Presented this powerpoint as part of the requirement of the Paper Development Workshop organised by the Brunei Postgraduate Society on the 10th September 2016. Attached is also the draft abstract submitted (see slide 22) for the event.

1. The Devolution of
Powers of BSB
“Would the introduction of the Mayoral System
be the next best step for BSBs City Development?”
by
Abdul Malik Omar
Presented this powerpoint as part of the requirement of the Paper Development Workshop organised by the
Brunei Postgraduate Society on the 10th September 2016. Attached is also the draft abstract submitted (see slide 22) for the event.

2. Aims and Objectives
• Personal background.
• Raise awareness on the importance of cities in
economic development.
• Showcase a glimpse of BSBs history, background, and
governance.
• To analyse the strengths & weakness of the current
governance of BSB with reference to case studies.
• To make a case for devolution.
• A case of for and against devolution by the means of
introducing the Mayoral system of governance for
BSB.
• Critically analyse the London Devolutionary Model of
Governance and its implications to BSB’s
devolutionary journey.
• Conclusion and limitations.

3. Personal background
• MSc Candidate at the London School of Economics
taking the course MSc in Local Economic
Development (2015/2016).
• Specialising in Economic Development, Cities, and
Innovation.
• I got a Distinction for my GY407 Globalisation,
Regional Development, & Policy with an essay topic
entitled, “Devolution in the case of London for United
Kingdom”.
• An Op-Ed columnist in Borneo Bulletin, Brunei’s
national newspaper with topics focusing on
economic development, cities, innovation. I also
blog at amotimes.com.
• Always been and always will be a pro-business and
pro-economic person.

4. Importance of Cities
• The World Bank attributes that “80% of global growth” are
generated in cities (World Bank, 2015).
• Cities will rule the economy of the future, not nations (Storper,
2013). Contrast the case of Shanghai and Inner Mongolia.
• 57% of the world’s population lives in urban areas and is set to
increase to 66% by 2050 (United Nations, 2014).
• Cities bring opportunities for young people to ‘live, work, &
play’.
• It enables small nation-states to ‘punch above its weight in the
world economy’ (e.g. such as Singapore, Luxembourg)

5. History of BSB
• The birthplace of the Brunei polity with official history
stretching back to the first settlers in the 13th-14th
century.
• Bandar Brunei as the heart of empire. Has Kota Batu and
Kampong Ayer. Kota Batu, translated as ‘Stone Fortress’,
were fortifications on top of a hill built by Sultan Sharif Ali
with help from the Chinese community. It was equipped
with canons and high walls to defend our territory.
• Brunei’s Kampong Ayer was then the Venice of the East.
So strong was the commercial influence that the Padian
system persisted up to the 20th century.
• When the British Empire made us her protectorate, Britain
built up institutions in the city. The development
intensified after the war with great vigour. Parliament
(Lapau), administrative centre, schools, and many of
these institutions were set up.

6. Background of BSB
• BSB has the size of 100.36 Sq km. Over 320k of the 450k
population lives in the urban areas. That is 79.89% of the
population up from 65.8% in 1990! (World Bank, 2016)
• In 2010 or even earlier, the ‘city in the garden concept’
initiative as set out in the BSB Masterplan 2035 was
launched.
• Under the tenure of Pehin Dato Hj Adanan (former MoHa
Minister), MoHas commissioned the HoK group to set up
the visionary framework, which included Jones Lang
LaSalle, Meinhardt, MVA and Brunei firm OWMP
International in the team (Brunei Times, 2010).
• Current status (as of September 2016): Developments
taking place include the active reallocation of Kampong
Ayer residents, building up of the Temburong mega-
bridge, & development of a recreational park next to
Yayasan.

7. BSB Governance (1)
• Managed by BSB municipal department. Heading the
department is the Chairman and the Board of Directors
(made up of public sector and business leaders)
• Some of the most important actual and perceived
function:
• To approve business license and permits to operate
stalls or businesses in the city (may have changed
by now with DARe)
• To make BSB a clean, safe, and pro-business
environment (Brunei Times, 2014).
• Despite this, MoHa has de-facto authority to reverse or
change the decisions made by BSB municipal
department.
• Resources are channeled from MoHa every year.

8. BSB Governance (2)
Strengths
• MoHa has de-facto authority over BSB
Municipal Board to decide matters
relating to the city.
• Quite effective in creating much
needed, politically charged changes
relating to the redevelopment of the
city, i.e. reallocation of Kampong Ayer
residents.
• Sometimes these decisions could be
made overnight.
Weaknesses
• The Chairman and Board has little or
direct accountability, transparency, and
openness in regards to the decisions
made that would affect the public.
• This makes it harder for the people
(especially businesspeople) to raise their
concerns pertaining the wrong decisions
being made.
• The bureaucratic and multi-level cross
departments makes it hard for BSB
Municipal Board to make its own decisions
without affecting other MoHa departments.

9. Case Studies
• Tamu Kiangeh, Pasar Gadong,
Tungku Beach
• Study how the decisions made
by BSB Municipal Board affect
these entrepreneurs through
their sudden decisions.
• Many questions to be asked:
1. Were the people happy or
dissatisfied?
2. How do the people appeal for
changes?
3. How could they voice out their
concerns?
4. How has the decisions
affected their businesses?
5. What could be improved?

10. Case for the devolution of
powers for BSB?
• The paper shall study the effects of the devolution of
BSB Municipal Board through the introduction of the
Mayoral system of governance vis-a-vis the London
Devolutionary Model.
• Using Donahue (1997) & Rodriguez-Pose & Gill (2002)
framework, the paper shall analyse three facets of
devolution namely legitimacy, authority, and resources.
• Devolution refers to the decentralisation of these facets

11. Devolved Governance of
BSB: Questions
1. Legitimacy
• Appoint the Mayor by MoHa or by direct elections? What would the consequences be?
• Would it enhance accountability for the Mayor (Chairman) to do his duties well without fan or favour in the
name of pursuing the development of the city for the greater good?
2. Authority
• What type of authorities (responsibilities) or power would the Mayor be given? Would he possess
statutory or lobbying power only, or direct power to manage the affairs of the city?
• Consequently what type of authorities or responsibilities should BSB Municipal Department absorb or/
and discard? Should it retain or discard its duties in cleaning; or should it secure direct power over
certain divisions from the Ministerial body?
3. Resources
• How much resources should the BSB Municipality be allocated too? A certain fixed percentage of MoHa
budget or something more flexible?
• Would there be independent third-party audits who can publicly publish the accounts of the expenditures
and gains?

12. The case for & against
devolution
For
• Improved innovative and inclusive policy-
making
• Promotes a mixed bottom-up, top-down
approach in governing the city
• Make office-holders more accountable to the
public
• Reduce the burden of duties for MoHa
• Improved fiscal returns in public spending
• Increased legitimacy
• Reduce the wrong decisions being made
• Increase the efficiency for Brunei to produce
jobs & economic growth
Against
• Decision stagnation because of endless
negotiations with different parties with
various different interests that may impede
the realisation of the city’s objectives
• Rise of the wrong people elected into
office.
• The fear of introducing elections due to the
uncertainty it may introduce
• Potential reversal of policy because of the
weak capacity for the institutionalisation of
reforms. Upper management may change,
and hence the idea may be discarded
• “Strategies of Waste”

13. London Devolutionary Model of Governance
• Problems faced by BSB as set out in the case study is
minuscule to the problems faced by the United Kingdom in the
1990s
• Reforms were key to enhance London’s status as an
international city, so needed to enable the United Kingdom to
‘punch above its weight in the global economy
• Tony Blair and the Labour party swept to power in 1997 &
following a local referendum held on 7th May 1998, which
resulted in a large ‘yes’ vote, the government passed the
Greater London Authorities Act (1999).
• It resulted in the establishment of the Greater London
Authority, the London Assembly and the Mayor of London.
• The Greater London Authorities Act has since been updated
(2007)

14. Gauging the London Devolutionary
Model of Governance over the years
Then (2000-2015)
1. Legitimacy
• Through elections. Firstly,
won by independent
candidate Ken Livingstone,
(then Boris Johnson)
2. Authority
• At first he is given limited
power. Except for lobbying
abilities.
3. Resources
• Resources were almost
controlled by the ruling
government. If Ken did not
listen, he could not get the
resources.
Now (current)
1. Legitimacy
• Can be gauged by the increased
voting participation of the people
of London. Current Mayor is
Sadiq Khan
2. Authority
• The lobbying power has since
been increased. It is in tandem to
the increased responsibilities it is
given over key departments
(Transport for London).
3. Resources
• The city now have certain powers
to raise money through its directly
controlled departments it has
under its control, as well as from
government.

15. Devolution of BSB through the
London Devolutionary Framework
Potential solutions
1. Legitimacy
• Elect Mayors (Chairman) and
through direct elections. The
candidate with must have a strong
manifesto to secure votes to win.
2. Authority
• To be given limited power or actual
authority over other ministerial
departments. But he must be given
the power to lobby so as to shape
public opinion on what key
decisions should be taken by the
government.
3. Resources
• Have MoHa control the entire
resource, so that the Mayor would
be bound to listen to upper
management. Also avoids
‘strategies of waste’
Potential future results
1. Legitimacy
• More inclusive and active participation
form the public to contest in the elections
and to vote people whom they trust to
govern the city. If they do not like him,
simply kick him out and have him
replaced by someone more competent.
2. Authority
• Only give more power once the Mayor’s
loyalty to the nation-state and city is
secured. Once then the Mayor can be
given more executive authorities over
city-related functions controlled by other
ministries
3. Resources
• Raise revenues from its own subsidiaries
or through taxes.
• Have its own separate budget allocated
through the LegCo council

16. The case for & against
devolution
For
• Improved innovative and inclusive policy-
making
• Promotes a mixed bottom-up, top-down
approach in governing the city
• Make office-holders more accountable to the
public
• Reduce the burden of duties for MoHa
• Improved fiscal returns in public spending
• Increased legitimacy
• Reduce the wrong decisions being made
• Increase the efficiency for Brunei to produce
jobs & economic growth
Against
• Decision stagnation because of endless
negotiations with different parties with
various different interests that may impede
the realisation of the city’s objectives
• Rise of the wrong people elected into
office.
• The fear of introducing elections due to the
uncertainty it may introduce
• Potential reversal of policy because of the
weak capacity for the institutionalisation of
reforms. Upper management may change,
and hence the idea may be discarded
• “Strategies of Waste”

17. Case Studies
• Tamu Kiangeh, Pasar Gadong,
Tungku Beach
• Study how the decisions made
by BSB Municipal Board affect
these entrepreneurs through
their sudden decisions.
• Leads to three questions:
1. Are the people happy or
dissatisfied?
2. How do the people appeal for
changes?
3. How can they voice out their
concerns?
4. How has the decisions
affected their businesses?
5. What can be improved?

18. Conclusion & Limitations
• BSB is a key component in nation-building. Effective management of the city is vital in developing the nation-
state
• The case studies of Tamu Kianggeh, Pasar Gadong, & Tungku Beach shows how it is vital to improve the
governance of the city
• Providing an alternative form of governance, which is through devolution of legitimacy, authority, and resources
through the introduction of the Mayoral System vis-a-vis the London Devolutionary Model of Governance.
• Critically analysed the Mayoral System of Governance (based on the London model) as a potential solution to
fix the city in its objectives to achieve development
• Study the London Devolutionary Model of Governance to BSB and its implications to the development of the
city
• Limitations:
1. See if I can take a PhD so I can work on this study! Like to publish a paper though. Not sure how!
2. Not enough time or data (researched about this two days ago) leading to potentially generalisations of issues.
3. Areas that were not taken into account (but must!): The London Assembly and Greater London Authority.
4. Didn’t focus much on methodology

19. Would the introduction of the Mayoral System
be the next best step for BSBs City Development?

20. Thank you!

21. QUESTION TIME!

22. Bibliography
Academic references:
• Donahue, J. D. (1997). Tiebout? Or not Tiebout? The market metaphor and America's devolution debate. The Journal of Economic Perspectives, 11(4),
73-81.
• Rodríguez-Pose, A., & Gill, N. (2002). The Global Trend Towards Devolution and Its Implications/. London School of Economics Department of
Geography and Environment.
• Storper, M. (2013). Keys to the city: how economics, institutions, social interaction, and politics shape development. Princeton University Press.
Online references:
• World Bank (2016) “Brunei’s Urbanisation Rate” http://www.tradingeconomics.com/brunei/urban-population-percent-of-total-wb-data.html
• World Bank (2016) “Urban Development Overview” http://www.worldbank.org/en/topic/urbandevelopment/overview
• United Nations (2014) “World’s population increasingly urban with more than half living in urban areas” http://www.un.org/en/development/desa/news/
population/world-urbanization-prospects-2014.html
Articles:
• Omar, A M. (2016) “Public buses as the centre of our transport nervous system”: http://borneobulletin.com.bn/public-buses-centre-transport-nervous-
system/ Published in August 2016.
• Omar, A M. (2016) “Education an investment for national development”: http://borneobulletin.com.bn/education-investment-national-development/.
Published in July 2016.
• Omar, A M. (2016) “Approaches to developing BSB.” http://borneobulletin.com.bn/approaches-to-developing-bsb/ Published in July 2016
• Omar, A M. (2016) “A four-point solution to resolve Tungku Beach issue” http://borneobulletin.com.bn/a-four-point-solution-to-resolve-tungku-beach-
issue/
• Omar, A M. (2016) “Revive Gadong night market to boost vendors, jobs” http://borneobulletin.com.bn/revive-gadong-night-market-boost-vendors-jobs/
Legislation
• Greater London Authorities Act (1999) http://www.legislation.gov.uk/ukpga/1999/29/pdfs/ukpga_19990029_en.pdf
• Greater London Authorities Act (2007) http://www.legislation.gov.uk/ukpga/2007/24/contents
Pictures:
• From various notably from Brunei Times and Borneo Bulletin

23. Abstract
The Devolution of Powers of BSB City: Would the introduction of the Mayoral System be the next best step for BSBs
City Development?
by Abdul Malik Omar, MSc in Local Economic Development Candidate at LSE (2015/2016)
Bandar Seri Begawan, or formerly known as Bandar Brunei, has been the birthplace and centrepiece of the Brunei polity. Since the first Sultan up to the
modern day, the place has been and will continue to be a key point where the destiny of the nation-state and its holdings would be governed and
determined. As a city, it also has the important objectives to secure the livelihood of the peoples of Brunei, as well as to act as a key component in
economic development that would enable the nation-state to punch above its weight in the global economy. Today, BSB faces an increasingly complex
environment in the pursuit of these goals. The growing problems reflected by the Tamu Kianggeh and Pasar Gadong issues recently, for instance,
highlight- ed the need for decision- and policy-makers to improve the quality of governance in the city. This paper shall analyse and provide
recommendations for an alternative form of governance by introducing the Mayoral system as that potential solution. Using Donahue's (1997), Andrés
Rodríguez & Nick Gill’s (2003) works on devolutionary analysis, this paper shall study devolution of powers of BSB city through three key lenses,
namely, (1) legitimacy, (2) authority, and (3) resources. The research questions are as follows: Would the mayoral system enhance the legitimacy of the
BSB department and make it more accountable to the people it serves? What authorities (or responsibilities) shall the mayor and the department be
entrusted to in managing BSB effectively? Finally, how much resources should be allocated to the mayoral office ever year to run its operations and how
would the arrangements of these processes be like? The methodology would be a semi- structured interview of thirty people; fifteen participants from the
BSB Municipal department and another fifteen from the general public. There is also a short case study of BSB itself to provide awareness on the city’s
history and its importance to the Bruneian economy in the realisation of ‘Vision 2035’ and the ‘Gar- dens in the City’, as set out in the BSB Masterplan
2035 concept. Some of the potential findings and conclusions include how people may not be open to the idea of the mayoral system given the lack of
understanding of how the inclusive form of governance actually works. Second, there is a fear of change inherent in the BSB municipal body given the
past issues (Tamu Kiangeh, Tungku Beach, & Pasar Gadong) that make them to potentially refuse the idea of implementing the mayoral system. To
augment these problems, I propose a solution based on the London devolutionary model, where the mayoral system was successfully introduced through a
con- trolled, step-by-step experimentation process by the Labour Government with the passing of the Greater London Authority Act (1999). I will further
elaborate the London devolutionary model in this paper.
Keywords: Cities. Devolution. Economic Development. BSB. Brunei. Inclusive Development. Governance. BSB Masterplan. Vision 2035. London.
JES Classification: F63. P25. R38.