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MNA Regional Team Decentralization and Sub-national Regional Economics Thematic Group

Decentralization & Sub-national Regional Economics Ongoing Activities & Engagement in the MNA Region. MNA Regional Team Decentralization and Sub-national Regional Economics Thematic Group Informal Open House March 8, 2007. Issues: Structural Hierarchies.

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MNA Regional Team Decentralization and Sub-national Regional Economics Thematic Group

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  1. Decentralization & Sub-national Regional EconomicsOngoing Activities & Engagement in the MNA Region MNA Regional Team Decentralization and Sub-national Regional Economics Thematic Group Informal Open House March 8, 2007

  2. Issues: Structural Hierarchies • Urban & Land Use Planning Still Highly Centralized • Many services still planned/managed at the central level

  3. Issues: Intergovernmental Fiscal Relations • High fiscal centralization - limited local expenditure autonomy; low local own source revenue; unpredictable transfer pool, distribution and low equalization effect

  4. Issues: Lack of LG Policy Space

  5. Issues: Weak Accountability

  6. Government Responses • A “managed” process of decentralization with incremental improvements • Responding to political pressures from well-organized and financed socio-religious groups • Increasing political decentralization: local elections in Lebanon (1998), Yemen (2000), WBG (2004-5), Jordan (forthcoming) • Rethinking Institutional Arrangements: The Role of Intermediate-Level Governorates • Increasing central transfers for approved investments (off budget) • But the institutions for fiscal/admin decentralization remain weak

  7. Government Responses

  8. MNA Regional Strategies/Interventions • Financial Systems Approach: Municipal Development Funds (performance-based grant incentives introduced) -- Tunisia, WBG, Jordan *Working with IFC Subnatl Finance Dept • Lagging Regions: Analytical & Operational – Iran, Egypt and Jordan (poverty driven) • CDD/Participatory Approaches: Focusing on access to services -- Morocco, WBG (poverty driven) • Competitive Cities: Egypt (Alex), Yemen Ports (PCDP) (growth driven) * Working with IFC-PEPMNA & Cities Alliance • Land & Municipal Asset Management: Yemen & Egypt • Cultural Heritage Assets: Jordan, Morocco (growth driven) • Fiscal Decentralization & Governance Issues: Joint work with Urban/PREM on MNA Governance website and joint efforts on PERs • Regional Stocktaking & Knowledge Dissemination: Data collection and analysis & Service Delivery Surveys (cost-effective tools to gauge end-user perception of services)

  9. MNA Service Delivery Survey (2006) • Focus Group methods were originally developed for market research in the 1970s but are now used for exploratory policy-oriented research. Introducing cost effective tools to gauge end-user satisfaction.

  10. Service Delivery Survey: Citizen Participation in Local Decision-Making

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