Functional Review IN Cambodia Shelley Flam consultant

FUNCTIONAL REVIEW IN CAMBODIA

SHELLEY FLAMCONSULTANT

German Technical Cooperation

Administrative Reform and Decentralization ProgramImplemented by GTZ

About this Presentation

This presentation – Looks at how functional review fits into D&D

reform process Presents ideas about designing an overall

process to review government functions in order to identify which functions to transfer to sub-national councils

Discusses some guiding concepts for deciding what functions to transfer and how

The presentation expands on the legal framework (Organic Law), but does not come from the law

Where does functional review fit in D&D reform?

Background

In 2001, the Law on the Administration and Management of Communes/ Sangkats was approved

1,621 commune/sangkat councils were elected and established in early 2002

Councils have general role to serve the interests of their citizens, to improve socio-economic development

Councils have some specific decentralized functions, i.e. to protect and conserve the environment & natural resources

But councils have focused almost exclusively on infrastructure

Councils also delegated functions (i.e. civil registration delegated by MoI)

Functional Review and D&D Reform

In May 2008, the National Assembly/Senate approved the Organic Law that establishes councils for Phnom Penh, provinces, towns, districts and khans

Elections for these councils are expected around April 2009

The Organic Law provides that councils for Phnom Penh, provinces, towns, districts and communes will receive specific sectoral functions to implement

The Organic Law provides for these councils to have a unified administration aiming at coordination of sectors in the jurisdiction of the councils

… Functional Review and D&D Reform Every sector (i.e. education, health, NRM) must

be reviewed to decide which functions to transfer to which councils, or which to retain at the national level

When a council receives a function, it must also receive the corresponding resources to implement the function effectively (resources = finances, personnel, assets)

Each council, therefore, will be transferred and will implement specific functions, and will have corresponding resources to do

so

Definitions of Key Terms

Will look next at definitions of – decentralization delegation deconcentration functional review

Definitions of Key Terms

Decentralization = the transfer/”assignment” of functions and resources to elected sub-national councils that have local discretion to implement the functions and utilize the resources, and that are accountable to citizens (highest level of local discretion)

Delegation = the transfer of a function to sub-national councils to be carried out on behalf of the delegating authority, i.e. a ministry (less local discretion)

Deconcentration = the transfer of tasks from a ministry to its sub-national units, i.e. provincial departments or district offices (often no/little scope to make decisions)

Examples

Definition: Functional Review Process

The process of analyzing a sector in order to identify its functions, then determining whether each function should be allocated to a level of sub-national council

For functions that are to be allocated to councils, the process determines whether the function is obligatory or permissive, whether it should be assigned (decentralized) or delegated, and what resources & capacity development are required

Definition: Functional Review Process

The process also identifies what functions should be retained as national level functions, and which of those national level functions should be deconcentrated to line ministry sub-national units

Why is functional review important to sector ministries?

Implications for Sector Ministries

The Organic Law establishes a National Committee to implement the law (NCDD)

A responsibility of the NCDD is to oversee the review of each sector to determine which functions and resources should be transferred to councils

That process will require participation of concerned ministries and should also involve councils Which functions are best decentralized / delegated /

deconcentrated / retained at national level ? What are resources correspond to a function to be

transferred?

What are some key considerations for designing a process for functional review?

Key Considerations

Space for political buy-in and consensus at all levels Membership of new NCDD and its structures, and

other informal opportunities at national level Mechanisms to engage stakeholders at sub-national

levels (councils, line ministry departments/offices) Mechanisms to engage civil society

Long term vision – predominant roles for each level of council strategy for decentralization versus

deconcentration

… Key Considerations

Continuity Critical that the process of transferring functions

does not unduly disrupt currently provided services

Equity issues Strategic Framework and Organic Law stress the

promotion of equity for women & men, children, youth, the poor, minority and ethnic groups

Equity must be considered in the functional review process - this will require conscious effort


Sectors, not Ministries Not all ministries correspond to a single sector Not all sectors correspond to a single ministry

Specifying exclusions The NCDD may choose to identify matters

that are ‘off the table’ If so, how to ensure that the list is appropriate

Creating in-country capacity Functional review will be an intensive exercise

for ~10 years, then an on-going task


Phasing Critical in terms of capacity to review

sectors at national level, and capacity of councils to absorb new functions

Which sectors first? (Organic Law and NSDP) Geographic sequencing? Sequencing by sub-national level? First package of functions in each sector? Issue of symmetry (significant differences in

size of jurisdictions)?

What entry points for consensus building (key consideration #1) might the NCDD offer in terms of its composition and the composition of its structures?

New NCDD

NCDD is at the centre of implementation of the Organic Law, including functional review

NCDD’s central role in functional review should be considered when determining its leadership and membership – What are options for NCDD leadership? What are options for NCDD membership? What are options for NCDD structures?

…

ButtonNational Committee

NATIONAL COMMITTEE AND ITS STRUCTURES

Secretariat

Other Commissions

Commission for

Fiscal and Financial Affairs

Commission for

Functions and Resources

SectorTechnical Working Group

Technical Working Group




SectorTechnical Working Group

Commission for

Personnel of Sub-National

Administrations



Technical Working

Group (pool of officials)

What might a functional review process look like?

Proposed 3-Step Process for Functional Review

Three-step process is proposed here for functional review –

Preparatory phase Technical component Political component

PROPOSED APPROACH TO FUNCTIONAL REVIEW PROCESS

NCDD APPROVES PROCESS FOR

FUNCTIONAL REVIEWAND APPROVES

TECHNICAL GUIDELINES

Technical guidelines focus on sector studies to inform

the functional review process

The technical guidelines deal with -- key actors to involve

- mechanisms for consultation and participation

- addressing equity issues- common terminology/typology- steps to conduct sector studies

EDUCATION

EDUCATION SECTOR STUDY IS CONDUCTED AND

RECOMMENDATIONS MADE

FUNCTIONS & RESOURCES COMMISSION REVIEWS

RECOMMENDATIONS FROM STWGs AND MAKES OWN

RECOMMENDATIONS TO NC

NC REVIEWS

RECOMMENDATIONS FROM

FUNCTIONS AND RESOURCES COMMISSION AND REACHES

CONSENSUS

POLITICAL COMPONENTTECHNICAL COMPONENTPREPARATION

NREM

NREM SECTOR STUDY IS CONDUCTED AND


HEALTH

HEALTH SECTOR STUDY IS CONDUCTED AND


FOR EACH SECTOR, NCDD CREATES A SECTOR TECHNICAL WORKING GROUP (STWG) COMPRISED OF TECHNICAL OFFICIALS FROM

NCDD MEMBERS AND CONCERNED MINISTRIES

EACH STWG CONDUCTS A SECTOR STUDY

AGRICULTURE

AGRICULTURE SECTOR STUDY IS CONDUCTED AND


OTHER SECTORS(including sectors relevant to NC

members, ie financial management, prisons, sub-national civil service)

Proposed 3-Step Process for Sector Studies

Map functions, corresponding

resources (finances, personnel,

assets) and key stakeholders -

1. review background materials (legal

framework, RGC powers & functions database and existing studies/analyses)

2. obtain information about current functions and resources through meetings/field visits at

national and sub-national levels

ST

EP

1M

AP

FU

NC

TIO

NS

, R

ES

OU

RC

ES

& S

TA

KE

HO

LD

ER

S

ST

EP

2ID

EN

TIF

Y S

UC

CE

SS

ES

, C

ON

ST

RA

INT

S,

PO

TE

NT

IAL

Identify successes,

constraints, initiatives and future potential in

service delivery, through meetings/field

visits at national and sub-national levels

ST

EP

3D

EV

EL

OP

RE

CO

MM

EN

DA

TIO

NS

& R

EP

OR

T B

AC

K Develop recommendations

for functional review in the sector -

- first package of functions for transfer

- appropriate levels for allocation

- corresponding resources- whether functions should

be obligatory or permissive, assigned or

delegated - any minimum basic

services- timeframe/phasing of

transfers- required capacity

development- necessary amendments

to legal framework

THREE-STEP SECTOR STUDIES

Actors Involved in Sector Studies

Proposed that sector studies be conducted by sector technical working group under the Functions & Resources Commission

Sector technical working group members are technical officials from concerned ministries plus the ministries that are involved cross-sectorally

Proposed that a sector technical working group periodically consult with a sector-specific resource group (sub-national stakeholders, including sub-national administrations; relevant depts/offices, and councils; civil society; academia)

First Sectors for Review

The Organic Law (Article 215) suggests that the following sectors will be reviewed first –

Agriculture Education Forestry, natural resources, environment Health, nutrition and related services Industry and support to economic

development

….

First Sectors for Review

And – Land use Electricity production &distribution Water management Infrastructure and facilities related to the above Special needs (i.e. Phnom Penh, Siem Reap)

These sectors are consistent with the priorities set out in the National Development Strategic Plan

End of Part 1 of the presentation

Thank you

PART 2

FUNCTIONAL REVIEW IN CAMBODIA: KEY

CONCEPTS

Key Concepts for Functional Review

Part 2 of the presentation looks at the following key concepts –

unbundling functions obligatory functions/minimum basic

services concept of subsidiarity functions common across sectors (if time

permits) corresponding resources

Unbundling Functions

A function is an action that delivers or contributes to the delivery of a service. If refers to a responsibility or a set of responsibilities that can be allocated to a governance unit

primary education versus building primary schools

The first exercise in functional review is to identify what are the functions in a sector

… Unbundling Functions

Functions are identified by ‘unbundling’ a sector

Unbundling is the process of dividing a sector into its parts until a function can be identified for allocation to a level of council (or it is determined that there are no functions that can appropriately be transferred to councils)


Once functions are unbundled and allocated to the appropriate levels, different levels of governance will have their own functions within the same sector

For instance – commune councils might be responsible for health

posts district councils might be responsible for district

hospitals provinces might be responsible for provincial hospitals

and to inspect health posts and district hospitals National level might be responsible to legislate

minimum standards for health posts and hospitals


The RGC database on powers and functions, supported by ARDP, will be an important tool to assist in identifying functions, determining where they are currently implemented, and, where applicable, for suggestions about future arrangements

Obligatory Functions/Minimum Basic Services

Once a function is identified, the Organic Law requires that the function be identified as obligatory or permissive

An obligatory function is one that the council MUST implement

A permissive function is one that the council may choose to implement or choose not to implement

It may also be desirable to indicate what are the basic expectations (minimum basic services) for a function, i.e. a health post for every xx families

Concept of Subsidiarity

Concept of subsidiarity is set out in the Strategic Framework (June 2005)

Concept of subsidiarity is a guide for deciding where to transfer a function

The concept of subsidiarity is that a function should be transferred to the lowest level that can effectively implement the function

When thinking about where to transfer a function, consideration starts at the lowest level

Criteria for Concept of Subsidiarity

Some criteria for applying the concept of subsidiarity include –

economy of scale (where the unit cost is lowest) population size/service benefit area cost-benefit (balancing cost and benefit to citizens) equity issues (where equitable outcomes are more

likely) need for high level of accountability (i.e. potable

water) …

… Criteria for Concept of Subsidiarity

local preferences (difference across jurisdictions) local conditions (differences across jurisdictions, i.e.

geography) spillover (negative consequences to other jurisdictions) traditional local functions (i.e. conflict resolution) local information (i.e. whether teachers attending

class)

…

… Criteria for Concept of Subsidiarity

inter-jurisdictional and local coordination/cooperation (scope/reason for councils to cooperate, i.e. drainage system)

sectoral coordination (need for strong cross-sectoral coordination, i.e. land use planning)

international lessons learned weighing and balancing all the criteria

Common Functions Across Sectors

Every sector will have its own distinct functions Every sector will also have generic management

functions in common with other sectors, for instance – Policy setting Regulation (i.e. setting standards) Legality control/enforcement Planning, budgeting, M&E Determining beneficiaries at local level Ensuring public participation Implementation of services, management of assets

Corresponds to RGC Powers and Functions Database

… Common Functions Across Sectors

With certain common functions across sectors, it may be possible to have rules of thumb (but not stringent rules!) about where those common functions should typically be transferred

For instance, overall policy setting = national function?

Implementation of services = sub-national function?

Ensuring public participation = commune function?

Corresponding Resources

Transferring a function without the corresponding resources (finances, personnel, assets) = empty mandate

When a function is transferred, at the same time its corresponding resources must be transferred

Just as functions will be re-allocated, therefore, finances, civil servants and state assets will be re-allocated/re-deployed

Finances, personnel and assets will follow functions Part of the functional review process is to identify

what resources correspond to a function to be transferred

Big Picture

Clear that functional review is an immense, complex and politically sensitive task that will take years

Yet, governments around the world have introduced D&D reform

Why?

Why Introduce D&D Reform?

Rationale was discussed in another presentation. To summarize the potential benefits –

More opportunities for citizens to participate in governance and influence decision-making

Government more responsive to real local needs More responsive and effective service delivery More sustainable development activities More transparent and accountable governance Contribution to poverty reduction efforts

Big Picture

How to maximize chances that the benefits will be realized?

Make good decisions about which level should receive functions (subsidiarity as a guide)

Ensure that functions are accompanied by their corresponding resources, and capacity development

Include mechanisms to require councils to practice principles of good governance

Thank you

Documents

Functional Review IN Cambodia Shelley Flam consultant