Decentralization

1
Decentralization Sub-national Regional
Economics Ongoing Activities Engagement in
the MNA Region

• MNA Regional Team
• Decentralization and Sub-national Regional
  Economics Thematic Group
  
• Informal Open House
• March 8, 2007

2
Issues Structural Hierarchies

• Urban Land Use Planning Still Highly
  Centralized
  
• Many services still planned/managed at the
  central level

3
Issues Intergovernmental Fiscal Relations

• High fiscal centralization - limited local
  expenditure autonomy low local own source
  revenue unpredictable transfer pool,
  distribution and low equalization effect

4
Issues Lack of LG Policy Space
5
Issues Weak Accountability
6
Government Responses

• A managed process of decentralization with
  incremental improvements
  
• Responding to political pressures from
  well-organized and financed socio-religious
  groups
  
• Increasing political decentralization local
  elections in Lebanon (1998), Yemen (2000), WBG
  (2004-5), Jordan (forthcoming)
  
• Rethinking Institutional Arrangements The Role
  of Intermediate-Level Governorates
  
• Increasing central transfers for approved
  investments (off budget)
  
• But the institutions for fiscal/admin
  decentralization remain weak
  

7
Government Responses
8
MNA Regional Strategies/Interventions

• Financial Systems Approach Municipal Development
  Funds (performance-based grant incentives
  introduced) -- Tunisia, WBG, Jordan Working
  with IFC Subnatl Finance Dept
• Lagging Regions Analytical Operational
  Iran, Egypt and Jordan (poverty driven)
  
• CDD/Participatory Approaches Focusing on access
  to services -- Morocco, WBG (poverty driven)
  
• Competitive Cities Egypt (Alex), Yemen Ports
  (PCDP) (growth driven) Working with IFC-PEPMNA
  Cities Alliance
  
• Land Municipal Asset Management Yemen
  Egypt
  
• Cultural Heritage Assets Jordan, Morocco
  (growth driven)
  
• Fiscal Decentralization Governance Issues
  Joint work with Urban/PREM on MNA Governance
  website and joint efforts on PERs
  
• Regional Stocktaking Knowledge Dissemination
  Data collection and analysis Service Delivery
  Surveys (cost-effective tools to gauge end-user
  perception of services)

9
MNA Service Delivery Survey (2006)

• Focus Group methods were originally developed
  for market research in the 1970s but are now used
  for exploratory policy-oriented research.

Introducing cost effective tools to gauge
end-user satisfaction.
10
Service Delivery Survey Citizen Participation
in Local Decision-Making