ASSIGNMENT

On
DECENTRALIZATION AND DEVELOPMENT

Submitted to:
Sir Mudabbir Malik
Submitted by:
Mahnoor Shah Jhan
BPA-15-28
Manahil Asim
BPA-15-35
(Morning)
Decentralization and Governance

DEPARTMENT OF POLITICAL SCIENCES

BAHAUDDIN ZAKARIYA UNIVERSITY MULTAN
 INTRODUCTION
“Decentralization in government is the distribution of authority among many organs of defined
geographic or functional competence according to relatively permanent constitutional or
legislative provisions.”
Democratic decentralization - widely considered a strategy of governance and a gradual process
of reform - that addresses a range of administrative, political, fiscal, and land issues - is thus
intended to transfer power and resources to a level of government that is closer, better understood
and more easily influenced (than was previously the case). The underlying aim is to enhance the
level of participation of civic actors in local governance and development process. While
development means the process in which someone or something grows or changes and becomes
more advanced. Development of a country can generally be determined by;
i. its per capita income
ii. its average literacy level
iii. health status of its people
So the phrase decentralization leads to development means the decentralized government leads the
particular country towards growth in terms of economic conditions, foreign relations, good health
condition of its people, high literacy rates, strong democracy, transparent political system, more
accountability of the public administration, etc.

BENEFITS OF DEMOCRATIC DECENTRALIZATION

Today, the merits of decentralization depend on the perspective from which it is viewed.
Nonetheless, there is general consensus about the potential role of democratic decentralization
with respect to local development, and particularly, poverty reduction. There are reasons for the
growth faith in democratic decentralization among which are the following:
1. Brings government to the doorstep of the people
One of the merits of decentralization is that it brings the government from wherever it is to the
people at the local level. The people are able to have easy access to the various services that are
provided by the government. For example, to take a passport, one does not have to go to the capital
city before he or she can do so. The person can take the passport at the decentralized office near
him or her.
2. Efficiently addressing issues
Democratic decentralization is also supposed to efficiently address a large number of key issues
(such as the severe limitations of centralized planning and management; the over-concentration of
power, authority, and resources at the centre; the weak contact between government and local
people, including civil society and the private sector; the lack of equity in the allocation of
resources; the insufficient representation of various political, religious, ethnic and tribal groups in
the decision-making process; the inadequate exchange of information; and the inefficiency of
service delivery modalities).
 3. Allows room for taking initiative
Some problems are peculiar to some localities and therefore only local solutions can be applied to
it. The fact that there is room for fining local solutions means that the people at the local are able
to take initiatives to solve their own problems.
4. Takes some burdens off the central government
Decentralization allows for the central government to give part of its responsibility to the regional
and district authorities. Once the load of government is shared the burden that would necessarily
have been on the central government is take off and makes the burden less compounding. It also
enables quick decision making.
5. Healthy rivalry
The presence of many regions and districts and each trying to do well for its locality brings about
healthy competition among the regions and districts. When one district becomes successful with a
programme, the programme can be adopted by other regions to raise the living standard of the
people.
6. Reduces delay in policy implementation
Unlike in a centralized government where policy alterations have first to be referred to the centre,
in a decentralized system, the people can vary the policy to suit local situations as long as it does
completely deviate too much from the original policy. This helps to reduce the delay that is
associated with the implementation of government programmes.
7. Facilitates diversification:
Under decentralization, the diversification of products, activities and markets etc., is facilitated. A
centralized enterprise with the concentration of authority at the top will find it difficult and
complex to diversify its activities and start the additional lines of manufacture or distribution.
8. Valuable benefits:
Democracy may offer valuable benefits (such as improved human rights, political choice, and
government accountability) that are also the basis of the citizen’s acceptance of the existing
political order. Suffice it to say that where bad governance entrenches corruption, mis-
management, and public service inefficiency, while at the same time, undermining the capacity to
eradicate poverty and destitution.
9. Pro-poor policies
A government that is knowledgeable about, and hence responsive to, the needs of the people is
better equipped to implement pro-poor policies and outcomes than one that is politically,
physically, and mentally distant from the people.
 DECENTRALIZATION AND SERVICE DELIVERY
When properly designed, decentralization policies and programmes can impact positively on the
performance of local governance institutions, service delivery agencies, and ultimately, on local
economic growth and poverty eradication efforts. However, for this to happen, it is necessary that
the policy instruments be designed in such a way that local governments are:
• Sufficiently empowered and motivated to identify poverty reduction priorities, and to
allocate resources to pro-poor programmes;
• Well-informed about local preferences, able and willing to provide services in response to
the locally expressed preferences, and unrelenting in the search for efficiency and impact
in the allocation of resources;
• Equipped to handle and manage pressures from diverse civil society sources (compared to
central agencies, local governments face pressure from councilors and their constituents;
the demands construction and/or maintenance of feeder roads, health posts, primary school
classrooms, and other facilities that favor the poor, and for investment on large-scale capital
development projects such as trunk roads, referral hospitals, and airport terminals);
• Capable of forging and strengthening institutionalized linkages with beneficiary
communities;
• Adept at acquiring, retrieving, applying, and updating data and information on local
development issues and resources.
FISCAL DECENTRALIZATION
Financial responsibility is a core component of decentralization. If local governments and private
organizations are to carry out decentralized functions effectively, they must have an adequate level
of revenues –either raised locally or transferred from the central government– as well as the
authority to make decisions about expenditures. The specific goal of fiscal decentralization is to
confer on local governments greater responsibilities for taxation and for resource allocation. This
autonomy involves the power to levy taxation, explore independent revenue sources, and to decide
on expenditure priorities. The alternative is to prolong the dependence on the center for grants,
subventions, and other forms of transfers, and by so doing, striking at the heart of local self-
government.
Local governments may be helped to assume responsibilities for their fiscal operations and for the
improvement of their performance. Specifically, they need assistance in:
 Assessing current, and identifying potential, resources;
 Clarifying the fiscal responsibilities and obligations of local governments;
 Improving the management of transfers from the central government and improving the
management of internally generated resources;
 Optimizing revenue collection methods and processes;
 Allocating resources among different levels and/or sectors of local development;
 Developing appropriate accounting systems;
 Designing information, management and auditing systems;
 Training managers and leaders.
 DECENTRALIZATION AND MANAGEMENT OF NATURAL RESOURCES
Natural resource management refers to the management of natural resources such as land, water,
soil, plants and animals, with a particular focus on how management affects the quality of life for
both present and future generations. Natural Resources play an important role in the development
of the Economy of a Country. NRM activities specifically require the participation of local
communities for their sustainable management. Examples of these kinds of projects include:
micro-watershed management, irrigation water management, soil and water conservation,
community forestry, community-based coastal zone fisheries management, and conservation of
biodiversity. Experiences have shown that centralized "top-down" conservation is only effective
with large expenditures on enforcement or under undemocratic circumstances. As an alternative,
participation of different types of stakeholders is now considered to be essential for effective and
sustainable management and conservation of natural resource systems.
It is generally accepted that participation by local communities can be fostered by a significant
degree of decentralization. While focusing on decentralization to communities, there are
theoretical and practical arguments for higher level governments and the international community
to play an active role in NRM. Management and utilization of the natural resources has
implications for sub-national, national, and supranational territorial units, because of diverse costs
and benefits associated with how and where they are managed. The following table outlines some
of the general principles for assigning functions:

Function Assignment/Rationale

Central Government Local/Community

Specific Resource Resources (e.g., rangeland Most other resources

Management management) where the management.
minimum unit for
sustainable management is
too large, or the resource
users cannot be clearly
identified.

Implementing Should create conditions Perform day-to-day

environmental strategy
for large-scale adoption of resource management: levy
successful local efforts, user charges, enforce
also facilitate coordination compliance with exclusion
between local units. orders, manage financial
resource, etc.
Three inter-related issues need to be considered when seeking to understand the relationship
between decentralization and natural resource management:
1) Enabling policy and institutional environment
Decentralization policies have potential to encourage the evolution of community-based
institutions to manage natural resources locally. The propensity of individuals to organize
themselves into institutions for collective action will be partly determined by the expected pay-
offs. The benefits of cooperative management will, in turn, be affected by the:
 nature of property rights for resources (i.e., whether private or common, and how well-
defined)
 Legal status of community-based institutions and whether they have authority to manage
financial resources, levy user charges, enforce compliance with exclusion orders, etc.
 macro-economic conditions affecting the financial viability of small producers
 extent of rural infrastructure which affects the ease of access to markets for local producers
2) Participatory processes for establishing community-based groups
Evidence suggests that community-based groups are an effective means of managing the free-rider
problems associated with most resource management regimes. Decentralization policies on their
own, however, are not necessarily sufficient to result in the formation of these community-based
groups. Catalytic external agencies using participatory processes are also required to facilitate and
build local organizational capacity, effective community participation, and local control and
authority over decisions and resources. Important issues to consider in strengthening local
organizational capacity are:
 entry point subprojects that result in positive financial and/or economic returns to local
communities while attaining sustainable resource management goals - the incentive for
collective action
 benefits from management of natural resources must accrue quickly, locally, transparently,
and as equitably as possible given the resource constraints - providing incentives to as
many resource users as possible
 externalities and asymmetric costs and benefits associated with most natural resource
management activities means that appropriate financial incentives are required for co-
financing entry point subprojects with local communities -- improving the incentives
3) Effective operational linkages between institutional actors to facilitate large-scale
adoption of sustainable NRM practices.
There are many successful examples of using participatory processes for the formation of local
management systems. However, most of these successes only operate on a small scale. The
challenge lies in creating the conditions for large-scale adoption of successful community-based
management systems. This requires effective operational linkages between the public sector,
private sector, and community-based groups.
 DECENTRALIZATION LEADS TO DEVELOPMENT
Decentralisation is a foundation stone in the process of reform and development. It creates a wider
platform for participation in the decision-making process and works to bridge the gap between
policy makers and the community. Decentralisation is based on comprehensive structures that
include development strategies centered on a participatory approach; the needs of citizens within
achievable, objective priorities; and groundwork that combines capabilities and aspirations.
 It is assumed that decentralisation only works in stable and safe societies that adopt a
democratic approach.
 In the field of administrative development, decentralisation normally reduces bureaucracy,
reinforces transparency, emphasizes the importance of individual responsibility, and
stresses efficiency, creativity and innovation.
 In the social sphere, decentralisation helps limit the migration towards the capital, and
enhances creativity and competitiveness among geographical regions, which strengthens
social values.
 It also limits unemployment and pockets of poverty, and creates investment opportunities
in the regions.
 Devolving authority to governorates makes access to services easier and more targeted, as
they will be tailored according to the priorities and needs of the citizens, based on
comprehensive scientific field surveys.
 Municipalities need effective solutions to remove all obstacles that prevent them from
playing their role. Municipal work is expected to rely upon comprehensive studies and field
surveys to invest in capacities in accordance with objective plans and studies within each
area and at all levels.
 In order to overcome the social and economic repercussions of the political situation in the
region, it is necessary to draw up modern policies and use contemporary approaches that
adapt to the developments, take into account the needs, aspirations, abilities and
capabilities of the people in the different geographical regions and involve effective
popular participation.
 Strengths pluralism to ensure that each citizen contributes to the building on the future,
Jordan will become a model of citizenship and good governance. Citizen participation
strengthens the case of administrative reform.
 Delineate the administrative boundaries of the province and the development boundaries
of the local administration; draw up plans needed to highlight the appropriate
developmental framework; give incentives for investment and bring about a qualitative
partnership between the private sector and municipalities; include professional associations
and sports clubs in the decision-making process; invest in a municipal fund; give renewable
energy projects a leading role in developing municipalities and find the necessary facilities
to do so; give due consideration to the role of youth in municipal development work, enable
their participation in decision making and benefiting from their ideas; create an
administrative structure and give job description to municipal councils; and highlight the
role of national and cultural content in service development.
 CONCLUSION
Decentralization is the most popular concept in the contemporary period and is linked to
development and democracy. In development process, scholars and experts consider
decentralization as the most significant one because it can eradicate poverty, environmental
concerns, spatial imbalances etc. So, through the process of decentralization the people will
effectively realize the extent of activities that are being conducted by the local institutions. On the
whole, both academic community and civil society attaches considerable significance to the idea
and concept of decentralization with the development.

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