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No. 19

January – March 2012

Regional Centre LAC

In this Issue Viewpoints Highlights Article – El Salvador Launches Postal Stamps as a Sign of its

Commitment to Transparency Event - Workshop on Anticorruption International

Cooperation: Prevention, Transparency and Accountability Thematic Web Site Golstat Agenda

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Local Governance and Decentralization: Are they the Same?

Local Governance and Decentralization

Often in the political and policy

discussions in the Latin American and

Caribbean (LAC) region, local

governance and decentralization are

concepts that are used interchangeably.

However, practices and evidence

continue to suggest that while

potentially complementary and inter-

related, local governance and

decentralization are separate concepts

and processes. Local governance

covers a wider range of issues and

stakeholders, and includes planning

and decision-making processes in the

local political, economic and social

realms. Local governance is often

driven more by the interaction and

relationship between the government

and those that are governed. The

dynamics of local governance involve

institutions, structures, systems,

resources, regulations, practices,

leadership, actors and relationships. At

the same time, local governance also

incorporates typically local elements

such as political, territorial and gender

equity history, accountability and

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citizen participation mechanisms, and

service provision and resource

generation and management.

Local Governance can be a framework

that provides the maneuvering space

for policy and programming at the local

level and can also regulate the

involvement of stakeholders from

national and local levels of

government, civil society, and the

private sector. Local governance can

also be a means to promote local

economic and human development. As

such, local governance can extend

beyond the formal functions given to

local authorities, and can produce

localized policy processes that can have

national implications (up-scale policy).

Decentralization, on the other hand, is

a more political and politicized process,

highly dependent on the political will

and commitment of mainly central

government authorities. As such,

decentralization processes are complex

in both political and technical terms. In

its more pure form, decentralization

involves transferring political, administra-

tive and fiscal power and competencies

to sub-national governments (states,

departments, provinces, municipalities,

and parishes). The implementation of

decentralization processes often can

change the political landscape, by

enhancing the power of various sub-

national groups and can also change

the dynamics for power, authority and

resources.

Because of the issues mentioned

above, decentralization processes have

to be sustained for a long period, but

also have to be gradual and staged,

starting from limited approach and

gradually leading to greater levels of

decentralization strictly on the basis of

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capacity of sub-national governments to

manage effectively the new

responsibilities. Devolution is the

deepest form of decentralization, as it

involves the formal and legal transferring

of powers from the central to sub-

national governments. Under devolution,

the majority of decisions and resources

are the result of local governance

dynamics and transparency and

accountability are localized. Delegation

is an intermediate form of

decentralization that assigns some

administrative functions to sub-national

units. Under delegation, sub-national

governments have limited autonomy

and both local and national governance

have responsibilities in terms of

accountability and transparency.

Desconcentration is the least form of

decentralization, as it involves not only

the presence of sub-national

governments, but the creation of units

at the sub-nation level that are

appendages of central level institutions,

and are there mainly to implement

centrally generated and financed

policies at the sub-national level. While

sub-national governments under

desconcentration can have some

political autonomy, the desconcentrated

units are accountable to central

government institutions for policy

issues.

Currently, a majority of the countries in

the LAC Region have made efforts

towards decentralization but the

process has involved mostly delegation

and desconcentration, while devolution

is still a work in progress for most

countries. In the LAC region one finds

two interesting scenarios: one with

local governance successes, in spite of

limited decentralization processes, and

another one with limited lack of

governance success, despite higher

degrees of decentralization. This

paradoxical situation often creates a

challenge in assessing these two

processes in terms of human

development, MDGs, and/or local

economic development, as causality is

generally difficult to ascertain. The

evidence so far is still spotty in terms of

the role of local governance and

decentralization in development

outcomes in the LAC Region, although

there are selected examples and best

practices that have been identified.

Much of the theoretical work shows

that decentralized governance can lead

to greater human and economic

development. Despite the limited and

mixed empirical evidence of their

impact, expectations and aspirations

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for better local governance and more

decentralization remain high in the LAC

Region. This provides an important

opportunity for UNDP, not only to

advocate for better understanding the

dynamics of local governance and

decentralization, but also how they can

complement and their potential

contextual limitations, but also to

mainstream related activities across

practice and thematic areas.

Both, local governance and

decentralization require support in the

LAC region, although at different levels

and intensity. It is clear that

decentralization reform is an ongoing

process in most countries that is multi-

dimensional and complex, and often

involves mainly central/national actors

and institutions. It is also clear that

context matters for decentralization

reforms, particularly in terms of the

institutional and constitutional

elasticity of the political systems. It

may be more fluid to promote

decentralization processes in Federal

models and/or parliamentary systems

(particularly the Caribbean countries),

but even under Unitary models the LAC

region is making important strides in

decentralization reform. Irrespective,

decentralization processes are medium

and long-term enterprises and

evidence from across the globe shows

there is no blueprint. UNDP can

facilitate dialogue and evidence on

challenges, issues and factors that

affect the process, in particular as a

way to keep deliberation, discussions

and dialogue as de-politicized as

possible so the more technical aspects

of the process could be also given the

attention they deserve.

CCoonnttiinnuuaattiioonn ooff VViieewwppooiinnttss

Local Governance and Decentralization: Are they the Same?

Continue on next page

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CCoonnttiinnuuaattiioonn ooff VViieewwppooiinnttss

Local Governance and Decentralization: Are they the Same?

as possible so the more technical

aspects of the process could be also

given the attention they deserve.

UNDP also has an important and more

immediate role in focusing on local

governance. Advocating and

showcasing local governance practices

could provide evidence to up-scale

practices into policies and

decentralization reform processes.

Priority areas could be civil society

engagement, capacity building of local

governments and tools to promote

effective, participatory, transparent

and accountable services. Sub-national

governments have a natural advantage

of being closer to constituencies and

better understanding the local needs.

In the LAC region, such natural

advantage is often dwarfed by

inconsistencies in institutional design

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to better articulate multi-level

governance, lack of enforcement of

normative frameworks, and lack of

capacities of sub-national governments

to assume transferred responsibilities.

As has been documented widely, sub-

national governments in the LAC region

will take the blunt of future challenges

as a result of increasing urbanization,

climate change, environmental

degradation, and natural disasters, to

name but a few. Therefore, sub-

national authorities need to be part of

national policy level deliberation and

dialogue on strategies to further

enhance local governance and

decentralization processes. Similarly,

further dialogue is needed in terms of

expanding downward accountability

and transparency systems by involving

both policy makers and beneficiaries.

A well thought-out local governance

and decentralization strategy involves

all levels of government, to enable

better articulation and avoid

duplications, to ensure more efficient

service delivery systems and to close

the asymmetric gap between citizen

expectations and the natural gradual

process of these reforms. This strategy

may involve accommodating some

current structures of governance with

new and innovative structure that

respond to the actual and future

realities of sub-national governance. A

congruent and strategic local

governance and decentralization

strategy could help in the transition

from territorial atomization to

inventive territorial arrangements to

deal with current and future political,

fiscal and administrative challenges.

To comment on this article, please

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| 44

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Decentralization, Basic Services: The Cases

of Brazil, Chile, Colombia, Costa Rica and

Mexico in Health, Education, Waste, Security

and Development

ECLAC and GIZ

January 2011.

The document is the result of a comparative research study on decentralization of basic services, carried out by the Latin American and Caribbean Institute for Economic and Social Planning (ILPES) of ECLAC. The study focuses on the experience of five countries in the region (Brazil, Chile, Colombia, Costa Rica and Mexico). The hypothesis of the study is that the provision, coverage and quality of basic public services could be improved through decentralized models. The objective of the study is to identify experiences where the services delivery is optimal. The study concludes that decentralization processes are particular to each country, and therefore generalized conclusions cannot be done. In the opinion of the majority of the experts, and as the results of this survey points out, the decentralization processes have made progress, particularly where these have had benefits for the economy and fiscal management, and have promoted an active citizen participation and oversight. On the other hand, the study also notes progress where there is a conducive functional institutional architecture for decentralization, which highlights an enabling dimension of power delegation and trust toward sub-national entities. The document identifies "good practices" in all the countries studied, which are predominantly at the local-municipal, associations of municipalities and regional (departments and states) levels.

[To download click here] Topic Guide on Decentralization and Local Government Scott Zoe and Rao Summedh Commonwealth Secretariat and the Governance and Social Development Resource Centre (GSDRC) March 2011.

This Topic Guide provides practical guidance for designing,

implementing and evaluating decentralization reforms and local

government practices to ensure they are as effective as possible. It

also synthesizes and presents current debates on the impact of

decentralization and local government on poverty reduction,

service delivery and conflict as well as providing links to

cuttingedge research and recent case studies. The guide provides

information and relevant bibliography on key decentralization

topics such as: the changing role of the State; designing and

strengthening local government, fiscal decentralization,

participation and accountability; monitoring and evaluation;

decentralization and development; local service delivery; and

conflict and fragile contexts, to name but a few. Each section

provides summaries of key resources and online links to an array of

relevant resources.

[To download click here]

The Internet in Latin America: Online Publics, Social Media Use and the Impact of Diffusion Paola Prado The Western Hemispheric Security Analysis Center Applied Research Center/Florida International University June 2011. This paper analyzes the impact of the Internet in Latin America. It is a brief overview of online publics in the Region and their adoption of social media. The study begins with a review of Internet access rates in the Region, briefly recounts universal access and digital inclusion policies. Then, it describes select moments in the diffusion process, and concludes with a brief analysis of the impact of this first phase or Internet diffusion in the Region. This paper focused on a sample that consisted primarily of the four countries in South America with the highest rate of Internet access, and the two highest ranked countries in Central America and the Caribbean, respectively: Argentina, Brazil, Chile, Colombia, Costa Rica and the Dominican Republic. While the study cannot be considered representative of the entire region, the analysis provides a snapshot of this topic in the region. Internet access in Latin America is quickly expanding: more than three out of every 10 people in the region are now online. This is no longer a medium restricted to the elite, it is rather a public sphere, upon which civil society has staked its claim.

[To download click here]

Decentralization in Honduras. From a Distribution to a Development Approach Cesar Vargas GFA Consulting Group December 2011

The document develops in the first chapter a retrospective analysis of what has been the Honduras decentralization approach from the Municipalities Law to the country´s vision until 2038. Chapters 2 to 6 analyze the fiscal decentralization with a development approach, and focus on key topics such as the competencies of national and sub-national levels, the system of intergovernmental transfers emphasizing equity for the less-developed municipalities, and spending and the debate on how to achieve an optimal structure of municipal expenditures. In Chapters 7 and 8, finally, proposals for an institutional framework to support the decentralization process and Honduras are recommended. Decentralization as an integral and long-term public policy, has to have a high social and political consensus, and should be an integral part of strategies for raising long-term productivity in the public sector, and for the modernization of the State.

[To download click here]

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Three images that travel around the world show the

commitment of El Salvador with strengthening a culture

of transparency and ethics in public administration. It is a

postage stamp series that captures the importance of the

fight against corruption, which is at the core of the

government agenda.

A transparent government is essential to strengthen

democracy. Together with the government, the citizens

must assume its responsibility and demand a more

efficient and accountable public sector.

In the region, El Salvador ranks in the Transparency

International Corruption Perception Index (CPI) in the

middle, and in Central America it has a prominent ranking,

as it occupies second place, just below Costa Rica.

Despite this, on 2011 there was a slight increase in the

perception of corruption, which meant a fall in the CPI,

from 3.6 in 2010 to 3.4 last year, a return to the levels of

2009.

In institutional terms, during the last few years, the

creation of the Transparency and Anti-Corruption Sub

Secretariat at the Presidency has represented a step

forward, as well as in the work of the government to

create an effective anticorruption public policy.

This year, the Law of Access to Public Information will

mark a new milestone, since it will allow for the first time

that the citizens demand information to public entities

and participate more actively in their democracy.

"We are aware that it is necessary to go further and that is

why the United Nations Development Programme (UNDP)

is a strategic partner of the Government in its

transparency initiatives," added Richard Barathe, the

Deputy Resident Representative of UNDP El Salvador.

UNDP supported the issuance of these postage stamps so

that it can stimulate awareness in civil society of the legal

tools the country has to prevent and combat corruption,

such as the United Nations Convention against Corruption

(UNCAC), which El Salvador is a signatory.

Although the stamps highlight legal norms, the

Government and UNDP emphasize that much more is

needed to win against corruption. Without a doubt, an

active civil society increases the opportunities for the

legal tools to be effective.

There were 100.000 stamps produced in the series and

they are circulating in the post offices as of December 9,

a date that has been precisely designated by the United

Nations General Assembly as the International Anti-

Corruption Day.

The postage stamps will travel around 191 countries with

which El Salvador has mail exchange services around the

world, and will have the slogan "transparency benefits all

of us."

One of the postage stamps represents the control and

monitoring of public and private institutions on

transparency and anti-corruption, which should be

exercised by public servants. The second stamp shows

the United Nations as a watchdog and observer of

compliance between State Parties to the agreements,

and the third postage stamp is dedicated to the Inter-

American Convention against Corruption.

"We should be proud that around the world it is going to

be known that in El Salvador we are against corruption,"

concluded the National Director of Post Offices, Elsa

Margarita Quintanar de Ortez.

*UNDP-El Salvador

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El Salvador Launches Postal Stamps as a Sign of its Commitment to Transparency*

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Workshop on Anticorruption International Cooperation: Prevention, Transparency and Accountability, By

Maristela Marques Baioni and Maria Teresa Amaral Fontes*

On January 26, 2012, the workshop "Anticorruption

International Cooperation: Prevention, Transparency and

Accountability” (Cooperação Internacional Anticorrupção:

Prevenção, Transparência e Controle) was held in São

Paulo, Brazil. The event was sponsored by the Office of

the São Paulo State Comptroller General (Corregedoria

Geral da Administração), the Special Office of

International Affairs of the State Government of Sao Paulo

(Assessoria Especial para Assuntos Internacionais do

Governo de São Paulo), and UNDP-Brazil.

Nearly 80 government employees from the areas of

internal and external control of the State participated.

The workshop aimed to provide a global, national and

regional perspective on transparency, accountability and

the prevention and fight against corruption. The morning

session was reserved for Gerardo Berthin’s presentation,

Governance and Decentralization Policy Advisor of

UNDP’s Regional Center for Latin America and the

Caribbean in Panama; followed by Ronald da Silva Balbe’s

presentation, Director of Brazil’s Comptroller General

Office (Controladoria Geral da União); and Gustavo

Ungaro, President of the São Paulo State Comptroller

General (Corregedoria Geral da Administração). The

afternoon session provided an opportunity to dialogue

about mainstreaming anti-corruption in development

sectors, and about the United Nations Conventions

against Corruption. Over 50 participants, including key

high-ranking officials participated.

The joint work between UNDP’s Regional Center and

UNDP Brazil proved to be very successful, and will

certainly help to build new partnerships with the State

Government of São Paulo and the Federal Government

of Brazil. These actions will serve to strengthen the role

of the country in international events about anti-

corruption taking place on 2012 in Brazil, such as the 5th

Community Global Meeting on Anti-Corruption Practices

of UNDP (COP), and the 15th International Anti-

corruption Conference (IACC).

Besides its exceptional presentation on the workshop,

Mr. Gerardo Berthin gave an interview to UNDP’s Brazil

website, in which he talks about the impacts of

corruption on human development and the importance

of the involvement of society as a whole in the fight

against corruption. The full interview can be accessed

here.

The fight against corruption is a priority issue to the

Brazilian government and society. According to the

World Bank data, corruption accounts for over US$ 1

trillion per year in the whole world. In Brazil alone, the

resources involved in acts of corruption in the federal

public sector are estimated to be US$ 23 billion. UNDP

Brazil has been supporting the Brazilian government in

actions focused on the strengthening of capacities of its

governance institutions in order to make them more

effective to prevent and reduce corruption. UNDP Brazil

also seeks empowering the media and civil society to

involve citizens to participate in the control of public

policies and resources.

*Assistant Resident Representative for Programmes, and

Programme Analyst respectively, UNDP-Brazil

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Rendir cuentas

Rendir Cuentas is a network of civil society organizations in

Latin America and the Caribbean that promote transparency

and accountability. The initiative is integrated by 25

organizations from six countries in Latin America and the

Caribbean (Argentina, Colombia, Ecuador, Peru, the Dominican

Republic and Uruguay), and works at two levels: 1)

identification, analysis, systematization and dissemination of

good practices in transparency and accountability; and 2) )

promotion of self-regulation practices of civil society

organizations through the adoption of voluntary and common

standards for transparency. The web page of Rendir Cuentas,

has news, blog and discussion forums sections, and

documentation on the subject. To visit the website, click here

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According to the Latin American Information

Agency Free Press, more than 35 municipalities

will be proclaimed free of illiteracy in El

Salvador. The Department of Education

announced that since the start of the program

“Full Time Inclusive School (La Escuela Inclusiva

de Tiempo Pleno)” in March 2010,

approximately 120,000 persons have benefited.

It was also announced that the budget for

education in 2012 is US$120igher than in 2011

and reaches US$827 million. This amount

represents 3.7 % of the Gross Domestic Product

(GDP) and it is expected that by 2014 the

amount will reach 5% of GDP. The Ministry of

Education will invest $59 million to repair the

infrastructure of 746 educational centers that

suffered damage during the 2001 earthquakes

and storms, and/or damaged over the years. It

was also announced that it will allocate US$46

million to finance wage increases for teachers.

Planning and Working Mission to UNDP Regional Center Panama of Gerardo Noto, Programme

Specialist Democratic Governance Practice Area/RBLAC, March 6-9.

Support to the Mid-Term Evaluation Mission of the Programme on Anti-Corruption for Development

Effectiveness (PACDE) in Bogota and Cartagena, March 11-15.

Expert Workshop on the Virtual course "Accountability tools to lead Local development," Bogota,

Colombia, March 12.

Nicaragua Mission to Support the External Evaluation of the Anticorruption Fund (FAC III Phase) and

participation in the closing session of the Building Resources in Democracy, Governance and Elections

(BRIDGE)-GPECS Workshop, March 11-23.

Participation in the Seminar on "The Impact of the Right of Access to Information on Citizen

Participation,” organized by the Council of Transparency and supported by UNDP-Chile, April 19 - 20.

http://www.regionalcentrelac-undp.org/en