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Devolution in Pakistan Annex 1—Recent History

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Devolution in Pakistan Annex 1—Recent History Devolution in Pakistan Annex 1—Recent History July 26, 2004 Asian Development Bank Department for International Development Poverty Reduction and Economic Management Sector Unit, South Asia Region World Bank Table of Contents Preface ........................................................................................................................................... iv Acronyms and Abbreviations......................................................................................................vi 1. The Background to Devolution ................................................................................................ 1 Why Devolution? .................................................................................................................................... 1 What does Devolution do to the Local State? ......................................................................................... 4 2. How was Devolution Implemented? ........................................................................................ 8 Political reforms ...................................................................................................................................... 8 Electoral arrangements...................................................................................................................................... 8 Citizen Access and Oversight Bodies ............................................................................................................. 10 The Administrative Changes................................................................................................................. 12 Executive structure within local governments................................................................................................. 12 The staffing inheritance of the districts........................................................................................................... 13 Merging cadres................................................................................................................................................ 13 Fiscal Reforms....................................................................................................................................... 14 Expenditure assignments................................................................................................................................. 14 Fiscal transfers ................................................................................................................................................ 15 Accounting and Audit ..................................................................................................................................... 21 Achievements and challenges in implementation to date...................................................................... 22 Uneven Implementation.................................................................................................................................. 22 Does the Diversity Matter? ............................................................................................................................. 24 3. Service Delivery and Devolution ............................................................................................ 25 Framework Used ................................................................................................................................... 25 Early Signs of Changing Incentives for Nazimeen and Senior Staff ..................................................... 27 Provincial Efficiency Incentives ..................................................................................................................... 27 Citizen Power (Voice)..................................................................................................................................... 45 Early Signs of Changing Incentives for Service Providers.................................................................... 56 Managerial Power ........................................................................................................................................... 57 Citizen Power (Client Power) ......................................................................................................................... 72 Appendix ...................................................................................................................................... 78 Data on Institutions in Transition.......................................................................................................... 78 Data on Vertical Programs .................................................................................................................... 86 Glossary........................................................................................................................................ 91 References .................................................................................................................................... 92 Tables Table 1: Districts and TMAs Studied ..................................................................................................... iv Table 2: Executive Structure of the Districts..........................................................................................12 Table 3: Functional Reassignments from Provincial to Local Governments under Devolution.............15 Table 4: Provincial Consolidated Revenues ...........................................................................................18 Table 5: Variations in District Structure.................................................................................................23 Table 6: Key Incentives in the Devolved Structures ..............................................................................26 Table 7: Proportions of Total Funding Transferred to Local Governments on a Formula Basis............28 Table 8: Meeting the Balanced Budget Requirement.............................................................................29 Table 9: Arrangements for Public Oversight over Transfers..................................................................32 Table 10: Vertical Programs as a Percentage of the District ADP .........................................................34 Table 11: Proportions of TMA Budgets Available for Local Determination .........................................35 Table 12: Local Government Control of Accounts, by Province ...........................................................36 Table 13: Revenue-raising Authorities for Local Government ..............................................................37 Table 14: Responsibility for Aspects of Rating......................................................................................42 Table 15: Political Legitimacy in Local Government Elections.............................................................53 Table 16: Provincial Incentives to Intervene in the Districts..................................................................55 Table 17: Location of the Employer Function for District Staff.............................................................59 Table 18: Mechanisms for External Oversight.......................................................................................65 Table 19: Execution of the Development Budget...................................................................................72 ii Table 20: Mechanisms for Citizen Dispute Resolution and Community Management of Services and Facilities.........................................................................................................................................73 Table 21: Numbers of Local Governments after Devolution .................................................................78 Table 22: Phasing of Local Government Elections, 2000/01 .................................................................78 Table 23: Local Electoral Arrangements for Pakistan in Comparative Perspective...............................79 Table 24: Impact of the Reforms on Each Level of Government...........................................................79 Table 25: Health Facilities Transferred to District Governments...........................................................80 Table 26: Implementation of Budget Reforms as Required by the LGO ...............................................81 Table 27: APT Authorities in the Districts.............................................................................................83 Table 28: Honoraria for Members of District Monitoring Committees..................................................84 Table 29: Cases before Courts at the Time of Devolution, 2001............................................................84 Table 30: Comparison of Sanctioned and Actual Strength of Police (October 2003) ............................84 Table 31: Staffing Strength of Judges, October 2003.............................................................................85 Table 32: Highly Vertical Programs (deconcentrated expenditures)......................................................86 Table 33: Less Vertical Programs (delegated expenditures) ..................................................................88 Figures Figure 1: The Changing Framework of Accountability............................................................................7 Figure 2: Indirect Elections ......................................................................................................................8
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