Decentralisation and service delivery

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Decentralisation and service delivery

• Philip van Ryneveld
• IMFO Western Cape conference
• 18th June 2007

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Benefits of decentralisation for service delivery

• Democracy
• Accountability to local residents improves
  responsiveness to their needs
• Economic efficiency
• Better tailoring of resource use to local needs
  makes spending more effective
• Administrative efficiency
• Simpler and quicker processes

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Risks of decentralisation

• Action in one locality impacts negatively on
  another
• Insufficient financial and administrative
  capacity in some localities

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1996 Constitution

• Creates the basis for significant local autonomy
  within a national developmental framework
• Incorporates benefits and manages risks
• Reflective of the post UDF period
• UDF stressed local rather than provincial
  government
• Recognises benefits of decentralisation by
  creating three spheres of government
• Incorporates the notion of subsidiarity within
  a framework of co-operative government
• Provides for local taxation and other revenue
  sources
• Provides for allocation of resources to poor
  regions through transparent grant mechanisms
• Protects local government from undue interference

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Section 156 powers and functions

• A municipality has executive authority in respect
  of, and has the right to administer
• the local government matters listed in Part B of
  Schedule 4 and Part B of Schedule 5 and
• Any other matter assigned to it by national or
  provincial legislation

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• 156 (4) The national government and provincial
  governments must assign to a municipality, by
  agreement and subject to any conditions, the
  administration of a matter listed in Part A of
  Schedule 4 or Part A of Schedule 5 which
  necessarily relates to local government if
• that matter would most effectively be
  administered locally and
• the municipality has the capacity to administer it

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Developments since 1996

• Generally positive
• Creation of metropolitan and local municipalities
  with wide boundaries
• Significant extension of service delivery
• Modernisation of financial administration
• System of fiscal transfers to poor localities
• Some significant problems
• Role of districts
• Administrative incapacity in some localities
• Inadequate service delivery in some areas
• Confusion on division of functions

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Significant new threats

• Abolition of RSC/JSB levies
• Re-organisation of electricity distribution
  industry
• Single public service

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Johannesburg
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Cape Town
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Hierarchical approach to the Constitution
undermines local government voice

• Inter-governmental Relations Act
• MINMECS
• Cabinet lekgotlas
• Organisation of SALGA
• ANC structures

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• Is the notion of a Developmental State a
  euphemism for centralisation?
• What are the implications for service delivery?
• What can we do about it?