Table of Contents

• John Ohiorhenuan, Resident Coordinator, UNDP, South Africa
• James Murombedzi, Ford Foundation, Johannesburg
• Tatsuya Miki, Counsellor, Office of the Consul of Japan, Cape Town
• Normand Lauzon, Executive Secretary, UNCDP, Opening Statement
• Mr Abdoulie Janneh, Assistant Administrator and Regional Director, UNDP, New York
• Mr Elroy Afrika, Deputy Director General, Department of Provincial and Local Government, South Africa

John Ohiorhenuan, Resident Coordinator, UNDP, South Africa

It is my great honor and privilege to welcome you to this regional symposium in my capacity as Resident Coordinator of the United Nations System in South Africa, and as Resident Representative of the United Nations Development Program.

In this new century, as the states of the world become more interconnected, the United Nations is playing a central role in shaping international policy on issues such as human rights, the environment, conflict prevention, and making globalization work for the poor.

African societies are changing rapidly under the combined pressure of insistent globalization and demands for democratization. Deepening democracy naturally implies greater decentralization, as it enables communities to participate more effectively in the development process. There is no doubt today that economic and social progress is contingent on good governance.

Governance, broadly defined as the exercise of political, economic and administrative authority in management of all levels, involves the complex mechanisms, processes, relationships and institutions through which citizens and groups articulate their interests, exercise their rights and obligations and mediate their differences. Good governance revolves around participation, transparency, accountability, rule of law, effectiveness and equity.

Certain fundamentals are therefore, central to the development of capacities to ensure the participation of all stakeholders and the sustainable delivery of basic social services, paying particular attention to the voices of the poor and the marginalized. It is at the local level that such an approach is most effectively implemented. And we in the UNDP are committed to supporting these processes.

Here in South Africa, apartheid fundamentally distorted the spatial, social and economic environments in which people live, work, raise families, and seek to fulfill their aspirations. Against this heritage the Government of South Africa is fostering a strong synergetic partnership among central and local governments, civil society organizations and private institutions in pursuit of a just society.

Local governments have been assigned a critical role in reshaping and strengthening local communities as the basis for a democratic, integrated and prosperous non-racial society. UNDP supports various programs that focus on governance issues and poverty reduction strategies in South Africa. Of particular interest to this workshop is our Program on Capacity Building in Local Government (CBLG).

The current capacity of local government poses a major constraint at the very time that they are being called upon to shoulder greater responsibilities with respect to economic and social development. Shortages of skills, particularly in the financial and administrative areas, compromises the ability of many local government structures to promote development and deliver public services effectively and efficiently.

The CBLG program seeks to contribute towards achieving sound developmental local governance by enhancing the capacity for financial viability and management, integrated development planning, local economic development, project management and by helping to nurture a culture of collective civic responsibility. The program initially focuses on a selected number of local governments in the Northern and North-West Provinces. It also aims to establish information sharing systems on lessons learned and best practices. Lastly, it provides strategic advisory services to governmental institutions at national, provincial and local levels. One such advisory service of the CBLG program has been the technical assistance it provided to the Department of Provincial and Local Government in drafting a National Strategy for Capacity Development towards Good Local Governance.

To conclude, I urge you to consider another issue not generally associated with decentralization. HIV/AIDS poses a serious threat to development in Africa. In the not-so distant future, it will place a huge strain on local communities. We must begin now to pay particular attention to strengthening the capacity of local governance structures to combat the further spread of HIV/Aids and to respond the impact the disease has on the community as a whole. I believe there are lessons to be shared here on decentralization as a central feature of an effective HIV/AIDS strategy.

James Murombedzi, Ford Foundation, Johannesburg

The crisis currently engulfing African is not just economic, it is also legal, human, political and social. The unprecedented and unacceptable proportions of this crisis are not just because of the overall decline of indicators of economic growth but also in terms of the human suffering, hardship and impoverishment of the vast majority of African people.

The political context of socio-economic development on the continent is one characterized by the over-centralization of power, but also by unnecessary impediments to the effective participation of the overwhelming majority of African people in social and economic development. As a result the motivation of the majority of African people and their organizations to contribute to development has been severely constrained. This has curtailed individual and collective creativity which remains undervalued and underutilized in the African context. A nation cannot be built without the full popular support and participation of the majority of its citizens and nor can the economic crisis be solved by governments' alone. It is, after all, to the majority of African people that the benefits of development should and must accrue. Therefore the ultimate goal of human centered development can and must be prioritized. Africa has no alternative but to transform its national economies to ensure long term sustainable economic growth and development which is human centered and participatory in nature in terms of both sustainable growth and development.

In addition, the current environmental and ecological crisis facing the African continent cannot be resolved outside of sustainable development. Commanding the full support and participation of the people is therefore critical. It should be noted that popular participation is a means, and an end. As an instrument of development, popular participation provides a means for ensuring collective commitment, for the determination of people based development processes, and a means of ensuring the willingness to make sacrifices to the ends of development. As an end in itself, popular participation is the fundamental right of the people to fully participate in the processes which determine their lives and livelihoods. Popular participation is the means through which the people are empowered by being involved in the creation of policy and processes which affect them. Therefore public processes and institutions should be opened up for allowing freedom of opinions, suggestions and dissenting views. Effective participation should be assured. This requires action on the part of the state and international organizations, as well as local communities.

In view of the crucial contributions made by women in African societies and the extreme subordination and discrimination suffered by women in Africa, the attainment of equal rights in social, economic and political spheres must become a central feature of democratic and participatory pattern of development and should be prioritized by society as a whole.

The Ford Foundation, through its regional offices in West, Northern, East and Southern Africa supports innovative institutions, programs and people who are working towards developing lasting solutions to these crises, through partnerships with a broad range of institutions and partners, both internationally, nationally and through local non-governmental organizations.

The Foundation supports in particular policy development, advocacy, research and training in the areas of:

• Peace and Social Justice;
• Sexuality and Reproductive Health;
• Environment and Development;
• Media, Arts and Culture.

In context of the forging of such innovative partnerships that the Ford Foundation views this symposium as the beginning of positive long term collaboration.

Tatsuya Miki, Counsellor, Office of the Consul of Japan, Cape Town

I am especially pleased to participate at this crucial juncture of Japanese Relations with Africa. These relations have been recently boosted by a visit of the Japanese Prime Minister to Africa in January, the first ever official visit of its kind.

Due to the pace of globalization, the issue of decentralization (an area previously held to be a matter of domestic policy) has become an important item on the agenda of decentralization based on participation by local people and or local Non-Governmental Organisations (NGOs)l in development.

In developing states a significant effort has been made to promote a new form of International Development Cooperation. For example, some believe that decentralization could have negative effects on economic growth, and thus cling to notions of the need for centralized government. Decentralization must be recognized as something which promotes stability and helps to ensure medium and long term economic growth. Decentralization requires risk taking but is an important part of democratization and is an important element in achieving mid and long term economic growth and stability. In sum, decentralization is the foundation of grassroots democracy and a manner for local people's power to be effectively recognized and utilized.

It is important to take into account the political, social and economic context of each country, otherwise decentralization could cause social turmoil. In particular, the democratization of local politics, capacity building of local officials, building fiscal and administrative institutions, and the revitalization of local communities participation help to focus on achieving decentralization in a balanced manner.

The Government of Japan has assisted in decentralization and democratization in Africa in a variety of ways for example:

• Training programs in the field of Local Government Administration and Public Services;
• Active support to the UNCDF which provides assistance to least developed countries for programs promoting decentralization and good governance.

To conclude, I would like to cite our Prime Minister's speech which he made on his visit to Africa earlier this year:

"The 21st Century is a century in which Africa will make big strides and there will be no prosperity and stability in the world in this century unless the problems of Africa are resolved. Japan in its part is committed to making a maximum contribution to assisting Africa's own efforts towards prosperity".

Normand Lauzon, Executive Secretary, UNCDF, Opening Statement

On behalf of my colleagues in UNCDF and myself, I would like to thank all of you for supporting and attending this conference.

Let me sincerely express our gratitude to the following:

• The Government of the Republic of South Africa, and the Honorable Minister Mufumadi for agreeing to host and participate in this regional meeting;
• Honorable Minister Jaberi Bidaandi Ssali, Uganda; H.E. M.Ousmane Sy, Mali; Honorable Brigadier Ngwilizi, Tanzania for sparing their very valuable time to be with us here in Cape Town;
• The University of the Western Cape and Professor Chris Tapscott for supporting us and choosing this wonderful location we are in;
• My colleague Abdoulie Janneh, Assistant Administrator and Director of the Africa Bureau;
• John Ohiorhenuan, Resident Coordinator and our colleagues in UNDP for the support in the preparations of this meeting;
• The Government of Japan and the Ford Foundation for co-funding the conference;
• Mr. Charles Katiza , Secretary General of the Africa Union of local Authorities;
• And all of you, Senior government officials, researchers and heads of non-governmental organizations, for the advice and feedback on the themes for this conference.

The challenge we face in this meeting is to advance the agenda of decentralization and local governance in the Africa region, and to ensure that we attain the goal of poverty reduction and sustainable development. Most of our partner governments are critically aware of the importance of promoting and strengthening good governance, and recognize decentralization as a key instrument in promoting good local governance. UNCDF and the other donor and support agencies recognize this potential and seek to enhance it , in order to induce broader institutional changes which will benefit local communities, and which can significantly empower the poor and the disadvantaged groups.

The themes chosen for this conference are at the center of the implementation challenges we face in translating decentralization policies into reality:

! The challenge of transforming and strengthening the broader institutional and political system into a pro- active and pro - poor environment; ! The challenge of ensuring that national resources are effectively channeled through systems of intergovernmental transfers to local governments and local communities; ! The challenge of empowering local communities to control and utilize their natural resources; ! The challenge of being able to achieve meaningful economic development-increasing incomes, employment and services.

I do hope that at the end of this week, when we close this conference, we will be able to say that in a very small way that we have made a difference:

! That we recognized that while each country has its own very specific context and history, there is also a great deal of common ground in our experiences and in the challenges we face this is certainly what emerges both from UNCDF's operational experience in some 15 countries in the region, and from our initial consultations in preparing this symposium; ! That in sharing these experiences and discussing these challenges we have encouraged and inspired each other, and helped one another to overcome the sense of isolation we can often feel in our daily work. This symposium is indeed very much a response to a frequent plea from our colleagues in the region for greater interaction with their peers and neighbors; ! That we all - policymakers, practitioners and scholars alike - gained new insights into promoting decentralization in the countries where we are working, and into more effective ways of supporting and empowering the poor ultimately the only real measure of our success; ! And, finally, that we agreed on an agenda for the future, by identifying issues and areas where we can continue to exchange and ways whereby all those here can continue to collaborate over the longer term.

For our part, UNCDF is firmly committed to facilitating greater exchange and networking between policy-makers, practitioners and researchers in the region, and to supporting your efforts in strengthening local governance in the region. We therefore see this symposium as simply the first step in a process of much greater interaction between us over the years to come.

Mr Abdoulie Janneh, Assistant Administrator and Regional Director, UNDP, New York

It is my sincere belief that this conference will greatly contribute to the attainment and promotion of good governance in Africa. It is also appropriate to thank our partners here, the donor community, the academic community and Civil Society Organizations for their committed effort to furthering the cause of good governance in Africa. It is indeed in building strong partnerships that we will succeed in attaining this goal.

This conference is taking place in a moment in which the UNDP is undergoing structural change. Over the past year, we have undertaken internal and external consultations with our staff members, our country offices and key partners in the Development Cooperation Framework with the main objective of refocusing and main streaming the main preoccupations of our program countries and building synergies in fulfillment of our main mandate of poverty eradication. It is in this context that governance was confirmed as the key priority and focus area for UNDP work.

There is a clear link between improved governance and development. Accountability and transparency leads to efficiency of service delivery. Good administration of justice encourages more participation, which means more talent and better collective effort in solving the problems facing our societies, while efficient management systems make better use of resources and attract more investments. Thus better governance creates an enabling environment for economic growth and human development.

In this regard, UNDP will continue to support efforts of program countries in the promotion of good governance. I strongly believe that it is through the sustained promotion of meaningful governance that our program countries will be able to meet their Human Development Goals.

Therefore UNDP attaches a lot of importance to the outcome of deliberations of this conference over the next few days, as we are sure they will provide pointers for UNDP future activities in the area of decentralization as the major component of the governance equation in Africa. There are no more meaningful ways of empowering people than decentralization and strengthening of local government structures. Decentralization increases people's participation in the management of a country's resources as it also enhances their chance of access to services and provides them with an opportunity to provide these services. There s also an increasing commitment to decentralization in Africa. Significant progress has been made in decentralization in many countries, Tanzania, Uganda, Ghana and Mali, to mention but a few, and the presence of several ministers at this gathering testifies to this commitment. However, many countries continue to face important challenges as they proceed to operationalise their policies. While I am sure these will be discussed, let me highlight two issue areas from the perspective of the UNDP.

Firstly, the capacities of local authorities in the areas of strategic planning, administration and operational management are often non-commensurate with the development needs at the local level. With prevailing high illiteracy rates in some African countries, program countries continue to face difficulties in attracting manpower capable of absorbing modern techniques of public administration, including information technology.

Decentralization works where there is a critical mass to blend ideas from central government and local structures and to translate them into effective policies that respond to the aspirations of local communities. In other words, there is a need to promote decentralization in places which are properly equipped to make good use of it. The big challenge we thus face is to identify adequate measures and policies to be implemented in situations where this critical mass is absent.

The lack of trained human resources in many of our countries makes it difficult to extend government structures on a nation-wide basis. In such countries, government structures are often not represented at the decentralized level and tend to become to weaker as we go from urban areas, state or provincial capitals to rural areas. Quality of services also tends to vary between central and local structures of government.

Some countries have responded to this challenge with ideas of gradual decentralization, making this contingent to the existence of capacity, while others have sought to strengthen local governance structures via transferal of capacity from central to local government levels. However, more effective responses may be found. Naturally this raises very serious challenges in terms of fiscal decentralization, tax collection and community development.

The second challenge to decentralization is the question of local authorities versus elected officials, which reflects the contradiction between modern and traditional forms of statehood. Political theorists have argued that human beings respond better to rules and regulations governing their interactions if these norms and regulations are compatible with their cultural milieu.

Experience has shown that policies that tend to ignore the existence of traditional authorities have often led to political immobility and or conflicts. Yet in places where they are given more prominence than formal state structures they have tended to slow down the process of development. Also, in many places traditional values have been used as an excuse when individual human rights have been violated.

It is therefore imperative to find ways in which traditional authorities, and their political and social institutions, can be given adequate recognition and encouraged to play a positive role in human development and in the combat of poverty.

UNDP attaches a great deal of importance to strengthening local governance on the African continent and we have been working with a variety of stakeholders, from governments, to academic think tanks and NGOs, and CBOs. Our work includes capacity building to improve management skills and capacity building at the local level, expanding development choices at the local level, supporting local elections, and strengthening local justice systems.

In conflict and post-conflict situations our work in local government has facilitated the disbursement of humanitarian aid, supported the rehabilitation of internally-displaced people, and supported the rehabilitation of state structures.

Later in 2001, UNDP Africa is planning to organize its fifth governance forum on the theme of local governance to be held in Maputo, Mozambique. This forum is a joint UNDP-ECA initiative begun five years ago with the support of some of UNDP donors, including Japan.

The objectives of the forum are:

• Seeking consensus in issues affecting governance in Africa;
• Encouraging consultations among national stakeholders on issues concerning governance;
• Encouraging consultation between governments of African countries and between these and donor communities and development agencies;
• Identifying crucial areas in need of support as a result of discussions at these fora;

The forum has drawn together a number of African countries and has been the inspiration for the improvement of governance. Many countries have adopted programs to improve the administration of justice, to promote the independence of courts, and have given recognition to the issue of human rights.

The Regional Bureau for Africa stands ready to continue its strong partnership with the UNCDF in order to ensure adequate and tangible follow-up to the conclusions of your important deliberations.

Mr Elroy Afrika, Deputy Director General, Department of Provincial and Local Government, South Africa

The purpose of this conference is particularly close to the heart of the Ministry that I represent here today. Post 1994, the new South African dispensation has established three tiers of government. While this is not necessarily unique in the world or in Africa, it is nonetheless a project that we feel is unique in many respects. We have, as part of the restructuring process, focused very deliberately on building a particularly strong tier at the local government level.

In building this decentralized system, we have sought to underpin it in the following ways. The first step was to entrench the system of local government within our constitution. Secondly, we have put in place a myriad array of legislative, political, fiscal and financial and various other policy instruments to assist in the process of building the capacity of local government.

Thirdly, the notion of a municipality or local government structure has been redefined in the South African context. The notion of developmental local government has come to the fore in this process; this term is used very consciously and deliberately. It is premised on three things:

• In speaking of municipalities, the constituent representatives are seen as elected officials and appointed officials, which is of course not new. However in our new dispensation, ordinary residents and citizens are now entrenched in legislation as forming the third integral part of our new conception of local government;
• Developmental Local Government is also now fundamentally linked to the notion of participatory local governance, and at the level of legislative and policy instruments, the latter notion has been given a more formal framework in which to be operationalist;
• When speaking of Developmental Local Government, we refer to a system which goes beyond normal service delivery. This form of local government attempts to tackle holistically the challenges of economic and social development.

In this new democratic dispensation we are aware that the policies, policy frameworks and systems which we put in place need to be constantly evaluated and questioned as to their appropriateness to meet the massive developmental challenges which South Africa faces. In a recent speech, which the Minister of Provincial and Local Government gave on the subject of Local Government and Good Governance, the content of Good Governance and Sustainable Development were explored. The meanings of these concepts in terms of the policies which we are putting in place, as well as the relationship between policies and the concepts of Good Governance and Sustain ability, are seen as crucial to the success of our decentralization initiative.

Finally, we realize that decentralization is not an end itself, and nor is good governance, they are necessary to achieve the ultimate objective, that is sustainable development.

The following section presents summarized versions of the papers presented in the three plenary sessions. Discussants comments and general panel discussions are summarized after each paper. Finally, broad themes which emerge from the three plenary sessions are summarized at the end of the Plenaries section. Longer versions of the papers will be made available in a separately bound volume, obtainable from the UNCDF (contact details are to be found on the inside front cover), as well as on the conference website (www.uncdf.org/capetown).