Decentralisation Capacity development

Main types and forms of decentralisation Three broad types of decentralisation: 1.Political 2.Administrative 3.Fiscal 4. Four major forms of decentralisation: 5.Delegation 6.Devolution 7.Deconcentration 8.Divestment

Capacity development as an essential basis for decentralisation All types of decentralisation assume the transfer of the authority and responsibility from the central to the local and sub national levels of governance Local and sub national levels of governance need to have sufficient level of capacity to absorb the transferred responsibilities and to perform the delegated functions more efficiently compare with the centralised system of governance

Capacity development strategies (UNDP context) Capacity diagnostics Knowledge services and learning Leadership development Institutional reforms and improved management Multi – stakeholder engagement processes Mutual accountability mechanisms Incentive systems

Main priority areas of capacity development for decentralisation Knowledge services and learning Institutional reforms and improved management Multi – stakeholder engagement processes Mutual accountability mechanisms

Knowledge services and learning Development of the analytical skills, capacity to formulate policy and strategy, to manage and evaluate different programs at sub national and local level using various training programs: 1.Large group training 2.Technical and tertiary education 3.On - the job skills transfer 4.Focus groups 5.Study tours

Institutional reforms and improved management Capacity building for the institutionalisation of the transfer of the authorities and responsibilities from the central to the sub national and local levels Capacity building to improve the management, including 1.Medium term development programs design and implementation 2.Budget formulation, implementation,reporting and auditing 3.Public procurement

Multi – stakeholder engagement processes Develop capacity to engage in multi-stakeholder dialogue: 1.Supporting dialogue process that focus on a certain development framework 2.Promoting participation of all relevant sub national and local stakeholders in the decision making process 3.Developing partnership with all interested parties in the design and implementation of the regional development programs

Participation Decentralised governance is effectively strengthened and rendered more accountable when participation is encouraged, facilitated and institutionalised Civil society is essential. Its participation contributes to reducing negative technical, administrative and professional shortcomings Local authorities gain legitimacy and strength by involving civil participation

Participation (2) Interaction between local and sub national government and population fosters mutual trust and culture of cooperation Participation of stakeholders facilitates holistic approach Community organising is an important preparatory step for participation Participation is efficient when institutionalised

Partnership Eqitable and mutually beneficial partenships at the sub national and local level can strengthen decentralised governance and can increase the potential resources available to local government Partnership can extend to different levels of government, civil society, the private sector and outside partners (donors, diaspora etc.) Local government must feel ownership of project to commit to it and to make partnership effective

Mutual accountability mechanisms Develop the capacity of monitoring and evaluation in the sub national and local governance levels in order to build the culture of accountability and transparency Increase the capacity of the sub national and local governments to monitor themselves their main functions and operations Improve the capacity of the participatory monitoring system involving the main stakeholders and particularly civil society

The Capacity Building Cycle Preparation Analysis Planning Implementation Evaluation of capacity building interventions.

Ten default principles for capacity development 1.Don’t rush. Capacity development is a long run process 2.Respect the value systems and foster self- esteem 3.Scan locally and globally; reinvent locally 4.Challenge mindsets and power differentials 5.Think and act in terms of sustainable capacity outcomes

Ten default principles for capacity development (2) 6. Establish positive incentives 7. Integrate external inputs into national priorities, processes and systems 8. Build on existing capacities rather then creating new ones 9. Stay engaged under difficult circumstances 10. Remain accountable to ultimate beneficiaries

Capacity building for decentralisation in Armenia Mainly institutionalised decentralisation at the local level: Constitution of the RA, laws on the Local self governance, Budget system etc. Development fo the financial menegement skills at the local level Intensive training programs of government and specially donor community (UNDP, ICMA, Urban Institute, GTZ, Eurasia, EU, DFID, ASIF, World Bank, etc.) for the capacity building in the local tax administration, property management, investment planning, annual budgets, three year development plans, financial decentralisation, municipal services etc.

The experience of the Armenian Regional Development Project (DFID) in capacity building for decentralisation at sub national level Fist experience in Armenia to design the comprehensive regional development program (RDP) based on the bottom-up approach with the active participation process At the design stage community focus groups and sector working groups were formed to do the SWOT analysis, to highlight the core priorities of the regional development with the participation of the NGOs, community leaders and other stakeholders

The experience of the Armenian Regional Development Project (DFID) in capacity building for decentralisation at sub national level (2) The institutional framework of the RDP design and implementation has been developed incorporating all the main stakeholders (foundation of the regional development commission, sector working groups as the institutionalised structures of the regional government and comprising participants from the civil society)

The experience of the Armenian Regional Development Project (DFID) in capacity building for decentralisation at sub national level (3) Monitoring and evaluation function of the RDP implementation was successfully introduced at the sub national level in the two regions (several training courses were organized by the ARDEP to build the necessary skills for the marzpetaran staff and other stakeholders) Participatory monitoring and evaluation system was also introduced with the active participation of NGOs and CSOs

The experience of the Armenian Regional Development Project (DFID) in capacity building for decentralisation at sub national level (4) Additional measure were implemented to increase the publicity and transparency of the RDPs (inforsing “Informed Citizenry” principal) Direct donor-mars relationship was promoted to support the necessary skills to coordinate the donor activities at the sub national level The dipper partnership was established between the DFID and mars level by cofinancing both technical assistance and training programs and more importantly some of the RDP investment projects

Main problems of the further decentralisation reforms in Armenia Communities are too fragmented with the relatively big number of very small communities Insufficient capacity at the sub national and local levels for the further decentralisation Week financial basis of the community budgets, their relatively small ratio in the consolidated budget of the country The division of the roles and responsibilities of the sub national government versus central government is not finally clarified yet

Conclusions and recommendations Strong political support and commitment from the central government is the essential and necessary condition for the successful decentralisation reforms and particularly for the capacity building for decentralisation at sub national and local levels Increased donor assistance needed to foster the decentralisation process in Armenia, particularly technical assistance, training programs and active partnership (cofinancing) for the decentralisation initiatives and programs