Bangladesh: Empowering Local Governments

October 9, 2016

Image

Challenges – Limited ability to meet growing needs

Local governments in Bangladesh provide essential services to meet the diverse needs of their residents and to drive progress on many development measures. But too few municipal governments across Bangladesh have the capacity, resources or experienced personnel to keep up with the needs of this rapidly evolving country.  

Most local government leaders in Bangladesh are not fully empowered to carry out their work. Few are supported by the scarce pool of qualified professionals who can plan and implement essential services. Management systems are typically weak, and broad-based, community participation in local government decision making is usually limited.

Moreover, most of Bangladesh’s local governments are highly dependent on a historically centralized national government system. Most of their funding comes from the central government (largely using development aid), and it is not nearly enough. Less than one percent of the Bangladesh’s gross domestic product (or GDP) funds 85 percent of local government development expenditures, and local governments generate very little of their own revenue, especially compared to their counterparts in other low-GDP countries. Dhaka, Bangladesh’s capital city, for example, raises $10 per capita per year while Ethiopian cities average $66 per capita.

Urbanization in Bangladesh is growing more rapidly than in most South Asian countries, applying additional pressure on local governments to keep up with the burgeoning demand for basic services.

That contributes to increasing urban poverty in Bangladesh, and may explain why Dhaka is low on global liveability rankings, even as it is the source of one-third of Bangladesh’s national economic output. Waste collection, for instance, occurs in only half of Dhaka non-slum households and only 14 percent of households in slum areas.


Image

Solutions – Strengthening local government competence and capacity

The World Bank is the biggest supporter of Bangladesh’s local governments and has closely aligned its efforts with the Government of Bangladesh’s Five-Year Development Plan to strengthen them.

The Bank’s mainstay support for governance and service delivery since 2006 has been the Local Government Support Project  (LGSP II, the second recent iteration of this initiative, has committed $290 million). Since 2006, LGSP has helped more than 4,500 of the country’s Union Parishads (or UPs, rural municipalities) make improvements in planning, financial management, community participation, and service delivery. LGSP has promoted greater transparency and accountability, and it helps make decision making in local communities more inclusive, with an emphasis on women’s participation.

Similarly, the Municipal Governance and Services Project for Bangladesh (or MGSP) has committed $410 million from the Bank to help selected Urban Local Bodies (larger municipalities and city corporations, or ULBs) improve planning, budgeting, accountability, emergency management and municipal infrastructure.

The Swiss Agency for Development Cooperation (SDC) has provided $4 million for technical assistance to prepare of local government projects for potential Bank funding. Another Bank technical assistance activity will enable Chittagong City, a coastal seaport and financial center in southeastern Bangladesh, to identify priorities for future infrastructure investments and governance improvements to turn it into a regional economic hub.

The UN Development Programme, SDC and the Korean Government are the Bank’s main partners for local government initiatives. Professional organizations, such as the Institute of Architects in Bangladesh and the Bangladesh Institute of Planners, also help with infrastructure planning in ULBs. The Municipal Association of Bangladesh engages pourashavas (urban municipalities) in dialogue on local development issues.


Image

Maps reflecting sites of priority infrastructure projects identified during a multi-stakeholder capital investment planning workshop in one MGSP pourashava. 


Results – Modernizing governments, small and large

World Bank support has now reached all 4,542 UPs through LGSP and 94 ULBs through MGSP.

Under LGSP:

  • 130 million people across the country have benefitted from enhanced governance.
  •  4,504 UPs received annual financial audits for improved accountability, and revenues collected by UPs across the country nationally have increased by 20 percent.
  • 30 percent of funds earmarked for community schemes were prioritized by women through over 400 functional Upazila Women's Development Forums.
  • 4,280 UP Secretaries (94 percent of the total) have been trained in financial management, record and register maintenance, and environment and social safeguard assessment and implementation.

Under MGSP:

  • More than 5,000 kilometers of roads, 60 municipal markets and a number of public transport terminals and recreation centers are under construction.
  • Capital investment planning (or CIP) has taken place in 26 ULBs, yielding a strong pipeline of municipal infrastructure projects designed to improve local services. Nationwide roll out of the CIP is underway.
Image





Api

Api
Welcome