1 Authors This research product would not have been possible without Carl DeFaria the great interest and cooperation of Hluttaw and government representatives in Mon, Mandalay, Shan and Tanintharyi Philipp Annawitt Region and States. We would like express our heartfelt thanks to Daw Tin Ei, Speaker of the Mon State Hluttaw, U Aung Kyaw Research Team Leader Oo, Speaker of the Mandalay Region Hluttaw, U Sai Lone Seng, Aung Myo Min Speaker of the Shan State Hluttaw, and U Khin Maung Aye, Speaker of the Tanintharyi Region Hluttaw, who participated enthusiastically in this project and made themselves, their Researcher and Technical Advisor MPs and staff available for interviews, and who showed great Janelle San ownership throughout the many months of review and consultation on the findings and resulting recommendations. We also wish to thank Chief Ministers U Zaw Myint Maung, Technical Advisor Dr Aye Zan, U Linn Htut, and Dr. Le Le Maw for making Warren Cahill themselves and/or their ministers and cabinet members available for interviews, and their Secretaries of Government who facilitated travel authorizations and set up interviews Assistant Researcher with township officials. T Nang Seng Pang In particular, we would like to thank the eight constituency Research Team Members MPs interviewed for this research who took several days out of their busy schedule to organize and accompany our research Hlaing Yu Aung team on visits to often remote parts of their constituencies Min Lawe and organized the wonderful meetings with ward and village tract administrators, household heads and community Interpreters members that proved so insightful for this research and made our picture of the MP’s role in Region and State governance Dr. Mya Mya Thet complete. We wish to thank UNDP’s area office coordinators Dr. Tin Maung Maung Ohn Ni Ni Lwin, Cin Than Kham, Aung Linn and Zaw Min Naung for organizing meetings, arranging schedules and facilitating Peer Reviewers diligently our communication during the long months of review and consultations on findings and recommendations Doina Ghimici, Senior Technical Specialist, of this report. Finally we wish to thank a great research team, UNDP Asia and Pacic Regional Hub led by Aung Myo Min and advised by the fabulous Janelle Saffin and Warren Cahill, the team at UNDP and all individuals Thomas Gregory, Committee Specialist, who provided support prior, during and after the research and consultation processes. UNDP Myanmar This report was generously funded by the Australian Anki Dellnas, Chief Technical Advisor, Department of Foreign Affairs and Trade (DFAT) Swedish Local Governance, UNDP Myanmar International Development Agency (Sida), and by the United Kingdom’s Department for International Development (DFID). Scott Ciment, Chief Technical Advisor, The views expressed in this report do not necessarily reflect Rule of Law, UNDP Myanmar those of the DFAT, Sida or DFID. Editor Jenny Rouse CONTENTS Executive Summary 6 Recommendations 8 Introduction 11 Part 1: Internal Functioning of Region and State Hluttaws 17 Role of the Speaker and the Deputy Speaker 17 Functioning of the plenary 20 Functioning of committees 23 Role of the Hluttaw administration 25 Services to the Speaker, committees and plenary 28 Hluttaw budget and human resources 29 Part 2: Hluttaw–Government Cooperation 31 Cabinet functioning: Practice 31 The law-making process 33 Policy and legal drafting 33 Legislative review and role of the Legislative Committee 36 Implementation of legislation by the government 37 Budget approval and expenditure oversight 38 Formulation of the Region and State budget proposal and review by the Hluttaw 38 Government financial reporting and audit 40 Parliamentary oversight 42 Plenary oversight 42 Review of government pledges 42 Part 3: Representation Function of MPs and Work in their Townships 45 Constituency work 45 Understanding of constituency needs and priorities and constituency work practices 45 Participation in township-level governance 50 Participation in township management and township planning 50 Management of constituency development funds 52 Concluding Remarks 53 Annex: Interviews and Meetings Held 55 ACRONYMS CDF Constituency Development Fund DDG Deputy Director-General GAD General Administration Department ICT Information and Communications Technologies IPU Inter-Parliamentary Union MPU Myanmar Parliamentary Union TA Township Administrator ToR Terms of Reference UNDP United Nations Development Programme VTA Village Tract Administrator 6 Executive Summary The Situation Analysis of Myanmar’s Region and State leadership—the Speaker on substantive matters and the Hluttaws explores the functioning of Region and State Deputy Director General on administrative matters. Region Hluttaws in a comprehensive manner, documenting and State Governments lack a policy support apparatus—the processes and practices with regard to their internal GAD-supported Office of the Region or State Government functioning, their relationships with the Government performs administrative and coordination tasks, and the and the work of members of the Hluttaws (MPs) in their Union ministries’ departments in the regions and states are constituencies. Research conducted in Mandalay Region, not equipped to develop policy or draft quality legislation. Mon State, Tanintharyi Region and Shan State (and some The absence of policy at the Region and State levels is not information on Rakhine State) underpins the findings in this in keeping with increasing fiscal decentralization, has a report. variety of negative effects on governance, including the Hluttaws’ work, and needs to be addressed collaboratively. Myanmar’s Region and State Hluttaws are still very young democratic institutions, in their second parliamentary Legislating is an ad hoc process, and bills are often initiated by term. Their practices are evolving rapidly, and the legal and the Hluttaws in response to the policy vacuum. The Hluttaws procedural framework underpinning their work needs to have sought support from experienced lawyers acting follow suit—the Region and State Hluttaw Rules date from as advisors but increased involvement of implementing the early days of the first Hluttaws. The Rules overlap with government departments may be required to ensure laws the Law Relating to Region or State Hluttaw (“Region or are implemented. The bill review process in the Region and State Hluttaw Law”), which was passed by the first Union State Hluttaws can also be improved to ensure the improved Hluttaw to bind Region and State Hluttaws.1 This creates a and consistent quality of the resulting legislation. The lack legal limbo that is neither helpful nor in line with Myanmar’s of official gazettes in the regions and states means that the transition to democratic federalism. As the Region and State only place where approved laws are consistently available is Hluttaws review and update their rules, the Region or State the Hluttaw library, where they are kept in hard copy form. Hluttaw Law could be repealed. Partly in response to the lack of a Region or State government The Speakers have a very strong position as leaders of policy platform, Hluttaw MPs often submit their own their Hluttaws and make the most of the procedural and proposals with policy and budgetary implications which, scheduling decisions regarding the Hluttaws’ sessions and if approved by the plenary, become binding government their business. In many Hluttaws, good informal mechanisms pledges. Where the government is unable to implement for engaging MPs in decision-making on these matters them, relations between the Hluttaw and the government have evolved and require formalization. There is remarkable suffer. Government oversight occurs through MPs asking progress in how committees are studying concerns in detail questions of ministers in the plenary session and through the and involving external stakeholders. The next step will be Government Undertakings and Pledges Vetting Committee, for committees to systematize the process of inquiry and to which reviews the government’s implementation of pledges. focus on broader concerns and on public policy, to enable Helpfully, subject-matter committees are now beginning them to oversee the Region or State Government and help it to inquire into the performance of their line ministries. develop public policies. Region and State Hluttaws and Governments have developed The new Hluttaw administrations—the authority of which creative solutions to make a complicated budget process was transferred from the General Administration Department work. In many Hluttaws, the budget review starts with (GAD) to the Pyidaungsu Hluttaw Administration only in informal meetings between the Hluttaw’s Public Finance 2017—have seen a large turnover of staff, with new staff Committee and the Minister of Finance and his/her budget being recruited only recently. Nonetheless, these new department. In the budget review process, Public Finance administrations have been making progress in delivering Committees rely on information that MPs have regarding basic services to MPs. Increasingly, development of the infrastructure needs in their townships. Where budget Hluttaws is guided by strategic visions, with strategic proposals are not based on policy, they cannot effectively development plans in place in seven of the 14 Region and be reviewed by the Hluttaws, and the focus of the Hluttaws’ State Hluttaws. The Hluttaw administrations now need budget review necessarily revolves around parochial intensive capacity-building