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Decentralization & Local Development Support ProgramThe Republic of Yemen

The Pilot (2003-2006)•

Findings•

Recommended Reforms The National Decentralization Strategy

& The National Program

Ministry of Local AdministrationThe Republic of Yemen

January, 2007

Yemen’s System of Local Administration

Legal & Regulatory Framework:• Local Authority Law # 4, 2000 (LAL)• Republican Decree 269, 2000 – Executive Regulations of the LAL• Republican Decree 23, 2001 – Organizational By-Laws, MOLA• Republican Decree 24, 2001 – Financial By-Laws of the Local Authority• Republican Decree 265, 2001 – Organizational By-Laws of the

Governorate & District Local Authorities

Structure of the Local Authority System:• Two levels of local authority – Governorate & District• 22 Governorates & 333 Districts• The Local Authority at each level consists of:

• The elected council• The administrative Diwan Departments • The Executive Organs – Sector offices

• Appointed heads (Governors & District Directors) of the Local Councils and Local Authorities

• 425 Elected Council members @ the Governorate level • 6902 Elected Council members @ the District level

DLDSP, November 2006

Levels of Financing of Yemen’s System of Local Administration

Finance: Levels of the central subsidy – (Capital & Recurrent)

Finance: Performance of the Local Revenue System

Finance: Distribution of the National Budget Share of Local Authorities (Capital & Recurrent)

Level

CapitalRecurrent

2002 2003 2004 2005Type

CentralLocal

2002

TotalLocal

Type 2002

2003 2004 2005

2003 2004 2005

SharedZaka

Total

Total $3,740,700,000$3,196,120,150$ 722,840,000

$ 38,350,850$ 27,830,200$ 21,690,000 $ 33,570,540$ 28,000,800

$ 109,910,350$ 612,930,650

$ 722,840,000

$ 30,420,125 $ 33,636,170 $ 37,900,995$ 20,099,430 $ 31,525,930

$ 10,999,685 $ 11,896,360 $ 10,910,925$ 5,915,970$ 23,815,090 $ 27,095,460

$ 93,065,100$ 75,706,200 $ 106,199,130 $ 118,688,700

$ 689,156,790

$ 98,210,970

$ 590,945,820$ 563,950,190$ 82,430,210

$ 646,380,400

Gen. Shared

$ 850,050,700

$ 718,102,192$ 131,948,507


$4,157,827,995$3,307,777,295$ 850,050,700

D

L

D

S

P

Local Authority System

Governorate

MOLA

District

Community

Decentralization & Local Development Support Program Phase 1 of Pilot: 2003-2004

Activation of Technical Secretariat

Activation of a DistrictFacilitation Team (DFT)

Introduction of Public Expenditure Management Procedures & Capacity& Activation of the Diwan

Technical Secretariat

Support to Pilot LAs

Improved allocation of public resources for service

delivery & enhanced efficiency of utilization

DFT

Technical Assistanceto Pilot Districts

Budget Support

2 Governorates

6 Districts


Decentralization & Local Development Support Program Donor Contribution: Phase 1 of Pilot: 2003-2004

D

L

D

S

P


Governorate

MOLA

District

Community

Activation of Technical Secretariat

Activation of a DistrictFacilitation Team (DFT)

Introduction of Public Expenditure Management Capacity& Activation of the Diwan

Technical Secretariat

Support to Pilot LAs

Improved allocation of public resources for service delivery

& enhanced efficiency of utilization

DFT

Technical Assistance

to Pilot Districts

Budget Support

2 Governorates

6 Districts


UNDP/UNCDF: Actions funded• Program Design,

management & TechnicalGuidance

• Policy Research• Development of Statutory PEM procedures

• Piloting of procedures• Budget Support

Social Fund for Development:Actions Funded• Development of Statutory

PEM procedures• Piloting of Procedures• Budget Support

The Government of Italy:Actions Funded• Policy Research• Piloting of Procedures• Budget Support

$100,000/ Districts

Focus of the pilot capacity building program:The Public Expenditure Cycle – Planning & Budgeting


P

DistrictDirector

Administrative Diwan

Local Council General Secretary

LC Committees

Executive Organs

Authorities

Finance ExecutiveOffice

EW

PWAIHEA F

Communities

Governorate Level

District Level

Central LevelExecutive Organs

PWAIHEPrimary Branches

F CS COCA

Current Institutional Structure & Relations within the District Local Authority

Governor


MOLA

GLA

DLA

MOF MOP MCS

Primary Ministries Sector Ministries Authorities

De-ConcentratedLimited Horizontal Accountability Delegated - Devolved De-concentrated

Bypassing

Communities

Limited

Limited

COCA

Local Authority System – Current: Decentralization of Primary Functions


MOLA

GLA

DLA

MOE MOH MOAI

MOPW Other


Delegated - Devolved De-concentratedBypassing

Communities

Limited Oversight by Elected CouncilOnly Through Executive Office

Local Authority System – Current: Decentralization of Sectors/Service DeliveryDelegated/Devolved Functions

Limited Oversight by Elected CouncilOnly Through Executive Office


MOLA

GLA

DLA

Water Elect-ricity


De-concentratedBypassing

Communities

No Formal Oversight or CoordinationOnly through the inclusion of the Governor in Board of Directors

Local Authority System – Current: Decentralization of Sectors/Service DeliveryDe-concentrated Entities

No Formal Oversight or CoordinationOnly through the inclusion of the Governor in Board of Directors


MOLA

GLA

DLA

MOF COCA MCS MO

EDMOHP

MOPW

MOAI

MOWE

MOElOther

Communities

MOPIC

Local Authority System – Current: Central Financing to Local Authorities


Local Capital Fund FlowsLocal Recurrent Fund FlowsCentral Recurrent Fund Flows Central Capital Fund Flows

AuthoritiesSector MinistriesPrimary Ministries

Local Authority SystemGLA

Primary Ministries

DLA

MOLASector Ministries Authorities

MOF COCA

MOPIC

MOCS MOE MOH MOA MO

PW Other MOWE MOE

Community

National Funds

SFD PWP

Local Authority System – Current: Intervention Modality adopted by National Funds – Social Fund for Development (SFD)



Primary Ministries

DLA


MOF COCA

MOPIC

MOCS MOE MOH MOA MO

PW Other MOWE MOE

Community

National Funds

SFD PWP

Local Authority System – Current: Intervention Modality adopted by National Funds – Public Works Project (PWP)


MOLA

GLA

DLA

MOF MOP MCS MOE MOH MOA MOPW

MOWE

MOELOther


Communities

COCA

Local Authority SystemCurrent: Modalities of Donor interventions @ the Local Level

DonorDonorDonorDonorDonorDonor

No Formal Coordination with LAOnly through the inclusion of Council members

No Formal Coordination with LAImplementation through a PIU

No Formal Coordination with LAImplementation through limited coordination with EO

No Formal Coordination with MOLAImplementation through an PIU


D

L

D

S

P

GLA 8

Primary Ministries


Decentralization & Local Development Support Program Phase 2 of Pilot: 2005-2007

DLA 48


MOF COCA

MOPIC

MOCS MOE MOH MOA MO

PW Other MOWE MOE

Define Mandates @ Realign Functional Assignments

Community

Institutional Evaluation & Capacity Development

Reconfigure Institutional StructuresDefine Mandate & Functions

Define Mandate, Functions & Structure

Define Mandate, Functions & Structure & Develop Capacity

Enhance PEM & Administrative Capacity

Effective Allocation of Public Resources•Efficient Utilization of Local Revenues•

Improved Services & Local Development

Budget Support


Policy & Regulatory Investigation

Decentralization & Local Development Support Program Actions Funded by Donor Contributions - Phase 2 of Pilot: 2005-2007

D

L

D

S

P

GLA 8

Primary Ministries


DLA 48


Define Mandates @ Realign Functional Assignments

Community

Institutional Evaluation & Capacity DevelopmentOf MOLA

Reconfigure Institutional StructuresDefine Mandate & Functions

Define Mandate, Functions & Structure

Define Mandate, Functions & Structure & Develop Capacity

Enhance PEM & Administrative Capacity

Effective Allocation of Public Resources•

Efficient Utilization of Local Revenues•

Improved Services & Local Development

Budget Support


Policy & Regulatory Investigation

UNDP/UNCDF: 6 districts• Program Design,

management & TechnicalGuidance

• Policy Research/ID• Development of Statutory PEM procedures

• Piloting of procedures• Budget SupportSocial Fund for Development: 8 districts• Development of Statutory

PEM procedures• Piloting of Procedures• Budget & Project Support The Government of Italy: • Policy Research• Piloting of ProceduresUSAID: 8 districts• Institutional Development• Policy Research• Piloting of Procedures• Budget SupportDANIDA: 4 districts• Institutional Development • Policy research• Piloting of Procedures• Budget SupportPublic Works project 20 districts• Piloting of Procedures• Project SupportGovernment of France 2 d• Policy Research, ID & Piloting


Primary Ministries

Decentralization & Local Development Support Program Phase 2 of Pilot: 2005-2007Areas of In-Depth Inquiry:

The Capacity Requirements of the District Local AuthorityObservations of the DLDSP Pilot @ the District level

DLA


MOF COCA

MOPIC

MOCS MOE MOH MOA MO

PW Other MOWE MOE

Community

Public Expenditure & Asset ManagementService Delivery/Local Development



Primary Ministries


Local Finance & Financial Management

DLA


MOF COCA

MOPIC

MOCS MOE MOH MOA MO

PW Other MOWE MOE

Community



Primary Ministries


Sector Decentralization & Functional Assignment

DLA


MOF COCA

MOPIC

MOCS MOE MOH MOA MO

PW Other MOWE MOE

Community



Primary Ministries


Mandate & Institutional Structure of the Ministry of Local Administration

DLA


MOF COCA

MOPIC

MOCS MOE MOH MOA MO

PW Other MOWE MOE

Community


The National Decentralization Strategy For Strengthening the System of Local Authority


Objectives of a Decentralized System of Governance

An Efficient & Effective System of Local Administration• Responsive to Community Needs• Equitable, Accurate & Transparent at Allocating Public

Resources and Effective at Delivering Services and Supporting Economic Growth

• Effectively Manages Natural Resources & Protects Environment

Produces Local Development & Alleviates Poverty through• Improved Quality & Scope of Coverage of Public

Infrastructure and Services • Enhanced Environment for Socioeconomic Development• Safeguarding the Environment & Natural Resources

Contributes to National Development through• Growth in Locally Generated Revenues/Relieving the Center • Expansion in the Scope & Scale of Economic Activity• Efficient Utilization of Public Funds

Decentralized Governance

Local Development

National Development

Improved Services

Economic Development

Reduced Poverty


Goals of the National Decentralization Strategy

Effective/EfficientLocal Authority

System

Local Development

National Development

Poverty Reduction


•Improved Local Infrastructure and Service Delivery

• Local Economic Development• Improved Natural Resource Management

Policy/RegulatoryReforms

The National Decentralization StrategyInstitutional

Structure ReformCapacity

Development• LA LAW• Fiscal Policy• CS Policy • Sector Laws

• MOLA• Governorate LA• District LA

• MOLA• Gov. LA• Dist. LA • Service Delivery

OUTCOMES

OUTPUTS


MANDATES

FUNCTIONS

STRUCTURES

CAPACITIES

FINANCING

Redefine the Mandate of Central Authorities & Local Authorities (Governorates & Districts) Under an Effective System of Decentralized Governance & Delineate their Relationship to One Another

Specify the Functions of Central Ministries, Governorate & Districts Local Authorities which they Must UndertakeIn Order to Fulfill Their Mandates and Clarify Division ofLabor Between them

Introduce Modifications to the Organizational Structure & Procedures of the Governorate & District Local Authorities With the Goal of Enhancing Administrative Efficiency & Maximizing Synchronized Action Among Their Components

Specify the Range of Capacities (Human, Infrastructural/Facilities, Equipment & Tools) that are Critical Prerequisites for Enabling Local Authorities to Carryout their Functions & Fulfill their Mandates Effectively and Efficiently

Introduce Modifications to Local Finance Policies to Ensure the Alignment of Levels of Funding with Administrative & Service Delivery Costs & to Enable the Achievement of National Development Targets & Improve the Local FinancialManagement System to enhance transparency

Areas of Focus of the National Decentralization Strategy


Sector Ministry Min. of Civil ServiceDefines admin. criteria for HR management (inc. recruiting procedures, incentive “packages”), provides technical support on in HR mgt. to LAs

MOFAllocates central funds, provides technical support (financial management), supervises and audits

MOLASupervises LAs, supports LA capacity-building process; facilitates co-ordination between LAs and central authorities; monitors & guides local development

Ministry of Planning

Sets a national framework for LA planning; provides technical support to LAs(planning processes), facilitates co-ordination between the central government and LAs towards implementing national plans and achieving national development targets

Audits LA financial management

COCA

Gove

rnor

ate L

ocal

Auth

ority

Dist

rict L

ocal

Auth

ority

Cent

ralA

utho

rities

Com

mun

ities

Governorate Local Council

Diwan

Executive Organ/Service Unit

Sets the strategic direction of governorate-level policies/programmes, identifies priorities, ensures adequate integration of public interventions at the governorate level, promotes CS participation, supervises, controls

Provides administrative support to the GLC, EOs and other departments or units of the GLA. e.g. governorate-level strategic planning, financial & HR management, budgeting.

Guides local development in adherence to national development targets. Promotes the sustainable development of the Governorate, delivers services as specified in the sector-specific functional assignments and/or coordinates policy implementation at the Governorate level; provides technical support to District LAs; implements key projects/programmes.

Implements sector-specific policies, programmes & projects at the governorate level according to the defined functional assignments and in support of national development objectives ; ensures that service delivery adheres to national criteria; provides sector-specific technical support to Districts; facilitates community participation; provides technical feedback on the effectiveness of national policies

District Local Council

Diwan

Promotes the sustainable development of the district and its different localities; delivers service as specified in the sector-specific functional assignments and/or identifies community needs and priorities, monitors and evaluates service delivery at the local level

Sets the strategic direction for local development guided by national development objectives and the needs and priorities of its population, identifies local priorities, ensures adequate community participation, supervises, controls.Provides administrative support to the DLC and to EOs as well as other EOs and service units). e.g. HR management, financial management, planning & budgeting, implementation of the local investment programme– procurement, supervision.

Implements education policies & programmes at the local level; ensures appropriate management at local schools; identify local coverage needs; supervises school performance; facilitates community participation; provides technical feedback on national educ. policies

CBOsParticipate in the integrated planning process, as well as on the implementation of relevant local projects and programmes; monitor and evaluate service delivery.

Sets national policies, and sector development strategy; drafts regulations & defines service criteria; provides technical support & trains LAs; monitors & evaluates; and implements key national programmes & projects

Executive Organ/Service Unit

Mandates, Functions and Key Institutions: An overview


Ministry of Education

Sets policies, regulations & service criteria; provides technical support, trains; monitors & evaluates and implements key national programmes& projects

Gove

rnor

ate L

evel

Dist

rict L

evel

Cent

ralL

evel

Educ

. Es

tabl

ishm

ents

Decentralizing Education: A Delegation Decentralizing Education: A Delegation –– Devolution Model An outline of the main Devolution Model An outline of the main institutional arrangements (Proposal institutional arrangements (Proposal –– Under discussion)Under discussion)


Diwan

Education EO


Provides administrative support to the GLC and Education EO (as well as other EOs and service units ). e.g. financial & HR management, planning & budgeting.

Coordinates education policy implementation at the Governorate level; ensures that service delivery adheres to national criteria, provides technical support to District LAs; implements key projects/programmes.

Implements Governorate-level education policies, programmes; provides technical support to Districts; facilitates community participation; provides technical feedback on the effectiveness of national policies

District Local Council

Diwan

Education EO

Sets the strategic direction for local development, identifies local priorities, ensures adequate community participation, supervises, controls.

Provides administrative support to the DLC and to the Education EO (as well as other EOs and service units). e.g. HR management, financial management, planning & budgeting, implementation of the local investment programme– procurement, supervision.

Implements education policies & programmes at the local level; ensures appropriate management of local schools; identifies local coverage needs; supervises school performance; facilitates community participation; provides technical feedback on national educ. policies

Delivers service at the local level taking into consideration national policies, strategies and criteria

Educational establishments

Parents councils

Deliver the service according to national standards and criteria

Participate in schools’ decision-making processes; supervise schools performance and effectiveness of teaching-learning cycle

Gove

rnor

ate L

ADi

stric

t LA


Gove

rnor

ate l

evel

Dist

rict l

evel

Cent

rall

evel

Proj

ects

Decentralizing Electricity: A De-Concentration- (proposal – under discussion)



Provides administrative support to the GLC and Technical Unit/Department (as well as other EOs and service units ). e.g. financial & HR management, planning & budgeting.

Identifies and/or prepares project proposals to ensure better service provision at the gov. level (proposals submitted to deconcentrated branches of Electricity Authorities); provides technical support to Districts; monitors and supervises service delivery and project implementation; coordination

Sets the strategic direction for local development, identifies local priorities, ensures adequate community participation, supervises & controls the performance of the Diwan Dpts., the EOsand technical units.

Provides administrative support to the DLC and to the Technical Unit/Department (as well as other EOs and service units). e.g. HR management, financial management, planning & budgeting, implementation of the local investment programme– procurement, supervision.

Identifies needs at the local level and informs relevant authorities; provides technical support and/or co-ordination for basic maintenance, monitors and evaluates, collects local data (GIS), promotes higher levels of awareness on sustainable energy consumption

Participate in project execution on the basis of contractual arrangements

PEC(National grid system)

Rural Electrification(Off-grid systems)

PEC Projects

Defines national policies, regulations & service delivery criteria

Ensure wider coverage & improved service delivery; implement national projects to enhance electricity generation, transmission & dist.; review key local project proposals

Ensure adequate service provision at the local level; implement local projects (inc. contracting out); provides technical support to LAs; reviews & submits local proj. proposals to national authorities

PEC Branch

RE Projects

Gove

rnor

ate L

ADi

stric

t LA

Technical Unit

C e n t r a l i z e d & d e –c o n c e n t r a t e d f u n c t i o n s

O u t s o u r c e d F u n c t i o n s

Ministry of Electricity

D e v o l v e df u n c t i o n s

RE Branch

Ensures that electricity projects adhere to urban regulations and are coherent and properly synchronized with projects/other forms of interventions proposed or being implemented in other sectors; facilitates co-ordination among implementing units

Diwan

Strategic Planning Unit

District LocalCouncil

Technical Unit

Diwan

Private contractors and/or cooperatives


Governorate

District

Water Basin

Communities

NWRA

Basin Committee (BC): Assists NWRA in Formulating water resource management policies and supports enforcement

National Water Resource AuthoritySets the technical water resource use/Management Guidelines for Basin

Water User Groups: Lowest level of Representation of water users organized bypurpose of use (drinking water, banana farming…)

Water User Associations: second tearOf representation of water users in the form ofGroupings of user groups by purpose

Water Consultative Committee: The forum of representation of all WUA playing an Advisory role to local authorities

Water Technical Unit: water sectortechnical unit at the district local authority

District Local Authority: Accountable to NWRA & BC to enforce water resource use policy& Integrate such policies into Dist. Dev. Plans

Water Technical Unit: water sectortechnical unit at the governorate local authority

Governorate Local Authority: Accountableto NWRA & BC to enforce water resource use & the integration of policies into Gov. dev. plans

Draft Decentralized Water Resource Governance Structure (Basin to User)


Rura

l W

ater

Wat

er C

orpo

ration

s

Head of Admin

Unit

Local Council

Financial& AdminInformationSecretariat

Engineering& Technical

Services

StrategicPlanning

Revenue& Wajibat

AccountingUnit\

AgricultureE.O./Unit

HeathE.O./Unit

EducationE.O./Unit

Public Works

E.O./Unit

Service B Fisheries E.O./Unit

Culture E.O/Unit

LA Institutional Structure: Proposed Restructuring of the Governorate Local Authority and key relationships between de-concentrated & devolved organs

Media &Public

Relations

Training COCA

FinanceOffice

Authorities, Corporations

& Projects*

Industry & Trade

E.O./Unit

Planning Office

Service A

Civil ServiceOffice

AdministrativeSupport

External Financial C

ontrol

AdministrativeSupport

Technical Support and Supervision

Executive Organs & Service Units

Service C

Governorate Local Authority

De-concentrated (external) Authorities/Organs for

service delivery

Devolved Authority Existing de-concentrated (external) Authorities/Organs to be devolved/integrated into the

LA Diwan structure

*For more details on the de-concetrated Authorities & Corporations, see sector-specific institutional outlines

External organs for auditing/ financial

control

Coordination for service

delivery and program

me/

project im

plementation

Urban Mgt Dept

(Public Works)

Diwan


Head ofAdmin

Unit

Local Council

Administrative SupportFinancial& AdminInformation SecretariatTechnical

& Assets PlanningRevenue& Wajibat

AccountingUnit

Service Delivery & Technical UnitsAgriculture Heath Education Public

Works

Administrative Support

Administrative Support

Technical Units

ServiceService Fisheries Culture

Combined Basic Services Units

Service units to be set-up based ondistrict character and need

Technical Units for ServicesProvided by De-concentrated Entities

FinanceOfficeDistrict

COCAGovernorate

LA Institutional Structure: Proposed Restructuring of the District Local Authority and key relationships between de-concentrated & devolved organs

External Financial

Control/A

udit

Devolved Authority Existing de-concentrated Organs to be

devolved/integrated into the LA Diwan structure

External organs for auditing/ financial

control

District Local Authority


MOLA Primary

Administrative

AdministrativeService Delivery/

Sector Units

Local CouncilDD

Service Delivery/Sector Units

Local CouncilG

• Policy Framework• LA Operations• Monitoring LD

Governorate LA

District LA

De-conEntities

MOF MOCS

COCA

AEW

Sector AuthoritiesMinistries/Authorities

CommunityParticipation

Governorate Level

District Level

LA Capacity: Scope and Division of Labor


MOLA

GLA

DLA

MOF COCA MCS MO

EDMOHP

MOPW

MOAI

MOWE

MOElOther

Communities

MOPIC

Proposed Fiscal Decentralization Reforms: Financing of LAs& their Financial Management System


Local Capital Fund FlowsLocal Recurrent Fund FlowsCentral Recurrent Fund Flows Central Capital Fund Flows

AuthoritiesSector MinistriesPrimary Ministries

The National Program For Strengthening the System of Local Authority


MOLADLDP

GLA

DLA

MOF MOP MCS MOE MOHP

MOAI

MOPW

MOWE

MOELCOther

Inter-ministerialCommitteeTechnical Committee

TS


Communities

DP&CU

COCA

FDSP

CASP

PSP

CSSP

ESP

HSP

AISP

PWSP

SP

WESP

ESP

GLASP

DLASP

De-Concentrated Branches

The National Program for Strengthening the System of Local Authorities


MOLADLDP

GLA

DLA


TS

Communities

DP&CU

FDSP

CASP

PSP

CSSP

ESP

HSP

AISP

PWSP

SP

WESP

ESP

GLASP

DLASP

Policy & Regulatory ReformThe Amendment of the Local Authority Law, by-laws and regulations

•The reform of fiscal decentralization policies and the Local Revenue Law

•The reform of civil service policies for local authorities

••The amendment of sector laws for better alignment with the Local

Authority Law

De-Concentrated Branches

National Program: Policy & Regulatory Reform Component


MOLADLDP

GLA

DLA


MOAI

MOPW

MOWE

MOELCOther


TS


Communities

DP&CU

COCA

FDSP

CASP

PSP

CSSP

ESP

HSP

AISP

PWSP

SP

WESP

ESP

GLASP

DLASP

Functional Assignment & Institutional Restructuring

Specify & assign financial management, control and audit functions at the LA levels•

Specify & assign HR functions at the LA levels •

Specify & assign planning, implementation & asset management functions at the LA levels

•Specify & assign service delivery functions at the LA levels

•Specify & assign other general administrative support functions at the LA levels

•Develop/modify procedures and process for the above functions

•Restructure LA institutional structures accordingly

National Program: Functional Assignment & Institutional Restructuring Component

ID


MOLADLDP

GLA

DLA


MOAI

MOPW

MOWE

MOELCOther


TS


Communities

DP&CU

COCA

FDSP

CASP

PSP

CSSP

ESP

HSP

AISP

PWSP

SP

WESP

ESP

GLASP

DLASP

Capacity Development

Develop the basic administrative capacities of LAs•

Develop the Public Expenditure & Asset management capacities of LAs•

Develop the sector/service specific capacities of LA sector units•

Develop the technical and service delivery capacities of service delivery units•

Mobilize resources to fund the equipping of service delivery facilities •

Mobilize resources to finance the creation of new service and economic infrastructure and facilities

National Program: Capacity Development

CD


decentralization & local development support program … · decentralization & local...

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