DHAKA, October 31, 2010 – Prioritizing decentralization reforms will strengthen local governments to play a vital role in representing the people and delivering everyday services at their doorstep. This was stressed at the ‘Launch of Public Consultations for the Second Local Governance Support Project’ held today, organized by the Local Government Division, Ministry of Local Government, Rural Development & Cooperatives and the World Bank.
The Government of Bangladesh has placed considerable importance on expanding direct and discretionary resources to the Union Parishads, the lowest tire of local government, through the implementation of the Local Governance Support Project. The project scheduled to end in June 2011, now covers the entire country. Each year after undergoing rigorous audit process, the Union Parishads with clean audit findings receive expanded block grants directly to Union Parishad bank account. The Union Parishads are allowed greater discretion in deciding their spending priorities and held accountable for service delivery. The local bodies in consultation with their constituencies plan, finance and manage priority schemes. Today public consultation was held to effectively plan for the proposed second phase of the project, which will be a major step towards building on the success of the previous initiative for further on-the-ground progress.
‘Strengthening of local governments is critical in bringing the state closer to the people, enhancing its accountability, and moving the country away from centralized governance.’ said Ellen Goldstein, Country Director, The World Bank. ‘The World Bank is totally committed strengthen local governments through scaling up the local governance support project and other initiatives'.
Chairmen from more than 80 Union Parishads along with other shared their experiences and lessons learned from the implementation of project. This process will culminate in a more robust design of the Second Local Governance Support Project while strengthening Union Parishad ownership of the follow-on project. Mr. Syed Ashraful Islam, Honorable Minister, Local Government, Rural Development & Cooperatives was present as the Chief Guest and Advocate Jahangir Kabir Nanak, Honorable State Minister, Local Government, Rural Development & Cooperatives was present as the special guest among other.
The second Local Governance Strengthening Support Project will build on the success of the first initiative by promoting revenue sharing, horizontal equalization and local revenue mobilization. Better coordination between different sub-national tiers (Union, Upazila and Zila) will be established to improve institutional capabilities for better service delivery. The follow-on project will address cost effective and sustainable fiduciary and administrative oversight of local governments while putting in place efficient ICT technology to improve local public expenditure.
More than 4400 Union Parishads now receives support through the project. A total of US$48 million expanded block grant were provided in the financial year 2009-10 to the participating Union Parishads. In the 140 years of the history of the Union Parishads in Bangladesh, for the first time, the Union Parishads were systematically audited under this project through a private public partnership with Institute of Chartered Accountants of Bangladesh. More than 35,000 community schemes generating employment for poor people have been implemented by LGSP Union Parishads so far. These include construction or rehabilitation of roads, culverts, drainage and embankment system, water and sanitation facilities, school and clinic repairs.
