The role of external assistance in supporting decentralisation reform

Abstract

AbstractA paradigm linking public sector decentralisation reforms to poverty reduction via improved local governance and development has provided the rationale for donor support of decentralisation and parallel efforts to build local government capacity. This article briefly considers the paradigm and reviews modalities of external aid to decentralisation, highlighting key limitations and contradictions. In spite of much rhetoric, decentralisation remains marginalised in a donor‐government policy dialogue dominated by macro‐economic and sectoral issues. Compartmentalisation within major aid organisations of the expertise and responsibilities to support administrative reforms, sectoral assistance programmes and community development projects, produces fragmented and competing interventions that do not address and even retard the systemic changes needed to advance decentralisation. New and more effective partnership arrangements between decentralising governments and their external partners are necessary to link ‘downstream’ assistance to local governments to ‘upstream’ development of the national decentralisation reform framework and to help manage a gradual and strategic approach to implementation of the reforms. Donor support to ‘decentralisation policy experiments’ may provide a new model for policy dialogue and the basis for building more effective partnerships. Copyright © 2003 John Wiley & Sons, Ltd.