Governance and Decentralization: Progress on Implementation and Plans for 2006 Government of National Unity Paris, March 10 2006 Breakout Session 11:00 – 1:00 Draft, March 8

The INC Provides the Framework: Decentralization The overarching aims of economic development shall be the eradication of poverty,……guaranteeing the equitable distribution of wealth, and redressing imbalances of income....etc. (Art. 10 (1)) Art. 24 mandates that Sudan will be a decentralized state with the following levels of government: National; Southern Sudan; The State Level; and Local Level

The INC Provides the Framework: Decentralization Recognition of the autonomy of the Government of Southern Sudan and the states (Art. 25 (a)) In their relationships with each other or with other government organs, all levels of government and particularly national…. shall …..respect each others’ autonomy (Art 26 (1) (b)) …not to assume powers or functions conferred upon any other level except as provided for by this Constitution (Art 26 (1) (c))

The INC Provides the Framework: Good Governance Commitment to Implementation of the CPA Special Status for Southern Sudan Three Areas Comprehensive Bill of Rights Judiciary and Rule of Law Constitutional Court National Judiciary Representative, inclusive and merit-based civil service Various independent commissions

The Key Priority for the GNU Empowerment at the Sub-national Level is Critical Need for devolution of responsibility to sub-national levels coupled with resources Participation of communities in setting priorities

Progress Constitutional framework and CPA implementation (presented in detail yesterday) Announced the Chair and Members of the FFAMC (November 2006) Increased transfers to States (up to 23% of revenues) budgeted for 2006 Initiated Public Sector Reform Project for “Making Decentralization Work”

Issues to be Addressed - Decentralization Resist the temptation to Recentralize Clarify and unbundle assignment of responsibilities and functions across various tiers Enact Local Government Laws Introduce a transparent and predictable system for intergovernmental fiscal transfers Clarify roles of MFNE, FFAMC and NSSF in the intergovernmental fiscal system Who is responsible for vertical allocation FFAMC responsible for allocation and monitoring The extent of discretion the States will have for the transferred resources

Issues to be Addressed - Decentralization Operationalize the FFAMC in its central role identified in the CPA and the INC Develop Capacity at the State and Local level in Planning, Budgeting, Financial Management, HR Management, etc. Implement the Public Sector Reform Program aimed at making decentralization work

Priorities to be Addressed – Accountability and Efficiency Public Sector and FM Reform Establish National Civil Service Commission Initiate affirmative action for the national civil service to meet targets Implement plan for right-sizing the national civil service and revising the pay structure Review and modernize public financial management laws and regulations Initiate more transparent budgeting and reporting along GFS lines Implement the Public Sector Reform Program Establish and operationalize the various commissions (discussed in detail yesterday)

Priorities to be Addressed – Service Delivery Basic Social Services: Key to delivering the Peace Dividend Balanced Development and Infrastructure at the Local level Extend the scope of Community-based Development initiatives Increase Pro-poor Spending

Support from the International Community To establish and strengthen the Framework for Decentralization and Decentralized Delivery of Basic Social Services To meet Poverty Eradication Goals To achieve the Millennium Development Goals