0w2010 01 RESUM EJECUTIVO 03 DEFcarta ang
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EXECUTIVE SUMMARY 32
United Cities and Local Governments
governments across the various dimensions of performance. The table below summarizes the findings.
Conclusions This study demonstrates the significant variation in fiscal decentralization frameworks and outcomes that exists across and within the Asia Pacific Region. This diversity makes it nearly impossible to make general recommendations about fiscal decentralization in the Region. These difficulties, notwithstanding this chapter, points to three broad conclusions that may be important for policymakers to consider as they develop decentralization reform agendas. These are to: •
stay the course,
•
build local capacity, and
•
strengthen horizontal accountability
Fiscal decentralization is most appropriately viewed as set of procedures designed to support a structure of government aimed at enabling greater community involvement and better service delivery outcomes. Some theoretical objectives of decentralization may best be seen as ideals that can rarely be fully met and that can only be achieved to any significant degree over many years. In many countries in the region, there is a desire to improve on the outcomes that have been attained by decentralization programs thus far. Policymakers must resist the temptation to roll back public sector decentralization reforms that have already been implemented. Countries need to take a long-term view and stay the course with regard to the execution of fiscal decentralization. The significant local level capacity concerns in many countries across the Asia Pacific have been a focus in this chapter. Lack of capacity should not be seen, however, as a reason to limit the kind and degree of fiscal
decentralization in a country. Instead, capacity constraints should be used in a strategic manner to design and implement reforms. That is, decentralization efforts should be organized and executed in a gradual manner, cognizant of the management capabilities at the local level. Perhaps more importantly, decentralization programs themselves should also be viewed as potential mechanisms for building needed capacity. A final conclusion concerns accountability. The review of local government finances in this chapter has shown that where countries have paid attention to accountability in the design and execution of their decentralization programs, they have mostly stressed (vertical) accountability to higher level governments. Horizontal accountability is somewhat weak throughout the Asia Pacific region. It is difficult for decentralization programs to deliver quality local public services in the absence of strong horizontal accountability to the people. Part of the problem may be technical in that the link between service delivery and tax payment is not strong; and this certainly constrains accountability. The larger issue lies outside the realm of the strictly fiscal however, and relates more to the political environment in which local governments operate. The stimulation of robust citizen demand for quality services, the efficient use of funds and the development of accountability mechanisms through which demand can be channeled are perhaps the greatest challenges facing decentralization policymakers today.