The incomplete devolution

The slogan that accompanied the launching of the local government system by the Musharraf government was 'devolution of power at the grass roots level.' Seven years on, a World Bank study presents a very different picture, saying the administrative devolution remains incomplete.
It offers the convincing explanation that one of the major motivations behind decentralisation was to create political allies of the regime at the local level to counter its opponents at the national and provincial levels. It was done in a way that made local governments dependent on the federal and provincial governments in financial as well as administrative matters.
The study further points out that having limited authority to raise taxes in order to meet their expenses, the local governments have had to rely on grants received from provincial and federal governments. In fact, there are numerous examples that show the upper two tiers of government have been using the grants to pressurise uncompromising local governments belonging to the Opposition parties.
Reverberating a long-standing public demand, the report calls for an effective fiscal transfer system that should be predictable and formula-driven. The objective, of course, is that the recipients should know what to expect so as to plan accordingly. It is also to create a balance between unconditional and conditional grants so that local governments can exercise a certain level of autonomy and the upper two tiers of government a say in specific service delivery projects they deem necessary.
The study says the local governments have limited authority over their staff, which is provided by the provincial governments who retain their officers' allegiance. This is not the only constraint. Right from the beginning the system was set up in a way that handed the President, via provincial governors, the authority to act as the final arbiter in a provincial and local government dispute such as the one that erupted between the last NWFP government and a local government.
To further control recalcitrant city/district government heads, about two years ago the Sindh and Punjab governors issued ordinances, making the survival of city/district nazims dependent on the goodwill of the pro-Musharraf chief ministers. These distortions in the system need to be removed through a meaningful decentralisation exercise. Local stakeholders must also have greater involvement in the local affairs.
The National Reconstruction Bureau tried to do that a while ago through the Citizen Community Boards as well as special training programmes for junior and mid level officers. Those were commendable efforts. But the truth of the matter is that as long as provincial government officers have to work for the local governments, their loyalties and commitments will remain divided, tilting towards the bigger and more powerful players in the provincial governments.
As we have been suggesting in these columns before, there is need to create a district government cadre along the pattern of provincial and federal civil services. The jobs in the district cadre, whether filled by the local people or outsiders, must be non-transferable.
The idea is that those deciding to work for a local government should also have a long-term commitment to serve it. Now that a new elected government is in place, it must take a fresh look at the various issues hindering devolution of power at the grass roots level.