Local government finance and fiscal decentralization. The system shall be such as to ensure the full realization of democratic governance at all local government levels. This paper argues that the system creates incentives for local. Estimates suggest that decentralisation is being pursued in over 80% of developing countries worldwide. A cautionary tale work in progress michael kremer1, sylvie moulin, robert namunyu april 15, 2003 abstract kenyas education system blends substantial centralization with elements of local control and school choice. Decentralisation and local governance theory and the practice in botswana article pdf available in development southern africa 174. Decentralization in africa decentralization, democracy. In a yearlong study of decentralization in bolivia, i seek to combine the standard. The decentralisation policy now before the house has certain key characteristics which could be summarised as follows.
Section 3 introduces the second, qualitative half of the paper, which examines local government up close and in detail in viacha section 4 and charagua section 5. The undp role in decentralization and local governance vi foreword undp and the german federal ministry for economic cooperation and development bmz collaborated on a critical assessment of undp support to decentralization and local governance. This is a study of decentralization from the perspective of its local consequences. Decentralization shall be a principle applying to all levels of local government and in particular, from higher to lower local government units to ensure peoples participation and democratic control in decision making. Defined as fiscal decentralization, this tendency is deemed an effective strategy to improve the efficiency of public goods and services provision, thereby fostering economic development oates, 1972.
Projectprogram completion reports local government finance and fiscal decentralization reform program subprogram 1. The changes also introduced the possibility of holding local referenda and the right to petition. The project will help improve efficiency of public expenditure and boost municipal revenues streams for the provision of better basic services and to assist local economic development and job creation. These potential bene ts of decentralization have attracted a very diverse range ypranab bardhan is professor of economics, university of california, berkeley, california. Section 6 analyzes why government differed so much in. Further resources the following resources were included in gsdrcs gateway. Concept paper on decentralisation and local governance 2 1. Adb is supporting the development of efficient and transparent local governments in the philippines.
Estimates suggest that decentralisation is currently being pursued in over 80 per cent of developing countries worldwide. With the german government having evaluated its own decentralization projects in countries. Introduction sdc has been implementing projects in support to decentralisation and local governance for about 15 years. The multiple author book is not just one of many similar around the globe, as it encompasses contributions. Different levels of government administer resources and matters that have been delegated to them, generally through a constitution. It may simply mean that power is transferred from national to. Key words local government, accountability, political competition, instability, limits on power, health 1. Decentralization, local government reforms and perceptions of. Decentralisation and local government topic guide about this topic guide gsdrc. Decentralization and local government management dai. Local autonomy selfgoverning the granting of more powers, authority, responsibilities and resources by the national government to local government units in order to be selfreliant and active partners decentralization transfer of power and authority from central institution to lower or local levels of a government system. For many people, local government is the part of government that most directly impacts on their lives, particularly via the provision of services like water, sanitation, and primary education and healthcare.
Japan, on the other hand, follows the system of singletier local government beneath the province or region. In some countries decentralization has resulted in greater participation in development activities, more effective and efficient administration of local and rural development programs, and expanded administrative. The twotier system appears to have positive advantages in terms of. History, impact, challenges and next steps chunli shen. The new york state department of state division of local government services. Decentralization in africa decentralization, democracy and.
They cannot be created merged or abolished by ordering legislation passed by the central government. In many developing countries, key resources for public service delivery are controlled entirely in the capital, where life is often starkly different from that in the provinces, and where the voices of constituents may be faint. I am glad to present this publication, local governance and decentralization. Political decentralization seeks to address societal issues by handing the citizens increased power through an elected representative government. Kingdom of lesotho local governance, decentralization and. It also takes place alongside broad economic and political reforms and. Instead, it is the local level of government that really matters for individuals and their families. Decentralization the transfer of authority and responsibility for public functions from the central government to intermediate and local governments or quasiindependent government organizations andor the private sector is a complex multifaceted concept. Jan 12, 2016 the concept of decentralisation and local government has gained much attention in recent years after the idea has been constantly promoted by opposition parties and leading research groups in. From government decentralization to decentralized governance. The regions and their autonomous powers are constitutionally guaranteed in federalism. Theories of decentralization and local government brings fresh perspective to the debate and comparative analysis of vertical division of power. Decentralization, citizen participation and local public service delivery a study on the nature and influence of citizen participation on decentralized service delivery in kenya universitatsverlag potsdam. Decentralization resulting difficulties in a coherent implementation in hq across clusters and in rosrds due to their constitutional status has wide freedom of action and it is a potential challenge consistent implementation across the organizationtools to handle the challenges.
For many people, local government is the part of government that most. The process differs from the efforts of the 1960s and 1970s in that this time governments seem ready to cede real power to the lower local government levels. This document dated january 2014 is provided for the adb project 442530 in the philippines. Decentralization can also lower the quality of public services, as it has in latin america and russia. Decentralisation, local development and social cohesion. The multiple author book is not just one of many similar around the globe, as it encompasses contributions from many different academics from not only. A sampling of definitions page 3 joint undpgovernment of germany evaluation working paper of the undp role in decentralization and local governance october 1999 national, and local.
The constitutional changes strengthened the two core principle of decentralization. Decentralization is the means to allow for the participation of people and local governments morell. The details of decentralisation and local government differ in every co untry. Decentralization is widely lauded as a key component of good governance and development. To this end, in 1968, administrative decentralization based on prefectorial model was put in place. Decentralization, citizen participation and local public. A critical assumption in the literature is that a local politician will be more responsive to their electorate and more accountable to citizens than a geographically distant central government official. In the last four decades, decentralisation has become a key focus of. How does political decentralization affect the quality of government. Decentralization the transfer of authority and responsibility for public functions from the central government to intermediate and local governments or quasiindependent government organizations and or the private sector is a complex multifaceted concept. The devolution of taxation and spending powers from central to local governments has been pervasive in many countries. Section 22, local government code of 1991 or 1991 lgc. Dennis rondinelli, from government decentralization to decentralized. It will also enhance accountability of local government administration.
Decentralization and the increased autonomy in local. And, finally, as has been argued in the pubic finance literature e. Today, around 23 of sdcs country programmes include a support to local governance andor decentralisation. Pdf the decentralization debate is both broad and often frustratingly imprecise. Decentralization on the other hand is by definition an act of the center, as it devolves some of its powers to the regional and local government. The theories of decentralization and local government. Local government handbook new york department of state. Concepts of decentralization and local governance enid slack institute on municipal finance and governance munk school of global affairs, university of toronto to interregional dialogue on local governance and gender in decentralizing and transitioning states sponsored by the forum of federations funded by the government of canada tunis.
Local government finance and fiscal decentralization reform. A sampling of definitions page 3 joint undp government of germany evaluation working paper of the undp role in decentralization and local governance october 1999 national, and local. Loan agreement ordinary resources loan agreement for local government finance and fiscal decentralization reform program subprogram 1 concept papers local government finance and fiscal decentralization reform program. Structure and structure and organisation are affected by t he historical, social and political co ntext. The local authorities are free to spend these resources as they want, however due to the ever increasing cost of these grants a stability pact was put in place in 1996 and later replaced by the european growth and solidarity pact in 1999. Pdf gsdrc topic guides aim to provide a clear, concise and objective. Decentralization in the french constitution article 72 1. In this paper, we examine the role that decentralization has played in the process of indonesias oil palm development, particularly among independent smallholder. The effectiveness of decentralization policy on service. How to combine the implementation of the new aid agenda with the.
Greater decentralization might make governments more honest and efficient by bringing officials closer to the people and. Klgrp kenya local government reform programme krb kenya roads board. These units are mainly still accountable to the delegating central ministry. Reports and recommendations of the president rrp describes the terms and conditions of a project for consideration for approval by adb. However, political analysis fundamentally questions this assumption.
Moreover, decentralization can help national government ministries reach larger numbers of local areas with services. Decentralization, incentives, and local tax enforcement. Strong local government and decentralization are essential to this paradigm most countries around the world are therefore presently engaged in some initiative towards decentralizing the state and enhancing local government. Borrowing is the third biggest source of resources for local government in france. Resource guide on decentralisation and local government. Supporting decentralisation and local governance in third. The rule on corporate succession applies to local governments. Decentralization of governance and development pranab bardhan a ll around the world in matters of governance, decentralization is the rage. In this vein, it can be shown that local government will enjoy advantages in. Groups at different levels of governmentcentral, meso and localare empowered to make decisions related to what affects them. If authority to decide all questions belongs to the central government, the system is maximally 8 this excluded mere local health associations or public waste management corporations. The societal actors include government, the private sector and civil society. Pdf decentralization and local government performance. Electoral decentralization refers to the method by which subnational officials are selected.
Like wise, the development of a viable system of higher education reaching out beyond major urban centers requires a supralocal presence. The local political context is also highly significant. For many people, local government is the part of government that most directly impacts on their lives, particularly via the provision of local services like water, sanitation, primary education and primary healthcare. The book ventures inside town hall, exploring the diverse activities of public officials as they seek to manage a variety of tasks amidst conflicting pressures and new expectations for local government. How to usefully combine democratic decentralisation with deconcentration. Government maintained a master position and allocated menial functions to local structures to run on a patronclient basis in terms of purely administrative functions. Decentralization reform refers to transforming the local institutional infrastructure for natural resource management on which local forest management is based ribot. How to combine the implementation of the new aid agenda with the challenges of advancing. The concept of decentralisation and local government has gained much attention in recent years after the idea has been constantly promoted by opposition parties and leading research groups in. Decentralization and governance initiative for policy. Decentralization of local government is a reform, which involves a separation of functions between central and local government, with the main goal over the responsibilities of decisionmaking closer to citizens. Pdf decentralisation and local governance theory and the.
Depending on the country, political decentralization may pertain to constitutional or statutory reforms, the creation of local political unions or new political parties and so on. Decentralization, citizen participation and local public service delivery a study on the nature and influence of citizen participation on decentralized service delivery in kenya. Even apart from the widely debated issues of subsidiarity and devolution in the european union and states rights in the united states, decentraliza. Like wise, the development of a viable system of higher education reaching out beyond major urban centers requires a supra local presence. Organizational structure of subnational and local government. Organizational structure of subnational and local government3 while the municipalities or communes and villages take up the lower end of territorial administration. It may simply mean that power is transferred from national to local elites. New york state has a tradition of home rule authority and providing citizens with a strong voice in their local governments. The idea of decentralization dates back prior to namibias independence, when swapo promoted decentralization as one of the guiding tools for the liberation struggle. Indonesias oil palm expansion during the last two decades has resulted in widespread environmental and health damages through land clearing by fire and peat conversion, but it has also contributed to rural poverty alleviation. Introduction decentralization is one of the most important reforms of the past generation, both in terms of the number of countries affected and the potentially deep implications for the nature and quality of governance.
1070 460 1095 43 230 1141 1128 1431 573 227 382 460 550 326 1104 923 307 156 986 835 120 1524 1420 528 805 1253 352 604 874 1384 1053 606 935 294 197 1090 788 854 35