Functional Review IN Cambodia Shelley Flam consultant

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Functional Review IN CambodiaShelley
Flamconsultant

• German Technical Cooperation
• Administrative Reform and Decentralization
  Program
• Implemented by GTZ

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About this Presentation

• This presentation
• Looks at how functional review fits into DD
  reform process
• Presents ideas about designing an overall process
  to review government functions in order to
  identify which functions to transfer to
  sub-national councils
• Discusses some guiding concepts for deciding what
  functions to transfer and how
• The presentation expands on the legal framework
  (Organic Law), but does not come from the law

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• Where does functional review fit in DD reform?

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Background

• In 2001, the Law on the Administration and
  Management of Communes/ Sangkats was approved
• 1,621 commune/sangkat councils were elected and
  established in early 2002
• Councils have general role to serve the interests
  of their citizens, to improve socio-economic
  development
• Councils have some specific decentralized
  functions, i.e. to protect and conserve the
  environment natural resources
• But councils have focused almost exclusively on
  infrastructure
• Councils also delegated functions (i.e. civil
  registration delegated by MoI)

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Functional Review and DD Reform

• In May 2008, the National Assembly/Senate
  approved the Organic Law that establishes
  councils for Phnom Penh, provinces, towns,
  districts and khans
• Elections for these councils are expected around
  April 2009
• The Organic Law provides that councils for Phnom
  Penh, provinces, towns, districts and communes
  will receive specific sectoral functions to
  implement
• The Organic Law provides for these councils to
  have a unified administration aiming at
  coordination of sectors in the jurisdiction of
  the councils

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Functional Review and DD Reform

• Every sector (i.e. education, health, NRM) must
  be reviewed to decide which functions to transfer
  to which councils, or which to retain at the
  national level
• When a council receives a function, it must also
  receive the corresponding resources to implement
  the function effectively (resources finances,
  personnel, assets)
• Each council, therefore, will be transferred and
  will implement specific functions, and will have
  corresponding resources to do so

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Definitions of Key Terms

• Will look next at definitions of
• decentralization
• delegation
• deconcentration
• functional review

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Definitions of Key Terms

• Decentralization the transfer/assignment of
  functions and resources to elected sub-national
  councils that have local discretion to implement
  the functions and utilize the resources, and that
  are accountable to citizens (highest level of
  local discretion)
• Delegation the transfer of a function to
  sub-national councils to be carried out on behalf
  of the delegating authority, i.e. a ministry
  (less local discretion)
• Deconcentration the transfer of tasks from a
  ministry to its sub-national units, i.e.
  provincial departments or district offices (often
  no/little scope to make decisions)

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Examples
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Definition Functional Review Process

• The process of analyzing a sector in order to
  identify its functions, then determining whether
  each function should be allocated to a level of
  sub-national council
• For functions that are to be allocated to
  councils, the process determines whether the
  function is obligatory or permissive, whether it
  should be assigned (decentralized) or delegated,
  and what resources capacity development are
  required

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Definition Functional Review Process

• The process also identifies what functions should
  be retained as national level functions, and
  which of those national level functions should be
  deconcentrated to line ministry sub-national
  units

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• Why is functional review important to sector
  ministries?

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Implications for Sector Ministries

• The Organic Law establishes a National Committee
  to implement the law (NCDD)
• A responsibility of the NCDD is to oversee the
  review of each sector to determine which
  functions and resources should be transferred to
  councils
• That process will require participation of
  concerned ministries and should also involve
  councils
• Which functions are best decentralized /
  delegated / deconcentrated / retained at national
  level ?
• What are resources correspond to a function to be
  transferred?

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• What are some key considerations for designing a
  process for functional review?

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Key Considerations

• Space for political buy-in and consensus at all
  levels
• Membership of new NCDD and its structures, and
  other informal opportunities at national level
• Mechanisms to engage stakeholders at sub-national
  levels (councils, line ministry
  departments/offices)
• Mechanisms to engage civil society
• Long term vision
• predominant roles for each level of council
• strategy for decentralization versus
  deconcentration

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Key Considerations

• Continuity
• Critical that the process of transferring
  functions does not unduly disrupt currently
  provided services
• Equity issues
• Strategic Framework and Organic Law stress the
  promotion of equity for women men, children,
  youth, the poor, minority and ethnic groups
• Equity must be considered in the functional
  review process - this will require conscious
  effort

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Key Considerations

• Sectors, not Ministries
• Not all ministries correspond to a single sector
• Not all sectors correspond to a single ministry
• Specifying exclusions
• The NCDD may choose to identify matters that are
  off the table
• If so, how to ensure that the list is appropriate
• Creating in-country capacity
• Functional review will be an intensive exercise
  for 10 years, then an on-going task

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Key Considerations

• Phasing
• Critical in terms of capacity to review sectors
  at national level, and capacity of councils to
  absorb new functions
• Which sectors first? (Organic Law and NSDP)
• Geographic sequencing?
• Sequencing by sub-national level?
• First package of functions in each sector?
• Issue of symmetry (significant differences in
  size of jurisdictions)?

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• What entry points for consensus building (key
  consideration 1) might the NCDD offer in terms
  of its composition and the composition of its
  structures?

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New NCDD

• NCDD is at the centre of implementation of the
  Organic Law, including functional review
• NCDDs central role in functional review should
  be considered when determining its leadership and
  membership
• What are options for NCDD leadership?
• What are options for NCDD membership?
• What are options for NCDD structures?

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• What might a functional review process look like?

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Proposed 3-Step Process for Functional Review

• Three-step process is proposed here for
  functional review
• Preparatory phase
• Technical component
• Political component

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Proposed 3-Step Process for Sector Studies
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Actors Involved in Sector Studies

• Proposed that sector studies be conducted by
  sector technical working group under the
  Functions Resources Commission
• Sector technical working group members are
  technical officials from concerned ministries
  plus the ministries that are involved
  cross-sectorally
• Proposed that a sector technical working group
  periodically consult with a sector-specific
  resource group (sub-national stakeholders,
  including sub-national administrations relevant
  depts/offices, and councils civil society
  academia)

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First Sectors for Review

• The Organic Law (Article 215) suggests that the
  following sectors will be reviewed first
• Agriculture
• Education
• Forestry, natural resources, environment
• Health, nutrition and related services
• Industry and support to economic development
• .

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First Sectors for Review

• And
• Land use
• Electricity production distribution
• Water management
• Infrastructure and facilities related to the
  above
• Special needs (i.e. Phnom Penh, Siem Reap)
• These sectors are consistent with the priorities
  set out in the National Development Strategic Plan

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• End of Part 1 of the presentation
• Thank you

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Part 2
Functional Review IN Cambodia key Concepts
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Key Concepts for Functional Review

• Part 2 of the presentation looks at the following
  key concepts
• unbundling functions
• obligatory functions/minimum basic services
• concept of subsidiarity
• functions common across sectors (if time permits)
• corresponding resources

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Unbundling Functions

• A function is an action that delivers or
  contributes to the delivery of a service. If
  refers to a responsibility or a set of
  responsibilities that can be allocated to a
  governance unit
• primary education versus building primary
  schools
• The first exercise in functional review is to
  identify what are the functions in a sector

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Unbundling Functions

• Functions are identified by unbundling a sector
• Unbundling is the process of dividing a sector
  into its parts until a function can be identified
  for allocation to a level of council (or it is
  determined that there are no functions that can
  appropriately be transferred to councils)

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Unbundling Functions

• Once functions are unbundled and allocated to the
  appropriate levels, different levels of
  governance will have their own functions within
  the same sector
• For instance
• commune councils might be responsible for health
  posts
• district councils might be responsible for
  district hospitals
• provinces might be responsible for provincial
  hospitals and to inspect health posts and
  district hospitals
• National level might be responsible to legislate
  minimum standards for health posts and hospitals

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Unbundling Functions

• The RGC database on powers and functions,
  supported by ARDP, will be an important tool to
  assist in identifying functions, determining
  where they are currently implemented, and, where
  applicable, for suggestions about future
  arrangements

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Obligatory Functions/Minimum Basic Services

• Once a function is identified, the Organic Law
  requires that the function be identified as
  obligatory or permissive
• An obligatory function is one that the council
  MUST implement
• A permissive function is one that the council may
  choose to implement or choose not to implement
• It may also be desirable to indicate what are the
  basic expectations (minimum basic services) for a
  function, i.e. a health post for every xx families

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Concept of Subsidiarity

• Concept of subsidiarity is set out in the
  Strategic Framework (June 2005)
• Concept of subsidiarity is a guide for deciding
  where to transfer a function
• The concept of subsidiarity is that a function
  should be transferred to the lowest level that
  can effectively implement the function
• When thinking about where to transfer a function,
  consideration starts at the lowest level

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Criteria for Concept of Subsidiarity

• Some criteria for applying the concept of
  subsidiarity include
• economy of scale (where the unit cost is lowest)
• population size/service benefit area
• cost-benefit (balancing cost and benefit to
  citizens)
• equity issues (where equitable outcomes are more
  likely)
• need for high level of accountability (i.e.
  potable water)

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Criteria for Concept of Subsidiarity

• local preferences (difference across
  jurisdictions)
• local conditions (differences across
  jurisdictions, i.e. geography)
• spillover (negative consequences to other
  jurisdictions)
• traditional local functions (i.e. conflict
  resolution)
• local information (i.e. whether teachers
  attending class)

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Criteria for Concept of Subsidiarity

• inter-jurisdictional and local coordination/cooper
  ation (scope/reason for councils to cooperate,
  i.e. drainage system)
• sectoral coordination (need for strong
  cross-sectoral coordination, i.e. land use
  planning)
• international lessons learned
• weighing and balancing all the criteria

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Common Functions Across Sectors

• Every sector will have its own distinct functions
• Every sector will also have generic management
  functions in common with other sectors, for
  instance
• Policy setting
• Regulation (i.e. setting standards)
• Legality control/enforcement
• Planning, budgeting, ME
• Determining beneficiaries at local level
• Ensuring public participation
• Implementation of services, management of assets
• Corresponds to RGC Powers and Functions Database

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Common Functions Across Sectors

• With certain common functions across sectors, it
  may be possible to have rules of thumb (but not
  stringent rules!) about where those common
  functions should typically be transferred
• For instance, overall policy setting national
  function?
• Implementation of services sub-national
  function?
• Ensuring public participation commune function?

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Corresponding Resources

• Transferring a function without the corresponding
  resources (finances, personnel, assets) empty
  mandate
• When a function is transferred, at the same time
  its corresponding resources must be transferred
• Just as functions will be re-allocated,
  therefore, finances, civil servants and state
  assets will be re-allocated/re-deployed
• Finances, personnel and assets will follow
  functions
• Part of the functional review process is to
  identify what resources correspond to a function
  to be transferred

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Big Picture

• Clear that functional review is an immense,
  complex and politically sensitive task that will
  take years
• Yet, governments around the world have introduced
  DD reform
• Why?

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Why Introduce DD Reform?

• Rationale was discussed in another presentation.
  To summarize the potential benefits
• More opportunities for citizens to participate in
  governance and influence decision-making
• Government more responsive to real local needs
• More responsive and effective service delivery
• More sustainable development activities
• More transparent and accountable governance
• Contribution to poverty reduction efforts

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Big Picture

• How to maximize chances that the benefits will be
  realized?
• Make good decisions about which level should
  receive functions (subsidiarity as a guide)
• Ensure that functions are accompanied by their
  corresponding resources, and capacity development
• Include mechanisms to require councils to
  practice principles of good governance

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• Thank you