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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:

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Decentralization in operations comoros and madagascar l.jpg
Decentralization in operations: Comoros and Madagascar




Comoros emergency credit eerc l.jpg
Comoros Emergency Credit (EERC)

Objective:

(i) Support the transition out of the secessionist crisis

(ii) mitigate distress of the poor

Management:

(i) Activities were determined by the three islands

(ii) Ministry of Plan was implementing agency

(iii) Anjouan managed its own activities

Decentralization:

(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


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EERC Performance

Outcome:

(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

Credit Performance:

(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

Lessons:

(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.


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Madagascar Decentralization ESW

Results:

(i) Madagascar remains a structurally centralized country

(ii) Parallelism between deconcentrated and decentralized agents hampers

service delivery

(iii) Local government finance is marginal but communes are more effective in revenue collection than deconcentrated intermediaries


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Madagascar Decentralization ESW

  • Recommendations:

  • The decentralization strategy should focus on communes and consider suppressing the regions as well as postponing the set-up of provinces

  • Communes need to be fully in charge over local government affairs

    • Communes should be in charge of raising their own revenues

    • Transfers need to arrive on time;

    • Transfers should be substantially increased to rural communes

  • Improve service delivery within the deconcentrated framework:

    • (i) Creation of clear reporting rights between statistical services at the province and central level

    • (ii) Investing in the analysis, treatment and verification of data at the province and district level


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