Chapter One Over view of Government 1. Meaning of Government It is agent of the state, which works to promote and safeguard the interests of its population and maintain its territorial boundaries. It is an institution that makes, enforce and interpret law of the state. It is an administrative wing of the state. Government differs from other organization because of its comprehensive authority- rule are applied to all members of society, involuntary membership-most people initially become citizens of a nation and subject to its rule without any deliberate choice or conscious act, authoritative rule –are generally recognized to be more binding up on all members of society than the rules of all other organization, and legitimate monopoly of overwhelming force. What do you think is the sources of government power? In democracy, government comes into power through election or consent of the peoples. But in undemocratic systems, the source of government power could be either force, blood descent, divine power or tradition. Military governments, for example, relay on force or coercion to govern the people . However, monarchical political systems seek to justify their political power or office on the grace of God or Allah. The rulers try to convince the people that they are born to rule or they are ordained by Super-Natural power. 1.2. Forms of Government 1. Old classification of government The earliest and most famous system of classification was developed by the Greek philosopher Aristotle in the 4th c B.C. He classified government into the following categories; i. Monarchy- a rule by one person based hereditary line or by blood decent. or one man rule. ii. Aristocracy-a rule/ power seized by few enlightened and organized groups. iii. Oligarchy- a rule by few wealthy people iv. Tyranny- a rule by dictator based on his/her interest v. Polity- a rule by money vi. Democracy- a rule exercised in the interest of all people Forms of gov’t… B. Modern Classification Of Government There are two forms of government; 1. Democratic government It can take the following forms; i. Established/consolidated democracies-where democratic elements are highly developed It is characterized by ; Voter’s verdict/decision is the acceptable method of changing rulers Competitive, free and fair election Limited government and limited terms of office Existence of equality of political rights and protection of civil rights Multi-party system i. Semi-democracies It a type of government which contains both democratic and authoritarian elements i. New democracies It is created on the ashes of communism and military rule and where democratic elements are not well consolidated /c of political and economic problems, authoritarian legacies and older and pre-democratic traditions ettc. Forms … 2. Authoritarian/Non-Democratic Government The term authoritarian can be used to show any form government that is nodemocratic and it covers political systems which contrast with democratic system. Feature of authoritarian government; Does not allow free, fair and competitive election system to determine who rules Leaders impose one political group or interest over everyone else Restrict/limit/deny public participation and effective control of the government Institutions of representations/election, legislature/ are weak while institutions of power/military, police and bureaucracy / are strong. It uses high degree of coercion to obtain obedience, violations of rights Availability of high degree of corruption etc. Forms … Authoritarian /non-democratic regimes can be take any of the following forms; Dictatorship- it is a political system that consists of an individual ruling based on his/her own interest(tyranny) Totalitarianism- a system which attempts to control all aspects of the society i.e, one party hold all aspects of the society( political, economic, social, military, judiciary power) Military rule- government run by a group of officers y taking power through coup deta Dynastic rule- government rule by hereditary rulers, exercising or holding complete political power Theocracy- government actually lead by religious leaders 1.3. Systems of Government Based on how government is organized/formed and the power relations that exists between the legislative and executive branches of government 1. Parliamentary system It is a form of government in which both the legislative and the executive branches are fused/combined together i.e., member of the executive can be a legislature or not strictly separated In this system, government is formed as follows; First, the people/voters elect their representatives to the legislature/parliament Then the prime minister/head of government is selected from members of the parliament who have a majority seats/50%+) Finally, the prime minister nominates members of the ministers largely or entirely out of members of the parliament to form the executive branch. E.g., Britain, Canada, Germany, Italy, Australia, Israel, Ethiopia etc. System… Features of parliamentary system; The executive is formed by parliamentary election i.e, there is no separately election for chief executive This shows that members of the parliament can also be members of the executive at the same time The executives are accountable to the parliament because the executives can only stay on power if they get support of the parliament. At any time if the majority of the parliament members do not want the current government to continue in the office, they can remove from the office through the ‘vote of no confidence’ The post of head of government and the post of head of state is separated .i.e, the two posts are assumed by different person/individuals. System… 2. The presidential system It the form of government in which the legislative and the executive branches are strictly separated It is a system of government where the executive branch is separately elected from the legislature branch Both members of the parliament and the president are directly accountable to the people An individual cannot be member the legislative and executive branch at the same time b/c the elected president establishes the executive by selecting individuals who are not member of the parliament The president and cabinet ministers are not accountable the parliament and they do not need the support of the parliament to stay on power. That means the legislature cannot dissolve the executive from the their office by the vote of no confidence except when the president is found to be commit a serious crime and abuse his power In the same way, the president cannot dissolve the parliament and call for new/general election The posts of head of state and head of government is not separated or not assumed by different individuals. i.e, the elected president both the head of government and head of state and plays both the role of chief executive and the symbolic/ceremonial roles. System … 3. Hybrid/semi-presidential system of government It is a system of government that reflects the feature of both a prime minister and the president who are active participant in the day to day activities of the government. But, it differs from the parliamentary system in that it has popularly elected president who is not a ceremonial figure head It also differ from the presidential system in that it has an executive prime minister who has responsible to the parliament Of course, the division of power between the president and prime minister is vary greatly from country to country E.g, in France, the president is responsible for foreign policy while the prime minister is responsible for domestic policy It is followed by counties such as Egypt, Finland, Portugal, Russia, France and etc. 1.4. Major Organs of Government Government is not a monolithic entity. It has different institutions. In the contemporary world, the government is composed of three major organs – legislature, executive and judiciary. More often these three institutions are termed as organs or Branches of modern government. A. The Legislature branch-it is also known by the name parliament The nomenclature of such organ is different in different countries. In the USA, the Senate and the Peoples Representatives are generally referred as the Congress. In United Kingdom, the House of Lords and the House of the Commons are generally termed as the Parliament. In France the Assembly is the term used to describe the legislative organs. It performs multiple functions even if its function is vary from country to countries depending on a number of factors; Law making-it is a supreme law of the country Election function Organ… Control/oversight over administration-They control the behavior of the executives to make sure that their activities are in nation’s interest, uncorrupt and effective Representation function-Members of the parliament serves as a representatives of the people, stands for them and act for them. They are expected to reflect the wishes of the people Propose constitutional amendments/modification Ratify/approves treaties Control tax/revenue Acts as a check and balance of other branches of government Organ… The structure of parliaments- Bicameral or unicameral The institution of the legislature could be mono-cameral assembly-which consists of elected individuals or it bi-cameral assemblies wherein there exists two houses which are entrusted to make laws in different issue areas Some two-third of the legislative bodies in the world have two chambers, an upper Organ… 2. The Executive branch Political executives are government officials who participate in the determination and direction of government policy. They include heads of state and government leaderspresident, prime minister, premiers, chancellors, cabinet members, ministers, counselors and agency heads. The executives performs both symbolic/ceremonial/ and effective leadership functions. Organ… 3. Judicial organ It is the body in charge with interpreting or adjudicating of laws. It comprises the courts and judges who hears and decides cases This organ, both in principle and practices, must be independent from any kind of external influences B/c its independence is fundamental to the rule of law and the protection of rights and liberties of citizens. There are four possible ways of judicial election; Popular election- electing judges by the people directly Election by assembly-electing judges by legislature 1.5. Major Tiers of Government Tiers/levels of government vary from one country to another country depending on the structure of each state. For instance, in unitary states, there is no government other than central government. In case they exist, their existence and power is determined by the central government and do not have constitutional existence and guarantees. However, in federal state structure, there are different levels of government, of course vary from country to country. These include federal, regional and local governments. Each levels of government have constitutional existence and power and they are supreme in their own sphere. Chapter Two 2. The overview of local government The chapter discusses on the following issues; What is Local? Local Institutions Types of local Institutions Meaning of local Government The need for local government Types of local government Functions of local government Local government challenges Cont… 2.2. Local Government and local institution What is Local? The term ‘local’ is often misused since it has been a residual category, equated with whatever is not national The term “local” does not refer to one thing, spatially it may mean the area where “facilities can be reached easily Hence, local is also about identity, belongingness, connectedness, shared assumptions and shared history Locality can offer a base from which shared interests can be negotiated with other neighborhood areas or with regional government or national government Institutions Institutions are very abstract aspect of human manifestation, which have a major role in the success of societies Institutions are the rules (formal and informal) of the game in a society or, more formally, are the humanly devised constraint that shape human interaction They reduce uncertainty by providing a structure and guide to everyday interaction of human life Cont… The major categories of local institutions include: i. Local administration (LAbureaucratic institutions)local agencies and staff of central government ministries, accountable to Cont… iv. Service organizations (SOs)-local organizations formed primarily to help persons other than members though members may benefit from them. Examples are religious or charitable associations, service clubs, Red Cross or Red Crescent societies; v. Private businesses (PBs)-either independent operations or branches of extra-local enterprises engaged in manufacturing, services and/or trade The above local institutions can be categorized Cont… The Roles of Local Institutions in development Many reports indicate that if there is real concern to improve the lives of the local poor, there must be wider choices for the local people This is possible through strengthening diverse local institutions, which can creatively help to mobilize and manage available resources effectively In line with the new approach to development, there has been a renewed interest by national governments, development and donor agencies in the possible inputs which local institutions can make to economic recovery and political renewal especially in developing countries The following are some of the tasks of local institutions; a) Intra-organizational tasks-such as Planning and goal setting, Conflict management etc. Cont… b) Resource tasks- like Resource mobilization (includes mobilization of political resources for voting or lobbying to promote local organization goals) and Resource management c) Service tasks- such as Provision of services and Integration of services d) Extra-organizational tasks -such as Control of bureaucracy and Claimmaking on government 2.3. Meaning of Local Government Local government is ‘a political subdivision of a nation (or in a federal system, a state) which is constituted by law and has substantial control of local affairs, including the powers to impose taxes or to extract labor for prescribed purposes Local Governments are governments by the local bodies freely elected while subject to the supremacy of the national Government. Local Government is the closest tie of government to the people. Local Government refers to Administrative body for a small Geographic area such as a city, a town, distinct etc The governing body of such an entity is elected or otherwise locally selected. This definition makes it clear that a local government is a lowerlevel government, when compared to a national or state government; it is set up by law and has certain responsibilities; it is normally elected Local Government … From the definitions above, we can identify the ff characteristics of LG; It is a tier of government which is subordinate to higher levels of government. i.e. Answerable to a higher level of government (National or state or regional) on certain power and functions it carries out (especially concurrent function). This is to say that a local government is not absolutely autonomous It has both legal and constitutional power to perform certain legislative, administrative and judicial/or quasi judicial functions Has the power to make policies, prepare budgets and a measure of control over its own staff. Its council/legislative body could be elected or selected. It has legal personality i.e. can sue and be sued for wrong doing It exercise authority over a given territory or population. 2.4. The Need for Local Government/Rationales The reasons for creation of local governments are usually political, economic and social. Specifivally, To bring governance closer to the people Participation is a corner stone of democracy. Local governments are avenues of partitivation. Election and decision making are essential. It gives opportunity for local training. For administrative convenience Because of distance, state and national governments may not easily address local matters. Problem of geographic distance can be solved through creation of local governments. To engender development Local governments are important to bring development to local areas. Internally generated revenue can be used for local development Local government… Local governments engender development by: initiating and attracting development projects to the local level E.g. provision of access roads, rural infrastructure etc. Sustaining livelihoods of the local people. E.g. provision of credit facilities, small scale business, employment opportunities at local level Encouraging the formation of cooperative Societies and other social groupings Preserve heritage and common culture and interest of the local people. Cont… The need for local government can also be stated as follows: a) It is more democratic. This is referring to the fact that it increases the scope for citizenship participation in the government of their locality. b) It provides valuable political education. This type of education expose citizens to power and authority – it s acquisition, its use and its risk. c) It is more sensitive to local opinion. Councilors and representatives are closer to the people and respond much easily to their demands or to be voted out. d) It trains people for higher public offices. Local Government becomes a platform or a springboard for acquiring experiences for higher career in government. e) Local knowledge is brought to bear on decision by local government. f) Local initiative can easily be identified and taken on board especially in mobilizing community to gain local support for projects. g) Power is more widely dispersed which is a safeguard against tyranny. The local government system protects citizens against this. h) Local variations and needs in service provision can better be handled by local government since it understands the needs of its own locality 2.5. Types of Local Government Types of Local Government as representative vs. non-representative: Representative local governments -are those directly elected by the local people and are allowed to make decisions and implement with local citizens freely with no or minimum interventions for higher bodies. They are responsible for a range of public services and have an independent power of local taxation. These authorities are the foundation of most modern systems of local government. Non-representative local governments are not per se local governments, but local administration. It Refer to field administrations of the central government The fragmented field administration is a type where each central government department (such as education, health, agriculture, public work, community development, etc.) has its own hierarchy of field administration for areas. Integrated field administration focuses on integrate central government services at the local level based on area integration Types… Types of local government based on its tiers There are two types of structure related to the status of local governments. Single-tier (multi-purpose) structure in which only one authority is recognized by law at the local level. Any other arrangement under local government is a matter of administrative convenience. E.g. Nigeria The multi-tier system is one where the authorities under the local government like Districts, Counties, Borough, Special districts, Home Rule etc. are recognized by the Law and related with appropriately by the central/state governments. For instance, in American local governments are state matters. Not federal Laws. The state can freely adapt its own system of local governments. Types… There are five levels/tiers of local government in America; 1. County governments: organized and authorized under state constitution. They govern the 1st tier geographic division of the state. Different states have different names for this division. E.g. borough in Alaska, Parishes in Louisiana, Counties in other states All states are divided in to counties. Some states have eliminated this division. E.g. Rhoda Inland 2. Sub county general purpose governments This category includes municipality and township governments. i. Municipal Governments-Are also authorized in state constitution. Population center is a basis for this formation. Includes governments designated as cities, boroughs, towns and villages. There are independent municipalities that function as both county and city. These are called independent city or consolidated City County. Types… ii. Township governments These are also authorized by the state constitution. They may have different names in different states.e.g. – Towns in Minnesota and New York, Townships in other states Historical circumstances of formation can be used as a basis 3. School District Governments School districts are organized local entities providing public elementary, secondary or higher education. This is when the state law authorizes the areas as separate government. Administrative and fiscal capacity is the basis for this arrangement. This excludes dependent public schools of county, municipal, township or state governments. 4. Special District Governments Includes all organized local entities other than the above 4 categories. Special district governments are authorized to provide only one or limited number of functions. They should have sufficient administrative and fiscal autonomy to quality as such government. E.g. districts, boards, Authorities, commissions 2.6. Functions of Local government There are certain principles to consider while allocating functions to local government The nature of such local government – urban or rural. The functions of rural local government are more mundane and simple than urban ones. Viability of the local government. The question here is whether the local government has the capacity (human and material and financial resources) to discharge these functions. The local government will be subjected to the standards required by the central government especially in efficiently services and planning The functions of local governments usually emanates from the powers they are entitled to in the legal provision. The more they are given powers and autonomy the more their functions will be. The function /Jurisdiction of local governments can fall in to 5 categories Function… 1. Service functions This is also called direct function of local governments. Local governments provide services in areas such as: Garbage collection Water supply Sewerage management and drainage Public and environmental health Roads and street lighting Public libraries Recreations Parks Community services etc. Function… 2. Regulatory functions Local governments control and administer laws governing issues such as: Buildings Town planning Environmental management Business, transportation etc. 3. Representation functions Local governments have legal responsibility to carry out some functions representing the upper tier of the government. They also represent their constituents to the upper tier of government. e.g. 1, implementing decisions and actions of the upper level government and the functions under the jurisdiction of the upper tier. e.g. 2 – representing/ presenting the needs and interests of the citizens to the upper Function… 4. Community planning and coordination function Local governments have a role in providing a focus for planning and coordinating services. They also have the function of mobilizing and coordinating resources from government, private sector, non- governmental institutions individual volunteers etc 5.Participation functions Local governments are places of participatory exercise. They have to serve as a learning place for participatory governance and decision making in all aspects. 2.7. Basic Principles of local government Local governments are geared towards local development peace, security and over all prosperity of the areas in general. Effective local governments are guided by the following key principles; 1. Independence of local government with in its authority With in authority they have to freely mange their oven affairs To form, adopt, execute local budgets they have to be free from intervention. They should be able to set local taxes, user charges etc. State bodies are not allowed to interfere in the day to day affairs of local governments. 2. The principle of democracy Wide participation of people in decision making is essential. Public involvement in to current activities should be encouraged. Local governments should be carried out by citizens directly involved through their elected bodies. Direct elections are essential for democratic local governance. Principle… 3. Interdependence of local, public and state interests Local issues should be carried out by taking in to account strategies of developing the state and the society. Though local problem are specific, they are part of the state/ national problems. Local problems should be solved in the frame work of the state policy. Coordination of local activities with wider government activities should be given emphasis. 4. The principle of openness Transparency in the works of local bodies is essential. Public control should be facilitated. This needs informing citizens about activities of local governments. Reports of elected bodies should be presented to public regularly. 5. The principle of matching material and financial resources to authorities of local government. It is impossible to ensure independence with out this principle. Efficiency is also difficult unless recourses and authorities are balanced. Principle… 6. The principle of subsidiary liability This refers to a procedure of power allocation and reallocation among different levels. Consequences of exerting power and authorities should be clear. Liability before the population should be clearly indicated. Delegation of power to higher level is possible only when it is impossible to do it at lower level. Efficient allocation of administrative functions is required. In allocating power, maximum satisfaction of citizens should be ensured. Power should be divided among bodies for efficiency in administration. 7. The principle of complementary nature Even allocation of power should be used. Powers are allocated to administrative bodies based on both top-down and bottom up model. This is to reduce the possibility of illegal administrative centers. 8. The principle of department stature A combination of functional and territorial department should be used with in local Government bodies. 9. The principle of decentralization Some function should be transferred to appropriate bodies of local governments. Some state powers should be delegated to local bodies. Decentralization should be followed by appropriate authority and resources. 2.8. Local government problems Local governments usually are trapped in various problems that negatively affect their operation. The following are some of the problems that local governments face 1. Centralized planning and Budgeting This affects the operation of local governments. Local initiatives can not be easily developed in to actions with centralized planning. It affects the flexibility of local government in solving local problems. 2. Weak capacity of local bodies This affects their ability to sustain their autonomy. They can not get more autonomy due to weak capacity. Weak resource absorption capacity is good example. An effective local government requires strong back stopping support from the center in: Strategic direction for planning Resource allocation guidelines Technical and financial support Provision of necessary regulatory framework Problem… 3. Ambiguous definition of tasks and functions This creates intergovernmental conflicts. Ambiguity of tasks and functions leads to abuse of power and confusion of accountability tracing. Management capacity and accountability can not be easily and effectively linked when tasks and functions are nor clear. This leads of redundancy of efforts and wastage of scarce resources. 4. The structure of local governments How local governments are structured affects their operation. Their relationship with higher and lower tiers of government is reflected in the structure. Confusing local government structures are common problems. Structure should ensure accountability and effective decision making in local government administration. 5. Undue intervention from higher tier of government. The interference of upper tiers of government into the operations of local governments affects the freedom and autonomy of the local governments. Many local governments around the world in general and in developing countries in particular suffer from undue intervention of state and central governments from above. Problem … 6. Mal-administration and corrupt practices Though local governments in principle are said to have more accountability and local control, it is practically observed that local officials in many systems are found to be in corrupt practices. Arbitrary decisions, wastage of scarce resources, and abuse of power are commonly observed local government problems that even sometimes put the importance of local governments under question. Chapter 3 Decentralization and Local Government 3.1. Introduction Local government is a decentralized political entity. The powers of local governments are subject to various forms of control by the central government .The balance of this control is the power enjoyed by local government (which is technically referred to as autonomy). It is therefore possible to say that the less the control on local government by the central government, the more autonomy conceded to these units. In this same vein, the tighter the control of local government affairs by the central government, the less the autonomy or local government powers. Decentralization… 3.2. Meaning of Decentralization refers to the transfer of planning, decision making or administrative authority from the central/state government to lower-level institutions, It is 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 (World Bank). refers to the restructuring or reorganization of authority so that there is a system of co-responsibility between institutions of governance at the central, regional and local levels according to the principle of subsidiarity, Dec… 3.3. Types of Decentralization There are different types of decentralization which includes devolution, deconcentration, economic and fiscal decentralization(UNDP). 1. Deconcentration- it is also known as administrative decentralization It is a type of decentralization, which was more predominant in unitary states that favor centralization, rather than genuine decentralization In the context of deconcentration, different central ministries transfer their functions and authority to regional/ provincial or local out-posts It is a means of stretching the arms of the center to reach local levels, which otherwise decision making remains at the center and lower levels of government are being limited to transmitting orders and implementing decisions It is initiated by many governments to bring their services closer to the citizens either by moving part of their personnel to particular location, or by assigning some responsibilities to regional or local authorities, while retaining administrative control over decisions taken locally Dece… 2. Devolution It is characterized by transfer of political, administrative, and fiscal decision making authorities to local governments that have clear and legally recognized geographical boundaries over which they exercise authority and within which they perform public functions. It involves the creation of autonomous LGs to be governed by legitimately elected bodies, Local governments that enjoys devolution of powers are likely to be more autonomous (or exercise greater powers over its local affairs) than local governments that are deconcentrated, In this understanding, empowering the disadvantaged group is central And they are likely to exhibit the following fundamental characteristics; a) Its existence is legally or constitutionally guaranteed b) It also has constitutional backing to perform certain statutory functions with its jurisdiction, c) Exercise power or control over policies, budget preparation its revenue and its staff Dece… Devolution may take different forms; i). Political or Democratic Decentralization Political decentralization aims to give citizens or their elected representatives more power in public decision-making. It is often associated with pluralistic politics and representative government, but it can also support democratization by giving citizens, or their representatives, more influence in the formulation and implementation of policies. The concept implies that the selection of representatives from local electoral jurisdictions allows citizens to know better their political representatives and allows elected officials to know better the needs and desires of their constituents. Political decentralization often requires constitutional or statutory reforms, the development of pluralistic political parties, the strengthening of legislatures, creation of local political units, and the encouragement of effective public interest groups. Dece… ii. Administrative decentralization Administrative decentralization seeks to redistribute authority, responsibility and financial resources for providing public services among different levels of government. It is the transfer of responsibility for the planning, financing and management of certain public functions from the central government and its agencies to field units of government agencies, subordinate units or levels of government, semi-autonomous public authorities or corporations, or area-wide, regional or functional authorities Dece… iii. Fiscal and Financial Management decentralization If local governments and private organizations are to carry out decentralized functions effectively, they must have an adequate level of revenues –either raised locally or transferred from the central government– as well as the authority to make decisions about expenditures. Fiscal decentralization can take many forms, including a) self-financing or cost recovery through user charges, b) co-financing or co-production arrangements through which the users participate in providing services and infrastructure through monetary or labor contributions; c) expansion of local revenues through property or sales taxes, or indirect charges; d) intergovernmental transfers that shift general revenues from taxes collected by the central government to local governments for general or specific uses; and e) authorization of municipal borrowing and the mobilization of either national or local government resources through loan guarantees. In many developing countries, local governments or administrative units possess the legal authority to impose taxes and decide tax bases Dece… 3. Privatization and deregulation/Economic decentralization It is also another type of decentralization, which refers to a shift of responsibility for functions from the public to the private sector It is concerned with the location of economic decisions widely dispersed through the market mechanism to consumers 4. Delegation . It implies the transfer of or creation of broad authority to plan and implement decisions concerning specific activities within specific boundaries to capable public or private organization Assigning work to subordinates and giving them authority to do it. The subordinate must act within the limits prescribed upper bodies. But the maximum authority is retained at top level. Through delegation, central governments transfer responsibility for decisionmaking and administration of public functions to semi-autonomous organizations not wholly controlled by the central government, but ultimately accountable to it. 3.5. Evolution of Decentralization The 1960s – the state was assumed the principal actor of social, economic and political development through the “central planning” and “trickledown effect” development philosophy Central planning and administration were considered necessary to guide and control the economy as well as to integrate and unify nations that were emerging from long periods of colonial rule As a result, most of the newly independent countries pursued administrative decentralization within the framework of a unitary structure and central planning. However, this approach failed to bring the desired result and in fact, increased absolute poverty that further marginalized the poor Generally, the 1960s were the age of centralization rather than decentralization 3.5. Evolution of Decentralization… The 1970s- the 1970s witnessed a return to decentralization A new emphasis on and interest in decentralization began in the 1970s when it was realized that the central control and management of developing nations’ economies did not ensure rapid economic growth However, the political preference for centralization was still prevalent on a wide scale. The decentralization ‘reforms’ were administrative and procedural rather than introducing structural changes with regard to LGs. Local authorities could very seldom take significant actions without a lengthy review period and a central government ministry’s approval. By the end of 1970s, it was clear that there was no decentralized state system for decentralized development through popular participation 3.5. Evolution of Decentralization… The 1980s- was a watershed in development thinking, shifting attention from government to the market as the engine of development The over-centralized African states produced enormous failures By the late 1970s, they faced an economic crisis as a result of which most of them were forced to adopt structural adjustment programmes (SAPs) to secure financial assistance and loans from the International Monetary Fund (IMF) and the World Bank (WB) These financial institutions and other donor agencies encouraged and, at times, forced central governments to decentralize service production and provision tasks to LGs and private enterprise 3.5. Evolution of Decentralization… However, the mere decentralization of service production did not promote the establishment of sound LGs. While central governments did devolve their responsibilities to local units, they did not provide the financial and human resources necessary to carry out responsibilities. On the other hand, in many developing countries like those Africa, the decentralization of economic decision-making through privatisation and deregulation did not make a significant difference, as there was little response to the call for private investment This was due to the lack of the right institutional environment 3.5. Evolution of Decentralization… Indeed, structural adjustment and economic liberalization introduced fundamental changes to development policy with the state no longer being considered the only actor in public affairs In terms of socio-economic development and changes in the lives of the poor, however, the changes failed to live up to their advocates’ optimism In fact, SAPs not only failed to bring the expected changes, but brought about serious economic decline as neither the government nor the private sector was a strong actor in low income countries’ economy 3.5. Evolution of Decentralization… The 1990s - the failure of the deregulation and liberalization approach to solve the economic and political crisis, resulted in a new context for governance reforms in the international arena and specifically in Third World countries Since the end of the 1980s in general and the beginning of the 1990s in particular, the policy community started searching for development practice tools that would go beyond the state and actively foster the non-state arena It focused on a search for both state and non-state institutions that could provide local communities democratically participate in their affairs with opportunities to 3.5. Evolution of Decentralization… Decentralization has continued to be an important issue on the reform agenda, but it has assumed a new meaning that has turned away from the public sector domain Decentralization has ceased to be a local government affair and has turned into a local governance issue It is being promoted in the context of the pluralist discourse, representing a system of policies and multiple actors through which a society manages its economic, political and social affairs through interaction and participation Such changes are referred to as ‘a change in paradigm’ 3.5. Evolution of Decentralization… On reviewing the decentralization discourse, it is apparent that in spite of the shifting nature of decentralization’s emphasis and objectives, the debates on and implications for LG and governance can be categorized into two groups The first is an intergovernmental process, i.e. the decentralization of the decision-making authority between levels of government: from central to state and from central/state to local. This reflects the earlier or ‘traditional’ view of decentralization The focus was on what responsibilities and powers should be transferred to local structures and what should be part of central/state-local relationships regarding decision-making and resource allocation in order to carry out assigned tasks Generally, discussions were preoccupied with intergovernmental relations, or the amount of autonomy local authorities should exercise 3.5. Evolution of Decentralization… The second is more focused on the broader and fundamental issues of state-society relations that require government to devolve power to the market and all other nonstate actors. This represents and reflects the recent or ‘new’ thinking in decentralization In the context of the ‘new’ thinking, the comparative static question of ‘which level of government is more appropriate?’ has become secondary to a more fundamental question regarding state-society relations The ‘new’ framework examines decentralized local governance structures in terms of organizational and institutional roles, state and non-state actors and whether they are engaged in implementing public sector tasks to promote local development and improve the life of the local people It focuses on local governance network and institutional pluralism with roles being shared between different local actors to provide efficient public services and with government mostly playing a facilitator role 3.6. Objectives of Decentralization The objectives of decentralization include: to decongest the functions of government from one centre to various parts of a country or state; or to relieve the work burden of central government; to provide government services and facilities to every corner of a country or state i.e. to promote even development of all parts; To extend, enhance and guarantee participatory democracy. i.e, to involve all citizens of a country and or state in governance through political means and policy making; To enhance the process of accountable governance. when people are involved in their own governance through decentralization, accountability on the part of office bearers is enhanced, hence leading to more efficient utilization of public resources, To ensure and safeguard rapid sustainable development. Sustainable development will only be safeguarded when people are 3.6. Objectives of Decentralization… To improve capacity of sub-national councils to plan, implement, manage and monitor delivery of services for their constituents. Based on the transfer, local authorities are to be provided with continuous and formalized capacity building and training in essential fields to improve their service delivery. To take care of peculiar needs and or problems of each part of a country or state; To take quick and appropriate decision at the level which it is really required with a view of exploiting the opportunity available; To reduce the communication work and fill the gap in communication, if any; 3.6. Objectives of Decentralization… However, the extent to which any decentralized system will deliver these noble objectives depends on more than the mere adoption of the system. While the formal legal framework/structure of any given decentralized system is important in the determination of its success, other extraneous factors such as the level of people's awareness, the availability of the necessary resources and the commitment of the central government are usually critical in determining the degree of success. Dece… 3.7. Advantages and Disadvantages of decentralization Advantages Local authorities tend to act more in line with local preferences and conditions, and their response to local needs is more expeditious. Decentralization provides opportunities to marginalized sectors of the community, like women in some countries, minorities etc., to participate at the local level, enabling a more sensitive approach to policy formulation and implementation. Decentralization tends to enhance transparency and accountability, the amount of money wrongfully diverted away from development often declines. The Human Development Report (2003), underlines that in 55 countries, decentralization of government spending was closely associated with lower corruption among bureaucrats and reduced rent seeking by private parties - leaving more money to spend on basic services for poor people. Dece… Decentralization increases effectiveness in service delivery, like reducing absenteeism among government employees, for example, in local schools and health clinics because elected officials receive complaints from their constituents and can improve discipline. Decentralization provides bureaucrats with early warnings of potential disasters, enabling quick remedial action. Decentralization makes development projects more sustainable and cost effective because local people are more likely to be involved in their design, execution, and monitoring. Decentralization encourages communities to find solutions to their everyday problems, yielding innovative ideas, which are more attuned to local conditions. Decentralization provides opportunities for more people, including the under-represented groups (like women in some countries, the poor, minorities etc.) to participate in decisions that affect their lives. Dece… Limitations/constraints For the process of decentralization to be complete and for it to be successful, there are certain preconditions which may not exist in a country at a given time. According to the UNDP Human Development Report (2003), these prerequisites include: Effective state capacity; Empowered, committed and competent local authorities; and Engaged, informed and organized citizens and civil society. Decentralization requires co-ordination between levels of government and more regulation -not less- to ensure basic transparency, accountability and representation. The state also has to raise adequate fiscal resources to support decentralization. For the above to be achieved, effective state capacity is necessary. Dec… Furthermore, to ensure that the decentralization effort is not hijack by the local elites, and there is broad based participation, both a strong state and a mobilized civil society are required. Appropriateness of functions to be decentralized, adequacy of fiscal resources to be transferred to the sub-national government, efficacy of administrative and legal setups and sufficiency of technical/skilled personnel at all levels of government are important ingredients for successful decentralization. Lack of willingness of the centre to relinquish or share power has been a major impediment to effective decentralization. The inability to make the transition to people-centered governance, with its commensurate implications for participation and empowerment is perhaps a bigger bottleneck in the process of decentralization than legislative changes, which in their own right are also crucial. Dec… lack of public awareness and an absence of a culture of participation and a weak "voice'' of particularly the poor and marginalized sections of the population has inhibited the development of: firstly, a two way accountability system whereby local governments are not only supervised by an effective state government from above but also a strong civil society from below; secondly, a local government system which is responsive to the needs of all sections of populations, particularly the poor and the marginalized. As a matter of fact, the decision making process is dominated by local elites and government functionaries with little, if any, participation by the masses. Dec… 3.8. Conditions for Effective Decentralization For decentralization to be effective, some minimum conditions should be in place. These include the following. Decentralized governance for poverty reduction is a long-term learning and development process that requires a sustained commitment from, coordination of, and strengthened capacities of all stakeholders at various levels; At the national/central level, there must be an enabling environment to ensure that devolution Chapter 4 Governance and Local Government Capacity Building 4.1. Good Governance in Local Governments 4.1.1. Understanding Governance and good governance The term governance can be used specifically to describe changes in the nature of the government following the public sector reforms the 1990’s which shifts decision making from hierarchic bureaucracy towards networks especially in the delivery of public services. It expresses a widespread belief that the state increasingly depends on other organizations to secure its intentions, deliver its policies, and establish a pattern of rule. It can also used to describe any pattern of rule when the state depends upon others and when the state plays little or no role and hence, it more than government. It is about how government interacts with civil society and other stakeholders. It tells how well government has encouraged and facilitated people's participation not only in the delivery of services but also in the evaluation and monitoring of government Governance… Governance can be viewed as the traditions and the institutions by which authority in a country is exercised for the common good This includes the process by which those in authority are selected, monitored and replaced, the capacity of the government to effectively manage its resources and implement sound policies, and the respect of citizens and the state for the institutions that govern economic and social interactions among them Governance is about how government conducts business in its own sphere and encompasses the system by which an government is controlled and operates, and the mechanisms by which it, and its people, are held to account. The manner in which power is exercised in the management of a country’s social and economic resources for development. It is referred to as the quality of the institutions to make, implement and enforce sound policies in an efficient, effective, equitable and inclusive way The exercise of economic, political, and administrative authority to manage a country’s affairs at all levels. It comprises the mechanisms, processes and Governance… Governance is “good” when it allocates and manages resources to respond to collective problems, in other words, when a state efficiently provides public goods of necessary quality to its citizens. Hence, states should be assessed on both the quality and the quantity of public goods provided to citizens. The policies that supply public goods are guided by principles such as human rights, democratization and democracy, transparency, effective participation and decentralized power sharing, sound public administration, accountability, rule of law, political empowerment of people, equity, and attitudes and values that foster responsibility, solidarity and tolerance. In practice, such principles should translate into “strengthening democratic institutions” by free, fair and frequent elections, a representative legislature, some judiciary and media independence from the State, the guarantee of human rights, transparent and accountable institutions, local governments that possess decentralized authority, a civil society which sets priorities and defends “the needs of the most vulnerable people” Elements/principles of Good Governance 1. Accountability and Participation Accountability holds public officials responsible for government behavior and makes it imperative for them to be responsive to the needs of the citizenry. At the local level, accountability requires that institutions have the flexibility to allow beneficiaries to improve program/project design and implementation. Accountability may be obtained at two levels: macro level accountability and micro level accountability. Macro level accountability refers to the system whereby ministers are accountable to the legislature and/or political leadership and whereby civil servants are accountable to the ministers. Good governance… Macro level Accountability has two aspects: a) Financial Accountability-a properly functioning government accounting system for effective expenditure control and cash management; an external audit system which reinforces expenditure control by exposure and sanctions against misspending and corruption; and mechanisms to review and act on the results of audits and to ensure that follow-up action is taken to remedy problems identified. b) Economic accountability-refers to the evaluation and monitoring of efficient use of resources in government. Accountability for overall economic performance, e.g. congruence between public policy and actual implementation, the efficient allocation and use of public resources and external auditing and follow-up to this auditing. It may be reflected in performance contracts, memorandums of understanding, value for money audits and legislative review of ministry or department activities. Good Governance… Micro-level accountability –it has two aspects: The first refers to the willingness and ability of the public to "exit", meaning to consider other options when dissatisfied with a public service. Exit is greatly influenced by the degree to which the public has access to alternative suppliers of a given public service. Policies and mechanisms that promote greater competition like deregulation, contracting out of services to multiple private providers and public-private or public-public competition enhance exit. The 2nd refers to the willingness and ability of the public to exert pressure on providers to perform well (i.e., the use of "voice"). Voice depends on the degree to which the public can influence the quality and quantity of a service through some form of articulation of preferences. Mechanisms/tools to provide voice: Survey of beneficiary’s satisfaction on services provided Procedures for making complaints and institutions like the ombudsman Participation of NGOs or private sector representatives in decision making or regulatory bodies Good Governance… Paul (1991) posits the following propositions in evaluating the menu of exit/voice options. First, when the public service operates as a local monopoly due to spatial barriers and when the public is characterized by low incomes and legal, institutional and informational barriers, imprinted accountability is better achieved through the use of voice. Under these conditions, the use of voice is likely to be stimulated by the intervention of agents outside of the local community (e.g., NGOs). Second, when the public service is characterized by large economies of scale and/or legal barriers to entry, when service differentiation is difficult and when the public is not constrained by low incomes and limited information, voice will tend to be used to induce greater accountability. The use of voice under these conditions is likely to be initiated by the public and not through external agents. Third, when public service can be differentiate, when it is not constrained by economies of scale and the public faces income, informational and institutional barriers, improved accountability is achieved through the use of exit. Good Governance… 2. Transparency and Information Transparency implies the provision of relevant and reliable information to all. Transparency in decision making and implementation reduces uncertainty and can curb corruption among public officials. It complements and reinforces accountability (by enhancing efficient use of resources and by promoting participation) as well as predictability (by lowering uncertainty and transactions costs). 3. Predictability and presence of legal framework Predictability refers to the fair and consistent application of laws, regulations and policies. It is important in creating a stable economic environment that allows prospective investors to assess opportunities and risks, to transact business with one another, and to have a reasonable assurance or recourse against arbitrary interference Therefore, Predictability has five critical elements which includes, There is a set of rules known in advance; The rules are actually in force; There are mechanisms assuring application of the rules; Good Governance 4. Catalytic and community-owned government Local chief executives now assume the role of facilitating problemsolving by stimulating the community into action. They are no longer confined to the tasks of collecting taxes and delivering services. They are also involved in defining community problems and mobilizing scarce public and private resources to achieve community aspirations. A catalytic local government assumes more "steering" functions (as opposed to "rowing") by leading society, convincing its various interest groups to embrace common goals and strategies. As such, the focus of a catalytic government (or one that acts as a change agent) shifts from "doing" things (from delivering services) to making more policy decisions and putting more social and economic institutions into motion. Catalytic government ensures that other institutions are delivering services (instead of hiring more public employees to do the job). Good Governance… 5. Competitive, enterprising, anticipatory, results-oriented governance Local governments should take a competitive stance to achieve greater efficiency. They should promote competition among service providers to keep costs down and to induce greater customer satisfaction. Local governments could enhance competition by encouraging private firms to provide goods and services that were previously provided by the public sector either by load shedding (with the government consciously withdrawing from public provision), procurement or contracting. Local authorities should also be enterprising in the sense that they should look for innovative ways to create revenue (such as charging user fees for some public services, like the use of public rest rooms, parking lots) and investing for returns (Example: evaluating the returns on their spending as if it were an investment). It is also important that governments put the right incentive structure in place. Good Governance Local governments should focus more on prevention rather than cure, as it is easier and less expensive to solve problems rather than to respond to crises. Prevention is particularly beneficial in health care and environmental protection. Thus, good governments are able to anticipate the future and to make decisions based on their vision of the future (e.g., through strategic planning). A results-oriented local government gives more attention to funding, monitoring and measuring project/program outcomes rather than inputs. In contrast, when institutions are funded according to inputs, they have little incentive to turn in a good performance. In this light, a set of performance measures and, possibly, a system of linking funding or rewards with results is needed to ensure that program outcomes are achieved. Good Governance… 4.2.Financing local Government Local governments have two primary sources of revenue: The revenues that local governments collect themselves from their own local sources, and central government fiscal transfers and grants. In some countries, provincial governments or states may also provide transfers or grants to local municipal governments. 1. Own Source Revenues Local own source revenues are generally classified into two main categories: Own-source of revenues, and capital revenues from local own sources as described below. A. Own-Recurrent Revenue This revenue source generally refers to recurrent revenues from local taxes including property tax, sales tax, VAT, local income tax, entertainment taxes (sporting events), local service charges (user charges), fees and licenses, revenue from penalties, as well as rental income from buildings and facilities. Used to finance recurrent expenditure(salaries, goods and services) Good Governance… B. Capital Revenue Capital revenue from local own-sources is not very common. However, typical sources include proceeds from sales of municipal assets(land, building) and income from surpluses in the operations of local service providers. Used to finance capital expenditure Capital expenditure is the money LG spends on providing or improving non-current assets, which include land, buildings and equipment, which will be of use or benefit in providing services for more than one financial year. 2. Inter-governmental Fiscal Transfers Intergovernmental revenue accounts for all revenues received from federal, state, and other units of government, in such forms as shared revenues and grants. Classified into current and capital transfer. Transfers from central to local governments will undoubtedly continue as an important feature of local government finance. Good Governance i. Current Transfers Transfers to finance recurrent expenditures should be classified as current revenue. It should be noted that not all fiscal transfers are for capital expenditures. Some transfers systems allow for a percentage of the total transfers to be used for recurrent expenditures, specifically in order to take care of those expenses associated with capital investments, such as operation and maintenance (O&M). ii. Capital Transfers Good Governance iii. Other Capital Sources Some local governments may benefit from other sources of revenue different from their own and intergovernmental capital transfers. These revenues are generally comprised of grants, private contributions, loans and credits. Grants and Contributions: Donations for specific public works should of course be classified as capital revenues. Contributions from the beneficiaries of public works should also be budgeted under capital revenue. Loans and Credits: Loans from commercial banks (including credit from municipal development funds) or from bond issues, which are intended for the financing of physical infrastructure, should be classified as capital revenue However, in order to get loans, LG need to demonstrate trustworthy, which essentially relies on the availability of sufficient own revenues and on the stability, predictability and unconditionality of (at least some)intergovernmental grants. Good Governance… 4.4.Local Government Reform and Capacity Building Public sector reform (PSR) is about strengthening the way that the public sector is managed. The public sector may be overextended – attempting to do too much with too few resources. It may be poorly organized; its decision-making processes may be irrational; staff may be mismanaged; accountability may be weak; public programs may be poorly designed and public services poorly delivered. A fundamental goal of capacity building is to enhance the ability to evaluate and address the crucial questions related to policy choices and modes of implementation among development options, based on an understanding of environment potentials and limits and of needs perceived by the people of the country and government concerned. Good Governance… Local government reforms and capacity building programs in general focus on the following areas. i. administrative capacity building; ii. strengthening policy capacity; iii. institutional reform; and iv. Civil service downsizing Administrative Capacity Building: This is probably the most frequently used form of assistance to public sectors and local governments in developing countries. Measures under this heading respond to the perception that many civil services are poorly managed and inefficiently structured. Good Governance… Activities in administrative capacity building include: Organizational restructuring and renewal, including strengthening of capacity to be more responsive to the needs and preferences of citizens; Strengthening of linkages between government agencies, including strengthening the capacity of line departments to interact with one another and with central agencies; Improving the quality of human resources through training and recruitment; Addressing management problems related to employee performance management, wage and non-wage incentives, irrational job classification systems and ineffective payroll and personnel systems. Good Governance… Strengthening Policy Capacity: These measures aim at building the capacity of the government, either at the central agency or at local governments’ level, to develop rational and effective public policies. They include: Rationalizing and standardizing the decisionmaking process, improving the flow of policyrelevant information, etc. Strengthening capacity for policy-analysis. Institutional Reform: These measures aim at making the state and local governments more open and accountable. Good Governance… Civil Service Downsizing: The motivation for downsizing has normally been some combination of fiscal discipline – local governments trying to reduce the costs of public administration – and a desire to move toward a more market oriented economy. A typical package of interventions involves: Workforce size reductions, implemented through mechanisms such as voluntary early retirement, hiring freezes, natural attrition and strict enforcement of the retirement age; Compensation schemes, including lump-sum severance payments and job re-training, aimed at easing the transition of laid-off workers into the private sector; wage policy reforms such as wage-bill caps, wage freezes and monetization of non-cash allowances and benefits, all aimed at containing wage expenditures. Good Governance… Factors to be considered for Local Government Reforms While planning and implementing local government reforms and capacity building, the following factors should be carefully considered. 1. Local Leadership and Ownership. Reform program is doomed to fail if the main source of energy and leadership for it comes from outside. Strong, relentless and well-placed local leadership is essential for overcoming the political and bureaucratic obstacles that confront a reform program. 2. Popular Pressure for Reform: Impetus for reform must come from local stakeholders who are outside as well as inside the public sector. Organized civil society (e.g. civic associations, users’ groups, labor unions, NGOs), the private sector, political parties and other influential domestic institutions all have a critically important role to play in pressuring the public sector to do a better job of serving society. Good Governance 3. The Impact of Accountability: Failed accountability is at the root of public sector dysfunction. A strong bond of accountability between citizens and the public sector generates demand for public sector reform. Successful reform strategies should therefore be adapted to and (where possible) address shortcomings in the accountability environment within which the public sector operates. Reformers must have an appreciation of factors such as citizens’ access to information about public programs and public expenditure, their capacity to analyze information about the public sector and place demands on it for better performance, and the degree to which public agencies feel compelled to respond to public needs. Good Governance 4. The Power of Information: Wide dissemination of information that allows citizens to monitor public service delivery and public expenditure can have a powerful positive impact on the attitudes and behavior of public officials. Experience in developing countries with “service-delivery surveys” has shown that information flows can set in motion an uncontrollable dynamic promoting a more accountable and better-performing public sector. Stakeholders should influence governments to publish timely, complete and accurate information about government operations. 5. The Impact of Organizational Culture: Local Governments with a culture that is outcomes-oriented and “mission-driven” appear to have higher levels of performance than local governments lacking these features. This underscores the importance to successful reforms of public-sector leadership styles and internal performance management practices that focus on results and service to the public. Good Governance… 6. Build Capacity for Policy-making: Providing timely and well-argued policy advice to public decision-makers is generally regarded as a core responsibility of the public service. Capacity to fulfill this function is in short supply in many developing countries, a problem that has been under addressed by donors. Recent experience in this area has yielded lessons for policy capacity building in developing countries. Good Governance… 4.5. Local Government and Inter-governmental Relations 4.5.1. Meaning of IGR The interactions that take place among the different levels of government within a state. Usually the concept is associated with States having a Federal administration system where the relationships between the Federal, central or national government and the major sub national units (province, region or state) are formally spelt out in the Constitution. In particular, the jurisdictional powers of each level of government are spelt out in the constitution and any re-arrangement must be through a constitutional amendment involving both levels of government. The term simply means the relationship between levels of government, how each level relates to or interacts with other. It should however be pointed out that it is not these offices or structures themselves that matter in IGR but the human beings that operate it i.e. human relations and human behavior. Good Governance… 5.2. Objectives of IGR The key objectives of IGR are as follows: To promote peace and harmony among the three levels of government To enhance the emergence of cooperation rather than competitive Federalism To ensure effective and efficient utilization of available human and material resources among the various levels of government; To accelerate the achievement of self reliant economy; To minimize inter-jurisdictional conflicts among the various levels of government; solve the problem of rural and urban poverty, ignorance and suffering of the people and To foster greater national integration through the activities of the three levels of government. Good Governance… 5.3. Features of the relationships As pointed out, IGR is the interaction between Federal, State and Local governments. In a Federal system, the relationship actually emphasizes the Federal and State. The model of relationship is however as follows: a) Federal…………………………..State b) State……………………………..State c) Federal…………………………..Local d) State…………………………….local e) Federal………………………….State…………….Local f) Local……………………………Local An analysis of this relationship shows that is can be vertical as in FederalState or horizontal as in State-State or Local-Local. It can also flow directly from the Federal to Local government which is a predominant type under military administration especially in the area of decrees, direct circulars, administrative reforms and financial matters. Good Governance… In most developing countries including Ethiopia, the horizontal relationship among state governments and among local governments is not as strong as the vertical relationships while that of state-state has been more functional than that of Local-Local. Usually, in IGR, two types of relationship can be distinguished, namely, superior-subordinate and bargaining and negotiating relationship. The state government tends to feel superior while local officials assume the subordinate officials. Such a relationship is more pronounced in developing countries while the negotiating/bargaining type in countries with rich democratic traditions. This is a case of control and autonomy. Where the control or interference of the central government is high in local administration, the outcome is the superior subordinate type. On the other hand, the situation of partnership describes more of autonomy for local administration. On paper, the higher the level of devolution for local governments, the less state interference and the more the autonomy. We should however note that devolution sometimes can be on paper while the actual practice can degenerate into deconcentration in most developing countries.
