2. Rise and Fall in the Fortunes of Local Government in Pakistan January 29, 2003 EVOLUTION OF DEVOLUTION IN PAKISTAN Presentationat PILDAT Workshop for Members of the National Assembly By Dr. Ijaz Shafi Gilani Chairman Gallup Pakistan

3. Rise and Fall in the Fortunes of Local Government in Pakistan Pakistan’s Problem 1947-2003 High to Modest Growth Rate But POOR PERFORMANCE ON Good Indicators of Governance Human Development

4. Rise and Fall in the Fortunes of Local Government in Pakistan WHY? GROWTH COULD NOT BE CHANNELLED INTO BuildingGovernance: POLITICAL INFRASTRUCTURE MANAGEMENT INFRASTRUCTURE LAW AND ORDER Human Development LITERACY AND EDUCATION HEALTH AND SOCIAL WELFARE RESEARCH AND DEVELOPMENT

5. Rise and Fall in the Fortunes of Local Government in Pakistan We must nevertheless note that there has been Continuing Concern AboutMANAGEMENT/ADMINISTRATIVEREFORMS Since 1947

6. Rise and Fall in the Fortunes of Local Government in Pakistan During 1947 – 2002 (56 years) 28 Commissions and Committees were formed which prepared their reports on administrative reforms Approximate Average of 12 1 in Every 2 years

7. Rise and Fall in the Fortunes of Local Government in Pakistan The Recent Most included INSTITUTIONAL REFORMS GROUP headed by Shah Mehmood Qureshi 1993-97 GOOD GOVERNANCE GROUP headed by Ahsan Iqbal 1997-99

8. Rise and Fall in the Fortunes of Local Government in Pakistan A study (in 1997) which analyzed key points of Over 20 Commissions and Committees PROVIDED THE FOLLOWING LIST OF KEY ISSUES IN MANAGEMENT REFORM

9. Rise and Fall in the Fortunes of Local Government in Pakistan Key Issues in Administrative Reform The need for 1.Fairness: How to check Political Interference while ensuring Political Supremacy. The need for 2.Performance Based Organisation: How to ensure autonomy, to give Performance Targets and to hold everyone to Accountability. The need for 3.Compensation Review: How to rationalize compensation and give Incentives to Public Servants, alongwith Righsizing. In other words to solve the issue of an oversized but underpaid bureaucracy. Continued……..

10. Rise and Fall in the Fortunes of Local Government in Pakistan Key Issues in Administrative Reform The need for 4.Modernization and Corporatization How to upgrade Skills, Equipment, Environment and Procedures. The need for 5.Training at all levels How introduce new Corporate Culture through Training at all stages. The need for 6.Devolution, Decentralization and Local Government The last point appeared to be the crucial starting point which could lead to the solution of other problems as well ……. Continued

11. Rise and Fall in the Fortunes of Local Government in Pakistan The starting Point for Administrative Reform ? DEVOLUTION THERE IS A CLEAR MESSAGE THAT DEVOLUTION CAN BE A LOGICAL STARTING POINT

12. Rise and Fall in the Fortunes of Local Government in Pakistan There is evidence through Data that CENTRALIZATION IS THE SOURCE FOR ADMINISTRATIVE INEFFICIENCY Pending Cases in Courts analysis of data 1947- 1990 showed more than 80% of cases could have stopped at the local Panchayat level. Cases registered with the Police showed more than 80% dealt with Petty Crime which could fall under local jurisdiction.

13. Rise and Fall in the Fortunes of Local Government in Pakistan HenceBOTTLENECK Number 1 is CENTRALIZATION AND CONCENTRATION OF POLITICAL AND MANAGEMENT INFRASTRUCTURE

14. Rise and Fall in the Fortunes of Local Government in Pakistan Political SKEPTICISM ABOUT DEVOLUTION starting from Indian Political Act, 1936 to Local Government Plan of NRB, 2000 Despite this realization there has been pervasive

15. Rise and Fall in the Fortunes of Local Government in Pakistan British Period Substitute to Independence Ayub Martial Law Substitute to Adult Franchise Zia Martial Law Substitute to Holding National Elections Musharaf Government ? Skepticism continued…….. for different reasons during different periods

16. Rise and Fall in the Fortunes of Local Government in Pakistan The Ironic History of Local Government in Pakistan STATUS OF LOCAL GOVERNMENT Ayub Martial LawHigh Bhutto PeriodLow Zia Martial LawHigh Benazir-Nawaz periodGenerally low Musharaf Martial LawHigh

17. Rise and Fall in the Fortunes of Local Government in Pakistan RHETORICAPART AUTHORITY HAS BEEN MOVING UPWARDS RATHER THAN DOWNWARDS An Irony of the Evolution of Development

18. Rise and Fall in the Fortunes of Local Government in Pakistan THE DATA SUGGESTS Movement in THE REVERSE DIRECTION from downwards to Upwards

19. Rise and Fall in the Fortunes of Local Government in Pakistan The Role of Local Government in Local Public Services has been declining 1980-1995 1980 1995

20. Rise and Fall in the Fortunes of Local Government in Pakistan CONSOLIDATED PROGRAMME SPENDING 1995 Federal Spending67% Provincial Government29% Local Government4%

21. Rise and Fall in the Fortunes of Local Government in Pakistan Limited Local Control on Fiscal Management Federal Budgetary Allocation 1995-96

22. Rise and Fall in the Fortunes of Local Government in Pakistan LOCAL GOVERNMENT COULD HAVE FREED UPPER TIERS OF GOVERNMENT TO CONCENTRATE ON THEIR TRUE MANDATE

23. Rise and Fall in the Fortunes of Local Government in Pakistan But sadly, while Federal Government Lost some of its own authority to creditors, Big Powers, Interest Groups, Mafias and Mismanagement IT TRIED TO SQUEEZE IN AUTHORITY FROM LOWER TIERS The Same process was repeated at provincial level

24. Rise and Fall in the Fortunes of Local Government in Pakistan Let us stop here to once again examine the root cause of POLITICAL SKEPTICISM ABOUT DEVOLUTION

25. Rise and Fall in the Fortunes of Local Government in Pakistan Apparently the use of LOCAL GOVERNMENT as a substitute for TRANSFER OF POLITICAL POWER to Popular Representation is the key source of Political skepticism

26. Rise and Fall in the Fortunes of Local Government in Pakistan Thus while on the one hand THE NEED FOR DEVOLUTION AND LOCAL GOVERNMENT IS CRITICAL

27. Rise and Fall in the Fortunes of Local Government in Pakistan There is at the same time Well Deserved POLITICAL SKEPTICISM About the Motives of Devolution

28. Rise and Fall in the Fortunes of Local Government in Pakistan The New Dispensation of LOCAL GOVERNMENT Must Address this issue to make Devolution a tool for Good Governance and Administrative Efficiency rather than using it to substitute popular political authority

29. Rise and Fall in the Fortunes of Local Government in Pakistan Otherwise HISTORICAL TRENDS SHOW A REVERSE RELATIONSHIP SHOW A REVERSE RELATIONSHIP BETWEEN “CIVILIANIZATION” (into which we are currently entering) and the status of LOCAL GOVERNMENT which is the trend is repeated should decline

30. Rise and Fall in the Fortunes of Local Government in Pakistan That sets the stage for discussion during the next two day! THANK YOU!