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Decentralization in operations: Comoros and Madagascar

Decentralization in operations: Comoros and Madagascar . Political and Fiscal Context. World Bank Response. Comoros Emergency Credit (EERC). Objective: (i) Support the transition out of the secessionist crisis (ii) mitigate distress of the poor Management:

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Decentralization in operations: Comoros and Madagascar

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  1. Decentralization in operations: Comoros and Madagascar

  2. Political and Fiscal Context

  3. World Bank Response

  4. Comoros Emergency Credit (EERC) Objective: (i) Support the transition out of the secessionist crisis (ii) mitigate distress of the poor Management: (i) Activities were determined by the three islands (ii) Ministry of Plan was implementing agency (iii) Anjouan managed its own activities Decentralization: (i) Pre-determined allocations by components (Poverty reduction, decentralization, national reconciliation) and islands: Anjouan 50%; Grande Comore 32%; Moheli 18% (ii) The decentralization was mainly used for the payment of salary arrears and the rehabilitation of administrative buildings

  5. EERC Performance Outcome: (i)Uses of funds produced largely positive results. (ii) Country adopted a new constitution; Anjouan had overcome its isolation (iii) New lines of confrontation emerged in June 2002 after the election of Union and island governments Credit Performance: (i) Credit was ranked marginally satisfactory because it reached the best possible outcome under the difficult circumstances. (ii) The decentralization sub-component was rated marginally unsatisfactory because of the high prevalence of cars and administrative overheads Lessons: (i) Bank can play an important role in transition out of crisis (ii) Bank should not overestimate its role. Decentralization processes are very complex and, in a crisis context, even more difficult to implement.

  6. Madagascar Decentralization ESW Results: (i) Madagascar remains a structurally centralized country (ii) Parallelism between deconcentrated and decentralized agents hampers service delivery (iii) Local government finance is marginal but communes are more effective in revenue collection than deconcentrated intermediaries

  7. Madagascar Decentralization ESW • Recommendations: • The decentralization strategy should focus on communes and consider suppressing the regions as well as postponing the set-up of provinces • Communes need to be fully in charge over local government affairs • Communes should be in charge of raising their own revenues • Transfers need to arrive on time; • Transfers should be substantially increased to rural communes • Improve service delivery within the deconcentrated framework: • (i) Creation of clear reporting rights between statistical services at the province and central level • (ii) Investing in the analysis, treatment and verification of data at the province and district level

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