世界发展银行-Subnational-Public-Expenditure-Review-2019-_-Fostering-Decentralization-in-Myanmar_256页_17mb

Summary of Subnational Public Expenditure Review 2019: Fostering Decentralization in Myanmar

Core Content

The Subnational Public Expenditure Review 2019: Fostering Decentralization in Myanmar is a comprehensive analysis of the evolving governance, finance, and service delivery systems at the subnational level in Myanmar. The report highlights the challenges and opportunities for strengthening subnational institutions, particularly in the context of political and economic transition since 2011, and the need for more inclusive, accountable, and sustainable governance.

Main Objectives

• To evaluate the current state of subnational governance, finance, and service delivery in Myanmar.
• To identify policy options for improving the capacity of subnational governments.
• To promote a more equitable and conflict-sensitive approach to public expenditure and service delivery.

Key Findings

1. Country Context

• Myanmar is a geographically and socially diverse country with a history of conflict, authoritarian rule, and underdevelopment.
• Decentralization is a key component of the political transition, but its implementation is constrained by the 2008 Constitution, which limits the authority of subnational governments.

2. Subnational Governance

• The 2008 Constitution introduced a new structure of fourteen subnational political units (seven states and seven regions), marking a shift from the previous centralized system.
• Despite this structural change, subnational governments still face significant challenges in exercising authority due to historical legacies such as underrepresentation of women, weak civil service norms, and bureaucratic silos.
• Municipal governance is unique in being fully under the jurisdiction of subnational governments, though it also faces challenges in implementation and resource allocation.

3. Subnational Expenditure

• Subnational expenditure is reviewed in the context of its role in promoting inclusive growth.
• There is a need for better alignment of expenditures with local needs and to address horizontal inequities between regions and communities.
• The report includes a framework for improving subnational expenditure and highlights the importance of capital investment in infrastructure and public services.

4. Subnational Finance

• Subnational governments have limited financial autonomy, with most revenues and expenditures still controlled by the union government.
• The composition and size of subnational financing are analyzed, showing disparities in per capita spending and financial sustainability.
• Policy scenarios are proposed to improve the fiscal capacity of subnational governments, including the reform of revenue-sharing mechanisms and enhancing own-source revenue generation.

5. Solid Waste Management

• Solid waste management (SWM) is a critical service that requires more investment and better institutional capacity.
• The report evaluates the current status of SWM in Yangon and Mandalay, highlighting financial sustainability challenges and the need for improved service delivery.
• Policy recommendations include increasing public investment, improving tax collection, and exploring privatization opportunities.

6. Urban Transport

• Urban transport is a major challenge in Yangon and Mandalay, with issues related to affordability, infrastructure, and safety.
• The report outlines policy options for improving transport systems, including investment in public transport, road maintenance, and the use of innovative funding instruments.
• It also draws on international examples to suggest best practices for inclusive transport projects and national support for urban development.

7. Digital Government

• Digital government is presented as a tool for improving transparency, efficiency, and public engagement.
• The report outlines the current state of digital readiness, the role of digital services in service delivery, and the potential for digital transformation in governance.
• Recommendations include the development of digital infrastructure, the use of data for better decision-making, and the promotion of e-services for greater citizen participation.

Key Policy Recommendations

• Strengthen the institutional capacity of subnational governments through capacity-building and policy reform.
• Improve the transparency and accountability of public expenditure and financial management.
• Enhance the financial autonomy of subnational governments by reforming revenue-sharing mechanisms and promoting own-source revenue generation.
• Address regional disparities through targeted public investments and equitable service delivery.
• Develop a more inclusive and participatory governance model that reflects the diversity of Myanmar’s population.
• Improve the sustainability of solid waste management and urban transport systems through better financing and management practices.
• Promote digital transformation in governance to enhance service delivery and public engagement.

Challenges and Opportunities

• Challenges:

  • Limited de jure authority of subnational governments.
  • Weak data systems and institutional capacity.
  • Disparities in public infrastructure and service provision.
  • Historical legacies of conflict and authoritarianism affecting governance.
  • Financial constraints and inefficiencies in subnational budgets.

• Opportunities:

  • Political transition and increased local autonomy.
  • Potential for more responsive and inclusive governance.
  • Opportunities for improving fiscal management and public investment.
  • Use of digital tools to enhance transparency and efficiency.
  • International experience and best practices can inform local reforms.

Conclusion

The report underscores the importance of decentralization in fostering more inclusive, accountable, and sustainable governance in Myanmar. While the 2008 Constitution provides a legal framework for subnational autonomy, the practical implementation of this authority is still limited. The PER aims to support the development of "federalism from below" by identifying feasible policy options that can enhance the role of subnational governments within the existing constitutional boundaries. It also emphasizes the need for better data availability, improved fiscal systems, and more effective service delivery mechanisms to ensure equitable development across all regions and communities.