workshop dakar uncdf ldu

8/11/2019 Workshop Dakar UNCDF LDU

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UNCDF

Piloting Innovations

for Decentralization Reforms

Local Governments in Local Development

and Poverty Reduction

New York, 21 June 2004


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UNCDF

I. UNCDF

II. UNCDFs pilot approach to local development

III. Major areas of innovationIV. Policy impact

V. Case studies

(a) UNCDF project in BANGLADESH

(b) UNCDF project in MALAWI

(c) UNCDF projects in MALI

Presentation


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Presentation prepared by :

Angelo BONFIGLIOLI, Sr. technical adviserUNCDF,New York

Azizur Rahman SIDDIQUE, Local

Governance Development Fund Project,Sirajganj, Bangladesh

Willie SAMUTE, Principal Secretary,Ministry of Local Government & RuralDevelopment, Malawi

Mohamed AG ERLAF, Director, NationalAuthority for Local GovernmentInvestment


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II.

UNCDF


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UNCDF

UNCDF

The United Nations Capital Fund, created in 1966 bythe General Assembly of the UN, is a multi-lateralorganization.

It has its own legal status and funds (from a group ofdonors), within the UNDP group.

UNCDF funds and implements small-scale investments

(in the forms of grants) in LDCs in local developmentand micro-finance.


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II.

UN DFs pilot approach

to local development


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UNCDF has developed an innovative strategic tool, theLocal development Programme (LDP),designed tosupport local development, within the context ofpoverty reduction. LDPs stress :

the role of democratic governancein poverty-reduction (i.e., the establishment of horizontalnetworks involving local governments, communityorganizations, the civil society and the private sector),

the role of democratically elected local authoritiesinlocal development

An innovative model


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Specific challenges faced by LDPs

a) Developing local institutions

b) Building local capacities

c) Fostering pro-poor delivery ofinfrastructure and services

d) Financing local development


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Major risks faced by LDPs

Lower quality of public services

Inequity & growing regional disparities

Capture of benefits by local elite

Sti l l m ixed and incomplete emp ir ical evidence of

the comparat ive advantage of decentral ized

governance in p over ty reduc t ion


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Since 1998, UNCDF has initiated projects supportinglocal governments in more than 20 countries(mainlyin Africa and Asia)

These projects involve a total cost of about $160million, of which $96 million from UNCDFcore funds

and $64 million from contributions and/or trust fundsfrom UNDP and other donors : The Netherlands,Norway, DFID/UK, BSF/Belgium, Danida/Danemark,and Luxembourg

About $64 million constitute a general fund to supportLGs investments (poverty reduction, infrastructure,service delivery, etc.), through different configurations(block grants, earmarked funds, green w indows, etc.)

Existing LDP portfolio


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III.

Major areas

of LDPSs innovation


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Major innovations

LDP

Financing

Capacitybuilding

Implement.& production

Accountab. &transparency

Planning &Budgeting


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Planning budgeting

Inclusive and cost effective planning: partici-pation of all local stakeholders

Technical support : innovative ways of providingLGs with technical skills for participatory planning

Linking planning & budgeting: planning as a more

meaningful process with tangible results


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Financing

Fund allocation: use of pre-determined, formula-based allocations to LGs, for capital expenditure

Block grants: hard budget ceilings, in order toundertake meaningful investment planning

Support to local budget: on the basis of

comprehensive LDP, away from a project-by-project modality, with predictable annualallocations

Performance-based funding: ex-post controls (inthe light of essential parameters)

Matching contributions : in kind and nature,according to differential approach

Local resources: support for improving localrevenue collection


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Capacity building

Training: for a number of different stakeholders(use of planning tools, procedures. Mentoring oflower levels of LGs by higher levels)

Learning by doing : fostering capacity-building byon-the-job familiarization (= the crucialinnovation)


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Implementation / production

Procurement /production procedures andmodalities : suitable & flexible arrangementsmanaged by LGs (private sector bidding, forceaccount, community implementation, etc.)

Oversight : supervision & monitoring (withsupport to project management committees ortask forces under the supervision of LGs)

Private sector: upgrading contractors, trainingcontractors in contract management & for bidding

for tenders, unleashing entrepreneurship Operation & maintenancearrangements included

in the planning


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Accountability and

transparency

Communication: a strategy for downwardaccountability

Monitoring and evaluation: through a number ofself-assessments and auto-evaluations

Participation: participatory planning andaccountability


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IV.

Impact on policies


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Implementing Agency:Local Government Division

Ministry of LGRD & Cooperatives

Duration : 5 YearsStarted in July 2000

Coverage

3rdPhase

45 UPs

1stPhase 19 UPs

2ndPhase 9 UPs

Funded byUNCDF & UNDP


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Population: 130 million (75% rural)

Density: 876/sq km

Poverty: 58% poor people live in rural areas; 40% rural

pop. are poor (against 14% urban pop.)

Division (06)

District (Zila, 64):Average popul. : 2 million

Sub-District (Upazila, 469):Average popul. : 255,000

Union (Union Par ishad, 4488)Average popul. : 30,0009 wards(Gram Sarkar)

LOCAL GOVERNMENT & ADMINISTRATION

BANGLADESH : Country Profile

Deconcentratedlevel

Electedauthorities


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LGs (established in 1870) still lack a coherent andstable policy

Limited authority of UP (strong central control)

Unclear womens representation

Weak tax & revenue power

General mistrust, perceptions of low capacity, elitebias, corruption and lack of accountability

Some policy statements (eg PRSP), while pointing topotential role of LGs, still remain starved ofresources and sidelined

Policy Constraints


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Participatory Decision Making & Monitoring

Decentralized & performance-based funding

Open Budget Sessions

Women Empowerment

Local Resources Mobilization

Participatory Performance Assessment of UPs

Transparency and accountability

Dissemination of lessons learned for policy change

Overview of major innovations


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Participatory Decision Making & Monitoring

Participation of local community in Planning,Implementation, Monitoring, & Maintenance

Community wards meeting before annual budgetsession (at UP level)

Men and women identify local problems and prioritizethem for immediate solution

UP plan and budget incorporated in community plan

UP approved projects are implemented, monitored &maintained by community committees


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Annual Development Block Grant directly allocated tothe UPs instead of sub-district

Use of formula-based predictable grant

Performance-based financing

Timely disbursements to the UPs

Fund owned by UPs

Dissemination of information to Communities

30% of funds earmarked for women

Decentralized & performance-based fund


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Women Empowerment

UP Women members are organized / trainedthrough Women Development Forumat district &Upazilalevel.

At least 30% of local committees are chaired by

female members

30% local development fund are earmarked forwomen

Women participation in decision making process

Advocacy & information on women rights in thelocal governments process


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Local Resource Mobilization

Enhancement of local revenue mobilization is one ofthe key criteria for accessibility to funds

Training/Counselling to UPs and Communities

Local resource mobilized for O&M

Incentive for performing UPs (e.g. in revenuecollection)

Community are informed about the use of revenuecollected by UPs.

Contribute to the government effort to revise modeltax schedule & strategy


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Participatory Performance Assessment

Assessment of the UP Activities by the community

The assessment done once a year in a particular day inpresence of local people

The assessment facilitated by UP members or anypersons from community and community representatives

provided score

Participation of 100-300 persons (including 20-30%women) in the assessment workshop

Use of public score card to assess the performance of

Ups

Links between the results of the performanceassessment and funding & capacity building activities ofUPs


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Transparency & Accountability

Organization of UDC, WDC, SSCs & UFT in atransparent manner to ensure participation ofcommunity

Use of scheme information boards, UP notice boards

for information dissemination

- Monitoring activities managed

by community

- Access of communities to UPfinancial transactions

- Community gathering at the

start and handover of schemes.


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Dissemination of lessons learned

Performance assessment score card (eventuallyintroduced nationally by LG Ministry)

Incentive for the LGIs linked with Performance

outcome

Organization of local and national workshops

Wide communication of results and findings ofevaluation studies to constituencies and to policymakers


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Major innovations of the SLGDFP

SLGDFP

Appropriatefinancing

procedures

Capacitybuilding for allstakeholders

Efficientimplement.

& production


with trust andcredibility

ImprovedPlanning &Budgeting


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V.

2nd Case study :

Local Governance and DevelopmentManagement Programme, MALAWI


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MALAWI : Country Profile

Population: about 12 million

Poverty is widespread, deep and severe

65% of population is poor: 28% living in dire

poverty Life expectancy rate 39 years

Literacy rate 58% (female rate 44%)

Up to 1994: 30 years of autocratic rule, over-

centralization and weak local Government 1993: multi-party democracy

1994: first multiparty democratic governmentand Government intension to decentralize


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Major innovations

of the programme


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Sub National Planning System

Giving to the District DevelopmentCommittees responsibility for localdevelopment (= i.e final decision on districtspecific development through DistrictDevelopment Plans)

Strengthening development institutions(VDCs, ADCs, DDC)

Setting planning procedures at all levels(VAP, SEPS, DDPs)


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Sub National Planning System ()

Capacity Building: establishing

procedures, institutions and capacities forcommunities participation in localdevelopment

Establishing coordination mechanismthrough the setting up of a DistrictDevelopment Office, District Executiveand Area Executive committees

Establishing institutions for capacitybuilding at district, area and village level.


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The District Development Fund

A decentralised development financingmechanism established and managed at thedistrict level

The DDF is designed to respond to issuesand projects that are raised through theDistrict Development Planning system

Allocation of funds based on a clear formula


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Distribution formula

National Level

5% of National Revenue Net statutoryexpenditure

20% distributed equally to all district

80% based on population, illiteracy

rate, infant mortality rate and access tosafe drinking water

District level

70% of the funds are allocated tocommunity based projects

30% for projects initiated at districtlevel

N ti l D t li ti P li


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UNCDF

National Decentralisation Policy

1996 : Commissioning of comprehensive studiesof Decentralization Policy

Institutional set-up for policy formulation(Cabinet Committee on Decentralization,

Technical Committee and DecentralizationSecretariat)

1998: Decentralisation Policy approved LocalGovernment Act passed based on the policy


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Characteristics of the policy

Devolving political, administrative anddevelopment authority to the districts

Integrating governmental agencies at the

district and local level into one localgovernment administrative unit

Diverting the centre of implementationresponsibilities

Promoting popular participation, in thegovernance and development management

Other achievements


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Other achievements

Merger of local and district administration to formone local government secretariat

Local Government Elections

Establishment of key Local GovernmentInstitutions including the National Local

Government Finance Committee

Approval by Parliament of intergovernmentalfiscal transfer formula

Funding to District Assemblies based on approvedformula including Social Funds

Integration of MASAF III into Decentralized

Planning and Financing Mechanisms


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Major innovations

LGDMP

Financing

Capacitybuilding

Implement.& production


Planning &Budgeting

Challenges


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Challenges(problems still to be solved)

Slow pace of devolution

Inadequate capacity at assembly level

Transferring less funds than indicated inthe policy

Variation between local priorities andfunding decisions

Multiplicity of participatory institutions atthe community level


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V.

3nd Case study :

Support to Local GovernmentProjects (in Mopti and Timbuktu)

MALI


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LOCAL GOVERNMENTS

ANICT: Agence Nationale dInvestissement des Collectivits Territoriales

(Status: Etablissement Public caractre Administratif)

FINANCIAL

SUPPORT

TECHNICAL

SUPPORT

DNCT ANICT

DNCT: Direction Nationale des Collectivits Territoriales (Central Branch)

DNCT MISSION


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DNCT: MISSION

DEFINE, CONTROL AND IMPLEMENT THE REGULATORY FRAMEWORK FOR

LOCAL GOVERNMENTS

CARRY OUT BASIC STUDIES TO IMPROVE AND BUILD UP THEDECENTRALISATION PROCESS

MONITOR THE LEGAL CONTROL OF THE REPRESENTATIVES OF THE CENTRALGOVERNEMENT ON SUB-NATIONAL GOVERNEMNTS

DEFINE THE TYPE OF SUPPORT NEED BY LOCAL GOVERNMENTS IN ORDER TOPLAY A CRUCIAL ROLE IN LOCAL DEVELOPMENT AND ADMINISTRATION

STRENGTHEN THE COOPERATION BETWEE LOCAL GOVERNEMENTS AS WELLAS THE PARTNERSHIP BETWEEN LOCAL GOVERNMENTS AND THEIR PARTNERS

ANICT THE MISSION


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ANICT : THE MISSION

DISTRIBUTE GRANTS TO LOCAL GOVERNEMENTS IN ORDER TO FINANCE LOCAL

DEVELOPMENT-RELATED INVESTMENT

FAVOR GRANT PEREQUATIONMECHANISMS, WHICH TAKE INTO ACCOUNT THEDEGREES OF DEVELOPMENT OF LOCAL GOVERNEMENTS, ACCORDING TOWELL-DEFINED CRITERIA

ASSIST LOCAL GOVERNEMENTS TO DEVELOP BASIC PRO-POOR INFRASTRUCTUREAND SERVICES

ASSIST SUB-NATIONA GOVERNEMENTS TO MOBILIZE INTERNAL FINANCIAL

RESOURCES

PROVIDE COLLATERAL FOR LOCAL GOVERNEMENTS LOANS AIMED ATFINANCING LOCAL DEVELOPMENT INITIATIVES

UNCDFS TECHNICAL SUPPORT TO LOCAL GOVERNMENTS


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PACR-TImbuKtu & PACR-Mopti

DNCTNATIONAL COORDINATING UNIT

LOCAL GOVERNMENTS

SUPPORTING THE CRUCIAL ROLE OF LGsIN LOCAL DEVELOPMENT

PARTCIPATORY PREPARATION OF LOCAL DEVELOPMENT PLANS

PROVIDING TECHNICAL SUPPORT


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PACR T & PACR M LESSONS LEARNED


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PACR-T & PACR-M: LESSONS LEARNED

STRONG CENTRAL GOVERNEMENT INVOLVEMENT

STRONG PARTNERSHIP WITH OTHER DONORS SUPPORTINGDECENTRALISATION AND EFFORTS TO HARMONIZE PROCEDURES

PARTICIPATORY PLANNING AND BUDGETING

ADOPTION OF A GENERAL APPROACH SPECIFICALLY AIMED AT EMPOWERINGLOCAL STAKEHOLDERS

TECHNICAL AND FINANCIAL SUPPORT TO ABOUT 130 LOCAL GOVERNEMENTS(OUT OF A TOTAL OF 761)

USE OF NON-CONDITIONAL AND PREDICTABLE FUNDS


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Piloting Innovations

for Decentralization Reforms

Local Governments in Local Development

and Poverty Reduction

New York 21 June 2004

workshop dakar uncdf ldu

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