Decentralization


Almost all countries in Europe and the CIS (ECIS) have attempted to decentralize, accumulating both favorable and unfavorable experiences with regard to reforms. Some important issues are common in the region.
 
First, most countries are implementing reforms on an ad–hoc basis, and the legal framework for decentralization is incomplete or inconsistent.
 
Second, fiscal decentralization remains very much a work in progress in the ECIS region. Fiscal decentralization reform is characterized by the following: one-off or piecemeal approach; lack of logical sequencing; unclear assignment of expenditure responsibilities between the different tiers of the government; ineffective local tax management; inadequate fiscal equalization mechanisms; and inadequate regulation of local borrowing.
 
Third, attracting and retaining professional and qualified employees in local governments continues to be a challenge in the ECIS region. Local governments are expected to carry out decentralization, taking on new responsibilities and providing quality services. However, personnel management and employment conditions at the sub-national levels have long been neglected.
 
The Decentralization and Local Governance Sub-practice provides services in the areas of:
  • Support to national actors for the elaboration of policy, and an appropriate regulatory framework for decentralization;
  • Support to local civil service reform and human resource management systems at the local level;
  • Increasing the knowledge and capacity of national and sub-national actors to implement fiscal decentralization policies; and
  • Capacity development for local government associations to strengthen their role as partnership institutions, in order to help local authorities defend their interests and enhance their capacities to provide better public service delivery and promote local development.