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Exploring Decentralisation: Challenges and Approaches in Sectoral Governance

This SWAP Joint Learning Event focuses on the complex tensions in decentralisation, examining both functional and political dimensions. It highlights the necessity for a balanced relationship between central and local governments, addressing issues such as autonomy, accountability, and fiscal decentralisation. Participants will explore international experiences, the importance of strong local governments, and the alignment of policy and planning processes with realities on the ground. The discussions will emphasize capacity development, performance monitoring, and the importance of coherence across sectors to enhance governance effectiveness.

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Exploring Decentralisation: Challenges and Approaches in Sectoral Governance

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  1. DECENTRALISED SECTORAL APPROACHES? SWAP Joint Learning Event

  2. Tensions in decentralisation • Functional and political dimensions, • «Center regulating, local level implementing» - reality differs • Autonomy of local level vs. control by central government • Accountability: downward first vs. upward first (where are service delivery objectives set?) • Fiscal decentralisation must match administrative decentralisation • Need for strong local governments but also need for a strong centre SWAP Joint Learning Event

  3. International experiences • Autonomy and downward accountability is difficult without a degree of fiscal autonomy (locally generated revenue) • No matter how great the autonomy, some form of upward accountability is always present • Design of system of fiscal transfers is shaping/shaped by decisions on how upward accountability is organised (sectoral or overall) • Funds must accompany functions (functional assignment…) • Support to decentralisation can be programme-based • Sector programme support tends to overlook decentralisation SWAP Joint Learning Event

  4. Policy and planning processes • Deepen knowledge and understanding of sector policies at local level (incl. elected councils) • Ensure that districts are represented in sector policy dialogues (domestic processes as well as joint reviews, thematic groups…) • Clarify central-local functional assignments and linkages, ensure consistency across sectors • Clarify financing of functions now and in future; both recurrent and investment… • Avoid proliferation of local government financing mechanisms SWAP Joint Learning Event

  5. Medium and short term budget preparation, district PFM • Sector ceilings within district ceilings?  District MTEF/budget process to include sectors or • District ceilings within sector ceilings?  Sector MTEF/budget process to include districts… • Calendar: Steps, inputs (ceilings), outputs (draft and final budgets with projections) … • Integral strengthening of local PFM capacity SWAP Joint Learning Event

  6. Capacity Development • Clarify bottom-up, top-down and horizontal drivers for and constraints to capacity development • Clarify capacity development responsibilities and linkages: local government organisations, sectors, cross-cutting ministries • Ensure coordination/complementarity between capacity development efforts – who has authority? • If progression (greater capacity  greater autonomy): who is responsible for assessment? SWAP Joint Learning Event

  7. Accountability & performance monitoring • Who defines which targets, and how is consistency with national objectives ensured • Streamline possible performance contracts & all reporting & monitoring mechanisms • Ensure upward accountability mechanisms also strengthen local accountability… • Accountability/reporting to district council: local financing and mandate only, or all government activities in district? • Who is in charge of consistency in approaches across sectors? SWAP Joint Learning Event

  8. Harmonisation and alignment • Do no harm… Avoid new separate financing mechanisms • Support «mapping» of interventions and overall pattern of resource flows • Ensure horizontal presence in sector programme dialogue structures SWAP Joint Learning Event

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