Decentralisation 1

8/7/2019 Decentralisation 1

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Bangladesh LocalGovernance

Support Project(LGSP)

Nilufar Ahmad, World BankSAR IIPM Program

October 8, 2008


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Local GovernanceLocal Governance

Support Project (LGSP)Support Project (LGSP)

Implementing Agency: Local Government DivisionImplementing Agency: Local Government Division

(LGD), Ministry of LGRD&C(LGD), Ministry of LGRD&C

Project Cost:Project Cost: $208 million)$208 million)

Development Partners: WB, UNCDF/UNDP/EC/Development Partners: WB, UNCDF/UNDP/EC/DANIDA & SDCDANIDA & SDC

Project Period : July 2006Project Period : July 2006 June 2011June 2011


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Local Governance VisionLocal Governance Vision LGs are mandated by Bangladesh constitution 1973

Local Government in every administrative unit of theRepublic shall be entrusted to bodies, composed ofpersons elected in accordance with law Article 59 (1)

In light of the National Policy (PRSP 2004), thegovernment is committed to the following policy andprogram directions:

Decentralization and devolution of authority and strengthening oflocal government (administrative, financial and resourcegeneration)

Innovation and expansion ofperformance-based budgetarysupport to the local government (LG). Review ofpolicy on financial authorities of the LGs in terms of

local resourcebases.


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ChallengesChallenges

Bangladesh is highly centralized. Majority of national politicians and

bureaucrats do not support decentralizationand effective LGs

Public sector governance and servicedelivery managed by vertical ministries fromthecapital, limited accountability

80% live in rural areas, lack access toquality service and `voice; not able to hold

serviceproviders accountable. Less than 2% of total public spending flows

towards the delivery of local services, withthebulk of resources provided on a highlyconditional basis.


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NATIONAL

GOVERNMENT

COMMUNITY PROVIDERS

LGLINE

MINISTRIESNGO PS

LOCAL

GOVERNMENT

Client Power-

Weak Voice

CITY CORPORATION

POURASHAVA

UP

Accountability

Mechanism

ReportingFinancial

Flow


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Background and objective of LGSPBackground and objective of LGSP

The objective is to develop accountable LGs providingservices that meetcommunity priorities, supported by apredictable and transparent fiscal transfer system.

Project finances Union Parishad (UP), the lowest tier ofrural LG. UPs were established in 1870, there are nearly4500 UPs, with an average 35,000 pop and regular

elections since 1960s. 30% seats have been reserved forwomen UPs have limited authority & resources less than $0.18

per capita annually. A non-elected tier, Upazila (sub-district) usually hold UP budget.

As a result, an independent tier of government linking thecenter and public service delivery systems to communitieshas yet to emerge.

UPs were an important missing tier of governance onethatcan enable the voice and oversight of localgovernments and communities in the delivery process.


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Component 1: Fiscal TransferComponent 1: Fiscal Transfer Provision of Expanded Block Grant (EBG) fromProvision of Expanded Block Grant (EBG) from

government through banking channel directly to thegovernment through banking channel directly to the'eligible' UPs' account in every six months (July'eligible' UPs' account in every six months (July--

September and FebruarySeptember and February--March).March). This new arrangementwill be incrementallyThis new arrangementwill be incrementally

introduced from the2nd year of theproject, when anintroduced from the2nd year of theproject, when anestimated 20estimated 20 -- 25% of UPs will obtain eligibility each25% of UPs will obtain eligibility each

year through audit, and increasing to 100% of UP atyear through audit, and increasing to 100% of UP attheend of theproject2011.theend of theproject2011.

UPs will haveconsiderable amount of flexibility andUPs will haveconsiderable amount of flexibility anddiscretion in the use of resources. The average sizediscretion in the use of resources. The average sizeof the EBG (based on pop) will rise from $10,000 inof the EBG (based on pop) will rise from $10,000 inthe2nd year to $20,000 by the5th year.the2nd year to $20,000 by the5th year.


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UP Eligibility CriterionUP Eligibility Criterion

Official UP bank account

Staffcapacity- one qualified trained secretary Auditwith no objection (auditwill include financial,

procurement, social and environment)

Participatory budgetwith minutes of UP resolution


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Component 2: InstitutionalizingComponent 2: Institutionalizing

AccountabilityAccountability

The accountability framework will have following sub-components: Quarterly Reporting : by UP to LGD, UNO and DD-LG Strengthened MIS: at (MIE-LGD) would assist in

monitoring UP performance and quick decision making

Auditing: LGD will conduct financial, procurement, socialand environmental audit annually and eligible UPs will be

selected based on the findings. Comptroller and AuditorGeneral (CAG) and Institute of Chartered Accountants ofBangladesh (ICAB) will provide quality assurance byreviewing the TOR, selection of firms and reports.


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Component 2: InstitutionalizingComponent 2: Institutionalizing

Accountability (Cont.)Accountability (Cont.)

Participation and public disclosure through open auditParticipation and public disclosure through open auditfindings, budget and performance meetings & noticefindings, budget and performance meetings & noticeboards.boards.

Support, intervention and grievance redress bySupport, intervention and grievance redress byestablishment of a Block Grant Coordinationestablishment of a Block Grant CoordinationCommittee (BGCC)at the Upazila level.Committee (BGCC)at the Upazila level.


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Component 3:Component 3:

Capacity DevelopmentCapacity Development

Strengthen thecapacity of GoB institutionsStrengthen thecapacity of GoB institutionssuch as LGD, NILG, CAG and local officials.such as LGD, NILG, CAG and local officials.

Upazila ResourceTeam (URT) established asUpazila ResourceTeam (URT) established asa long term capacity building approach.a long term capacity building approach.

Training and capacity building by privateTraining and capacity building by private

serviceproviders for UP functionaries (14).serviceproviders for UP functionaries (14).

Information, Education & CommunicationInformation, Education & Communication(IEC) campaign addressed to thepublic at(IEC) campaign addressed to thepublic atlargeconcerning the LGSP block grantlargeconcerning the LGSP block grantcondition and cycle.condition and cycle.


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Component 4 & 5 (Cont.)Component 4 & 5 (Cont.) Component 4 Performance Review

and Policy Development

Developcapacity within the Ministry to review UPperformance; draw innovative lessons; undertakeresearch and analysis; and formulatepolicy

Component 5- Learning & Innovation

(LIC) 6 LIC Districts, in 6 divisions receive

supplementary support (from UNCDF/EC budget)apart from the EBG for 'second generation' pilots


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Implementation ModalitiesImplementation Modalities

AA Project Steering CommitteeProject Steering Committee chaired by thechaired by theSecretary, LGD and members from relevantSecretary, LGD and members from relevantministries, agencies and development partners.ministries, agencies and development partners.

National Project Director: Overall responsibility

for the management of LGSP will be vested inLGD, placed under the National Project Directorand assisted by respective 'Focal Points' fordifferent components.

At least twoAt least two Annual Stakeholder WorkshopsAnnual Stakeholder Workshops

will be held to review progress & getting civilwill be held to review progress & getting civilsociety feedback.society feedback.

Block Grant Coordination Committee (BGCC)Block Grant Coordination Committee (BGCC)chaired by UNO, and consisting of all UP chairschaired by UNO, and consisting of all UP chairsand relevant upazila officials and for coordinationand relevant upazila officials and for coordination

and facilitation of LGSP.and facilitation of LGSP.


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Implementation Modalities (Cont.)Implementation Modalities (Cont.)

The UPs will implement 'schemes' , supported byScheme Implementation and Supervisioncommittees (SIC, SSC), which will includecommunity members.

For IEC and Capacity building components,necessary supportwill beprovided by NILG andother government and non-government serviceproviders.

Necessary technical assistance (for scheme

implementation and supervision) will beprovidedby Upazila officials e.g. Local GovernmentEngineering Department (LGED), Department ofPublic Health Engineering (DPHE) and other lineMinistries working at the local level.


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Demand side/social accountability andchallenges

Challenges:Challenges: Support to LG and their autonomy only would not address governance

comprehensively or providebenefits equitably for all. Governance to focus more on building peer and demand sidepressure Empowerment of thepoor and vulnerable should be real Opportunity cost ofpoor to engage in participation and social accountability

process without action and benefits is high LGSP social accountability process:

Community level.- Capacity building of thevulnerable;breaking patron-client relationship- Elitecapture (potential)UP(LG)

- Comprehensivecapacity building .- making accountability to citizens a win-win situationGovernment- Strong commitment for decentralization/devolution ofpower throughlegislation and action (elections, fiscal transfers). Revised LG Acts 2008- Strong commitment for transparency and accountability to citizens


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On-going social accountability

CSO facilitation:

developing capacity of thevulnerable to holdUP accountable.

disseminating information of amount of fundsreceived and organizing open schemepreparation, budget and performance reviewmeetings and scheme monitoring

Face to Facewith your constituency meeting UPs were reluctant at first, but realized thisas a useful mechanism to win nextelections

Community Score Cards and monitoringprogress


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Partnershipwith media, academic

institutions and ICT Firms Regular program through TV, radio and newspaper Training of local journalists on UP procurementprocess and

monitoring results

Students Receive UP info from Community Information centers(CIC), hosted by ICT firms, and disseminating info tocommunity.

Students to establish UP/LG study forum, organize roundtablesand support interfacebetween community and LG.

University students conducting research on UPs and learningabout developmentprogram.

Dissemination of UP budget, audit finding thru SMS (part ofcorporate social responsibility)

Demystify budget, audit and financial statements anddisseminate to vulnerablecommunities

Under the RTI, demand info from UPs


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Decentralisation 1

Documents