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Decentralisation of capital projects
Decentralisation in Namibia: can devolution facilitate poverty reduction?
Authors:
T. Godana; E. Naimhwaka
Publisher:
Namibian Economic Policy Research Unit , 2002
What is the link between decentralisation and poverty reduction? This paper looks at the decentralisation of capital projects, or development projects, and the impact this could have on poverty reduction. The study assesses the progress made so far in the decentralisation of capital projects and the challenges and opportunities therein, it also attempts to explore ways of making poverty reduction more effective. The following questions are focussed on:
- How is the decentralisation of capital projects supposed to work?
- What is the progress in capital project decentralisation?
- What are the challenges and opportunities presented by the decentralisation of capital projects?
- Can the decentralisation of capital projects contribute to poverty reduction?
A short overview of decentralisation in Namibia is given, looking briefly at the legal structure of decentralisation. The question of why decentralisation is taking place, presenting a conceptual framework of local economic development is then presented. The decentralisation of capital projects is analysed, followed by an analysis of three regions. The question of progress in the decentralisation of capital projects, looking in particular at the development expenditure budget is then considered.
The paper concludes by first reflecting on the difficulty in quantifying the progress made in the decentralisation of capital projects. Key conclusions include the following:
- In terms of how funds are dispersed, the author believes that decentralisation of capital projects is just delegation, with the regional councils acting as agents.
- Whilst the process appears to be far from a complete devolution of functions, it is showing some progress with the establishment of structures to effect decentralisation and an awareness of the problems and challenges on the part of both regional and central authorities.
- More priority is given to education, agriculture, transport and the provision of water and electricity.
- The challenge facing these regions still remains the provision of infrastructures that will encourage rural industries, such as the provision of roads and water.
- Regional councils should should play a leading role in the economic development and social transformation of their respective regions and address major developmental challenges such as poverty, unemployment and the environment.
