Report No. 14085-CO Colombia Local Government Capacity ...documents.worldbank.org/curated/pt/... ·...

Report No. 14085-CO

ColombiaLocal Government Capacity:Beyond Technical AssistanceJuly 7, 1995

Country Department IIICountry Operations Division ILatin America and the Caribbean

Document of the World Bank

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Colombia: Local Government Capacity Study

ContentsPreface ......................................................... iv

Acronyms and Abbreviations ......................................................... vi

Executive Summary ......................................................... vii

Chapter 1: Local Government Effectiveness: Evidence from the front-line .......................... 1

A new environment for municipios .......................................................... I

Local government effectiveness .......................................................... 2

The key questions .......................................................... 8

Chapter 2: Leadership and participation: The emergence of local capacity ......................... 10

Local leadership ......................................................... 10

Community participation ......................................................... 13

Sustainable capacity development ......................................................... 16

Chapter 3: Capacity building: Local initiatives, innovations and tribulations ...................... 18

The human factor: Skills and professionalization ......................................................... 18

Capital: The physical factor ......................................................... 21

Technologies: Improving the management process ......................................................... 22

The challenge of putting it all together ......................................................... 24

Local capacity development ......................................................... 27

Chapter 4: Addressing the challenge of local capacity development ........ . ............................ 29

The proposed strategy ......................................................... 29

Implementing the strategy ......................................................... 32

Concluding remarks ......................................................... 34

Annex 1: The municipios studied ......................................................... 35

Annex 2: The basic norms ruling decentralization ......................................................... 37

Annex 3: A conceptual framework to analyze capacity ......................................................... 38

Annex 4: Performance indicators in the water sector ......................................................... 43

Annex 5: Measuring performance ......................................................... 44

Annex 6: Opinion Surveys ......................................................... 46

Annex 7: A profile of Colombian mayors ......................................................... 47

Annex 8: Municipal employment in Colombia ......................................................... 48

Bibliography ......................................................... 49

Map of Colombia

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Contents (cont'd)

BOXES

1.1: And the water came with decentralization: An Acueducto for San Juar. Nepomuceno ............ 3

1.2: What do citizens think? ................................................................ 5

1.3: Local resource mobilization ................................................................ 6

2.1: Community leadership in Versalles ............................................................... 11

2.2: Violence, decentralization and local capacity ............................................................... 12

2.3: Innovation in community participation: The experience of Valledupar ................................ 13

2.4: The community influences government programs: The experience of Pensilvania ................ 15

2.5: The mingas in Ipiales ............................................................... 16

3.1: The dimension of capacity ................................................................ 18

3.2: The ICAM of Manizales ............................................................... 21

3.3: The administration in Ipiales ............................................................... 23

3.4: Innovative planning in Valledupar ............................................................... 24

4.1: Working with NGOs ............................................................... 31

4.2: A new approach to technical assistance ............................................................... 33

4.3: The role of municipal associations ............................................................... 33

TABLES

1. 1: Local resource mobilization ................................................................ 7

2:1: A sample of experiences with community voice ............................................................... 14

3.1: Professionals in the municipal administration ............................................................... 19

3.2: A sample of local capacity enhancing initiatives ............................................................... 25

iii

Colombia: Local Government Capacitv Study

Preface

Colombia has made a strategic decision to the sixteen municipalities was organized be-decentralize to subnational governments re- fore the study was launched. The final designsponsibilities in sectors that are key to the of the case studies reflects the results of thatcountry's future. The success of that strategy workshop. Each case study involved work-depends critically on the capacity of local shops with communities and public servants.governments to perform their new duties in Opinion surveys were conducted in the fouran effective way. The World Bank and the largest municipios. A preliminary version ofColombian National Planning Department this report was discussed with a subgroup of(DNP) identified this as an area that deserved the participants in the initial workshop withspecial attention as part of their joint work mayors. This version incorporates theirfor the 1994 Poverty in Colombia report. comments. Support by the Fund for Innova-

This report presents the results of a joint ef- tive Approaches in Human and Social De-fort by the two institutions to address the velopment (FIAHS) made possible many ofneed for a more complete understanding of these participatory activities.the condition of capacity development in The World Bank team was composed byColombian municipios. It reflects the find- Ariel Fiszbein (mission leader), Tim Camp-ings of a study of sixteen local governments bell, Eduardo Wallentin and Marthain Colombia. The purpose of the study was Laverde. The DNP team was led by Albertoto learn about the progress made by munici- Maldonado and Jorge Acevedo. The re-pal governments since 1988 in developing the searchers in charge of the case studies thatcapacity needed to successfully perform their constitute the empirical basis for this reportnew responsibilities and the means through were, in alphabetical order, Juan Camilowhich they achieved those results. Those Cardenas, Ariel Cifuentes (final report pre-lessons provide the empirical basis for a pared by Gonzalo Vargas), Johnny Palenciastrategy of local capacity strengthening. and Camilo Villa Van Cotthem. They had the

In-depth case studies were prepared for six- assistance of Oscar Rosero, Miriam Mer-teen municipios following a common meth- cedes Castilla, Olga Perez and Gonzalo Var-odology. T'hey are not necessarily a represen- gas respectively. The study was initiated inodoovy Thmpleyof are notlnecessarilyan re eni - June 1994 with the support of Cecilia Mariatativc sample of all Colombian municipali- Velez and Manuel Salazar who at that timeties. Rather, they were selected on the basis were thd Depuel Salazar o at at the

tha, o iffret egres teymade attempts were the Deputy Director of DNP and thethat, to different degrees, they made this Chief of the Unidad de Desarrollo Territorial.to develop capacity. The strength of this evi- Their successors, Juan Carlos Ramirezdence, however, resides in the fact that these (Deputy Director, DNP) and Ileana Kuremunicipalities-which face similar problems (Def, DToere DNP) andand constraints as the rest-have, to different (Chiefp UDT) offered continued support anddegrees and varying success, faced-up to the made possible for the study to be success-challenge of decentralization. By studying fully completed.their experience we have learned many les- Emesto May and Hans Binswanger helped insons valid for other municipios. the definition of the conceptual framework

The study followed a participatory approach. used in the case studies. The team benefitedConcepts and methodologies were discussed from comments and advice by several people.openly in Colombia and the design of the In Washington by Dan Morrow, Normancase studies reflects suggestions by several Hicks, Ernesto May, Hans Binswanger, Vin-professionals in the field of institutional de- cent Gouame (peer reviewer) and Rita Hiltonvelopment. A workshop with the mayors of (peer reviewer). In Bogota by Fernando Ro-

iv


jas, Jaime Silva Bautista, Hector Sanin An- ized by DNP in Bogota on June 15, 1995.gel, the members of the UDT and partici- Comments by Cesar Vallejo and Jorge Enri-pants in a seminar organized by the DNP to que Vargas, who reviewed the report for thatdiscuss a preliminary version of the report. occasion, are welcomed.Sofia Corredor provided valuable secretarial Dan Morrow, Norman Hicks and Yoshiakisupport in Bogota. Margarita Caro provided Abe were, respectively, the managing Divi-excellent help in the preparation of this re- sion Chief, Lead Economist and Departmentport. Director.

This report was discussed with officials from Finally, the team wishes to thank the mayors,

several ministries, departments, municipios, govermnent officials and citizens of the six-the Federaci6n Colombiana de Municipios te msand cofinancmng funds, in a meeting organ- te uiiaiiswoegnru upr

and cofaningfuns,nameeingorgnand collaboration made this study possible.

v


Acronyms and Abbreviations

ACUAVALLE Water Company of the Department of Valle

ASOOBANDO Asociaci6n de Municipios de la Provincia de Obando

CPC Community Participation Commnittee

CPU Central Planning Unit

DNP Departamento Nacional de Planeacidn

DRI Desarrollo Rural Integrado

EMPOCALDAS Water Company of the Department of Caldas

EMPONARINO Water Company of the Department of Narifio

ESAP Escuela Superior de Administraci6n Publica

FINDETER Financiera de Desarrollo Territorial

FIS Fondo de Inversi6n Social

FUNDAGUA Colombian Non-Governmental Organization

GTZ German Cooperation

ICAM Instituto de Capacitacion Municipal de Manizales

IDEA Instituto de Desarrollo Economico de Antioquia

INSFOPAL Instituto de Fomento Municipal

ISERVI Instituto de Servicios Varios de Ipiales

NGO Non-Governmental Organization

PDI Programa de Desarrollo Institucional

PNR Plan Nacional de Rehabilitaci6n

PPF Production Possibility Frontier

PROCOMUN Colombian Non-Governmental Organization

SISBEN Sistema de Selecci6n de Beneficiarios

SSP Strategic Situational Planning

TPU Techno Political Unit

UBS Unidades Basicas de Servicios

UFW Unaccountable for Water

UMATA Agricultural extension unit

UNDP United Nations Development Program

vi

Colombia: Local Government Capacity Stuidi

Executive Summary

The Questions 5 This report should be seen as an ef-fort to address both the scarcitv of informa-

1. For almost a decade now, Colombia tion on local capacity and the need for ahas embarked in a process of state decen- strategy that goes beyond the conventionaltralization which, combined with other technical assistance approach. It is based onstructural reforms, is reshaping in a funda- case studies of sixteen municipios. Jointlymental manner the way public policies are conducted by the World Bank and the Co-conducted. The transition to this new svstem lombian National Planning Department. Theis not an easy one. More than a thousand studies reviewed the municipal provision ofmunicipalities, seventy percent of which have three services (water, education and roads),populations of less than twenty thousand, over the period 1988-94 correspondinig to themust develop the capabilities to perform ef- administrations of popularly elected mavors.fectively the new duties starting with little or The municipios were selected on the basis ofno tradition of public administration and lo- their efforts to develop the capabilities fe-cal governance. As a result, a natural con- quired to perform the new responsibilities.cern has emerged within Colombia on the The approach to local capacity developmentcapacity of local governmcnts and the appro- we are proposing is based on the lessons de-priate means of strengthening it. rived from their experience.

2. The conventional view indicates that 6. While the report offers new cvidcncca successfil1 process of decentralization re- on the state of the decentralization proccss, itquires a massive technical assistance effort, does not claim to provide an assessment ofled bv the national level. to help local gov- nation-wide trends. Also, bv focusing on is-ernments develop their capabilities: the pro- sues of institutional capacity, the report hasfessional and technical skills of their staff, not attempted to evaluate the current systemthe equipment, materials and buildings re- of financial incentives under which mu-

quired for operations, as well as their organ- nicipi.os operate. T'his will be the subject ofizational. planning and executing functions. future collaborative work with the Colotmi-

3. However, a certain skepticism re- bian government.garding the effectiveness of this approach hasdeveloped within Colombia and in the Bank. The LessonsIt is fueled, in part, by the frustrating experi- 7 The picture emerging from the expe-ence of technical assistance programs that do rience of these municipios is encouraging. 1xnot secm to achieve sustainable results. Con- rince of cistis uraging.eBsensus on a new approach that postulates the making use of existing, buit under-uitilized-ieffis of a nst ulatssth capabilitics and through conscious efforts to

incffefpurely supply-driven assis- upgrade them, most of the local governmentstance programs is slowly emerging. reviewed in the studv have been able to meet

4. The task of defining the characteris- the challenge of decentralization in a rela-tics of a new strategy for local capacitv de- tively effective way. The perccption of gcn-velopment is made more difficult by the in- eralized collapse in services following devo-sufficient information on the current status of lution to local governmcnts can be rejectcd.Colombian municipios the effectiveness of at least for these municipios. Serious prob-their governments and the alternative wavs in lems were observed in only a few places or inwhich they have attempted to develop their specific scctors. On the contrary, the studies,capacitv in response to the new circum- backed up by opinion survevs, found evi-stances. dence of increased service coveragc. citizcn

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Colombia. Local Government Capacity Study

satisfaction, attention to rural areas and the municipios may experience capacity limits-poor, cost consciousness and resource mobi- particularly in terms of hiring a cadre of ade-lization efforts. quately remunerated professionals-due to

insufficient scale. Also, the lack of institu-8. The central message of the study is tional efforts to dissem'nate information onthat competition for political office has, in

many case, opened he doors o respon best practices and alternatives to municipalmany cases, opened the doors to respon-sible and innovative local leadership that, problems, forces most municipios into the

in turn, became thedrivingawkward position of 'reinventing the wheel"

capacity building efforts. More wide- when dealing with capacity development.spread community participation-voicing Finall, doubts and uncertainties regarding a

srapdly expandIg legal and regulatorydemands, making choices, being involved framework, combined with sometimesin projects-has expanded the range of frieok obnd wt oe'c

in.. projects-has expanded the rangeof strained inter-governmental relations, do notpossibilities open to municipios and pro- contribute to maintaining an environmentvided the basis to sustain local government propitious to local goverment effectiveness.capacity over time. Leadership and par-ticipation, thus, consolidated corporate 12. Furthermore, the cases reviewed arestrength in local governments. not necessarily representative of current9 . . events in the rest of the country. Neverthe-

Amarityofteloal go t less, the experience of these municipios of-reviewed for this study enhanced their ca- fers many lessons to other Colombian mu-pabilities by giving attention to areas such asstaff skills and professionalization, equip- nicipios facing similar challenges and con-ment, materials and buildings, organization, straints on how to build capacity. It alsoand planning and execution functions. They provides valuable lessons to national leveland laning nd xectionfuntion. They institutions concerned with making decen-did so drawing upon resources which already tltion corkiexisted inside the public sector or in the tralization work.community that were not fully utilized underthe old system. They also initiated efforts to The Challenge Aheadupgrade the skills of their staff (through new 13. The chief findings of this study-thehirings and training), expand the equipment importance of leadership, of civic involve-available to them (for example, contracting ment and of political reform, as well as theout to the private sector), and improve the tremendous potential for innovation at theway local administrations work (for exam- local level-lead us to propose an approachple, involving users in decision-making). to capacity strengthening of local govern-

10. These municipios illustrate that ments that implies the involvement of a varn-capacity can be enhanced through skillful ety of actors-public and civic, central, re-innovations even under difficult circum- gional and local-and tools that go beyondstances, given the right political incentives traditional technical assistance programs.and if the community and its leadership 14. Our proposal is based on three basicare determined. It also suggests that assis- premises arising from the study:tance from governmental and non- * Sustainable development of capacity atgovernmental organizations can play a role the local level is possible only when thereif it responds to and is guided by local de- is effective demand by local administra-mands. tions and communities. The interven-

I. However, even the most motivated tions needed to increase demand formnunicipios face obstacles in the process of capacity development must go beyonddeveloping their capacity. For example, small technical assistance and work, indi-

rectly, by promoting innovative and

viii


responsible leadership and civic in- 16. The role of the center would be muchvolvement. This would have the double more sharply focused on developing ways toeffect of increasing demand for capacity leverage incentives already being felt in civildevelopment and increasing capacity it- society. National authorities wvould thus be-self in the form of better mayors and come enablers of possibilities, rather thancouncil members and local participants. direct builders of municipal institutionalThis view is in consonance with the ap- strength. Departments should become part-proach proposed by the Govemment of ners and enablers of the efforts conducted atColombia in its new development plan, the local level. Cooperative forms of asso-El Salto Social, that calls for public ciations between municipalities could becomepolicies and actions conducive to more a central part of this approach. The Fed-participation and supportive of the de- eracion Colombiana de Municipios couldvelopment of participatory organizations. play a very important role, but it needs to

* Technical assistance should follow lo- regain its legitimacy among members andcal demand, be tailored to local needs, build up its own capacity.and be provided in a decentralized 17. This approach to capacity develop-manner. The challenge Is to create the ment is sketched out as a concept, not aenvironment conducive to the emergence blueprint. Further detail, delivery iccha-and consolidation of a svstem in which nisms. and program components stiill need tomultiple agents (public and private) arepositioned to offer support to local gov- ideaslasea.inputfor discs concepts and

enimets. nchvrk o thos insitu- ideas as an input for discussion and consid-eration of all the relevant parties to this en-

tions-organized at the regional and na-tional level-would provide a forum forthe exchange of ideas and experiences.

• The diffusion of institutional change The reportthroughout the countrv will depend on 18. Chapter one presents the evidence,the speed and extent to whlich informa- collected through case studies of sixteention-on best practices and available municiplos, on local government effective-solutions for local governments-flows ness-and problems-in the provision ofbetween municipios. Such dissemination water, education and roads. Chapter two cx-can be considered a public good that is plores the links between leadership and par-currently being under-supplied. This jus- ticipation, on the one hand, and the develop-tifies an active role by one or more na- ment of local capacity on the other. In doingtional institutions although not exclu- so it reflects the lessons derived from the ex-sively by the central govemment. perience of the sixteen municipios. Chapter

15. In this approach, the many civil so- thrce reviews the most significant initiativesundertaken bv municipios in order to en-

cietv actors-pubhlc and private, national,iet;onal actors-publicandb pathe, nagntion hance their capabilities, as they were identi-regional and local-become the agents of fe hog h aesuis ndigs,ichange. The heart of the strategy proposed fied through the case studies. In doing so, ithere is to enhance the incentives for local considers some notable innovatIons that are

being introduced at the local level as well asgovernments to find and adapt innovations g they need, to improve the information offi- the obstacles facing local govenents in

c*als and voters alike need to make informed their capacity strengthening efforts. Chapterciasi and voter. taxpayersnatrte four describes a strategy of local institutionaldecisions, anid to let voter taxpavers at the

polls, as well as through other modes of par- development.ticipation, voice their approval or disap-proval for local pcrfomiance.

ix

Colombia: Local Government Capacity Stuldy

Chapter 1

Local government effectiveness: Evidence from the front-line

1.1 For almost a decade now, Colombia sponsibilities. The cases reviewed are nothas embarked in a process of state decen- necessarily representative of current events intralization under which municipios were in- the rest of the country. Nevertheless, the ex-vested with new resources and responsibili- perience of these mu nicipios offers manvties for the provision of such fundamental lessons to others facing similar challengesservices as education, health, water and and constraints on how to build capacity.roads. Their performance will thus be in-creasingly important for growth, poverty al-leviation and long term development pros- 1.4 In the second half of the 1980s Co-pects. The evidence collected for this report lombia initiated a process of decentralizationindicates that, to different degrees, these local and political reform that reversed a longgovernments have met the challenge of added tradition of centralism. Through the passageresponsibilities and increased resources in a of several new laws, presidential decrees andrelatively effective manner. The perception of a new constitution, Colombia has dramati-generalized collapse in services following cally changed the framework within which itsdevolution to local governments can be re- local governments operate.2 Essentially, mu-jected, at least for the municipios reviewed nicipbos have now more resources, respon-for this study. Serious problems were ob- sibilities and decision-making autonomy thanserved in only a few places or in specific under the old centralized regime.sectors. 1.5 Resources. Since the beginning of

1.2 Most of the local governments re- decentralization, municipal governments ex-viewed in the study have been able to face perienced a sharp increase in resources-the challenges posed by decentralization from 2.6 percent of GDP in 1980 to 5.5 per-making use of existing, but under-utilized, cent in 1994.' Under the new frameworkcapabilities and through conscious efforts to (established by Law 12 of 1986 and Law 60upgrade them. In our view, responsible and of 1993) transfers from the central level, as ainnovative local leadership has been the share of GDP, increased by a factor of three.driving force behind the process of capacity Laws 14 of 1983 and 44 of 1990, and thebuilding required for the effective provision 1991 Constitution made possible an increaseof services. Intense community participation in local revenues (tax and non-tax) from ap-and growing civic involvement have ex- proximately 2 percent of GDP in 1980 to 3.5panded the range of possibilities open to percent in 1994. Municipios have access tomunicipios and provided the basis to sustain additional resources from the national levellocal government capacity over time. through the system of cofinancing funds that

have also been reformed and expanded over1.3 This chapter presents the evidence, hcollected through case studies of sixteen this period.4 They also have access to credit,colete thog caesuiso .ite mostly through the banking sector and inmunicipios,l on local government effective- m tness-and problems-in the provision of some cases through the emission of bonds.'

water, education and road services. It serves 1.6 Responsibilities. Under the newas a background to the core of the report: the system, municipios assume key responsibili-analysis, in chapters 2 and 3, of the process ties for the provision of services and the exe-by which these municipios developed the cution of public expenditure programs. Mu-capabilities required to perform the new re- nicipios:

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Colombia: Local Government Capacita Stuldy

* Administer pre-sclhool. primary and sec- decentralization of resources and responsi-ondary education, and are responsible for bilities without the political reforms wouldinfrastructure projects in the sector. have been incomplete and, probably, not

* Provide medical services through local conducive to socially effective results.hospitals and health clinics, and are re-* ~~~~~1.9 Tlle many legal and mistitutional re-sponsible for infrastructure projects in forms promulgated over the last decade werethe sector. meant to speed the transformation of depart-

* Provide basic water and sanitation, en- ments and municipalities toward more effec-ergy and telephone services (directly or tive govemments. However, the new ar-through private sector), and are respon- rangements arc not yet fully operative. Dif-sible for constructon and expansion of ferent levels of government still need time towater and sewerage networks. understand and adapt to the new modus op-

. Promote and support low income hous- erandi. In certain cases the speed and extenting programs. to which the legal and regulatory framework

* Are responsible for urban and sub-urban changed creates a lack of clarity and limitsroads, and for agricultural extension the abilitv of local governments to respondservices and the promotion of rural de- appropriately. The consolidation of an envi-velopment. ronment propitious to the development of

* Acquire responsibilities in the areas of effective local governments will require con-environmental protection, culture, sports scious efforts to clarify the role and respon-and recreation. sibilities of each level of government. Addi-

1.7 Political reforms. The political envi- tional time and better communication chan-ronment within which local governuments op- nels are needed to build trust between thecratc also experienced significant changes. different actors in the decentralization proc-Starting in 1988. mayors have been popu- ess.larly elected.6 Changes in the electoral sys-tem for local officials and members of Con- Local government effectivenesslogress (such as the introduction of the Tar- 1.10 The evidence collected shows that ajeton') have made the process more transpar- majority of thie reviewed municipios areent and fair. Citizen participation was also making progress-often significant-inenhanccd, both through legal means (Law 11 terms of providing essential services to theirof 1986 and Law 132 of 1994) and through population. In some cases, empowered localthe practice of several national programs, governments were able to solve some previ-most notably the Plan Nacional de Rehabili- ously untreatable problems facing theirtacion (PNR). Clientelistic practices were communities (see Box 1.1).weakened, among other means, by the elimi-nation of the au.xilios regionales.8 Govern- 1.11 Not all municipios in out sample,ment accountabilitv was enhanced, for ex- however, are examples of successful decen-ample, through the introduction of the so- tralization. Some are experiencing seriouscalled voto prougramactico (programmatic problems in one or more sectors. Neverthe-vote) .9 less, even in those cases, poor performance

appears to be grounded in a history of past1.8 It is the combination of the added inadequacies and not the result of a collapseresponsibilities, more resources and political following the transfer of responsibilities.reforms that created the environment condu-cive to the emergence of effective local gov- 1.12 Coverage and quality. The firsternments. The experience of the municipios pattern emerging from the review is that thereviewed for the study leads us to believe that increase in resources managed by local gov-

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0ox L':f :And the water came with ers have made significant progress in thatde8cntraliAtiond Aen acueruto for San direction over the last year. Two others havedecentraliaiomen: A' 'cuedueto for San delegated service responsibility to the de-

: When the first elected mayor took office in partmental enterprise and one to a neighbor-W98e only 350 foinihles were connected to the ing municipality.'2 The rest are managing thesystemn. Water ran only 3 dayls a week and for service through the municipal administration.only 6 to 8 hours. The acueduclo project was In a majority of cases, water systems in rurall launched ir 1984, but by 1988 only 5.5 out of areas are constructed with financial andthe 32 km. had been :built as the design kept technical help from the local government butchanging due to the lukewarm coopeTation by managed by the communitv without munici-participant municipaios and problems with pal assistance.contractors.

1.14 Increase in coverage was docu-The presence ,of elected mayors with a 134Ices ncocacNa ouThe preence ofelectedma3'orswith amented in twelve cases.' For example. be-stronger commitment to their electorate, to-gether with an enhanced. administrative ca- tween 1985 and 1994 Ipiales icreased coy-pacity and broader financing alternatives, crage from 63 percent to 96 percent andmade possible the completion of the ocue- Puerto Tejada from 71 percent to 89 percenit.-du6c',:ending: almost one hundred years of San Juan Nepomuceno was able to completewvater shortages. The first elected administra- a project that brought water to 75 percent oftion was able to assume-the responsibility of the households in urban areas (see Box 1.1).the project by securing,.through an agreement Serious problems of qualitv and continuitv ofwvith,,the ,departm,ental authorities -and the the service were identified in only six of therelated. national entity, the financial resourcesand adminlistration of-the.project. Bs mid- sixteen cases. Many municipios have madea990 dnnitration. of:the project. By miid-

th90 ilie water was' finally arriving to San important efforts to improve water treatment.Juan. The second administration, aided by. a as well as to protect water sources. Some,strong community involvement, initiated however, are not able to afford the cost ofmajor works to expand the system: By 1992, technically adequate solutions and have opted85V urban dwellings were connected -to the for partial ones.system. The third administration made prog-

ress in imroving. mnagement f the mu-1.15 Education. The changmng legalr-nicipal'omprving mhangemen of the mi framewvork and the sharing of responsibilities.nicipal company ini charge of the service.Today, San Juan:Nepomuceno has 75 percent with departments has complicated the proc-coverage in the urban area. All of the 261 ess of municipal engagement in education.rural dweings in,three corregm lientos are For example, teachers are hired by mu-connected to the- systern.- Water service is nicipios and departments, that not alwaysavailable every day for up to 19 hours and the coordinate their actions. Nevertheless, ten ofwater, quality meets the national' standards. the reviewed municipios have a significantSan Juan is a leading-contender for the dc- role in managing the sector. Some of thempartmnents annual prize for the best munici- are defacto running their education systems,pal water sysiem. showing initiatives not only on school con-

struction and maintenance but in other areasernments is starting to be reflected in more such as teacher training, curriculum, plan-service coverage. Overall, these local gov- ning and administrative reforms.ernments took over the new responsibilities 1.16 Progress in this sector is more diffi-

avoiding service collapse. cult to gauge given the large disparitv in cov-

1.13 Water." Eight of the sixteen mu- erage indicators even among such a smallnicipios have established municipal enter- number of municipios. Some have achievedprises in charge of the water sector. Of those, verv high coverage at the primary and secon-four are financially sustainable and two oth- darv level and the main challenge they face is

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C.olombia: Local Government Capacity Study

to upgrade the quality of education. Mani- For example, since 1985 coverage of waterzales, for example, has 97 percent coverage services in rural areas increased from 20 toin primarv (up from 83 percent in 1985) and 70 percent in Ipiales, and from 43 to 74 per-86 percent in secondary. Others, still have cent in Zapatoca.some important gaps in coverage,'4 or show 1.20 Similarlv, a lot of progress wassigns of insufficient effective demand for m im ntheir stock of schools and available teach- rads Ntabex eamples a revalledupal

Brs l5 roads. Notable examples are Valledupar.ers. Cucunuba (where all veredas were linked),

1.17 Roads. Road construction and Pensilvania (where 80 km. of new roads werenmaintenance is an area in which muinicipios built) and San Juan Nepomuceno (where 200have been very active since the beginning of km. of new rural roads were built during thisthe decentralization process. The evidence period). The evidence in the education sectorcollected shows an expansion in intra- is less compelling.'7

municipal road networks. some important 1 W. . . ~~~~~~~1.21 Within urban areas, we found re-

projects linking smaller munhcipios to bigger peated examples of local governments thatones, and consistent efforts to upgrade the make particular efforts to address the prob-quality of roads through paving and other lems of the poor. Municipios as diverse asmeans.Iesothpor ucpoasdvr sManizales, Pensilvania and Cucunuba are in1.18 The case studies identified notable the process of introducing the SISBEN, aemphasis on road maintenance in ten of the methodology used to target social programssixteen municipios. In Manizales, for exam- to the poor. In spite of the large migration tople, the percentage of roads in good condition its urban area, Valledupar has been able toincreased from 30 percent in 1991 to 60 per- avoid the development of shantytownscent in 1993. In Valledupar the creation of a through its many innovative programs in thecooperative enterprise for rural road mainte- three sectors. Municipios like Pensilvania,nance made possible an increase in coverage Versalles, Piedecuesta and Zapatoca havefrom 40 km. in the previous four years to introduced several initiatives in the social170 km. in its first year of existence. In sector with particular emphasis on the poor.'Libano the municipio was able to substitute 1.22 Sectoral balance. Overall, there ap-the Federation of Coffee Growers (which pears to be a balance in the sectoral emphasisused to take responsibility for road mainte- of local government programs. We did notnance) when the sector experienced a deep find indications that a particular sector isfinancial crisis, and maintain the excellent. . . ~~~~~~~~~consistcntly being favored or neglected. Ancondition of its roads. exploratory analysis evaluating performance

1.19 Distribution. A second pattem in the sixteen cases did not show large differ-emerging from the case studies is that. per- ences in scores between the three sectors.'9

haps surprisingly, attention to rural areas The evidence does not support the view thatincreased over this period. Overall, if there all municipios, and under all circumstances,was a bias it appears to have been in favor prefer, for example, roads over education.and not against rural areas. The data indicate 1.23 The emhssgiven to water, educa-that a significant part of the increased service t.io and roads, hwver, vatri betweetion and roads, however, varies betweencoverage took place In rural areas. The ex-... -coverage took place in rural areas. The cx- municipios. In more than half the cases therepansion of rural water systems In municipios is evidence of important sectoral differenceslike Pensilvania, Zapatoca, Belalcazar, Ipia- 20 I

) X ' ~~~~~~In performnance. It Is not unusual to findles, Piedecuesta or Valledupar was one of local govemments concentrating their atten-their most notable achievements and reduced

16 tion on one or two sectors at the expense ofsignificantly service gaps with urban areas.

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the rest, with a tendency for education to bethe odd setor21 Box 1.2: What do citizens thinls?the "odd" sector.2

In Afnizales, 74 percent of the people inter-1.24 The observed sectoral emphasis does viewed believe services improved. since thenot seem to follow a random pattern. Al- popular election of nayors. 30 percent of thethough the evidence does not allow a rigor- individuals indicated that an important sectotous assessment, it appears that, relative to had not received sufficient attention (streetlarger municipios, the smaller ones tend to safety for 62 percent of those), and onIv 8emphasize water and to a lesser extent percent thought an unimportant sector 'wasroads22. This is possibly the reflection of lo- emphasized.cal priorities as, at the beginning of the de- In 1/lkedupar, 78 percent of those polledcentralization period, most of them experi- thought performance improved since theenced serious gaps in those sectors.23 Opinion popular election of mayors. Only 10 percentsurveys conducted for this studv tend to sup- believe the wrong sectors are emphasized andsurves coductd fo thi stuy ted tosup-91 percent trust the municipal administrationport the view that, in general, the sectoral more than the ntnal gem lmost' . ~~~~~~more than the national government. Almostallocation of resources is consistent with 70 percent indicated the local administrationcommunity preferences. At least in one makes efforts to do projects at the lowest cost,case, insufficient capacity forced the local and 80. percent are willing to contribute withadministration to concentrate its energies on labor, materials or cash to public programs.one sector identified as priority.25 In Pensilvania, local administtations have

1.25 The observed pattern may also he made a consistent effort since 1988 to consultcitizens on priorities for government. actions.partiallv influenced by the legal and adminis-cizesopnrts-r vrnet atn.partially influenced by the legal and adminis- This effort is reflected in high satisfactiontratlve framework. Law 12 of 1986 and De- levels. As one participant in a communitycree 77 of 1987, which led to the liquidation workshop said "the popular election of mav-of INSFOPAL, to a certain extent forced ors was a blessing.from God"- All.of thosemunicipios to concentrate attention on the attending the workshop believe the allocationwater sector. Law 60-which imposes a of: government expenditures among socialmandate for municipios to allocate at least groups is fair. 84 percent indicated that the75 percent of transferred resources on in- alldcation of expenditures between rural andvestments in education, health and water-is urban areas responds to needs and not to po-

litical factors.also likely to be influencing the sectoral em-phasis of local programs. The extent to Surveys indicate that citizen satisfaction iswhich these rules may be forcing municipios lower in Zipoquird than in other municipios.into a sub-optimal pattern of allocation is an Only 31 percent of the individuals perceivedan imprvevment in municipal performanceextremely important question that deserves to since the election of mayors and 20 percentbe analyzed in more detail in future work. believe it has worsened. One third of those

1.26 Citizen satisfaction. A key element surveyed indicated that performance in thein our assessment of local government effec- road sector is now worse than six years ago.tiveness is associated with the views ex-pressed bv citizens. We collected evidence the municipios the surveys and workshopsthrough opinion surveys in the four largest identified high satisfaction levels consistentlymunicipios and through workshops with the across the three sectors (see Box 1.2 forcommunitv in all sixteen cases. Overall, the some examples). On the other hand, onlycommunity recognizes that progress has oc- three cases showed signs of low satisfactioncurred. For example, approximately three out in two or more sectors and, in general, withof four individuals in Manizales and Valle- local government performance.dupar think services improved since mayors 1.27 Opinion surveys show that a major-started being elected by the people. In five of ity of individuals see municipal governments

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playing a central role in the provision of the butions in labor, materials or cash, and forthree services.26 An overwhelming majority which there is community supervision, resultof those surveyed report they trust more the in substantial savings with respect to similarlocal than the national government: more projects executed directly by municipal em-than 90 percent in Valledupar and Mani- plovees. For example, the cost per kilometerzales, almost 75 percent in Ipiales, and al- of a street paving program with communitymost 60 percent in Zipaquira. A larger num- involvement in Valledupar was one third ofber of individuals prefer the m2unicipio, not a the cost of an alternative program.2S Evi-higher level of government, to be in charge of dence from Cucunuba and Versalles indi-service provision. The only sector in which cates that community involvement in con-there seems to be support for the involvement struction projects in water and roads reducedof departments and the national government costs to the municipality by 50 percent. Ipia-is in education. In roads and water, citizens les was able to conduct a major overhaul ofsee the privatc sector plaving a more impor- its water system with half the budget as-taut rolc than departments and the center. signed by FINDETER for that purpose.29 In

1 .28 Cost effectiveness. The case studies a few cases, it was possible to find evidencealso provided some limited evidence on cost- indicating that municzpios were able to makeeffectiveniess. The first thing to notice is the substantial savings with respect to similarfact that the field work did not identifv noto- projects done by the department.rious examples of 'white elephant' type of 1.30 It is hard, based on this evidence, toprojects, even among those municipios more make conclusive judgments on just how cost-attached to old-fashioned clientelistic prac- effective local governments are in the threetices. In very few occasions did the opinion sectors."' Nevertheless, we did not find evi-survevs or xvorkshops with the community dence that would lead us to believe there is ashow a gcneralized perception of grossly in- trade-off between 'doing the right thing' andefficienit spending or official corruption:27 'doing it the right way'. In general, mu-

1 .29 A second consistent finding is that nicipios that are effective in increasing cov-those construction projects-in road princi- erage for all their citizens and maintaining a

balance between sectors have also shown anpally. but in some cases also in water andeducation--that involve community contri aptitude and an inclination to contain costs.32

Bo S Local rsource In obilizat io.nmut con

Between 1989 and 1994 M7alledupar:tripled tax:revenues andAquadrupled its: budget in realIterms througha strategy of accountability and transparency .with thle omrmunity. Collection of valorizationtaxes in-creased notably as taxpayers saw how their taxes were spent. In spite: of eing a election year, the government introduced the gasoline surcharge i 1994: to finance much needed road projects.0 Acomittee.integrated by representatives of interested parties discussed options and bui lt consensusfor the surcharge E

To regain people's trust on government's ability to deliver, the new administrationthat took office inAIanizales in 1992 promised to complete :in f ive months the Avenidadel Rio project that was stalledfor.several years. Successful and timely completion of the project brought higher confidence andset:the.:foundations for a stronger partnership wvith: the :community. Doubling its fiscal base.and reducing taxevasion Manizales. was able to increase Its budget substantially over this period. . . . ..... .. .. ....TlNhe urbanS area of Piedecuesta expanded from: 300. to 2,300 blocksover the last decad. The admlnistra-tion faced the challenge& of increased demand. for services in: a creative manner. Through negotiations,developers took responsibilltvyfor basic urban: infastructure, reducing: demands on the fiscallyMstrained.municipio. Improvements vere reflected1in higher market prices. Piedecuesta increased property tax col-lcction by a factor of five since 1989. A `land usc tax"J ( one time charge for new developments) wasimposed to finance social inftrastructure (health and education) in those neighborhoods.

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1.31 Resource mobilization. The evi- 1.33 Nevertheless, the evidence indicatesdence indicates there are large differences in that fiscal effort indeed varies. Some of thelocal resource mobilization among mu- municipios have made significant efforts innicipios. Tax revenues per capita among the mobilizing local resources-for example,sixteen municipios vary from a high of more increasing collection on property taxes, im-than Col$19,000 in Manizales to only posing a gasoline surcharge and bettermentCol$500 (less than one US dollar) in Puerto levies-linked to the expansion in serviceNarifio (see Table 1.1). Even among mut- coverage and quality. In nine of the sixteennicipios of similar size, significant differ- cases, tax revenues in real terms increasedences are observed.33 well above population growth in thc period

analyzed. In general, thecse were the larger1.32 In part these differences naturally anaz. in the se wee The largerreflect variance in fiscal capaclty, as in thecase of Manizales and Puerto Narifio. Also, 1.34 National transfers represent betweentax revenues are probably an incomplete 80 and 90 percent of current revenues in themeasure of local resource mobilization in smaller municipios in the sample. and ap-

34small municipios where contributions in-kind proximately 60 percent in the larger ones.(mostly through comnmunity labor but also This ratio is relatively lower in muinicipioswith materials) to construction and mainte- like Piedecuesta, Manizales, Valledupar, Ja-nance projects can be quite important, as mundi and La Mesa that have made impor-already suggested. Thus, tax revenues are tant revenue mobilization efforts during thislikely to overestimate the differences between period (see figures on growth in tax revenueslarge and urban municipios, on the one hand, in Table 1.1). Their experience (described inand small and rural ones on the other. Box 1.3) suggests that local governments

Table 1.1: Local resource mobilization

Municipio Transfers as a share of Tax revenue per Growth in realcurrent revenues capita tax revenues

(1993) (Pesos, 1993) (1989-1993)

Manizales 39.1% 19,167 49.2%Valledupar 51.5% 9,434 121.3%Ipiales 82.8% 4.780 62.4%Zipaquiri 67.0% 8.737 76.6%

Piedecuesta 60.8% 6,729 231.6%Jamundi 58.8% 14,231 66.2%Libano 71.1% 5.431 0.0%Puerto Tejada 79.0% 4,297 69.2%Pensilvania 90.7% 4,052 60.2%

San Juan Nepomuceno 88.6% 1,304 -26.7%La Mesa 45.4% 7,412 188.3%Versalles 87.9% 2,702 0 3%Belalcazar 65.2% 5,383 -6.4%Zapatoca 85.1% 2.835 12.7%CucunuWb 77.8% 1,452 -62.9%Puerto Narifno 98.1% 517 -12.0%

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which are perceived to be effective by theircommunities are in a stronger position to 3 Sanchez and Gutierrez (1994) and Diaz andmobilize fiscal resources locally. Sanchez (1994).

The key questions ~4 For a discussion of the system of cofinanc-ing funds see World Bank (1994).

1.35 Overall, the evidence presents a 5 See Fainboim and others (1994).positive record of municipal perforrnance. 6 The 1991 Constitution introduced the elec-The small number of cases reviewed is obvi-ously insufficient to speculate on national tion of Governors.trends. Nevertheless, the experience of these 7 Under this system, voters receive their baI-municipios suggests that municipal govern- lots at the election cite, thus reducing op-ments can be more reliable service providers portunities for vote manipulation. Ballotsthan it is sometimes assumed. include photographs of candidates.

8 A significant quota of the public budget1.36 Any analysis of local government allocated to members of congress and otherperformance must necessarily lead to a dis- regional officials for their own discretionarycussion of existing capabilities at the local use within broadly defined criteria.level and the conditions for their develop- 9 All mayoral and gubernatorial candidatesment. It is only natural to ponder whether All preseal a governatoram telocal governments are up to their new jobs must present a government program to beand how they acquire new capabilities. After later used to assess their performance.all, under a centralized regime, local gov- 10 Annex 3 presents the conceptual frameworkermrnents do not generally exercise the ca- on which the case studies were based.pacity they might have, nor face the incen- See Annex 4 for additional evidence ontives to develop it further. municipal performance in the water sector.

1.37 These concerns can be summarized 12 The water systems in Belalcazar and Ja-in two key questions. First, what are the main mundi are managed, respectively, by EM-forces driving the process of capacity devel- POCALDAS and ACUAVALLE. Piede-opment at the local level? Are they, princi- cuesta delegated responsibility of its waterpally, local in nature or, on the contrary, system to Bucaramanga's water company.mostly external to the municipio? Second, 13 Among the other four cases, Manizales,will motivated local governments have the Zipaquira and La Mesa already had close tomeans and the ingenuity to upgrade the re- 100 percent coverage in urban areas inquired capabilities? The experience of the 1985. Valledupar did not show an increasesixteen municipios reviewed provides anin coverage rates (above 90 percent in urban

areas) but was able to maintain them inswers to both questions. Chapter two ad- spite of high population growth.dresses the first of these questions. The sec- This is not necessarily the result of insufli-ond one is the subject of chapter three, which cis effot n the rest or ex-considers the different ways in which mu- cient effor in the past. Piedecuesta, for ex-consh u e I I ample, is experiencing migration of such

magnitude that it is having a difficult timethe problems they faced in doing so. reducing the coverage gap although enroll-

ments increase at 8 percent annually.

Annex I includes a list of the municipios 15 This appears to be the case in Puerto Tejadacovered and the selection criteria used. and Belalcazar that show very low retention

levels. See Villa (1995c) and PalenciaAnnex 2 includes a brief description of the (1995a) respectively.most important components of the new 16framework of decentralized governance. Pensilvania built 15 acueductos in rural

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areas that now have 75 percent coverage. indicated that in their opinion a particularBelalcazar built six new rural acueductos, sector was receiving too much attention.and rural areas have now 90 percent cover- The same percentage was higher in Ipialesage of water. Valledupar constructed acue- (19.5 percent) and Zipaquira (31 percent).ductos in 12 out of its 17 corregimientos. In 25 This appears to be the case of Piedecuesta.Piedecuesta coverage of water systems inrural areas increased from 23 percent in1990 to 48 percent in 1994. 26 See Annex 6 for details.

17 This is, in part, due to lack of information. 27 However, opinion surveys among the fourIt has been difficult to obtain data that dis- largest municipios show that only in Valle-criminates between urban and rural areas dupar there is a generalized perception thatfor the education sector. Nevertheless, sev- the municipal government makes efforts toeral municipios showed an emphasis in ex- do projects at the least possible cost.panding school infrastructure in rural areas, 28 See Cardenas (1994c). This program is dis-particularly at the secondary level. For ex- cussed in some more detail in Chapter 2.ample, Valledupar built three new ba-chilleratos agricolas, and Ipiales and 29 See Villa (1995a).Piedecuesta one new secondary school in 30For example, in La Mesa, municipal roadrural areas each since 1988. projects cost only 70 percent of those done

18 Pensilvania, for example, introduced 52 by the Department.Hogares Comunitarios de Bienestar, a very 31 Financial indicators for the water sector (seeinteresting social program. Piedecuesta in- Annex 4) show a less than satisfactory pic-troduced the Unidades Basicas de Servicio ture. 4) few ess municiplc-ture. With few exceptions municipal com-which provide health, social and community panies experience large operative deficits,services in low income neighborhoods. probably as a result of low tariffs. For those

19 See Annex 5. The dispersion in perform- cases in which information is available, un-ance between municipios is similar for edu- accounted for water is acceptable comparedcation and water and slightly higher for to Colombian standards. Collection ratesroads. See Acevedo and Fiszbein (1995). are good or acceptable in six cases and low

20 in the rest. Important efforts were identifiedrecently in this area: San Juan Nepomuceno

21 In three of the sixteen municipios (La Mesa, increased collection rates from 20% to 70%Piedecuesta and Zipaquira) the education and Valledupar from 50% to 94%.sector receives preferential attention and, 32 This can be seen in Annex 5, which idi-correspondingly, the one showing the best cates a high correlation between scores forresults. On the other hand, in two mu- allocative and production efficiency.nicipios (Belalcazar and Libano) its shows adan inferior record to the other two sectors. 3 For example, tax revenues vary by a factor

22 of two between Zipaquira and Ipiales, andin San Juan Nepomuceno tax revenues are

23 During the late 1970s and early 1980s, one third of those in Pensilvania.many small and medium size municipios, 34 Current revenues in Table 1.1 exclude thoseexperienced popular protests (paros civicos) of municipal enterprises. Thus, dependencydue to poor services. These protests consti- from national transfers in municipios thattute an important precedent to the decision have such enterprises tends to be overesti-to decentralize resources and responsibili- mated relative to the rest. For example, inties. Thus, many mayors were elected with a 1994 transfers represented 27.8 percent ofmandate to address those gaps. current revenues in Manizales. If one were

24 Only 8 and 10 percent of those surveyed in to include municipal enterprises, transfersManizales and Valledupar, respectively, would represent only 13.3 percent.

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Chapter 2

Leadership and participation: The emergence of local capacity

2.1 In our view, the emergence of local murnicpio played an assisting role but, incapacity is closely associated with the new most cases, following local initiatives.environment under which municipios oper- 2.4 The links between leadership andate. Recent revivals of the political and gov- p.a rTi on btheoe hand i andthdeemance aspects of Colombian institutions- parpntdof o a n the other,,idevel-

exemplified bv the popular election of may- opment of local capacitv on the other, consti-exemplified, by the p991Coptuletion od mhay- itute the theme of this chapter, which reflectsors, the 1991 Constitution and changes in the lessons derived from the experience of theelectoral rules-have created a new svstemof incentives and have heightened competi- sixteen municipios reviewed for this report.

tion for better performance in local govern- Local leadershipment.

2.2 A reduction in clientelism and more 2.5 The case studies found again andtransparent and fair electoral practices, have again that local leadership-most notably byconferred more legitimacv to the leadership mayors, but also by community leaders, pri-role of mayors in the public's eye and made vate sector individuals acting in the pubicthe position more attractive and competitive, interest, or political movements (see BoxAn important result has been a renovation in 2.4)-emerged as a key part of the explana-municipal leadership. A majority of the mav- tion of local capacity. Few if any munici-ors that were in office in the sixteen mu- palities showed much capacity withoutors hat cre n oficein te siteenmu- strong leadership. For most, leadership was anicipios at the time of our visits, could be gconsidered 'political outsiders', with back- sine qua non in the launching, and figuredgrounds in the private sector or coming to the importantly in the sustaining, of capacitypublic sector as professionals or through building.civic movements independent of traditional 2.6 The role played bv responsible andparties'. With decentralization municipal innovative leaders in strengthening the ca-political lifc has become clearly more local in pacity of local governments is complex. Innature2 increasing demands on new leaders to the first place, a mayor (or the head of arespond to their communities. municipal department) is in a unique position

2.3 The experience of the cases reviewed to motivate the local administration to im-for this study indicates that competition for prove its performance and, as a result, gen-political office has, in many cases, opened erate the demand for capacity enhancing ac-the doors to responsible and innovative local tivites. Second, as a manager he/she be-leadership, and this, in turn, became the comes a key element of municipal capacity.driving force behind capacitv building ef- This is particularly true in smaller mu-forts. More widespread community partici- nicipios where the mayor is often the onlypation and growing civic involvement have full-time professional working for the gov-expanded the range of possibilities open to eminent. Thus, when reviewing the evidence,municipios and provided the basis to sustain one needs to consider the several ways inlocal government capacity over time. Leader- which mayors (or other leaders) contribute toship and participation have, thus, consoli- capacity building.dated corporate strength in local govern- 2.7 This leadership function has a dou-ments. Once the overall institutional frame- ble facet. First, reforming the municipal ad-work was in place, actors external to the ministration into more effective and cus-

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Box 2.1: Communty leadership in 2.9 Breaking the inertia. In an initialVersalles .- phase of the capacity building process, the

main challenge for the local government is toA 1989 decree by the nationa government.mk fetv s fteudruiie amandated that all municipios create a Com- make effectve use of the under-utlized ca-munity Participation Committee (CPC) for pabilities existing within the administration.- each health facility>, wvhich include represen- In many cases, it is possible to increase gov-tativessof communmity organizations, the.local emient performance without major new in-government and the municipal council. Under vestments, simply by making more effectivet:he leadership of the local hospital director. use of latent capacity. This phase, in allthe CPC of Versalles became the main source cases, was associated with strong leadershipof local. innovation and change, replacing-an by the mavor.ineffective municipal administration.. TheCPC morobilized the community and launched 2.10 The case studies show examples ofseveral effective and low-cost programs to how mayors with an entrepreneurial spiritaddress issues of malnutrition and family were able to unlock latent capacity in thewelfare. : . - local administration. For example, municipalThe relationship With the mayor has not al- staff in Valledupar reported the motivationalways been easy.. The 1.990-92 administration boost generated by a mavor that starts workprovided strong financial.support to the CPC at 6:30 a.m. every dav of the week.3 Simi-programs and promoted it at the departmental larly, the first elected mavor in Ipiales dis-.and national level as a Model of community covered, to his amusement, that while histparticipa.Tiov .This support. disappeared dur-parg: the. fpolowing administration, ars th office was practically non-existent, the mu-ing he flloing dmiistrtio, asthenicipality was renting out-at a notionalmayor was convinced the CPC diminished hispower. While morale among miinicipal work- price-a perfectly adequate building as aers was very low .due to.a lack.of leadershipy hotel. Simply by ending the lease and movingcrs a~ ery 6* tic o:Alack of leadership,the CPC provided the space for effectve- par- the municipal administration he was able toticipation by community members. Thus, improve working conditions and staff per-many of those individuals that have become formance. On the other hand, in thosc casesineffective 'working in the public sector are vhere the mayor himself is not sufficientlvactive and. motivated participants in CPC motivated, those latent resources remain un-programs. der-utilized.4

tomer-oriented institution involves a leader- 2. 1 Expanding horizons. The most oh-ship role internal to the organization. Second. vious way in ,hich a new mayor can expandachieving trust, mobilizing community re- the capacity of the local government is bysources and sustaining those reforms efforts providing essential skills not previouslyinvolve a leadership role external to the or- available. In small municipios the mayor isganization. Thus, as the experience of these very often the only fill-time professionalmunicipios illustrates, successful leadership working in the administration.5 As some ofinvolves both managerial and political skills. the cases in the study clearly illustrate, theIn many cases. the tension between the two effectiveness and capacity of local govern-facets was found to be very strong. ments in this group, is closely associated

with that of the mayor.62.8 The rest of this section describessome of the key aspects in which successful 2.12 But, there is latent capacity outsideleadership was found to have a positive im- the public sector too. Expanding governmentpact on local capacity. These aspects de- capacity by drawing upon resources outsidescribe the diverse challenges faced by mavors the public sector is possible only when theand other local leaders. administration achieves trust and support

within the community. In almost every case,

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.... : : E f E :: :: :pletion of a long delayed project (see Box:Box 2.2: .VMlolenice, ::decentralization: :andB:x 2.2. Violnce dcnrzai a.EV d 1.3) benefiting all of the different aspects of:local: f E :0 capacity, 72: i:: y: f7 E : : C;its government program.-: 4Some regions of Colombia where the pres-ence of guerrilla groups cannot be disre- 2.13 Managing complex organizations.garded, violence limitts the capacity of local In larger and/or more advanced mun1icipiOs.governments. Decentralization, and. the i-n a key challenge is to adapt the municipal or-tiativei ofnew local leaders, allwed so.me ganization to more complex and diversecommunities to work -with authorities and: .T : : E :: E - vs: :E: s:. E tasks. This requ'res a clear defin't'on of re-rebel groups. milniiZihng the impact of vio .lencee on local capacity and performance.Forsponsibilities and the delegation of authoritF,Vexample::: . .. .... . among other steps. The mayor becomes a

manager and the leadership function is dis-In Zapatoca, the,:armed conflict reached itshEst : poinX with the assasination oE' thei tributed among several individuals. Thishighest ::int::WitIE~the :assass.inationi~. of thesecond elected mayor. The third election in proved to be a difficult step for some mu-01992 :gimplied dlachange- in: leaderstiip. Thei nicipios as it requires a change in leadershipnew mayor organized town meetings in the stvle (see chapter 3). In that sense, it couldruralEareas, and invited thecommunities.JOn be argued that leadership plays a key but:some occasions. armed groups participated different role at various stages of the capac-esta.blitshing agopendialogue on ther munici-: ity development process: launching it re-IpaL governmcntrprogram. Today,people and quires, mostly, drive and clarity of objec-gmerchandise circulat:e 0ifreely iylnrural areas,. tives; while consolidation and institutionali-

-aind; municipal 0iprogramsf are timple:mentedg zation require managerial skills. The casewithout major di ... .t . s studies provide some empirical support toln alldfup, .th.e .p.resence.ofarmed group.s this hypothesis. Further and more detailed

has been strong and permanent: in some: ruralE::: S.n- ::.. ... :.:::::::::.: :: analysis of this pattern could help under-areas, displacing the local and national gov-ernments. 0iThe00 popular election of Inspecto- j: standing the changing role played by mayors.res de Pohela (seek8ox023) changed that. 2.14 Managing conflict. This is an areaThe; strong; lk inspectores have to their in which leadership by the miayor can have acomxymunities:allowed to solve problems in a significant impact. In several munhcipios ca-miore .expediuious .way,~ sometimes: Withouthavingeto resuorit tolocalor nationesile thorit pacity building efforts have lost effectivenesstcs - .VN: ha E played an :: important role faci:ias they are rejected or, worse, battled by

tating acommunications between rurat com other powers in the local political scene. Themunities :andd: the7 local :government.l The. re-: best example is the poor relationship betweensuIt has beenrt a: reduction in :x;iolence levels mayors and municipal councils found in mostand an increaseAin the:capacity. of the local. cases. Few mayors have been able to developadministration to implement much needed a working relationship with the council, butdevelopient programs ifntAherural- areas of in many other cases conflicts and obstruc-ValSledupai r:. 'tionism have weakened local government

capacity. In the typical municipio councilthis was associated with new leadership members have very few operational respon-rnaking use of its recently acquired legiti- sibilities, which are concentrated on the ex-macy. It implies bringing new-well quali- ecutive branch. As a result, council membersfied--people to work in the local administra- tend to exercise power in a negative way bytion7 and drawing upon the community, as imposing clientelistic practices in hiringwell as the private sector. to perform some (cuota burocratica) on the administration.activities.8 In Manizales. for example, a new: : ~~~~~2.15 The ability to manage this type ofmunicipal administration was able to acquire conflict"' becomes a key role for the mayor.a high level of legitimacy through the com- The case studies show a variety of experi-

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Colombia. Local Government Capacity Stuidy

ences. In some cases, the conflict between themayor and the council practically impeded Box 2.3: Innovations in community partici

pation: The exprience of Yallcdupar.any progress in the process of capacltv de- o .velopment.11 In most places, however, a cer- Community participation has become a cen-

tam modus vi.endi developsterpiece of Valledupar' development. In theta.n mdsvvn deosumunicipal offices, staff wear identification

change continues but, probably, conditioned badges. which say: "We govern with yourand limited. Valledupar presents an interest- Participaton ". The local government hasing experience of integration between the two actively promoted community participation.branches of municipal government. The The Mayor established a Press and Informa-council was part of the effort to modernize tion Office that disseminates governmentthe municipio as council-members were in- progarms through, for example, a 30) minutevolved in the process of strategic situational daily radio program. The community is in-planning (presented in some detail in chapter volved in several areas. A few of the most3) that transformed municipal institutions. notable examples are:

Starting in 1992. the Mayor named Inspecto-

Community participation res de Policia in the 14 corregimientos basedon the results of popular. elections. This has

2.16 Participation by the community- been an unique event in Colo1mbia since theindividually or collectivcly, through fonnal law grants mayors the rights to designateand informal channels-voicing demands, them without any consultations. As a result,making choices. and being involved in proj- the profile of the Inspeclores has changed

from a political appointee responsive only toects proved to be as important in sustaining

capacitvas leadeship wa in launhing it the mayor, to one of a-community representa-.capacity as leadership was in launching it. tive acting as a liaison with the admiristra-The presence of an active community in- tion.creased demands for effective local govern- T PThe Pazvemnent b}y Sef(-.Uan4rgement p3rogramments, generating the incentives for capacity has the objective of improving access roads inbuilding. In other words, community partici- the bairrios. Interested- communities contrib-pation forced government accountability. At ute with mnaterials and labor. The municipal-the same time it broadened the resources on itv provides technical assistance and the nec-which the municipal administration could essary equipment, and is responsible for thedraw upon to improve its capacity. street lighting and trces. Panicipants get a

2. 17 The evidence from the case studies rebate on their property taxes.The.alcalditos program has the objective of

indicates, however, that the extent to which instilling civic conscience and nurture a par-conimunitv participation became part of the ticipatory spirit among young citizens. Eachprocess of capacity enhancement depended school goes through an electoral process tocritically on the inclinationi, and to a certain elect an alcaldito that represents the schoolextent boldness, of local administrations. for one year. Elected candidates must formu-Recent legal and political reforms have mul- late a government program. The Secretariattiplied options through Nvhich the participa- of Education oranizes periodical meetingstorv tendencies of Colombian societv can be with the mayor and the alcalditos to discussexpressed. The challenge for local govern- their programs and agree on ways the gov-ments has been to open their administration emnnent could supportthem.

and encourage communtinty participation. dupar (see Box 2.3), in others mostly in one

2.18 To different degrees, and through sector as in the case of education in Laalternative means. the municipios in our Mesa. or independently of the municipalsample have followed this path. In some administration as in Versalles. ' 2 Finallv,cases, this approach to public policy has some local governments have shown lack ofbeen followed across the board as in Valle-

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interest and/or mistrust toward the possibility costs of inefficient and inadequate publicof opening participatory spaces. decisions. As a result, it made local govern-

ments more interested in changing their ad-2.19 Although no simple correlation can mnsrtosadpronlt aetebe established between the strength of com- ministrations and personnel to make themmunity participation and governmnent per- nmore effective. In several cases, protests and

civic mobilizations led to local governmentformance, the experience of those municipiosthree sectors. 3Voice has alsothat have followed a more open and inclusive inc the three sectors.nt Voice ha alapproach to public polic indicates they have increased local governmnent capacity by fa-benefited in terns of enhancing their capac- cilitating the task of ranking priorities andity, positioning themselves to achieve better identifying problems of implementation. The

process by which the commnunity expressesoutcomes. To their experience we turn nowprcsbywchteonmiyexessour atcomesti. To their experience wetu nowits voice in larger municipios is, in some

ways, more complex than in the rest. It re-2.20 Voice. The consistent expression of quires outreach efforts on the part of theconimunity demands and preferences- administration. The electoral process alsovoice--is an important factor explaining the acquires a more central role in this area as itdevelopment of local governmnent capacity. mav replace more informal channels of ex-Voice has made local authorities more ac- pression. Valledupar offers good examplescountable to citizens increasing the political

Table 2.1: A sample of experiences with community voice

Survey I Consultation Empowerment

Local government actively seeks Local government involves Local government promotesinformation on community needs, community/citizens in decision stronger community groups byproblems and ways of addressing making through formal chan- delegating responsibilities andthem. nels. accepting community initiatives:. Bi-annial surveys of needs of * Committee for sectoral * Active Community Partici-

all houselholds in Pensilvania evaluation in La Mesa and pation Committees (CPC) in(see Box 2.4). Valledupar. the health sector in Ver-

• Annual consultation on edu- * Special purpose commis- salles, La Mesa, Ipiales andcation needs in La Mesa. sions in La Mesa (for tariffs) Zipaquira.

. Water company regularly and in Valledupar (for * Coinite Autogesti6n de Vivi-surveys customer views in gasoline surcharge). enda in Zipaquira.Manizales. . Secloral plans for education . Unidades Basicas de Servi-

• Mayor holds regular cabinet with community participa- cios and Ciudad Educadorameetings with neighborhoods tion in Zipaquira, lpiales, in Piedecuesta.groups to discuss needs and Manizales, Valledupar and * Empresa Comunitaria Laproblemiis in Ipiales. La Mesa. Uni6n involved in multiple

. Periodic follow up with com- . Conite IMunicipal de Re- projects with municipal rec-munity groups of status of habilitacion (PNR) deter- ognition in Piedecuesta.projects identified by citizens mines chronogram of road * Municipio pays for a privateas priorities in Piedecuesta. work in rural Valledupar, firm to organize and coordi-

San Juan Nepomuceno and nate community involve-Puerto Tejada. ment in rural water system

l Aniiual investment plan in in Jamundi.consultation with Jun tas de * Cooperativa vial-rural inAcci6n Comunal in Puerto Valledupar.Tejada and with Curacas inPuerto Nariiio.

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The first column shows examples of in-Box 2.4: The community influences stances in which local governnents have es-government programs: The experience of tablished channels through which the cor--Penrsllvania -

Pe.slivania. munity is able to express in a systematic wavAt the beginning of the first elected mayor'sterm a survey was conducted to see whether . .thie government's program addressed the key tools for the local administrations thatcommunity's priorities and needs. The sur- are using them. The second column showsvey identified serious differences between thethe multiple ways in which th communit isprogram and the community's expectations becoming involved in decision making at theleading the mayor to change his program. local level. Finally, the third column presentsDue to the success of the survey, the a few examples of programs run bv theMovimiento Ctivco (the civic movement in community that have either been promotedoffice> adopted it as a useful tool to help it or supported bv the local govemment. Indefine its political program for the upcoming addition to addressing concrete needs-suchelection. Since then, the aovimiento has sys- as health or education-these programs havetematically applied the survey and used it to. . ~~~~~~~~~become a verv powerful source of commu-reshape its political program,reshape vvits p4ed.olit ogram. nitv organization with an impact well beyondThe survev is carried-out on a hi-annual basis their field of operation.and is divided in two big sections. In the firstsection the community evaluates the current 2.22 In several municipios PNR playedadministration's performance with special an important positive role in fostering par-eniphasis on works done during the current ticipation particularlv in rural areas andperiod. The second section addresscs future among poor communities, organizing for-projccts. It asks the commnunity to list and merly disenfranchised groups and helpingrank works and program that the next ad-

msnistrtionshold undetake. .them voice demands and acquire a space ill.unistration s.ould unde-tae. .the local political debate. PNR's experience

For. mayoral elections, all the Iovitnienta is verv relevant as it is the only national pro-Civico pre-candidates elaborate their pro-grams based on the .Mfoviniento's program gram for which the case studies found a ger-(nurtured by the surveys), addressing similar eralized recognition among local communi-issues zwith different emphasis. The may ors ties of a positive role in fostering capacity.usuallv developed a strong managerial leader- 2.23 Involvement. Direct communityship but the political leadership remains involvement-in construction and mainte-within the movement. For the community the invol ent- a nd o ainte-survey represents a strong commitment of the nce pjs as welloa oering servAfovimiento to fulfill, to thle extent possible, Ices-- was a strong factor behid the successtheit demands. stories in these municipios. The practice of

communities contributing labor and materials

such as the regular use of radio programs to for public projects increased not only thecommunicate with the population and the available resources but also cost-introduction of the popular election of in- effectiveness and user satisfaction. Better-spectores de policia. ment levies and other types of cash contribu-

tions had a similar impact in larger mu-2.21 Table 2.1 presents somc of the most nicipios. More gencrallv, the practicc ofnotable examples of how community voice working with the community was itself ahas performed as a way to enhance local learning process through which municipalgovernment capacity. These experiences, staff acquired new skills and motivation.which rangce from the relatively informal tothe verv sophisticated. give a sense of the 2.24 The experience with involvement ispossibilities available to local administrations ample and, as in the case of voice, variesthat are open :o community participation. according to size. Some of the examples we

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Colombia.- Local Government Capacity Study

reviewed were based on practices that pre- hs:.. .:. .e .iig ..... ..: :...dated decentralization. For example, the cur- .. . . .. . .. . . .. . .. E!rent use of Mingas in Ipiales (see Box 2.5) is 1The mrngasconst:itue an.important part ofbased on ancient indigenous traditions. How- soci. omm it lfc in Ipials......... Theyever, even in those cases, strong commitment originated in the pre-conial period and aremost presnti inAthe southern part ofby the new administrations gave them new obi; here the Indian heritlife and mainstreamed them by making them endured. Citizensjoin with local authortiespart of the local government's programs. in carrying out a.specific task that will be of

2.25 In smaller municipios and in rural geeal benefit to aneighborhood .. or..th.mcomunity. These tasks often comprise theareas, the practice of comm-nunities sharing .....construction .. and :i . enan.ce . .of schools.

the cost of projects through labor or mater- roads, water.and.eletrification systems .als is almost a rule. However, some larger Usually the government provides themunicipios like Ipiales and Valledupar have C.technical spportf and construction ;materials,maintained the practices of community work and the community contributes labor force(see Boxes 2.3 and 2.5). This type of in- and:maferials.It. also provides food andivolvement is observcd more frequently in the b6everageto mnga participants. Participationroad and water sectors, although there are is so.:strongly embedded in thecommunityseveral examples of community involvement that it is t unusal to have 6 s.eval senio-in school construction.14 In larger municipios offi.cialsin a minga shoveling debris :andlabor contributions tend to be replaced by ...ou.ngceenticash contributions. La Mesa, Valledupar. Anin.novative f rm of minga hasS deeloped,Manizales. Jamundi and Piedecuesta use ..inwh..ich .neighbo.muniipios coordinate bettermeniz les ies Jamndiotermens f enfi their Aeffiorts for relatively big .projects. eyThis-pbetterment levies and other means of benefi- . has.. co.t.ibuted -to .strengthen clary contributions to constructIon and ties among members of the municipalmaintenance projects, that generate citizen associftio,l *was initiated by the. firstowsnership and responsibility. Service ad- popularly electedd:Mayorof Ipiales.ministration and operation by communities isfrequent onlv for rural water systems. namics of the political process. Mayors are

elected for three-year-periods and cannot beSustainable capacity development reelected for two consecutive terms. In some

2.26 The success stories in these mu- cases, local government capacity has suf-niiiwthe temergenceof fered as a result of changes in municipal

nicipios are associated with administrations. Important i'niti'atives may geta virtuous cvcle that could be critical for the distras. artassociated may getsustainability of the process of local capacitydevelopment. Responsible leadership and site political groups.community participation lead to an increase 2.28 The quality of local leaders, as wellin demands for better governments and, con- as the speed of reform, will naturally varysequently, for capacity enhancement. More over time. People and styles change. The keycapable governments tend to attract more to sustainability, as illustrated in severalqualified and better motivated leaders and municipios, resides in the degree to whichstaff. Similarly, stronger and more open ad- local authorities involve citizens and openministrations are likely to promote and ad- their administrations to the community. Invance interaction with citizens. Furthermore, the words of the Mayor of Valledupar:the evidence suggests that leadership and 'community ownership of programs andparticipatiot; tend to reinforce each other. ideas is one of the few, and most important,

2.27 The sLIstainability of reforms at the conditions for continuity of the process of2.27 The sustainabilit~~' local capacity development'.local level is sometimes affected by the dv-

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Colombia: Local Government Capacitv Stuidy

In the 1988 and 1990 municipal elections 12 See Villa (1995d) for a more complete dis-the two major political parties obtained ap- cussion of the experience of the CPC inproximately 80 and 90 percent of the vote Versalles.respectivelv, and controlled almost 90 per- This was, for example, the case in La Mesa,cent of all municipios (see Gaitan and Zipaquirs, and Puerto Tejada.Moreno (1992)). In the 1992 elections,traditional parties obtained only 65 percent 14 For example in Cucunuba and in ruralof the vote with candidates from non- Valledupar.traditional parties gaining control of ap-proximately 300 of the 1,000 municipali-ties.

2 A majority of individuals surveyed in Mani-zales. Valledupar, Ipiales and Zipaquiraindicated that their choices for mayors donot follow party lines and are not necessar-ily consistent, in party terms, with theirchoices at the national level. Only a minor-ity (between one fourth and one third ofthose surveyed) believes that one shouldvotc for mayors and president from thesame party.

3 See CArdenas (1994c).

' Sec Box 2.1 and Villa (1995d) for the caseof Versalles.

5 We estimate that municipios with popula-tion of less than 10,000 have, on average,two professionals in the municipal admini-stration. See Annex 8.

6 See, for example, the contrasting views ofVersalles and Zapatoca (municipios ofsimilar size) in Villa (1995d) and CArdenas(1994d).

'The Mayor of Jamundi, for example, in-volved several new professionals in theadministration, through his personal con-tacts in the private sector.

8 Jamnundi and Piedecuesta present interestingcascs in which the mayor was able to in-volve developers in local issues throughcomplex negotiations. See Villa (1995b)and Cardenas (1994a) respectively.

9 See Palencia (1995b) for details.

10 Conflicts between levels of government arediscussed in more detail in Chapter 3.

According to Cardenas (1994b) this was thecase with the 1990-92 municipal admini-stration in San Juan Nepomuceno.

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Colombia. Local Government Capacity'Study

Chapter 3

Capacity building: Local initiatives, innovations and tribulations

3.1 Capacity enhancement requires localBoxiJ010: The dirnensionsoftitvacitv+s::i..00 governments to undertake reforms in the way B 3.1: : i : capacity.i

thev conduct their operations, to make in- Capacity should be understood as anvestments in human resources and equip- enabling factot: the tools that make possible

for the local government to perform: in anment, to adopt new work practices. In our eci w We cei t t as:.- . . . . te~~~~~~~~~~~~~~~~~~~~ffective s wo.: We. octe orize those: Aools as'.view, innovatlve and responsible leadership (l) Labor: the quality of its st which depends

and communitv participation provide the re- ..i...their.skills and the.ay they are utilizedquired motivation and the cardinal elements iwithin the bureaucratic siructnre: (2) Cpita1:for those efforts to occur. Nevertheless, in the equipment,;. materials i:and buildings..order to materialize, capacity building will required in public sector activities, without..involve specific interventions, reforms and whieh quality labor could become .ineffectWve;investments. (3) Technology thie government's internal

orgaizationt and -manageent stye, planningn3.2 Do motivated local governments and execution functions.:ihave the means and the ingenuity needed to We say there is a capacity problem when adevelop their capacity? The evidence col- municipality is unable to achieve itslected through the case studies suggests most performancei ggoals even though.it has .access:of them do. A majority of the local govern- to the necessary financia resources.: Suchments reviewed for this study enhanced their inabilityw; ill be associated withAweaknessescapabilities, over this period, by giving at- along one or more dimensions.tention to areas such as staff skills and pro- Caity does not jneed to reside in the publicfessionalization (labor), equipment, materials sector to contiibute to the achievement ofa.high.and buildings (capital), organization and the performing- klocal government. Indeed, anadministration's planning and execution .ef..c.i..lcal governmnent shouldbe ableto usel

:the capacity: t hat exi ts:: outside: the 70Public: Ifunctions (technology). However, even the tecai that es outside the pubic:sector-in the pnvate scctor, among NMs, andW

most motivated municipbos are facing obsta- within the cunity at largi.

cles-local and external-in the process ofdeveloping their capabilities, and important viewv as a functioni of their skills and knowl-efforts are still required in a majority of edge as well as of the wa' such skills areplaces. utilized within the local bureaucratic struc-

3.3 This chapter reviews the most sig- ture. While in many cases inadequate or in-nificant initiatives undertaken by municipios sufficient skills can explain weak capacity, inin order to enhance their capacity, as they others the limiting factor is their ineffectivewere identified by the case studies. In doing use.so, it considers some notable innovations that 3.5 The case studies show that most lo-are being introduced at the local level, as cal governments upgraded the quality of theirwell as the obstacles facing local govern- workforce, increasing the number of profes-ments in their capacity strengthening efforts. sionals in their staff considerably (see Table

3.1). A municipio like Ipiales, for example,The human factor: Skills and Pro- increased the number of professionals fromfessionalization only three in 1988 to thirty in 1994. La

3.4 A kev dimension of local government Mesa, which had one professional in the3.4~~~~~~~~~~~~dinsrto beor 1988 hasnlo nof eighto.rmet

capacity is the qualitv of its staff, which we administration before 1988, has now eight.

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Colombia: Local Government Capacily Study

Table 3.1: Professionals in the municipal administration

Municipio Number of Professionals Employees/Professionals

1988 [ 1994 1988 1994

Manizales 86 148 9.2 5.7

Valledupar 29 118 12.2 4.8

Ipiales 3 30 62.3 7.3

Zipaquira 13 37 19.6 8.7

Piedecuesta 3 15 28.7 12.1

Jamundi 2 8 72.5 29.5

Libano 2 9 61.5 22.8

Puerto Tejada 2 11 37.5 16.1

Pensilvania 1 8 52.0 5.2

San Juan Nepomuceno 1 15 52.0 9.8

La Mesa 1 11 50.0 8.4

Belalcazar 0 10 6.6

Versalles 1 2 39.0 25.5

Zapatoca 2 4 13.5 13.0

Cucunubi 0 2 ---- 8.5

Note: The source of this information are the decrees establishing positions (ocuerdos civiles) in each municiplo for 1988 and 1994.Detailed information for each municipio is presented in Ballesteros (1995). Employees working under contracts are excluded. Theinformation for Manizales,Valledupar, Ipiales and Pensilvania excludes personnel working for the municipal enterprises. For compa-rability reasons, teachers have been excluded even when they are permanent employees of the mtnl cipio, as in the cases of Jamundi,Piedecuesta, Puerto Tejada and San Juan Nepomuceno. In Ipiales, it was not possible to identify the number of teachers in the munici-pal staff.. As a result, the employee/professionals ratio consistent with that of the other municiplos is likely to be lower than the oneindicated in the table. For Manizales and Pensilvania, the values for the earlier period correspond to 1989.

3.6 Even more remarkable is the change policies and reward systems. Depending onin the skill composition of the municipal la- the case, these changes took place in thebor force which has professionalized very municipal administration, the water or publicsharply. As shown in Table 3.1, the ratio of service company, and/or the municipal de-employees to professionals fell in every case partments of education and public works.and quite substantially. In Ipiales, for exarn- 3.8 Scale and isolation. Small mu-ple, this ratio was reduced by a factor of c p reight. In municipios like Valledupar or Pen- particular difficulties in upgrading the qual-silvanIa the raIo of employees to profes- ity of their workforce. In the first place, scalesionals is similar to the one found in a coun- imposes a natural or structural limit on thetry like Chile generally cited as an example number of professionals working for the

of~~~~~~~~~~~~~ munmbera stentenn infes l thein region.'of municipal strengthening in the region, municipal administration. A majority of Co-

3.7 This was done through new hirings lombian municipios simply cannot afford theand training and, particularly among the expenses of a cadre of adequately remuner-larger municipios, by adapting personnel ated professionals in the different areas of

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government responsibility. Secondly, the cost charge of specific construction proj-of hiring even a few well qualified profes- ects-a road, the extension of the watersionals might be too high for many small system-that report to the mayor.municipios that would have to attract them * Some of the intermediate size municipiosfrom other-sometimes distant-places. 3 have been able to attract out-of-town

3.9 To a certain degree, a major!tv of the professionals to work for the local ad-municipiox in our study fall in this categorv: ministration on a long term basis (one tonine out of the sixteen have populations of two years). La Mesa, for example, hasless than 35,000. In many cases they have taken advantage of its proximity to Bo-developed alternative strategies that allow gota and hired well-qualified profession-them to deal with the scale problem, although als to work as advisors to the mayor innot without certain drawbacks: areas such as housing, internal control,* In the very small municipios (for exam- fiscal affairs, contracts and water."

pie, with populations of less than Smlarly Pensilvana has benefited fromplC,~~~~~~~~~~~~ stroll andltllI couIte oessuit resan10,000) the mayor becomes an hombre a strong and committed community resid-orquesta (a one-man-band), being in ing in other areas of the country. Manycharge of most activities that require a young Pensilvanians return to work for

the local administration after a few vearscertain degrce of qualification. In this . o. o-tcjo triigi.opnecase, leadership becomes the central oone-jb trang in comaivariable imposing certain fragilitv for the owned byt former residents. Although

s 1 r r -a | ~~~~many of them eventually leave town, thesustainability of the capacity develop-mentproess4 arrangement has provided a steadv flowment process . of human resources since the beginning

* Sharing professionals with other mu- of decentralization.nicipios is another strategy followed bysome. All those cases involved some 3.10 Employment practices. Developingformal ties between neighboring mu- adequate personnel policies-recruitment,nicipios, such as those existing among promotion rules, staff motivation, paymembers of a municipal association scales-and formal training programs consti-(more on this below). For example, the tutes the main challenge for larger mu-municipio of Cucunuba (with population nicipios attempting to improve the quality ofof approximately 7,000) shares with the their staff. This challenge can be ratherother members of its municipal associa- complex as it involves politically chargedtion the salary of a lawyer that functions decisions such as the level and compositionas a multi-purpose advisor. Similarly of public employment. This is particularlyASOBANDO (the association centered clear in the education sector. Several mu-around Ipiales) provides the support of nicipios face a capacity problem because theits professionals for project preparation Estatuto Docente limits their flexibility toand other technical tasks to the smaller change employment practices given its rulesmuinicipios members. on selection and management of teachers.

* The temporary use of professionals is an 3.11 Personnel policies were found to bealternlative used by Zapatoca, (a mu- an important issue among the larger mu-nicipio with a population of approxi- nicipios in our sample, all of which havemately 10,000) that had to eliminate pro- started to implement their civil service re-fessional requirements for heads of de- gimes.6 To different degrees, municipios likepartments due to ItS inability to attract Manizales, Valledupar or Ipiales have devel-full-time candidates. In response, Zapa- oped a sophisticated municipal administra-toca introduced the figure of project tion with well qualified and motivated pro-managers (gerentes de proyecto) in

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J~ox 32: TbeICAM f Maniales.gram. Today, most of the departmentheads and managers in the service com-

The. Municipal Training Institute. of panies and decentralized offices haveManizales ~ ~ ~ ~ ~ ~ ~~anc andM1 decentralizedn offce haveMa.izales (ICAM) started-.oerating in . been formed in what they proudlv call

with support fromn the French CooperationAgency, The ICAM: was conceived' as part of 'the municipal school'. The mayor him-Agenc. TheICAM as coceive as pil ofself is an example of this model~ he par-a broad strategy to solve technical andbehavlioral constrains of staff. ICAM has ticipated in the administrative reorgani-practicallv no permanent personnel. zation during the 1988-90 period, headed

ICAM organizes training courses, workshops the team that liquidated the departmentaland seminars covering topics such as public water company!8 and was in charge ofadministration, strategic planning, data the new company that was formed. Also,systems, computer piogmmming, legal issues Ipiales pays up to half the cost of train-and organizational management. ICAM's ing courses municipal employees takc intraining activities have.benefited over 2,000 local and regional higher education insti-people. It provides financial assistance to 200 tutions.public ser ants pursuing high school,undergraduate and graduate- degrees, and Capital: The physical factorprovided computer training for another 150staff. Its receives one percent of the municipal 3. 12 Most public sector activities requirebudget. - the use of capital in addition to labor. High

qualitv labor becomes ineffective when, forfessional staff This, however, was not done example, working in run-down buildings orovernight: without access to necessary equipment. The* Manizales has a long tradition of pro- evidence in this area is ver-y clear. Mui-

fessionalization, which has been rein- nicipios do not find serious difficulties inforced over several years by conscious establishing a reasonable level of capacity inefforts to increase the ratio of profes- terms of equipment and buildings.sionals to unskilled workers through per-sonnel attrition. Those efforts are com- 3.13 Compared to the other two dimen-plemented bv its staff development and sions, capital does not involve particular dif-

ficulties. This could be related to two factors.

* talledupar has, since the popular eec- First, once a municipio has the financial re-tion of mayors, professionalized its ad- sources, access to equipment and matenrals isministration. The cabinet is composed of relatively easy as there exist well developedmostly young professionals (manv with markets. Second, strengthening this dimen-graduate studies) with experience in the sion of capacity is less controversial as itpublic and private sectors. The public does not involve sensitive issues of personnelworks department that traditionally ex- and organizational practices.perienced redundant unskilled labor, was 3.14 A somewhat controversial aspectprofoundly reformed. Workers received relates to policies followed regarding theofficial support to form a cooperative equipment for constriction and maintenanceenterprise (with financial support from projects. Several municipios have establishedUNDP). IIow maintaining rural roads in fonclos rotatorios de maquinarias: they owna very effective wav As a result the de- the equipment in partnership with a munici-partment has a small cadre of profes- pal association (as in the case of Cucunuba,sionals. and a better performance record. La Mesa and Ipiales) or by itself (as in Zapa-

* Ipiales established, since 1988, a rotation toca). In most cases, the muinicipio facilitatessystem among municipal employees that the equipment for community use, throughhas worked as a de-facto training pro- different arrangements. In Zapatoca the

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equipment is rented while in La Mesa it is tive for many municipios to undertake someloaned based on an agreement that the bor- type of administrative reforms: changing therowers will contribute specific inputs to the structure of the municipal organization,construction projects. In Ipiales, a yearly creating new departments, establishing theschedule for use is agreed among the mern- corresponding division of responsibilities andbers of the municipal association that owns channels of communication. To be fully ef-the equipment. fective, reforms must be done in a way that

3.15 This practice-which does not exist contributes to staff morale. Several mu-nicipios have shown initiative and drive in

in large municipalities like Manizales and implementing these reforms. Others, how-Valledupar that contract out to the private ever, appear to be facing performance prob-sector-is typically justified on the groundsthat it is less expensive than hiring private lems as a result of their failure in this area.contractors The evidence on the cost- 3.19 Organizational reform did not appeareffectiveness of these arrangements. how- to bc a matter of concern for the smallerever, is inconclusive. It is likely that fondos municipios, which require very simple or-de maquinarias are a sensible idea for small ganizations based, to a large extent, on theand remote municipios, but not necessarily mayor. The case studies suggest the issuefor all. gains importance in municipios of approxi-

mately 40,000 inhabitants and above.

Technologies: Improving the 3.20 The larger municipios in our samplemanagement process were able to develop sophisticated and effec-

3.16 Good people working for a badly tive organizations:organized municipal administration, or with- * They have reorganized the structure ofout the necessary management tools, will not their administration in a way that allowsgo too far in terms of effectiveness. This for decisions to be made in a fast and ef-principle is recognized-although not alwavs fective manner. Valledupar, for example,in an explicit manner-bv a majority of the introduced a small technical unit in thelocal governments wc reviewed. The case mayor's office to give due process tostudies show efforts to improve the function- problems and needs identified by lowering of municipal organizations, the use of levels as well as by citizens. Togetherplanning and the execution of municipal with a planning unit, it has allowed topprojects. Those efforts are found throughout management to deal effectively with athe size range, and seem to be commnensurate larger number of problems and issues.with the municipio 's size. * They have developed some modern and

sophisticated organizations such as the3.17 Support from agents external to the Empresas Piblicas de ManizalesmCopeio-for example, from the German (created in 1962 before the beginning ofCooperation (GTZ), the PDI, UNDP. or the the decentralization process),' character-Universidad Pedag6gica-in this area has ized by the stability of its managementbeen for specific projects and following localOi ~~~~~~~and independence from political mnflu-requests. For example, the case studies iden- ence. Highly qualified personnel, goodtified several mnstances in which an external managers, excellent equipment togetherngency provided technical assistance in the w a. - wl~~~~~~~~~~~~th an administrative organiat'on thatpreparation of development plans in response has adapted through time explain its ex-to a municipal request. cellent performance record.

3.18 Reforming the municipal organi- * They have been able to implement ad-zation. New responsibilities make it impera- ministrative and motivational reforms in

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Colombia: Local Government Capacity Study.

the municipal administration with great department in charge of the road sector issuccess. For example, in Ipiales a new notoriously weak and responsibilitv for thecorporate culture has developed in the water system had to be transferred to the citylocal government, that followvs a very of Bucaramanga. This pattern is in part theflexible and decentralized wvork stvle in result of a highly centralized organization inan environment of high staff motivation. which most decisions must still go through

the mayor although the complexity of prob-

large enough to face problems of organiza- lems is such that no single person is capabletional complexity, but smaller than the ones of processing the solutions. Similar trendsdiscussed above-experienced difficulties in are found in other municipios in this group.

ileirfimunici- In manv cases. the sustainability of reformpal organization. Most of them havc made efforts could be jeopardized due to insuffi-progress in establishing their water compa- cientlydevelopedmunicipalorganizations.nies or creating their secretariats of educa- 3.23 Planning as a tool. The sharp in-tion. However, they have not been able to crease in resources being managed bv localintegrate the different parts of the municipal governments and the varietv of sectors inadministration in an harmonic fashion. As a which they now have responsibilities, implyresult, government effectiveness depends on the need to upgrade their capacity to plan-the specific arrangements in the sector and that is, to establish goals and the means tolarge differences emerge within the local achieve them. In addition to satisfying tech-government. nical criteria, planning under the system of

3.22 Piedecuesta. for example, has a well decentralized governance must also reflectorganized and functioning secretariat of edu- the needs, preferences and priorities of re-cation that helps cxplaining its remarkable cently enfranchised citizens. Thus, local gov-record in the sector. On the other hand. the emments must combine their efforts to de-

velop conventional planning skills with newmethods to elucidate communitv demands.

Box 3.3: The administration in Ipiales.- .. . ~~3.24 Few municip)ios have fullv dcveloped

The municipal administration in Tpiales is an theopen and flexible organization. Smice 19X, these capabilities. But, when the evidenceand before the enactment of the civil serce collected in the ease studies is reviewed criti-law, Ipiales established the practice of rotat- callv and with due consideration to differ-ing staff among departments, as part of a ences in size, a more encouraging picturebroad strategy aimed at transforming the gov- emerges. While small municipios do not haveernment into an entity driven by a spirit of full-fledged development plans, most have aefficiency and service. Ipiales has highly mo- listing of investment priorities, the source oftivated and well prepared personnel. funds for each of them and an executionThere are no administrative walls. Interacti, wn plan-probably the right tool given theirbetween staff is direct and work is carried out scale. Among the larger municipalitics, mostunder a teatn stnrcture. Senior officials par- have both municipal development and sec-ticipate at all levels. In the Department of toral plans vhich, in effect, have becomePublic Works professionals answer their own 12

phone andhande thir mal. Popleworkoperating tools in the day to dav operations.-phones aind handle their mnall. People ,vDrk.hard and long hours without over-time pay- 3.25 An interesting aspect of manrv ofments. A simple example of work lhabits pre- these -'plans" is thcir impact on generatingvailing in the administration is the absence of organizational and comnumnity spirit. Severalthe "coffee-clerk". This working style has municipbos have systematicallv involved theincreased staff moral and strengthened ties

.kt h comnt. community in the preparation of plans- For* ith the conrnmunity.___________________ . _ __ . cxample, La Mesa for its education sector

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ernments are receiving adequate support,Bo 3.4: ative Planning in Valleduparwhen effectve demand exsts. Exteal help,As in manyi other places,;m municipal developw however, cannot provide the motivation totXment. plans; were lgprepared: gin 0;Valledupar ;<by; initiate such exercises nor the commitment toexternal agentsuniversities consltants andintealize them..national entities) wvth little torno paricipavltionbof local 0sta The result4was lowi owner-. 3.27 Project execution. It is at the levelship an;dlittle 0impact. This changed.when,lI of implementing investment projects that.1:993y,the :administration .implemented; a:n: many municipios face capacity limitations.instrurmerlt known as-: Strategic SituationalT s a m .

fPIanning~~~~. ..SP: to: ....deelp and . xc The ev'dence shows a mixed record. \Vh'lePlanimng (SSP) to hel.develop.. and exct interviews with local residents and key in-;he municipal; developent plan$:* svhchflits stformants indicate the existence of problemsUnder SSP an acti ont: plan, wheX ichs: t tltiests strate-d such as slow execution, the case studies en-gic actvies and idhentifgimestheenttionj 01sties re- countered many examples of effective im-posibl for~ thei ipleena ion,.pre-0;paredcoellectively. BlSased :on }tit, 0 the :tadiini-l plementation. Capacity in this area seems to

.,stration developed the; 1993-944 gnovernment be closely associated with various other di-plan which0 identiied 18 specific-0 problems, mensions such as strong leadership, com-responsibilities, humn andl financial re- munity involvement in projects, clear priori-sources iand specific: actions. Inaddiition, SSP ties, and an effective municipal organization.:helps: t o~ sfaiblish.. a iytemiiitd Inatitbr iprqg-Ehurelps to estabiosh a syste tomoJ vrynto:ti prog- 3.28 A pattern appears among those casesresson various task :Orlprojects. Every onh.the nmayor: meets. with the teamst responsible of successful execution, linked to the criteriaforAimplementingk different componentsof the of selectivity and specialization. Selectivityaction:plan to evaluate :progress on the vari- implies that municipios improve project exe-ous activities according to previously estab-v cution by concentrating on relatively few

. ~ ~~~~~~~~~~~~~ .. .....lished indicators, :;g:.:.g:ggg;g:0::: g:.-;; t;4priorities. Typically, the mayors in the re-

To guarantee- the opration alprocesstof:the viewed cases tend to concentrate their re-SSP process,: a Central Planning Unit (CPU) sources and political capital on a limitedanda Techno-Political UnitTPU). were.. es-. number of projects-a particular road,t fablished. Thef CPU is-re:sponsible for guaran- bringing water to town or cleaning the river.teeing:the processing of the problems sidenti-fied in the actionOplan and'i plement the SSP. 3.29 Specialization implies that the localprocess in all departments.:The TPUtprovides 0 government does not attempt to do everythingtechnical support and filters the political dei by itself Successful implementation was al-cisions and problems that reachhthe:ma or. ways associated with the involvement of

someone outside the local administration: theplan. and Pensilvania by regularly consulting community (as described in Chapter 2), ancitizens on sectoral priorities (see Box 2.4). NGO (for example FUNDAGUA in Valle-ln some cases, plans-documents-have the dupar or Fe y Alegria in Manizales), the pri-benefit of acting as 'certificates of continu- vate sector or a neighboring munic pio.ity', particularly through changes in admini-stration, as well as a technocratic device. The challenge of putting it all to-

3.26 In manv cases. municipios rely on gethersome type of support-from consultants, 3.30 The evidence presented in this chap-universities and technical groups, or in a fewo ter I~~~llustrates the extent to whilch local gov-cases from private firms-to develop these etments have strengthened their capacityplans. Although the cases reviewed show and the significant ingenuity and degree oftheir share of plans that fall within the cate- i gory of 'thick and useless volumes', it ap- inoaonttexssmngmncpo.gory of .thick and useless volumes', it ap- Table 3.2 summarizes some of the notablepears that in most opportunities local gov-

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Table 3.2: A sample of local capacity enhancing initiatives.

Labor Capital Technology

Staff quality, which depends on both The equipment, materials and The government's internal organi-skills and the way they are utilized buildings required in public zation and management style,within the bureaucratic structure. sector activities. planning and execution functions.• Municipal training institute * Privatization of all road * Strategic situational plan-

(ICAM) in Manizales. maintenance in Manizales ning in Valledupar.* Gerentes de provectos in Za- and rural road maintenance . Methodology of investment

patoca and long term advisors in Valledupar increased planning and monitoring byin La Mesa. available capital to the sec- projects in San Juan

• Advisor shared by members tor. Nepomuceno.of municipal association in . Introduction of computers . Administrative reforms inCucunuba. and systems in the water and Pensilvania (creation of

* Mfunicipio pays 50% of sanitation enterprise in San public enterprise, UTMATA.training cost in qualified in- Juan Nepomuceno. etc.).stitutions for staff in Ipiales. * In Pensilvania. the public a Administrative reform and

* Bilingual teacher training in hospital, the water companv development plan for edu-Puerto Narifio. and the UMATA have com- cation in Piedecuesta.

. Professionalization of man- puterized their systems. * Systematic use of sectoralagement in all municipal de- . Private developers in charge plans in La Mesa.partments in Pensilvania. of urban road construction * Special secretariat in chargewith repatriates. in Piedecuesta. of mega-projects in Mani-

. Rotation system as training . Sharing equipment between zales.program for municipal staff members of municipal as- a Decentralization of munici-in Ipiales. sociation in Ipiales, La Mesa pal administration in Ipiales

. Introduction of a system of and Cucunuba. gives spending authority tocompetitive personnel hiring . Fondos rotatorios de department heads.in Puerto Tejada. maquinarias in Zapatoca.

examples of capacity development found in of repeated efforts by the differcnt levcls of

the case studies. government, most muinicipios still find the

3.31 The process of building a modern legal and regulatory framework which gov-erns them complex and confusing.13 Frequent

anid effective local govenu-nent Is, however,.and effective local gt ichanges and additions implv further compli-

immenselv complex. Municipios not only 14

must face the political and technical chal- cations.lenges involved in the process of reforming 3.33 In many cases well intentioned local

their administrations, upgrading the quality authorities have unknowingly broken rules

of their staff and adopting new systems and due to lack of information. This has not con-

methods. They must also learn how to oper- tributed to generate a sense of trust between

ate in an institutional and legal environment the different actors involved in the process of

that continues to change at a fast pace. decentralization. Most of the local authoritiesinterviewed for this studv complain about

3.32 A stifling environment. A success-I what thev perceive to be undue persecutionful effort to build local capacity requiresmunicipios to have the autonomy and secu- level aences. p c th ser withncon-

rity needed to make long term commitments. lerol repnsies-patclaelnaturally conenIn that sense, clear and stable rules of the abou tes nlackso complan c t eg

game are a kev contributing factor. In spite nborms. n f channe of c ega-norms. Insuf2cent channels of conunuca-

-25 -


tion between levels of government make it nicipios in our sample may be institutionallydifficult to reverse this environment, which is stronger than the department and less in needclearly not conducive to development of ef- of assistance,o6fective tnliCiniipiO.os

3.38 This state of affairs is probably the3.34 A factor further hampering the abil- result of a combination of factors. First, theity of some local governments to consolidate newness of these arrangements and the ambi-their capacity building efforts is the barrage guity over the implementation of the divisionof national programs for institutional devel- of labor between departments and municipios

opment that operate in an uncoordinated is a contributing factor. Second, the institu-manner. The paradoxical result is that these tional weaknesses of many departments doesprograms-meant to support local goveri- not position them adequately to play the rolements--cnd up forcing on them an inefficient of partners and enablers of the efforts con-use of their time and human resources, over- ducted at the local level.whelming-rather than strengthening-their 3.39 Coordination issues. The process ofcapacitv.33 orlalnIse.Tepoeso

local capacity development could be suffer-3.35 Municipios and departments. T'le ing in many circumstances due to insufficient

decentralization framework being imple- inter-municipal coordination. Such issuesmented in Colombia requires, in different were identified in two main areas:ways, that municipios work together with * The difficulty of learning about the les-their departments. In some sectors, such as sons and experience of others. Selfeducation, local and regional governments starter municipios must necessarily be

share responsibilities. Departments have, innovators and, to a certain extent, riskaccording to law, a coordinating, monitoring takers. However, dissemination of theirand assisting role to play with respect to experience with capacity enhancing ac-municipios.' tivities, should make it easier for others

3.36 However, the case studies indicate to follow. Information about successful

there is currcntly a significant gap between interventions should also make otherthis proposed role and the observed realitv. governments less anxious about the so-Among the sixteen municipios covered in this cial and political costs of reforms.

study only two-those in Valle del Cauca- Spontaneous dissemination, which mightshowecd a departmental presence conducive to be taking place, is taking too long anda system of effective governments. That is, does not reach everywhere)7 There isone in which departmental institutions-such currently no institution in Colombiaas ACUAVALLE or the secretariat of edu- (public or civic) that is assuming thiscation-coordinate and assist municipios in dissemination role. Thus, when dealinga non-intrusive and effective manner. with capacity development, most of the

municipios covered in the study were in3.37 Among the rest, a majority of mu- the awkward position of "reinventing thenicipios have either confrontational or distant wheel".

relationships with the departmental govern- * Scattered evidence indicates that one ofment. In a few cases, close political links the institutional development schemeswith the governor's office was helpful in ob- most frequentlv used at the local level istaining financial resources. However, little the association of two or more munici-was observed in terms of a long-term com- palities with a view to take advantage ofmitment to strengthen local institutions or economics of scale in management andworkinig together in important areas such as administration and/or to facilitate hori-planning. To a certain extent, the larger mzu- zontal transfer of management technolo-

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gies. Often these associations stimulate 3.42 Privatization of services does notexpansion and innovation in local serv- appear prominently in the agenda of mostices. Five of the municipios in our sam- local governments. Valledupar and Mani-ple are members of a municipal associa- zales show some interesting experiences andtion. The legal framework is permissive are more likely to move in this direction thanand does not constitute a significant ob- smaller municipios. The evidence reviewvedstacle to either the creation of new asso- suggests there is ample room to advance lo-ciations or their involvement in local ca- cal capacity by involving the private sector.pacity development efforts. There is not,however, sufficient awareness among Local capacity developmentmunicipios of the advantages of this typeof associational arrangements. Further- 3.43 As our review indicates, capacitymore, without financial and technical building involves efforts in several dimen-assistance, the process of constituting a sions, with the total being larger than the sumnew association may be too costly for of parts. Putting it all together-the ultimatemost small municipios. challenge for a reformist local government-

is not easy. The experience of these mu-3.40 Involving the private sector. An nicipios stronglv indicates that leadershipimportant aspect of capacity development is and community participation are the funda-for local governments to learn how to work mental factors that bring thesc efforts to-with new partners that can significantly ex- gether into a consistent whole. It also indi-pand their capacity to perform their respon- cates there are no simple recipes that allsibilities and provide services to their popu- municipios can follow. The right model forlation. One surprising finding coming from institutional development must follow localthe case studies is the limited role the private perceptions of needs and preferences regard-sector seems to be playing in the process of ing the means to satisfy them. There is nostrengthening local governments. And the feasible substitute to an approach in whichtype of synergetic association conventionally local governments, with the active participa-associated with the case of Cali does not tion of their communities, take the initiativeseem to be easily replicated in other parts of and responsibility for the actions conducivethe country. to their institutional development.

3.41 Practically all municipios have pri-vate contractors execute part of their con- See Annex 3 for a more complete presenta-struction projects, particularly in roads and tion of the conceptual framework used towater. Beyond that, the evidence on collabo- analyze capacity in the case studies.ration between the public and private sectors 2 See Campbell and others (1991). It shouldat the local level is scarce."8 Furthermore, be noted that the professionalization insmaller municipios find it difficult to involve Chile took place over a period of fifteenprivate contractors for municipal projects years, while the changes we observe in theseunless they are of a certain magnitude as, in municipios took place in only six years.most cases, those contractors operate out of 3 Among the sixteen cases reviewed for thislarger cities two to three hours away. Ja- study, Puerto Narifno exemplifies the ex-mundi and Piedecuesta, both part of expand- treme difficulties of an isolated "micro-ing metropolitan areas, have established municipio". See Palencia (1995d).some type of cooperative relationship with 4 The cases of Zapatoca and Belalcazar aredevelopers that has payoffs to the municipio good examples. The very different leader-but is not conducive to establishing sustain- ship stvle of their mayors had a fundamen-able capacity within the local administration. tal impact on local government capacity.

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See Cardenas (1994d) and Palencia the municipal plan. This is particularly true(1995a). when capacity varies significantly between

5 Although it is a larger municipality, Piede- sectors In those cases the municipal plancuesta has similarly benefited from itsproximity to Bucaramanga as many of the '3 It is not unusual for different nationalprofessionals working in the local admini- agencies to have conflicting interpretationsstration live there. of the rules to which local governments

6 It is too early to assess the full impact the must conform. Considering the large num-carrera administrativa might have on mu- ber of goles affecting municipios, the fa-nicipal capacity. Nevertheless, some evi- t1onal governeent issied, on Novemler ofdence is slowly emerging. Hiring standards 1994, Dccree 2626 whlch compiles theare unlikely to experience significant constitutional and legauiniles affecting the

changes: the carrera administrativa does paglities andecrg of andci-not appear to be neither a necessary nor palities. The decree has 686 articles and 61sufficient condition to hire qualified staff. pages.Its impact may be higher in terms of lower- 14 For example, Law 136 (which regulatesing staff turnover. However, as a large municipal operations) was approved onnumber of professionals will not be covered June 1994 and modified by Law 177 on De-by the carrera administrativa the final ef- cember of the same year.

feet on capacity is unclear. Law 60 established that departments must

See Cardenas (1994c) and paragraph 1.18. provide the technical, administrative and fi-

8 Decree 77 of 1987 mandated that the de- nancial assistance to niunicipios required

partmental water companies (EMPOS) be for the adequate provision of services.transferred to local authorities. Given the 16 For example. officials in the Department oflack of interest on the part of the Depart- Narifio indicated that, given their relativement of Nariflo, Ipiales took the initiative to strength, Ipiales could be offering them as-liquidate EMPONARINO. The Mayor of sistance rather than the opposite.Ipiales at the time of our visit, had been in 7In preparation for this study, a workshopcharge of the liquidation. He manifested In orgarationd the stu f a sixtehothis was a very important learning experi- was organized and the mayors of the sixteenence on administrative, legal and political municipios were invited. The discussionsmatters (dealing with the department, the and reactions to the exchange of informa-union. bureaucrats). tion indicated both the inadequate flow of

information on best practices and its poten-9 Interesting cases of inter-municipal coop- tial impact on local capacity.

eration were identified in this area. The 8 piales presents a special case. Its ap-Empresas Publicas de Alanizales received prachsummarized in the s ap-technical support from the municipal com- proach-summarized in the slogan MHu-tehiany supporm Medellin ER the municipal cnicipio-Fmpresa Ano 2000-views thepany from Medellin. ISERVI, the municipal municipal government as a self-sufficientcompany in charge of waste management, enterprise that commands the resourcesstreet lighting and other services in Ipiales, needed to ommanthe sesucesreceived support from their counterparts in needed to provide essential services to itsMedellin and Cali. citizens. In the sense that they have con-

sciously tried to develop in-house capacity10 This group includes Zipaquira, Piedecuesta, to avoid depending on private contractors.

Jamundi, El Libano and Puerto Tejada. A sense of regional isolation might be con-

" See, for example, Villa (1995b) for an ex- tributing to this approach.ample of this view in reference to Jamundi.

12 In some cases, there appears to be a lack ofintegration between the sectoral plans and

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Colombia: Local Government Capacity Stuidv

Chapter 4

Addressing the challenge of local capacity development

4.1 The chief findings of this study-the a) Sustainable development of capacity atimportance of leadership, of community par- the local level is possible only when thereticipation and of political reform, as well as is effective demand by local administra-the tremendous potential for innovation at the tions and communities. The interventionslocal level-lead us to propose an approach needed to increase demand for capacitvto capacity strengthening of local govern- development must go beyond technicalments that implies the involvement of a vari- assistance and work, indirectly, bv pro-ety of actors-public and civic, central, re- moting innovative and responsible lead-gional and local-and tools that go beyond ership and community participation.traditional technical assistance progranms. b) Technical assistance should follow local

4.2 But while signs of reform and inno- demand, be tailored to local needs, andvation are beginning to appear in many ma- be provided in a decentralized manner.vatpionare bening proes maybea inmpededny mThe challenge is to create the environ-nicipios, this process may be limpeded by etcnuietvh mrec ndoubt, uncertainty, and even strained rela- contion o systemeinch andtions among levels of government. A legacy consolidation of a system In which mul-of antagonism may be affecting the spread of tiple agents are positioned to offer sup-self-starting action bv some municipios. Af- port to local govenments.

c) The diffusion of instituitional changeter vears of tight control. local governments Throughou ountill depndoare now flooded with sudden reforms. These the speed and extent to which infodna-carry mixed messages of freedom floating in tion eon est to and informa-

an tmsphreof doubt, new obligations, and tion-on best practices and availablean atmosphere of do ne extens, and solutions for local governments-flowsrestrictive controls. To some extent, the in- betwveen muinicipios. Such disseminationnovations and initiatives taken by local gov- bet consideedcapublic good that iserninents mav be seen as a reaction to exces- can be consdered a public good that IS

sive constraints of the past. And, some of the currently bill-feeling will pass as institutions become 4.5 Promoting leadership and com-more familiar with their new roles. munity participation. The study found again

4.3 It would be wasteful not to capitalize and again that local leadership and commu-on the new, innovative energies depicted in nity participation emerged as key parts to thethis studv. We think that with dedicated ef- explanation of local capacity. We concludeforts to improve intergovernmental relations, that the political and social system is nowthe new civic spirit is sufficiently robust to opening opportunities for competition in thesupport a new approach to institutional selection of local leadership and for civil so-strengthenin Beyondachna ainstitutioan ciety's involvement in local public life. Astrengthening. Bevond technical assistance 'I aet eymr evlmeans tapping into the vibrancy of local ini- new strategy will have to rely more heavily

and socia re- .on incentives operating on local 'civic andtiatives produced bv political and socpal re- .ks

political markets'.forms.

4.6 Efforts should be made to foster andThe proposed strategy develop these fundamental qualities of civic

life. Stimulating development of local leader-4.4 Our proposal is based on threebasic ship and fostering civic involvement would

premises arising from the study: have the double effect of increasing demand

for capacity development and increasing ca-

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pacity itself in the form of better mayors and * The collection and publication of infor-council members and local participants. The mation on the programs and performancepromotion of leadership and community par- of local governments can be anotherticipation, should thus become an integral powerful tool to improve accountabilitypart of any effort directed toward local gov- and promote more responsible leader-emmnent strengthening. This view is in con- ship. This will require a systematic effortsonance with the approach proposed by the to monitor events at the local level, thatGovernment of Colombia in its new devel- can involve both the national (probablyopment plan, El Salto Social, that calls for through DNP) and departmental levels.public policies and actions conducive to more The Sistema Nacional de Evaluaci6n departicipation and supportive of the develop- Resultados could offer a reference toment of participatory organizations.' these efforts.

4.7 This strategic component should in- * The promotion of community participa-corporate programs along the following lines: tion must be an important part of this* Public affairs campaigns to educate and strategic component. Social marketing

inform the public about the responsibili- interventions (for example, calling forties of local governments-mayors and more community involvement throughcouncil members-and the rights of citi- media programs as was done in mu-zens should contribute to generate more nicipios like Valledupar, and throughawareness, promote accountabilitv of lo- newsletters) must be combined with thecal officials and motivate citizen in- empowerment of community basedvolvement. The national government2 can groups. The experience of PNR hasinitiate some of these campaigns, but in proved to be very positive and their ef-order to be effective and sustainable thev forts should be continued. The cofinanc-wvill require the involvement and initia- ing funds can also play a role by openingtive from the departments and the NGO their operations to, and promoting pro-communitv. Professional and business posals, from community groups. Theassociations can also be invited to sum- many innovative forms of participationport these campaigns. already seen suggest that grants to com-Innovative and responsible leadership munity groups to foster innovative modesshould be rewvarded. Potential ideas of participation in local issues should bemight include prizes, national service explored.rawards, scholarships and fellowships, * The latter is an area, however, in whichintermships and national notoriety for inlocal governments and NGOs have anovations (for example in commun.ty comparatlve advantage over nationaland private sector participation) in good programs. Local leaders, independentlygovernance, and other key categories. or n cooperaton withNGOs, canhave aThe national government, through its significant Impact in mobilizing theirsectoral ministries, can establish the communities to participate voicing de-practice of publicly recognizing local mands, making choices and being in-* leaders that excel in their performance in volved in projects. In the last analysis,leadrs tat ecel n teir erfomanc inthe sustainabilit of reform efforts willareas such as education or health pro- tymotion. The Fcvderaci6n Colombiana clSe depend on whether they generate a realMuinicipios and the Confederation of sense of ownership among citizens.NGOs should play an active role in co- 4.8 Decentralized and demand-drivenordinating these prizes and recognition support. The case studies indicate that localprograms. capacity strengthening is seldom the result of

supply-driven and centrally provided techni-

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cal assistance. This leads us to suggest that, egy for local capacity development shouldin order to be effective, technical assistance not rely exclusively on vertical relationshipsshould: (i) tend to follow local demand rather (nation, department, municipality). In ourthan central mandates; (ii) be tailored to local view, horizontal relationships-that is linksneeds recognizing the heterogeneitv of Co- among municipalities and between local gov-lombian municipios; and (iii) be provided in ernments and private entities-should play aa decentralized manner. more central role in local capacity strength-

4.9 The challenge, in our view, is to ening efforts.create an environment conducive to the 4.10 The goal should be the active in-emergence and consolidation of a system in volvement of the many institutions with cx-which multiple agents-public, private and pertise in capacity strengthening-non-profit, local, regional and national-are universities, NGOs, professional associa-positioned to offer the type of technical sup- tions, private firms, departments and munici-port local govemments may require. A strat- palities-to provide technical support to lo-

cal govemments. A network of those institu-Box 4.1- Working with NGOs.4 tions-organized at the regional and nationalColombia has a very large and active network of level-would provide a forum for the ex-Non-governmental organizations (NGOs) rang- change of ideas and experiences. It woulding from sophisticated national organizations to also promote high professional standards-local, community-based ones. Their contribution through formnal and informal means-in whatto the development of local capacity involves the m b a. . ~~~~~~~~~must be an essentially competitive setting.direct provision of services to communities(reduc ing demand on public services) and work 4.11 The evidence indicates that the num-organizing communities (helping local govern- ber of organizations involved in the provisionments to establish communication channels and of technical support to municipios is growingidentifying community preferences).. . -. rapidly. The legal and regulatory framework

Several NGOs arc contributing more directly to allows local administrations to contract pri-strcngtbeninEg the capacity of local adrainistra- vate sector firms, universities, non-profit or-tions through their- assistance in the preparation g a p aiof zmunicipal development plans and staff train- management and support tasks.ing. Experience indicates that those NGOs thatare involved in the promotion of communitv 4.12 The national and departmental gov-participation also participate in the formulation ernments could contribute to this process by:of municipal development plans and the provi- * Helping initiate and coordinate, at least.sion of training to local government officials. i i .~ ~ ~ ~ ~~~~~~~~~~i i ts formation period, the institutionalThe national constitution provides the legal development network.framework conducive to a formal participation. . * ~~~~~~~~~Offerngp financial incentives for new.by N(O0s in local programs. The legislation.. ... . . ^. , . ..... ~~and potentially cffective. suppliers ofimplementing the relevant articles of the Consti-a sl tution was enacted in late 1994 through Decreehnical support to get involved in the2626, removingjthe last legal barriers to this institutional development network.5 Ex-important type. of partnership. However. amples include: (i) a sister cities programachieving the fill potential in this area will take in which successful municipios receivetime-as jocal governments, commurnities and grants to support weaker ones; (ii) gov-NGOs become familiar with the new framework. ernment aid to regional schools for mu-The establishment of a national registrv of nicipal management that adhere to na-NGOs and several other initiatives included in tional professional standards and includethe national. government's development plan municIpal I I I. - . . .................. munmc pal representation mn the'r boards,should contribute to consolidating the role (]I') fellowships to former mayors andNGOs plav atthe local level. ......... n)floslst omrmyr nN.....s play atthelocallevl. . . !communlty leaders recognized for their

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performance and innovation, that would uncertainty about the meaning of reforms,allow them to advise other municipios. coupled with a legacy of strained relations,

4. 13 Disseminating information. Access may present serious obstacles to further tak-to information about innovations and best ig of intiatives by local governments.practices taking place in sister institutions 4.16 A dissemination effort to improveacross the country and available sources of local understanding of legal and regulatorysupport is an extremely powerful tool for a reforms in the country-such as the lawslocal government motivated to strengthen its dealing with procurement and planning. rulescapacity. Spontaneous dissemination, which of cofinancing institutions, to name a few-might be taking place, is taking too long and is a very important part of laying the foun-does not reach evervwhere. The experience of dation for local institutional strengthening. Athe municipios reviewed for this study testi- national education campaign followed by thefies in that regard. The lack of an institu- introduction of a system of legal informationtion-public, private or both-that performs to which local governments have readily ac-this dissemination role is making the task of cess should be considered by the nationalenhancing capacity an even more difficult government, probably in coordination withone. the Federaci6n Colombiana de Municipios.

These efforts would respond to the uncer-

experiences and inforemation on capacity de- taintles faced by local govermments and con-experence andinfomatio on apact' d- trbute to create a more favorable setting forvelopment will require an active role by one trior more national institutions, although not theimplementationoftheproposedstrategy.necessarily governmental. A reformed andmore effective Federaci6n Colombiana de Implementing the strategyMunicipios could play a leading role in this 4.17 The proposed approach falls in linearea. However, even if it takes on that re- with reforms of the state being implementedsponsibility, it should coordinate with and in Colombia and other countries in the re-involve other institutions that in their day-to- gion: the central government's functions inday operations interact with local govern- institutional strengthening shrink back, andments, such as the DNP, the Ministries of those of subnational governments and theEducation, Health, Government and Devel- civil and private sectors expand, more inopment, DRI, Findeter, FIS, departments, proportion to the respectful areas of com-regional development institutes such as parative advantage.IDEA. ESAP, as well as a diverse group ofNGOs. Examples of potential programs in- 4.18 The role of the center. In accor-cluded: (i) a data-base and library on best dance with the strategic corponents we arepractices and municipal innovations; (ii) a proposing, the role of the center would beprogram of telephone consultations for may- much more sharply focused on developingors, council members and citizens; (iii) study ways to leverage incentives already beingtours to places of outstanding practice; and created im civil society. National authorities(iv) advisory services on how to recruit and would thus become enablers of possibilities,

rather than direct builders of municipal insti-sign contracts with NGOs, universities, co-operation agencies, and the like. tutional strength. This will involve interven-

tions such as public affairs campaigns and4.15 The environment of local institu- the collection and dissemination of informa-tional change. Overall, the legal and political tion on local government performance sug-reforms that have shaped the new system of gested in this chapter. In doing this, nationaldecentralized governance are propitious to authorities will need to clarify the specificthe development of local capacity. However,

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Colombia: Local Government Capacitv Studa,

responsibilities of the different organisms 4.20 Departments. In many cases de-currently involved in these areas.7 partments themselves are in need of capacity

4.19 Whcnever circumstances justify it- strengthening. Ideally, they should becomefor example, in termns of public information partners and enablers of the efforts con-about the legal framework-the center ducted at the local level. In several cascs-should intervene to remove obstacles in the such as Antioquia and Valle-they are al-wav of local governments. Several examples ready fulfilling that role. But, according towere identified in this chapter. The relatively the evidence collected, they are exceptionswereh costs of capaiths ehapter.ie prorat y rather than the rule. This suggests the need tohigh costs of capacity enhancing programs cosder ways in hc eatet afaced by small and weak municipios mav conslide in which departments mayjustify some type of subsidv, probably in the consolidate their relationship with municipalform of a matching grant (see Box 4.2). The governments, emphasizing voluntary coop-national government could make funds avail- eration between them.able to qualifying muinicipios that present a 4.21 Municipal associations. Coopera-capacity development plan or programs that tive forms of associations between munici-establish competitive criteria for entry and palities can play an important role in thispromotion of municipal staff. approach, particularly for small municipios

experiencing capacity limitations due to in-sufficient scale. Several of those associations

Box 4.2: A new approach to technical assis-

tancer a demnand-driven approach to technical Box 4.3: The role of municipal associations8

.assistance, a variety of sources-sectoral min- Both from a theoretical and practical point ofistries, bilateral cooperation agencies,:multilat. view, municipal associations are potentiallyeral institutions. private sector organizations' well equipped to contribute to local capacitymake financial resources .available to local or development by: (a) supporting projects withregional governments pursuing prograrnms of externalities benefiting two or more munici-inistitutional strengthening.: Elach source could palities; .(b) promoting projects- with econo-establish the possible uses, eligibility criteria mies of scale, particularly visible in sharingand natching rates for their funds.: personnel, equipment, infrastructure and re-Information on funds can be cent'ralized in one -gional expertise; (c) preparing regional devel-

, : . - ~~~~.... .@ :.t' opment-plans or strengthening- loca institll-national agency which would identify and ad- t p ovise governments on possible. sources consis- Lons by way of collectively training local

managers and streamlining local admiinistra-tenti with their needs, and their conditions. Intin;)exhgngnfraonndee-order for funding to be approved, the applicant tions,g.() exchanging informations and devel-needs to show- a clear indication that the pro- nomnd soca prorlce s fort begoposal has local support. This would involve,for example, a paclo de campramiso with local (Q strengthening the barganing .power. ofbusiness and commnunity organizations, - -municipalities, particularly small ones, for

cofinancing and other. negotiating schemesThe recipient has the freedom- to select thie with central and regional government; (1)providers of support. ad .other contractors. reaching municipalities in subregions that theFunding: imposes the.requirement to present: a intermediate levels find hard to reach.partial and final report relating the use of the .. . -. ... ............. ::..funds and their impact. This report meustbe. -. . - - - . - . ~~~are already making ifmportant contributionsdiscussed locally with the signcrs of the pactoade compromiso and a 'copy- remitd to the to their members. An important element ofrelevant source of funds. On an annual basis, the strategy we are proposing consists of fi-the program would contract out evaluations of nancial incentives-such as grants to pay fora selected group of experiences. start up costs-and conscious efforts to

multiply these and other links between mu-

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Colombia. Local Government Capacity Studv

nicipalities. The F;ederaci6n Colombiana de blueprint. Further detail, delivery mecha-Municipios could play a very important role, nisms, and program components still need tobut it needs to regain its legitimacy among be developed. Furthermore, this approachmembers and build up its own capacity and may not work everywhere in the country andhuman resources. will not address some of the formalized needs

4.22 Local level actors. In this approach, for local management, such as regulatoryframeworks and development of careerthe m-any civil society actors-public and

- .. ~~~~~~~schemes for professionals. We offer theseprivate, national, regional and local-becomethe agents of change. The heart of the strat- concepts and ideas as an input for discussiontheagyepose here isctohange.Thehea the itcen- and consideration by all the relevant partiesegy proposed here is to enhance the incen- to this enterprise. The World Bank is ready

tives for local governments to find and adaptto support them.

innovations they need, to improve the infor-mation officials and voters alike need tomake informed decisions, and to let voter Three areas are emphasized in the proposal:taxpayers at the polls, as well as through (i) development of civil society; (ii) consoli-other modes of participation, voice their ap- dation of the institutional structure of civilproval or disapproval for local performance. society: and (iii) political participation. SeeSuch participatory forms of local governance Presidencia de la Republica and DNPconstitute one of the key conditions for the (1994), pp. 208-211.sustainability of local capacitv development 2* v ~~~~~~~~~~The office of the vice-president can play anefforts. Municipal watchdog groups-local important role initiating these campaigns.or regional NGOs or national organiza- 3 El Salto Social, proposes to implement thetions-could be mobilized to develop per- Fonclo de Participacion Ciudadana, thatformance indicators, spotlight and reward w* ~~~~~~~~would cofinance research and action proj-outstanding performance, and publish results ects related to participation bv universities,nationally and locally. National authorities NGOs and private organizations.would move into action as a last resort sanc- Stion against the most egregious malfeasance.

S El Sallo Social proposes to establish incen-

Concluding remarks tives to stimulate the consolidation of NGOsoperating in rural areas. This proposal is

4.23 The study shows that capacity can consistent with the proposed approach.be home groNvn without outside help, in both 6 Many of these ideas are already in practicesmall places and large. Though the country in Colombia but with limited coverage. Forhas more than a 1000 municipalities, the example, IDEA has a toll-free telephonesmall sample reviewed in this studv suggests consultation service for mayors in Antio-that size is not necessarily' a predictor of ca- quia. PROCOMUN has been developing apacity. We see skillful innovations in the data bank on best practices. PDI providedvery small and serious shortcomings in the advisory services on recruitment and con-very large. The important factor is determi- tracts.nation at the local level, and recent reforms Among others. DNP, several sectoral minis-appear to be effective in building political tries. the soon to be created Ministry of thewill. Nevertheless, economies of thresholds, Interior and the office of the vice-president.if not of scale, need to be taken into account 8 See Rojas (1994).when considering the specifics of a capacitydevelopment program.

4.24 This approach to capacity develop-ment is sketched out as a concept, not a

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Annex 1: The municipios studied

The sixteen municipios for the study were The in-depth case studies do not pretend toselected based on the criteria that they had be statistically representative. In that sense,interesting experiences on performance and the results obtained refer exclusively to thestrengthening of the management capacity municipios studied. However, these resultswithin the decentralization process. By this, provide indicators of general situations.it was understood that efforts were made to: Since there is no information or statistics that(a) improve performance in terms of goods allow a cssifocation of stnicip s sue-

and ervies povidd tothe ommuity;and allow a classification of municipios as suc-and sevicesprovied tothe cmmuniy; an cessful or failures In terms of capacity devel-

(b) increase institutional capacity to complywith thenewresonsibiliti. twaopment, It was decided to use the knowledge

of experts linked to the field of local devel-stood that those experiences would involve e dentify interestiboth successful and failed efforts.

Additionally, it was.consldcred necessary to After a first round of consultations with theAdditionally it was considered necesato experts, a set of municipalities that were

mentioned in several occasions was identi-sizes and from diverse regions of the country, fied. To increase the number of municipioswith the assumption that these variables with a population of less than 50.000, a sec-might affect performance and institutional o rond round of consultations took place focus-capacity. It was declded to cover a group of ing on the departments to which the original16 municipios distributed as follows: municipalities belonged to.

POPULATION MUNICIPIOS After the second round of consultations with

More than 100,000 the experts and according with the frequencybut less than 400,000 2 with which they were mentioned, 50 munici-

From 50,000 to 100,000 2 palities were identified. Finally, from theFrom 50,000 to 100,000 latter group and taking into account repeated

From 20,000 to 50,000 6 references by the experts and an adequate

Less than 20,000 6 regional distribution, the final 16 municipioswere selected. The following table providessome basic information on them.

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Municipio ] Department 1 Population | % Ruralin 1993* in 1993

Puerto Narinio Amazonas 2,904 62.3

Cucunuba Cundinamarca 7,715 87.5

Zapatoca Santander 10,263 40.8

Belalcazar Caldas 13,543 59.2

Versalles Valle 11,028 59.6

La Mesa Cundinamarca 19,132 56.6

San Juan Nepomuceno Bolivar 30,514 41.8

Pensilvania Caldas 21,176 59.3

Libano Tolima 34,813 30.1

Puerto Tejada Cauca 35,371 85.1

Jamundi Valle 42,836 30.6

Piedecuesta Santander 60,351 17.3

Zipaquird Cundinamarca 70,620 12.0

Ipiales Narifio 70,965 12.5

Valledupar Cesar 235,993 11.3

Manizales Caldas 367,635 7.2

*These correspond to preliminary information from the 1993 census, which is likely to change. Several mu-nicipios have challenged the results from the census. For example Pensilvania, where projected population fig-tires differ from census data by approximately 10,000 inhabitants.

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Annex 2: The basic norms ruling decentralization

Political Issues bilities among government levels, principally

Legislative Act No. I of 1986 - Establishes in water, health and education.the popular election of mayors. Law 42 of 1993 - Establishes rules for fiscal

Law 11 of 1986: Basic Statute of the Mu- control of public administrations at all levelsnicipal Administration - To modernize local of government.administration and promote community par- Law 80 of 1993 - Establishes rules for publicticipation in management of local affairs. sector's contracting procedures.

Law 42 of 1989 - Establishes rules for local Decree 1542 of 1991 - Creates the Nationalpopular consultation processes. Support System of Institutional Development

Law 131 of 1994 - Bylaws for the program- of Municipalities.matic vote. Law 136 of 1994 - Establishes organizational

matic~ ~~~~~~~~~~~om votr Iuiia aristtionsLaw 134 of 1994 - Establishes rules for norms for municipal administrations.means for community participation. Decree 2626 of 1994 - Compiles norms in

force related to municipalities.Fiscal Issues Law 152 of 1994: Planning - Establishes

Law 14 of 1983 - Strengthens the fiscal units rules for the constitutional obligation of theof territorial entities. central, departmental and local governments

Law 12 of 1986 - Increases national transfers to formulate development plans.from VAT to municipalities. Sectoral

Law 60 of 1993 - Defines competencies and Agriculture - Law 101 of 1993; Law 160 ofresponsibilities among central, departmental 1994and local governments, especially on socialand fiscal aspects. It also establishes the Fducation - Law 24 of 1988; Law 29 ofshare of national current revenues to be 1989; Law 115 of 1993.transferred to municipalities. Environment - Law 99 of 1993.

Law 141 of 1994 - Rules the distribution of Health - Law 10 of 1990; Law 100 of 1993;oil royalties among levels of government. Decree 1216 of 1989; Decree 1862 of 1990.

Administrative Issues Housing - Law 3 of 1991.

Decree 1222 of 1986 - Issues the Depart- Putblic Services - Law 142 of 1994.mental Regime Code. Transport - Laws 105 and 70 of 1993; De-

Decree 1333 of 1986 - lssues the Municipal cree 80 of 1987; Decree 2444 of 1989.Rcgime Code. Urban Development - Law 9 of 1989.

Law 3 of 1986 - Establishes functions tomodernize departmental administration.

Decree 77 of 1987: Basic Statute of Decen-tralization - Allocates functional responsi-

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Annex 3: A conceptual framework to analyze capacity

This annex presents the basic conceptual these choices, local governments can followframework used in the case studies that different routes or criteria, which will reflectconstitute the basis of this report. more or less accurately community prefer-

ences.A simple model of the local govern- Local fiscal choice also involves the overallment level of public goods and services to be pro-

We begin with a simple and informal model vided. For a given local tax base and the ex-of local governments, seen as agents respon- isting inter-governmental assignment of tax-sible for certain activities ("provision of ing authority and revenue-sharing arrange-public goods and services") that affect the ments, there exists a trade-off betveen thecommunity's welfare. Decisions regarding provision of public and private goods. Com-those activities ("what, how and to whom") munities can choose different combinationsare shaped by local and external forces- of local taxation and public spending. Thus,incentives-and based on available eco- the actual position of the PPF is also affectednomic, technical and human resources. In- by local choices. As a result, two communi-centives, in this context, include all positive ties with identical endowments and produc-and negative rewards and penalties-not just tion conditions could face a different PPFfinancial-that individuals (or governments) depending on their choice of taxation level.3expect from their actions given the political, Each municipality will face a different fron-phvsical and social rules under which theyphysical and social rules under which they tier depending on its resources-richer mu-operate. nicipalities facing a wider set. Depending on

At any point in time, financial resources and factors such as geographic location andlocal production conditions determine the population density, municipalities may alsofeasible set of local government output face different opportunities. For example, the(defined in terms of units of public goods and cost of certain services is likely to be higherservices such as kilometers of paved roads, in sparsely populated municipalities thatnumber of people connected to piped water would, as a result, face a different productionor number of children completing primary possibility frontier than more densely popu-school), which we characterize as the pro- lated ones.duction possibility frontier (PPF). As it is Similarly, the type of responsibilities beingconventionally understood, the PPF indicates considered will vary between municipali-the trade-off faced by the local government ties--road construction will have a very dif-when choosing the combination of publicgoods and services it will provide.2 In making

souces available for these actitivies. In theSee Ostrom and others (1993). case of two goods, the PPF would be repre-See Ostrom and others (1993). sented as a curve indicating the feasible

The PPF follows conventional micro- combination of the two goods the local gov-economic concepts. For each good or serv- ernment can achieve if it is efficient in theice the local government faces a production use of resources.function which indicates output as a func- 3 Another way of formalizing this is by in-tion of the resources used, using efficient cluding both public and private goods in themethods. The local government faces a .rdionb public andieg ibudget constraint which determines the re- production possiblity frontier.

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ferent meaning in a large urban area than in a achievable social indifference curve.4 In othersmall and remote rural municipality. Agricul- words, efficiency implies that no reallocationtural extension is unlikely to be an important of resources from one activity to another canactivity in mostly urban municipalities. In the improve local social welfare.case studies, we concentrate our attention on This definition of allocative efficiency under-three sectors-education, water and roads.

scores the importance of the process of localpreference formation. In particular, underthis approach, achieving poverty alleviation

This simple framework supplies the main goals requires that the interests and prefer-elements for an assessment of the perform- ences of the poor be adequately representedance of local governments concerning their in public choices. Formally, it implies thatrole in the provision of public goods and the preferences of the poor are given a mini-services. In all cases, performance must be mum weight in the local social welfare func-considered relative to the municipality's fi- tion.nancial resources. In other words, we are In a multi-tiered system of goverment-interested in determining whether the munici-pality is doing as well as possible, consider- not fully autonomous and operate undering the funds to which it has access and the ndt fromcer audhopte Thesmandates from central authorities. Theselocal production conditions. mandates could imply, for example, the pro-

Production efficiency requires the govern- vision of minimum service levels. In princi-ment to be located on its specific PPF and ple, and assuming municipalities have accessimplies that public goods or services are pro- to the required financial resources, local gov-duced and delivered at lowest unit costs. To emient performance could also be judged onput it in different terms, production effi- the basis of those mandates.ciency requires that no increase in the output In some cases the satisfaction of centrallyof a specific good or service be possible determined minimum standards or the sec-without a corresponding reduction in the out- toral allocation of resources mandated by theput of another sector or activity. It also im- law, could be inconsistent with allocativeplies that the revenue mobilization effort to efficiency (as defined above). For example, itfinance these activities is effectively done. is conceivable that certain communities pre-Production efficiency also requires local gov- fer a combination of lower taxes and lessernments to adapt to changing circumstances public expenditure and will correspondinglyand innovate their practices in order to ex- be unwilling to meet the standards deter-pand, over time, the range of alternatives mined bv the center. In those cases, it isopen to them. through the use of financial incentives that

Allocative efficiency requires the mix of the center can more effectively affect localpublic goods and services-and their deliv- choices. For example, the central govern-ery modes-to be consistent with community ment's use of matching grants for specificpreferences. In formal terms, this condition goods or services provides the incentives forimplies that the government maximizes local the local government to change the composi-social welfare-that is, positions itself on thepoint where the PPF is tangent to the highest

4 The social indifference curve shows thecombination of goods and services whichgenerate a certain level of social utility.

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tion of its output in their favor.5 It is also flexible and innovative municipalities frompossible that minimum spending allocation rigid andtradition-boundones.rules be inconsistent with local felt needs.

In the case studies four main criteria of allo- Local government capacitycative efficiency are considered: (i) the exis- Capacity, in this context, should be under-tence of flagrant6 inter-sectoral distortions in stood as an enabling factor: it is the effectivethe allocation of public resource, (ii) the existence, at the local level, of the tools thatconsistency of intra-sectoral-for example, make possible for the local government toprimary vs. secondary education- allocation perform successfully. We categorize thoseof public funds with local felt needs, (iii) the tools-referred as the dimensions of localdegree to which the more distant rural com- capacity-as labor, capital and technologymunities in the municipality are served by (see below). We say there is a capacitypublic services compared with more centrally problem when a municipality is unable tolocated urban areas, and (iv) the extent to achieve its performance goals even though itwhich there is a bias against the poor in the has access to the necessary financial re-allocation of public resources. sources. Such inability will be associated

The notion of performance we are proposing with weaknesses along one or more dimen-has a clear dynamic sense to it: a good per- sions.former is one that has made significant prog- In this framework, capacity should be as-ress. Thus the case studies document the re- sessed in relation to the goals of productioncent past as a contextual basis for under- and allocative efficiency:standing success and failure from each of the * Capacity for production efficiency ismajor informants. The purpose of such an manifested in the presence of aexercise is to distinguish institutionally performance-oriented government. It

requires that the government have the toolsto optimize the use of resources in theproduction or provision process. In this

Formally, a matching grant has both an context, the analysis of local capacityincome and price effect. The grant relaxes involves the identification of local andthe budget constraint (shifting the PPF out). external factors that discourage or impedeIt also lowers the relative cost of the service (encourage or facilitate) goverments fromor good being supported which. under nor- being positioned on the PPF, and slowmal demand conditions, should experience donn (accelerate) its progress over time.an increase in its output levels.don(cera)itpogssvrtm.

6 Having the tools to mobilize resources (forThe Lev de Coinpetencias v Recursos es- example, through a more efficient taxtablishes broad guidelines for the intersec- collection system), would result in a widertoral allocation of funds originated in p bilty set. In that sense, one could addtransfers. In that sense, in most munici- possb spalities, such allocation will probably not be to the analysis the concept of "capacity toa good indicator of efficiency. However, mobilize resources-different to thesignificant allocative inefficiencies can be traditional concepts of fiscal capacity andpresent when the sectoral composition of lo- fiscal effort-referring to the ability tocal public expenditures is notably biased maximize revenue collection for giventowards activities that do not correspond to fiscal parameters.felt needs. Only such major biases are * Capacity for allocative efficiency islikely to be good indicators in the Colom- manifested in the presence of a customer-bian context.

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Colombia: Local Government Capacit.y Study

onented government. In this context, local the indigenous, unstructured understandingcapacity implies the existence and adequate of local circumstances-and scientific andfunctioning of mechanisms through which technical knowledge.8 A focus on formalthe community can voice demands, training as a determinant of skills would em-channels by which authorities can translate phasize the second at the expense of the firstthose demands into actions and instruments type of knowledge.for government accountability. The Conventionally, staff quality tends to bepresumption is that failure in any of these ovnoalystfqulytedtobelements would greatly dminsh the associated with capacity for production effi-capacity of local goveaments to achieve ciency-for example, better "technicians"the allocation of pubve resources dace make the local government more capable tomaximizes lofal welfare s expand the provision of public services.

However, this dimension of local capacityWe analyze local capacity in three main di- could also be important for the achievementmensions. Each dimension constitutes a set of allocative efficiency which might requireof tools that positions the government to specific skills and different motivations forachieve productive and allocative efficiency. public sector employees.We have labeled them as the conventional Capital. Most public sector activities requirefactors in a production function-labor, the use of capital in addition to labor. Highcapital and technology. This choice of words ty labor could bo ineffecti lohen,is meant to reflect the notion that local ca- quality labor could become ineffective when,is mant o rflec th noton tat ocalca- for example, working in run-dowvn buildingspacity is, largely, endogenously deter- or without access to the necessary equip-mined-the outcome of "Investment" dcci- ment. Similarly, attempts at reaching out tosions in these dimensions. distant communities-an important element

Labor. A key dimension of local government for the achievement of allocative efficiency-capacity is the quality of its staff, which we could be frustrated by lack of transportview as a function of their skills and knowledge equipment. While labor should be seen as theas well as of the way such skills are utilized "human dimension" of local capacity, capitalwithin the local bureaucratic structure,7 to can be regarded as the "physical dimension".which we will refer as staff professionalization. Thn i t d of local ca-It is the combination of skills and professionali- c c o

pacitv consists of the governument's mternalzation that deterim' e staff quality. While in. zation thadtef . W e iorgamzation and management style. The tech-manv cases inadequate or insufficient skills nological dimension mcludes aspects related to:can explain weak capacity, in other occa- (i) the structure and the distribution of functionssions the limiting factor is their ineffective and responslbilities within the organization, (ni)use. Thus, civil service issues-personnelsonpolicies and reward systems-are important the management, planmg, defcsion-ma, ng andfactors to be considered in any analysis of fonratn gathin procion and ,ist .. '-local capacltv. Also, skills can be seen as the .combination of time and space informationtion.

Along these dimensions, local government ca-pacity for production efficiency is expressed in

7 Formally, the introduction of the distinction the existence of an organization in which re-between skills and their utilization is paral- sponsibiities are matehed with implementnglel to that between "labor units" and"effective labor units" as production factorstypical of new growth theories. 8 See Ostrom and others (1993).

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bodies, tasks and output are clearly defined, Capacity, measured along the three dimensions,management techniques are effective, and in- does not need to reside in the public sector toformation flows as needed. Local government contribute to the achievement of a high perform-capacity for allocative efficiency requires the ing local government. Indeed, an effective localdevelopment of a diametrically different type of government should be able to use the capacityorganization to that prevailing under a highly that exists outside the public sector-in the pri-centralized system of governance-one with vate sector, among NGOs, and within themore horizontal linkages, and fewer or different community at large. For example, a privatevertical ones. Local capacity, thus, implies the truck can be rented to reach a remote commu-existence of an organization less inward-looking nity whenever no such equipment is availableand more open to the outside world, particularly within the corresponding public agency. Theat the local level. In addition, to the extent that lack of a specific skill within the public sectorindividual and group preferences are heteroge- can be compensated by involving an NGO withneous and conflicting demands exist at the local the relevant technical expertise. In all cases,level, an efficient and fair allocation of public however, there is a minimunm element of capac-resources requires an organization prepared to ity in the public sector that is required-sub-mediate such conflicts and generate social con- contracting, for example, requires the skills tosensus. draft contracts and choose among bidders.

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Annex 4: Performance indicators in the water sector

Status of the sector Quality Continuity UFW* Operative Ratio Collection rate

Puerto Narifio Municipio Does not satisfy norms 3 hours n.a. 609% 23%Cucunuba Municipio Does not satisfy norms 12-24 hours n.a. 179% n.a.Zapatoca Municipio Satisfies norms 24 hours n.a. 108% 96%Belalcazar Departmental enterprise Satisfies norms 24 hours n.a. 128% 81%

Versalles Municipio Does not satisfy norms 2 hours n.a. n.a. n.a.La Mesa Municipio Satisfies norms 21-24 hours 28% 65% 91%Jamundi Departmental enterprise Satisfies norms 24 hours 32% 60% 97%

Libano Municipal enterprise Satisfies norms 22 hours n.a. 88% n.a.Pensilvania Municipal enterprise Does not satisfy norms 24 hours n.a. 107% 70%

San Juan Nepomuceno Municipal enterprise Satisfies norms 8-14 hours 25% 189% 69%Puerto Tejada Municipal enterprise Does not satisfy norms 6 hours n.a. n.a. 67%.Piedecuesta Bucaramanga's enterprise Satisfies norms 24 hours 37% 60% 100%

Zipaquira Municipal enterprise Satisfies norms 12 hours n.a. 47% n.a.

Ipiales Municipal enterprise Satisfies norms 24 hours 46% 84% n.aValledupar Municipal enterprise Satisfies norms 24 hours 44% 38% 94%

Manizales Municipal enterprise Satisfies norms 24 hours 31% 31% 89%

*UFW: Unaccounted for water.

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Annex 5: Measuring performance

This annex presents the results of a prelimi- Group I (municipalities of more thannarv attempt to develop a simple system by 100,000 inhabitants) shows the highestwhich local government performance is scores. This is due to the fact that the twomeasured.' Each municipio is given three largest municipalities in our sample are veryscores for each sector (i.e. water, education high performers. This, however, should notand roads) corresponding to notions of pro- be interpreted as indicating the existence of aduction efficiencv, intrasectoral and intersec- positive correlation between size and per-toral balance and distributive performance.2 formance. Once this group is separated fromThe scores for sectoral balance and distribu- the rest, the apparent correlation disappearstive perfornance are averaged to generate as group 4 has higher scores than group 3. Inone score for allocative efficiency. fact, there is a negative correlation between

Municipios were graded on a scale of 0 to 2 population and performance (correlation co-(0 meaning no progress since decentraliza- efficient of -4 percent).tion, I some progress, and 2 significant prog- Another fact that deserves to be mentioned isress). The following table presents the stan- the consistency between different dimensionsdardized scores measured on a scale of I to of performance. Those municipalities that100, with muiniciplos grouped by size, and a score high under production efficiency do sosimple average for the sixteen municipios. also under allocative efficiency. The correla-

The first fact to be noticed is that average tion between the two measures is 73 percent.scores are quite high, indicating there was On average, it is not easy to find a sectoralsignificant progress according to these crite- pattern in performance. Indeed, the threeria. The average performance score was sectors show similar scores. However, when74.35. This is the equivalent to a raw score the results are analyzed by population group,of almost nine points (which, for example, a pattern emerges. Among smaller munici-would obtain for a municipality that made palities (groups 3 and 4) water and roadssignificant progress in allocative efficiency tend to show relatively higher scores thanand some progress in production efficiency in education. This is reversed for group 2the three sectors). (municipalities in the 50-100,000 population

The average score was higher for allocative range).than for production efficiency (77.9 and 70.8 One possible interpretation would indicaterespectively). This result confirms conven- these results reflect different priorities. Thetional perceptions that decentralization is very small municipalities tend to emphasizemore likelv to generate gains in allocation water which, in most cases, constitutes thethan in production efficiency. However, these main problem they are currently experienc-results seem to indicate that even the latter ing. This is the first thing elected mayors do.are quite large. Larger municipalities, already have better

coverage in water (and most likely roads)and, as a result, education becomes a focalpoint for municipal action.

See Acevedo and Fiszbein (1995).

2 The latter is understood as attention givenby the local administration to rural areas ofthe municipio and to the poor.

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Annex 6: Opinion Surveys

Opinion surveys were conducted in the four population by socio-economic strata. Thelargest municipios in the sample'. The sur- sample size was 600 in Manizales, 500 inveys used a representative sample of the adult Valledupar, and 400 in Ipiales and Zipaquira.

I Manizales | Valledupar | Ipiales j Zipaquira

Who should be in charge of water?Municipio 62% 58% 41% 47%Department 14% 15% 9% 7%National government 5% 9% 10% 5%Private sector 18% 17% 35% 39%

Who should be in charge of education?Municipio 52% 33% 34% 40%Department 21% 20% 11% 21%National government 16% 34% 36% 19%Private sector 11% 11% 15% 17%

Who should be in charge of roads?Municipio 53% 46% 39% 39%Department 13% 8% 10% 13%National government 16% 12% 23% 13%Private sector 18% 33% 24% 34%

Who do you trust more?Municipio 92% 94% 73% 57%National government 8% 6% 27% 43%

Believes local government makes ef-forts to do projects at least cost:

.___________________________ 55% 71% 39% 44%Municipio cdmpletes projects?

: | . .. . . 89% 87% 61% 41%Is i.villing to contribute to municipalprojects:

with labor 63% 64% 67% 65%through higher taxes 14% 2% 4% 4%

The surveys were coducted during the secondhalf of the month of September of 1994 bySistemas Especializados de Informaci6n,SA.

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Annex 7: A profile of Colombian mayors

The following information describes the 20-50,000 is 41, and between 100-500,000 ischaracteristics and background of Colombian 42.mavors. The source is a survey conducted by More than half (53 percent) the mayorsthe French Technical Cooperation Agency worked in the private sector immediately be-and the Federaci6n Colombiana de Mu- fore taking office. However, more than 80nicipios.' Forms were submitted to all mu- perent offie Hor, moreviousnicipalities during the first quarter of 1994. percent of the mayors had some previousApproximately 40 percent of all mayors re- experience in the public sector. One in foursponded the survey. Whenever possible, we mayors hold that office before.compare this information with the profile of An interesting finding of the survey is thethe mayors of the sixteen municipios covered negative correlation between the municipal-in this study. ity's size and the number of trips the mayor

makes to BogotA. Mayors in municipalitiesThe first thing to notice is that most mavors ofkes th 10,000 Make an averageoare males: 92 percent of respondents. In that of less than 10,000 make an average of 5sense, the municipios in our sample were trips a year, in those between 20-50,000 3.3sense,~ ~ ~ ~ ~ ~ ~~~ris and inllpo thos betee sample00 wee ..8representative: only one of the sixteen mav- trips, and In those between 50-100,000 1.8ors (i.e. Puerto Tejada) was female. trips. Mayors from the largest municipalities,

ors (i.e. Puero Tejad)wsfemale.however, make more trips (those betweenIn terms of their education level, 87 percent 100-500,000 make 5.4 trips). This informa-of the mayors in the survey have at least section confirms a finding of the case studies,ondary education and 52 percent a university suggesting the importance of direct lobbyingdegree. The level of education is lower for by mavors to obtain resources from nationalmayors in smaller municipalities. For exam- agencies.ple, 18 percent of mayors in municipalities Interestingly, only 9 percent of the mayorswith population lowver than 10,000 have less . .witha population lwerathan1,0 whavelessa identified "capacity" as the first obstacle forthan secondary education, while no mayor their administration. The larger the munici-falls in that category in municipalities of pality the more important this obstacle was.

more thanl50,000. In municipalities of less than 10,000 onlv 5

Smaller municipalities have younger mayors. percent of the mayors identified capacity as aAverage age for mayors of municipalities of problem, while the same percentage was 33less than 10,000 inhabitants is 38, between percent among the largest ones.

We wish to thank Silvia Sommaruga for hersupport in having access to this data andpreparing the information for our analysis.

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Colombia: Local Government Capacity Studv

Annex 8: Municipal employment in Colombia

The survey used in Annex 7 also provides this would be consistent with the findings ofinformation on the level and composition of the case studies, which suggest that mu-municipal employment. The following table nicipios in this range seem to experience dif-summarizes some of the key indicators. The ficulties in establishing an effective munici-size of local administrations decreases with pal organization. Finally, the ratio of profes-the municipality's size, providing some em- sionals among all municipal emplovees fallspirical support to the view that economies of with municipal size. This again, is a reflec-scale may exist. In that respect, municipios tion of certain economies of scale: there is ain the third group (population between 20- minimum number of professionals a mu-50,000) seem to have a higher ratio of em- nicipio needs. That number does not increaseplovees to population. This could be an indi- proportionally with size.cator of possible labor redundancies. In part,

Municipio Municipal employees Employees per Average Number ofsize per thousand inhabitants | each professional | professionals

less than 10,000 3.0 11 2

10-20,000 2.7 17 4

20-50.000 3.1 18 8

50-100,000 2.4 18 19

100-500,000 2.3 21 47

500,000 or more 1.8 24 922

Average 2.8 16 17

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