Session 1.2. Concepts and rationale:

Creating a systemic view on decentralisation

Session Overview

1. Introduce the various dimensions of decentralisation

2. Increase the understanding of decentralisation as an “open system” of different interacting elements

3. Increase the understanding of the complexity of decentralisation

4. Blueprints to decentralisation don't exist

Democratic imperative

Decentralisation

Achieving MDGs

Pressures from below (local

governments and civil society

Effective service delivery

local economic development

urban growth and spatial planning

Potential benefits of decentralisation

Improved efficiencyImproved governanceImproved equityImproved development and poverty reduction

PROsPROsPROsPROs CONsCONsCONsCONs

• Better service deliveryBetter service delivery

• Local democratisation and Local democratisation and

local governancelocal governance

• Improved equityImproved equity

• Improved development and Improved development and

poverty reductionpoverty reduction

• Mismatch mandates and Mismatch mandates and delivery capacitydelivery capacity

• Elite capturing and ‘bad Elite capturing and ‘bad local governance’local governance’

• Inter-jurisdictional Inter-jurisdictional disparitiesdisparities

• Local development not Local development not supported by central supported by central

policiespolicies

The Two Waves of Decentralisation

Earlier wave of decentralisation focused on re-organization public sector (de-concentration)

1990s: recent wave of decentralisation

New model based on four building blocks:

Democratically elected local governments (devolution of

powers to autonomous local

bodies)

Local governance(civil society participation

and downward accountability)

Local (economic)

development(pro-poor

Decentralisedservice delivery

State modernization

and overall public sector

reform

Decentralisation

1 : Political Decentralisation

2 : Administrative Decentralisation

3 : Fiscal Decentralisation

4 :  Local government – local governance - local economic development

5 :  Territorial planning

Existence of bodies separated by law with

from centreAdapting public institutions to decentralised

context

Organisation downward accountability

A well-developed and inclusive local political process (participation)

Free and fair elections

Devolution of power to local governments

Local autonomy to programme and

spend (own) resources

Existence of lower levels of government, agencies,

field offices

Delivery of public services & functions

at lower levels

Execution ‘on behalf of’ central government

Clarifying accountability lines to local and central government (control/ tutelle)

Ensuring effective local-

intergovernmental relationships

Transferring decision-making

authority, resources

Building institutional capacities at lower

levels

Resources for Local

governments

Allocation of responsibilities among levels of government

Impact of fiscal decentralisation?

Central government control

(upward accountability)

Fiscal transfer systems among different levels of government

Introduction of planning and

budgeting cycle at decentralised level

Allocation various taxes among levels

of government

Tendencies and paradoxes

Administrative Decentralisation

Political Decentralisation

Fiscal Decentralisation

Devolution

Deconcentration

Divestment and Privatisation

Delegation

Pu

blic

Sec

tor

Pri

vat

e se

cto

r/ n

on

-g

ov

ern

men

tal

inst

itu

tio

ns

Emergence and consolidation

of legitimate, effective and viable local

governments

Recognising legitimate role (‘obligatory entry

point’)

Accountability of local governments

(upwards, horizontal, downwards)

Local public finance

Local government capacity building

Responsive andaccountable

local governments

Institutional and organisational set-up for local governance process

Existence and quality of accountability

mechanisms

Mechanisms for exchange of information and dialogue

Improvement local finances

(including citizen’s willingness to pay

taxes

Empowerment civil society (dialogue

partners and ‘watchdog’

Partnerships local governments, private sector and

communities in defined area

Acceptance ‘catalyst’ role local governments

New generation of local economic

development (LED) initiatives

Impact decentralised decisions on the local

economy

Link local development and territorial planning

Local coalitions in support of integrated

local development strategies

Link local level dynamics to

processes at upperlevel

Coordinating decentralisation with

territorial (spatial)planning

Is territorial division of country conducive to decentralisation?

Ensure provision of spatial planning

information (in addition to sectoral information)

Creation of ‘regional hubs’ to ensure articulation between decentralisation and

territorial planning

Promoting social and economic synergies between urban and rural municipalities

Linking admin. decentralisation with

inter-sectoral coordination

Decentralisation: a work in progress

Decentralisation: a complex reality

Simple and complex systems

Cooking

Simple

Predictable

Recipe

Decentralisation

Complex

Not predictable

Assessment

Scenarios

Adaptive management

Social learning

Puzzle

Simple

Predictable

Single solution

Trial & error

Machine

Complicated

Not predictable

Guidelines

Problem tree

Planning

ComplicatedComplex

Chaotic Simple

Source: Cognitive Edge (www.cognitive-edge.com)

Cynefin Framework

How to understand complex realities?

Ping pong ball game

Seeing the broader picture

Moving beyond normative – technocratic concepts

Start from decentralisation realities on the ground

Thinking in systems and feedback loops

Adopt an 'open-system perspective'Focus on linkages between different

dimensions of decentralisationDecentralisation as a multi-actor,

multi-sector and multi-perspective process

Thinking in systems

Decentralisation as an ‘open system’

Examples of linkages (1)

Political decentralisation dependent on administrative and fiscal decentralisation (communes without capacities/resources)

Decentralisation dependent on broader state reforms

Decentralisation dependent on democratisation (flawed elections erode legitimacy)

Examples of linkages (2)

Link between decentralisation as ‘political process’ and local development dynamics’

Need to move from ‘local governments’ to ‘local governance’

Local actors want to participate in national/sectoral policy processes

Decentralising the mind of donor agencies (local government vs. community projects)

Visualisation of linkages

Administrative Decentralisation

Political Decentralisation

Fiscal Decentralisation

Broader State

Reforms

Democratisation

The danger of imposing blueprints…

From blue prints to co-design