1. 10/02/06 Seite 1 Mozambique’s emerging Program for Decentralized Planning and Finance (DPFP) Dr. Rodney Reviere Norbert Eulering GTZ Mozambique

2. 10/02/06 Seite 2 Page 210/02/06 Background  Population: 19 million  Surface area as big California and over twice the size of Germany  Poverty Index: 54% +  70% of population live in rural areas  1975: Independence  1978: Centrally planned economy  1978: Destabilization  1986: IMF, transition to market- based economy  1992: Peace Accord  1994: First multi-party elections

3. 10/02/06 Seite 3 Page 310/02/06 Local Government in Mozambique  Little history or culture of local, democratically elected, government  11 provinces, 128 districts (+ Administrative Posts & Localities)  State is still relatively highly centralised  1995: Provinces get some discretion over investment budget  1997: Municipalisation: creation of 33 elected municipal councils (elections in 1998)  1998: Introduction of decentralised planning  2005: Approved the law of “Local Organs of the State” (LOLE)

4. 10/02/06 Seite 4 Page 410/02/06 Decentralized Planning  Initially donor led  1996 Piloted in Manica- (GTZ) and then in Nampula-Province (UNCDF/UNDP)  1997-98 Government undertakes study and issues guidelines  2003 Donor desire to unify approaches and work more closely together - donor working group on decentralization starts  2005 Government takes decision to scale up existing projects (GTZ; UNDP; WB) to a national program which covers the whole country and defines in general lines it's overall objective

5. 10/02/06 Seite 5 Page 510/02/06 Objective Empower citizens and increase local government‘s capacity to plan and manage their own sustainable socio-economic development

6. 10/02/06 Seite 6 Page 610/02/06 Current state of affairs Joint evaluation with intention of harmonizing three projects:  Backward- looking evaluation of the 3 projects against the defined objective and a common framework to identify differences and best practices  Forward- looking assessment of legal and policy context to make recommendations as to the design a single national DPFP  Propose design changes to projects so that they could effectively support a national DPFP (including financial arrangements)  National workshops to discuss findings including all stakeholders, presided over by the Minister of Planning and Development  Following the evaluation a series of workshops to flesh-out the basic framework and produce a log-frame for national program  Yearly plans for each province to be developed in the provinces based on the national log frame

7. 10/02/06 Seite 7 Page 710/02/06 DPFP - Principles Shared set of guiding principles:  The district is the base for planning and development  We work within existing Legislation, guidelines and methodologies  The Government has the leadership of the program  Financing is done through national systems and processes (on budget)  It is a process of knowledge management & continuous learning  We create a dynamic and facilitative environment  We want to facitlitate good governance & transparency  The CD leds to improved service delivery in the district

8. 10/02/06 Seite 8 Page 810/02/06 DPFP - Characteristics  Strategy and methodology based on “best practices” identified in joint evaluation  “One” Single planning and reporting framework  Differentiated implementation arrangements but common objectives and methodologies  Common resource pool to support program implementation at national level and in all provinces  In-kind contributions and financial contributions  Phased shifting from project to program approach

9. 10/02/06 Seite 9 Page 910/02/06 DPFP - CD Elements  Overall goal is increase local capacity  Pilot to scale based on best practices (how to do things different and how to get people to do things different)  Use of national systems where they exist  Program is an open system with room for innovation and improvement  Multi-level intervention- learning between levels  Bottom-up and top-down – participative approach (practice precedes policy)

10. 10/02/06 Seite 10 Page 1010/02/06 DPFP Program Support  German Cooperation (GTZ/KfW/DED/InWent)  UNDP  World Bank  Ireland  The Netherlands  Norway  Sweden  Switzerland  Open to others

11. 10/02/06 Seite 11 Page 1110/02/06 Alignment of the Main Actors  Government side – President declares districts as poles of development; approval of new law (LOLE) and first major step towards fiscal decentralization; government expressed preference for joint approaches  Donor side – Paris Declaration provokes new thinking; timing - end of phase for 2 of 3 projects, mid-term review for third; WB project manager moving to Johannesburg helped a lot  Framework conditions: Paris declaration, donor working groups in place and functioning which provided/promoted direct contact between donors supporting decentralization  Common belief towards developing capacity – learning by doing

12. 10/02/06 Seite 12 Page 1210/02/06 Lessons Learned  Not over planning, instead get things moving and try to keep them moving;  Don’t let the details stop you;  Expect mistakes and create systems to learn from them  Learning by doing it right. Learning by doing can be misleading: ‘doing’ isn’t enough if it is done incorrectly (practice makes consistent, not perfect) so the importance of long-term TA to provide coaching all along the process;  Use of common processes (planning, budgeting, procurement, monitoring, etc.) is essential so that same learning is done throughout the system.

13. 10/02/06 Seite 13 Page 1310/02/06 Closing thoughts I Hear, I forget I See, I remember I do, I learn