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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