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Supporting Decentralization as an Entry Point for Governance Reform in

Sierra Leone

Yongmei Zhou (AFTPR)Decentralization TG Presentation, Mar 7 2007

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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

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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

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Why betting on a decentralization-driven

governance reform program?

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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?

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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

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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.

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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

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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

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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

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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

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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

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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).

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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

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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

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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?

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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

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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

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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

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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.

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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

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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?

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Building LCs capacity is not the hardest part

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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 management2. Development planning3. Budgeting and accounting4. Procurement5. Transparency and

accountability6. Project implementation7. Functional capacity of LG

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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

structures2. Transparency, openness, participation and

accountability3. Planning systems and project

implementation, M&E4. Human resource management5. Financial management, budgeting and

accounting6. Fiscal capacity and local revenue mobilization7. Procurement and contract management

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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.”

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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

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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

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Stimulating citizen demand for good governance is easier said than done

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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.

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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

structures2. Transparency, openness, participation and

accountability3. Planning systems and project

implementation, M&E4. Human resource management5. Financial management, budgeting and

accounting6. Fiscal capacity and local revenue mobilization7. Procurement and contract management

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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

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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 CouncilPercent of respondents able to correctly name the Local Councillor from their wardPercent of respondents able to correctly name their Section ChiefPercent of respondents able to correctly name their Paramount Chief

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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)

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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?

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What next?Four tough nuts to

crack

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1. Need the missing leg of the stool

Decentralization

Human Resource Management

ReformPublic Financial

Management Reform

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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?

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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

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3. Traditional authorities & elected local councils Lack of policy clarity on roles and

responsibilities indicates a deeper ambivalence among political elites

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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?