Capacity development for governance and decentralization

Capacity building for state actors, civil society, &cetera
 
 

The past decade has seen a growing interest in the role of governance in stimulating development and poverty reduction. Sustainable economic and social development and good governance are indivisible. Governance is the system of values, policies and institutions by which a society manages its economic, political and social affairs through interactions within and among the state, civil society and private sector (UNDP, 1997). Governance supposes a change in management practices towards multi-actor configurations and joint action, promoting participatory strategies and negotiation between those groups. The challenge for many societies is to create a system of governance that promotes, supports and sustains development to realise the highest potential of everyone and the well-being of all, thus eliminating poverty and all other forms of exclusion.

Democratic decentralization, as well as other public sector reforms change governance relations at all levels. Organisationally, decentralisation refers to the restructuring of authority towards a system of co-responsibility between governance institutions at the central, regional and local levels according to the principle of subsidiarity, thus increasing the overall quality and effectiveness of the governance system, while increasing the authority and capacities of sub-national levels and the empowerment of local institutions.

Democratic decentralisation is a complex process, not achieved overnight and prone to provoking conflict as various interests are at stake. It should be accompanied by devolution and deconcentration of responsibilities, rights and resources, in particular with respect to ministries responsible for health care, education, infrastructure and finance. It requires capacity building at all levels, transformation of governance structures as well as of management culture.

Improved governance will require not only strengthened central and local governments but also the involvement of other actors from civil society organizations and the private sector in partnerships with government at all levels. Building capacity in all three domains of governance - state, civil society and the private sector - is critical for sustaining sustainable social and economic development. Decentralization reforms provide in particular opportunities for establishing new forms of more horizontal collaboration and accountability. Local government may create a forum where (customary) authorities, community-based organizations, NGOs, the private sector and central government branches meet, interact and work together. Informal or formal rules and mechanisms may be established that distribute roles and responsibilities among those actors. As this is new “territory” for most stakeholders, capacity development approaches are needed to facilitate multi-stakeholder processes, learning and institutional innovation at the local level.