Government of the Republic of Zambia Decentralisation Implementation for Social Protection Sector Presentation to Zambia 2017 Social Protection Week, 1st December 2017 – Lusaka #ZSP2017

Current status of Decentralisation in Zambia; nature and scope. Zambia has attained huge strides towards the implementation of decentralisation Governments have grappled with the challenge of improving the quality of life for all citizens since independence – reduce poverty, inequality, marginalisation and vulnerability, provide effective services, better incomes through steady jobs, give citizens an effective voice in (local) governance….. Evidence abounds all globally showing that improving the quality of peoples’ lives (especially in rural and marginalised urban areas) is best achieved through empowering citizens to participate in organised and well supported Local Governments whether in Federal or Unitary states. Zambia has had mixed experiences with local government since independence….typically weak local governance and equally weak citizen participation. Fragmented and poorly resourced local governments characterised by minimal accountability (downward to citizens and upward to Central Government) resulted in poor service delivery. Government passed National Decentralisation Policy (2002) and Revised in 2013 to address the foregoing. Steady improvement since 1991 and more so, since 2011 2016 Constitution has legislated decentralised governance for the first time in Zambias’ history.

Current status of Decentralisation in Zambia; nature and scope. Key Objective; Restructure intergovernmental relations (political, technical, fiscal and administrative) between Central and Local Governments Key Expected outcome; New 4 level Model of the public service providing greater efficiency and effectiveness at ALL levels through; Re-assignment of public functions and resources between all levels of Public Service supported by “finance follows function” approach (essentially a Zero cost transaction).

Current status of Decentralisation in Zambia; nature and scope. Improving ability of Central Government to focus on Core and Strategic functions of “governing” e.g., Policy and Legislation, Standard setting, Performance management, large scale undertakings, Capacity development of lower institutions….. Integrated and increased capacities and resources of local governments at district level to assume responsibility for mobilising citizens for development and local “brick on brick” functions and thereby generate greater effectiveness and impact of public service in lives of citizens.

Current status of Decentralisation in Zambia; nature and scope. Deepening and providing structure for “voices” of citizens, and other actors in local service planning and delivery through establishment of Ward Development Committees - WDCs, Encouraging Innovative approaches to public service delivery such as Public Private Partnerships.

Current status of Decentralisation in Zambia; progress to date. Functions specified in 2016 constitution and stipulated in Circular No 10 of 2014 now at different stages of devolution. Overall policy and key legislative instruments now in place (Constitution, Revised National Decentralisation Policy and operational circulars) or under finalisation (LG Act/Public Finance Act) Constitution has mandated the review and amendment of all relevant sector legislation to reflect new constitutional position on decentralisation.

Current status of Decentralisation in Zambia; progress to date. All councils have been restructured to assume devolved functions and resources (Over 100,000 civil servants to be transferred from Central Government to Councils with matching fiscal resources for recurrent and capital expenditure). Provincial and District Administration to be restructured shortly Devolving Ministries (Phase 1 in Circular No 10 of 2014) have Devolution Plans approved by Cabinet Office Phase 1 functions are in course of being integrated into current portfolio of Council functions – Administrative reporting to Councils by Heads of Devolved Departments in more than 90 % of districts.

Current status of Decentralisation in Zambia; progress to date. Legislation for transfer of Human Resources (Service Commissions Act of 2016) and decentralised HR management now in place. (Devolution is the most effective way to build capacity of districts) Mechanisms for transfer of Human Resources and Finances have been finalised, approved and are being put into operation. (Guidelines to Circular No 10 of 2014) Legislation to facilitate transfer of fiscal resources stands approved (Amendment No 12 of LG Act of 2014) and facilitating draft amendments to the Public Finance Act have been finalised. Mechanisms for Fiscal Decentralisation - Inter-Governmental Fiscal Architecture (IFA) has been approved in 2017 in readiness for full application starting in 2018 (LGEF in use already) Office of Auditor General to provide external Audit of Councils. Fiscal resources currently applied in the delivery of devolved functions scheduled to follow functions starting in 2018 Measures to improve official relations at district level being implemented Approximately 80% of 1625 Ward Development Committees (WDCs) established to provide for citizen participation.

Process and Timelines for Implementation of Decentralisation in Zambia; 1992-2015. Concept Stage; Policy and Legislation 2015. Devolution - Institutional Reform; Redesign organisation structures for Councils and sub districts (WDCs) 2015-2017 Devolution; Implement Human Resource Component 2016 -2017 Fiscal Decentralisation;

Challenges associated with Implementation Context Strong overarching legacy of centralisation (resistance) affecting institutions and mind-sets at all levels Widely held poor image of Councils in HRM and service delivery Complexity Decentralisation reform covers a very wide number of functions and actors at different levels Interrelationships between objectives and outcomes may not be immediately visible to most actors – leading to unintended resistance Outcomes cannot be easily predicted by most actors making it difficult to incentivise them Programme management Many activities at different level pose a substantial programme management challenge Capacity to process expanded demand for new legislation and amendments

Challenges associated with Implementation Institutional instability Rapid staff transfers between institutions often takes away vital institutional memory HRM – Capacity development Securing appropriate managerial talent at district level Assumption by LGSC of substantial role for HRM capacity (100,000 plus civil servants from circa 15,000) Enhancing role of local institutions (including Civil Society) in management of devolved functions Reporting/Communication Development of harmonised accountability/reporting by Councils to Provinces and National level. Enhancing M/E functions at national and provincial level. High cost of public sensitisation has affected implementation

Conclusion… Plan will use existing capacities while building additional capacities through the implementation process Effective implementation of decentralisation policy and other provisions in the Constitution will be essential for the success. Renewed mindsets required Much progress has been attained…but much remains to be done. With your treasured support, the task will be accomplished. Thank you.