Programme description

Title: Local Governance and Poverty Reduction Support Programme
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Ghana
Lead executing agency: Ministry of Local Government and Rural Development
Overall term: 2007 to 2013

Context

Decentralisation has been taking place in Ghana for over 20 years. The reforms have met with some success, but have also faced many challenges that derive from the existing system. Prominent amongst these challenges are the inconsistent legal and policy framework, an  inadequate public accountability system, the largely centralised management of human resources, and inconsistencies in institutional arrangements and the allocation of roles and budgets. As a result, the local and regional authorities are unable to perform their assigned functions effectively or to provide the necessary services. At the same time, the social and political weakness of civil society means there is too little public pressure to ensure accountability.

This situation does not comply with the level of devolution that the Ghanaian constitution prescribes. Under the constitution, responsibility for local decision-making, financing and project management lies with local governments. The constitution also calls for the involvement of non-state actors at the local level, and for budgetary funds to be available to local authorities to help them deliver services effectively.

Objective

At the national level, conditions for effective local government have improved. At the same time, the capacities of institutions at local and regional levels have improved and political participation in the decision-making process has risen.

Approach

The programme takes a multi-level, multi-stakeholder approach, advising both state and non-state actors in order to deepen Ghana's decentralising reforms. The advisory services address political, administrative and fiscal aspects of decentralisation. Pilot projects are run at the local level, from which approaches and systems are developed for the national level.

By regularly exchanging information with state and non-state actors, the programme supports the development of political and strategic guidelines for the process of decentralisation. To this end it also carries out capacity development programmes for the institutions involved and assists sector agencies with initiatives to improve horizontal and vertical knowledge management. Moreover, experiences gathered at the local level are fed into the national policy process.

National strategies are being developed for effecting long-term changes to the political systems and behavioural patterns, using sustained exchanges between the various stakeholders and advisory services for decision-makers, as well as the provision of teaching materials for the citizens.

Results achieved so far

Based on the national and local consultations with the various stakeholders, a National Decentralisation Policy has been developed, along with a framework for its implementation.

Parliament has passed a law – the Legislative Instrument LI1961 – which regulates the integration of devolved sector ministries into the district administration.

With support from the programme, the Ministry of Finance and Economic Planning has developed an Audit Manual which stresses the importance of internal auditing at all levels. Support was also given to the Ministry to complete a study into the financial administration of local governments. This has brought new life to the debate about fiscal decentralisation.

The Local Government Service Secretariat (LGSS) is undergoing an organisational development process, while the National Association of Local Authorities of Ghana (NALAG) is willing to reassess and improve the role it plays in promoting decentralisation.

An inter-ministerial committee has been set up to harmonise the decentralisation efforts undertaken by the different ministries.

The African Peer Review Mechanism has established oversight committees for the separate districts, which depend on civil society involvement. This has helped considerably improve the level of people's participation in political decision making processes.

Urban development is now high on the state’s agenda and spatial planning is seen as indispensable. A National Urban Policy has been developed, along with a system for naming streets and registering addresses.

Market management committees have been created, and in selected districts relevant training measures have been carried out. A manual on market management has been developed for use in all districts.

Downloads

• National Decentralisation Policy
  Official decentralisation strategy of the Government of Ghana / National Decentralisation Policy (April 2010)
  en-national-decentralization-policy.pdf, 0.20 MB (English)
• National Decentralisation Policy Implementation Framework
  The government's action plan for implementing the decentralisation policy (June 2010)
  en-national-decentralization-policy-implementation-framework.pdf, 0.15 MB (English)
• Intergovernmental Fiscal Decentralisation Framework
  (March 2008)
  en-intergovernmental-fiscal-decentralisation-framework.pdf, 0.51 MB (English)
• Intergovernmental Fiscal Decentralisation Framework Implementation Plan
  (March 2008)
  en-intergovernmental-fiscal-decentralisation-framework-implementation-plan.pdf, 0.23 MB (English)
• Audit Manual for Metropolitan, Municipal and District Assemblies
  Handbook on internal auditing for local authorities (June 2009)
  en-audit-manual-municipal-district-assemblies.pdf, 3.21 MB (English)
• Street Naming and Property Numbering System (Street Addressing System) (Final Draft)
  National guidelines on naming streets and identifying property, land and buildings (August 2010)
  en-street-addressing-system.pdf, 2.19 MB (English)
• Study to Review MMDA Development Planning, Budgeting, MTEF and Capital Budgeting Processes (Final Report)
  Study on harmonising planning and budget processes at the local level. (June 2010)
  en-panning-budget-harmonisation-process-report.pdf, 0.79 MB (English)
• Market Manual for Operation & Maintenance
  Handbook for managing local markets (October 2010)
  en-market-manual-operation-maintenance.pdf, 6.23 MB (English)