Lessons from the Water & Sanitation Sector

Stockholm August 2009

How WSS can contribute to

Decentralization, Governance,

and Local-Government capacity building

How WSS can contribute to

Decentralization, Governance,

and Local-Government capacity building

Basic service delivery is most effectively managed at a decentralized level.

One of the most visible decentralized activities (WSS including solid waste management).

Natural nexus between:

Local government capacity building

Local government capacity building DecentralizationDecentralization Basic service

delivery

Basic service delivery AccountabilityAccountability

Lessons from WSPDecentralization & Service Delivery

Decentralization trend in many countries: Political, administrative

or service delivery reasons.

WSP focus is on service delivery gains & capacity Large scale cross-cutting

(e.g. India and Bangladesh).

Issue and sector specific (e.g. Peru and Indonesia).

Lessons from WSPDecentralization & Service Delivery

Not a panacea, but decentralization can enhance service delivery Addressing institutional

roadblocks to service improvements.

Increased management capacity (local level).

Assigning roles & responsibilities.

Empowering citizens and improving accountability.

Institutions for better services•Policy frameworks•Separate policy, regulation and ops •Clearly assigned powers of levels•Multi-year planning

Fiscal & financial incentives•Outcome focused transfers•Hard budget constraint•Both revenue & expenditure reform •Accounting reform

Reforms for service delivery outcomes•Operational autonomy at local level•Performance management• Reliable information for monitoring •Citizen empowerment & participation

Strengthening decentralizationthrough improved service delivery

Roadblocks

Overlapping roles

Fragmentation

Limited autonomy

Weak citizen links

Lack of incentives

Lack of capacity

Roadmap

Decentralized decision-making

Decentralized decision-making

Fiscal FlowsFiscal Flows

Accountability to citizens

Accountability to citizens

Decentralization often highly politicized issue: • Demands sound analysis of political economy.

Get the focus right:• Systems and policies, not just training at local level.• Stay evidence based.• Practical experience needed: Issue-specific (e.g.

sanitation) or integrated or both.• Opportunities to influence other sectors.

Peer learning.Harmonization among international agencies

to support government policies.

How development

partners can

support decentralization

India WSP-SIDA support to urban reform

Context Formal decentralization, but ambiguity

of roles; higher tier control; fiscal unpredictability, rewards new assets, not maintenance.

Increased infrastructure investment but no 24/7, poor quality services.

Customers use alternative providers & coping infrastructure: the poor continue to struggle.

Severe health, environmental & economic costs.

Context Formal decentralization, but ambiguity

of roles; higher tier control; fiscal unpredictability, rewards new assets, not maintenance.

Increased infrastructure investment but no 24/7, poor quality services.

Customers use alternative providers & coping infrastructure: the poor continue to struggle.

Severe health, environmental & economic costs.

India WSP-SIDA support to urban reform

WSP-SIDA emphasis Improved transparency:

benchmark, monitor, data, disclosure.

Fiscal & policy incentives for reform.

Strategy development at all tiers. City level assessments &

planning. Provider performance

improvement. Local-level capacity building. Citizen voice.

IndiaResults of WSP-SIDA partnership

Evidence-based policy dialogue Fiscal framework global best practice &

trends in India.Helped design $3bn JNNURM grant as

fiscal support for service delivery reform.National Urban Sanitation Policy design

on basis of sector assessment & consultations.

Profile of urban priorities tangibly raised.City-level learning fed back to policy level.

IndiaResults of WSP-SIDA partnership

WSS strategy & capacity building

Citywide planning. City governance arrangements,

i.e. state-city; city-provider-customer/citizen relationships.

Financial capacity: cost recovery, municipal borrowing, accountable financial management.

Citizen engagement.

IndonesiaLocal Sanitation Planning & Capacity

Context “Big bang’ decentralization. Resource ,capacity, delivery

challenges for new structures.

Sanitation: local initiative needed to achieve change.

IndonesiaLocal Sanitation Planning & Capacity

Sanitation & decentralization Multi-stakeholder sanitation working

groups (‘pokja’). Pokia’s do assessments, sanitation

mapping and participatory prioritization.

City Sanitation Strategy (CSS) within government planning & budgeting system, not parallel process.

Integrates city planning with community-based processes.

Peru Small Towns Pilot Project

Context• Small towns: 2.001 to 30.000

inhabitants.• 650 small towns have 4.1 million

inhabitants (2003).• Intervention in 9 localities.• localities population: from 5.000

to 25.000 inhabitants.• 3 years (2004-2007).

Social Agreement

Development of new W&S management models for STPP

Sustainability of services Improved quality and coverage

PartnershipPublic-Private-Social

Consultation & Capacity Building

Process

Peru Small Towns Pilot Project

Peru Small Towns Pilot Project

2009New management models still in force in 5 communities.

Results • STPP Sector Assessments

included in the National Sanitation Plan (2006-15).

• STPP management model included in W&S Legislation.

• STPP alternative technologies proposal included in National Edification Norms.

• 6 out of 9 new models remained with new local authorities.

• 6 Peruvian specialized operators trained by the STPP and 6 from PRONASAR.

BoliviaWSP-SIDA peri-urban sanitation

Highlights Support government focus on peri-

urban areas. Entry point of peri-urban strategy for

improved sanitation in 24 cities. Include cross-cutting variable of

impact of climate change on the poor. Support of strategy addresses.

local government capacity. Responsiveness to most

vulnerable. Strategy is vehicle for harmonization

among development partners.

Bangladesh Horizontal Learning for Local Capacity

ContextRural local government (Union Parishads) needs capacity building for planning, budgeting and implementing development schemes.

Bangladesh Horizontal Learning for Local Capacity

StrategyHorizontal Learning Program is facilitated by GoB with support from WSP & partners.

Identifying existing good practices.

Peer to peer learning of good practices.

Replicating good practices.

Peer reviewing for validating replication.

Programmatic: i.e. fed into broader frameworks rather than sole pilots.

Bangladesh Horizontal Learning for Local Capacity

Results: Some Examples300 LGI representatives exposed to

good practices by 7 exposure visits.

17 Good practices replicating by 62 unions and allocated around USD 350,000 from their own ADP for replication of these good practices.

44 Unions have replicated the “open budget process” which helps bottom up planning and inter-face with citizens.

Decentralizationa means to an end

Avoid ‘ideological’ position but programmatically explore what decentralization can offer

Responsive governanceTo do the right things – deliver services consistent with citizen preferences

Responsible governanceTo do it right. Costing less and working better. Benchmarking with the best.

Accountable GovernanceTo be accountable to citizens. Legal institutional framework for in-between elections accountability e.g. citizens’ charter, recall etc…

Key programmatic considerations National & mid-term policy and fiscal

frameworks vital for enabling conditions.

Clear ownership and separation of roles vital.

Performance accountability through outcome budgeting and hard fiscal constraints.

Poor communities and customers need special attention as not all voters are users of service.

Four key modules: governance, finance, planning, service delivery.

The value of peer learning.

Tak!