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Libya Local Governance Forum Public Disclosure Authorized Public Disclosure Authorized PROCEEDINGS OF THE LIBYA LOCAL GOVERNMENT Public Disclosure Authorized FORUM Tunis, Tunisia September 14–16, 2019 (Revised for Publication: January 2021) Public Disclosure Authorized Editors Michael G. Schaeffer Maroua Lassoued Zied Ouelhazi PROCEEDINGS OF THE LIBYA LOCAL GOVERNMENT FORUM Tunis, Tunisia September 14–16, 2019 (Revised for Publication: January 2021) Editors Michael G. Schaeffer Maroua Lassoued Zied Ouelhazi Table of Contents Foreword, Minister of Local Government . vii Letter of Welcome, World Bank Country Representative . viii Preface . x Acknowledgements . xii Agenda, LGF Proceedings . .. xiv List of Participants . xvii Summaries of Papers . xix Part I. Introduction: Purpose, Scope and Context .................................................... 1 Paper 1 . Toward A Strategic Approach for Libya Public Sector Reform . 3 Michael Christopher Jelenic – Public Sector Specialist, World Bank Michael G. Schaeffer – Libya Country Representative, World Bank Paper 2 . The Libya Fiscal Decentralization Dialogue . Entering the 2020s . .. 13 Robert D. Ebel – Public Sector Consultant. World Bank Michael G. Schaeffer – Libya Country Representative, World Bank Paper 3 . Administrative Aspects of Local Governance: Definitions and Distinctions . 29 Maroua Lassoued – Public Sector Governance Consultant, World Bank Paper 4 . History and Evolution of the Subnational Government System of Libya . 39 Rani Daoud – Deputy Head of Libya Programme, German Agency of International Cooperation (GIZ) Part II. Framework and Principles ................................................................... 49 Paper 5 . Libya’s Fiscal Architecture: An Intergovernmental Perspective . 51 Robert D. Ebel – Public Sector Consultant, World Bank Zied Ouelhazi – Public Finance Management Specialist, World Bank iii iv Paper 6 . Sorting Out Expenditure Roles Among Types of Governments Libya . 63 Robert D. Ebel – Public Sector Consultant World Bank Paper 7 . Managing Decentralized Expenditures: The Deconcentration Variant . 83 Hussam Alzahrani – Visiting Senior Government Specialist, World Bank Paper 8 . Functional Assignment: Core Elements of the Decentralization Process . 91 Ulrich Leffler-Franke – Senior Decentralization Advisor, German Agency For International Cooperation (GIZ) Paper 9 . Intergovernmental Fiscal Concepts and Best Practices: Lessons for Libya . 99 Zied Ouelhazi and Michael Schaeffer – World Bank Paper 10 . Linking Local Priorities to National Investment: Context and Challenges . .. 113 Dawoud Almassri and Peter Rundell – United Nations Development Programme (UNDP) Paper 11 . Subnational Government Revenue Mobilization in Libya . 117 Mihaly Kopanyi – Municipal Finance Consultant, World Bank Part III. Sector Decentralization ..................................................................... 137 Paper 12 . Government Employment and Human Resource Management in Libyan Public Administration . 139 Yusser Al-Gayed – Public Sector Consultant, World Bank Paper 13 . Service Delivery In a Decentralized Environment: Perspectives on the Health Sector, the Case of Libya . 149 Zied Ouelhazi – Public Finance Management Specialist, World Bank Paper 14 . Current Status of Service Delivery in Libya: Solid Waste Management . 165 Lejla Catic – PFM Advisor, United States Agency for Economic Development (USAID), Libya Economic Stabilization Program Paper 15 . Suggested Way Forward for National Public Investment Planning Libya Solid Waste Management . .. 175 Ammar Jarrar – PFM Advisor, United States Agency for Economic Development (USAID), Libya Economic Stabilization Program Part IV. Accountability, Participation, and Legitimacy ................................................ 181 Paper 16 . Sustaining Legitimacy of Municipal Councils through Elections Amid Conflict . 183 Daniel Stroux – United Nations Development Programme (UNDP) Proceedings of the Libya Local Government Forum v Paper 17 . Community Participation and Social Accountability: Citizen Aspirations, Knowledge and Agency . 193 Dawoud Almassari and Peter Rundell – United Nations Development Programme (UNDP) Part V. Options for Reform ......................................................................... 197 Paper 18 . Towards Democratic, Decentralized, Responsive, and Transparent Local Government in Libya . 199 Imad Saed – Lead PFM Advisor, United States Agency for Economic Development (USAID) Libya Economic Stabilization Programme Paper 19 . Options for Reforming the Intergovernmental System and the Local Public System in Libya . 211 Jan Werner – PFM Advisor, United States Agency for International Development (USAID), Libya Economic Stabilization Program Table of Contents vii Foreword, Minister of Local Government June 2020 Dear Local Government Forum Participants, for the near- to medium-term. The Forum welcomed over The development of a sound local governance sys- 100 participants, including representatives of Libya’s cen- tem holds great promise for Libya as we seek to contribute tral ministries, departments, and agencies responsible for to improving local development and service delivery, and Local Governance; representatives of relevant line minis- thus, quality of life for the Libyan population. As Libya tries tries responsible for service delivery at the central and local to move forward on its path to improving local governance levels; representatives from local governments, including structures and capacities, which are an essential condition over 20 municipal mayors, advisors, and other staff respon- for greater stability and resilience, it is vitally necessary to sible for the fiscal and administrative aspects of intergov- take stock of the current fiscal and administrative dimen- ernmental relations; representatives of Civil Society Orga- sions related to local governance. nizations and academia; and over 40 representatives of the The Ministry of Local Government, in conjunction with broader International community, who are currently sup- the World Bank, prepared the first Libya Local Governance porting local governance in Libya. Forum in September 2019. Planning of this special event was The Ministry of Local Government is pleased to offer made possible by the generous contributions of our interna- participants a range of perspectives to support our dis- tional partners, including USAID through its Libya Economic cussions and debate. These include 19 background papers Stabilization Program (LESP), the German Development Coop- drafted by international and Libyan experts on numerous eration (GIZ), and the United Nations Development Program local governance themes, which highlight key theoretical (UNDP). This Forum is equally supported by the World Bank’s debates, international good practices, and policy options Libya Building Governance Multi-Donor Trust Fund, which for the government to consider. benefits from the contributions of the European Union (EU), We look forward to continuing working with you, the UK Department for International Development (DfID), our partners, to develop a strategic roadmap for support- and the Embassy of the Kingdom of the Netherlands to Libya. ing decentralization in Libya in the near- to medium-term. The Libya Local Governance Forum aimed at assist- ing the government of Libya and the broader international community in better understanding the current constraints Sincerely, in the local governance realm, the potential opportunities Dr. Milad El-Taher for reform, as well as the establishment of a clear road map Minister of Local Government Foreword viii THE WORLD BANK Michael G. Schaeff er Resident Representative for Lib ya Tunisia Countr y Offic e Palm City– Sidi Abdul Ja lil Mobile: (218) 91 733 287 9 Maghreb Departmen t Janzou r Email mschaeffer@worldbank.o rg Middle East and North Afric a Tripoli- Libya Letter of Welcome, World Bank Country Representative September 14, 2019 Dear Local Government Forum Participants, management, employment situation, wealth distribu- The development of a sound local government sys- tion, and regional disparities. tem holds great promise for countries seeking to improve Against this background, the Ministry of Local Gov- service delivery, better target local needs, and promote ernment in conjunction with the World Bank have pre- social inclusion. In particular, these benefits have poten- pared the first Libya Local Governance Forum. Planning tially transformative impact in countries emerging from of this special event has been made possible by the gen- conflict where local governance structures can be pivotal erous contributions of our international partners, includ- in rebuilding trust, strengthening core institutions, and sup- ing USAID through its Libya Economic Stabilization Pro- porting political stability. However, international experience gram (LESP), the German Development Cooperation (GIZ), has taught us that not all countries have succeeded in their and the United Nations Development Program (UNDP). local governance reform efforts and that a one-size-fits-all This Forum is equally supported by the World Bank’s approach does not always guarantee the intended results. Libya Building Governance Multi-Donor Trust Fund, which It is for this reason that that the development of a modern- benefits from the contributions of the European Union ized local governance system requires careful planning, a (EU), the UK Department for International Development tailored approach to the local context, and above all, a stra- (DfID), and the Embassy of the Kingdom of
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