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Transcript of 1 Supporting Decentralization as an Entry Point for Governance Reform in Sierra Leone Yongmei Zhou...
1
Supporting Decentralization as an Entry Point for Governance Reform in
Sierra Leone
Yongmei Zhou (AFTPR)Decentralization TG Presentation, Mar 7 2007
2
Sierra Leone: a poor post-conflict country Civil war (1991-2002) displaced half of population,
caused 20,000 death, and destroyed infrastructure and social capital
176th out of 177 in UN HDI ranking Infant mortality: 166 out of 1000; SSA average: 101;
world average 57. Under-5 mortality: 284 out of 1000; SSA average: 171;
world average 86. Life expectancy 37; SSA average: 46; world average: 67. Adult literacy: 36%; SSA average: 71%; world average
80% Weak governance and rampant corruption
3
A high-stake bet
2004, World Bank $25m for Institutional Reform and Capacity Building Project
2006, DfID and EU gave a $25m trust fund to the World Bank to top up IRCBP
2005, JSDF $2m for strengthening community collective action & engagement with local councils
2005, PHRD grant $900,000 for strengthening leadership of the decentralization process
Existing social action project (NSAP, 2003-2008, $35m) adopts a strategy to support decentralization and strengthen local council capacity
2007: Accelerated Child Survival Project ($35m) to strengthen gov health grant system and LCs capacity to deliver
4
Why betting on a decentralization-driven
governance reform program?
5
Some criteria for a good entry point for governance reform A good thing to do A good time to do it Some influential people lose sleep over it Can lead to visible and quick enough
improvement in something that people care about
Can generate further momentum and expand constituency for longer-term governance transformation
Q: Was devolution a good entry point in the Sierra Leone context?
6
A good thing to do, at least in theory Addressing a root cause of the civil war –
centralization of power and resources and resultant inequality and rampant corruption.
Opening space for political participation More transparent and equitable resource
allocation across districts Bringing resource closer to frontline
providers and hopefully better delivery Bringing the state closer to citizens and
hopefully building state legitimacy
7
Bad roads and poor communication make a small country too “big” to govern from Freetown
This map is based on GIS data for Sierra Leone. Road density is calculated as the km of road per square km of land in each chiefdom. The roads that have available GIS data are major A and B roads.
8
Window of opportunity & just-in-time support IRCBP preparation phase coincided
with GoSL preparation for LG legislation and elections
Immediate engagement with newly elected LCs
Start a virtuous cycle
9
MoF counting on fiscal decentralization to improve effectiveness of public spending Sustained efforts to improve effectiveness of
public spending in the past decade (see PFM reform history)
MoF frustrated with pervasive leakages of resources PETS 2002: less than 10% of all essential drugs could be
accounted for by District Medical Officers; less than 5% of all essential drugs were accounted for by periphery health units.
PETS 2002: only 72% teaching and learning materials reached the intended schools from District Edu Offices, arriving 170 days later than contracted.
PETS 2003: Receipt of seed rice: 8% before planting season; 35% during planting season; 57% after planting season
Establish Local Gov Finance Department to focus on fiscal decentralization
10
Citizen and business engagement
open and accountable local political process, civil society and media oversight, public-
private partnership
Local government capacity and
governance practice
Central government enabling conditions allowing fiscal and administrative autonomy,
adequate & predictable transfers, refrain from political interference, domestic
accountability mechanisms
Community collective action
IRCBP and partners work on conditions for effective local governance
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Do it in a way that expands constituency and opens more doors
12
Building constituency for decentralization through LC Rapid Results Initiatives Immediately after LC elections, central
government challenged and supported each LC to identify, design, and implement one Rapid Result Initiative that was Urgent and compelling Visible – people will notice the difference Can be translated into real impact in 100 days
MLGCD Decentralization Secretariat provided coaches
MoF disbursed Local Government Development Grant four months after elections
13
LCs did not disappoint LCs RRIs tackled diverse development issues:
water, sanitation, feeder roads, bridges, traffic, rice production, post-harvest loss. Examples of results: Travel time between Sewafe and Peya of Nimiyama Chiefdom of
Kono District reduced from 1hr to 15 minutes and transportation cost reduced from Le 5,000 ($1.75) to Le 2,000 (70 cents).
Increase the availability of high-yield quick-harvest Inner Valley Swamp Rice seeds in Pujehun District by 4,000 bushels within 90 days
Ensure the availability of safe and portable drinking water in the mains and laterals and 25 public taps in the Moyamba township within 90 days.
Total volume of Garbage in two lorry parks and two markets in Kenema Township reduced by 90% within 95 days.
Cheaper and faster than MDA projects
14
LCs RRIs to generate a virtuous cycle
Central Government and donors
willing to transfer resources to LGs with
good track record.
Progressive LGs givenopportunity to learn-
by-doing, establish track record, develop capacity and
motivate other LGs to catch up.
LGs exercise authority and accumulate capacity. LGs adopt inclusive accountable practices.
Citizens and firms perceive relevance ofLGs and engage in collective action(express demand for public service,
participate in co-production,hold LGs accountable,
pay taxes).
15
And preventing a vicious cycle of deteriorating local governance Inadequate and/or
unpredictabletransfers; limited
autonomy & authority; Weak monitoring
LGs: capacity low, Some corrupt
Citizens and firms discountLGs relevance and
do not participate in LGs decision process
and do not pressure forperformance.
Low impact of LG spending
16
Sector RRIs to give credibility to sector devolution Sector staff performing functions related to
primary health, crops/livestock, DEC schools received orientation of the Rapid Results Approach.
RRIs developed by sector teams Local council sector committees would
monitor the progress of the sector RRIs: accountability and partnership between politicians and professionals.
Each RRI team would include members from beneficiary communities
17
Central Government and donors
willing to transfer resources to LGs with
good track record.
Weak LGs givenopportunity to learn-by-doing, establishtrack record anddevelop capacity.
LGs exercise authority and accumulate capacity. LGs adopt inclusive accountable practices.
Citizens perceive relevance ofLGs and engage in collective action(express demand for public service,
participate in co-production,hold LGs accountable,
pay taxes).
Are purse-holders
aware of LG achievemen
t and willing to further
empower progressive
LGs?
18
MoF now treats grants to LCs as high-priority spending
Actual grants transfer to local councils 2004-2006
-
5,000,000,000
10,000,000,000
15,000,000,000
20,000,000,000
25,000,000,000
AdministrativeGrant
Other Grants Solid WasteManagement
Health CareServices
Agriculture andFood Security
Rural WaterServices
Local Govt DevGrant(WB+
GoSLCounterpart)1
TOTAL
FY04 disbursement FY05 disbursement FY06 disbursement
19
Although timing of transfers remain to be improved
Timing of disbursement for grants to Local Councils (2006)
0%
20%
40%
60%
80%
100%
Administrative Grant Other Grants2 Solid WasteManagement
Health Care Services Agriculture and FoodSecurity
Rural Water Services TOTAL
Q1 Q2 Q3 Q4
20
Lobbying Accountant General to simplify transfer process Cumbersome bureaucracy needed urgent
reform: for every quarterly payment of every grant to 19 councils, 237 are required before a payment can be made. 237 signatures per grant per quarter * 14 grants * 4 quarterly payments/grant = 13,272 signatures!
Recently consolidated grants and forms
21
Some donors considering using GoSL grants system for resource transfer World Bank and DfID health sector support
to top up financing GoSL LC grants system, improving M&E, supporting district health management teams to implement their sector plans and budget
DfID water sector support to follow similar approach
World Bank and DfID/EC co-financing the block grant for LCs (Local Gov Dev Grant): allow LCs discretions and build in incentive in grant allocation formula.
22
Need to continue expanding constituency for decentralization
Perception of agency commitment to decentralization by 110 participants in the 2nd National Decentralization Dialogue (Dec 2006)
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
World Bank
IRCBP team
Min Health and Sanitation
Min Food and Agric
MoF
MLGCD
National Commission for Social Action
Sierra Leone Water Company
Min Education
Sierra Leone Road Authority
23
Did it turn out to be a good thing to do? Is devolution bringing the state closer to people? Are LGs responsive and accountable? Does devolution improve access to and quality of
services? Does improvement in public services increase
citizens’ trust in government? Does improvement in public services lead to
improvement in tax compliance? Will high-performing councilors have more
promising political career? Will more competent and committed people
stand for LG elections in 2008?
24
Building LCs capacity is not the hardest part
25
LCs meeting some min standards for governance practice Source: Comprehensive Local Government Performance Assessment (Nov 2006)
Legend5 minimum conditions
4 minimum conditions
3 minimum conditions
2 minimum conditions
0-1 minimum conditions
7 Minimum conditions1. Financial management
2. Development planning
3. Budgeting and accounting
4. Procurement
5. Transparency and accountability
6. Project implementation
7. Functional capacity of LG
26
LCs adopting good governance practices, many not yet adopted by ministries Source: Comprehensive Local Government Performance Assessment (Nov 2006)
Legend
70 - 88 points
60 - 69 points
50 - 59 points
30 - 49 points
Performance measures1. Management, organization and institutional
structures
2. Transparency, openness, participation and accountability
3. Planning systems and project implementation, M&E
4. Human resource management
5. Financial management, budgeting and accounting
6. Fiscal capacity and local revenue mobilization
7. Procurement and contract management
27
District Medical Officers embraced decentralization Primary health service delivery responsibilities
devolved to LCs in 2005, along with tried grants DMO is part of LC Management Team and a co-
signatory of LC health grant account DMO enjoys operational autonomy
“Decentralization has stopped the tide of brain drain among medical professionals because we now have
interesting work to do.”“Decentralization allows us to quickly respond to disease
outbreaks. We don’t have to wait for the ministry.” “Decentralization means if I have a problem I can knock
on the doors of our council rather than sitting on a long bench in Youyi Building for a week and waiting
for an audience with a ministry official.”
28
Health Care Services at PHUs did not deteriorate after devolution in 2005Source: IRCBP Health Clinics Surveys 2005-2006
0 .2 .4 .6 .8 1
with a latrine
with a working fridge
with an improved water source
in a good-quality building
with patients present
open at arrival
fraction of clinics...
2005 2006
29
Health Care Services at PHUs did not deteriorate after devolution in 2005 (continued)Source: IRCBP Health Clinics Surveys 2005-2006
0 .2 .4 .6 .8 1
important supplies in stock
important drugs in-stock
required staff posted
average fraction of...
2005 2006
30
Stimulating citizen demand for good governance is easier said than done
31
Performance comparison, peer learning, and political competition Hypothesis: with a good communication
program, comparative performance data can serve as Stimulant for peer learning and performance
improvement Trigger for political competition and civic
activism Whether disseminating comparative
performance information among electorates will affect political fortune of councilors remain to be seen.
32
Good-practice LCs get award from MLGCd and bonus grants from MoF, but are people asking their laggard LCs tough questions?
Legend
70 - 88 points
60 - 69 points
50 - 59 points
30 - 49 points
Performance measures1. Management, organization and institutional
structures
2. Transparency, openness, participation and accountability
3. Planning systems and project implementation, M&E
4. Human resource management
5. Financial management, budgeting and accounting
6. Fiscal capacity and local revenue mobilization
7. Procurement and contract management
33
Are people wondering why councils are paying such different prices for similar
furniture? Cost of an average set of office furniture (56 conference chairs, 4 computer workstations, 7 office desks, 2 small conference tables, 1 large conference table, 4 executive desks), using actual unit prices paid by LCs
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
34
Rural people start knowing their councilors but they are far more familiar with their chiefsKnowing the authorities
Source: GoBifo/ IRCBP/ ENCISS Joint Household Survey in Bonthe and Bombali Districts (Dec 2005)
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
Bombali District Bonthe District
Percent of respondents able to correctly name the Chairperson of their Local Council
Percent of respondents able to correctly name the Local Councillor from their ward
Percent of respondents able to correctly name their Section Chief
Percent of respondents able to correctly name their Paramount Chief
35
Gender and age gaps in political awareness, activism and confidenceSource: GoBifo/IRCBP/ENCISS joint household survey in Bombali District and Bonthe District (Dec 2005)
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
% who attended a meeting inthe last year and spoke at thelast meeting they attended
% able to correctly name LocalCouncillor or Local Council
Chairperson
% reported voting in lastgeneral election (2002)
% reported voting in last localgovernment election (2004)
% believing they have some orlittle chance (rather than nochance) in changing unjust
chiefdom law
% believing they have some orlittle chance (rather than nochance) in changing unjust
local council law
Female (8-24) Female (25-35) Female (>=36) Male (8-24) Male (25-35) Male (>=36)
36
Whether devolution can sustain itself and lead to wider governance reform remains to be seen Will local politicians fight against
recentralization attempts? Will competition among local
governments give pressure for performance improvement?
Will local political markets allow for more credible alternatives to emerge for future national elections?
Can culture of inclusion and accountability be built from below?
37
What next?Four tough nuts to
crack
38
1. Need the missing leg of the stool
Decentralization
Human Resource Management
Reform
Public Financial Management Reform
39
Lack of HRM reform progress in central gov poses binding constraints
on decentralization Lack of applicants for LC jobs, despite more
attractive monetary offers than central gov equivalent positions
Main concerns: career prospect, job security Recommend
Allow mobility between civil service and LG service Work with tertiary institutions and professional
organizations to establish curriculum, certificate, diploma and “flood” the market with talents central and local gov need
Same constraint as 2003: leadership?
40
2. Will LCs ever be self-sustainable?
LC own revenue performance 2005 and first 3 quarters of 2006
0
1000
2000
3000
4000
5000
6000
(Leo
ne p
er c
apita
)
FY05 FY06 Q1-3
41
3. Traditional authorities & elected local councils Lack of policy clarity on roles and
responsibilities indicates a deeper ambivalence among political elites
42
4. PIU & government bureaucracy IRCBP project team is entirely contract
staff (all Sierra Leone national) Performance and incentive far exceeds
that of parent ministries (MoF, MLGCD)
Tension & policy and operational bottleneck
Will integration be possible?