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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

atNharnet.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 practicesand 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 thetransfer of responsibilities and capacities through decentralization.

Decentralization is not an alternative to centralization. Both are needed. Thecomplementary 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 removesdecisions from the local and national stage to the global sphere of multi-nations

or non-national interests. Decentralization on the other hand brings decision-

making 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 commitmentand 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 functionshould 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


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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 systemdistributing power tolegislative, executive and judicial branches of governmentexercisedon 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. NharnetTeam.

***

Introduction: Sustainable Human Development (SHD) as a crucial path for povertyreduction 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 effectiveand 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


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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 responsibilitiesbetween 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;


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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 non-

national 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, societalactors and social sectors. The geographic entities include the international, national, sub-

national, 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


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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 includesthe 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 relationshipsDecentralization 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


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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 andsystematic 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 ofdecentralization, 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.


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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 frameworkto

ensure clear division of responsibilities, accountability, and transparency.

Issue 6:Regional and local capacities for decentralization should be fully assessedprior

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 befound 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 mobilizedamong 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 mostsuccessfully 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.


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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 topromote 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 thelocal 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.)

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