European Regional Seminar on

Decentralisation and Local Governance

Session 1.3: The Continuing Relevance of

Decentralisation and Local Governance
Agenda
11th November 2013
Nairobi, Kenya

George Matovu
Municipal Development Partnership for Eastern and
Southern Africa (MDP-ESA)
 Outline

Current status of decentralisation & local governance

Funding for decentralisation and local governance by
EU
The agenda for decentralisation
After 20 years of decentralisation
Basic questions
New challenges impacting decentralisation and local
governance
Way forward
Role of MDP-ESA
 State of Decentralisation

Since the late 1980s, D/LG is part of the on-going

public sector & local government reform
processes in progress and will continue to be
work in progress for some time
The latest statistics show that over 40 countries
have embraced decentralisation
The reforms have been supported by the World
Bank and IMF, the United Nations System, and
the European Union as well as bilaterals such as:
Denmark, Norway, Sweden, the United Kingdom,
and the Netherlands
EU has increasingly recognised decentralisation
as an essential pillar in the new Euro-Partnership
architecture.
 Governance Funding Source by Classification Area for
Sub-Saharan Africa (1980s to 2008)

Governance Classification Area Budget (US$) % of Total Budget

Socio-Economic Management 4,510,404,917.00 26.89%

Rule of Law and Human Rights 1,145,495808.58 6.83%
Leadership Building 188,652,515.17 1.12%
Electoral System 109,325,207.46 1.17%
Communication, Press, & Media 109,325,207.46 0.65%
Public Administration 5,511,500,872.84 32.86%
Civil Society Empowerment 924,815,321.97 5.51%
Peace and Stability 1,586,431,920.51 9.46%
Decentralisation 2,402,730,512.19 14.33%
Parliamentary System 197,574,109.80 1.18%
Total
Source: Compiled by Professor Andres de Guttry
16,772,342,477.58 100%
 The Agenda for decentralisation in Africa
Dismantle colonial state apparatus, one-party political systems, and foster
national unity and political stability and legitimacy within diversity
Ensure equitable delivery of services not only to a few elites but to all
Promote devolution of powers and resources to democratically elected
executive councils (headed by mayor or chairperson) with administrative
and financial autonomy
Establish assemblies (Malawi, Mozambique) or local councils to facilitate
citizens participation in decision making processes and in defining
development priorities of their respective localities.
Shift from local government to local governance implying principles of
participation, transparency, and accountability with local government
playing a catalytic role to ensure collaboration and harmonisation among
the frontline actors. It also entailed integration of non-state actors in
management of local affairs. It also called for innovative practices such as
participatory planning and budgeting
Promote local economic development with involvement of the private
sector
Promote regional planning to take advantage of economies of scale
Emphasise local sustainable development and governance
Reasons for Decentralisation in Africa
The overt failure of centralised public sector management which gave way
to economic, fiscal and political crises on the 1970s and 1980s.
The resulting decline in state resources increased pressure for economic,
institutional and political reforms as part of the search for new paradigms
of governance.
Pressure from increasingly sophisticated non-state actors the civil
society and private sector who pressed for space to influence decision-
making process and to get more involved in public affairs, especially in
service delivery and local development.
Pressure from external donors to establish leaner and efficient
bureaucracies as a pathway to improving governance and service delivery;
an important consideration given the fact many African states are heavily
dependent on donor funds for development expenditures.
Pressure of the urbanisation and metropolitanisation phenomenon in
most countries.
The use of decentralisation by ruling groups to neutralize or seek
compromises with local elites with secessionist mentality
The pressure from the globalisation phenomenon which compelled many
national governments to focus their attention on strategic issues of
national economic and political management
 Constitutional Recognition and Protection of Local
Governance
Ethiopia, Article 89/6: the government shall at all times promote the
participation of the people in the formulation of national development
policies and programs; it shall also have the duty to support the initiatives of
the people in their development endeavours.

Kenya, Chapter 11: gives powers of self-governance to the people and

enhance the participation of the people in the exercise of the powers of the
State and in making decisions affecting them;

Mozambique, Article 250: the Public Administration shall be structured on

the basis of the principle of decentralisation and de-concentration.

Uganda, Article II: (i) The State shall be based on democratic principles which
empower and encourage the active participation of all citizens at all levels in their
own governance and (ii) shall be guided by the principle of decentralisation and
devolution of governmental functions and powers to the people at appropriate
levels where they can best manage and direct their own affairs; and (iii) Civic
organisations shall retain their autonomy in pursuit of their declared objectives.
 Innovations in the Cotonou Agreement

Cotonou Agreement acknowledges the need to partner with local government to

foster good governance and local development principles. In that regard,
Article 2 promotes participatory development
Article 4 recognises local decentralised authorities as having a complementary
role of and potential for contributions to development cooperation and
development process
The Agreement recognises decentralisation as a political priority
The 8th and 9th EDF was dedicated to supporting decentralisation ,
Article 10 calls for greater involvement of local decentralised authorities where
appropriate
Article 33 states that the Cotonou Agreement would pay attention to efforts
that help to: build the capacity at the local and municipal levels which is
required to implement decentralisation policy and to increase the participation
of the population in the development Process
Article 58 par. 2 provides that local decentralized authorities from ACP States
become eligible for financial support, subject to the agreement of the ACP
State or States
Article 70-71 recognises decentralised cooperation between Africa and EU local
authorities as an effective means for reinforcing development.
 Busan Declaration
29 November-1 December 2011

local governments play critical roles in linking

citizens with government, and in ensuring broad-
based and democratic ownership of countries
development agendas. To facilitate their
contribution, we will:
support local governments to enable them to
assume more fully their roles above and beyond
service delivery, enhancing participation and
accountability at the sub-national levels.
 Basic questions
Has decentralisation:
effectively addressed poverty?
Improved service provision to the poor?
Promoted good local governance?
Enabled participation of non-state actors CBOs
and private sector?
Delivered truly autonomous local authorities?
Enabled establishment of accountable and
transparent local governments?
Resolved inter-governmental fiscal relations?
Allowed for effective sharing of functions and
responsibilities?
 Positive developments

Constitutional protection. Local Governments have

been empowered and counterweight central
government orders.
Balance of territorial powers. A president or prime
minister can no longer give orders to municipalities
without facing a counterweight
Civil society movements are empowered enforcing
local decision making and some measure of
transparency and downward accountability.
After 20+ years of decentralisation
There is need to review accomplishments
what has worked and what has not worked
To compile lessons learned from experiences
and research findings
To reassess the opportunities and risks (such
as over centralisation, fiscal indiscipline,
nepotism, conflict of powers) associated with
decentralisation
 New Challenges impacting decentralisation and local governance
The lingering culture of centralisation at the centre persists perpetuating financial
dependency
The capacities and systems in place continue to below expected standards
Coordination of various actors and establishment of productive linkages is characterised
by tension
Incoherent policies on signalling recentralisation vs. decentralisation
Brain drain in search of greener pastures
Corruption, bribery, and increasing absence of ethics in local governance
Declining core values in local governance
Hesitance to embrace ICT to enhance service delivery?
Unemployment and unprecedented spread of both rural and urban poverty and
informal sector
Climatic change mitigation and adaptation
Environment, equitable management of natural resources and extractive industries and
tourism
Green issues: reducing pollution, promoting energy conservation, managing public
transport
food crises
Intra and cross-boarder conflicts armed conflicts and insecurity
The space for voices of the poor, marginalised groups, and physically challenged citizens
is not guaranteed
 Defining the Frontline Actors
Ministry of Finance / National Treasury responsible for decentralising
revenues and developing intergovernmental transfers.
Sectorol ministrieshealth, education, agriculture, public works,
environment, water, etc. in charge of devolution of responsibilities
under their general expertise.
Ministries of Local Government, Home Affairs or Interior are responsible
for developing sub-national institutions and managerial procedures
Decentralisation Secretariat
Elections Commissions
Local Government Finance Commission
Local Councils and their departments
Traditional authorities
Non-State Actors NGOs and Private Sector
There is need for a deeper understanding of the actors, what motivates
them and how they can be helped to support decentralisation more
effectively
 Way forward
Promotion of corporate governance & good local financial management
Promotion of decentralised cooperation and peer learning
Improving overall oversight and supervision by central government agencies seem to
be weak
Utilisation of national and regional local government association in lobbying &
advocacy
Providing consistent policies on Land use planning and management, and sustainable
development
Aligning training institutions to the capacity building needs of local governments
Establishing effective policies and by laws that allow private sector engagement and
for private sector led growth to leverage resources and expertise with strong input
of citizens
Establishment of performance and results based governance and management
Gender mainstreaming and enhanced participation by women in decision making
and development
Youth issues
Recognise the significance of managing rural-urban linkages to foster local economic
development and food security
Link post 2015 development agenda to decentralisation and local governance
 Transforming Local Government

Drivers Processes Outcomes

Transformation & Modernisation

Outcomes
Decentralisation Process Increased access to:
Governance & economic reforms Basic services & information
Democratisation
Participation Institutional reforms Secure tenure
Modernization Systems development Adequate shelter
Capacity building Markets and Jobs
Participation & inclusion
Deliverables Law and Justice
Increased autonomy
Employment creation
Effective local economic governance
Poverty reduction & MDGs
Citizen well-being and healthy communities

Policy
Data and information
Local autonomy & Decentralisation
Intergovernmental relations
Financing mechanisms
Human resource
Urbanisation and poverty
Globalization
Challenges
Policy Development
Institutional Capacity
Financing
Institutional Finance
Leadership & corporate
governance to manage change Revenue sharing
Organisational capacity to deliver Intergovernmental fiscal relations
outputs Resource mobilisation capacity
Traditional institutions Integrity transparency and
Legislative frameworks accountability
Partnerships
Conflict management
 Knowledge
Development

Capacity
Development

Knowledge Capacity
dissemination Enhancement
and Sharing and access to
services
 The Role of MDP-ESA

The Municipal Development Partnership (MDP)

for Eastern and Southern Africa was formed in
1991 with the mission of supporting the process
of decentralization and strengthening the
capacity of local governments throughout Eastern
and Southern Africa. For over 20 years MDP has
been supporting research, training, technical
assistance, decentralized cooperation and
knowledge dissemination and knowledge sharing.
 Role of MDP-ESA
Since 2010, MDP-ESA has partnered with:
the Commonwealth Local Government Forum (CLGF), the Municipal, le
Partenariat pour le Dveloppement Municipal (PDM), the Foundation of
the Peoples of the South Pacific International (FSPI) and the University of
the West Indies (UWI). to implement a programme on "Supporting and
strengthening Local Authority Associations at ACP national and regional
levels"
GIZ to support Local Finance Management and Participatory Budgeting in
the SADC region
ICMA and Cities Alliance to facilitate a pilot project on Strengthening of
Urban Local Governments in Uganda
USAID to focus on Leadership and Professionalising Urban Management in
Sub-Saharan Africa
MDP-ESA has also strong dedication to:
Urban agriculture and food security,
Climate adaptation, climate mitigation, housing, water/sanitation; and
Cross-cutting themes: gender, private/public partnerships, and local economic
development
 The Role of MDP-ESA

We commit to collaborate and assist EU in any

future activities related to decentralisation
and local governance. MDP is willing to offer
its regional and topical expertise, should EU
call upon us.
 Message
In 1972, Tanzania opted for abolition of local
government to emphasise the notion of a unitary state,
and centralized planning. At the end of his
administration, Mwalimu Julius Nyerere made the
following expression:

There are certain things I would not do if I were to start

again. One of them is the abolition of local governments
and the other was the disbanding of co-operatives. We
were impatient and ignorant. We had these two useful
instruments of participation and we got rid of them. It is
true that local governments were of taking decisions, but
instead of helping them, we abolished them. Those were
two major mistakes.