Ta bl e o f Con te nt s Preface............................................................................................................................................ iv Acronyms and Abbreviations.......................................................................................................... vi 1. Reducing the Throw-Forward of Ongoing ADP Schemes for Devolution ..................................... 8 ADP Throw-forward under Different Fiscal Scenarios ..............................................................................5 Scenario 1: Increase in Revenue Transfer from the Provincial Government ...............................................5 Scenario 2: Reduction in Current Expenditure on Provincially Devolved Departments.................................6 Scenario 3: Increase in District Governments’ Own Revenue..................................................................6 Scenario 4: Reduction in Government’s Own Current Expenditure..........................................................7 Scenario 5: Increase in District Government’s Own Development Expenditure..........................................7 Scenario 6: A Simultaneous Increase in Revenue Transfer and Devolved Current Expenditure......................8 Scenario 7: A Simultaneous Increase in District Government’s Own Revenue and Current Expenditure..........9 2. Developments in District-Level Monitoring Data........................................................................ 10 CWIQ...........................................................................................................................................10 CIET.............................................................................................................................................12 MICS............................................................................................................................................13 3. Provincial–Local Fiscal Transfers.............................................................................................. 14 PUNJAB PFC Award.......................................................................................................................14 Sindh PFC Award............................................................................................................................15 Balochistan PFC Award....................................................................................................................16 NWFP PFC Award ..........................................................................................................................18 Overview of PFC Weightings Used.....................................................................................................20 4. Vertical Fiscal Imbalances.......................................................................................................... 21 Background ....................................................................................................................................21 Federal–Provincial Transfers ..........................................................................................................21 Provincial–Local Transfers ............................................................................................................23 Pakistan’s Vertical Fiscal Imbalances ..................................................................................................24 Pakistan’s Federal-Provincial Aggregate Fiscal Gap ...........................................................................25 Provincial-Local Fiscal Gap...........................................................................................................28 Implications from a Possible Change in the NFC Award..........................................................................29 5. Reforming Access to Justice under Devolution........................................................................... 31 New laws and Institutional Arrangements.............................................................................................34 Separation of Judicial and Executive Powers .....................................................................................34 Improving Dispute Resolution through the Courts..............................................................................41 Encouraging Dispute Resolution Outside the Courts...........................................................................42 Police and Criminal Justice Reforms ...................................................................................................46 New Accountability Structures .......................................................................................................46 Can the Judiciary Hold the Police Accountable?.................................................................................47 Independent Prosecution Service.....................................................................................................49 Separation of Investigation from “Watch and Ward”...........................................................................49 Impact of Police Reforms on Local Government Processes ..................................................................51 Improving Coordination in the Criminal Justice System.......................................................................52 Administrative Justice Reforms ..........................................................................................................52 Reconfiguring Key Relationships........................................................................................................53 Who Controls the Thana and Kutchery? ...........................................................................................53 The Nazim and Police Relations......................................................................................................54 DPO and Federal/Provincial Authorities...........................................................................................55 Police and the Judiciary.................................................................................................................56 Police and Citizens.......................................................................................................................56 Citizens and Courts......................................................................................................................58 Courts and the Bar........................................................................................................................59 6. Key Considerations in Administrative Decentralization ............................................................. 60 What Is a Decentralized Staffing Model Attempting to Achieve? ..............................................................60 Ends and Means...........................................................................................................................60 ii The Necessity of Compromises.......................................................................................................61 T he Paths Decentralizers Hav e Followed ..........................................................................................62 Lessons for Developing an Action Strategy...........................................................................................63 Glossary......................................................................................................................................... 65 References...................................................................................................................................... 66 Ta bl e s Table 1: Districts and TMAs Studied............................................................................................iv Table 2: Throw-Forward of Ongoing Schemes in the ADPs of District Governments, 2000/01 and 2003/042 Table 3: Karachi City Government’s Annual Development Program, 2001/02.......................................2 Table 4: Faisalabad District Government’s Annual Development Program, 2001/02...............................3 Table 5: Bahawalpur District Government’s Annual Development Program, 2001/02.............................3 Table 6: Khairpur District Government’s Annual Development Program, 2001/02.................................4 Table 7: Percent of Development Budget Allocated to Ongoing and New Schemes................................4 Table 8: Years Required to Complete Ongoing Development Schemes................................................5 Table 9: Expected Throw-Forward of Ongoing ADP Schemes (at 6/30/2004)—Scenario 1......................6 Table 10: Expected Throw-Forward of Ongoing ADP Schemes (at 6/30/2004)—Scenario 2 ....................6 Table 11: Expected Throw-Forward of Ongoing ADP Schemes (at 6/30/2004)—Scenario 3 ....................7 Table 12: Expected Throw-Forward of Ongoing ADP Schemes (at 6/30/2004)—Scenario 4 ....................7 Table 13: Expected Throw-Forward of Ongoing ADP Schemes (at 6/30/2004)—Scenario 5 ....................8 Table 14: Expected Throw-Forward of Ongoing ADP Schemes (at 6/30/2004)—Scenario 6 ....................8 Table 15: Expected Throw-Forward of Ongoing ADP Schemes (at 6/30/2004)—Scenario 7 ....................9 Table 16: Availability of Data Sources Disaggregated by District .....................................................10 Table 17: Household Satisfaction with Public Services ...................................................................13