Search

Begin New Search Topic Decentralization

1. Papua New Guinea’s fiscal decentralisation: A way forward

Author:
Maholopa Laveil
Publication Date:
03-2024
Content Type:
Commentary and Analysis
Institution:
Lowy Institute for International Policy
Abstract:
Fiscal decentralisation in Papua New Guinea (PNG) has been a contentious topic for much of the country’s history. PNG has had several attempts at decentralising fiscal responsibilities, without much success in improving governance or service delivery. This is concerning, given sub-national funding has increased in the past decade. Governance has deteriorated over time as more responsibilities and funds are channelled to lower levels of government, including through unaccountable transfers to members of parliament (MPs) to use at their discretion. Government effectiveness and service delivery have suffered as a result, leading to poor development outcomes. This paper examines the weaknesses in the decentralisation process and how these mechanisms can be strengthened. Data collected from PNG government budget reports is analysed both for insights into the decentralisation of finances to provinces since 2007 and implications for service delivery and accountable governance. Where data are publicly available, the paper compares sub-national revenues and operational and capital spending across provinces, provides contrasts to global experiences, and relates the insights gained from field interviews of province and district administration staff in two provinces: East New Britain and New Ireland. The paper concludes with reflections on policy implications.
Topic:
Governance, Budget, Fiscal Policy, and Decentralization
Political Geography:
Australia/Pacific and Papua New Guinea

2. Decentralized Autonomous Organizations and Policy Considerations in the United States

Author:
Sarah Hubbard
Publication Date:
05-2023
Content Type:
Policy Brief
Institution:
Belfer Center for Science and International Affairs, Harvard University
Abstract:
Decentralized Autonomous Organizations (DAOs) can be defined as global, digitally-native organizations which enable people to coordinate and govern shared resources and activities through the use of smart contracts on blockchains. The explosive growth of DAOs since 2020 has led to experimentation, speculation, and investment in this emerging organizational framework. There are an estimated 6,000 DAOs as of June 2022, with participation from contributors around the world and an aggregate treasury value of an estimated $25 billion. While the web3 space has been marred by scams and bad actors, there are legitimate use cases for DAOs. Early applications include focuses on fractionalized ownership and control, incentive alignment, resilient operations, and collective action. DAOs demonstrate innovative potential and are producing new forms of tax revenue and employment for the U.S. States have taken various approaches towards legislation, including establishing a DAO LLC. The U.S. government needs a comprehensive strategy for addressing DAOs as novel organizational structures to retain domestic innovation and protect consumers. Future policy solutions should consider the following: DAOs have technical and operational uniqueness that should be taken into account by legislators and regulators. The United States must provide legal clarity to retain domestic innovation. The friction of existing organizational formation should be reduced and adapted. A multi-pronged approach is needed across the federal-level, state-level, and industry self-governance practices. This report aims to serve as an accessible primer for United States policymakers to understand the unique opportunities and challenges DAOs present, and how these organizations may be addressed in the regulatory landscape of the U.S. The first section of this report establishes the societal context in which DAOs have emerged, with an emphasis on the trends in organizational frameworks and working conditions to which DAOs respond. The second section describes the underlying technical and structural components that DAOs are built upon. The third section outlines the key purposes and applications of DAOs and shares findings from case studies and semi-structured interviews with 12 DAOs and 20 DAO contributors. The final section provides an overview of existing legislation and concludes by outlining directional considerations for policymakers.
Topic:
Decentralization, Autonomy, and Cyberspace
Political Geography:
North America and United States of America

3. Financial Autonomy of Decentralized Local Authorities and Local Development

Author:
Herve Ondoua, Bin Meh, Boris Andzanga Ndzana, and Jean-Cedric Kouam
Publication Date:
02-2023
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
The financial autonomy of Decentralized Territorial Collectivities (DTCs) is today considered as the foundation of local governance. It confers decision-making power in financial matters to municipalities and regions, as well as a certain level of independence in the management of the resources at their disposal. In Cameroon, the general principles of financial autonomy are defined in the law on the General Code of DTCs, in particular in the Fifth Book, which repeals the law establishing the financial regime of local authorities and that on the financial regime of the State. Thus, financial autonomy should enable DTCs to develop by using their own resources in improving the living conditions of their populations. Despite these powers, DTCs still depend for the most part on income from municipal taxes and income transferred by the State. However, DTCs in Cameroon have real economic and financial potential but not a degree of financial autonomy that would allow them to accelerate the development of their locality. This reflection is aimed at local elected officials, political authorities, government authorities and civil society, with the aim of examining the effectiveness of financial autonomy in the face of the economic and financial potential of DTCs and their ability to implement their own local development projects. This article relates financial autonomy and local governance, on the one hand, and shows how financial autonomy is a factor of valorization of local resources, on the other hand.
Topic:
Development, Government, Finance, Local, Decentralization, and Autonomy
Political Geography:
Africa and Cameroon

4. The Regional Administrative Structure in Cameroon

Author:
Ebenezer David Ngahna Mangmadi
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
The Nkafu Policy Institute
Abstract:
Be it from a common law or a special status, a regional and local authorities[1] resulting from the constitutional reform of January 18, 1996[2], has an administration in charge of instructing and implementing the decisions taken by its executive organs. Under the authority of a secretary general who is appointed by the President of the Republic[3], it is implemented according to the standard organisation set out in decree n°2021/742 of 28 December 2021. It should be noted that this important legal text taken in application of article 496 of law n°2019/024 of 24 December 2009 on the general code of regional and local authorities (hereafter CGCTD), has greatly contributed to the acceleration of the process of establishing the regions initiated by the elections of December 6, 2020. The configuration of the standard model of regional administration that it suggests, highlights a complex combination of structures with diverse functions, the articulation of which may vary from case to case. This organisational scheme reveals the extent of the tasks that a regional administration must undertake, but it is not easy to access. As such, it deserves to be explained. This note is intended for professionals in the field of decentralisation, researchers and citizens seeking information. More clearly, the aim is to inform the reader about the subtleties of the structuring of the regional administration. To achieve this, it relies on an interpretive approach to the texts, mainly, the law n°2019/024 of 24 December 2019, and the decree of 28 December 2021. After presenting the different structures of the regional administration (I), the text will dwell on their articulation (II).
Topic:
Government, Local, Decentralization, and Regionalism
Political Geography:
Africa and Cameroon

5. THE REGIONAL DIMENSION OF CORRUPTION RISKS IN THE CZECH REPUBLIC IN THE LIGHT OF DECENTRALIZATION

Author:
Yevheniy Haydanka
Publication Date:
07-2023
Content Type:
Journal Article
Journal:
Journal of Liberty and International Affairs
Institution:
Institute for Research and European Studies (IRES)
Abstract:
The article elucidates the relationship between decentralization and corruption risks in the Czech Republic. Economic inequality in the regions inevitably leads to corruption risks. The unemployment rate and the wage level determined the fragmentation of the Czech regions. Most Czech regions (8 out of 14) have an average unemployment rate (of 3-5%). The capital Prague (44 thousand korunas), as well as the Central Bohemian Region (35 thousand korunas), significantly differ from the rest of the Czech regions in wage level (within 31-32 thousand korunas). If the Czech regions are similar in the unemployment rate, there is a noticeable stratification between the capital and other regions. The findings of an expert survey among civil servants and deputies of regional Assemblies identified corruption and anti-corruption measures in the regions. The sphere of public administration is the most corrupt. Partially corrupt is the provision of administrative services. The greatest corruption risks result from the employees’ influence on funding sources (grants, subsidies and grants). On a 10-point scale, the average corruption in the regions is 5,8. More research prospects derive from studying corruption risks at the regional rather than national levels and expanding the geographical framework of the transition countries under research.
Topic:
Corruption, Risk, Unemployment, Decentralization, Wages, and Regionalization
Political Geography:
Europe and Czech Republic

6. Rewarding allegiance: Political alignment and fiscal outcomes in local government

Author:
Christa N. Brunnschweiler and Samuel K. Obeng
Publication Date:
07-2023
Content Type:
Working Paper
Institution:
Nottingham Interdisciplinary Centre for Economic and Political Research (NICEP)
Abstract:
We examine how local governments’ political alignment with central government affects subnational fiscal outcomes. In theory, alignment could be rewarded for example with more intergovernmental transfers, or swing voters in unaligned constituencies could be targeted instead. We analyze data from Ghana, which has a complex decentralized system that seeks to preclude political alignment effects. District Chief Executives (DCEs) are centrally appointed local administrators loyal to the ruling party, while district Members of Parliament (MPs) may belong to another party. A formula for central transfer distribution aims to limit the influence of party politics. Using a new dataset for 1994-2018 and a close election regression discontinuity design we find that despite this system, there is evidence of politically-motivated local fiscal outcomes. Aligned districts receive lower transfers and have lower district expenditure and internally generated funds, indicating swing-voter targeting. Results suggest that district fragmentations have weakened these effects. We also show strong electoral cycle effects, with mid-term peaks in fiscal outcomes.
Topic:
Elections, Fiscal Policy, Decentralization, and Local Government
Political Geography:
Africa and Ghana

7. Beyond Compliance: A Performance Assessment of Statutory Boards and Commissions in Uganda’s Local Governments FY 2021/2022

Author:
Arthur Bainomugisha, Wilson Winstons Muhwezi, Walter Akena, Jonas Mbabazi, and Rebecca N. Mukwaya
Publication Date:
01-2023
Content Type:
Research Paper
Institution:
Advocates Coalition for Development and Environment (ACODE)
Abstract:
This report presents findings from the first assessment of Statutory Boards and Commissions comprising the District Service Commissions (DSC), District Land Boards (DLB), and LG Public Accounts Committees (LGPAC) in 26 District Local Governments. This cutting-edge Assessment was the first of its kind and provided a ground-breaking opportunity to examine these important structures designed to provide regulation, oversight and additional citizen representation and voice, within the ambit of Uganda’s Decentralisation Policy. The report offers interesting and intriguing insights into the operations of the Statutory Boards and Commissions which point to an urgent need to revitalise and strengthen them as critical pillars of Local Governance in Uganda. Uganda’s Decentralisation Policy devolved powers to the Local Governments. These powers rest on three key pillars, namely the Local Council (including the Executive), the Technical Staff and the Statutory Bodies. As such, Uganda’s Decentralisation Policy is both a political and a technical process. At the political level it involves leadership, participation, inclusion, representation, decision-making, and power relations between Central and Local Governments, and between Higher and Lower Local Governments. On the technical level, it involves administration, planning, budgeting, financial management, human resources management and development, monitoring and evaluation, supervision and mentoring. Thus, the success of Decentralisation is highly contingent on the careful and effective synchronization of political and technical elements and functions. At the commencement of the decentralisation policy, the government, through several legal instruments, created an elaborate institutional framework for support and oversight at the local government level. These institutions include the District Service Commission, District Land Board, Local Government Public Accounts Committees, and the District Tender Boards (now contracts committee) which later morphed into the District Contracts Committees (Mushemeza, 2019). The assessment of these statutory boards and commissions was underpinned by a series of ACODE’s scorecard findings that consistently revealed that the functionality of committees and statutory boards and commissions have a bearing on the general performance of district local government councils and subsequently the quality-of-service delivery in local governments. Furthermore, a number of studies indicated structural and operational gaps in the functionality of various accountability organs at the Local Government level1 . Given the importance of this tripartite relationship highlighted above, the functionality and strength of the Statutory Boards and Commissions is an important yardstick and litmus test for the overall functionality of a given Local Government. It is against this background that the assessment sought to examine the performance of the statutory boards and commissions. Specifically, the assessment sought to; (i) Explore the extent to which statutory boards and commissions have complied with their roles and responsibilities; (ii) Analyse how statutory boards and commissions are accountable to council and citizens; and (iii) Explore key issues impeding and or facilitating Statutory Boards and Commissions in delivering on their statutory roles and responsibilities and make appropriate recommendations. The assessment largely drew from the methodology of the Local Government Scorecard Assessment (Tumushabe, Mushemeza, Tamale, Lukwago, & Ssemakula, 2010). The assessment is further grounded in rigorous methodological approaches that adhere to scientific rigour. This assessment focused on FY 2021/2022 and was carried out in the 26 districts of Agago, Amuria, Amuru, Arua, Buliisa, Hoima, Gulu, Jinja, Kanungu, Kabarole, Kamuli, Lira, Luwero, Mbale, Mbarara, Moroto, Mpigi, Mukono, Nakapiripirit, Nebbi, Ntungamo, Rukungiri, Sheema, Soroti, Tororo and Wakiso. The overall finding of the Assessment was that the Statutory Boards and Commissions exist at the Local Government level and are attempting to discharge their duties and functions, in spite of the stiff challenges that their face. Notwithstanding their regulatory import and function, their role as an added citizen representation and voice, the Statutory Bodies were noted to have declining visibility and significance – across all the 26 districts assessed. Different Boards and Commissions in the different districts exhibit varying levels of resilience and functionality. Overall, there seemed to be a general “neglect” of the Statutory Bodies, across the Board.
Topic:
Regulation, Decentralization, Compliance, Assessment, and Local Government
Political Geography:
Uganda and Africa

8. Analysis of the National Budget Estimates FY 2023/24: Budget Lines for Local Government Mandates under Central Government MDAs and Proposals for Re-Allocation

Author:
Daniel Lukwago
Publication Date:
01-2023
Content Type:
Research Paper
Institution:
Advocates Coalition for Development and Environment (ACODE)
Abstract:
To enable Local Governments (LGs) to provide services to the citizens, the Central Government (CG) of Uganda is required to provide them grants in the form of unconditional, conditional and equalisation. However, over the last decade, there has been a decline in the share of transfers from CG to LGs. The share of the national budget allocated to LG programmes has reduced from 22 per cent in FY 2010/11 to 13 per cent in FY 2015/16 and fell further to 9.8 per cent in FY 2023/14. The decline is largely attributed to recentralization of functions and resources which by law are mandated under LGs. A study by ACODE in 2020, which was a follow-up study, found that despite recommendations of the 2019 study, the allocation of funds meant for LGs to Central Government Ministries Departments and Agencies n(MDAs) had not only persisted, but the absolute amounts as well as the proportion of the budget being retained at the CG had increased. The total amount retained at CG MDAs had grown to UGX 1.32 trillion in FY2020/21 from UGX 1.066 trillion in FY 2019/20. Consequently, with funding from the Royal Danish Embassy (RDE), ACODE commissioned this follow-up study to examine the approved national budget estimates for FY 2023/24 to identify budget lines for devolved services under CG MDAs. The study extensively reviewed all relevant budget documents, focusing mainly on the approved estimates of revenue and expenditure (recurrent and development) FY 2023/24. The study analysed ten programmes with decentralised functions as prescribed in the Local Government Act, CAP 243 (second Schedule) and identified funds retained by the CG MDAs, yet they are mandated for LGs. The programmes analysed were Agro-Industralisation; Natural Resources, Environment, Climate Change, Land and Water Management; Private Sector Development; Integrated Transport Infrastructure and Services; Sustainable Urbanization and Housing; Human Capital Development, Community Mobilization and Mindset Change Regional Development; Public Sector Transformation and Tourism Development.
Topic:
Budget, Decentralization, Assessment, and Local Government
Political Geography:
Uganda and Africa

9. Decentralization and Geographical Inequality in Egypt

Author:
Mohamed Abdel Hadi Shantir
Publication Date:
04-2022
Content Type:
Policy Brief
Institution:
Arab Reform Initiative (ARI)
Abstract:
Egypt’s social policies suffer from serious challenges, especially at the spatial level. This is often referred to as the “geographical inequality” gap between the most privileged and less fortunate governorates, or the ones with limited resources. This is in addition to the disparity between different localities within the same governorate. These disparities are due to a highly centralized system of policy-making, resource management, and service distribution – which has been in place since 2014. The issues also include rising corruption rates, which often compromise any potential reforms. According to the 2020 Corruption Perceptions Index issued by Transparency International, Egypt fell by 11 places and ranked 117 among 180 countries, with a score of 33 out of 100 points.[i] Decentralization is considered a requirement that addresses geographical or spatial imbalances in the country, provided that the necessary standards for effective implementation are met. It is an important policy tool for achieving development and promoting democracy. It also helps citizens recognize whether the State is acting in their favor or in favor of monopolizing power and wealth. The effective and integrated implementation of decentralization contributes to increasing the efficiency of local utilities and public services, involving citizens in the management of their local affairs, training the administrative personnel required to implement the vision of local development and to ensure the optimal use of resources, while improving performance in local action. This directly leads to strengthening the quality of life and livelihoods at the local level, promoting a sense of national belonging, and increasing the level of trust between citizens and government.
Topic:
Inequality, Decentralization, Geography, and Equality
Political Geography:
Africa and Egypt

10. Impacting policies: Waste management and advocacy in Lebanon

Author:
Samar Khalil
Publication Date:
06-2022
Content Type:
Research Paper
Institution:
Arab Reform Initiative (ARI)
Abstract:
Since 1994, Lebanon's waste management policy has consisted of implementing a series of emergency plans, each partially and poorly executed, and extended until a new crisis emerged. Devoid of any measures to move to long-term, sustainable planning, these local emergency fixes to the lingering waste crisis have incurred high financial costs for citizens as well as negative environmental, health, and safety impacts. Lebanese citizens are paying a high price for solid waste management (SWM). Lebanon spends $154.5 to manage every ton of solid waste, compared to Algeria, Jordan, and Syria which spend $7.22, $22.8, and $21.55, respectively (Human Rights Watch, 2020). The solid waste sector ranked first in terms of environment-related government spending in Lebanon, with a total of $647 million spent between 1998 and 2008 (Arif & Doumani, 2014). Expenditures on SWM reached $2.2 billion between 1996 and 2015 (Akiki, 2019). Despite these high expenditures, the cost of environmental degradation (COED) from the solid waste sector was around $66.5 million (0.2% of national GDP) in 2012 (Arif & Doumani, 2014), increasing to $200 million (0.4% of GDP) in 2018 (MoE, UNDP, 2019). To date, around 20% of the waste is recovered, out of which only 6% reaches recycling facilities, 36% is landfilled, and 44% is dumped in around 940 open dumps scattered throughout the country (MoE, UNDP, UNHCR, UNICEF, 2020). At the same time, the private company contracted since 1994 to collect and treat much of Lebanon’s waste – Sukleen (part of the Averda Group) – has generated over $170 million in revenues per year, one of the highest waste management revenues in the world (Chaaban, 2016). Sukleen has held a monopoly in waste management in Beirut and Mount Lebanon since the 1990s, when it won a contract for building, testing, and operating a waste incinerator located in the city of Amrousiyeh. Operation at that site was short-lived as angry residents burned the plant down in 1996, but through other contracts, Sukleen came to handle around 50% of the waste generated nationally, serving around 400 municipalities (Chaaban, 2016). The company’s contract was renewed three times by the Council for Development and Reconstruction (CDR) without an open tender. With each contract renewal, collection and processing fees increased, all paid using transfers from the Independent Municipal Fund, an intergovernmental grant system that disburses taxes and fees to municipalities. Successive plans for integrated solid waste management (ISWM) – in 2006, 2010, 2014, 2015 and 2019 – never bore fruit. Instead, Sukleen’s monopoly persisted in Beirut and Mount Lebanon, with its contracts managed by the central government rather than the municipalities. Meanwhile, in other regions, municipalities and federations of municipalities managed their waste following a decentralized approach, with international aid being channelled to finance Mechanical-Biological Treatment (MBT) plants for sorting and composting, achieving low diversion rates from landfills and dumps (Azzi, 2017).
Topic:
Governance, Decentralization, Waste, and Management
Political Geography:
Middle East and Lebanon