, following the lead of the North West Frontier Government, which has

already done so.

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29. As part of the gender goal, the objective was to advance the cause of women and therefore

adopt the Convention on the Elimination of All Forms of Discrimination Against Women

(CEDAW). UNDP will assist the process of preparing a national programme for the

implementation of CEDAW while developing specific interventions intended to make an

identifiable difference to the lives of women - particularly poor women - in Pakistan. One of

the expected outcomes is increased number of NGO working on the political participation of

women and increased participation of women in politics and government, at the local and

federal levels.

30. The Strategic Results Framework (SRF) for Pakistan 2000-2003 comprises five categories,

namely, governance, poverty, environment, gender and UNDP Support toUN. It has been

designed to capture the strategic results derived from all the projects/programs of the current

Country Cooperation Framework (CCF 1998-2003) for Pakistan (see above). Governance

has been identified as a critical element in enabling Pakistan to achieve its sustainable

development and poverty alleviation objectives. The UNDP governance programme included

strategic support for the design of governance reforms; capacity building of key governing

institutions including civil society organizations; and enabling implementation of governance

reforms at the national and sub-national levels.

31. The main outcome under the Governance component is effective legal and policy framework

for decentralized authority and management.

UNDP Country Programme 2004-2008

32. Under the United National Development Assistance Framework 2004-2008, the United

Nations system will encourage civil society partnerships and participation in efforts to

broaden choices and increase opportunities, particularly for the poor, women and

marginalized groups. Four broad themes have been identified: participatory governance,

poverty alleviation, health and education. Based on the UNDAF and other consultative

processes, the UNDP country programme will focus on cooperation in (a) institutional

capacity-building and (b) community development with asset building for the poor [insert

hyperlink to CP].

33. Within the component focusing on institutional capacity-building, the UNDP programme

2004-2008 covers the following major areas: (i) participatory poverty monitoring and

research, (ii) promoting gender equality, (iii) strengthening and consolidation of the

devolution process, (iv) strengthening oversight and regulatory mechanisms at national and

sub-national levels, (v) access to justice and human rights, (vi) environmentally sustainable

development. Within the component focusing on community development with asset

building for the poor, the UNDP country programme will focus on the following major areas:

(i) community empowerment to support local participation in decision-making, (ii) land and

water resource management, (iii) urban poverty reduction and slum uplift, (iv) support to the

national initiative for philanthropy and volunteerism through the National Commission for

Human Development and (v) youth. The core elements of the country programme related to

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devolution are intended to contribute to the following major outcome as specified with the

Country Programme document:

‘local authorities and communities in rural and urban areas enabled and involved in

planning and management of development activities, including the provision of public

services’

34. In the context of the UNDP CCF (1998-2003)/Strategic Results Framework (2000-2003) and

Country Programme (2004-20008), UNDP’s present support to devolution and good

governance in Pakistan has been primarily, but not solely through four projects:

The Support to Good Governance (Phase –II) PAK/98/005 July 2003 – December 2005

Support to Devolution Trust for Community Empowerment (DTCE) PAK/02/009 July

2003 – December 2007

Essential Institutional Reforms Operationalization Programme (EIROP) – Phase II

December 2004 – November 2007

Support to Devolution Reforms in Balochistan (SDRP) PAK/96/021 June 2002 - June

2004

35. Support to Good Governance has facilitated the work of NRB for the completion of the

reconstruction agenda based upon strategic alliances with partner organizations in the public

and private sectors, civil society and donor community. Phase-I of the project (October 1999

to June 2003) was designed to support the NRB is conceiving, designing and facilitating the

implementation of a strategic National Reconstruction agenda for establishment of genuine

democracy with sustainable and durable Good Governance. Three immediate objectives of

Phase-I were (i) support to a consultative process involving key stakeholders to build

consensus on national reconstruction agenda, (ii) support to a restructuring agenda of NRB

approved by the NSC and (iii) support to the implementation of the selective strategic

reconstruction initiatives agreed between UNDP and NRB.

36. Phase-II has continued the policy of Phase-I, to work in accordance with the priorities

determined by the NRB with the strategic focus to analyze, consolidate and improve the

work completed during Phase-I. Securing a value-added partnership with donors, facilitating

learning and exchange of views that was a core part of Phase-I, the programme has continued

to be so in Phase-II, but with a view to extending the opportunities for debates and

understanding on key implementation issues pertaining to state restructuring. This is seen to

be important for strengthening project ownership and to ensure a participatory and

consultative planning process. A central operational modality for Phase-II are partnerships

with organizations in the public and private sector, civil society and donor community and

with national and international research institutions.

37. The success of the project’s phase I and phase II is reflected in the success of the reform

progress to date. The UNDP support has provided the consultants who have carried the core

of NRB’s work forward. The focus however has been on the demands of carrying the

reconstruction downward to the sub-provincial local governments. Partnerships and

ownership have been built at this level, but at the provincial and national levels there have

not been the same partnership successes. The Planning Commission and the Ministry of

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Local Government have not been significant players in the decentralization process, perhaps

reflecting the political and administrative context in the early period of reform; donors have

not been active in coordination groups both within the donor community and with the

government; the tradition of vertical programmes on the part of other ministries, often

supported by donor interventions, has continued to prevail; and a broad ownership and

commitment to the reforms has not been developed at national or provincial levels of

government as yet.

38. Another issue is seen to lie with the lack of a strong programme to secure citizen

participation across all aspects of local government practice. The focus on CCBs is

participatory in its objectives, but 75% of funds to local government lie outside the CCB

modality and citizen participation in planning, monitoring, implementation for utilization of

these is not present. Overall, whereas NRB has been able to move an impressive agenda for

the reconstruction of local governance forward with the technical assistance support that

UNDP has provided, only limited progress has been made in achieving the principles of the

LGO 2001/2005 intended to ensure transparency and participation and, hence the

development of truly accountable local governance.

39. Support to DTCE is designed to strengthen community empowerment and local

development through social mobilization and local development projects based upon the

Citizens’ Community Boards (CCBs). The continuing need for this project is documented in

reports such as that of the Social Audit of Governance and Delivery of Public Services

published in 2005 by CIET and DTCE and DTCE’s 2004 Annual Report. It is clear that

CCBs have a very important role to play in creating a bottom-up demand on local

government bodies with the consequences for local development and for local good

governance that this brings. It is also clear that simply making the funds available is

insufficient to set the process in motion and that it requires an intervention at the local level

that can mobilize communities to form CCBs, can ensure that all sections within the local

communities are engaged in the formation and development work of the CCBs and can

facilitate a local context favourable to their effective functioning. DTCE and its local partners

can be seen to have a central role as catalyst agencies necessary for CCBs to have the desired

impact according to the LGO 2001/5. Such a role is clearly necessary to jump-start

community participation in local governance utilizing a funding window solely for projects

requested by, and implemented in cooperation with, community organizations (CCBs).

40. Three issues that need to be addressed are (i) the coverage of the project across Pakistan (ii)

the inclusiveness of the project within communities and (iii) the capacity of the project to

bring citizens into a strong engagement in local governance beyond the modality of CCBs

and their engagement with local government and local development. While the design of the

project does not ignore these issues, the implementation has tended to focus on communities

rather than citizens with the formation of functioning CCBs in specific localities being the

main activity to date.

41. EIROP was designed as a response to the LGP 2000 and LGO 2001 and implemented by

UNDP through a cost-sharing agreement with SDC and NEX execution by the Planning,

Environment and Development Department of the Provincial Government of the NWFP. A

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project Review Board chaired by the Additional Chief Secretary was established to

coordinate the project with other departments and donors supporting decentralization

activities in the province. The implementation of the decentralization reforms is guided by a

Provincial Decentralisation Task Force, which is therefore a key actor for the project.

42. EIROP has three immediate objectives: (i) to facilitate the design and implementation of the

decentralization framework at the provincial and district level, (ii) to strengthen the new roles

and responsibilities to be performed in the province and districts as a result of

decentralization through human and institutional capacity building, and (iii) to enhance

quality and transparency of decision-making through improved information collection and

sharing at provincial and district level under the new decentralized set-ups.

43. In its design there is little doubt that the project addresses core areas requiring support for

implementing the new decentralization policy in the NWFP. The tripartite partnership of the

Provincial Government, UNDP and SDC is an important advantage for its implementation.

Support for the Provincial Decentralisation Task Force has been pivotal for work for the first

immediate objective in designing the provincial framework for implementing LGO 2001.

Trainings and studies undertaken under the second immediate objective have increased

awareness at the upper levels of district administrations and the indirectly elected

representatives and generated useful overviews in a number of areas relevant to the reform

agenda. Information gathering has also provided new data to provincial and district

stakeholders designed to facilitate activities in pursuance of the third immediate objective.

44. Reviews and evaluations have also pointed to a number of important weaknesses in the

project’s design and implementation. These include an over-emphasis upon the provincial

and district levels of government and an under-emphasis on sub-district levels, a failure to

link the experiences of implementing the reconstruction agenda within a province to the work

of the NRB and other national stakeholders, a tendency for the project to remain a financing

mechanism for provincial and national governments’ implementation of the reforms and not

to play an advisory role, to deliver trainings that are not adequately focused and too much

based upon a traditional class-room based pedagogy in delivery, a failure to link research

studies with policy and practice, and a failure to promote accountability, transparency and

more general participatory decision-making by citizens in local government.

45. Support to Devolution Reforms in Balochistan (SDRP) is based on the premise that

information and participation would lead to an improved service delivery in the province and

thereby a positive impact on the beneficiaries. In this, the project has focused on a key area

for facilitating the devolution reform process and its broader objectives for local governance.

The project is the successor to the Balochistan Trial District Management Project, which was

implemented between 1998 and 2002. SDRP involved a realigning of the earlier project in an

effort to make it compatible with the new local government structures in the province. The

main focus has been upon mobilizing communities at the grassroots level and forming

community organizations. A second focus has been on human resource development through

training programmes, seminars, workshops and study tours. Thereafter there has been support

to the Provincial Local Government Commission and to the formulation of PLGC Rules of

Business, the establishment of a web portal and four District Management Information

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Centers as the first steps towards an open access information system, and support for the

design of a monitoring and evaluation system.

46. The project has made important contributions to the devolution process in Balochistan, but it

has also provided important lessons: for example the need for a more holistic and integrated

approach in providing support to devolution and the need to have a strong commitment from

provincial and local government to the project. The availability of resources to be utilized

with the newly established capacities at community level and in the administration is also a

critical factor.

47. Other UNDP interventions in Poverty Alleviation, Sustainable Livelihood, Gender,

Environment and Crisis Prevention are designed and implemented with due consideration of

the devolution context as it evolves under the programme of national reconstruction.

Other Donor support to devolution

A number of other donors are actively engaged in providing support to the devolution process

either directly as in the case of ADB’s major Devolution Support Programme (DSP) or CIDA’s

Devolution Support Programme (C-DSP) that focuses on the province of Punjab or indirectly in

a number of sector specific programmes and projects. A full list of donor interventions with

relevance for the devolution reforms is provided in Annex 2.

Concluding comments

48. It is clear that the quite remarkable progress has been achieved in creating the system and

structures of devolved governance in Pakistan. As noted above the process is not complete

and has been accurately described as representing a glass that is half full rather than half

empty with the implications that good progress is being made, but that much still remains to

be done. The policy framework for district local government is largely present, the

framework for federal to provincial devolution is not. The modalities for securing for

community participation are gradually being implemented, but progress remains uneven

within and between the provinces, the districts and the sub-district levels. The framework for

achieving the participation of citizens in collective decision-making in local development

through local government institutions has yet to be adequately developed and implemented.

At the provincial and federal levels of government the ownership and commitment to the new

system and structures of local governance is not yet strong enough to be capable of

sustaining the new system of local governance beyond the critical deadline of 2009 and key

groups central to its long term future remain to be convinced of its merits and to accept it as

irreversible.

49. At the same time the progress achieved, the continuing ability of the NRB to set and drive the

reconstruction agenda forward and the growing expectations arising amongst politicians,

administrative officials and most importantly substantial sections of the population at the

district level and below present a window of opportunity for carrying the reform process

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forward and to build a broader constituency of support for the new system of local

government across Pakistan.

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Part 2 Recommended Strategy for UNDP Policy and Programme Support

50. The strategy takes its point of departure in the Government of Pakistan’s strategy for

devolved local governance, the UNDP’s country programme/strategy and specifically its

ongoing programme of support to governance and particularly the Support to Good

Governance project, and the support provided by other donors in the field of good

governance. The strategy is developed in the light of the above situational analysis, drawing

upon the broad body of documentation available and consultations held with a range of

stakeholders at all levels. The proposals are to provide the basis for a project to support good

governance, but certain components and specific activities might well be best placed with

other UNDP projects supporting the reconstruction agenda led by NRB, but through other

implementing agencies and modalities.

51. As indicated above, the Government of Pakistan has evolved a broad-based policy for

national reconstruction comprising of four basic elements: economic revival, good

governance, political restructuring and poverty reduction. In pursuit of the national strategy,

the strategic plan designed by NRB comprises four phases: (i) devolution of power; (ii)

reconstruction proposal related to political structures and systems, economic and governance

structures and systems, police ordinance 2002, and consolidations of local government

structures and systems; (iii) conduct of elections; and (iv) revival of constitutional

democracy. As such, devolution has been the cornerstone of the reforms and has aimed at

contributing to achieving the objectives within all of the elements included in the reform. The

Local Government Proposed Plan (May 2000) outlines the basic principles, operational

mechanisms and empowerment targets as a ‘vision’ for Devolution of Power and

Responsibilities: Establishing the Foundation of Genuine Democracy TP

8PT. Subsequently, these

principles were further refined and outlined in the Local Government Plan (2000), and the

main legal framework provided with the Local Government Ordinance (LGO 2001) and

revisions (LGO 2005).

Following the major progress in implementation (see previous chapter), the internal policy

review conducted by NRB in 2004/5 aimed at taking stock of the achievements and present a

strategy for the next step of the devolution reform, lessons learned and areas to address in the

next phase. An external strategy for communication to external parties has not been prepared by

the Federal Government – primarily since it is seen to be the responsibility of Provincial

Governments to develop the strategy of implementation within the national framework provided

with the LGP (2000) and LGO (2001/5). As such, the presentation of the NRB Chairman to the

Pakistan Development Forum 2005 TP

9PT represents at present the most coherent outline of the NRB

strategy and refers to the following Second Order Reforms: donor coordination and devolution

framework, including a reform of ‘vertical programmes’; capacity building at provincial and

TP

8PT Check if available on the web and provide hyperlink. Otherwise not that it is not.

TP

9PT Impact of Devolution on Service Delivery, Presentation by Mr. Daniyal Aziz, Chairman NRB, Pakistan

Development Forum 2005, Islamabad, the 26 P

thP April, 2005.

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local level; extension of DTCE operations to the rest of Pakistan over 5 years; development of a

District Service; and federal to provincial devolution. TP

10

52. As highlighted by NRB, the decentralization process initiated in August, 2001 requires

concerted effort and intelligent use of available resources to reap the benefits of new

governance paradigm in Pakistan. The Federal and Provincial Governments are pursuing

medium and long-term strategies to consolidate devolution and governance reforms.

Investments since 2001 by development partners i.e. UNDP, Asian Development Bank,

JICA, CIDA, SDC, World Bank and many others have supported the decentralization

process. As before, future investments by development partners should be in line with the

strategies adopted by the Federal and Provincial Governments. The National Reconstruction

Bureau (NRB) proposes to undertake a series of actions in the next two to three years (see

table 1 for a summary).

TP

10PT Recent documentation from NRB detailing future strategy was not available to the mission. As indicated, this is

based upon the 2005 Amendments to the LGO 2001, a presentation made to the Pakistan Development Forum by the

NRB Chairperson on 26 P

thP April, 2005, and consultations held with the Chairperson and members of the NRB.

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Table 2 – The Way Forward: Summary of NRB Strategic Plan DISTRICT SERVICE The Provincial Local Government Ordinances, 2001 were amended in June, 2005 to provide for the creation of the district service and to give disciplinary powers to Nazims. The creation of district service (comprising District and Tehsil cadres) will ensure that the local governments have full command over the officers and officials working in the establishments of decentralized offices. NRB will provide technical support to the provincial governments to implement section 140-A and 30-A of the Local Government Ordinance, 2001. Already the district service model has been shared with the provincial governments and consultative meetings are taking place on the issues contained in the draft model. CIVIL SERVICE REFORMS A direct impact of the creation of the District Service in each district is on the civil service structures at the Federal and Provincial levels. NRB is responsible to prepare proposals/new framework for civil services in consultation with the Federal Ministries/Divisions and Provincial Governments. The new framework will ensure that the employees of the district service and those in the Provincial Services find adequate opportunities to move from one cadre to the other. PROVINCIAL RESTRUCTURING Devolution has changed the government structures at the District and Provincial level. The success of the new governance paradigm depends upon the ability of the Provincial Governments to shift their focus from executive functions to regulatory functions. This is a requirement and not an option. Decentralization of District/Tehsil level offices to local governments has shifted the executive functions from the Province to the District and Teshil. With this change, Provincial Departments have to redefine their role to perform regulatory functions. This will strengthen the entire process of devolution and making the policy functions more effective. Provincial Governments recognize the importance of Provincial restructuring and have, therefore, amended their Provincial Local Government Ordinances, 2001 to provide for administrative re-alignment of provincial departments in compatibility with the features of the devolution plan and ensure the principles of good governance. NRB will continue to provide, a research based, provincial restructuring model to ensure that the Provincial Governments complete the provincial restructuring work on priority basis. NRB will also monitor the transition process and report progress to the National Implementation Body chaired by the President of Pakistan periodically. FEDERAL TO PROVINCIAL DEVOLUTION The Federal Government recognizes the significance of the principle of the subsidiarity in a federation. The Federal Government plans to transfer those subjects and functions which can best be performed by the Provincial Governments. The constitutional, legal and administrative issues relating to the transfer of subjects from the Federal to the Provincial Governments have been analyzed in the NRB. The proposals of the National Reconstruction Bureau will be considered by the competent fora and a final decision will be taken soon. Subsequently NRB will play a lead role in the implementation of the approved proposals. COMPUTERIZATION OF RECORD-OF-RIGHTS RECORD Conferment of proprietary rights on the non-proprietors in Abadi Deh in ICT and computerization of record-of-rights is a recent initiative of the Federal Government. This will enable the citizens, in general, and non-proprietors in particular, to have clear title of land and thus use the record-of- rights as a collateral. This initiative will change the centuries old system of record management in the Revenue Department of the ICTA. NRB in collaboration with the ICTA, NADRA and a private accountancy firm has been charged with the responsibility of steering the project. The focus of the project is both on computerization of records-of-rights as well as on modernizing the processes of the Revenue Department to achieve the objectives of transparency, efficiency and improved service delivery. The National Reconstruction Bureau will deploy experts to analyze the intricate systems and procedures of the land revenue system. The lessons learned in the ICT will be used by the Provinces to revamp the Provincial Boards of Revenue and Revenue offices. MEDIA AND GOVERNANCE Pakistan moved in the 21st century with a new governance system which replaced a hundred and fifty years old system of administration. The old system of administration was best suited to the requirement of the colony. The new system at the District level focuses on integrating the common man into the process of development. The bureaucratic relationships have been changed and new democratic institutions are responsible to ensure improved service delivery by the district administration and tehsil municipal administration. Like LGO 2001, Police Order, 2002 provides for establishment of new institutions for oversight of the police operations. All these developments must be known to the people so that they can judge the performance of their elected representative and at the same time benefit from the new administrative set up. National Reconstruction Bureau has been pursuing a strategy of reducing the knowledge gap about devolution. The system is only 4 years old and it is desirable that a long-term strategy is devised to make people aware of the new system, the roles and responsibilities of the people, the roles and responsibilities of the elected people at the local level and the responsibilities of the local government offices to provide better services to the people. Media offers best opportunity to fill the knowledge gap. NRB has established a Media and Governance Cell to exclusively focus on the requirements of Media, develop documentaries and disseminate knowledge in a systematic manner. This area of focus of NRB requires massive investments in the next three to five years. CITIZEN COMMUNITY BOARDS The hallmark of devolution is participation of people in the development process. The Local Government Ordinance, 2001 provides legal framework through which people can participate in the development activities at the local level. The Citizen Community Boards (CCBs) can be formed by a group of 25 or more non-elected citizens in a locality for a number of purposes as described in the law. The main function of the CCBs is to prepare development projects as required by the community, raise 20% cost of the project and take up to 80% of cost from a local government. Each local government is responsible to earmark 25% of its development budget for schemes/projects to be undertaken by the CCBs. To promote establishment of CCBs, it is necessary that the citizens, CBOs and local government functionaries are trained in the development of the project proposals, submission of the project proposal to the local governments and implementation of the projects. NRB will continue its work in this direction in collaboration with the Devolution Trust for Community Empowerment (DTCE) and other stakeholders. FISCAL DECENTRALIZATION AND INTER-GOVERNMENTAL TRANSFERS A new system of local government finance was installed in July, 2002 as an integral part of devolution. The Provincial Finance Commissions have been established in the provinces and are responsible for determining the share of the provincial government and the local governments in the Provincial Consolidated Fund. The local governments are responsible for budgeting, local councils approve budgets and through Accounts Committees monitor the use of resources. Auditor General is responsible to Audit the expenditures of local

government. The new system must be understood by all the functionaries and the elected representatives. Budget Rules, Fiscal Transfer Rules and Accounts code have been notified. Other Rules are being prepared. A gigantic task of capacity building of functionaries and elected representatives is to be completed. NRB will continue its support to various decentralization support programmes initiated by development partners to strengthen fiscal decentralization process. It is estimated that the entire effort will take three to four years to fully implement the local government finance system. NARIMS The Local Government Ordinance, 2001 recognizes the right of the citizens to obtain information about the working and performance of the local governments. This objective can best be achieved through use of information technology. The Local Government Ordinance also requires the Provincial Governments to establish information technology offices. NRB has developed NARIMS Software which will enable IT Offices to become functional very quickly and meet all requirements of all District Government officers, elected representatives and citizens. NRB is supporting all Provincial Governments in installation of the software in the selected districts like Abbottabad, Larkana, Lasbella, Karachi, Chakwal and is supporting all the Districts Governments for the installation of this copyright software. This will be extended to the Tehsil Municipal Administration as well. The successful use of NARIMS requires training of both the locally elected representatives as well as local government functionaries. NRB with the assistance of the development partners will continue its support to Provincial and Local Governments. The instructions relating to installation of NARIMS in the District Governments are being disseminated to all the concerned. This dissemination process in itself requires huge investments. TAXATION As part of the new local government finance system installed in July, 2002, the Local Governments have been empowered to levy and collect local taxes. The most important tax entrusted to the Tehsil Municipal Administration is the property tax. The local governments require technical support in the form of manuals as well as improved procedures to effectively utilize their taxation powers and increase their own source revenues. NRB will provide support to the Provincial Governments in the development of taxation manuals and also enhancing the ability of the local governments, particularly TMAs to collect their revenues. STRENGTHENING OF INSTITUTIONS The efficient working of Provincial Finance Commission, Local Government Commission, Office of the Zila Mohtasib, Zila Mushawarat Committee, Accounts Committee, Monitoring Committees is an important pre-requisite for strengthening the decentralization process. In order to make the working of these institutions/committee effective, rules/regulations and bye-laws are required. Some of these have already been developed. Model rules are being developed by the NRB which will be promulgated/notified by the Provincial Governments. The National Reconstruction Bureau will continue its work for development of the model rules, particularly for the institutions like PFC, LGC and Zila Mohtasib. NRB had issued in the past guidelines for the monitoring committees. These guidelines will be converted into model rules. The effective performance of the monitoring committees shall ensure improvement in service delivery at the local level. ENFORCEMENT OF LOCAL AND SPECIAL LAWS Based on the 3 years experience of the enforcement of local and special laws by the local governments and the recommendations of the Provincial Governments, the NRB developed a new enforcement mechanism to ensure that local governments enforce the provisions of the LGO and Local & Special Laws effectively. The Provincial Local Government Ordinances have been amended appropriately to entrench the consensus amendments in the law. In order to educate and train the officers of the local governments, the provisions relating to enforcement mechanism of the LGO 2001 and local and special laws, the NRB is focusing on the development of the training manuals. The training programmes on this subject shall be run by the Provincial Governments with the technical support of the NRB. MUNICIPAL MANAGEMENT To make the TMAs fully functional and appropriately perform assigned functions, new manuals relating to licencing, water supply, sewerage and waste disposal, spatial planning etc., are being developed by NRB in collaboration with development partners particularly the World Bank through the Water and Sanitation Programme (WSP). It is estimated that within 2 years, capacity of TMAs will be enhanced through new manuals and training of relevant Tehsil/Town Officers and employees. CAPACITY BUILDING In the first term of local governments through Training Material, Training of Trainers and input of its officers/consultants in training programmes for Zila/Tehsil Nazims/Naib Nazim, NRB provided technical support to Provincial governments. NRB will continue providing technical support to the provincial governments for organizing capacity building programmes for the elected representatives of the 2nd term and local government officers. The Federal Cabinet had approved the establishment of School of Local Governance in November, 2002. In collaboration with the Establishment Division, Civil Service Reforms Unit and the National School of Public Policy, School of Local Governance is being established. Under this project, the capacities of the existing local government training institutions in the provinces as well as under the Federal Government will be enhanced. NRB will invest resources for the development of the new training manuals as well as steering the project of School of Local Governance. POLICE RULES Police Order, 2002 replaced the Police Act, 1861. A number of institutions have been/are being established under the Police Order, 2002. The effective implementation of the Police Order, 2002 requires development of the rules and regulations. The National Reconstruction Bureau is preparing Model Rules for the Public Safety Commissions at the National, Provincial, District level as well as for the police establishments in consultation with the Provincial Governments. The Police Rules made in 1934 shall be replaced by the new Rules. Rules of the Public Safety Commission and other institutions under the Police Order will facilitate the working of these institutions. Police Officers, Members of the Public Safety Commissions, Zila Nazims and DCOs will be trained. NRB will support the provinces in the capacity building programmes as well. FINANCIAL INTERMEDIATION FOR POVERTY REDUCTION The objectives of good governance can best be achieved by introducing pro-poor policies. In this context, it is desirable to focus on the process through which the poor in the society have access to the economy’s savings and to use credit to initiate new small scale economic ventures. The National Reconstruction Bureau has developed the model to improve the relationship between financial institutions and the poor. It is estimated that the implementation of the new model will enable, at least, 18 million people to have access to the credit from the financial institutions in rural areas of the country. The NRB is the focal organization for this initiative and will refine the Model in collaboration with all the stakeholders including the State Bank of Pakistan, NADRA and administrative Ministries / Divisions for final approval of the Prime Minister.

*Based on summary prepared by the NRB

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53. The concluding comments in the situational analysis indicate the challenges to be faced in the

next five years. They require the consolidation of the achievements to date, the strengthening

of successful areas of the reform process and new activities designed to address the

weaknesses that have emerged.

54. An important consideration for developing the strategy is the fact that NRB was created to

develop and carry through the reconstruction of governance in Pakistan and as such, it does

not have a role once local government reconstruction is completed. In the present context it is

expected to be terminated in 2009 or 2010, that is shortly after the local government bodies’

current protected status under the sixth schedule of the 1973 Constitution is removed or after

the third round of local government elections are completed.

55. The recommended strategic focus of the next phase of UNDP support for devolution policy

following the completion of the Support to Good Governance project is firstly on the

consolidation and further implementation of the reconstruction initiatives designed and

initiated under Phase I and Phase II of the Support to Good Governance Project; secondly the

development of new initiatives to strengthen the policies for reconstruction at national and

provincial levels of government, and thirdly the development of initiatives to strengthen the

implementation of reconstruction reforms at provincial, district, town, tehsil and union levels

of government.

56. As with the Support to Good Governance, the principles underwriting the strategic focus are

that the project should be people-centered, service oriented and right and responsibility based

comprising the right to information, the right to participation and representation and the right

to development. The methodology involves consensus building at all levels from citizen to

national government, the promotion of ownership in the devolution of government and local

empowerment. Furthermore the promotion of partnerships between vertical tiers of

government and horizontally between elected and administrative institutions of government,

civil society organizations and associations, the private sector and donor organizations is a

basic principle in the programme.

57. Within this framework, the programme proposes to contribute towards three major

institutional changes helping NRB to consolidate the reforms as further outlined below. First,

support for major reform areas identified by NRB in the internal strategy review process

2004/5 and presented to the Pakistan Development Forum (2005). This includes areas such

as the establishment of a local civil service, Federal to Provincial devolution, fiscal

devolution, and Provincial administrative restructuring. It is proposed that technical advice is

provided for the proposed reform of the system of local governance training institutes,

including in particular their capacity to reach out to the local governments (see further

below), but will not include support for implementing the reforms. Within the context of

fiscal devolution, the programme will support NRB in focusing on the creation of a broad-

based dialogue (see further below) and in ensuring that women and vulnerable groups are

consulted and that the impact of reforms on these groups is monitored and assessed. The

project will identify measures to enhance the resource base for sub-provincial development

activities including those in the area of tax collection and local resource mobilization.

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58. Second, responding to the major need identified above, a significant part of UNDP’s support

will concentrate on developing a local governance system with stronger citizen

accountability. Focus areas will be: (i) participation through representation in local

governance institutions, including e.g. the representational arrangements and electoral

processes and the functioning of political parties at the local level, which together with direct

participation aims at strengthening citizen power in the local governance system; (ii) direct

participation in planning, budgeting, management, audits etc. which will help develop the

downwards accountability; (iii) strengthening the development of mechanisms providing

citizens with access to recourse; (iv) assessing the merits of potentially applying a

performance-based grant system developing basic ‘safeguards’ (minimum conditions) and

incentive in the funding arrangement and focusing on the implementation of legal

requirements with respect to participation, transparency and accountability; and (v)

developing a national plan for capacity development to support the implementation of the

above.

59. Third, the aim of the programme is to help reaffirm the vision of decentralized and devolved

government and communicate this vision to all stakeholders from the level of the individual

citizen through to national government. It will work to build further the consensus of

stakeholders at national and sub-national levels of government and civil society for the

reconstruction agenda. Research and monitoring initiatives will gather detailed information

on the experiences and progress achieved to date; these will be fed back into the work of

refining policy and implementation activities in order to consolidate and strengthen the

reform process. Within this framework, the programme will support the development of the

NRB as a secretariat supporting the functioning of the National Implementation Body as a

forum for a national dialogue on devolution which includes MoF, MoPD, MoLG, and various

line ministries.

60. Gender mainstreaming is an integral part of the implementation strategy with gender equality

concerns being a central concern at all levels of policy and in all areas of implementation in

the devolution reforms. To this end all project activities will be subjected to gender analysis

and review through linkages established between the project and the Gender Support

Program of UNDP, and all elements of the programme, in particular related to output 2, will

have specific focus on the representation and participation of women.

61. Poverty reduction is also an integral element in the implementation strategy and UNDP

should ensure that the objective of poverty reduction is secured in its support to the

reconstruction agenda.

62. Prioritizing the above areas for UNDP support implies that the programme will not provide

support in a number of areas which are nevertheless very important for the devolution

reforms in Pakistan. These include: (i) The management of local elections. UNDP provides

support to the election commission, but additional support will not be provided specifically

for the management of local elections. However, it should be noted that the first dimension of

the first component suggested above implies significant focus on electoral systems. (ii) The

provincial and district training institutes. It is important that the training undertaking is

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anchored within the government’s own training institutions, albeit supported and facilitated

by other non-government training organisations possessing the capacity to improve and

strengthen the content and delivery of trainings. Experiences can be drawn from UNDP’s

support for DTCE and for the SDRB project. In particular the delivery of training to lower

levels of local government and to communities requires qualitative changes in the nature

trainings and the form and manner in which they are delivered (iii) The transparency of

government functioning will be an important area for strengthening other accountability

mechanisms, not least those based upon citizens. Information on the work of provincial

government, of the District Council, of the District Local Government Commission, of the

Provincial Local Finance Commission are examples of areas in which the provision of

information should be increased. Similarly the capacity of the local Urdu media to draw upon

and disseminate such information will also be important. At present this is not adequate and

should be improved.

63. As outlined above, UNDP will continue to provide support for policy formulation and, in

particular, policy implementation through NRB. As such, the main focus will continue to be

the capacity of this institution to function within the mandate provided while aiming to help

bring about broader ownership on the part of other agencies. However, as is noted above,

NRB should be considered a time- and context-specific institution. Therefore, depending on

GoP policy decisions, it might well be necessary in the longer term to support the

development of capacity within the MoLG to support the reconstruction agenda and the work

of the new system of local government as the country moves towards the end of 2009 and

beyond.

64. The relationship of the support to devolution to the Gender Support Project will be important

for securing gender mainstreaming in the project and also for the experience in working with

training and training institutions that the GSP has already accumulated.

65. The support to devolution should build upon the current phase of EIROP and seek to

incorporate the successes achieved within that project to date. The possibility for building

upon the work of the EIROP project should also be a consideration in the activities under the

new Support to Devolution and Good Governance project.

Capacity Development Strategies to Support Local Governance in Pakistan

66. The remainder of this chapter seeks to provide some suggestions for capacity development

strategies for the next phase of support for the implementation of devolution policy at

Provincial and local level. The section is divided in two components:

Capacity development for local governance (provincial and local level)

Knowledge management and practice development in support of devolution policy

(national level)

Provincial and Local Level

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67. As the analysis of current and past programmes above (see section on ‘UNDP support for

Institutional Reforms’) suggests, despite the previous projects being well designed in terms

of following the policies of the Local Government Plan and Ordinance, there still exist some

weaknesses that need to be addressed. As the evaluation of the EIROP pointed out,

classroom training is not sufficient in improving capacities of local governments to respond

to the needs of their constituents. In addition to individual capacity building of staff, it is

necessary to build up institutional and societal capacityTP

11PT. Also, inadequate attention was

given to disadvantaged groups as there was a limited focus on pro-poor services, nor was

there sufficient facilitation of participatory planning and stakeholder involvement during

project design. Below are some strategies drawn from experiences from different countries

that may provide some lessons for the next stage.

68. The EIROP evaluation points out that though a lot of emphasis is put on classroom training

and building up individual capacity of elected official and staff at the local government level,

unless specific strategies are undertaken to implement institutional capacity building

individuals are unable to implement what they have learned. Training may have improved

individuals’ awareness of their rights and duties, but they are unable to make any significant

impact once they return to their posts. There is often little follow up and despite building

individual capacity, the institutional set up prevents them from being able to exert influence

in local administration. More than just a one-off training session, it is beneficial to provide

continuous support as well as build up a process to promote citizen interaction and

participation. As the evaluation points out, the trainings should be more focused, for a longer

duration and more participatory. These experience can be compared to e.g. Bangladesh

where the Strengthening Local Governance Project builds on lessons learned from the

UNDP/UNCDF Sirajganj Local Governance Development Fund Project on developing capacity

for local governments:

o Training alone is not an answer to the need for capacity building and other

interventions were necessary

o Assumption that a single and unsustainable delivery of training over the course of

one term of elected office would impact significantly on the capacity of locally

elected bodies

o Inadequate understanding of how to address the wider gol of capacity building

and limited understanding of how to strengthen training delivery

o Failure to build on existing structures which might ensure continuity

o Excessive dependency on large number of external consultants

o No demonstrated ownership, financial or policy commitment

o Assumption that central government agencies would be willing and able to deliver

the training program

o No synergies established with NGOs or other training agencies

TP

11PT “Capacity is the ability of individuals, organizations and societies to perform functions, solve problems, and set and achieve

goals. Capacity development entails the sustainable creation, utilization and retention of that capacity, in order to reduce poverty, enhance self-reliance, and improve people's lives.” (HTUwww.undp.org/capacityUTH)

http://www.undp.org/capacity

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o Lack of distinction between National Executing Agency and National

Implementing Agency – compromising project monitoring

o Absence of earlier intervention by UNDP – inadequate monitoring

69. Hence, cutting across the above, the programme will help redefine the national and

provincial level framework to develop the individual, organization and societal capacity. It

will particularly aim at assisting in developing approaches to reach out to the local

governments with longer-term support aimed at developing the organizational capacity and

functioning of the tiers of local government in their local contexts, and as such, offer an

alternative to capacity development through short trainings at district and provincial training

institutions. Also, it will assist in ensuring national and provincial leadership of the capacity

development activities with respect to their coverage, scope, methodologies, role and use of

training institutions etc. A central objective in the design and implementation of capacity

development activities should be to develop strong partnerships to continue the

implementation of the reconstruction agenda. Key institutions capable of strengthening local

government management and citizen participation in local government will be identified and

their activities in these areas strengthened. Whereas most of the support for capacity

development will be a provincial government responsibility, NRB can have a very important

function in devising a national framework for capacity development. However it would be

crucial that the flexibility to adapt based on the provincial and local contexts is maintained.

70. It is recommended that a Capacity Development Strategy is formulated for the provincial

level programmes which will have the following major components TP

12PT: The proposed CDS is

most easily described in terms of its:

i. a clear institutional framework (who does what);

ii. a demand-driven component build on the premise that it is the responsibility of the local

government to assess their ‘capacity gaps’, identify corresponding CD needs, and then

seek to meet those needs. This would require the following steps: (a) LGs will undertake

self-assessment of their CD needs; (b) following a self-assessment, each LG will then

design its own, simple, two-year CD plan specifying what and whose capacities are to be

strengthened. In order to stimulate LG “demand” for CD services, the programmes will

include the formulation of a local CD plan as a prerequisite for Lg inclusion in its

programme. Seen from an overall perspective, LG capacity development plans will

represent the sum total of “demand” for CD services;

iii. a supply-driven component. The CDS will not be entirely demand-driven. It should

include a core, mandatory component that will be delivered to LGs irrespective of

whether they have or have not identified such CD activities. This is to ensure that key LG

TP

12PT This proposal draws upon the design of the Capacity Development Strategy in Nepal developed with support from

UNDP and UNCDF. See e.g. Jakob Haugaard (2005) Capacity Development of Local Bodies in Nepal, working

paper, LENPA Forum on Capacity Development, April 25-28 2005 and Capacity Development Strategy – Proposals

(2nd Edited Draft).

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functions receive due attention – which may not be perceived as issues at the level of

individual LGs TP

13PT;

iv. a coordination system for matching demand for and supply of CD services;

v. quality control system for ensuring appropriate “systems and procedures” and training

curricula;

vi. financing modalities.

71. As emphasized above, to respond to the needs for capacity development, it would be crucial

that a delivery mechanism is established which allow the programme to reach out to the

village, union, tehsil and district levels to support capacity develop on a continuous basis.

Countries have addresses these challenges in various ways (see insert for examples)

Delivery Strategies for Capacity Development Support – Country Examples

In Nepal, the UNDP programme set-up has since many years consisted of an advisor and

project funded officers (covering e.g. planning and monitoring etc.) working as LG staff at

district level. At village level, 1000 units have had a social mobilizer who has been

responsible for both community empowerment/development as well as capacity development

of local bodies. It was agreed that a full-time advisor at district level was required in the

beginning but that it created dependency in the long run. Hence, advisors are increasing

placed in sub-regional hubs traveling to the districts as needed – a solution which also

enables the programme to have more specialized advisors covering e.g. LG finance,

infrastructure design etc. responding to demands of LGs with increasing levels of in-house

capacity. Danida’s programme (prior to the conflict) Capacity Building Support to Doti and

Surkhet Districts focuses on training at the Ward and Village level and had 10-20 locally

recruiting trainers for each district which could assist village in all aspects/stages of planning,

financing and implementation of local services, and help ensure participation of women and

disadvantaged groups. These trainings focused on facilitating the understanding of rules and

regulations as well as their responsibilities. Particular emphasis was placed on reaching out

to women and including women trainers. The programme also addressed the need for

community awareness campaigns, working with NGOs as well as promoting public audits.

In the Maldives – as a part of the Atoll Development Program, Maldives has sought to

improve capacity development at the individual, organizational and societal level. The

program focuses on incorporating community level perspectives in planning efforts at the

island level so that they can make decisions on overall community planning and not just

infrastructure development. While workshops and training programs are included in the

program, emphasis is also placed on the programs being locally owned and planned with

community participation.

National Level

TP

13PT the inclusion of a supply-driven CDS component is based on lessons learned internationally – see UNCDF (2003)

and UNCDF (2004) for discussions of local government capacity-building in Africa and Asia.

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72. “UNDP is the UN’s global development network, an organization advocating for change and

connecting countries to knowledge, experience and resources to help people build a better

life. We are on the ground in 166 countries, working with them on their own solutions to

global and national development challenges. As they develop HUlocal capacityUH, they draw on

the people of UNDP and our wide range of partners.” In accordance with the mission of

UNDP, it is important that the programme is able to contribute not only (financial) resources,

but also to connect NRB and other government and non-government counterparts to relevant

knowledge and experience from elsewhere and to provide technical expertise where needed

to facilitate this. It is acknowledged that the high level policy-makers in NRB have a strong

established knowledge network that enables them to draw on international experiences and

expertise when needed. It is also recognized that the devolution reforms Pakistan are very

much rooted in the specific political and development context present in Pakistan and as such

possess a strong ‘home-grown’ quality. At the same time they belong to a more general set of

development strategies found in different countries that stress the role of citizens in

governance, the importance of devolved local government, and the need for building

partnerships between government, civil society and the private sector. It is important that the

entire UNDP team with its accumulated knowledge and expertise in these fields contributes

toward these objectives in Pakistan. From the UNDP Pakistan perspective, this includes the

following major revisions in the way the programme works: (i) UNDP Pakistan needs to

ensure that the frontier of the ‘Community of Practice’ (CoP) goes beyond the UNDP

Country Office to incorporate staff deputed to NRB with entry points for the government

counterparts identified; and (ii) the current research position is expanded to a 3-4 member

knowledge management/research team in NRB.

73. In addition, a strong Community of Practice (CoP) should be established anchored in NRB

which will support the interaction between centre, provincial and local level in order to

analyse the experiences to date and identify the lessons these bring. UNDP will work in close

partnership with CIDA and the established network on devolution. Drawing on global

experience of UNDP in knowledge management, the support for establishing a national

Community of Practice (CoP) around key areas of national development/reform, including

decentralization (e.g. India) and support for national efforts to improve knowledge

management (e.g. Mongolia), UNDP will assist partners in developing the knowledge

management framework embedded in NRB which enable a national dialogue and analysis of

experiences.

Part 3 Management Arrangements

The mission is intended to provide a framework for discussion among UNDP and the national

counterparts in Pakistan of the future devolution process and UNDP assistance. As such, the

development of a project document is premature and the purpose of the mission was not to

develop a detailed programme design. As such, the following bullet-points are not intended to

constitute an outline of all aspect of programme management but merely highlight issues which

might merit consideration when the successor to the Support for Good Governance programme is

formulated.

http://www.undp.org/capacity/

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NRB has been the designated lead agency at federal for devolution reforms and has been

the implementing agency for the programme to date. Given the expected continued lead

role of the NRB until the end of 2009, it is recommended that NRB continues being the

implementing agency.

It is recommended that the National Implementation Body (NIB), be given a clear formal

role with respect to the programme. For example it could be appropriate to have the

Annual Work Plan (AWP) and annual budget placed before the NIB to receive its

agreement.

In order to allow sufficient flexibility in the implementation of the programme, it should be

considered to develop the AWP with a full budget allocation for the first 6 months of the

year and a 70% allocation for the second 6 months. This would allow for revision and

development of the AWP to meet needs arising during the first period. The six monthly

revision of plan should be staggered to meet the budgetary process at the national level.

The specific work plan for aligning the AWP process with the budgetary process should be

developed by the NRB.

There is a need for UNDP to take a lead in developing a donor group around devolution

with stronger ability to coordinate and achieve synergies across the different interventions.

Such a group should also seek to promote and secure the national ownership of the

devolution reform process. Government representation should be considered in order to

promote greater donor-government coordination towards these ends.

A joint Government-UNDP mid-term review of the programme might be a useful means of

ensuring that lessons learned from the first phase are adequately reflected in the second,

and to guarantee that the partners have a common understanding of achievement and future

direction.

The possibility of securing a greater degree of involvement form the main donors in the

continuing development and implementation of the programme also needs to be explored.

An institutional mechanism through which the AWP and budget would be presented to the

donor group for comment and advice might be one such means.

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Annex 1 - Draft Project Results and Resources Framework – Policy Support to Devolution and Good

Governance

UNDP Goal and Service Line Fostering democratic governance/decentralization, local governance and urban/rural development (Service Line 2.6)

Intended Outcome as stated in the Country Results Framework

Local authorities and communities in rural and urban areas enabled and involved in planning and management of development activities, including the provision public services (UNDP CP 2004-8)

Note: this CP Outcome does not fully capture the support for the policy/legal/regulatory framework for devolution which is mentioned in the narrative of the CP and the focus on national ownership, consensus and dialogue on devolution policy recommended by the mission (should the mission make recommendations for a revision or a second CP outcome related to policy/legal/regulatory framework for devolution?)

Outcome Indicators as stated in the Country Programme Results and Resources Framework, including baseline and target CP Outcome Indicators do not fully capture the support recommended provided (should the mission recommend revised outcome ind icators?)

Partnership strategy: NRB as the principal counterpart for the Support to Devolution and Good Governance

DTCE provides support for implementing and the UNDP programme for support to DTCE will be a partner in developing the national policy/legal framework for CCBs. Also, senior technical staff from DTCE will be involved in support for devolution policy;

The partnership between the Gender Support Programme and the programmes supporting devolution will be continued (e.g. for training of women political leaders and participation of women in local

governance). Gender specialists from GSP will be involved in the design and implementation of all major activities of the programme and complement/back-stop gender and other specialists working under the programme;

A partnership with UNDP poverty reduction and sectoral programmes will be established to ensure that all UNDP support is supportive of devolution;

Partnerships will be developed with the UNDP crisis prevention programmes, in particular to integrate support with respect to local Disaster Risk Reduction. DSP is potentially an important partner particularly with its work on fiscal decentralization. Building a functioning partnership with the different levels of DSP’s project implementation structure will promote

important synergies in support of the reform process.;

CIDA will be an important partner through its work in support of devolution (C-DSP) and in particular its experience of developing training capacities with government training institutes. SDC?;

LG training institutes at provincial level will be important partners in a strategy for sustainable capacity development – both in terms of their capacities and of those they train ;

NGOs will continue to be important partners , in particular for output 2 with their innovative approaches to the delivery of trainings and the development of the required materials and resources. Provincial governments will be important partners as those with primary responsibility for local government

Project name and number: Policy Support to Devolution and Good Governance

Project Outputs Output Indicators and Targets Indicative Activities Input

OUTPUT 1

NRB enabled to formulate and implement

devolution reforms identified in 2005 policy

review and strategy in an effective,

1.1 Policy recommendations provided and implementation of effective forms supporting

in the areas of: (i) establishment of sub-provincial civil service; (ii) Federal to Provincial devolution; (iii) fiscal devolution; and (iv) provincial administrative

xx

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Project Outputs Output Indicators and Targets Indicative Activities Input participatory, pro-poor and gender

sensitive manner

Need to build on EIROP experience and

work at the provincial level

restructuring

1.2 Policy recommendations provided for reform of Federal, Provincial and local

government training institutes, including coordination, curriculum and delivery modalities [support for implementation to be supported through other programmes]

1.3 Local Government Commissions and Provincial Finance Commissions supported to

effectively function as intended with the LGO (2001/5) 1.4 Additional areas of reforms identified by the Government of Pakistan supported as

agreed with subsequent programme plans

OUTPUT 2

NRB enabled to support implementation of

local governance provisions intended to

strengthen citizen accountability through

representation in local governance

institutions, direct participation of citizens,

CBOs and CSOs in local governance and

access to mechanisms for recourse

2.1 Analysis conducted, broad-based policy discussions facilitated and relevant

recommendations for policy changes made focusing especially on (i) the

consequences for accountability of formally non party-based local governments in a context of de facto strong political parties influence and of indirect elections of

District and Tehsil Nazims; (ii) representation of, and accountability towards,

women (including as an outcome of the 2005 reduction of women members in the councils); (iii) representation of, and accountability of local governments towards,

minorities and workers/peasants (including as an outcome of the 2005 shift to a

single electoral roll); and (iv) the formation of Village/Neighbourhood Councils as intended with chapter IX of the LGO (2001/5)

2.2 Support PGs in effectively supporting and monitoring the implementation of all

provisions of the LGO (2001/5) intended to strengthen direct participation in local governance with special focus on participation on women, minorities, and

workers/peasants and the most disadvantaged, including in particular participation

in planning and budgeting beyond the allocation for CCBs; development of the CCB

modality in districts not covered by DTCE; local management committees (school,

health, public safety etc.); and monitoring/auditing of service delivery performance

and audit of expenditure accounts Not NRBs responsibility - PGs 2.3 NRB effectively supporting and monitoring the implementation of all provisions of

the LGO (2001/5) in order to strengthen mechanisms providing citizens access to

recourse and ensure that formal and informal justice systems (including traditional and indigenous institutions such as the shuras and Musalihat Anjuman) function in

accordance with basic human rights principles.

2.4 Feasibility of introducing a system of ‘safe guards’ (minimum conditions) and performance incentives for institutional functioning in local government financing

to link funding with compliance with legal requirements, in particular with respect

to provisions to ensure participation, transparency and accountability (particularly) in areas of planning, budgeting, expenditures and achievements

2.5 National plan formulated for capacity development to strengthen citizen

accountability in local governance enabling local training institutions and NGOs ?

partners to deliver support in an effective and coordinated manner Needs specific

ideas

xx

OUTPUT 3

Support provided for NRB to facilitate a

consultative process involving key

stakeholders including government, civil

society and donor representatives in

3.1 NRB Secretariat effectively functioning to support the National Implementation

Body (NIB) for devolution and an agenda for coordinating policies across

education, health, local government, planning, public employment and welfare structures and systems developed and approved

xx

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Project Outputs Output Indicators and Targets Indicative Activities Input order to reaffirm and strengthen the

commitment to the agenda of national

reconstruction and draw upon lessons

learned from the devolution reforms to

date

3.2 Stakeholders at Federal, Provincial and District levels involved in consultative

process to assess previous and ongoing reconstruction initiatives with strong

knowledge management system to support sensitively – redesign maybe – stock taking

3.3 NRB enabled to access and analyse international knowledge and experience in order

to improve design of devolution reforms 3.4 Revision on-going reconstruction initiatives undertaken where found necessary in

consultations with stakeholders and Federal, Provincial and District levels, and new

initiatives finalized and approved where necessary 3.5 Public campaign developed to ddisseminate the vision of the reconstruction agenda

and the achievements to date to all levels and sections of society

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ANNEX 2 - INTERNATIONAL COOPERATION SUPPORT TO

DEVOLUTION AND LOCAL GOVERNANCE IN PAKISTAN (2005)

Below is a detailed description of bi-lateral and multi-lateral projects supported by donors in the

fields of devolution and local governance listed by the following sub-sectors:

(1) Policy Support, (2) Fiscal Decentralization & Financial Management, (3) Judicial/Legal

reform, (4) Civil Service Reform, (5) Local Government Training & Capacity building, (6)

Community Participation & Citizen Representation, (7) Other related programs.

SECTORS

DONORS

AMOUNT / STATUS

SCOPE / FOCUS

POLICY SUPPORT

Support to Good

Governance Group -G3

-UNDP

-Friedrich Nauman

Foundation (Germany)

-Asia Foundation

US$ 1.8 m. / ?

Federal - NRB

Policy Formulation

Social communication

Consultation

Support to Local

Ordinance Drafting

DFID L. 50,000

Support to Media and

Governance Cell - NRB

CIDA

C $ 100,000 / June 2005

Involvement of media in

creating awareness about

Devolution plan. Supporting Democratic

Electoral Process project

UNDP

NORAD

DFID

CIDA

Consortium of NGOs

DFID

DFID/SDC/EU

US $ 3.32 m.

US $ 1.33 m.

US $ 1.71 m.

US $ 32,000

L. 120,000

/ Status: CLOSED

$ 0.58m

Electoral Commission of

Pakistan

- Modernization of

operations

-Electoral management

-Voter Education

Campaign for women

thru NGO

-Training of ECP and

election staff

Research for Local

elections (Pattan): pre and

post LG election 2001

Analysis of LGE 2005

Parliament support

UNDP

US $ 500,000

Parliamentarians:

-policy analysis

-constituent relations

-Parliament secretariat Strengthening Geo

information and Digital

Mapping Capacity of

Survey of Pakistan

UNDP

US $ 415,476

Survey Training Institute

-Geo Information managt

-Spatialized socio-eco

data

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Supporting Government

Restructuring and

Reform

ADB US $ 150,000 NRB – 2001-02

Reinventing Govt.,

Intergovt. restructuring

Support to

Constitutional Reform

Options

DFID US $ 400,000 Support to NRB on

constitutional reforms

options FISCAL

DECENTRALIZAT.

& FINANCIAL

MANGT.

TA. Fiscal

decentralization

(2001-02)

ADB

DFID

US $ 1.8 M.

(Co-financed with DFID

for US $ 500,000)

-Manuals (5): Budget,

revenue mobilization,

auditing, accounting,

Fiscal transfers.

-Design of systems,

regulations, procedures

-Training to core district

staff (Nazims & N.

Nazims) 97 districts

Support to 2002 Financial

year’s budget Devolution and Fiscal

Federalism in Pakistan

CIDA (consultancy)

F. Vaillancourt

US $ 32,000 / Closed

Federal- NRB

-Fed-Prov. Fiscal

relations

-Local gvt finance

Punjab Public Sector

Resource Management

Program

ADB US $ 100 M.

Punjab 2002-03 (3yrs)

Public sector

restructuring, civil service

reform, tax/revenue

administration,

budget/expenditure

planning and mngt,

private sector deregulat.

Sindh Public investment

Management program

ADB US $ 50 M.

Sindh 2003 (3 yrs)

Restructuring of public

assets, province liabilities

re: project investments,

province-local govt

relations

Devolution Support

Program

ADB US $ 300 M.

Loan + TA Loan/Grant

(2002, 3 years)

4 Provinces (FY 2002)

- Decentralized planning

& finance

- LG Public access and

accountability (revenue,

expenditure, audit)

- Prov./LG support to

civil soc. & private sector

- C.B. to LG councils

&administrations

- Province support and

supervision of LG

- budget support for

poverty/gender in service

delivery

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Financial Management World Bank Technical mission

(Jan. 2002)

?

Budget & Accountability

Frameworks LEGAL & JUDICIAL

REFORM

UNDP

?

Information Technology

for governance Legal and Judicial

Reform (T.A.)

2001-02

ADB

US $ 2.7 (MOL)

Federal

-Support to the legal and

judicial Reform

-Access to justice under

the Local gvt. Plan

- Delay reduction, legal

education, IT solutions,

judicial sector

incentive/sanction/perfor

mance systems.

Legal aspects of

Devolution

2001-02

ADB US $ 150,000 (MoL) Review of Legal, Admin.

And Budgetary

implications of

devolution (including

change in executive

magistracy) for

subordinate courts and

public access to justice. Access to Justice

Program

2001-04

ADB

US $ 350 m. (MoL)

Access to Justice

-Judicial Training and

publications

-Police and administrative

Training and publications

- Legal empowerment,

citizen engagement, in

planning/monitoring of

services, Public

Knowledge and Legal

Literacy. Access to Justice of

Women in Karachi

(CIET)

CIDA (CIET)

US $ 32 000

Research study into

problems faced by

women. Institutional

strengthening of the

judicial system

ASIA FOUNDATION

US $ 1 m. ?

Design of ADB Access to

Justice Project

Ministry of Parallel: Law

& Justice

Gender Reform

(T.A.)

2002

ADB US $ 400,000 (MoWD) Policy and Legal reform,

Institution restructuring

(fed, prov, local govt),

mainstreaming gender in

plan/budget/expenditure

process, empowerment of

women elected

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representatives CIVIL SERVICE

REFORM

WORLD BANK

US$ 500,000

Loan

-Administrative

restructuring at fed, prov

and dist. levels

-Transition costs

-Bridging mechanisms

Public Sector Capacity

Building Project.

sStarted in July 2004

US$55m over five years

Objectives are to support

GoP's capacity to

implement its ongoing

economic reform program

and with three distinct

capacity building

objectives; broad-based

professional development

of public sector officers;

capacity enhancement in

key ministries and

agencies that are at the

forefront of the design,

implementation and

monitoring of policy

reforms, and;

strengthening of

regulatory agencies. LOCAL

GOVERNMENT

TRAINING &

CAPACITY BUILD.

Community

Infrastructure project

WORLD BANK, SDC

(Phase I only)

US $ 3.3. M.

NWFP - Ministry of

Local Government Water and Sanitation

Program - South Asia

WORLD BANK, SDC

(Technical Assistance)

-Design and testing of

Conceptual Framework of

Tehsil Municipal

Administration (TMA)

-Development of Outline

Operational Frameworks

for Spatial Planning,

Infrastructure and

Services, and Finance

-Development of

Infrastructure and

Services manual and

systems

-Training on preparation

of Tehsil Transition

Reports

-Development of concept

for Capacity Building of

local governments with

built in fiscal incentives

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Essential Institutional

Reform program

(EIROP)

UNDP

SDC

US $ 1.6 m.

US $ 2.9 m.

NWFP -

-Policy Planning

Techniques

- Project management

-Governance workshops

-Statistics/econometrics

-District Citizen Info

Centers Devolution Support

Program (C-DSP)

CIDA

CAN $ 6 M.

Punjab province

- Support to local

government (institutions,

administration, policies)

- Institutionalization of

Participatory planning

and management

- Delivery of effective

municipal services

Punjab Initiatives Fund CIDA C$ 2m Responsive fund for

innovations. Support to Punjab

Department of Finance

and District

Governments

DFID

US $L. 86,000

Training for Performance

Budgeting

Punjab

Trial District

Management Project

UNDP

US $ 1.3 m.

Balochistan (2 districts)

-Provincial policy reform

-Participatory techniques

-Community Participation

(social services)

-Effective linkages betw.

local gvt., line agencies

and communities

District profile Multi-Donor Support Unit ? (Pipeline) Brief District Profiles

(97) on Education, Health

and Population for

preparing District Dev.

Plans.

District-based social

indicators survey

UNICEF

Federal + Provincial

Bureau of Statistics

US $ 250,000 NWFP – 24 districts

(District Profiles)

CIVIL SOCIETY /

COMMUNITY

PARTICIPATION /

CITIZEN

REPRESENTATION

Communication for

Effective Social Service

Delivery ( CESSD)

CIDA

CAN $ 5 m.

2000-2006

NWFP

Social services delivery

in the devolution process

Institution Strengthening

for Government-NGO

ADB

US $ 400,000 Institution/Capacity

Building of fed., prov.

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Cooperation Agencies, selected NGOs,

legal and regulatory

reforms, facilitation of

NGO advocacy, social

audit and service delivery

role in devolution

process. Gender Equality

Umbrella project: - Women Councillors

Convention

- Consultation on

women’s Political

Participation

- Women’s political

Participation and

poverty Alleviation

(W3P)

- Women’s

Representation in Local

Government

- Mobilizing Women for

the Local Bodies

election

UNDP

DFID

NORAD

NORAD

CIDA (Aurat Foundation)

CIDA (Sarsabz

Foundation)

US $ 92,768

US $ 952,105

US $ 143,237

US $ U 3 mU

CAN $ 94,360

CAN $ 58,614

Education and

Mobilization of women

candidates and voters

All districts

- Focus: Women’s

District Councillors

Awareness raising at

community level all over

Pakistan

Faisalabad (union

councils): Training to

Women councillors

Democratic Rights and

Citizen Education

Programme

Legislative Watch

ASIA FOUNDATION

NORAD (Aurat)

US $ ?

USD 571,514

106 Districts

Newsletter for all over

Pakistan Effective Representation

of Women Councillors

CIDA (Aurat Foundation)

CAN $ 2 m.

2002 to 2005

-Provincial and District

resource Centers

Women’s

Representation in Local

Government Elections

Aurat Foundation

Duration:2005-2006

CIDA Contribution:

$2.4 million

This project addresses a

critical gender equality

need related to the 2005

local government

elections by incorporating

multiple approaches to

mobilize and support

women candidates for the

elections

Support to Gender and Duration:2005-2007 This project supports

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Governance Reform

Implementation

CIDA/ADB CIDA Contribution:

$4.5 million

broad gender

mainstreaming reforms in

the federal and four

provincial governments

of Pakistan.

Gender Responsive

Budgeting Initiative

(GRBI)

UNDP, SDC, Norway The overall goal is to

make government

accountable for their

gender budgetary and

policy commitments CIET: Phase 1: Community

Monitoring of Public

services

Phase 2: Citizen

Community Boards:

Local Tools for

Governance and

Community Monitoring

in Pakistan

Phase 3:

UNESCO-UNDP (CIET)

CIDA (CIET)

SDC/UNDP, CIDA

Closed

CAN $ 1.2 m.

-10 districts

-NRB

- Baseline indicators of

performance of key

public services: water,

education, water, police

courts, devolution.

-Remaining 87 districts

-NRB

Second round of National

Social Audit.

Devolution Trust for

Community

Empowerment (DTCE)

UNDP

NRB

CIDA

NORAD

US $ 2 m.

CAN $ 800,000

(3 years)

97 Districts -

Financing of Union /

Village councils and

CCBs originated projects

(cost-sharing with LGs,

training & C.B. activities

with NGOs)

Supporting Democratic

Development in

Pakistan - Asia

Foundation

USAID State Department US $ 1.4 M Coalition building within

civil society

Public consensus

Grassroots Democracy

Strengthening Pilot

programme

SDC $ .16m Increasing female

representation, building

three model UCs and

establishing Peoples’

Assemblies in Haripur

District NWFP

OTHER RELATED

PROGRAMS

Support to the Health

Sector Reform and

Research Unit

DFID L. 50,000 Implementation of

Devolution

NWFP

Support to NWFP

Department of Health

DFID L. 50,000 Health Planning and

Budgeting

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Decentralized School

Management

ADB $ US 100 M.

2002 (3 years)

Provision of district funds

to support local govt &

school initiatives for

infrastructure and

improved services

Decentralized Social

Services Program

ADB US $ 150 M.

2003 (3 years)

Support for district

improvements in social

sector governance,

institution building,

performance & service

delivery

incentives/sanction

systems

Systems Oriented Health

Institution Project

CIDA Duration: 2004-2010

CIDA Contribution:

$12.0 million

To improve quality and

delivery of primary health

care, especially for

women and the poor.

Through implementation

of decentralized health

services by federal,

provincial and district

level governments in

collaboration with civil

society, and in

accordance with the new

National Health Policy.

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SUPPORT TO Local Government Elections 2005 THRU CSO & GOP INSTITUTIONS

Donor Impl.

Partner Objective(s) Duration Amount Status US State Dept NDI Candidate Training 9 months $390,000 geographic area start & end date IFES Voter Education 12 months $400,000 geographic area start & end date

DFID NDI building local political parties Nov 04 - May 06 £350,000 pilot in Punjab

SDEPP II ECP capacity building & voter Jul 04 - Dec 07 $ 3.645 M on going:

education with UNDP

PATTAN Pre- during and post election 9 months negotiation under negotiation

research study - with SDC

expected feb-Nov 05

Norway No direct intervention to specifically support on LGE 2005 but our on going projects with Aurat foundation I.e Legislative Watch, UNDP -

Women Political School & Shirkat gah women legal status will be touching it in their respective projects

EC Centre for Civic

Media for democracy and 12 months 93,812 about to start

Micro Education governance. One of the euros geographic area

projects in activities will be the monitoring

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human rights

of local elections by the media

and democracy

Khwendo Kor

Support to democratisation and

12 months 89,438 about to start

the electoral process, focusing euros geographic area

on training of women councillors

BEFARe Female councillors political 12 months 99,355 about to start

training and integrated life skills euros geographic area

project. Also focusing on

training of women councillors

Policy Support for Devolution Pakistan -...

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