Did You Know This?

8 Decentralized Governance
A Global Sampling Of Experiences (From a UNDP Monograph on Decentralization) Nharnet Team (March 24, 2005) As of recent years, the United Nations Development Programme (UNDP) is spending half of its resources on promotion of good governance, a shift necessitated by an ever increasing recognition that governance begins in communities, villages and towns. In a training manual sampling selected country cases from all over the world, UNDP presents all what it wanted to educate about the merits of decentralized governance. We at Nharnet.com are pleased to present to our readers a few parts of the said material and recommend that it be read attentively by anyone interested to have good understanding of the concept of decentralization and its roles. Among other things, the monograph stresses the following points: Solving development problems depends on effectiveness of governance practices and the empowerment of individuals to participate in the decisions that affect their lives. Without good governance, good development - people-centred development - will not move from promise to reality. The achievement of good governance at the local level is not possible without the transfer of responsibilities and capacities through decentralization. Decentralization is not an alternative to centralization. Both are needed. The complementary roles of national and sub-national actors should be determined by analyzing the most effective ways and means of achieving a desired objective. Decentralization is a counterpoint to globalization. Globalization often removes decisions from the local and national stage to the global sphere of multi-nations or non-national interests. Decentralization on the other hand brings decisionmaking back to the sub-national and local levels. Decentralization is affected by the cultural elements of a society - the images, assumptions and internal psychic of the population regarding the issues of authority, role of the government, role of the citizen, conflict, consensus, power, role of elites, role of the poor, the role of women, and a host of other issues. Decentralization is a political issue that often arises from political commitment and pressure outside of any given sector. When decentralization is initiated first in a specific sector, it often meets resistance by officials who do not want to transfer their power. [However], not all government functions should be decentralized. A function should not be transferred to a lower level if it is critical to the achievement of central-level goals and its sustainability at the local level cannot be guaranteed, the capacity to perform the function does not exist at the lower level, or undertaking this function at the peripheral level is not cost-effective. Decentralization is a long-term effort in which timing and phasing are crucial. Before we let our visitors start reading the important UNDP material below, we wish to note that the term decentralized governance was mentioned in the unity proposal of the ELF-RC tabled for discussion a year ago. We also read in media reports that the concept

of decentralized governance is part of the upcoming charter of the EDA. The ELF-RC programme adopted in the last congress of 2001 has this to say under a section on public administration: The ELF-RC strives for: A.1. Adopting a permanent constitution written with the participation of all of the political forces and ratified by a peoples referendum. A.2. Establishing a democratic parliamentary system distributing power to legislative, executive and judicial branches of government exercised on provincial, divisional and sub-divisional, municipal etc levels of administration. In other words, the programme allows local government structures to have legislative, executive and judiciary branches at the provincial, district, sub-district, township and even village levels. The reader will find striking similarities of this type of decentralization discussed in the UNDP monograph below. Good reading. Nharnet Team. *** Introduction: Sustainable Human Development (SHD) as a crucial path for poverty reduction does not occur in a political vacuum. It depends on effectiveness of governance practices in solving development problems and the empowerment of individuals to participate in the decisions that affect their lives. Without good governance, good development - people-centred development - will not move from promise to reality. The fundamental principles of good governance are universal: they include respect for human rights, particularly the rights of women and children; respect for the rules of law; political openness; participation and tolerance; accountability and transparency; administrative and bureaucratic capacity and efficiency. These are mutually reinforcing and cannot stand alone. There has been a growing consensus among the international community that effective and good governance is crucial for human development. Based on this conviction, currently UNDP has allocated approximately half of its resources towards supporting activities designed to promote and facilitate good governance globally. This shift has been accompanied by an increasing recognition that governance begins in communities, villages and towns, and local governance provides the basis for the concept and the structure of good governance. Many UNDP activities supporting decentralization from centres to regions, districts, local government/authorities and local communities are beginning to show that this can be an effective means of achieving the critical objective of human development, and thus reducing poverty. So far, UNDP's experiences with decentralization have demonstrated its significant contributions to improving the population's access to health, education, employment and sustainable livelihoods' opportunities, and various social services. In this context, decentralization also strongly correlates with peoples increased participation in economic, social political activities; assists in developing and enhancing people's capacities; and fosters government responsiveness. While decentralization or decentralizing governance should not be seen as an end in itself, it can be a means for creating more open, responsive, and effective local government and for enhancing representational systems of community-level decision making. By allowing local communities and regional entities to manage their own affairs, and

through facilitating closer contact between central and local authorities, effective systems of local governance enable responses to people's needs and priorities to be heard, thereby ensuring that government interventions meet a variety of social needs. The implementation of SHD strategies is therefore increasing to require decentralized, local, participatory processes to identify and address priority objectives for poverty reduction, employment creation, gender equity, and environmental regeneration. For this reason, decentralizing governance is one of the priorities identified in the UNDP policy on governance. UNDP uses the term "decentralizing governance" as it firmly believes that decentralization of the public sector, in itself, will not be effective unless support is also provided to strengthen local governance, involving the public, private and civil sectors. And, in turn, the achievement of good governance at the local level is also not possible without the transfer of responsibilities and capacities through decentralization. The term "decentralized governance" defines the systematic and harmonious interrelationship resulting from the balancing of power and responsibilities between central governments and other levels of government and non-governmental actors, and the capacity of local bodies to carry out their decentralized responsibilities using participatory mechanisms. One of the most critical perquisites to translate decentralization from theory to practice is a clear understanding of the concept. To be able to better envision what decentralization means, how best it can be planned and implemented, what its intricacies are, and how its challenges can be overcome, development practitioners should be equipped with appropriate tools which could provide an analytical knowledge of decentralization from a conceptual viewpoint accompanied by real and field-tested examples of the concept in practice. Decentralization: A Conceptual Overview Decentralization can be defined as the transfer of responsibility for planning, management and resource raising and allocation from the central government and its agencies to: (a) field units of central government ministries or agencies, (b) subordinate units or levels of government, (c) semi autonomous public authorities or corporations. (d) area wide, regional or functional authorities, or (e) non-governmental, private, or voluntary organization (Cheema , Rondinelli, and Nellis, 1983). Forms of Decentralization There are a variety of different arrangements which are often included in the discussions on decentralization. Cheema and Rondinelli (1983) have identified four major forms of decentralization: I) devolution, II) delegation, III) deconcentration; and IV) divestment, and each are briefly described below. I) Devolution - transfer of responsibility for governing, understood more broadly - i.e. the creation or strengthening, financially or legally, of sub-national units of governments, whose activities are substantially outside the direct control of central government;

II) Delegation - assignment of specific decision making authority - i.e. the transfer of managerial responsibility for specifically defined functions to public organizations (e.g. local governments or parastatals) outside the normal bureaucratic structure of central government; III) Deconcentration - spatial relocation of decision making - the transfer of some administrative responsibility or authority to lower levels within central government ministries or agencies; and IV) Divestment - best treated as decentralization and it occurs when planning and administrative responsibility or other public functions are transferred from government to voluntary, private, or non-governmental institutions with clear benefits to and involvement of the public. What decentralization is.. A counterpoint to globalization Decentralization is a counterpoint to globalization. Globalization often removes decisions from the local and national stage to the global sphere of multi-nations or nonnational interests. Decentralization on the other hand brings decision-making back to the sub-national and local levels. An integral part of democratization Decentralization is an integral part of the logic of democratization - the power of people to determine their own government, representation, policies and services. A phenomenon involving mutiple dimensions, actors and sectors Decentralization is a complex phenomenon involving many geographic entities, societal actors and social sectors. The geographic entities include the international, national, subnational, and local. The social actors include government, the private sector, and civil society. The social sector includes development themes - political, legal, social, cultural and environmental. A logical application of core characteristics of good governance Decentralization is the logical application of the core characteristics of good governance at the sub-national and local levels. These characteristics include accountability, transparency, rule of law and responsiveness. A mix of types of functions and relationships Decentralization is a mixture of administrative, fiscal and political functions and relationships. A mix of four dimensions Decentralization involves four dimensions - the collective/exterior, the collective/interior, the individual/exterior, and the individual/interior. The collective/exterior has to do with the institutional and legal forms and procedures. The collective/interior deals with the social culture - the set of values and assumptions which are often unspoken or unacknowledged but never the less play a powerful role in human relationships. The individual/exterior dimensions has to do with observable behavior of individuals within the various social institutions, whether government, private sector or civil society. The

dimension of the individual/interior deals with mindset, worldview, mental models, emotions and intuitions of individuals within institutions. A new form of communication Decentralization involves new communication and information flows between each geographic area, societal actor and social sector. What decentralization is not.. An alternative to centralization Decentralization is not an alternative to centralization. Both are needed. The complementary roles of national and sub-national actors should be determined by analyzing the most effective ways and means of achieving a desired objective. For example, a national road system should be designed with both local input and national coordination. Foreign policy should be a national function based on the views of the citizenry. Solid waste management should primarily be dealt with through local mechanisms. Exclusive public sector reform Decentralization is much more than public sector, civil service and administrative reform. It involves the roles and relationships of all societal actors, whether governmental, private sector or civil society. Why decentralize? To achieve the goals of sustainable and people-centred development Decentralization is a form and process of governance. Just as there can be good governance at the national level there can be good decentralized governance. Good governance includes the mechanisms and processes that enable a society to achieve more sustainable and people-centred development. Good decentralized governance includes the forms and procedures that allow a society to achieve at the sub-national and local levels the goals of poverty reduction, sustainable livelihoods, environmental regeneration, and gender equity. How to decentralize? Consider the existing cultural elements Decentralization is affected by the cultural elements of a society - the images, assumptions and internal psychic of the population regarding the issues of authority, role of the government, role of the citizen, conflict, consensus, power, role of elites, role of the poor, the role of women, and a host of other issues. Consider changing relationships Decentralization always involves changes of relationship between and among different societal actors, social sectors and geographic areas. These changes can be threatening or can be seen as enabling for all parties - a win win situation. Consider timing and sequence Decentralization is a long-term effort in which timing and phasing are crucial. Consider enhancing mechanisms of participation and partnership Decentralization is increased in effectiveness through mechanisms of full participation and partnership. Participation must involve all the societal actors playing their optimal and legitimate roles in policy formulation, resource management and service

provision. Popular participation is crucial in each phase of decentralization, from situational analysis, design, implementation, monitoring, evaluation and feedback. Partnership must be based on mutual trust and understanding of the various actors, acknowledging that each has both strengths and weaknesses. Each actor must both enable the other actors in their legitimate roles and hold them accountable if they step outside their legitimate mandates. Consider the mental model that is being used Decentralization as a term comes from a mental model containing a centre and a periphery. This is only a model just as a pyramidic social structure is only a mental model. When we view a society as a whole system, we see not vertical layers (as in a pyramid) or concentric layers (as in the centric model), but rather a horizontal environment with autonomous yet interrelated actors, sectors, and geographic areas. In designing decentralization policies and programmes its is necessary to be cognizant of the mental model one is using and if necessary to adapt or completely change the model to better fit reality. What is a donor role in decentralization? Decentralization is a sensitive national issue. Donors should not attempt to control this process but to play a facilitative role. Donors should see decentralization as a learning process and should allow for mistakes to be made and learning to take place. Donors should use a process consultation approach in the design of programmes involving the local and national actors in each phase of the programme cycle. What are some of the major issues in decentralization? In analyzing the concept of decentralization and local governance, several major issues continuously appear. These issues often form the bedrock of comprehensive and systematic strategies to promote and facilitate decentralization practices. The following box has been created in order to provide readers with a snapshot of the most prevalent issues emerging from the analysis of the concept and its various dimensions. Issue 1:Decentralization is a political issue that often arises from political commitment and pressure outside of any given sector. When decentralization is initiated first in a specific sector (e.g., education), it often meets resistance by officials who do not want to transfer their power. Issue 2:Often guiding principles are the missing components of decentralization. Decentralization principles should include the purpose of decentralization, rationale, objectives, and implementation design, and include a clear definition of roles for the various management levels and the linkages between them. Issue 3:Not all government functions should be decentralized. A function should not be transferred to a lower level if it is critical to the achievement of central-level goals and its sustainability at the local level cannot be guaranteed, the capacity to perform the function does not exist at the lower level, or undertaking this function at the peripheral level is not cost-effective.

Issue 4:National leaders and donor organizations should fully appreciate the complexity of decentralization. The complexity of decentralization often is reflected in three key areas: Transfer of finances, procurement systems, and management of human resources. For the decentralization process to be effective, details of these priority areas should be identified and crystallized well in advance of the implementation of the decentralization process. Issue 5:Decentralization requires improved legal, regulatory and financial framework to ensure clear division of responsibilities, accountability, and transparency. Issue 6:Regional and local capacities for decentralization should be fully assessed prior to implementation of a countrywide decentralization process Issue 7:Creating coordinating and assistance linkages is essential for effective implementation of decentralization. If decentralization is to be effective, means must be found for reorienting the central administrators' perception of their roles from control and direction to support and facilitation. This requires strengthening capacity at the central level to perform their new functions effectively. Issue 8:Standards and norms are essential for equity and quality. The transfer of extensive power to more peripheral management levels should be based on a system that balances central and local priorities without which there would be negative impact on national equity. Clear national standards and service norm and ongoing system of monitoring are essential for safeguarding equity and quality. Issue 9:Support for decentralization policies must be deliberately and carefully mobilized among all critical players. This includes: leaders in central ministries and departments, state, provincial, municipalities, district, and local units of administration, autonomous and regional agencies, political parties, and interest groups that will be affected by the decentralization process. The mass media, training and public information programmes, and political bargaining must be used to forge a base of support for decentralization policies if they are to be implemented successfully. In most countries, changes must be made in the civil service system to provide incentives and rewards for those officials who promote development at the local level. Issue 10:Stages and procedures of the implementation of decentralization should be identified. Experiences indicate that decentralization can be implemented most successfully if the process is incremental and iterative. Those aspects or programmes that are least likely to be opposed and for which there is adequate administrative capacity should be expanded as political support and administration competence increase. Greater attention should be given to building administrative capacity from the "bottom - up" as well as from the "top - down" and to finding ways of using and strengthening existing organizations and traditional decision-making procedures in the rural areas. Policy and demonstration projects may be needed to gauge the ability of the local government to assume greater responsibility.

Issue 11:Financial and human resources should be proportionate with decentralization responsibilities. For effective implementation of decentralization policy, the central level government must be prepared to allocate appropriate resources in terms of financial and human capital, and technical assistance to the localities. In most cases, the localities can not undertake decentralization responsibilities unless supported by the central administration. Issue 12:The private sector can be critical partner in the design and implementation of decentralization. The public/private partnership in the design and implementation of decentralization is essential for mobilization of resources and delivery of services at the local level. Issue 13:Broad participation is needed for successful decentralization process. For decentralization to be effective, it should be built on the needs, priorities, and views of the people who are most affected by it. Appropriate mechanisms should be develop to promote and encourage popular participation and involvement in the identification of local needs to finding the most suitable approaches and strategies to respond to such needs. Issue 14:Decentralization can facilitate empowerment. Local participation in identifying community strengths and weaknesses, and their involvement in mobilizing resources needed to enhance development at the local level facilitates and promotes empowerment. Issue 15:Creative local solutions should be encouraged and disseminated. Decentralization is expected to enhance creative problem solving at the local level. Issue 16: Monitoring and evaluation procedures for decentralization should be specified. To assess the impact of decentralization policies on improving the quality of life at the localities, the concept of decentralization should be further narrowed to specific and tangible measures that can be used as reliable indicators to monitor and evaluate the progress of decentralization policies and programmes. To plan, adjust and adapt decentralization policies to meet local priorities and realities requires comprehensive monitoring and evaluation tools capable of detecting its effects on improving the quality of life for the population.

(The Monograph goes on presenting case studies on decentralized forms of governance in 30 different countries and different sectors of activities.)