Supporting Decentralization in Sierra Leone: Reflections After the First Two Years of IRCBP Implementation Yongmei Zhou, AFTPR

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Supporting Decentralization in Sierra Leone
Reflections After the First Two Years of IRCBP
Implementation Yongmei Zhou, AFTPR
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Reflections two years after Board Date

• Q Supporting devolution as entry point for
  governance reform was it the right choice?
• A Absolutely.
• Q What pressure has devolution generated for
  other reforms?
• A Budget reform program budgeting
• Public service human resource management reform
  pay reform and civil service/local government
  service linkage

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Reflections two years after Board Date (2)

• Q What worked well?
• Using the Rapid Results Approach to jump start
  the devolution process energize LGs, allow them
  to show results and establish credibility, use
  results to expand constituency for devolution.
• Actively promote peer learning and competition
  among local councils.
• Invest in MoF and support fiscal decentralization
  and LG FM capacity building.
• Continuously monitor, evaluate, learn, adjust

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Reflections two years after Board Date (3)

• Q What hypotheses were confirmed by experience?
• Given an opportunities and support, LGs can
  perform and develop capacity.
• Temptation and pressure for corruption is high.
  Both central government monitoring (roaming
  internal audit) and citizen monitoring are
  needed.
• Q What hypotheses were challenged by experience?
• Service delivery improvement and transparency
  will automatically translate into voluntary tax
  compliance and civic participation in local
  governance.

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Reflections two years after Board Date (3)

• Q What were our blind spots?
• Role of traditional authority and how it would
  relate to the newly elected local council.
• Q What would we have done or will we do
  differently?
• Recruit qualified (or qualifying) professionals
  with adequate pay (and subsidies for professional
  qualifications) rather than train unqualified
  civil servants
• Early investment in building institutionalized
  capacity to build LGs capacity
• Communicate, communicate, communicate

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Causes of conflict

• Post-independence deterioration in governance
• Military government dissolved local councils in
  1972
• Centralization of power, resources and corruption
  in Freetown
• Rural population deprived of economic
  opportunities, education, political participation
• Marginalization of youth from decision-making
• Civil war (1991-2002) displaced half of
  population (2 m), caused 20,000 death, and
  destroyed infrastructure and social capital

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Extreme poverty

• Bottom in UN HDI ranking
• Infant mortality 166 out of 1000 SSA average
  101 world average 57.
• Under-5 mortality 284 out of 1000 SSA average
  171 world average 86.
• Life expectancy 37 SSA average 46 world
  average 67.
• Child immunization rate (measle) 73 of children
  between 12-23 months old SSA average 61 world
  average 77.
• Adult literacy 36 SSA average 71 world
  average 80.
• 70 population below national poverty line (just
  under 1) 15 in Freetown, 79 rest of country

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Many rural communities are isolated
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Good Governance has many entry points
Citizens/Firms

• Political Accountability
• Political competition, broad-based political
  parties
• Transparency regulation of party financing
• Disclosure of parliamentary votes

• Civil Society Media
• Freedom of press, FOI
• Civil society watchdogs
• Report cards, client surveys

• Effective Public Sector Management
• Ethical leadership asset declaration, conflict
  of interest rules
• Cross-cutting public management systems
  meritocracy, public finance, procurement
• Service delivery and regulatory agencies in
  sectors

• Formal Oversight Institutions
• Independent, effective judiciary
• Legislative oversight (PACs, PECs)
• Independent oversight institutions (SAI)
• Global initiatives UN, OECD Convention,
  anti-money laundering

• Private Sector Interface
• Streamlined regulation
• Public-private dialogue
• Extractive Industry Transparency
• Corporate governance
• Collective business associations

Citizens/Firms
Citizens/Firms

• Decentralization and Local Participation
• Decentralization with accountability
• Community Driven Development (CDD)
• Oversight by parent-teacher associations user
  groups
• Beneficiary participation in projects

Citizens/Firms
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Choice 1 Scope of IRCBP

• Focus on supporting devolution and empowerment,
  and public financial management reform and NOT
  civil service reform and legal and judicial
  reform.
• Why?
• Political will and public support
• Tackles post-conflict governance reform
  priorities
• Political sustainability
• MoF frustration with low effectiveness of
  spending and willing to support devolution

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Devolution and empowerment tackles post-conflict
governance reform priorities

• Reducing conflict by opening up space for
  political participation and improving democratic
  accountability of the state to citizenry
• Restore trust in government
• Rebuild social capital in communities
• Address issues of social exclusion
• Address urgent needs for recovery and
  reconstruction

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Devolution will sustain and deepen wider
governance reform

• Empowered local politicians will sustain
  devolution process
• Local political markets allow for meaningful
  alternatives to emerge for future national
  elections
• Spread culture of transparency and accountability
  from bottom up
• Fiscal decentralization forces restructuring of
  ministries

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MoF frustration with low effectiveness of public
spending -- education

• PETS 2001 only 55 school-subsidy grants
  accounted for by schools. Grants payment was
  later outsourced to KPMG (10 commission). PETS
  2002 showed 97 accounted for.
• PETS 2002 72 teaching and learning materials
  reached the intended schools from District Edu
  Offices, arriving 170 days later than contracted.
  
• PETS 2003 60 school furniture reached the
  intended schools.
• IRCBP baseline household survey Mar 2005 58 of
  people feel that LCs, not the central government,
  should run the school system.

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MoF frustration with low effectiveness of public
spending -- health

• PETS 2002 less than 10 of all essential drugs
  could be accounted for by District Medical
  Officers less than 5 of all essential drugs
  were accounted for by periphery health units.
• PETS 2003
• 97 transfer from CMS to MOs
• 70 transfer CMS to DMOs can be accounted for
• 20 PHUs had zero receipt of drugs

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MoF frustration with low effectiveness of public
spending -- food security

• In 2003
• 2.67 billion leons used for procurement of 66,226
  bushels of seed rice by MAFFS.
• Contract awarded to OSKA Agencies, MARIKA
  Enterprises, MARTINVEST Trading Ltd.
• Estimated total receipt by all Farmers
  Associations nationwide 72.6 MAFFS transfer
• Receipt of seed rice 8 before planting season
  35 during planting season 57 after planting
  season

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Fiscal decentralization to improve effectiveness
of public spending

• Give resources to those accountable to local
  communities for service delivery
• How to make sure students receive the number of
  books according to national policy, and on time?
• How to make sure drugs allocated for PHUs reach
  PHUs?
• How to motivate and empower teachers/nurses/extens
  ion workers to provide quality services the
  citizens?
• Allow LCs autonomy in deciding local priorities
• Which drugs do PHUs need for their population
  group?
• Which schools need furniture?
• When do schools need teaching and learning
  materials? How much do they need?
• Which farmer groups need extension services?

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Legal framework for decentralization key
features of Local Government Act 2004

• Partisan election of local councils 20 of
  Paramount Chiefs in each locality will be
  un-elected councilors
• Devolution of responsibilities (primary edu,
  primary health, agric extension, feeder roads
  maintenance, etc) and revenue authorities to
  local councils during 2004-2008
• Local councils have autonomy in HRM and FM under
  guidelines
• Inter-governmental transfers based on transparent
  formulae and principle of equity Require
  transparency and accountability in council
  operation
• Ward Development Committees as sub-district
  structures
• Transition arrangements

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Sequencing of devolution program

• Jun-Dec04 grace period for implementing
  functional devolution
• Build basic LG capacity to make collective
  decisions and utilize resources
• Announce phases of functional devolution
• Design fiscal decentralization strategy and
  sectoral devolution plans
• Jan05-May08 transition period for implementing
  functional devolution
• Gradual transfer of service delivery
  responsibilities
• Building LG capacity
• Intensive ME to identify improvement in policy
  and implementation
• Jun08 beyond sustainability phase

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Conditions for effective local governance
Central government enabling conditions (allowing
fiscal and administrative autonomy, adequate and
predictable transfers, refrain from political
interference)
Local government authority, autonomy, capacity
Citizen engagement in local government affairs,
open and accountable local political process
Community collective action
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IRCBP contribution towards inclusive, effective
and accountable local governance

• Project development objective by 2008, out of 19
  elected local councils
• All 19 LCs should be able to make development
  plans that respond to local priorities through a
  participatory process.
• At least 14 LCs should be able to make budget
  consistent with Section 67 of Local Government
  Act 2004.
• At least 14 should be able to meet the
  transparency and the financial management
  accountability requirement as per Local
  Government Act 2004 (Section 107, 81, 105)
• At least 14 LCs should be able to complete the
  projects submitted in previous year's work plan
• All 19 LCs should be able to maintain coverage
  and quality of services devolved to them at the
  levels of the year before devolution.
• If we were to start over again, we would add
• Education level of elected councilors as a proxy
  of interest among competent citizens to
  participate in local governance.
• Name recognition of elected councilor by his/her
  constituents as a proxy for citizen interest in
  local government and councilors reach to citizens.

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Complex work streams to achieve successful
devolution where does one start?
Strengthen GoSL capacity to design/implement
decentralization, incl. fiscal and administrative
decentralization
Invest in local government offices, equipment,
furniture
Project Components
Strengthen LG capacity in participatory
planning revenue mobilization financial
management project management ME
ME of decentralization
Future
June 04
Inclusive, effective, accountable local governance
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Start the devolution process with local council
Rapid Results Initiatives

• Immediately after LC elections, central
  government challenged and supported each LC to
  identify, design, and implement one Rapid Result
  Initiative that was
• Urgent and compelling
• Visible people will notice the difference
• Can be translated into real impact in 100 days
• MLGCD Decentralization Secretariat provided
  coaches
• MoF disbursed Local Government Development Grant
  four months after elections

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Using RRIs to start a virtuous cycle of improving
local governance
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And preventing a vicious cycle of deteriorating
local governance
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LCs did not disappoint

• LCs RRIs tackled diverse development issues
  water, sanitation, feeder roads, bridges,
  traffic, rice production, post-harvest loss.
  Examples of results
• Travel time between Sewafe and Peya of Nimiyama
  Chiefdom of Kono District reduced from 1hr to 15
  minutes and transportation cost reduced from Le
  5,000 (1.75) to Le 2,000 (70 cents).
• Increase the availability of high-yield
  quick-harvest Inner Valley Swamp Rice seeds in
  Pujehun District by 4,000 bushels within 90 days
• Ensure the availability of safe and portable
  drinking water in the mains and laterals and 25
  public taps in the Moyamba township within 90
  days.
• Total volume of Garbage in two lorry parks and
  two markets in Kenema Township reduced by 90
  within 95 days.
• Cheaper and faster than ministry projects

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Are purse-holders aware of LG achievement?
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Communication for expanding support for devolution

• Talking Drum video on RRIs President called
  MLGCD
• Bintumani Devolution Workshop (Jun 2005) RRIs
  success strengthened LCs bargaining power in
  devolution negotiations with ministries
• Moyamba visit triggered discussion with SALWACO
  about rural water project
• DfID and EU 25m trust fund to IDA to top up
  IRCBP, incl. block grant for LGs

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Country portfolio adjustment to support
decentralization since 2004

• IRCBP design of a new inter-governmental fiscal
  system, partial financing of the Local Government
  Development Grant, nation-wide LG capacity
  building
• GoBifo (CDD project, effective after LG
  election) experimenting village-level
  participatory decision-making, civic engagement
  in local governance, LG block grants to villages
• NaCSA (CDD project, effective before LG
  election) the feeder road component has been
  adjusted to provide direct financing to LGs and
  strengthen LGs capacity to manage public works
  projects

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Country portfolio adjustment to support
decentralization since 2004 (cont.)

• Education, Health (effective before LG election)
  mid-term review adopts changes to give LGs
  explicit roles in contract management,
  strengthens support to build LG capacity for
  service delivery
• HIV projects (effective before LG election)
  considering decentralized HIV prevention and
  treatment program
• Rural water and solid waste management project
  (effective election of LGs) ongoing negotiation
  for potential restructuring.

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RRA process forces integration among work streams
and adds urgency
Strengthen GoSL capacity to design/implement
decentralization, incl. fiscal decentralization
Invest in local government offices, equipment,
communications
Project Components
Strengthen LG capacity in participatory
planning revenue mobilization financial
management project management ME
ME of decentralization
Future
June 04
Ensure access to safe drinking water in Moyamba
Township in 100 days
Inclusive, effective, accountable local governance
Goal of Moyamba RRI Team
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Financing of RRIs Tested Inter-Governmental
Transfer System

• Local Government Development Grant, as part of
  inter-government transfer system, provides block
  grants to LGs for discretionary (not necessarily
  investment) projects
• LGDG allocation formula based on equity
  principle infrastructure needs, other financing
  available
• Minimum conditions for access transparency and
  accountability requirements of LG Act 2004
• All LCs have bank accounts now, although some far
  from banks
• Poor communications infrastructure posing
  problems
• LGDG as a credible GoSL transfer system for other
  financiers to use in future

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LGDG eligibility gives urgency to LG financial
management capacity building

• MoF PFM Reform Unit and Local Government Finance
  Department provide training, hands-on support to
  new FM staff in LGs basic bookkeeping and
  accounting, budgeting, procurement, revenue
  mobilization, computer literacy
• Uniform Chart of Accounts applied to all levels
  of government

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RRIs laying foundation for a results-based LG
management system

• LCs multiple RRIs in the context of newly
  prepared Local Council Development Plans.
• RRA as a management tool to strengthen
  performance accountability between local
  politicians (Committees as Strategic Leader) and
  administrative/technical staff (line
  functionaries as Team Leader) upon devolution of
  responsibilities.

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2nd Round of RRIs

• RRI Workshop provided cross-learning
  opportunities and created competition among LGs.
• 2nd round of RRIs financed by LGDG continues to
  tackle diverse development issues water,
  sanitation, feeder roads, raft, culvert, bridges,
  market, lorry park, rice production, post-harvest
  loss, community park, vocational skills training
  center, school furniture.
• Financial management malpractice was found in two
  LGs. LGDG suspended till corrective actions are
  taken.

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Sector RRIs to give credibility to sector
devolution

• Newly devolved sector staff performing functions
  related to primary health, crops/forestry/livestoc
  k, DEC schools received orientation of the Rapid
  Results Approach.
• RRIs developed by sector teams, e.g., increasing
  Animal Health Services from 10 to 40 within
  Moyamba District in 70 days.
• Local council sector committees would monitor the
  progress of the sector RRIs accountability and
  partnership between politicians and
  professionals.
• Each RRI team would include members from
  beneficiary communities

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Is delivery and transparency enough?

• Moyamba water projects value for money
• RRI in 2004 (26,750) Rehabilitation of pipe
  borne water system and 25 stand pipes
• RRI in 2005 (33,997) Extend water system and
  add 33 new stand pipes.
• But why are people not paying water charges?

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Do citizens know what LGs are doing? And does
consent translate into voluntary tax compliance
and civic activism?
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Revenue performance varies across LCs
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Communication objective Increase trust and
confidence of communities in LCs (to use taxes to
improve service delivery)
Action Audience Channels Resources Needed Expected Outcome Timing
Showcase concrete achievements of LCs Communities development partners, MDAs, CSOs Public fora, media, site visits, drama Pressmen, digital camera, camcorder, vehicles, musical instrument, fuel, audiovisual equip Est. 100,000 Increase revenue to LCs, build trust and confidence in citizens Quarter.
Hold periodic dialogue to deliberate on reasons why taxes should be paid Communities, chiefdom authorities, CSOs, MDAs LCs, IRCBP Public fora Venue, food, stationery, audio -visual equipment Est. Cash 50,000 Increase willingness to pay taxes, ownership of LCs decisions and actions, improved two-way flow Quarter.
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Performance comparison, peer learning, and
political competition

• Comparative performance data as
• Feedback
• Stimulant for peer learning
• Trigger for competition
• Need good communication programs to disseminate
  comparative info to create political competition
  and civic activism

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Compare local revenue performance and learn from
peersData source MoF (Mar 2006)
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Compare procurement results
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Comparing financial management capacity
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Local Government Development Grant

• Provide block grant to LGs for financing
  development projects, as part of IGT
• Access rules focus on transparency and
  accountability requirements of LG Act 2004
• Encourage transparent and accountable governance
  culture from the very start!
• Address fiduciary concerns of IDA
• Give incentive to develop management skills
• Allocation of LGDG among LGs based on equity
  criteria, infrastructure needs, other financing
  available

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Evaluating Impact of Devolution and Empowerment
Program

• Is devolution bringing state closer to people?
  And to whom first?
• Does devolution improve access to and quality of
  services?
• Does improvement in public services increase
  citizens trust in state and improvement in tax
  compliance?
• What are determinants of reelection of local
  councilors?
• Do communities that experience with more
  inclusive, transparent, and accountable
  intra-community governance hold their local
  governments to similar standards?

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Access to primary schools starting point
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Access to primary health care starting point
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Access to agricultural extension services
starting point
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Access to safe water starting point
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Who do Sierra Leoneans trust?
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Primary source of info on government differs by
age and gender
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Challenges in LG human resource management

• Appropriate role of councilors in HRM political
  oversight or political interference?
• How to minimize patronage appointment?
• Town councils, which existed before 2004, are
  still saddled with inherited surplus staff
• Alternative approaches to staffing LCs and
  building LC capacity train or recruit? How to
  retain qualified professionals in a thin market?
• Institutionalized training providers? How to
  develop them when the market is vacant?

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Eight Steps of Successful Change

• Increase urgency
• Build the guiding team
• Get the vision right
• Communicate for buy-in
• Empower action
• Create short-term wins
• Dont let up
• Make change stick
• John P. Kotter and Dan S. Cohen, the Heart of
  Change