Rolling down the state: decentralisation and

development

Basic definition is the delegation of authority

Has become very popular in recent years This is due to democratisation and

arguments about technical efficiency Various types of decentralisation

World Bank identifies four types of decentralisation:

politicalfiscaladministrativemarket

Turner and Hulme (1997) identify two bases for decentralisation:

TerritorialFunctional

And three forms for each base Within formal political structuresWithin public admin.From state to private

NATURE OF NATURE OF DELEGATIONDELEGATION

BASIS FOR DELEGATIONBASIS FOR DELEGATION

Territorial FunctionalTerritorial Functional

Within formal Within formal political structurespolitical structures

DevolutionDevolution

(political (political decentralisation, local decentralisation, local government, democratic government, democratic decentralisation)decentralisation)

Interest group Interest group representationrepresentation

Within public Within public administrative or administrative or parastatal structuresparastatal structures

DeconcentrationDeconcentration

(administrative (administrative decentralisation, field decentralisation, field administration)administration)

Establishment of Establishment of parastatals and quangosparastatals and quangos

From state sector to From state sector to private sectorprivate sector

Privatisation of devolved Privatisation of devolved functions (deregulation, functions (deregulation, contracting out, voucher contracting out, voucher schemes)schemes)

Privatisation of national Privatisation of national functions (divesstiture, functions (divesstiture, deregulation, economic deregulation, economic liberalisation)liberalisation)

Forms of Decentralisation

Source: Turner and Hulme 1997

◦ Decentralisation is linked to good governance and democratic governance

◦ Governance is ‘the action or manner of governing’◦ Not simply the government but also includes

ways in which the population, civil society and private sector participate in governing

◦ Decentralisation is a mode of governance expected to involve a variety of actors and bring a range of benefits

Responsive to local needs Empowering the poor Efficiency Reduce resistance to change Reduce congestion in central government Unity and stability Political participation Mobilisation of resources Coordination Accountability

Narrow local focus or secession Centre sheds functions Centre regains power through regulation Local elites capture benefits Unpopular Capacity problems Inadequate funding Inequality

Poor excluded from decision-making Low expectation by community of officials Local bureaucracy instead of central

bureaucracy

Indonesia

In 1998 President Suharto was ousted His regime was centralised authoritarian In 1999 an interim government passed

radical decentralisation legislation Law 22 on regional governance and 25 on

central-local financial arrangements

District(kota)

District(kabupaten)

Province(propinsi)

Sub-district(kecamatanSub-district

(kecamatan)

National Government

Urban community(kelurahan)

Village(desa)

TERRITORIALSUB-DIVISIONS ININDONESIA

Legislation was a radical change from old arrangements

Old regional hierarchy removed Province stripped of considerable power Focus of development to be the districts

(kabupaten and kota)

Large number of functions decentralised to districts

Districts responsible for most services Power of local assemblies increased Various methods of accountability for head

of region National and local administrative

structures combined in districts

2.4 million public servants transferred Representative structure at village (desa)

level A general allocation grant (DAU) replaced

other major financial transfers Revenue-sharing on natural resources Grants for special initiatives (DAK) New decentralisation laws in 2004 gave

some authority back to provinces

Human resource management (HRM) remained under central control

Need for a more strategic approach to HRM identified◦ Improved recruitment and selection◦ Making merit more important in promotion and

advancement◦ Making training demand-oriented◦ Rewarding performance◦ Managing performance for organisational improvement

Are such changes possible under conditions of clientielism?

Problem of Clientelism

P

CC/P

CC/PC

C C

CC

C

C

◦ Purpose of decentralisation should be clear◦ Function and finance should be matched◦ Brief laws should contain clear guidelines for

implementation◦ Radical decentralisation laws create huge

implementation problems◦ Rapid implementation schedules create problems◦ Expect the unexpected – 2001-2011, 292 districts

became c500 districts; 26 provinces became 33 provinces

◦ Local governments can be the source of innovation

◦ Kota Biltar - block grants A portion of city government’s budgets for small

projects allocated direct to communities Mostly infrastructure at first

◦ Maros – participatory planning Citizen-driven planning assisted by NGOs Local law mandates citizen participation

◦ Lumajang – water provision Helps poor communities gain access to safe water

supplies and high quality sanitation services using community participation

In Philippines since 1993 Galing Pook awards for innovative practices in local government

Judges look for◦ Positive results/impact◦ Popular participation and empowerment◦ Innovation◦ Transferability◦ Sustainability◦ Efficiency

230 programs of 152 local governments have won awards

Galing Pook winners

Turning trash into cash in Cebu City

Peace and development in Sarangani Province

Beyond Free Funeral Service – Baliwag, Bulacan

Municipal Query: Participatory Governance - Iloilo

Cambodia

Post-Khmer Rouge (1979) rebuilding the state

Very few educated people Aim for bureaucratic centralisation Interest in decentralisation with increased

political stability and improved functioning of bureaucracy

◦ In 2001 government adopted a policy of cautious incremental decentralisation

◦ Policy involves both political decentralisation and deconcentration (D&D)

◦ Political decentralisation is through commune councils (about 1600 of them)

◦ Popularly elected bodies with very limited budgets and only one administrative staff

◦ Involved in interest articulation and some participatory planning

Capital

Municipality

Province

National Government

District(srok)

Commune

District(Khan)

Sangkat Sangkat

TERRITORIAL SUBDIVISIONS INCAMBODIA

A Commune Council Building

Deconcentration (admin. decentralisation) to promote improved service delivery

Slow process left to the initiative of individual ministries

Has been progress in health, education and development planning

Ministries generally reluctant to let go of their functions and funds

Commune Councils judged by government to have been successful◦ Institutions for participatory planning◦ Accepted as legitimate institutions◦ Improved peace and security◦ ‘strengthened, stabilized and legitimized the

central government’◦ Platform for other reforms

New Organic Law on subnational government in 2008◦ Referred to as subnational democratic

development and ‘partial autonomy’◦ Creation of ‘unified administrations’ at

provincial and district levels◦ Not yet clear which functions and what funding

to be decentralised◦ ‘representative government’ at province and

district levels – councils elected by commune councillors not popular vote

Decentralisation continues to be a popular policy

There can be major gains in democratisation and service improvement

But there are obstacles and difficulties which may prevent the realisation of these gains especially in very weak post-conflict states