A Government initiative to develop an accountable local governance system is gaining momentum in Bangladesh. For the first time in its history of 137-year, 1,088 union parishads have participated in an entry audit, under the Local Governance Support Project (LGSP), among them, 1,060 UPs passed the audit and received expanded block grant (EBG) and capacity enhancement support in November 2007. The World Bank is supporting the LGSP, being implemented by Local Government Division of Ministry of Local Government, Rural Development and Cooperatives (MoLGRD&C),  with a commitment of US$111.5 million credit that will allow Union Parishads (UPs) to respond better to community needs and deliver services through a transparent fiscal transfer system.
Under LGSP, the Government will provide expanded Block Grant (EBG), estimated on the population size, directly to Union Parishads (UPs), provided they receive clean annual audits and take specific steps in improving the transparency of their budgeting and expenditure process. The project was initiated in 2006 and being implemented in phases, covering around 25% (1100) UPs each year, and eventually all 4,498 UPs will receive LGSP finance, provided they pass annual audit, prepare budget in a participatory manner and remain transparent and accountable to citizens. With increased funds, enhanced skills and management capacity, UPs and communities will be able to build and rehabilitate infrastructure, which will improve people’s mobility, enhance their access to services, markets and information, leading to increased income and well being of the community.
A recently-concluded World Bank Mission found that considerable progress has been made in the implementation of LGSP, especially UP orientation, arrangement of IEC campaign for citizens, and for the allocation of funds to UPs in 2008. Flood and cyclone affected UPs are using 2007 LGSP funds for rehabilitating community infrastructure, e.g. schools, clinics, embankments, roads, culverts, water and sanitation facilities, which is also providing employment and income to affected population.Â
In addition, the World Bank is also providing a non-lending technical assistance for local governance policy support, in partnership with the Swiss Development Cooperation (SDC). Government is undertaking speedy responses to emerging needs, especially activities supporting policy development in areas of decentralization and strengthening Local Government Institutions using NLTA. Under this program, members of Committee for Strengthening Local Government Institutions recently visited Kerala, and observed first hand effective decentralized local governance systems and its interface with citizens.
December 2007
Contacts:
S.M. Rezwan Ul Alam, (8802) 815-9015, Ext 4242
e-mail: salam3@worldbank.org
For more information on the World Bank in Bangladesh, please visit : www.worldbank.org.bd & www.worldbank.org
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