Local Governance in Bangladesh

Public sector governance and service delivery arrangements in Bangladesh are among the most centralized in the world. Less than two percent of total public spending flows towards the delivery of local services, with the bulk of resources provided on a highly conditional basis. Strengthening local governance through intergovernmental fiscal transfers, community participation and oversight has been identified as an important element of the Poverty Reduction Strategy Paper (PRSP) of Bangladesh. This builds on a policy commitment to strengthening institutions of local governance that are important steps towards reducing poverty and enhancing basic local service delivery.

Policy support for local governance is largely expressed as strengthening the role of City Corporations, Pourashabha, Upazila and Union Parishads through regular elections and greater financial powers for local governments. There is, however, a disjuncture between this desire for political decentralization and the extent of functions and resources provided to local governments. While representatives may be elected at local government level, they do not have the authority or resources to successfully undertake activities that their constituents have elected them to perform. On the demand side, meaningful citizen oversight of local governments is also lacking. This undermines the extent to which citizens are able to hold local government representatives accountable for their performance. At another level, it limits the capacity and ability of elected representatives to oversee activities performed by non-elected agencies at the local level. As a result, an independent third government linking the center and public service delivery systems to communities is yet to emerge.

Key challenges for strengthening local governance in Bangladesh

Greater devolution of government has a great potential to enhance the quality of local public service delivery and in encouraging local resource mobilization. Decentralization, however, is a complex process and needs to be carefully thought out. Some of the key challenges that Bangladesh faces in her governance reform journey are:

- What functions should be assigned to local governments and at which tiers?
- How should local governments be financed?
- How can systems be strengthened so that citizens can hold their local governments accountable?
- How can information management systems (MIS) be improved that support policy formulation and planning?

-Facts about Local Government System in Bangladesh

The Local Governance Support Project (LGSP): 2006-2011

The LGSP was initiated in July 2006 with financial support from World Bank, UNCDF/UNDP, EC and DANIDA. This is currently being implemented by the Local Government Division of the Government of Bangladesh. The LGSP uses the principles of expanding discretionary resources to UPs while strengthening citizen oversight and output monitoring. The project allocates block grants to participating UPs in a predictable way while building accountability measures to ensure that the funds are used effectively. The project also provides capacity building support to local governments to carry out planning, project management during implementation, and monitoring to evaluate project outcomes. It is anticipated that by 2011, 95% of the UPs will receive EBG, be transparent and accountable to citizens and improve local development.

-Local Governance Support Project
-UP's receiving LGSP funds in FY09

Non-Lending Technical Assistance (NLTA) Program on Policy Reforms for Local Governance: 2007-11

The World Bank is also providing programmatic non-lending technical assistance (NLTA) in partnership with Swiss Development Cooperation. The objective of this NLTA program is to provide knowledge and support to complement both the ongoing LGSP and the broader local governance and decentralization reform agenda. Specifically, this policy support includes (a) Broadening the knowledge base on decentralization in Bangladesh through supporting the national policy dialogue on the need for Local Governance and decentralization reforms; (b) strengthening local systems of accountability and citizen voice; (c) Expanding the long term technical capacity of Government to develop and manage a system of multi-tiered governance.

-NLTA Concept Note
-Summary of NLTA Activities