2016年-世界发展银行全球_Decentralization_and_Subnational_Service_Delivery_in_Iraq___Status_and_Way_Forward_92页_1mb

Summary of "Decentralization and Subnational Service Delivery in Iraq: Status and Way Forward"

Core Content

This report provides an analysis of the current status and future direction of decentralization in Iraq, focusing on the political, institutional, and fiscal aspects of subnational service delivery. It was prepared by the World Bank in March 2016 and aims to support the Iraqi government in maintaining the momentum of the decentralization process. The report is confined to the 15 governorates, excluding the Kurdistan Regional Government (KRG).

Main Findings

Political Decentralization

• Iraq has achieved a partial federal and partial unitary structure, with the 2005 Constitution establishing a federal system for regional governments and a unitary system for governorates.
• Governorate councils were first elected in 2005, providing a political presence and legitimacy.
• These councils have formed an association and collectively drafted Law 21 (2008), which defines the roles, responsibilities, and authorities of governorates.
• Subsequent elections in 2009 and 2013 have been more open and have high voter turnout, reinforcing the expectation that governorates are responsible for improving service delivery.
• The Second Amendment to Law 21 (2013) devolved some functions from eight federal ministries to the governorates, with a target completion by August 2015.

Institutional Decentralization

• The devolution of functions is progressing, but there are significant institutional challenges.
• Governorates have limited capacity in human resources, managerial expertise, and budgetary oversight.
• The Ministry of Housing, Municipalities and Public Works is the most advanced in devolving functions.
• No formal transfer of staff, facilities, or budgets has occurred as of late 2015.
• There is a lack of formal mechanisms for localized service demands and concerns.

Fiscal Decentralization

• Governorates have limited budgetary authority and are dependent on federal allocations.
• The 2013 amendment to Law 21 provided a fixed tax per barrel of oil and per cubic meter of gas, but these allocations were never fully implemented.
• There is a partial substitution of oil and gas revenue for federal funds, reducing the financial autonomy of governorates.
• The 2015 amendment proposal, not yet enacted, aims to streamline revenue collection and prevent double counting, but the impact of low oil prices on budget shortfalls remains a concern.
• Recurrent budget allocations are driven by ministerial priorities, while investment spending is tied to specific project approvals.
• There are no systematically designed vertical or horizontal equalizing transfers, nor are there mechanisms to create proper economic incentives for efficient service delivery.

Key Issues

• Service Delivery Impact: The impact of devolved functions on service delivery quality and quantity has been limited due to insufficient investment in infrastructure.
• Budgetary Constraints: Governorates have limited access to investment funds compared to federal ministries.
• Accountability Gaps: Weak accountability relationships exist between citizens, governorates, and the central government.
• Resource Allocation: The current system is overly centralized, with budget allocations dependent on the Ministry of Finance and negotiation.
• Capacity Gaps: Governorates lack the institutional and human resources capacity to manage increased responsibilities effectively.

Recommendations

1. Strategic Approach: A strategic and coordinated approach is needed to ensure the successful implementation of decentralization reforms.
2. Strengthen Accountability: Enhance accountability relationships between citizens, governorates, and the central government.
3. Revise Provincial Development Plans (PDPs): Use PDPs as a tool to reflect local development priorities and ensure transparent and predictable financing.
4. Annual Capital Grant: Establish an annual capital grant to support governorates in implementing PDPs, based on a stable formula that considers population, land area, need, and fiscal capacity.
5. Capacity Building: Implement integrated capacity-building initiatives that align with financing and institutional development support to enhance the ability of governorates to manage devolved functions.
6. Fiscal Reforms: Develop a stable and transparent intergovernmental fiscal system with clear fiscal rules to enable governorates to make discretionary decisions on service delivery and revenue generation.

Conclusion

The report emphasizes that while Iraq has made progress in political decentralization, institutional and fiscal decentralization remain underdeveloped. Strengthening these areas is critical to achieving sustainable and effective service delivery at the governorate level. A long-term vision and a coordinated strategy are necessary to ensure that decentralization leads to tangible development outcomes.