CDD = exercise of community control Strengthening accountable, inclusive community groups Supporting participation by poor people Facilitating access to information & markets Improving governance, institutions and policies

Decentralization = devolution of decision making Local governments accountable People can “vote with their feet” Information equally available Monitoring is possible

Bottom up vs. top down: both are needed…. Decentralization   CDD

Key elements for effective decentralization Clear legal framework Expenditure assignments: who does what? Revenue assignments: how much autonomy? Clear and stable transfer systems

The structure of Governments is still in flux...

Strength of accountability varies

Who should do what? Legislation often vague Many shared responsibilities Unfunded mandates common Functions often at wrong scale

Localities have little autonomy over revenue

Transfer systems have a long way to go…. Objectives often muddled Clarity and stability vertical vs. horizontal balance extent to which they reach lowest levels

Key linkages CDD’s role in building skills & accountability Important that strengthening communities supports effective local government (building from the bottom) rather than creating parallel structures Strengthening overall framework & its stability has key role to play in enabling communities