Professional Documents
Culture Documents
Decentralization in Iraq
Decentralization in Iraq
2011
International Conference on Decentralization, Local Governance and Service Delivery:
Sharing Experience and Sustaining Progress in Urban Iraq
8 -10 May 2011, Amman, Jordan
CONTENTS
Copyright © United Nations Human Settlements Programme Message from the Executive Director 7 C Bringing citizens into the democratic
(UN-HABITAT) 2011 process: the value of community
participation 33
All rights reserved FOREWORD 9
United Nations Human Settlements Programme (UN-HABITAT) 1. Post-conflict redevelopment: examples from
P.O. Box 30030 00100 Nairobi GPO KENYA
other countries 33
Tel: 254-020-7623120 (Central Office)
www.unhabitat.org INTRODUCTION 11
2. Initiatives to encourage community
HS/011/12E participation 34
I WHY decentralization can help Iraq
meet the challenges of urbanization 15 3. The role of e-governance 35
DISCLAIMER
The designations employed and the presentation of material in this publication do 4. Recommendations and conclusions 35
not imply the expression of any opinion whatsoever on the part of the secretariat of II How to drive forward progress
the United Nations concerning the legal status of any county, territory, city or area or on decentralization 21
its authorities, or concerning the delimitation of its frontiers or boundaries regarding
D Implementing structures for better
its economic system or degree of development. Excerpts may bereproduced
without authorization, on condition that the source is indicated. Views expressed delivery of services 39
in this publication do not necessarily reflect those of the United Nations Human A Political decentralization and the legal
Settlements Programme, the United Nations and its member states. framework: why reform is needed on the 1. Accountability for service provision 39
assignment of responsibilities between
Cover photos © iStockphoto.com/ericsphotography different levels of government 21 2. Capacity building 40
1. The current legal framework for 3. Administrative structures for service delivery 41
ACKNOWLEDGEMENTS decentralization 21
4. Market finance for service delivery 44
Principal authors: Richard Forster, Nick Michell
2. Clarifying the assignment of responsibilities 22
Design and layout: Richard Boal
Consultant editors: Fiona McCluney and Suman Kumar 5. Recommendations and conclusions 45
3. No provision for dispute resolution 23
1. The framework for fiscal decentralization 27 III. Selected articles from the Iraq constitution 54
2. Creation of budgeting and managing capacity 28 IV. Selected articles from Law 21 of 2008 56
4. Own-source revenues 29
4 5
Message from the Executive Director
© UN-HABITAT
goods and services as the importance delivery can result in quicker gains
of reforming public-service delivery than with a centralized system.
has moved to the forefront of the
current policy agenda. For many This is especially important in a
years, local governments have been country like Iraq where 70 percent of
recognized as key actors in the the population is now living in cities,
economic and social development of which are in a state of post-conflict
any society and also as the starting reconstruction. The displacement of previous totalitarian regime. But
point for democratic expression. Local citizens and fragmentation of the city while this law provides a strong
authorities can be representative, through conflict has left Baghdad basis for the empowerment of local
legitimate and efficient in steering with 10 percent of its citizens in governments, it does not provide a
local urban development. unacceptable conditions with limited comprehensive insight to establish
access to basic services. an effective and efficient decentralized
UN-HABITAT is committed system in the country.
to supporting the process of Decentralization is one process
decentralization in many countries to help improve access to services The conference sought to
across the world, highlighted in 2007 for the urban population. The address such challenges and provide
and 2009, when the Governing 2005 Constitution of Iraq advanced a focused practical perspective on
Council of UN-HABITAT the reform process by establishing how decentralization in urban areas
approved two sets of guidelines, a model of decentralized political promotes local government as an
where member states of the United and administrative government effective tool for service delivery. I
Nations committed themselves to the through devolution of authority to hope this report can advance the
promotion of decentralization and the governorates. In March 2008, the cause of decentralization to the
strengthening of local authorities, Provincial Powers Law defined the benefit of Iraq’s federal and local
and to providing access to basic roles and responsibilities of both the governments, its citizens, its non-
services for all. The guidelines were elected local bodies and the associated governmental organizations, civil
designed to assist policy reforms administrative units at governorate, society and all international partners
and legislative action at the country district and sub-district levels. and stakeholders working to develop
level in two complementary areas urban policies for Iraq.
of UN-HABITAT’s mandate. They At both the political and
were prepared through an intensive administrative levels, the law directs
consultative and participatory process towards greater decentralization, which
involving many partners, including represents a profound transformation
UN agencies as well as national and from the way government decision- Dr. Joan Clos
local governments. making process operated under the Executive Director, UN-HABITAT
6 7
FOREWORD
foreword
8 9
Introduction
Iraqi local government officials were able to meet with decentralization experts during the three-day conference
adequate shelter for all. The agency’s The experience of decentralized the conference participants. We are
work on decentralization culminated governance in Iraq has so far been grateful in particular to those speakers
in the International Guidelines on minimal. After adopting a federal system who conducted interviews following
Decentralization and the Strengthening in 2003 following the invasion by the the conference. Speakers’ papers
of Local Authorities, which were US-led coalition, the Republic of Iraq’s submitted for the conference can be
approved by the UN-HABITAT Constitution of 2005 and Law 21 of accessed at the UN-HABITAT website:
Governing Council in April 2007. 2008 furthered the reform process by www.unhabitat.org. The sections
establishing a model of decentralized that follow highlight the challenges
Decentralization of defined services political and administrative government facing Iraq’s move to a system of
can assist in improving service delivery through devolution of power to eighteen decentralized government and a list of
in Iraq’s local communities and UN- provinces (governorates). But many recommendations, which can be applied
HABITAT identified the conference challenges remain, in particular, the to assist Iraqi representatives in the field.
as a tool to assist Iraq’s urban devolution of authority for the delivery
development. Iraq needs to build and of services and an inter-governmental To continue its mission to promote
improve its urban infrastructure to policy on the transfer of revenues to local good governance and sustainable
reduce poverty and stimulate social governments from oil and other resources. development of Iraq’s cities, UN-
and economic development. It is a HABITAT plans to bring together
highly urbanized country with 66 “The legal framework set by Law 21 conference participants for two days
percent of the population residing in provided an important first step in the of field tours outside Iraq, where
cities and as the country experiences decentralization process but the details of participants will have the opportunity
strong urban growth, that growth the functional and territorial assignments to see the results of the decentralization
is putting increased pressure on the between central and local government process on the ground.
delivery of local services. The three-day still need to be agreed,” said Fiona
event allowed delegates to discuss best McCluney, Programme Manager for the
international practices in the context UN-HABITAT Iraq Programme.
of the special characteristics of Iraq,
which is in post-conflict rehabilitation This report aims to address these Richard Forster
with a government that relies on oil challenges through a presentation Nick Michell
revenues for 90 percent of its GDP. of the views, advice and opinions of June 2011
12 13
WHY decentralization can help Iraq meet the challenges of urbanization
sustainable development in Iraq and the creation than double, increasing by 251 million
between 2010 and 2050.2 Iraq is no
stranger to this rapid urbanization. Sixty-
well as giving a sense of participation
in the affairs of the state,” said Dr.
Shah. “China has very strong local
Governance. “Different institutions in
Iraq at different levels have different
views. So on the one hand there
of better civilized cities.” six percent of its population already resides
in cities with the urban population set to
governments and local governance
has acted as a catalyst for economic
is a legal framework supporting
decentralization but in my view, from
more than double from 20.4 million in development and economic growth.”5 what I’ve seen, the national consensus is
2010 to 48.2 million in 2050.3 not in place yet.”
Mr. Istabraq al-Shouk, Deputy Minister of Construction and Housing, But such growth needs proper
in his opening address, International Conference on Decentralization, Such urban growth, if managed management in cities. The movement The lack of consensus is not
properly, can bring benefits to Iraq. from rural to urban populations surprising. As Dr. G. Shabbir
May 8 2011, Amman Historically cities have been engines by necessity shifts political and Cheema, director of the Asia-
of growth and in his conference administrative responsibility from Pacific Governance and Democracy
presentation4, Jamie Simpson indicated central governments to municipal, Initiative at the University of Hawaii,
that a 10 percent increase in urban regional and local governments. explained in his presentation,
population can correlate to a 30 percent The challenge here is also for in the developing world every
increase in GDP. But as Mr. Simpson authorities and governments to adopt political system has some elements
emphasized, for cities to be a force for decentralization policies that maximize of centralization and some
good they must be managed properly. the benefits of urbanization.6 elements of decentralization. Some
Cities do not work automatically and countries have more administrative
good urban governance is critical for “The first challenge, that I can decentralization while others
Iraq given its rapid urbanization. The perceive from the discussions during the have more political and fiscal
key is to get the new decentralization conference, is that there isn’t a national decentralization.
framework to function to provide
adequate local services, to harness
civic creativity, and to match fiscal Figure 1.1 China’s impressive growth in per capita income for urban residents
arrangements to delegated responsibility.
Yuan
“If Iraq is to move from being 20000
solely dependent on oil as the main 1978
18000
source of revenue, how cities function 2000
and are being managed is going to 16000
2008
be a key issue and considering this 14000
in the context of where functional 2010
12000
responsibilities lie is the major theme
we need to work on,” said Fiona 10000
McCluney of UN-HABITAT in her 8000
closing comments at the conference. 6000
4000
Dr. Anwar Shah of the World Bank
in his presentation on urban governance 2000
emphasized how China is a good 0
example of how a country can achieve Urban residents Rural residents
impressive economic growth and
poverty reduction in its cities through Source: Presentation by Anwar Shah at the UN-HABITAT International Conference on
strong local government (see Figure 1.1). Decentralization, Amman, May 2011
1
UN-HABITAT: Urbanization, Facts and Figures
2
Conference paper prepared by Dr. G. Shabbir Cheema for the UN-HABITAT International Conference on Decentralization (Amman, 8 May 2011)
3
Conference presentation by Professor Om Prakash Mathur (Amman, 9 May 2011)
4
Conference presentation by Jamie Simpson of GHK Consultants (Amman, 8 May 2011)
5
See Appendix II
6
Conference paper prepared by Dr. G. Shabbir Cheema for the UN-HABITAT International Conference on Decentralization (Amman, 8 May 2011)
14 15
Decentralization in Iraq WHY decentralization can help Iraq meet the challenges of urbanization
© UN-HABITAT
different views. This report seeks to managed is going to be a
distil the discussions at the conference key issue.”
into recommendations to assist the
development of decentralization in Iraq. Fiona McCluney , UN-HABITAT
Benefits of
decentralization overwhelmingly in favour of decentralized A second benefit conferred by
service provision,” said Dr. Shah. decentralization is the element of
What is important before discussing community participation, which
the grounds to establish consensus, is to Service delivery in Iraq is discussed in can be encouraged by devolved
stress that decentralization can bring key section II.D and is one the main drivers powers. Decentralization can lead
benefits to an urbanizing Iraq. for the Iraqi local governments in seeking
© UN Photo-Bikem Ekberzade
to an institutional framework
effective devolution of powers. through which various political,
One benefit of decentralizing religious, social and ethnic groups at
government is that delivery of services “Our main objective is to multi-levels, including in cities and
can be carried out more effectively. offer quality services to citizens, towns, can participate in making
Despite the relatively high incomes in which should be the duty of any decisions affecting them. This is
Iraq’s cities7, the increasing populations in government, whether local or clearly benefitting a region like
cities are putting a major burden on the central,” commented Wafa’a Fadhil, Kurdistan, which has an autonomous
delivery of services, and service delivery is Chair of the Iraq Local Government government within the federation. It
regarded as weak in urban areas. Ninety- Association during her conference helps the development of democratic Iraq needs to improve the delivery of urban services to reduce poverty and stimulate social and economic development
four percent of citizens interviewed said presentation. values and skills among citizens,
they found services weak in Hilla.8
thereby promoting the sustainability of level as the central government does. agents, they can make decisions about
Decentralization can make for the democratic process and also ensures This is a key issue for Iraq given the location of services and determine
better service provision by providing accountability of political leaders and dependency on oil revenues, as is the local priorities.11
greater opportunities for community- government officials. It facilitates the need for equitable redistributions
based groups to lobby for greater access exchange of information and promotes of resources between different local “Decentralization is not just a means
to services such as primary health care, checks and balances between the governments (see section II.B). to an end, it is an end itself as well, because
education and low-income housing. centre and sub-national/local units the people empowerment is the key issue
Proximity to demand base for a service of government and administration Decentralization can accelerate here,” said Dr. Shah. “By moving the
renders response more effective and – one of the key ingredients of good economic development through governments closer to the people you
promotes a more rationalized use governance.10 Community participation active engagement of regional and empower them to take decision making
© Osama Abu Diab / Total View
of resources and this proximity also as a pillar of Iraqi decentralization is local government units and local in their own hands, to decide their own
allows for closer monitoring by the discussed in section II.C. enterprises in economic activities. well-being and you have an uplift of
beneficiary population of projects The transfer of authority and local economic development issues.”
intended to serve them.9 Decentralized decision-making resources to local units of government Dr. Shah revealed empirical evidence to
can also provide a better framework and administration to design and show how decentralization can lead to
“In the majority of the cases for poverty reduction provided it is implement development programmes higher GDP per capita (see figure 1.2,
decentralization has led to improved accompanied by appropriate fiscal provides more opportunities to local page 14), lower central government debt,
service delivery at the local level, so and administrative devolution of citizens to play a more direct role in lower corruption, more accountable and
although the evidence is mixed, it is powers to local governments so that the development process. As catalysts responsive governance (see figure 1.3, page
Dr. Shabbir Cheema, Director, Asia-Pacific Governance and Democracy Initiative, they can deliver services at the same for development and local change 14) and a more durable political system.
East-West Center, Honolulu, USA
7
The average monthly income for a family in Hilla district in Babil governorate in 2007 was about one-million Iraqi Dinars (USD 858.36) per month. Source: UNOPS,
Assessment of Local Governance in Iraq: Report on the District of Hilla Babil Governorate (2010)
8
UNOPS, Assessment of Local Governance in Iraq: Report on the District of Hilla Babil Governorate (2010) 10
Idem
9
Conference paper prepared by Dr G. Shabbir Cheema for the UN-HABITAT International Conference on Decentralization (Amman, May 2011) 11
Idem
16 17
Decentralization in Iraq WHY decentralization can help Iraq meet the challenges of urbanization
Strong_LG
Strong_SG
Fair_LG
Strong_LG
Strong_SG
Fair_LG
Strong_LG
Strong_SG
ingredients: through strong and
committed political leadership, Jonas Rabinovitch, UNDESA
central government officials must
be willing and able to share power,
Figure 1.3 More accountable governance with strong local government authority, and financial resources. federal government. Competition, government that we are challenging
The transfer of functions and innovation and cooperation at the their sovereignty,” said Mr. Rabinovitch.
non-OECD OECD Total resources must be accompanied local level will make Iraq’s federal “But we feel very comfortable now from
by training and local capacity government stronger. the perspective of the UN secretariat,
52 52 52 development programmes so that in sharing knowledge, information and
local officials can effectively perform “We cannot do something that gives experience with them, showing that
50 50 50 the decentralized functions. the impression to the [Iraqi] central decentralization can help.”
1000’s PPP units
Strong_LG
Strong_SG
Fair_LG
Strong_LG
Strong_SG
Fair_LG
Strong_LG
Strong_SG
Decentralized
The difficult and key point is to service delivery
find committed leadership. As one
delegate asked: how do you make a
government become “willing” to share
Source: Presentation by Anwar Shah at the UN-HABITAT International Conference on Decentralization, Amman, May 2011 power and resources?
assignment of functions
Legal framework:
accountability
Structure for
decentralization
Fiscal
management
Human resources
“There must be enlightened
Fair LG: Fair local government refers to weak or moderate role of government in multi-order governance
self-interest on the part of the central
Strong LG: Strong local government refers to a strong, expansive and autonomous role of local government government,” said Dr. Cheema.
Strong SG: Stands for wider and stronger role of state and provincial governments (usually associated with weak local governments)
Through the conference and
this report, the aim is to show
the federal government of Iraq
Finally, decentralization also the establishment of civil society society organizations in its communities, that the economic growth of the
facilitates the growth of civil society organizations around local issues that with the Hilla local government urbanizing country, the quality of
organizations and networks because impact directly on the lives of the assessment indicating that civil society service delivery, the support from
it provides the greatest scope for people.12 Iraq has very few effective civil organizations were very weak.13 empowered local governments and
devolution of responsibility to those Community participation
more suited to carry out the tasks,
12
Larry Diamond (1999) Developing Democracy :Toward Consolidation, Baltimore, Johns Hopkins University Press p. 123 means that decentralization is key
13
UNOPS, Assessment of Local Governance in Iraq: Report on the District of Hilla Babil Governorate (2010) to the long-term interests of the Source: Presentation by Dinesh Mehta, CEPT University, Ahmedabad.
18 19
How to drive forward progress on decentralization
“Each of Iraq’s levels of governments is comprised A: Political decentralization and the legal framework: why reform is needed on the
assignment of responsibilities between different levels of government
of different governmental bodies with differing
authority. It is the failure to understand these
differences, and the absence of a way of analyzing The current legal
framework for
them that is slowing Iraq’s progress towards decentralization
© istockphoto.com/sinankocasian
Prime Minister and his cabinet of
Lamar Cravens, Chief of Party, appointed ministers, and a system
Iraq Local Governance Program–Phase III of local government through the
eighteen governorates (provinces).
1
Conference paper prepared by Lamar Cravens for the UN-HABITAT International Conference on Decentralization (Amman, May 2011)
20 21
Decentralization in Iraq How to drive forward progress on decentralization
While the Constitution and Law 21 Until such time as those changes occur, the Provinces (HCCP) to be nominally committee made up of members
2
Conference paper prepared by Dr. Ehtisham Ahmad for the UN-HABITAT International Conference on Decentralization (Amman, May 2011) 5
Idem
3
Conference paper prepared by Lamar Cravens for the UN-HABITAT International Conference on Decentralization (Amman, May 2011) 6
Conference paper prepared by Lamar Cravens for the UN-HABITAT International Conference on Decentralization (Amman, May 2011)
4
Idem 7
Idem
22 23
Decentralization in Iraq How to drive forward progress on decentralization
24 25
How to drive forward progress on decentralization
“I think the biggest challenge is getting, what B: Effective strategies for fiscal decentralization and management of local budgets
© Thomas Henrikson
OECD, who also presented on fiscal
decentralization, agrees. “Of course, it
is a country in reconstruction so it will
take a while for Iraq to put together a
register of properties and come up with
the infrastructure and the know-how
Professor Dinesh Mehta, CEPT University
1
Conference paper prepared by Lamar Cravens for the UN-HABITAT International Conference on Decentralization (Amman, May 2011)
2
Hilla does not have any internal income and is completely funded by central funding. The Ministry of Finance manages the state budget and allocates allowances to the governorates.
3
Paper prepared by Michel del Buono, senior economic adviser at UNAMI: Resources Assigned by Iraq’s Central Government to Regional and Provincial Governments
4
Idem
26 27
Decentralization in Iraq How to drive forward progress on decentralization
© Reinhard Jahn
Kirkuk 159.2 117.3 41.9 186.5 115.0 71.5 formula, and with oversight by an
intergovernmental mechanism.8
Najaf 146.3 109.7 36.6 153.8 110.0 43.8
Diwaniyah 160.7 102.0 58.7 179.6 131.0 48.6
Muthanna 895.9 66.3 23.3 955.6 65.0 30.6 Own-source revenues
Chile is extremely dependent on natural resource revenue, particularly copper
Karbala 201.3 91.8 109.5 642.1 90.0 552.1 Even if there is a system of shared
Sala ad-Din 184.0 114.8 69.3 201.9 112.5 89.4 revenues with equalization transfers
Total 3,514.5 2,550.0 964.5 4,348.5 2,531.0 1,817.5 between provinces (see below), it is that are ideal for local government, Shah of the World Bank. “With strong
important to implement a system including property or sales taxes, that devolution, people will say ‘Well we do
Source: M Del Buono / Iraq Ministry of Finance
of local taxes over which the local they should try and collect instead of have oil resources but we need more
government has some control over just waiting for handouts from shared more money to carry out the following
rates. Own-source revenues are oil revenue from the centre.” project for local people’s needs’. Local
According to Dr. Shah: “One need for uniform standards to be Devolving fiscal power to necessary to ensure accountability of governments will not raise money
needs to think about how [Iraq’s] local adopted for appropriating and spending local governments local governments. This is important Mr. de Mello cited Chile for locally even if they have the powers to
governments can be empowered to raise resources at local and federal levels of in ensuring incentives for efficient example as another country that in the absence of incentives.”
some finance locally because without government. With the Iraqi Ministry As was seen in the previous section use of the transfers and spending and is dependent on natural resource
raising finances locally there will not be of Finance having made moves towards the devolution of responsibilities that sanctions against sub-national revenue, in Chile’s case copper, and As well as incentivizing
any accountability if they simply rely on adopting international standards by has to proceed step-by-step and default are credible.9 yet local governments there collect governorates to raise taxes, it is
transfers from the central government.” adopting the IMF’s GFS2001 budget requires the introduction of a property taxes and other taxes. important to harmonize tax policies
classification, Dr Ahmad stressed that legal framework defining, for each “The message I would underscore “Although you have to keep in mind of sub-national units, by defining
But, to get to a stage where revenue this should be extended to all sub- sector, the functions carried out is that oil revenues are one source of that Chile is nowhere nearly as the number of these levies, their
sharing and intergovernmental transfers national levels so that they use the same by the federation and the regions/ revenue that they [local governments] decentralized as I believe Iraq is likely tax base and the bounds within
are effective in assisting the economic budget classifications for revenues and governorates. In the constitution have but should not be a substitute for to become,” said Mr. de Mello. which tax rates can be applied, to
development of communities, Iraq expenses as the federal government. there is no clear assignment of other sources of revenue,” said Luiz de avoid excessive and uncontrolled
needs to first implement transparent It would also be helpful to have a taxation powers, the constitution Mello. “What happens a lot, especially In his conference paper, Dr Ahmad proliferation of local taxes.10
budgeting systems before it can proceed government financial information mentioning that fiscal policy in many developing countries, is advised of the need for national
to the devolution of fiscal powers and management system that can facilitate orientation is assigned to the federal that, because it is so easy to collect oil legislation to provide incentives to A delegate from the Iraq Local
provisions on sharing revenues.6 the new budget classification. A further government.7 As noted above, for money, these local governments don’t local governments to levy their own Government Association asked whether
aid to transparency in dealing with such powers to be exercised by local collect anything else, they just wait taxes and fees. Other conference it made sense to proceed to fiscal
funds from oil resources would be councils, there is a requirement for for the handouts. That’s what should participants agreed that incentivization decentralization while corruption is rife
Creation of budgeting to set up a treasury single account as an actual fiscal law granting specific be avoided in Iraq, because they have is important in terms of locally raised in the country.
and managing capacity a replacement for the Development tax raising powers to the provinces, the opportunity to do so by setting up revenues. “That [local taxation] is
Fund for Iraq, which was put in place as current provisions in Law 21 have this system from scratch. There are, for not going to happen unless strong Luiz de Mello summarized the
For transparent management of by the Coalition Provisional Authority not been upheld as sufficient to grant instance, taxes, and sources of revenue devolution takes place,” said Anwar issue neatly. “If you look at what the
resources, Dr. Ahmad advised of the to administer Iraq’s revenues. local powers of taxation.
8
Conference paper prepared by Dr Etisham Ahmad and Giorgio Brosio for the UN-HABITAT International Conference on Decentralization (Amman, May 2011)
6
Conference paper prepared by Dr Etisham Ahmad and Giorgio Brosio for the UN-HABITAT International Conference on Decentralization (Amman, May 2011) 9
Idem
7
Conference paper prepared by Dr Etisham Ahmad and Giorgio Brosio for the UN-HABITAT International Conference on Decentralization (Amman, May 2011) 10
Idem
28 29
Decentralization in Iraq How to drive forward progress on decentralization
© OECD
services each level of government is government is to take hold.
Transferring money providing and once you know what Without local revenues, there
to local governments: your own sources of revenue are, can be no accountability for
10
Conference paper prepared by Dr Etisham Ahmad and Giorgio Brosio for the UN-HABITAT International Conference on Decentralization (Amman, May 2011)
11
Idem
9
Conference paper prepared by Dr Etisham Ahmad and Giorgio Brosio for the UN-HABITAT International Conference on Decentralization (Amman, May 2011) 12
Conference paper prepared by Dr Etisham Ahmad and Giorgio Brosio for the UN-HABITAT International Conference on Decentralization (Amman, May 2011)
30 31
How to drive forward progress on decentralization
“When people feel engaged, they contribute better C: Bringing citizens into the democratic process: the value of community participation
1
Conference presentation by Jonas Rabinovitch at the International Conference on Decentralization, Local Governance and Service Delivery (Amman, May 8-10 2011)
2
Conference presentation by Dr. Ali Hadi Humaidi Al-Shokrawy of the University of Babil and Dr. Kawa Faraj of the University of Sulaymaniyah (Amman, May 8 2011)
32 33
Decentralization in Iraq How to drive forward progress on decentralization
In his presentation, Jonas Rabinovitch allows local governments to promote and Sulaymaniyah Local Government
also highlighted the benefits of the awareness of citizen participation Assessments are the setting up of
application of Information and opportunities including attendance at a local council website and even a
Communications Technologies meetings and to receive feedback and possible private television channel
(ICT) to add transparency and establish grievance procedures. Among to inform citizens and mobilize
accountability to the post-conflict the recommendations of the Hilla community participation.4
reconstruction process. The impact of
ICT in assisting in service delivery is
© djj
considered in the next section but a
second aspect to e-governance is the Recommendations and conclusions
Participatory budgeting was pioneered in Brazilian cities such as Porto Alegre
empowerment of citizens through
enhanced civic participation. • Community participation in Iraq’s local councils has been limited with
not just an absence of citizen participation Many of these do not exist in Iraq “If you go and do participatory a lack of processes for consultation with citizens.
in district administration meetings but and some may not be appropriate budgeting without these preconditions As Ed Cornies revealed, local
there is a lack of awareness of most citizens though the lack of referenda on local you have a free for all, I mean it’s authorities in Europe are putting vast • To address this, councils need to develop dialogue with citizens through
of their right to attend meetings. issues was highlighted by the Hilla and disastrous, to put it mildly,” said Dr. amounts of information regarding for example the development of Internet sites and media communications,
Sulaymaniyah assessments. Ahmad, co-author of the presentation. services and political issues on the through referenda on local issues and through citizens’ attendance at
In order to drive community web to ease access to information council meetings.
participation, Ed Cornies, Chief Another item from Mr. Cornies’ Luiz de Mello agreed. “You already for citizens as well as to facilitate the
Technical Adviser at UNDP in Turkey, list formed part of a separate discussion need to have a very well developed payment of taxes and utility charges • It is too early for Iraq to consider participatory budgeting, which should be
emphasized at the conference that – whether participatory budgeting was system of budgeting at local level so through Internet banking. The Internet implemented only when there is strong local governance in place.
it is necessary to develop a culture suitable for Iraq. Professor Giorgio that the local authorities can come
of dialogue between administrative Brosio’s presentation explained how up to the citizens and have a menu of
authorities, politicians, citizens, social participatory budgeting has been options from which they can choose.
groups, associations, representatives of implemented in other countries They have to have a very careful
industry and other operators. to allow non-elected citizens to cost benefit analysis of what they are
participate in the decisions on where proposing so that people know exactly
He cited several initiatives in budget should be allocated for local what to choose from, and a good
European countries to empower citizens projects and services. Participatory system of disseminating information
through community participation: budgeting developed in Brazil in the on how local governments function
1980s as part of the establishment and how they prioritize the plans that
• Neighbourhood advisory councils; of democracy and civic participation they are proposing for public choice.”
in local government after decades of
• Advisory committees on selected military dictatorship and has spread Participatory budgeting is a
technical issues; to other Latin American countries possible future mechanism for Iraqi
and many European ones. But while local governments but as this report
• Referenda on major local issues; Iraq shares a common history of has stated in previous sections, there
moving from military dictatorship to are fundamental legal, political
• Involving community groups in the decentralized governance, conference and administrative steps to be
delivery of selected services; participants were sceptical about undertaken before moving to this
the value of participatory budgeting type of engagement.
• Participatory budgeting; for Iraq until it has first developed
transparent budgeting systems and “There are huge risks with
3
Professor of Public Finance and Local Government, University of Turin, Italy 4
UNOPS, Assessment of Local Governance in Iraq: Reports on the District of Hilla, Babil Governorate and Sayd Sadiq & Sharazour Districts, Sulaymaniyah Governorate (2010)
34 35
Decentralization in Iraq How to drive forward progress on decentralization
36 37
How to drive forward progress on decentralization
“During the conference there was a lot of debate D: Implementing structures for better delivery of services
State and
Utility / ULB Associations
National Governments UPWARD
ACCOUNTABILITY
Reform-linked funding, Performance benchmarking,
Regulatory compliance Self regulation
Internal Accountability
INTERNAL
accountability for URBAN LOCAL BODY for regular
ACCOUNTABILITY
performance results operations
Source: Presentation at the UN-HABITAT International Conference on Decentralization by Professor Dinesh Mehta, Amman, 9 May 2011
1
Conference presentation by Dinesh Mehta for the UN-HABITAT International Conference on Decentralization (Amman, May 2011)
38 39
Decentralization in Iraq How to drive forward progress on decentralization
In this respect, Jonas Rabinovitch Capacity building before powers are devolved. Anwar Shah
explained how e-governance can assist said World Bank research in Colombia “We’re talking about a
with local service delivery. Online front Even with clearer rules on assignment of showed building capacity before very complex structure
office systems can be used to deliver responsibilities and the finance to fulfil devolution was not necessary. The World involving thousands of
certificates to citizens, to handle tax those responsibilities, a key challenge for Bank study compared cities with high civil servants working for
and fee payments, and to administer Iraq is developing a civil service technically technical capacity and those with lower the Iraqi government and
a grievance and complaints procedure experienced and competent enough to capacity and after devolution, the cities capacity is a challenge if
supporting the physical delivery of ensure improved service of delivery. with low technical capacity achieved
services to residents.2 better delivery of services. we are to decentralize
“We’re talking about a very complex certain administrative
© UNDESA
“Each transfer of resources structure involving thousands of civil “You can transfer overnight all the functions.”
is accompanied by very specific servants working for the Iraqi government central officials, and federal officials to
Jonas Rabinovitch, UNDESA
responsibilities and accountability and capacity is a challenge if we are the provincial and local level, as was done
mechanisms and part of my to decentralize certain administrative in Indonesia, or you can do it gradually,
presentation was to highlight how functions,” said Mr. Rabinovitch. as has been done in Thailand but what
e-government can support transparency is critical is that the local governments they want to hire and if the central transition to the new system has to be In terms of training personnel.
objectives and accountability Participants differed in their views have the powers to decide what positions government is able to transfer some properly sequenced to avoid errors.3 Jonas Rabinovitch cited the United
objectives,” said Mr. Rabinovitch. on whether capacity should be the focus they want to have, how many people personnel to fill these positions as In Latin America for example, sharing Nations Public Administration
desired,” said Dr. Shah. “But even if of revenues before responsibilities Country Studies as an online tool
that doesn’t happen local governments, had been properly assigned proved to assist development. “It will not
if they have the resources and they detrimental to the effectiveness of provide the Iraqi government with a
have the responsibilities, will be able decentralization. magical formula as to how to do their
to hire people. So technical capacity own reform, they have competent
to me is only of secondary importance people already working on that,”
because technical capacity assumes that The proper sequence of steps explained Mr. Rabinovitch. “But it
everything will be delivered by the local undertaken by Iraq should be as will provide them with references
governments itself whereas the new follows4: and information about capacity
paradigm is that local governments act development, existing codes of
as a coordinator or catalyst and are a • establishment of budgeting and conduct for the civil service, existing
purchaser of services but not necessarily managing capabilities prior to institutional settings, a network of
a direct provider of services.” devolution; chief operation officers worldwide,
samples of legislation for electronic
Professor Mehta agreed saying that • the transfer of personnel to government development and samples
whether or not there is a major transfer subnational control; of policies for electronic government
of central government officials to local development. So it’s a resource to find
government, local governments will • the assignment of hiring, out what is happening and how, in
assume the capacity through experience. remuneration and management other UN member states. I think it
“The way they do it in some countries of career responsibilities to the could be immediately useful in terms
is that there is a whole array of people subnational government units where of information sharing and eventually
that are local government and they personnel has been transferred; further support cooperation with all
move from one local government to UN agencies.”
another but they are the people that • the transfer of property of
are most experienced and trained, like infrastructure and equipment to
accountants, and these are the kind subnational governments in their Administrative
of people that move from one local newly assumed functions, together structures for service
government to another.” with responsibility for maintenance delivery
and operations; and
Dr. Ahmad said that the transfer of Brazil and France were cited by
personnel should only be undertaken • the gradual assumption of full conference speakers as examples of how
© tommco
when budgeting and management functional assignments in the same municipalities had addressed issues
capabilities were in place. Experience sector (primary education, basic of service delivery by joining together
in other countries had shown that the health care etc). in inter-municipal consortia. As part
World Bank research in Colombia showed building capacity before devolution was not necessary
3
Conference paper prepared by Dr Etisham Ahmad and Giorgio Brosio for the UN-HABITAT International Conference on Decentralization (Amman, May 2011)
2
Conference paper prepared by Jonas Rabinovitch for the UN-HABITAT International Conference on Decentralization (Amman, May 2011) 4
Idem
40 41
Decentralization in Iraq How to drive forward progress on decentralization
5
Conference paper prepared by Ed Cornies for the UN-HABITAT International Conference on Decentralization (Amman, May 2011)
6
Conference paper prepared by Luiz de Mello for the UN-HABITAT International Conference on Decentralization (Amman, May 2011)
7
Presentation by Professor ATM Arul Amin, Department of Environmental Science & Management, School of Engineering & Applied Sciences, North South University (NSU),
Dhaka, Bangladesh, at the International Conference on Decentralization (Amman, May 2011)
but the majority view is that Iraq still a smaller equity investment from
lacks the technical capacity and the the private sector. “So if the central
stable investment environment for and provincial government puts
such market financing. up 70 percent then 30 percent can
come from the private party, which
© Thomas Henriksson
“I think market based solutions perceives risk to be low though at
are still a long way from Iraq and no same time they are taking some of
one in the private sector is willing to the risk, the demand risk and the
take the risks unless they see some construction cost.”
kind of stability, so it will initially
have to be funded out of federal One delegate pointed out that
funds and to some extent local it would be very difficult to develop
funds, but the market solution is private sector lending in Iraq where
“I think market-based something that might be possible there was no trust between financial
solutions are still a long once things have settled, but that institutions and citizens. Richard
way from Iraq and no could be 5 years maybe 10 years,” Slater said that a solution for the
one in the private sector said Professor Mehta. future could be for local governments
to form inter-municipal bodies to
is willing to take the risks One challenge is to develop attract private funding. “If you can
unless they see some kind the technical capacity in Iraq pool money from different local
© istockphoto.com/ericsphotography
of stability.” for public-private partnerships governments into a dedicated account
(PPPs). Ed Cornies said that while for debt servicing then that will bring
Dinesh Mehta, CEPT University
PPPs had been a feature of EU more confidence for people to come
decentralization, they had been forward and lend,” said Mr. Slater.
less successful in the transition
for redistribution services such as economies of eastern European
alleviation of urban poverty, urban because of the absence of suitably
environment, climate change, and qualified individuals. Recommendations and
local economic development. conclusions
Luiz de Mello agreed that capacity
There are pre-requisites for this was an issue. “I don’t think the • In terms of capacity building,
There needs to be trust between the government and citizens for decentralization to progress in Iraq second model however. Firstly, there local governments [in Iraq] would it is important that Iraq
needs to be a fiscal architecture that currently have the technical capacity only undertakes transfers of
allows local governments access, to design a PPP contract, even if they personnel once transparent
Market finance for either directly or via the revenue- found a private sector partner. At the budgeting and management
service delivery sharing arrangements, to economy- moment, because the infrastructure capabilities are in place.
wide sources, which has been reconstruction needs are vast and due to
In terms of financing services The aim should be to put in One option would be a basis discussed in section II, B. the institutional, technical and capacity • Establishing inter-municipal
and infrastructure at the local level, place a kind of urban financing model of local government finance. It constraints at the local level, I would consortia may assist Iraq’s
the importance of incentivizing local architecture that would enhance would allow for a limited functional Secondly, as discussed above say, at least in the near term, that it local governments in service
governments to develop own source the economic productivity of Iraq’s domain for local governments, for there would be a need for a major would be best to rely on transfers from delivery in terms of dealing
revenues has already been explored cities, contribute to reducing the example, provision of local public capacity building programme for the centre. In the future they can think with diseconomies of scale and
(section II, B). urban infrastructure deficits, foster goods, goods characterized by non- municipalities, preparing them to face of other possibilities that would involve attracting private funding in
decentralization, and strengthen excludability, and correspondingly, a the impact of economy-wide changes. greater autonomy for local governments the future.
Iraq is not the only country the country’s federal structure.9 fiscal space based on the principle of to raise their own revenue or a
that is facing the crisis of urban There needs to be a system ‘immobility of tax bases’.10 The question also arises as to the different alternative from private sector • Iraq lacks the technical
infrastructural services but it is implemented that enables Iraq to extent to which market finance can assist involvement,” said Mr. de Mello. capacity and stable investment
uniquely placed in terms of making an face the challenges of globalization, A further option could be a 21st such investment to take Iraq’s governorates environment to attract
informed choice of what it wants and urbanization and decentralization, century local government system where away from their dependency on central A second challenge is to show market financing. In terms of
what the political costs and benefits and deal with them efficiently local governments will be responsible government transfers. investors that there is a clear infrastructure development
are of the various alternatives.8 and adequately. not only for local public goods but also revenue stream for the services it should for the moment
One option is public-private being provided. In such cases, rely on transfers from the
partnerships (PPPs). Richard Slater, Richard Slater said private sector federal government backed
consultant with GHK, presented some lending could happen if different by equalization systems as
8
Presentation by Professor Om Prakash Mathur, National Institute of Urban Affairs (NIUA), at the International Conference on Decentralization (Amman, May 2011)
9
Idem of the innovative financing operations levels of government could provide described in section II,B.
10
Idem available to South-Asia municipalities the majority of the funding with
44 45
Appendices
1
Conference paper prepared by Tommy Firman for the UN-HABITAT International Conference on Decentralization (Amman, May 2011)
48 49
Decentralization in Iraq Appendices
Central Java has reduced the time taken to get business government. The role of the central government is to create economic development issues. China has ensured that there accountability of line agencies to local government
permits by introducing one-stop service stations and a incentives and formulate a clear mechanism for locally- is accountability at all levels, from the people to the top of bodies. There was inadequate coordination in planning
timed application process; a district mayor in Sulawesi initiated local government partnerships. the central government, and using a market model for local and implementing programmes, often resulting in the
has introduced a mobile government concept to increase governance accountability. The people’s local governments are duplication of tasks and responsibilities. To overcome
agricultural productivity.2 the leaders for motions and their autonomy depends on how these problems, the newly elected local bodies demanded
China well they deliver services to the people, how satisfied they are authority over line agencies.
Despite central government administrative authority with these services, and how fast the local economy is growing.
being transferred to provinces, districts and Dr. Anwar Shah and Dr. Shabbir Cheema examined the These are the three criteria that are used to decide how much The recommendations of the 1996 Decentralization
municipalities, with some exceptions, the decentralization process of decentralization in China and what it may add to autonomy each local government will have and also whether Coordination Committee led by the Prime Minister
reform has not led to uniform outcomes, with some local the Iraqi experience. the leadership has the potential to move upwards. formed the basis of the Local Self-Governance Act
governments able to develop impressively, while others (LSGA) of 1999. The LSGA is the most comprehensive
are now worse off than before. Through the 1980s and the early 1990s, China So even in the absence of political democratization, piece of legislation that Nepal has ever implemented
implemented a series of reforms to decentralize its fiscal decentralization has delivered, in terms of uplifting the in respect of decentralization and local governance,
With increased decentralization and autonomy, system to provide more incentives to local government to peoples’ lives as well as giving a sense of participation reemphasizing democracy through wider participation of
local governments have tended to be more inward promote economic growth. However, the decentralization in the affairs of the state. Expenditure shares in China the people in the governance.
looking in orientation. There has been a trend to local led to widening fiscal disparity and shrinking central are divided between all levels of government, with each
government fragmentation, as the local governments government revenues. In 1994, the government introduced taking responsibility for different sectors. The central The Local Self-Governance Act sets out a number of
often look to maximize their own local income by the tax sharing reform in order to boost central revenues government has the dominant share in defence, foreign goals that could be achieved through decentralization
exploiting available resources, and without considering and enhance intergovernmental transfers. affairs and research and development, with provinces in Nepal. Among the targets is the introduction of
the interests of their neighbouring districts, acting dominating agriculture and local governments accounting grassroots participatory planning by all including ethnic
with ‘Local Egocentrism’, as Professor Firman stated. Compared to its decentralized fiscal system, China’s for education, health, police, justice, social security and communities, indigenous people and socially and
Therefore effective inter-local government cooperation political system is rather centralized and can be all municipal-local functions. economically disadvantaged groups and the balanced
for the purpose of urban and regional development described as a multidivisional-form hierarchy structure. distribution of the products of development. The
becomes much more difficult to build. Many scholars attribute China’s remarkable economic The government oversight maintains the separation of LSGA emphasized the importance of strengthening
performance since 1978 in part to the country’s political executive and legislative functions, with directly elected the governance and service delivery capacity of local
In the past coordination and partnership between local and fiscal decentralization. Decentralization is said to people’s congress at each level, while the Communist bodies and coordinating development efforts among
governments did not present a problem. Now, under the have stimulated local policy experiments and restrained Party monitors citizen satisfaction and dissatisfaction. government, donors, non-governmental organizations,
new decentralization policy, the situation has been greatly predatory central interventions. Fiscal decentralization Higher level oversight is based upon objective criteria that civil society and the private sector. The need for the
changed. Many local governments consider themselves is thought to have motivated local officials to promote incorporates, local economic development performance, development of local leadership and accountability of
‘Kingdom of Authorities’.3 development and harden enterprises’ budget constraints. local service delivery performance and rewarding success local bodies to local people is stressed, together with
The locally diversified structure of the pre-reform and punishing sustained failure. the participation of the private sector in providing basic
The Kartamantul Joint Secretariat has been very effective economy is said to have facilitated liberalization.4 services for sustainable development.
in the implementation of integrated infrastructure China has proved that, despite being leaner, allocating an
development in an urban-rural region. In contrast, the The Chinese model is one of democratic centralism important coordinating role for provinces and an expansive Under the LSGA, the two-tier local governance system is
BKSP Jabodetabek has been ineffective because of the and dual subordination. Local autonomy varies with role for local governments is critical to maintaining peace, made up of the village development committee (VDC)
lack of authority and power to implement metropolitan fiscal capacity and economic development performance, order, good governance and economic growth. and the district development committee (DDC). Every
management in the region. A mixed format of local and local governments play the strongest roles in local VDC has nine wards, each with a five-member elected
governance is considered as the most appropriate model economic development. committee, including one female member. The 4913
for the Jabodetabek, in which the local, provincial Nepal VDCs in the country’s 75 districts have been given the
and central government should have different roles in China is an economic powerhouse poised to assume responsibility for implementing basic health education
metropolitan management. world economic leadership, which has been due largely At the conference, Himkat Bista presented the experiences of and sanitation programmes, running primary schools
to the increased power of local governments. The country Nepal in its move towards decentralization, which have been and literacy classes as well as community health centres.
Despite the numerous positive impacts that decentralization has a sustained record of growth and prosperity, while accelerated as part of its post-conflict recovery from civil war. The local bodies carry out most of their activities
has brought to Indonesia, encouraging inter-local also possessing the most impressive record in poverty through user groups, community-based organizations
government partnerships is a problem. There needs to alleviation, and local governments have acted as catalysts Efforts towards decentralization in Nepal began in and community organizations.
be greater openness, trust and transparency between the for this development.5 the 1960s with the establishment of separate district,
local governments involved, as well as good collective municipality and elected village-level assemblies with the Despite the positive intentions and moves towards a
leaderships for local governments and the councils. The By moving the governments closer to the people, China has authority to make policy, implement programmes and decentralized government in Nepal, the current situation
interests for partnership should come primarily from the empowered its citizens to take decision making into their levy taxes. The 1990 Constitution stipulated that the is not as advanced as hoped. There are still no elected
local governments themselves, and not from the central own hands, to decide their own well-being and uplift local chief responsibility of the state was the establishment of representatives in the Local Government Councils
conditions suitable to the wider participation of people in (including Municipalities), with it being managed
the governance of the country. solely by government officials. This means there is no
downward accountability and transparency, an increase
2
Conference paper prepared by Dr. Shabbir Cheema for the UN-HABITAT International Conference on Decentralization (Amman, May 2011) However, the Village Development Committee (VDC), in corruption and misuse, and no access for citizens
3
Conference paper prepared by Tommy Firman for the UN-HABITAT International Conference on Decentralization (Amman, May 2011)
4
Conference paper prepared by Dr. Shabbir Cheema for the UN-HABITAT International Conference on Decentralization (Amman, May 2011) and Municipality and District Development Committee to participate in the planning or implementation of
5
Presentation by Dr. Anwar Shah, World Bank at the International Conference on Decentralization (Amman, May 2011) (DDC) Acts of 1992 did not introduce horizontal municipality works.6
50 51
Decentralization in Iraq Appendices
More than 15 percent (3.6 million) of Nepal’s population The introduction of the norm cadre system for enough to be viable. Amalgamate the two-level systems
live in the country’s 58 towns and cities (figures from 2008). municipalities eliminated the need for the Ministry of that cannot be justified into single units.
The municipal authorities are in no position to meet the Interior to approve the hiring of municipal staff but it
technical and financial challenges of the rapid urbanization is considered by many as not flexible enough to take • Encourage the amalgamation of small municipalities with
process. Poorer population groups in particular are included into account special circumstances where more than the incentives if necessary as a preferred alternative to the
only to a limited extent and the supply of basic services to prescribed number of technical staff are sometimes required continuation of local inter-municipal service unions.
these groups is currently inadequate. to carry out certain functions.
• The implementation of reforms at the local level needs
Nepal is going through a transitional phase where a new Citizen assemblies have only been formed in a relatively to be supported by technical support and advice from
Constitution is in the making. It is most likely that the local small number of municipalities and most have major the central government.
elections will be held after the new Constitution is in place. operating problems because there are no clear operating
guidelines and virtually no ongoing capacity building • Encourage and support the development of strong
support from the central government. They do not have a national and regional municipal associations so that
Turkey reliable ongoing source of funding and political tensions they to act as lobbyists and participate in national policy
between the assemblies and the municipal mayors and discussions regarding local government reform. Provide
Dr. Leyla Şen outlined Turkey’s move towards elected councils are common. financial support as necessary to enable them to provide a
decentralization in her conference paper. wide range of training to local elected officials and staff.
Although they are now legally recognized and regulated,
Comprehensive local government reform efforts in most inter-municipal unions in rural areas are weak and • Develop and implement national policies and
Turkey, aimed at bringing the local government system in in need of major strengthening, while the requirement for legislation that ensure municipalities are adequately
line with international best practices began in the 1980s larger municipalities to prepare strategic development plans funded taking into account regional income disparities
and were significantly expanded during the period from has been well received and the results have been generally and that they have the power to raise significant
2003 to 2005. Turkey has 81 Provinces and a population positive. Mandatory membership for all municipalities has amounts of their revenues.
of over 70 million, while there are three types of local transformed the Union of Municipalities of Turkey into
governments in Turkey: special provincial administrations a larger more powerful organization with the necessary • Enact legislation that provides for a better balance of
(SPAs), municipalities and villages. funding to promote local government interests more power between mayors and councillors and enables
effectively and to develop an ambitious future training local residents to vote for specific individuals for
The impacts of the reforms in Turkey have been varied programme for local elected officials and staff. council positions rather than just party lists.
and there is much that could be learnt from them
experiences. The amalgamation of small municipalities Dr. Leyla Şen, in her paper for the UN-HABITAT • Experiment with reform initiatives where possible by
into larger district municipalities in the metropolitan International Conference on Decentralization, implementing them first on an experimental basis in a
areas helped to improve the delivery of many local summarizes the lessons that can be learnt from Turkey’s small number of demonstration municipalities. If the
services. Increasing the number of council meetings experience with local government reform as follows: results are positive then move ahead with nationwide
gave the councils a higher profile but mayors still retain reforms.
a disproportionate amount of power. Additional ways • Try to develop a comprehensive decentralization and
need to be identified that allow the elected council reform strategy in consultation with a wide range of
members to play a more meaningful role in municipal national and local stakeholders. Ensure that the strategy
decision making.7 has strong support from senior central government
elected officials. Avoid if possible the implementation of
Introduction of audit commissions and municipal reforms in an incremental or ad hoc manner.
auditors as well as accrual accounting and performance
management reporting has generally increased • Establish a clear division of responsibilities between
transparency and accountability in municipalities and central government and local government and between
improved financial management practices but major metropolitan municipalities and district municipalities
problems still exist. Despite the 30 percent increase in based on the reform strategy and provide ongoing
central government funding, municipalities are still in training and supervision to ensure that is properly
need of additional funds and powers to enable them implemented.
to raise their own funds through local taxes and special
charges. At the same time many mayors and councils are • Critically assess all two-level metropolitan government
unwilling to introduce local tax increases because of the systems to determine if they are working effectively and
potential for political backlash. efficiently. Ensure that district municipalities are large
6
Presentation by Dr. Hikmat Bista, The Local Governance and Accountability Facility (LGAF), Nepal, at the International Conference on Decentralization (Amman, May 2011)
7
Conference paper prepared by Dr. Leyla Sen for the UN-HABITAT International Conference on Decentralization (Amman, May 2011)
52 53
Decentralization in Iraq
Section Four of the Constitution: Powers of the a specified period for the damaged regions which were Section Five of the Constitution: • Third: Regions and governorates shall be allocated an
Federal Government unjustly deprived of them by the former regime, and Powers of the Regions equitable share of the national revenues sufficient to
the regions that were damaged afterwards in a way that discharge their responsibilities and duties, but having
Article 109: The federal authorities shall preserve the ensures balanced development in different areas of the Chapter One [Regions] regard to their resources, needs, and the percentage of
unity, integrity, independence, and sovereignty of Iraq country, and this shall be regulated by a law. their population.
and its federal democratic system. Article 116: The federal system in the Republic of
• Second: The federal government, with the producing Iraq is made up of a decentralized capital, regions, and • Fourth: Offices for the regions and governorates shall
Article 110: The federal government shall have exclusive regional and governorate governments, shall together governorates, as well as local administrations. be established in embassies and diplomatic missions, in
authorities in the following matters: formulate the necessary strategic policies to develop the oil order to follow cultural, social, and developmental affairs.
and gas wealth in a way that achieves the highest benefit to Article 117:
• First: Formulating foreign policy and diplomatic the Iraqi people using the most advanced techniques of the • Fifth: The regional government shall be responsible
representation; negotiating, signing, and ratifying market principles and encouraging investment. • First: This Constitution, upon coming into force, for all the administrative requirements of the region,
international treaties and agreements; negotiating, shall recognize the region of Kurdistan, along with its particularly the establishment and organization of the
signing, and ratifying debt policies and formulating Article 113: Antiquities, archeological sites, cultural existing authorities, as a federal region. internal security forces for the region such as police,
foreign sovereign economic and trade policy. buildings, manuscripts, and coins shall be considered security forces, and guards of the region.
national treasures under the jurisdiction of the federal • Second: This Constitution shall affirm new regions
• Second: Formulating and executing national security authorities, and shall be managed in cooperation with the established in accordance with its provisions.
policy, including establishing and managing armed regions and governorates, and this shall be regulated by law. Chapter Two
forces to secure the protection and guarantee the Article 118: The Council of Representatives shall enact, in [Governorates that are not incorporated in a region]
security of Iraq’s borders and to defend Iraq. Article 114: The following competencies shall be shared a period not to exceed six months from the date of its first
between the federal authorities and regional authorities: session, a law that defines the executive procedures to form Article 122:
• Third: Formulating fiscal and customs policy; issuing regions, by a simple majority of the members present.
currency; regulating commercial policy across regional and • First: To manage customs, in coordination with the • First: The governorates shall be made up of a number of
governorate boundaries in Iraq; drawing up the national governments of the regions and governorates that are not Article 119: One or more governorates shall have the districts, sub-districts, and villages.
budget of the State; formulating monetary policy; and organized in a region, and this shall be regulated by a law. right to organize into a region based on a request to
establishing and administering a central bank. be voted on in a referendum submitted in one of the • Second: Governorates that are not incorporated in
• Second: To regulate the main sources of electric energy following two methods: a region shall be granted broad administrative and
• Fourth: Regulating standards, weights, and measures. and its distribution. financial authorities to enable them to manage their
• First: A request by one-third of the council members of affairs in accordance with the principle of decentralized
• Fifth: Regulating issues of citizenship, naturalization, • Third: To formulate environmental policy to ensure the each governorate intending to form a region. administration, and this shall be regulated by law.
residency, and the right to apply for political asylum. protection of the environment from pollution and to
preserve its cleanliness, in cooperation with the regions • Second: A request by one-tenth of the voters in each of • Third: The governor, who is elected by the
• Sixth: Regulating the policies of broadcast frequencies and governorates that are not organized in a region. the governorates intending to form a region. Governorate Council, is deemed the highest executive
and mail. official in the governorate to practise his powers
• Fourth: To formulate development and general Article 120: Each region shall adopt a constitution authorized by the Council.
• Seventh: Drawing up the general and investment planning policies. of its own that defines the structure of powers of
budget bill. the region, its authorities, and the mechanisms for • Fourth: A law shall regulate the election of the
• Fifth: To formulate public health policy, in cooperation exercising such authorities, provided that it does not Governorate Council, the governor, and their powers.
• Eighth: Planning policies relating to water sources from with the regions and governorates that are not contradict this Constitution.
outside Iraq and guaranteeing the rate of water flow to organized in a region. • Fifth: The Governorate Council shall not be subject
Iraq and its just distribution inside Iraq in accordance Article 121: to the control or supervision of any ministry or any
with international laws and conventions. • Sixth: To formulate the public educational and institution not linked to a ministry. The Governorate
instructional policy, in consultation with the regions • First: The regional powers shall have the right to Council shall have independent finances.
• Ninth: General population statistics and census. and governorates that are not organized in a region. exercise executive, legislative, and judicial powers in
accordance with this Constitution, except for those Article 123: Powers exercised by the federal government
Article 111: Oil and gas are owned by all the people of • Seventh: To formulate and regulate the internal water authorities stipulated in the exclusive authorities of the can be delegated to the governorates or vice versa, with
Iraq in all the regions and governorates. resources policy in a way that guarantees their just federal government. the consent of both governments, and this shall be
distribution, and this shall be regulated by a law. regulated by law.
Article 112: • Second: In case of a contradiction between regional
Article 115: All powers not stipulated in the exclusive and national legislation in respect to a matter outside
• First: The federal government, with the producing powers of the federal government belong to the authorities the exclusive authorities of the federal government,
governorates and regional governments, shall undertake of the regions and governorates that are not organized in the regional power shall have the right to amend the
the management of oil and gas extracted from present a region. With regard to other powers shared between the application of the national legislation within that region.
fields, provided that it distributes its revenues in a fair federal government and the regional government, priority
manner in proportion to the population distribution shall be given to the law of the regions and governorates
in all parts of the country, specifying an allotment for not organized in a region in case of dispute.
54 55
Decentralization in Iraq Appendices
Law 21 of 2008. Article 7 Participants identified the following challenges and Environmental
(See section II.A) suggested solutions to advancing the decentralization
process in Iraq. 7. The environmental challenges include contamination
The governorate council shall assume the following of water and desertification.
functions: A. Challenges to effective decentralization
B. Proposed solutions to promote decentralization
• First: Elect the council head and his deputy by an absolute Political
majority of the council members at the first session of the 1. Parliament must legislate for the benefit of the
council called for by the governor within 15 days from the 1. The general policy of the federal government towards governorate councils in amending Law 21 of 2008.
date of the certification of the election results. The session centralization.
shall be chaired by the oldest member. 2. The federal government must set up a clear mechanism
2. The conflict between the regulations defining the for transfer of authority to the governorate councils.
• Second: Remove, upon the request of one third of the role and capacity of the federal government and
members, the council head or the deputy by an absolute governorate councils. 3. The federal government through Parliament must
majority of the council members in cases where one of enact the necessary legislation for governorates to
the conditions stipulated in Paragraph “Eighth” of this 3. The lack of fairness demonstrated by ministry staff when manage the ministries that address basic services
Article has been met. dealing with decentralized governing bodies. (municipalities).
• Third: Issue local laws, instructions, bylaws, and 4. Interference by the security forces, especially the army, in 4. There should be campaigns in the media and civil
regulations to organize the administrative and financial the duties of local governorate councils. society to support decentralization.
affairs so that it can conduct its affairs based upon
the principle of administrative decentralization in a Social 5. The capacity of members of local governorate
manner that does not contradict the provisions of the councils needs to be developed by enrolling them in
Constitution and federal laws. 5. Iraq’s population is a mix of religious, ethnic and tribal similar training schemes to those offered to federal
groups with social differences spread across urban and government staff.
• Fourth: Outline, in the development of the plans for the rural communities.
governorate, the general policies in coordination with the
competent ministries. Economic
56 57
This report presents the outcomes of UN-HABITAT’s
International Conference on Decentralization,
Local Governance and Service Delivery: Sharing
Experience and Sustaining Progress in Urban Iraq,
which took place in Amman, Jordan from 8-10
May 2011. The objective of the conference was to
provide an opportunity for Iraqi Local Government
Association representatives to learn, experience
and benefit from the process of decentralization
and development of local governments in
other selected countries. The conference
provided a focused practical perspective on how
decentralization in urban areas promotes local
government as an effective tool for service delivery.
HS/011/12E