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Mozambique’s emerging Program for Decentralized Planning and Finance

(DPFP)

Dr. Rodney ReviereNorbert Eulering

GTZ Mozambique

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Background

Population: 19 million Surface area as big California and

over twice the size of Germany Poverty Index: 54% + 70% of population live in rural areas 1975: Independence 1978: Centrally planned economy 1978: Destabilization 1986: IMF, transition to market-

based economy 1992: Peace Accord 1994: First multi-party elections

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Local Government in Mozambique

Little history or culture of local, democratically elected, government

11 provinces, 128 districts (+ Administrative Posts & Localities)

State is still relatively highly centralised

1995: Provinces get some discretion over investment budget

1997: Municipalisation: creation of 33 elected municipal councils (elections in 1998)

1998: Introduction of decentralised planning

2005: Approved the law of “Local Organs of the State” (LOLE)

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Decentralized Planning

Initially donor led

1996 Piloted in Manica- (GTZ) and then in Nampula-Province (UNCDF/UNDP)

1997-98 Government undertakes study and issues guidelines

2003 Donor desire to unify approaches and work more closely together - donor working group on decentralization starts

2005 Government takes decision to scale up existing projects (GTZ; UNDP; WB) to a national program which covers the whole country and defines in general lines it's overall objective

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Objective

Empower citizens and increase local government‘s capacity to plan and manage their own sustainable socio-economic development

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Current state of affairsJoint evaluation with intention of harmonizing three projects:

Backward- looking evaluation of the 3 projects against the defined objective and a common framework to identify differences and best practices

Forward- looking assessment of legal and policy context to make recommendations as to the design a single national DPFP

Propose design changes to projects so that they could effectively support a national DPFP (including financial arrangements)

National workshops to discuss findings including all stakeholders, presided over by the Minister of Planning and Development

Following the evaluation a series of workshops to flesh-out the basic framework and produce a log-frame for national program

Yearly plans for each province to be developed in the provinces based on the national log frame

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DPFP - PrinciplesShared set of guiding principles:

The district is the base for planning and development

We work within existing Legislation, guidelines and methodologies

The Government has the leadership of the program

Financing is done through national systems and processes (on budget)

It is a process of knowledge management & continuous learning

We create a dynamic and facilitative environment

We want to facitlitate good governance & transparency

The CD leds to improved service delivery in the district

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DPFP - Characteristics Strategy and methodology based on “best practices” identified in

joint evaluation

“One” Single planning and reporting framework

Differentiated implementation arrangements but common objectives and methodologies

Common resource pool to support program implementation at national level and in all provinces

In-kind contributions and financial contributions

Phased shifting from project to program approach

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DPFP - CD Elements Overall goal is increase local capacity

Pilot to scale based on best practices (how to do things different and how to get people to do things different)

Use of national systems where they exist

Program is an open system with room for innovation and improvement

Multi-level intervention- learning between levels

Bottom-up and top-down – participative approach (practice precedes policy)

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DPFP Program Support German Cooperation (GTZ/KfW/DED/InWent)

UNDP

World Bank

Ireland

The Netherlands

Norway

Sweden

Switzerland

Open to others

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Alignment of the Main Actors Government side – President declares districts as poles of

development; approval of new law (LOLE) and first major step towards fiscal decentralization; government expressed preference for joint approaches

Donor side – Paris Declaration provokes new thinking; timing - end of phase for 2 of 3 projects, mid-term review for third; WB project manager moving to Johannesburg helped a lot

Framework conditions: Paris declaration, donor working groups in place and functioning which provided/promoted direct contact between donors supporting decentralization

Common belief towards developing capacity – learning by doing

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Lessons Learned Not over planning, instead get things moving and try to keep

them moving;

Don’t let the details stop you;

Expect mistakes and create systems to learn from them

Learning by doing it right. Learning by doing can be misleading: ‘doing’ isn’t enough if it is done incorrectly (practice makes consistent, not perfect) so the importance of long-term TA to provide coaching all along the process;

Use of common processes (planning, budgeting, procurement, monitoring, etc.) is essential so that same learning is done throughout the system.

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Closing thoughts

I Hear, I forget

I See, I remember

I do, I learn