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Progress in Decentralisation Reforms in Rwanda: Achievements and Future Directions

This document outlines the significant progress made in decentralisation reforms in Rwanda, initiated in 2000. It highlights the achievements from the first phase, such as the institutionalisation of local governance and fiscal decentralisation mechanisms. The report also addresses challenges faced post-reform, including low fiscal potential and poor service delivery. Moving forward, key reforms to strengthen local governance and enhance accountability are discussed, along with strategies for future fiscal decentralisation and community development planning.

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Progress in Decentralisation Reforms in Rwanda: Achievements and Future Directions

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  1. PROGRESS IN DECENTRALISATION REFORMS MUSONI Protais Minister of Local Government, Good Governance, Community Development and Social Affairs

  2. AREAS TO BE COVERED • Introduction • 1st phase achievements • Challenges after 1st phase • Reform • Framework for decentralised accountability • Fiscal decentralisation • Impacts • Way forward

  3. INTRODUCTION • Policy and Implementation Strategy adopted in 2000 • Evaluations 2003, 2004, 2005 leading to the reform • Reform in 2006 • Development RDSF – long term framework

  4. 1st PHASE ACHIEVEMENTS • Institutionalisation of Local Governance • Fiscal Decentralisation mechanisms : LGBSF, CDF, Devolved taxes, UBUDEHE … • Bottom-up, participatory planning and budgeting using CDCs, DDPs,… • Pilots in contract performance in health and education • Conflict resolution mechanisms : Gacaca, abunzi, injustice combating committees (komite zica akarengane) • Piloting citizen report card • Decentralised service delivery work in Rwanda– tool developed

  5. CHALLENGES AFTER 1ST PHASE Evaluations showed : • Low fiscal potential for LGs • Weak fiscal potential and revenues • Poor service delivery • Weak Institutional coordination • Un-coordinated and unharmonised financial support (GoR, Donors)

  6. REFORM TO CORRECT WEAKNESSES • Restructuring to strengthen financial base • Clarification of roles and responsibilities : deepening decentralisation • Reviewing fiscal decentralisation policy • Strengthening oversight function of council • Strengthening human resource base (recruitment, requirement and retention) • Institutionalising public accountability mechanisms

  7. FRAMEWORK FOR DECENTRALISED ACCOUNTABILITY NATIONAL POLICY MAKERS • IMIHIGO • Inspection • Audit voice Local Gov Policy Makers Contractual performance approach (health, education, tender procedures, JAF IMIHIGO, CDC • Financial (taxes, contribution fees) • oversight (Mituel, PTA, education funds, water committees) Service providers (pub , Private, civil) Citizens Citizen/ client power

  8. VOICE • Elections, opinion surveys, public accountability, Town Hall meetings, public meetings, CRC, CSC, Annual National Dialogue meeting, Q&A Radio and TV programmes • Monthly UMUDUGUDU meetings, social audits, participatory programme UBUDEHE, ABUNZI, service satisfaction surveys, IMIHIGO, CDC

  9. COMMUNITY DEVELOPMENT PLANNING up DISTRICT COUNCIL Decision making Top I M P L E M E N T A T I O N JAF EXECUTIVE COMMUTEES CDC at district Women/Youth committee EXECUTIVE SECRETARY Women/Youth committee CDC at sector SECTOR CDC at cell Women/Youth committee CELL EXEC SECRETARY Needs Satisfactions/dissatisfaction Umudugudu/Population /Monthly meetings/UBUDEHE/ Down Bottom

  10. District Development Plans (5 yrs) Annual Performance Contract (Imihigo) Orientation Annually National Dialogue Meeting (Constitutional) Every Six Months National Review (President/Mayors) Monthly: Progress report Quarterly Accountability Day (local) Presentation to JAF and Council Review with CG IMIHIGO – MONITORING REGIME Future of IMIHIGO

  11. FUTURE IMIHIGO 2006 • Spontaneous • Self evaluation • Independant 2007 • Umudugudu : Community welfare and social cohesion • Cell : Data • Sector : Service provision • District : Local development

  12. FISCAL DECENTRALISATION • Principles • Mechanisms

  13. FISCAL DECENTRALISATION PRINCIPLES • Matching funding to responsibilities • Equity • Transparency • Accountability • Performance • Incentives and enforcement • Distribution formula for LGBSF and CDF

  14. FISCAL DECENTRALISATIONMECHANISMS • LGBSF (5%) • Earmarked (sectoral) Equalisation • CDF National systems • UBUDEHE

  15. MECANISME DE FINANCEMENT DU CDF ET LES ROLES DES PARTENAIRES Gouvernement Rwandais Bailleurs de fonds G.R & Bailleur: Financement et contrôle Après accord avec le Gvt sur un projet approuvé par le CEPEX CDF - BNR CDF: Orientation, Répartition, Suivi , Pilotage, Rapports Cfr: Loi portant création, org. Et fonct. Du CDF Compte « Fonctionnement» COMPTES DE DEVELOPPEMENT Compte Gvt Rwa Compte Bailleur 1 Compte Bailleur 2 Compte Programme x Compte UBUDEHE PROVINCE Harmonisation,Coordination, Suivi, joint action Dictrict District District District District District GouvernementLocal Formulation, approbation, Mise en œuvre, Rapports, Joint action S/C G.R S/C Bailleur 1 S/C Bailleur 2… S/C Bailleur n Lot de projets Lot de projets Lot de projets Lot de projets Lot de projets Community Planning,Execution, social control UMUDUGUDU : Community Projects

  16. IMPACT TO EXECUTION AFTER REFORM AND IMIHIGO PROCESS Sharp increase in projects implementation • CDF • PDRCIU

  17. IMPACT OF REFORM ON CDF DISTRICT TRANSFERS (2004 – 2006)

  18. EXPENDITURE STATEMENT BY YEARS

  19. IMPACT OF UBUDEHE • SELF – GOVERNANCE • PARTICIPATORY PLANNING • ENTERPRENEURSHIP AND INVESTMENT MULTIPLIER • BASELINE DATA

  20. UBUDEHE : RULINDO CELL Given : 700.000 Frw Now : • Boat services : 40.000 Frw/week • Milling machine : 520.000 Frw monthly • Employment creating : 5 people permanent working • Education fund and Mutuelle de santé

  21. WAY FORWAD • Development of RDSF/DIP to address the following challenges: • Weak institutional capacities and weak institutional coordination • Inadequate funding mechanisms and low financial capacities • Poor services • Uncoordinated and unharmonized financial support • Solicite support to Implement the DIP • Institutional set up and strengthening (NDIOS, MINALOC, CDF, RALGA, CDC, Steering committee) • Development of Local Government system management manuals • Basket Fund for Capacity Building at local levels • Communication Strategy • Rolling out CRC, CSC • Developing policy and legal framework for enhancement of Voice mechanisms

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