Reforming Governance through Devolution: Lessons from Pakistan 1947-2003

1. EVOLUTION OF DEVOLUTION IN PAKISTAN By Dr. Ijaz Shafi Gilani Chairman Gallup Pakistan Presentation at PILDAT Workshop for Members of the National Assembly January 29, 2003

2. Pakistan’s Problem 1947-2003 High to Modest Growth Rate But POOR PERFORMANCE ON Good Indicators of Governance Human Development

3. WHY? GROWTH COULD NOT BE CHANNELLED INTO Building Governance: POLITICAL INFRASTRUCTURE MANAGEMENT INFRASTRUCTURE LAW AND ORDER Human Development LITERACY AND EDUCATION HEALTH AND SOCIAL WELFARE RESEARCH AND DEVELOPMENT

4. We must nevertheless note that there has been Continuing Concern About MANAGEMENT/ADMINISTRATIVE REFORMS Since 1947

5. During 1947 – 2002 (56 years) 28 Commissions and Committees were formed which prepared their reports on administrative reforms Approximate Average of 1in Every 2 years

6. The Recent Most included INSTITUTIONAL REFORMS GROUP headed by Shah Mehmood Qureshi 1993-97 GOOD GOVERNANCE GROUP headed by Ahsan Iqbal 1997-99

7. A study (in 1997) which analyzed key points of Over 20 Commissions and Committees PROVIDED THE FOLLOWING LIST OF KEY ISSUES IN MANAGEMENT REFORM

8. Key Issues in Administrative Reform The need for 1. Fairness: How to check Political Interference while ensuring Political Supremacy. The need for 2. Performance Based Organisation: How to ensure autonomy, to give Performance Targets and to hold everyone to Accountability. The need for 3. Compensation Review: How to rationalize compensation and give Incentives to Public Servants, alongwith Righsizing. In other words to solve the issue of an oversized but underpaid bureaucracy. Continued……..

9. ……. Continued Key Issues in Administrative Reform The need for 4. Modernization and Corporatization How to upgrade Skills, Equipment, Environment and Procedures. The need for 5. Training at all levels How introduce new Corporate Culture through Training at all stages. The need for 6. Devolution, Decentralization and Local Government The last point appeared to be the crucial starting point which could lead to the solution of other problems as well

10. The starting Point for Administrative Reform ? THERE IS A CLEAR MESSAGE THAT DEVOLUTION CAN BE A LOGICAL STARTING POINT

11. There is evidence through Data that CENTRALIZATION IS THE SOURCE FOR ADMINISTRATIVE INEFFICIENCY Pending Cases in Courts analysis of data 1947-1990 showed more than 80% of cases could have stopped at the local Panchayat level. Cases registered with the Police showed more than 80% dealt with Petty Crime which could fall under local jurisdiction.

12. Hence BOTTLENECK Number 1 is CENTRALIZATION AND CONCENTRATION OF POLITICAL AND MANAGEMENT INFRASTRUCTURE

13. Despite this realization there has been pervasive Political SKEPTICISM ABOUT DEVOLUTION starting from Indian Political Act, 1936 to Local Government Plan of NRB, 2000

14. for different reasons during different periods Skepticism continued…….. British Period Substitute to Independence Ayub Martial Law Substitute to Adult Franchise Zia Martial Law Substitute to Holding National Elections Musharaf Government ?

15. The Ironic History of Local Government in Pakistan STATUS OF LOCAL GOVERNMENT Ayub Martial Law High Bhutto Period Low Zia Martial Law High Benazir-Nawaz period Generally low Musharaf Martial Law High

16. RHETORIC APART AUTHORITY HAS BEEN MOVING UPWARDS RATHER THAN DOWNWARDS An Irony of the Evolution of Development

17. THE DATA SUGGESTS Movement in THE REVERSE DIRECTION from downwards to Upwards

18. The Role of Local Government in Local Public Services has been declining 1980-1995 1980 1995

19. CONSOLIDATED PROGRAMME SPENDING 1995 Federal Spending 67% Provincial Government 29% Local Government 4%

20. Limited Local Control on Fiscal Management Federal Budgetary Allocation 1995-96

21. LOCAL GOVERNMENT COULD HAVE FREED UPPER TIERS OF GOVERNMENT TO CONCENTRATE ON THEIR TRUE MANDATE

22. But sadly, while Federal Government Lost some of its own authority to creditors, Big Powers, Interest Groups, Mafias and Mismanagement IT TRIED TO SQUEEZE IN AUTHORITY FROM LOWER TIERS The Same process was repeated at provincial level

23. Let us stop here to once again examine the root cause of POLITICAL SKEPTICISM ABOUT DEVOLUTION

24. Apparently the use of LOCAL GOVERNMENT as a substitute for TRANSFER OF POLITICAL POWER to Popular Representation is the key source of Political skepticism

25. Thus while on the one hand THE NEED FOR DEVOLUTION AND LOCAL GOVERNMENT IS CRITICAL

26. There is at the same time Well Deserved POLITICAL SKEPTICISM About the Motives of Devolution

27. The New Dispensation of LOCAL GOVERNMENT Must Address this issue to make Devolution a tool for Good Governance and Administrative Efficiency rather than using it to substitute popular political authority

28. Otherwise HISTORICAL TRENDS SHOW A REVERSE RELATIONSHIP BETWEEN “CIVILIANIZATION” (into which we are currently entering) and the status of LOCAL GOVERNMENT which is the trend is repeated should decline

29. That sets the stage for discussion during the next two day! THANK YOU!