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 Budget (US$) % of Total

Classification Area Budget
Socio-Economic 4,510,404,917.0 26.89%
Management 0
Rule of Law and Human 1,145,495808.58 6.83%
Rights
Leadership Building 188,652,515.17 1.12%
Electoral System 109,325,207.46 1.17%
Communication, Press, & 109,325,207.46 0.65%
Media
Public Administration 5,511,500,872.8 32.86%
4
Civil Society 924,815,321.97 5.51%
Empowerment
Source: Compiled by Professor Andres de Guttry
Peace and Stability 1,586,431,920.5 9.46%
1
 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
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
 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
Governance & economic reforms Increased access to:
Democratisation
Institutional reforms Basic services & information
Participation
Modernization Systems development Secure tenure
Capacity building Adequate shelter
Markets and Jobs
Deliverables Participation & inclusion
Increased autonomy Law and Justice
Employment creation
Effective local economic governance
Poverty reduction & MDGs
Citizen well-being and healthy communities

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

Capacity
Developm
ent

Knowledge Capacity
disseminatio Enhancem
n and ent and
Sharing 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.