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World Bank Document Report No: ACS22456 West Bank and Gaza Public Disclosure Authorized Local Government Performance Assessment June 14, 2017 GSU11 Public Disclosure Authorized MIDDLE EAST AND NORTH AFRICA Public Disclosure Authorized Public Disclosure Authorized THE PERFORMANCE OF PALESTINIAN LOCAL GOVERNMENTS. AN ASSESSMENT OF SERVICE DELIVERY OUTCOMES AND PERFORMANCE DRIVERS IN THE WEST BANK AND GAZA. Standard Disclaimer: This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpreta- tions, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the govern- ments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denomina- tions, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Copyright Statement: The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development/ The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Cen- ter, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978-750-4470, http://www.copyright.com/. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail [email protected]. THE PERFORMANCE OF PALESTINIAN LOCAL GOVERNMENTS. AN ASSESSMENT OF SERVICE DELIVERY OUTCOMES AND PERFORMANCE DRIVERS IN THE WEST BANK AND GAZA. THE PERFORMANCE OF PALESTINIAN LOCAL GOVERNMENTS AN ASSESSMENT OF SERVICE DELIVERY OUTCOMES AND PERFORMANCE DRIVERS IN THE WEST BANK AND GAZA THE PERFORMANCE OF PALESTINIAN LOCAL GOVERNMENTS. AN ASSESSMENT OF SERVICE DELIVERY OUTCOMES AND PERFORMANCE DRIVERS IN THE WEST BANK AND GAZA. Table of Contents Acknowledgements........................................................................................................................i Abbreviations and Acronyms ......................................................................................................... ii EXECUTIVE SUMMARY ................................................................................................................. iii I. Introduction ........................................................................................................................... 1 1.1 Country Context ............................................................................................................................ 1 1.2 Sector Context ............................................................................................................................... 2 1.3 Key Challenges ............................................................................................................................... 8 1.4 Objective and Methodology ........................................................................................................ 11 II. The State of Basic Service Delivery in Palestinian Local Governments ..................................... 13 2.1 The Institutional Framework Governing Local Service Delivery .................................................. 15 2.2 Water and Waste Water .............................................................................................................. 21 2.3 Solid Waste Management ........................................................................................................... 29 2.4 Local Roads .................................................................................................................................. 31 2.5 Socio-Demographics of Service Provision ................................................................................... 35 2.6 Citizen Willingness to Pay ............................................................................................................ 38 III. Drivers of Service Delivery Performance ................................................................................ 44 3.1 The LGPA Performance Index ...................................................................................................... 44 3.2 Geography and Administrative Set-up ........................................................................................ 46 3.3 Population Size, Density, and Wealth.......................................................................................... 48 3.4 Area C and Separation Barrier ..................................................................................................... 50 3.5 Joint Service Councils .................................................................................................................. 55 3.6 Fiscal Capacity .............................................................................................................................. 57 3.7 Governance and Accountability .................................................................................................. 59 IV. Conclusion and Recommendations ........................................................................................ 68 4.1 Prioritize the Improvement of the Quality and Reliability of Services ........................................ 68 4.2 Reform the Local Government Financing System as a Pre-condition for Success ...................... 69 4.3 Strengthen LGU Accountability and Responsiveness to Increase Citizens’ Willingness to Pay .. 71 4.4 Consolidate and Professionalize Service Delivery ....................................................................... 75 4.5 Increase Density and Connectivity, and Support the Marginalized that the PA Cannot Reach .. 77 4.6 Benchmarking for Improving Local Government Performance .................................................. 77 References .................................................................................................................................. 79 Annex ......................................................................................................................................... 81 Annex 1: Methodology of Household Survey ....................................................................................... 81 Annex 2: Methodology Qualitative Analysis ......................................................................................... 82 Annex 3: Methodology LGPA Performance Index ................................................................................ 83 Annex 4: Regression Results ................................................................................................................. 84 Annex 5: Overview Key Informant Interviews and Focus Group Discussions..................................... 116 Annex 6: Key Informant Interviews and Focus Groups Discussions Referenced ................................ 117 Annex 7: LGU Performance Ranking ................................................................................................... 121 Annex 8: LGU Revenue Assignment, Management Responsibility, and Final Destination of Funds .. 145 THE PERFORMANCE OF PALESTINIAN LOCAL GOVERNMENTS. AN ASSESSMENT OF SERVICE DELIVERY OUTCOMES AND PERFORMANCE DRIVERS IN THE WEST BANK AND GAZA. List of Figures: Figure ES-1: Service Access across Sectors ................................................................................................... v Figure ES-2: Satisfaction with Service Quality and Reliability ...................................................................... vi Figure ES-3: Population Size (left) & Density (right) as Performance Drivers ............................................ viii Figure ES-4: Operating Revenues (left) & Operating Expenditures (right) as Performance Drivers ........... ix Figure ES-5: Citizen Service Center Use (left) & LGU Responsiveness (right) as Performance Drivers ....... xi Figure I-1: Fiscal Decentralization in the Palestinian territories and World Regions ...................................3 Figure I-2: Revenues by Type in Municipalities (left) and VCs (right) ...........................................................4 Figure I-3: Expenditure Allocation by Budget Type in Municipalities (left) and VCs (right) .........................4 Figure I-4: Total Per Capita Expenditures with (left) and Without Outliers (right).......................................5 Figure I-5: Average Per Capita Expenditures in Operating Budget (left) and Enterprise Fund (right) ..........5 Figure I-6: Operating Budget Expenditure Categories Municipalities (left) and VCs (right) .........................6 Figure I-7: The Dynamics of Net-Lending in the West Bank ...................................................................... 10 Figure I-8: LGPA Survey - Municipality and Village Council Size-Groups and Population .......................... 12 Figure II-1: Service Access across Sectors .................................................................................................. 13 Figure II-2: Satisfaction with Service Quality and Reliability .....................................................................
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