Annex A: Assessing Decentralization, Decentralized Local Governments and the Local Public Sector in Puntland Annex B: Roadmap for Decentralization Annex C: Sector Milestones Abbreviations APD ILO IMC JPLG MCH MoAI MoERFWT African Peace and Development International Labour Organisation Inter-Ministerial Committee on Decentralisation Joint Programme on Local Governance and Decentralised Service Delivery Mother and Child Health centers Ministry of Agriculture and Irrigation Ministry of Environment, Rangeland, Forests, Wildlife and Tourism MOF MoF Ministry of Finance Ministry of Fisheries
Fiscal Decentralization Reform Initiatives Overall policy stance and policy effectiveness Constitutional and Legal Framework Central Govt Institutional and Regulatory Framework Local Govt institutional and regulatory framework Participation by Civil Society and Private Sector Structure and role of public sector Functional and expenditure assignments Puntland constitution put down the vision of decentralization and its functions Puntland Constitution of puntland clearly defines the role of administration in regional and district level Law No 7 provides framework of revenue and expenditure assignments. Assignment of Revenue Sources Law No 7 mandated that the districts to collect broad spectrum of tax and non tax revenue source in addition to that district revenue consist many sources include ( charges, fines, property tax. According puntland constitution and Law No 7 promotes the districts to become self sufficient According to the Puntland Constitution indicated that CG and LG have different role of taxes Law No 7 does not make clear distinction between fees for providing social and economic services and taxes mechanisms for settlement and regulation of rates and control of these. Fiscal Transfers Puntland constitution put dawn vision and mission for decentralization, which should make it possible for the region and districts to become in their provision of services. Law No 7 gives the framework for revenue and expenditure assignment between central and local governments Law No 7 mandated that the districts to collect broad spectrum of tax and non tax revenue sources The administration of public services defined in the constitution of puntland roles and responsibilities of districts and regions in terms of administrative power. Local Govt Borrowing and Infrastructure Development Article 35 of Law No. 7 provides for local and international loans if approved for the local governments No institutional or regulatory framework in place, loans by local governments are approved by Ministry of Finance for loans from central bank for infrastructure projects SWOT Analysis of Fiscal Decentralization Strengths Weaknesses - Constitution and Legal Framework in Law 7 for decentralization system -Existence of service delivery within districts - function of local councils defined in Law 7 - High priority and support through V.P and Interministerial Committee on Local Government (IMCLG) - Piloting of Decentralization in 3 Districts by JPLG provides basis for fiscal decentralization -There is no overall decentralization policy -Limited financial resources at central level with customs as main source of revenue -No developed transfer system to all districts -Lack of qualified staff in the districts -Limited financial resource and revenue collection in the districts -Inconsistent local government legislation concerning function and powers
-Working on functional assignments to district based on capacity assessments -Well developed sector assessment studies for decentralization -Districts classification based on population and other criteria -Plans to define district boundaries in next year -Development of local government association to represent interest of local governments in decentralization process -Limited use of borrowing from Central Bank to local governments with approval of Ministry of Finance - Confusion over service delivery functions between central ministries and local districts -Local elections not accomplished -District boundaries not defined and subject to political manipulation -Census not completed and no civil registry for most of population -Service delivery to nomadic populations extremely difficult - No clear definition of functional assignments - Need more inclusion of local districts and citizens in defining decentralization goals and purposes -Transfer of staffing from central ministries to local districts not defined -No strategy for scaling up decentralization to all districts Opportunities Threats Define District Boundaries Hold Local Council Elections Clarify central versus district functional assignments Need to define regional level functions and responsibilities Complete census of population Potential for increased revenue sharing from central to districts Need for additional legal framework for decentralized system in areas of expenditure and revenue assignments, and transfers based on criteria -Potential to improve revenue sources and collection capacity at District A levels, limited capacity at levels B and C. - Central ministries and other government agencies unwilling to decentralization functions and transfer funds. -there is no clear defined roles and responsibilities of tariff in both CG and LG -Potential for political instability and conflict -Reluctance of personnel to transfer to district administrations -Wide disparity in salaries and benefits across districts that cannot be equalized
Office Action Plans and Legal Framework review 2014 4.0 MOI and sector ministries Sector Ministries and Pilot Districts begin implementation of decentralization functions January 2015 4.a Government Government adopts boundary commission report and process for local council election in 2016 March 2015 4.b Government and Parliament Adopt Changes in Law No. 7 for Assignment of Decentralized Functions May 2015 5.0 MOI and Sector Ministries Inter-Ministerial Committee semi-annual meeting discussing district pilot implementation June 2015 5.a MOI and Sector Ministries Sector Ministries and MoF develop allocation formulas for transfers to districts for decentralized functions July 2015 6.0 MOI and Sector Ministries Review Development and Assess Progress on Decentralization in Pilot Districts November 2015 6.a MOI and Sector Ministries Inter-Ministerial Committee semi-annual meeting to review decentralization progress December 2015 7.0 Government Prepare and Hold for Local Council Elections 2016 7.a MOI and civil Service Commission Institutional capacity assessment and planning at district level. Staffing of each district reclassified in accordance with service delivery functions (2 phases) June 2015 / Dec. 2017 8.0 MOI Draft and promulgate by-law requesting all districts to implement participatory planning and accountability reporting process (as per PEM) December 2014 9.0 Sector ministries Sector ministries will make district level experts available to the district council for planning purposes related to their sector (or regional or central level experts according to their capacity) December 2014 10.0 Vice-President’s Office Midterm review of policy implementation December 2017 As illustrated in the table above, a meeting in the Inter-Ministerial Committee chaired by the to discuss and endorse the process will thus precede each major milestone. Following the implementation of all major devolution aspects outlined above, the Inter-Ministerial Committee will field a mid-term evaluation. The objective of the evaluation will be to take stock of the situation and the changes made and provide recommendations for adjustments. Possible revision to the approach will thus be implemented in the latter past of the roadmap period based on the review recommendations. A detailed milestone for sector decentralization is found in Annex C. Sector devolution and district classification The sector devolution process will be gradual starting with key basic service delivery sectors and moving to other sectors over time. Five sectors will serve as the basis of the first round of decentralisation reform prescribed by this policy. These are: Roads