Day2 kyoko comparative public policies in perspective (final for may 4) april 23_en.


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Day2 kyoko comparative public policies in perspective (final for may 4) april 23_en.

  1. 1. EXECUTIVE PUBLIC POLICY TRAINING PROGRAM FOR VIETNAMESE GOVERNMENT OFFICIALS Comparative Public Policies in Perspective: Decentralized Service Delivery Kyoko Kuwajima JICA Senior Fellow Lee Kuan Yew School of Public Policy National University of Singapore 1
  2. 2. Outline for today 1. Definition and Concept of Decentralization 2. Common but Diversified Decentralization – Cases of East Asian Countries 3. Long-term Process of Decentralization– Case of Japan 2
  3. 3. 1. Definition and Concept of Decentralization • Decentralization = the transfer of power from central government to lower levels of government, including responsibility for planning and management of various government functions, as well as resourceraising and resource allocation. Administrative Decentralization Political Decentralization Fiscal Decentralization
  4. 4. Types of Decentralization (1) Administrative Decentralization • Deconcentration = the transfer of authority and responsibility to central government officials such as governors or district officers, and officials located at local branches of central ministries • Delegation = the transfer of authority and responsibility from central government to subnational governments or specified agencies
  5. 5. Types of Decentralization (2) Political Decentralization • Devolution = the transfer of functions or authority from central government to subnational governments that are governed by locally elected representatives. Fiscal Decentralization • Financing mechanisms that underpin all forms of decentralization = the transfer of funds, and sometimes revenue-raising powers from central government to subnational governments 5
  6. 6. 2. Common but Diversified Experience - East Asian Countries General Trend of Decentralization • • • • Philippines 1991Indonesia 1999Vietnam (1996- ) 2004Thailand 1997- Fast Starters: Philippines and Indonesia Incrementalists: China and Vietnam Cautious Mover: Thailand and Cambodia (World Bank (2005) East Asia Decentralizes) 6
  7. 7. Diversities of Vertical Organization Country Levels of Subnational Governments Indonesia 3 Philippines 4 China Vietnam 4 3 Cambodia 2 Thailand ( 3) Provinces (33), Special Regions (2) & Capital; Local Governments: Cities and Districts (440); Villages Provinces (79); Cities (112); Municipalities (1496); Villages (41944) Provinces(20) and Municipalities (4); Provinces(58) and Municipalities(5); Districts (599); Communes (9,082) Provincial Administration; Elected Communes and Sangkat (1621) Provincial Administration; Elected Provincial(75), District (811) and Subdistrict Source: World Bank (2005), CLAIR/COSLOG (2009) Average population of first-tier subnational governments (million 2002) 7.0 0.5 40.0 1.3 0.8 0.5 7
  8. 8. Diversities of Decentralization Policy Country Policy Orientation Indonesia Focus on substantial devolution to cities and districts; limited formal role at lowest levels; more emphasis on the role of higher levels since 2004 Philippines Focus on devolution to subprovincial units, but provinces pay a significant role China Main focus on deconcentration to provinces and large cities, although lower levels have larger public expenditure role and elements of de facto devolution have emerged in some areas; provinces have considerable regulatory control over lower levels Main focus on deconcentration with stronger role for provinces, Vietnam including regulatory control over subprovincial governments that have been allocated rights over specific functions, approaching devolution Cambodia Hybrid: with deconcentration to provinces and devolution to communes; commune system given greater emphasis but provinces significant in terms of public expenditure Hybrid: historical focus on deconcentration to provinces and districts Thailand and shift towards devolution to local institutions at levels of municipalities, districts and subdistricts since 1997 8 Source: World Bank (2005)
  9. 9. Diversities of Capacity (Access to Finance) Local Collection Country Indonesia Philippines China Vietnam Cambodia Thailand Ownsource revenues ○ ◎ ◎ ○ ○ ○ Shared taxes ◎ ◎ ● ◎ ○ ◎ Inter-governmental Transfer Unconditional transfers ● ● ○ ◎ ● ◎ Conditional transfers Informal revenues ○ ○ ● ● n.a. ◎ ◎ ◎ ● ◎ ● ○ Note: ○:Low, ◎:moderate and ●:high refer to the rough proportion of total subnational revenues attributable to each revenue Source: World Bank (2005) and other sources 9
  10. 10. Issues behind decentralization (1) • Prodemocracy movement after the collapse of government more favored subprovincial levels Indonesia: rivalry between central political elites and provincial elites led to focus on districts Philippines: call for grassroots “people’s power” led to devolution to multiple levels • Economic reform administrative/fiscal focus China: need to manage large and diverse areas; no formal policy and variation of treatment Vietnam: balanced growth thr. public adm. reform 10
  11. 11. Issues behind decentralization (2) • Change in political support progress stop-and-start Thailand: 1997 Constitution and comprehensive plan; favored more role of centrally appointed governors under Thaksin administration Indonesia: concern over loose-end led to the return of more role of provinces by Law 32 • Inconsistencies and unclear division of functions and authority Philippines, China & Vietnam : conflate the accountability of local staff 11
  12. 12. Issues behind decentralization (3) • Limited authority over resource-raising and allocation and strong central civil service control Philippines: limited grant remain for non-wage cost China, Indonesia: tendency of charging illegal extrabudgetary fees:  tendency of non-transparent staff payment  lack of incentives for lean management • Limited capacity of local bodies General tendency: Insufficient coordination between planning and budgeting; poor collection Thailand, Cambodia: cautious progress
  13. 13. Triangle Strategy for Decentralization Mission - National Goal - Problems to be tackled Institutional Design - Rules Capacity of Government - Accountability Relations - Political Support - Financial Resources - Operational Capacity - Attitude
  14. 14. 3.Long-Term Process of Decentralization – Case of Japan • Modern Nation Building (1868-): Deconcentration and Delegation for achieving National Minimum • Post War Period (1945-): Delegation for social and economic development • Decentralization Reforms (late1990s-) Devolution for dealing with more diversified social needs 14
  15. 15. Modern Nation Building (1868-) Priorities of Meiji Government: • Building of Prosperous and Strong State Aiming at National Integration & Industrialization Achieving “National Minimum” through Standardized Provision of Service Delivery • Centralization and Deconcentration with Elaborate Local Network Local Gov’t System created as effective vehicle Tasks delegated and controlled by M. of Interior 15
  16. 16. Acting as General Branch Offices of MOI (47) Delegation from Prefectures 16 Source: Kengo AKIZUKI (2005)
  17. 17. Post-war Period (1945-) Thrusts of New Constitution : • Principle of Autonomy Complete autonomy in prefectures Dismantling of Ministry of Interior Establishment of Local Autonomy Law (1947-) • Succeeding Delegation from central government to prefectures Concern over local management capacity Retaining control and supervision by upper level of governments • Resulted Remarkable Economic Growth 17
  18. 18. Contributions to National Development Plans by centralized inter-government system Industrial Development Export Promotion Advanced Social Services Improving Living Standard (Urban Development) 18 Source: Kengo AKIZUKI (2005)
  19. 19. Post-war Local Government System to ensure integrated national development Role of Planners Central Ministries Decision making authority is reserved by central government : implementation is controlled and intervened by national policy Delegation Subsidies Personnel Exchange Program Role of Implementers 19
  20. 20. Overlapped functions (Infrastructure, education and health) Overlapped tax bases (personal income/inhabitant/corporate income) Fiscal equalization through local allocation tax and subsidies) 20 Source: Kengo AKIZUKI (2005)
  21. 21. Decentralization Reforms since the late1990s Changing Environment since the 1990s •Economic globalization and increasing external threats •Increase of ageing population •Persistent government debt To deal w ith m ore diversified social needs m ore stringently based on m ore local autonom y • Comprehensive Decentralization Law (2000) Local Autonomy (abolish delegation) • Local Administration Reform (adoption of NPM, cooperation among local 21 governments)
  22. 22. Triangle Strategy for Decentralization: case of Japan Mission National Integration  National Economic Growth Meeting diversified social needs Institutional Design Deconcentration Delegation and Capacity development for local governments More local autonomy Capacity Fiscal equalization by subsidies and grants Building Capacity through exchange Fiscal moral hazard