Capacity Development in the context of Decentralisation

1. Capacity Development in the context of Decentralisation Some Observations Anthony Land

2. Presentation Outline • SNS – Towards CD good practice • CD Challenges in Decentralisation Context • Core Capabilities for local governance

3. Context: SNS – Towards CD good practice • Long-term iterative perspective – SNS guided by PNG decentralisation policy/strategy, and designed to adapt to emerging priorities over 10-15 yr time horizon. CD prog is PNGs, not AusAIDs ! • Demand-driven – responding to needs and requests identified by national and provincial stakeholders, and negotiated with AusAID counterparts (Co-location) • Multi-level interventions - system-wide eg NEFC work; organisational eg PPII; individual eg TA-counterparts

4. (Toward good CD practice Continued) • Incentive-based CD support (PPII) – provincial CD support staged, benchmarked/criteria and performance-based • Flexible use of TA – residential + fly-in teams; international + national; TA + co-located; coaching + substitution • M&E for CD: combining learning and accountability – qualitative & quantitative, multiple perspectives

5. CD Challenges in a Decentralising Context (four themes) • Decentralisation as a whole-of-government/ governance reform • Sector Reforms/ SWAPs: opportunities and threats • Harmonising and aligning CD support • Keeping sight of civil society

6. 1. Decentralisation as a whole-of-government/ governance reform • Fundamentally a political change process that demands multi-actor engagement (incl. Civil soc) – redefining institutional landscape • A long-term and complex transformation process, difficult to plan and predict • much more than a local govt “sector” reform - it requires engagement across government depts. (eg PLLSMA) • Treat as an integral part of public service reform • goes beyond technical/ organisational fixes – taking account of context is critical eg. state-society relations/ local political economy

7. 2. SWAPs & Decentralisation: pulling in the same or opposite directions ? Opportunities/potentials: • Offers coherent policy framework – guidelines / standards-supervision/ objectives/ task-role division • Predictable and increased flow of funds – esp important for provinces with low local revenue potential • Conditional grants as instrument CD/ accountability – planning, budgeting, expenditure tracking, reporting • Harmonisation and alignment of external support around national systems – discourages fragmentation of aid flows and forces national systems to work

8. 2. SWAPs & Decentralisation: pulling in the same or opposite directions ? Threats/risks: • Vertical perspective rather than horizontal perspective – piecemeal rather than holistic • Narrow CD focus on sector technical aspects – overlooking governance and process dimensions • Centralisation of d-m/ planning processes – SWAPs the business of donors, central agency technocrats, uncomfortable with “letting go”. Strengthening central authority, “managerial” approach • undermine local political process incl. multi-actor engagement & local accountability – local level viewed as recipient/ beneficiary, rather than “owner” of sector resources. Deconcentration rather than decentralisation perspective. • Can reduce scope for discretion and choice (priority setting) based on locally determined needs, and incentives for integrated planning

9. 3. Harmonising and aligning CD support • Risk of multiple CD interventions – every sector/ central agency has its own CD programme/ project for local govt staff/ tech depts, with a narrow focus on sector needs rather than thinking in terms of integrated approach • Lack of coordination between central HR agencies and local government – who is in charge, who is coordinating, resourcing, supply or demand driven ? • Importance of emphasizing provincial CD plan/ strategy and provincial CD/ change capacity – too much attention to supplying CD, too little time to develop capacity to manage CD locally • Sector ministries also need CD - to adapt to new dispensation ! to effectively interface with local authorities and in particular strengthen capabilities for policy coordination and dialogue, programme monitoring, financial control and technical mentoring.

10. 4. Keeping sight of civil society • What role for CS in a decentralising context? – as legitimate actor in local governance ? • Dialogue and monitoring role in local policy process – creating space and opportunity for local dialogue on local matters eg localising MDGs and strengthening local accountability • Service provider complementing provincial / LLG providers – identifying opportunity for joint action on service delivery • How to ensure access to funding ? – once donor funding is channeled through national budget to local govt budget: implications for their independence and accountability • What kinds of CD support required ? – CD for effective engagement; dialogue, accountability, service delivery

11. Core Capabilities for Decentralised Governance • Need to look beyond capability to deliver core functions and technical services – necessary but not sufficient: So what else ? • Capability to manage change and adapt – fundamental to long-term organisational/ system sustainability • Capability to dialogue and maintain/ manage multiple relationships – Prov. Govt part of complex network of relationships upward, downwards, horizontal • Capability to motivate, inspire and earn legitimacy – balancing political and administrative dimensions, creating local level legitimacy and internal pride