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Decentralisation, Governance and Corruption at the Local Level

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Decentralisation, Governance and Corruption at the Local Level Decentralization Governance and Corruption AT THE LOCAL LEVEL: EVIDENCE FROM NIGERIA Supported by the UKAid through Idayat Hassan the Overseas Development Institute Kelechi C. Iwuamadi and British Academy, London DECENTRALIZATION, GOVERNANCE, AND CORRUPTION AT THE LOCAL LEVEL: EVIDENCE FROM NIGERIA Idayat Hassan Kelechi C. Iwuamadi Centre for Democracy and Development, Abuja SUPPORTED BY THE UKAID THROUGH THE OVERSEAS DEVELOPMENT INSTITUTE AND BRITISH ACADEMY, LONDON April 2018 1.Intr oduction 1.1 PROJECT OVERVIEW This case study is a Department for dependent on broad categories of quality of International Development (UK) and British governance. Academy supported project, coordinated by the Overseas Development Institute (ODI), and In partnership with ODI, this CDD study seeks carried out in Nigeria by the Centre for to unravel and clarify these contradictions Democracy and Development (CDD). The through empirical research. This study improves motivation for this study was to test theoretical the understanding of the relationships between debates around decentralisation. On the one decentralised governance and corruption, and hand, some theorists argue that decentralisation the effectiveness of anti-corruption measures at should reduce corruption through more the local level. Three broad research questions accountable and transparent local governance. guided the process of this study: Others suggest that increased autonomy and 1. What are the differences and similarities in proliferation of actors increases opportunities the prevalence, types and dynamics of for corruption. Yet on the ground, it is clear that corruption in different decentralised the rentier state system in Nigeria continues to environments, and what factors – local, dominate the political economy affairs of the national, global – are driving them? country. Other studies provide ambiguous evidence of the effects of decentralisation on 2. What are the likely effects/impact of corruption, while the reality of descriptions of different types of corruption at the local the impact of decentralisation on corruption are level, especially on issues related to 01 inequality, inclusion, voice and representation, and the capacity of state institutions to respond to the different needs and priorities of their populations? Are there groups (e.g. women, indigents, persons living with disability, ethnic minorities, etc.) that suffer disproportionately from corruption at the local level, and if so why and how? 3. What are the implications of these findings for tackling corruption in different decentralised settings, and for enhancing the effectiveness of anti-corruption measures? 1.2 Design and methodology This study had three major phases: inception, (desk research), which involved reviewing and research and synthesis. The first phase synthesising existing evidence from primary and gathered preliminary information about the secondary documents on the relationship case study countries – Nigeria and Bangladesh between decentralised governance and – within the context of multi-level corruption; and primary data collection from governance, decentralisation and corruption key respondents and informants. at the local level. The secondary data was sourced to fill the inevitable gaps in evidence provided through the The second phase was research-based and interviews and focus group discussions (FGDs). included the finalisation of the study design This also involved a rigorous desk review of the and methodology, data collection and analysis, relevant and related literature on key issues (see and the final report writing in the respective Table 1), found in scholarly articles, government case study countries. reports, media reports and publications of non- governmental organisations and that of The third synthesis phase was carried out by international organisations. ODI and the British Academy in the form of synthesis report, after the completion and From the extant literature reviewed, a range of harmonisation of the first two phases and different issues and contexts of corruption were submission of the final individual country's identified and examined where we found that there were limited attempts by scholars to link reports. It should be noted that the research multi-level governance and decentralisation design and methodology was a collaborative with corruption and anti-corruption initiatives, effort between CDD (Abuja), the Centre for particularly at the local level. Therefore, this Policy Dialogue (CPD) (Bangladesh), and the study provides an analytical understanding of ODI (London) and British Academy team. the relationships between decentralised g o v e r n a n c e a n d c o r r u p t i o n , a n d t h e Two approaches were adopted in the research effectiveness of anti-corruption measures at the component of the study: a literature review local level. 02 Table 1: Issues reviewed during the desk research Key i ssues Analysis Corruption Analysed the political and social context of corruption Types of cor r uption and Interrogated the differences and similarities in the prevalence, types and dynamics the drivers of corruption in different decentaralised environments, and the key factors - local, national, global driving them Effects of corruption Examined the likely effects/impact of the different types of corruption at the local level, especially on issues related to inequality, inclusion, voice and representation, and the capacity of state institutions to respond to the different needs and priorities of their populations Decentralisation,multi- Explored the concept of decentralisation, the nature of corruption, governance level governance and dynamics and their relationship across different levels of governance corruption Analysis of anti - Analysed the responsibilities, resources, accountabilities, organised corruption initiatives incentives or opportunities; and forms of different anti-corruption initiatives For the primary data collection, a case study vii. Local elected officials; approach was used to focus on three states viii. Appointed local officials; across Nigeria (Federal Capital Territory1- ix. Women’s groups and youth groups; Abuja, Enugu and Lagos), targeting specific x. Professional bodies and academics. respondents and key informants who provided information during FGDs and interviews. The Three key sectors – education, anti-corruption three states case studies were selected to initiatives and local government civil service, provide variation on some key governance and public finance management – formed the issues: whether the state had held local bulk of the interviews and FGDs. A total of six elections, and representation of rural and urban FGDs were conducted; two FGDs were locations. conducted per project location, and 23 interviews including key informants and group The study used largely qualitative research interviews were conducted across the three methods, including gathering data from project locations. Participants in the FGDs were primary sources through interviews with key selected from school-based management informants and FGDs with the following committees (SBMCs), civil society organisations categories of respondents (see Appendix for (CSOs) working on anti-corruption, academia, details): local government and local government i. Anti-corruption agencies officials, administration experts, anti-corruption ii. School-based management committees, agencies, the media, politicians and professional iii. Local education officials, bodies, among others. iv. Civil society organisations; v. Local government administration staff The interviewees were key people identified and (mid- and high-level cadre) and experts in chosen from elected officials and caretaker local government administration; chairpersons where applicable, local government vi. Political party members; administrators, local government finance staff 1 The Federal Capital Territory (FCT) is referred to as a 'state' because it also has area councils (which is the same as local government areas in states) that receive allocations and operate a Joint Account with the Ministry of FCT, which is run by a Minister (and not a governor like in states). 03 The case selection for this study was based on 1. State level (sub-national) anti-corruption criteria shown in Table 2. The criteria for initiatives, and Local Government Civil Service selecting the states, institutions and relevant Rule, which addressed issues relating to attitude, respondents at the local level was based on penalties, work ethics, etc.; manifestations of corruption within specific, identified local sectors and on whether the 2. Auditor General of the Local Government locality is governed by elected officials or whose role addresses issues relating to public appointed officials. Three anti-corruption finance management (PFM), especially at the measures were identified at the local level and local level; selected: 3. School-based management committees in the education sector. 04 Table 2: Anti-corruption initiative selection criteria S/N Initiative Criteria and key focus 1a State level anti- · National and sub-national anti-corruption initiatives. corruption · Sub-national and regional offices of anti -corruption agencies, and what initiatives the agencies are doing in the states, particularly at the local government level. 1b Local Government · Focus on the effectiveness and application of the Local Government Civil Service Rule Civil Service Rule in addressing issues of corruption among local government employees. 2a Auditor
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