PA of Decentralization Bangladesh: Objectives

2. PA of Decentralization (Bangladesh): Objectives

To increase understanding of the political dynamics of local governance reforms by analyzing the perspectives of both supporters and opponents To find potential sources of compromise by identifying areas of agreement and differences To contribute to the design and implementation of decentralization programs, cognizant of the politics of reform  The World Bank is lending technical and lending assistance to the Bangladeshi government for its local governance support project. As many of you might know, Bangladesh is currently governed by a military-backed caretaker government. The interim government has taken some interest in moving forward with decentralization reforms, parrticularly strengthening Upazila and urban local governments. However, there is limited examination on the politics of reforms at these levels- who is for and who is against. POINT: what will be the obstacles to and opportunities for reform. The World Bank is lending technical and lending assistance to the Bangladeshi government for its local governance support project. As many of you might know, Bangladesh is currently governed by a military-backed caretaker government. The interim government has taken some interest in moving forward with decentralization reforms, parrticularly strengthening Upazila and urban local governments. However, there is limited examination on the politics of reforms at these levels- who is for and who is against. POINT: what will be the obstacles to and opportunities for reform.

3. Introduction: Why Conduct Political Analysis (PA)?

�Good� reforms, such as decentralization and local governance, often derailed by political resistance of key stakeholders. PA aims to understand divergent views to promote effective design and sustainability of reforms through: Identification of the political roadblocks to reform Identification of the political support for reform Increased information to build effective and responsive reforms: incorporation of local knowledge, local demands and local needs Setting up a transparent feedback mechanism (before, during, and after reform): allows for continuous identification and incorporation of stakeholder concerns with an aim to ensure that reforms take them into account. � This is not Bangladesh�s first attempt at decentralization Most significant attempt was made in 1983 with set up UPZ � subdistrict councils. Union Parishad, UPZ, Zilla Parishad Goal UPZ- devolution of political authority at the local level to produce faster development with participation of the people Problems: Accountability: field-level bureaucrats (civil servants) did not feel accountable to local gov Fiscal transparency Limited financial resource base: were responsible local development, but limited authority to mobilize resources Distribution of funds = partisan basis MPs do not want to share power This is not Bangladesh�s first attempt at decentralization Most significant attempt was made in 1983 with set up UPZ � subdistrict councils. Union Parishad, UPZ, Zilla Parishad Goal UPZ- devolution of political authority at the local level to produce faster development with participation of the people Problems: Accountability: field-level bureaucrats (civil servants) did not feel accountable to local gov Fiscal transparency Limited financial resource base: were responsible local development, but limited authority to mobilize resources Distribution of funds = partisan basis MPs do not want to share power

4. Value added of Political Analysis

Provides a deeper, more contextual understanding of the politics of reform To find areas of consensus To identify unexpected constraints & opportunities

5. Framework for Analysis

Collaboration between WB and local partners Framework for Analysis Identify key stakeholders: those likely to affect and be affected by reform Guidance from LGSP team on key stakeholders for analysis Desk research by Bank team To understand history of local governance reform in Bangladesh, learn experiences from other countries Local partner studies PA questionnaire adapted to local situation Discussions with local experts to determine how best to capture key stakeholders: Desk research Fieldwork (interviews, focus groups)

6. Introduction: Methodology

Methodology: Collaboration between WB and local partners Framework for Analysis Fieldwork by Bank team To investigate hypotheses To validate findings Study Findings Independent Stakeholder Reports Synthesis Report

7. Research Questions

Questions for Analysis: Who are the primary stakeholders and what are their views? In what areas/issues do they disagree? In what areas/issues do they agree? Policy Considerations Questions- We focus on key issue such as obstacles to reform, probability of success, why previous attempts at decentralization were not successful, etc. Rest of presentation organized along these lines: After intro, part 2= who are primary stakeholders Part 3 => disagree and agree Part 4=> Policy considerations Part 5 and 6=> overall findings and implications Questions- We focus on key issue such as obstacles to reform, probability of success, why previous attempts at decentralization were not successful, etc. Rest of presentation organized along these lines: After intro, part 2= who are primary stakeholders Part 3 => disagree and agree Part 4=> Policy considerations Part 5 and 6=> overall findings and implications

8. Bangladesh case: Brief Background

General Ershad instituted Upazila system (1983-1991) Beset with problems: Lack of accountability Lack of transparency Limited financial resource base Corruption Resistance by MPs and bureaucrats BUT : set important precedence This is not Bangladesh�s first attempt at decentralization Most significant attempt was made in 1983 with set up UPZ � subdistrict councils. Union Parishad, UPZ, Zilla Parishad Goal UPZ- devolution of political authority at the local level to produce faster development with participation of the people Problems: Accountability: field-level bureaucrats (civil servants) did not feel accountable to local gov Fiscal transparency Limited financial resource base: were responsible local development, but limited authority to mobilize resources Distribution of funds = partisan basis MPs do not want to share power This is not Bangladesh�s first attempt at decentralization Most significant attempt was made in 1983 with set up UPZ � subdistrict councils. Union Parishad, UPZ, Zilla Parishad Goal UPZ- devolution of political authority at the local level to produce faster development with participation of the people Problems: Accountability: field-level bureaucrats (civil servants) did not feel accountable to local gov Fiscal transparency Limited financial resource base: were responsible local development, but limited authority to mobilize resources Distribution of funds = partisan basis MPs do not want to share power

9. Key stakeholders

National-level politicians (mainly from the two major parties Awami League (AL) and Bangladesh National Party (BNP)) The military The bureaucracy � local and central Local level politicians Civil society

10. Areas of agreement

All stakeholders voiced general support in theory for decentralization reforms Decentralization is seen as interlinked with democracy Important obstacles to reform : Not enough autonomy at local levels Resistance by MPs Design of institutions Support for CTG and their ability to promote reforms for �nonpolitical� reasons All enthusiastic One important reason: UPZ promotes democracy by: extending the scope for local participation in the political process (planning, articulating demands, elections, etc). effective use of local knowledge and information for efficient local planning based on real local demands As a result, local needs were better identified and projects could be more suitably designed. Design of institutions problematic b/c: lack of transparency division of labor not clearly enforced(UNO vs. UPZ chair conflict)All enthusiastic One important reason: UPZ promotes democracy by: extending the scope for local participation in the political process (planning, articulating demands, elections, etc). effective use of local knowledge and information for efficient local planning based on real local demands As a result, local needs were better identified and projects could be more suitably designed. Design of institutions problematic b/c: lack of transparency division of labor not clearly enforced(UNO vs. UPZ chair conflict)

11. Areas of difference

Variations in degree of real commitment to reform Variation in extent of perceived popular support Variation in beliefs that political constraints of MPs can be overcome Variation in reform priorities Variations in degree of real commitment to reform Bureaucrats and MPs would say �we support� but other bureaucrats will not UNO- executive head of UPZ were least supportive Variation in extent of perceived popular support Civil society groups � particular NGOs felt villagers uninformed Other basic needs issues are priority No clear advocates for reform---tension with CTG BUT political parties did not question- felt strong popular support Variation in beliefs that political constraints of MPs can be overcome Civil society groups, UNOs = could not Variation in emphases on corruption as a factor in past UPZ governance UNO Variation in reform priorities Military = none, bureauc= financial autonomy Variations in degree of real commitment to reform Bureaucrats and MPs would say �we support� but other bureaucrats will not UNO- executive head of UPZ were least supportive Variation in extent of perceived popular support Civil society groups � particular NGOs felt villagers uninformed Other basic needs issues are priority No clear advocates for reform---tension with CTG BUT political parties did not question- felt strong popular support Variation in beliefs that political constraints of MPs can be overcome Civil society groups, UNOs = could not Variation in emphases on corruption as a factor in past UPZ governance UNO Variation in reform priorities Military = none, bureauc= financial autonomy

12. Policy- Relevant Findings

The study found unexpected advocates of reform amongst Upazila Nirbahi Officers (UNO) and UP chairmen, contrary to conventional wisdom Measures that contribute to effectiveness of current reforms: establish clear association between decentralization reforms and strengthening of democracy; emphasize link between successful reforms and increased international legitimacy; establish a clear division of labor; support for independent audit agencies. Timing of reforms is key Suggestions on how to overcome Members of Parliament (MP) and (some) bureaucrat resistance to reform Overall trends and conclusions to feed into policy recommendations.Overall trends and conclusions to feed into policy recommendations.

13. Value added of Political Analysis in Bangladesh

Provides a deeper, more contextual understanding of the politics of decentralization reform Important areas of consensus do exist Identify unexpected constraints (e.g., CTG�s key role in implementing reforms) Identify unexpected opportunities (e.g., stakeholders see high popular support of reform)