Decentralization in operations: Comoros and Madagascar . Political and Fiscal Context. World Bank Response. Comoros Emergency Credit (EERC). Objective: (i) Support the transition out of the secessionist crisis (ii) mitigate distress of the poor Management:
(i) Support the transition out of the secessionist crisis
(ii) mitigate distress of the poor
(i) Activities were determined by the three islands
(ii) Ministry of Plan was implementing agency
(iii) Anjouan managed its own activities
(i) Pre-determined allocations by components (Poverty reduction, decentralization, national reconciliation) and islands: Anjouan 50%; Grande Comore 32%; Moheli 18%
(ii) The decentralization was mainly used for the payment of salary arrears and the rehabilitation of administrative buildings
(i)Uses of funds produced largely positive results.
(ii) Country adopted a new constitution; Anjouan had overcome its isolation
(iii) New lines of confrontation emerged in June 2002 after the election of Union and island governments
(i) Credit was ranked marginally satisfactory because it reached the best possible outcome under the difficult circumstances.
(ii) The decentralization sub-component was rated marginally unsatisfactory because of the high prevalence of cars and administrative overheads
(i) Bank can play an important role in transition out of crisis
(ii) Bank should not overestimate its role. Decentralization processes are very complex and, in a crisis context, even more difficult to implement.
(i) Madagascar remains a structurally centralized country
(ii) Parallelism between deconcentrated and decentralized agents hampers
(iii) Local government finance is marginal but communes are more effective in revenue collection than deconcentrated intermediaries