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(Phnom
Penh, Cambodia, 19-21 June 2002) DECENTRALIZATION NEW DECENTRALIZED COMMUNE GOVERNANCE |
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The
first democratic commune councils in Cambodia were elected in February
2002. This established decentralized commune governance in Cambodia. Over
four and a half million voters elected 11,261 councilors to represent them
on 1,621 commune councils. There were 75,655 registered candidates. Each
council is directly accountable to its local electorate for its
performance, and indirectly accountable to the state for the legality of
its actions. Most
of these newborn commune councils are inexperienced, and lack capacity and
resources. However, in terms of the national Law on Commune Councils, they
have the potential to grow into strong and autonomous local governments
that can -
This
potential must be encouraged and developed through vigorous capacity
building and support from the Royal Government and its sub-national
agencies. Funding is also required to enable councils to deliver services
and infrastructure. This cannot be done without financial and technical
support from the donor community. The
nature and extent of assistance that is required is outlined in this
report. FIRST STEPS TO DECENTRALIZATION In 1996, the Royal Government established the “Seila Program”. This was the successor of the UNDP-CARERE (Cambodia Area Rehabilitation and Regeneration) program, and it drew substantially on the previous experience and enterprise of CARERE. The early phase of the Seila program was an experiment in decentralized and deconcentrated planning, financing and implementation of development at commune and province level. Informally elected Village development Committees played a major role. The
program began in a few pilot communes in five provinces in 1996, and
expanded to a total of 509 communes in 12 of the 24 provinces by the end
of 2001. Over this 6-year period, $ 75 million in domestic and external
resources were disbursed to support sub-national governance and
development. By
1999, experience in the Seila Program clearly supported the feasibility of
implementing a national decentralization policy. The
Law on Commune Councils and its counterpart, the Law on Election of
Commune Councils, were adopted in 2001. These Laws establish decentralized
commune councils and provide for their election. RESPONSIBILITY FOR DECENTRALIZATION The
Commune Councils Law established an inter-ministerial committee called the
National Committee for Support to Commune Councils (NCSC). The NCSC is
composed of major Ministries and is under the Chairmanship of the Deputy
Prime Minister. It is responsible for implementing the Commune Councils
Law and for further developing the policy of decentralization. A
Department of Local Administration (DOLA) was also established within the
Ministry of Interior. DOLA is the Secretariat to the NCSC and is
responsible for coordinating the implementation of the Commune Law and its
regulations. Implementation
started in August 2001 IMPLEMENTATION Decentralization
involves and affects —
The
NCSC at national level is responsible for directing the content and
process of decentralization and its implementation, with DOLA as the
national administrator. Particular ministries and NCSC sub-committees also
have special responsibilities. The
NCSC and its sub-committees have passed regulations and guidelines dealing
with the basic components of decentralization for commune councils, namely
-
These
regulations must be developed further. In addition, the national
legislative and regulatory framework for decentralization must be studied,
identified and improved. However,
the NCSC, its sub-committees, and individual ministries, require technical
support and assistance. Limited financial resources, incomplete support
mechanisms, and lack of capacity also severely restrain DOLA. At
provincial level, there are 24 provinces, each headed by an appointed
governor with a small staff. The
NCSC has given provincial governors responsibility to-
At
present, the provincial administrations have limited capacity, and most
have virtually no support mechanisms to give full and immediate effect to
these responsibilities. Appropriate provincial structures and systems that
will provide information, support and capacity building to commune
councils must be established and monitored. By
the beginning of this year, minimal support mechanisms and systems had
been set up in 12 provinces. Retraining and adjustments in these provinces
is now required. In 5 other provinces, support structures are being
established from the outset. Work is therefore under way to provide basic
facilities in 17 of the 24 provinces. Provincial Offices of Local
Administration will also be established. Substantial
additional resources will be necessary to achieve full coverage in 2003. Governors
must also ensure that any delegations from ministries to commune councils
are made and implemented according to the policy of the NCSC. This
requires any delegation to be accompanied by full financial and other
resources for implementation. Ministries need to design new deconcentration initiatives that clarify the role of the province, district and commune councils in implementing national sector strategies. In addition, institutional relationships between line ministries and the commune councils, and the provincial departments of line ministries and the governors must be developed and defined. Civil
servants in these structures must also be oriented and trained in their
new roles. These matters all require technical and financial support and
assistance. COMMUNE REVENUES NATIONAL COMMUNE DEVELOPMENT FUND The Commune Law set up a National Commune Development Fund as the depository and distributor for all revenues and funds from national and other sources to commune councils. Access
by commune councils to the Fund is dependent on-
In order to give commune councils some immediate financial resources, the Royal Government allocated Riels 20 billion ($5 million) to the Fund. An additional allocation of Riels 5.6 billion ($1.4 million) was made through Seila by UNDP with resources from Sweden and the United Kingdom. As
regards the distribution of funds for this year --
This is an interim measure. Capacity building and training at provincial and commune levels must be accelerated dramatically so that all commune councils can access both administration and development funds. In 2003 the number of Councils receiving both allocations will therefore increase substantially, with full national coverage being achieved by 2004. The
present levels of allocation must also be increased. They are presently so
small that they do not make a sufficient impact on commune needs. Additional
domestic and external resources for the National Commune Development Fund
are essential to ensure the delivery by commune councils of services and
infrastructure that will have some impact on reducing poverty. Meaningful
delivery will also give credibility to these democratically elected
institutions. OTHER COMMUNE REVENUES Under
the Commune Law, commune councils are entitled in principle to their own
local revenues in the form of local taxes, charges, fees and
re-imbursement for agency services. National legislation is required to
authorize and define local taxation. Substantial
local revenues are essential to ensure that commune councils enhance their
own autonomy and for local development projects. This need must be met as
soon as possible. The
feasibility and type of a diverse range of local revenues must be studied,
including revenue sharing between the levels of government, and generating
new areas of revenue. Technical assistance is required. CAPACITY BUILDING Capacity
building, training, orientation and public awareness are immediate
priorities. This involves councilors, council officials, local citizens,
key civil servants at district, provincial and national level, and the
local development community with whom the councils must interact. The
governmental environment of Cambodia has changed substantially. The first
change is from a centralized system of government to a decentralized
system of governance. The second is from a system of local administrative
policing and control to a system of local governance development and
initiative. The third is from a system of centrally appointed
administrators to locally elected councilors. New
concepts, attitudes and orientation are needed to accommodate these
changes. However,
attention must also be given to basic technical procedures and systems
that enable councils to function and achieve their objectives. During
2001, one permanent official (the commune clerk) for every commune was
trained in commune council law and administration, and was appointed to
each commune council by the Ministry of Interior. This was done in order
to provide basic administrative support to the future communes. Councils
will also be able to appoint their own staff. This
year the national training plan for councils includes-
Five
days of orientation training has already been given to all councils and
representatives of civil society on principles of local governance, and
the role of the councils under the law and the regulatory framework. Training
on the commune financial management system is currently being given to all
Councils. Training
on the commune planning will start in the second half of 2002. This
establishes a basis for participation by citizens and villages,
transparent and accountable decisions, and the mobilization of resources
for local socio-economic development. Sustainable
and accessible capacity building, training, orientation and public
awareness are a continuing need. Further programs that advance above the
present base must be developed for next year. Technical assistance and
financial support is required. COMMUNE BOUNDARIES AND JURISDICTIONS Most of the 1,621 commune councils have small populations. Also, their areas of jurisdiction were fixed by previous regimes primarily for policing and controlling their population. In contrast with the past, new commune councils are development authorities. Their jurisdictions must therefore be re-evaluated against the requirements for development, and the need to ensure effective, viable and sustainable local institutions. This is vital for the future success of decentralization. All
boundaries and jurisdictions must therefore be reviewed and adjusted
before the next election of commune councils. In the meantime, commune
councils must be given incentives to establish joint councils for common
services and public works. This
complex and sensitive exercise needs substantial technical assistance and
financial support. URBAN SETTLEMENTS In
common with other countries, Cambodia is experiencing a dramatic growth in
urbanization. It is essential that its nature, extent and impact on rural
and urban areas should be studied. An urbanization policy must be
formulated and adopted. The
capital city, Phnom Penh, requires special attention. Phnom Penh is a
municipality in terms of the Constitution and is under the jurisdiction of
a governor appointed through the Royal Government. However, the
municipality also has 76 elected commune councils within its area of
jurisdiction. A
specific strategy and program is required to avoid fragmentation and
ensure the coherent management and development of the metropolitan area. NGOs, CIVIL SOCIETY AND PRIVATE SECTOR Partnerships
and liaison with NGOs are developing at national, provincial and local
levels. In addition, commune councils are required to engage closely with
civil society and private enterprise. These
positive steps will provide the basis for longer-term collaboration and
must be developed further. PRESENT
SUPPORT A
number of donors and agencies including the ADB, GTZ, Konrad
Adenauer, and UNDP, are providing crucial policy guidance, technical
support, workshops, training and seminars at all levels, and additional
support to DOLA. Seila
and the Partnership for Local Governance Program also play an essential
role in supporting the NCSC, its member Ministries and DOLA, changes in
institutional responsibilities at provincial level, and the implementation
of national training programs. The
second five-year phase of Seila for 2001-2005 will channel nearly $
100 million from donor partners to 7 Ministries, 17 provinces and
1,200 communes from 2001-2005. Notwithstanding this support, implementation is constrained by limited technical and financial resources, lack of capacity and the virtual absence of support mechanisms at all governmental levels. International support is essential TARGETS FOR THE NEXT FIVE YEARS The
Royal Government intends to reach certain goals for decentralization by
the beginning of the second mandate of commune councils in 2007. In
general-
More specifically,
Finally,
This
year, in the light of current experience, the NCSC will formulate a
program for implementation during the next five years. Donor partners are
encouraged to participate in the formulation of the program and to arrange
their future assistance to decentralization consistent with this
framework. This will permit better use of internal and external resource BASIC FINANCIAL REQUIREMENTS COMMUNE DEVELOPMENT FUND $22.7
million a year is needed to provide $ 14,000 for each commune council. For
the three years 2003-2005, this amounts to $68 million. The Royal Government will allocate a percentage of domestic revenue to the Commune Fund, rising from the current 1% in 2002, to 2% in 2003, 2.4% in 2004 and 2.8% in 2005. For the three-year period, 2003-2005, this amounts to approximately $ 34 million or half of the total requirement. A
total of $ 34 million is required from external donors. Approximately $20
million has either been secured or is under formulation by Seila. An additional $
14 million is therefore required. COMMUNE COUNCIL OFFICES AND EQUIPMENT Commune
councils need offices and basic office equipment as a focal paint for
conducting business, preparing documentation, keeping basic records etc. Offices
are essential in at least 800 or 50% of the communes. At $ 15,000 for each office building the total requirement is $12
million. Basic office equipment for 1,000 commune councils at $500 per
office requires $ 500,000. Communications are also essential. In many deep rural areas, telecommunications do not exist. Radio equipment is essential for approximately 1,000 communes. At $ 500 per radio set and antennae, a total of $ 500,000 is required. Total support needed for basic office
premises, radio communication and
office equipment to a selected number of commune councils is $13 million. PROVINCIAL
PROGRAM SUPPORT Substantial responsibility for training, capacity building, monitoring and support to councils rests with the provincial governors. The governors’ offices are therefore a crucial focal point for implementing and sustaining decentralization, as well as ensuring proper deconcentration to commune councils. Financial
support is needed for training, capacity building, equipment and
operational costs in the offices of the governors so that they can meet
their minimum obligations. Total basic requirements amount to $5 million a year. Domestic resources of $1.5 million will be allocated. External resources will be needed at $ 4.5 million a year, or $ 13.5 million in total. Approximately $ 9 million has already been secured, leaving a balance of $4.5 million. $4.5 million is therefore needed for
provincial support to communes. NATIONAL PROGRAM SUPPORT Support
to the NCSC, its Ministries, and DOLA has high strategic value and impact $
2 million a year (or $6
million for 2003-2005) is required. The
National Budget will contribute $1 million
and $5 million is needed from external sources. This does not include
technical cooperation by a variety of donors. Approximately
$ 1.5 million has already been secured leaving a balance of $3.5 million. $3.5
million is therefore required CAPACITY BUILDING Capacity
building, training, orientation and public awareness for councilors,
council officials, local citizens, and key civil servants will provide the
foundation for the development and sustainability of decentralization. Intensive
and continuing programs will be essential for the next five years. $1.5
million is required each year, or a total of $7 million for the next five
years. FINANCIAL
SUMMARY |
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