THE PROCESS OF DECENTRALIZATION AND LOCAL GOVERNANCE IN MOZAMBIQUE: Experiences and Lessons learnt

Contents:

1. The Historical Background
2. Introduction
3. Legal and policy framework
4. The Local Government Reform Programme in Mozambique
5. Civic participation in Municipal Governance
6. Lessons learnt

1. Historical Background

The Local Government Reform process in Mozambique dates back to 1978. It began as a part of the process of dismantling the colonial state apparatus, which began after National Independence in 1975. The Mozambican administrative reform laws replaced the Portuguese colonial administrative structures and constructed a new system of governance structured at the national, provincial and local levels.

Meanwhile, the local governance system in Mozambique is not a new reality. In fact, it existed during colonial period. By then it had a legal Diploma - the Overseas Administrative Reform (RAU) of 1933, institutionalizing local governments, known as town councils (Camaras Municipais), municipal commissions and local juntas (juntas locais) all of them integrated in the so what was called the administrative bodies (corpos administrativos). This system of local government was very discriminatory in nature; the system was mostly operating in the urban areas where a big bulk of the Portuguese settlers lived. This form of administration was in force till 1978.

Hence, after independence Mozambique adopted a system of centralized administration, where each and everything was planned and decided at the centre of political power. The approach was an answer to:

• Meet the needs of the state;
• Defend/safeguard and consolidate the national independence;
• Achieve planned socio-economic measures;
• Use rationally the scarce resources and;
• Consolidate a unitary state.

Nevertheless, the colonial local government system was abolished in 1978 by the Laws no. 5/78 and 6/78 of 22 April and were replaced by the executive councils as the executive bodies of the cities and districts assemblies, established by law n.7/78 of 22 April. The executive councils were composed of a chairman or administrator appointed by the central government and three to five members appointed or elected by the city or district assembly whatever the case might be.

The lack of human and financial resources resulted in a sharp deterioration in social and economic infrastructures and the inability of the executive councils to render basic services to the population. Thus, the organization of the 1978 local government system defeated the rationale of their existence. As from 1983 it was publicly and officially recognized that Mozambican administrative system was excessively centralized.

Hence, in 1987 a national public debate on decentralization and autonomy of the local government was held throughout the country and it concluded that the state was top-heavy at the central level, and very weak at provincial and district levels.

This national debate motivated the people's Assembly to pass Law n.2/87 of 19 January. This law authorized or permitted the Council of Ministers (The Government) to formulate statutes of administrative and financial autonomy. The cabinet therefore, was authorized to grant such autonomy to bodies and institutions whose nature justified it, and which could gradually become financially self-sufficient.

The Law n.2/87 was two-fold. First, to promote greater popular participation and accountability of the district assemblies and their executive councils. And secondly, to provide for close co-ordination between the cabinet and provincial governments in the decentralization of administrative and financial powers to districts. This second phase of local government reform come to an end after the adoption of the 1990 Mozambican Constitution.

2. Introduction

Mozambique is currently undergoing a process of social and economic transformation. The agenda of this transformation include amongst other things, the implementation of a decentralization policy, which is expected to stimulate democracy, political equity and people's active participation at the local level, through autonomous and democratically elected local governments. This, in turn would enhance accountability, transparency and good governance, on one hand. Also it is expected that the decentralization would increase management efficiency, efficiency in financial performance through increased revenue generation and rational expenditure decisions, as well as it would provide a better environment for public-private partnership (PPPs), on the other.

As governance is closely linked to both development and peace, development strategies can more effectively be pursued when widespread people's participation supports commitment to shared vision. Furthermore, government institutions and national development provide a platform for peace and stability, which further strengthen economic progress and development. When peace, development and governance processes coincide, one can usually identify effective institutional arrangements, streamlined decision-making processes, inclusive policy formulation, participatory implementation capacity, multidimensional information flows, and a vigorous partnership between the government and society.

Furthermore, in order sustainable governance to emerge, strong leadership capabilities and civil society empowerment are needed, particularly at the local level. Government institutions and administrative machinery need to be capable of stimulating economic development, managing mechanisms of conflict resolution and prevention and delivering programmes for social development. Appropriateness and success of these policies and operations depend upon widespread people's participation in policy dialogue and implementation strategies that involve private, non-governmental organization and community-based organizations, in particular.

The important principle underlying the new municipal system in Mozambique is popular participation as a basis of legitimacy. The Mozambican Government recognized and acknowledged the fact that the successful implantation of decentralization and democratization in the rural areas requires the reestablishment of legitimacy and trust between the citizens and the local administration. The government believed that such legitimacy and trust could be established by for instance, providing local administration and it should receive resources to enable them to improve that image within the communities and also permit citizens to make conscious choices of their local leaders.

3. Legal and policy framework

A Constitutional reform of multiparty democracy was approved in 1990, and the General Peace Agreement signed, in Rome, in 1992. In the very year (in 1992), a Local Government Reform Programme (PROL), sponsored by the World Bank was set up within the Mozambique's Ministry of State Administration (MAE). It aimed at reformulating the existing local government system, endowing local authorities with own legal status distinct from that of the state, and with administrative, financial and patrimonial autonomy. The Local Government Reform (PROL) carried out municipal development projects in five provincial capitals: Maputo, Beira, Quelimane, Nampula and Pemba, producing structure plans for all.

In 1994, the Parliament passed the Law n.3/94, on the institutional framework for Municipal Districts. Under this Law, Rural and Urban Municipalities were to be elected. However, later in 1994 the first multiparty general and presidential elections took place. But the opposition political parties represented in the Parliament in gained a substantial number of seats in the Parliament.

The opposition political parties asked for a new Law to be drafted. These first amendments to the Constitution (Law n.6/96) introducing the Local Power (o poder Local) under which is accommodated the legal framework for decentralization and Municipalities in Mozambique. In 1997, the Mozambican Parliament approved Local Authorities Legislation, comprising of the legal and institutional framework for Local Authorities (Law n.2/97, and Local Finances Law n.11/97). According to Law n. 2/97, the local authorities were established as population and territorial units, endowed with their representative (the Municipal Assembly) and executive bodies (Municipal Council) with administrative, financial and patrimonial autonomy.

The Law of local finance gives powers to local authorities to raise their own revenues and to conduct their finances in an accountable and transparent manner. Local authorities must prepare a financial plan in accordance with Municipal Plan (a five-year plan) in respect of all their powers, duties and objectives. Municipal authorities may impose taxes and income, property, economic activities in areas of industry, trade and provisions of services. Their own revenues also include fees for advertisements, constructions, cemeteries, some permits and various licenses for economic and professional activities. The Central Government continues to collect taxes, for example since the municipalities do not have a proper structure for revenue collection. Apart from the above-mentioned undertakings, there are other activities that are underway such as the drafting of the finance complementary legislation. This is the case of the Municipal tributary/Taxation code. Moreover, this particular exercise was discussed at the Municipal National meeting held in December 2000 and it is pending the approval by the cabinet or the Council of Ministers.

Taking into account that the financial needs are higher if compared with the capacity to raise local revenues, the Central Government makes transfer funds via the so-called Municipal Compensation Fund. In addition, the central government may transfer funds for local investment in order to complement and reinforce the local investment capacity.

4. Local Government Reform programme in Mozambique

The 1990 Mozambican Constitution laid down the foundation for the third phase in the evolution of the organization and operation of local government. First, this Constitution opened the Mozambican political system to multiparty democracy and the economic system to market economy. These political and economic reforms demanded transformation in the form and aims of the political and administrative organization of the state so as to bring it into line with the new political and economic model.

In chapter IX of the 1990 Constitution introduced far-reaching change, when compared with the 1975 Constitution. This chapter provides for a model of organization and operation for local government, which found its first legal expression in the institutional framework for municipal districts' Law n.3/94 of 13 September. This local government reform programme resulted from an evaluation of the state of local government since independence in 1975 and the national debate on decentralization and autonomy of local bodies.

The underlying philosophy of the Mozambique's Local Government Reform Programme (PROL), is that the government began to establish municipalities in terms of municipal government system enshrined in Law n.3/94. The new municipal government system is based on the following constitutional principles:

1. The principle of autonomy, which include administrative, financial and patrimonial autonomy;
2. The principle of multi-party democracy and popular participation;
3. The principle of representativeness or representative democracy, which allowed citizens to elect or to be elected their municipal Councillors and mayors and;
4. Respect for, and collaboration with, traditional authorities or community leaders.

The institutional framework from the municipal Law also incorporated the principal of gradualism. The principle of gradualism was not based on the need for central government control, but the need for building the essential factors for administrative, financial and patrimonial autonomy, and the rehabilitation of productive activities in the urban and rural areas so that they can form the objective and subjective bases for collecting the municipal functions. In other words, the principle of gradualism is adopted for the purposes of building capacity before any locality is transformed into a municipality.

The first multiparty elections were planned for 1996, but were held only in June 1998, after being postponed for more than three times. They took place in 33 Municipalities (23 cities and 10 boroughs). The elections were characterized by vote apathy; the opposition political parties boycotted them and less than 15% of the voters turned out. In some places, there were also several independent candidates. FRELIMO - the ruling party, gained the posts of Mayors and got the majority in municipal assemblies of all the elected local governments.

The Municipal Organs

Each municipality has the following bodies or office holders:

(i)

1. The Municipal Assembly composed by members elected directly by the population in a universal suffrage. The parties appointed their list of candidates in a preference order, voters voted only for a party list;

(ii)

2. The President of the Municipal Council or the Mayor - who is the singular Municipal Executive Organ also elected directly by the general public;

(iii)

3. The Municipal Council - the collegial Executive Organ composed of the Mayor and Town Councillors nominated by him, at least 50% of the Town Councillors must be drawn from the Municipal Assembly. The number of Town Councillors varies according to number of voters.

As operational decision-makers, Town Councillors supervise the implementation of the Municipal Assembly and the Municipal Council decisions by the technical departments and municipal services. They also advice the Mayor about procedures and regulations towards the implementation of Municipal Plans and its annual programme and budget.

Those cities, that already had Executive Councils, only transferred their responsibilities, functions, personnel and property to the new elected bodies. The remaining 10 cities and boroughs had to create everything from zero.

In some places, difficulties have arisen between the elected bodies (Municipal Assemblies and the Mayor) and their respective Municipal Councils. Occasionally there have been some conflicts of interest when a municipality was separated from a district, which previously were under the same government unit.

In addition, there still many open matters in urban management or local government framework. Particularly, the interpretation of the existing municipal laws is still open, e. g. regarding to the mobility of human resources and still more critical local finances, mainly the not yet approval of the Local Authority Taxation Code. It is a vital instrument to guide municipalities in administering local taxes.

Moreover, the mechanisms to collaborate and co-ordinate with traditional authorities or community leaders have been recently clarified by a Decree of the Council of Ministers - A Decree n. 15/2000 of 20 June. It is because at the community level, there are several potentially influential personalities and institutions such as religious leaders; heads of families, representatives of political parties, the situation varies from place to place.

Those districts and 58 boroughs, which were not included in the 33 municipalities, remain still in the old position. Their leaders, administrators are nominated/appointed by the central government, and they have strict tutelage of the provincial government by delegation either by the Minister of State Administration or the Minister of Planning and Finance depending on the matter or the conflict that may arise, e.g. administrative or financial matters.

The creation of municipalities, local governance and de-concentration of resources is still in its embryonic phase in Mozambique. The process will be implemented gradually, but the timetable is totally unclear, and it is foreseen that it might yet take several years to include or transform all the districts as municipalities.

Despite difficulties of different kind the elected bodies (the Mayors Municipal Assemblies and the Executive Councils) have started performing their duties. The first course organized by the Ministry of State Administration in 1998 for the elected bodies was a singular opportunity to harmonize a clear understanding about the new municipal legislation and the way forward for the implementation of the organizational structure and the functioning of the municipal organs.

5. Civic Participation in Municipal Governance

One of the " good practices in local government" in Mozambique is first of all the outstanding political will of the Government of Mozambique in introducing and implementing the decentralization policy and enshrining it in the Constitution.

Secondly, is the merit of the government's knowledge and understanding the importance of involving people to participate in the planning and implementing changes, it makes and enables the development process sustainable. Therefore, it has brought about an enabling legal environment so as to guarantee that the philosophy of the envisaged social, economic and political planned changes could have a legal base or existence.

Meanwhile, after the amendment of the 1990 Constitution, we witnessed the approval, by the parliament, of vital legislation for local social and economic development in the country.

Special mention is placed to the approval, by the parliament, of the legislation allowing people to participate fully in the ongoing social, economic and political activities. As to cite some examples, on 28 May 1997, the Mozambique's Parliament passed Law n.6/97 - Municipal electoral Law. This particular law allows apart from the political parties, citizens, in particular those who do not belong to a political party, non-politician citizens to campaign for municipal elections, for a Mayoral or member of Municipal Assembly positions. The citizens may campaign therefore, as independent or as group, provided s/he obtains 1% of signatures from the citizens registered for electoral purposes from that particular municipality, article 97 b) the municipal electoral law.

As an evidence of this fact, in June 1998, Mozambique contacted local government elections, at the first time in its history, in 33 municipalities. Abstention or boycott marked the elections by the opposition political parties and less than 15% of the voters turned out. In some places there were also independent candidates and scored relatively high vote for an opposition list of independent local citizens.

For instance, in Beira Municipality, the Group for changes (GRM), has 17 seats out of 44; Citizens of Manhiça (NATURMA) from Manhiça Municipality, managed to secure 5 seats out of 13; Together for the City (JPC) from Maputo City Municipality, has 15 seats out of 59; Mozambican United Movement (RUMO) from Matola Municipality, has 7 seats out of 43 and; Friends of Nacala-Porto (OCINA) from Nacala Porto, has secured 11 seats out of 39, respectively.

The Law n.15/2000, of 20 June allows traditional authorities and leaders from other congregations to articulate with Organs of the State for any matter that may arise within the jurisdiction of that particular Organ of the state.

However, the contribution of these civic groups has been very instrumental in the resolution of most of the municipal problems, such as management efficiency, accountability of public funds, revenue generation.

Most of citizens have recommended more civic education on the process of decentralization and local governance for the purposes of making the contribution of civil society sustainable and other stakeholders more effective and efficient.

Despite of the difficulties, which the ongoing social, economic and political changes facing Mozambique today, it is regarded internationally as a model of successful political transformation. The country has successfully implemented a transition from war to peace, from one-party state political system to a fully-fledged multiparty democracy with respect for individual freedoms, which brought a climate of political stability.

The economic performance of recent years has been acclaimed worldwide as it marks yet another successful transition, from a centrally planned, socialist oriented economy to market economy. Over the last five years, Mozambique enjoyed one of the highest growth rates in Southern Africa.

6. Lessons learnt

The lessons learned from the process are that most civic groups do not have enough understanding of the decentralization and local governance process. Hence, more civic education is still being needed in order to enable citizens to know their rights and obligations in this process. Because it will enable them to participate effectively and efficiently in municipal governance, in particular those who are members of the municipal Assemblies.

Also another lesson learnt from this exercise that the civic groups represented in the municipalities act and work in a partnership in rendering the goods and services, to their constituency.

Therefore, the contribution of these civic groups has been very instrumental in the resolution of most of the municipal problems, such as management efficiency, accountability of public funds, revenue generation and so on.

Most of citizens have recommended more civic education on the process of decentralization and local governance for the purposes of making the contribution of civil society sustainable and other stakeholders more effective and efficient.

In the forthcoming local government elections, any local communities may ask the Government to allow it to transform their locality into municipality, if it proves that that particular geographical territory is enjoying social, cultural and economic development. Actually, the Parliament is in the process of revising the Municipal legislation so that these issues are accommodated..

Despite of the difficulties, which the ongoing social, economic and political changes facing Mozambique today, it is regarded internationally as a model of successful political transformation. The country has successfully implemented a transition from war to peace, from one-party state political system to a fully-fledged multiparty democracy with respect for individual freedoms, which brought a climate of political stability.

The economic performance of recent years has been acclaimed worldwide as it marks yet another successful transition, from a centrally planned, socialist oriented economy to market economy. Over the last five years, Mozambique enjoyed one of the highest growth rates in Southern Africa.

In fact, local Government Reform in Mozambique is at its embryonic phase comparatively to other countries in Africa. However, according to the municipal national meeting report, held in December 2000 at "Pequenos Libombos" in Maputo, lots of activities have been carried out and others are underway too.

On the grounds of the reports presented by the Municipal Executive councils and Municipal Assemblies at that national meeting, there are some problems concerning on many issue and that deserve a careful treatment. Among them are problems related to:

• power conflict between the municipal Executive Body and the Municipal Assembly;
• Misunderstanding between the municipalities and the state organs at various levels;
• Weak domain of the municipal legislation
• Lack of guideline for the usage of the municipal legislation;
• Lack of vital municipal complementary legislation, such as the municipal taxation code;
• Lack of technical competence most of the municipal employees;
• The services being rendered are not of high quality;
• Delays in the elaboration of the municipal budget
• Lack of funds for investment of the projects that have high social and economic impact and;
• Others.

Due to these and other constraints it has been recommended for the urgent design and implementation of a capacity building programme. Meanwhile, most of the Councillors and technocrats must be submitted to objective training programme. The training should be objective oriented in that, they should be trained in those subjects that are applicable to their daily responsibilities.

Also it is recommended to drafting of the municipal complementary legislation, the Municipal Taxation Code in particular.

Coordination among and between the Municipal Executive Councils and the Municipal Assemblies and the Municipal Organs with the Organs of the State, is another recommendation.

The municipalities should conduct study tours to other municipalities around the SADC region so that they can share experience, information and, information technology. It should help them to solve some of the problems that are facing.

CAPETOWN, MARCH 2001