Rethinking local government

Thanks to the Supreme Court, the provinces have been forced to introduce local governments under Article 140-A. Punjab introduced its Local Government Bill on July 26, 2013. The purpose of the bill is to reorganise the existing local government system by devolving political, administrative and financial responsibility and authority to the elected representatives and to promote good governance, effective delivery of services and transparent decision-making.

Members of the national and provincial assemblies are not in favour of autonomous local governments and would prefer to have subservient local governments assigned with mundane jobs. The current debate in the Punjab Assembly and in other provinces needs to focus on – and resolve – the following issues if the constitutional obligation is to be met.

Given the state of our democracy, non-party based elections are preferred. Service delivery and local issues can be better addressed in a neutral environment. In case of direct election it is difficult for a mayor or chairman to manage a campaign in the district without party support. Election for mayor or chairman should be such that would help overcome issues of horse-trading.

The union council should have a chairman, vice chairman, five general members, five women members (one from each ward) and one non-Muslim member (or more if reqsuired). The elected reserved members (women and non-Muslims) at the union level may represent the union at the district level. There is no need to have joint candidates at the union level. Members should at least have completed their matriculation examination.

The bill’s statement of objects and reasons states that the urban and rural areas unified in a single local government have been receiving disproportionate financial resources which led to inefficiencies in local governance and delivery of services. Since the dismantling of the urban-rural divide, overall efficiency in service delivery has deteriorated across the board. In view of this, experts, politicians and administrators alike have unequivocally suggested revitalising the administrative machinery by reviving the urban-rural divide.

This reasoning by Punjab is very weak. Most stakeholders are in favour of abolishing the urban-rural divide. The problem in a rural and urban system is defining urban areas, upgrading rural areas to urban areas over time by forming municipal committees and later municipal corporations and maintaining two parallel offices for delivering the same functions within the district. In the past, such expansion of urban councils could not take place due to lack of funds.

Hardly any important functions have been assigned in the Punjab bill. The correct approach is to determine the functions of the provincial departments as provided in the rules of business – these functions will be devolved. Once assigned, such functions cannot be performed by provincial departments. The LGO 2001 devolved provincial departmental functions extensively, which have been centralised.

The minimum number of tiers to be used in the local system is two – district and union. A three-tier system would include the tehsil. A four-tier system could include the village level. The three-tier system provides a good balance. Activating the village level is too complicated as has been experienced in the past.

A Lahore Metropolitan Corporation has been proposed as well. This is tantamount to centralisation and creating a huge bureaucracy.

All development, construction, planning, land use, zoning and macro work should be at the district level. The tehsil level should focus on ongoing service delivery and managing activities under the current budget. The union level could have a minor maintenance, monitoring, data collection type of role.

In the past the tehsil/town and union levels were overloaded, under-resourced and so failed to deliver. Municipal committees will meet the same fate. Inter-district schemes should be in the provincial domain.

At present the local governments are staffed by federal, provincial and local government staff. Appointments, postings and transfers, promotions and accountability will remain a perpetual problem in a provincially-controlled system. Local governments should have their own system.

Recruitment should be through a District Public Service Commission (DPSC). The level of staffing should be determined by the provincial government. The basic organogram should be standardised and made part of the bill. The chief officer should be accountable to the mayor or chairman and the council. In the past the DCO would take orders from the provincial government, making a mockery of the system.

The constitutional responsibility to deliver services to the people lies with the provincial government. The bill should provide for full and efficient provincial control over local governments. The Provincial Local Government Commission can be the bridge – but only for dispute resolution.

The day-to-day work and performance issues should be handled by the provincial departments. The provincial local government department should set up an office in each district (or at the divisional level) for managing, monitoring, coordinating and resolving issues with local governments.

In the presence of effective local governments there is no need for district health and education authorities. They are not cost effective and create an alternate service delivery system based on the flawed reasoning that local governments cannot manage basic education and health.

Members of the national and provincial assemblies and Senators should only be involved in local governments through the provincial assembly, the CMs and ministers. Their development funds should be abolished and if that is not possible then their schemes should also be approved by councils.

Formula-based transfers through the Provincial Finance Commission should continue. The concept of draft budgets should be kept since previously the budget used to be passed within a day. The budget needs to be approved by a simple majority. The provincial government need not vet all tax proposals; instead the annual percentage increase/decrease may be indicated. All procurements above a specified limit must be presented to the councils before award. All budgetary re-appropriations should be presented to the council before implementation.

There is some confusion on whether the controller general of accounts (federal entity) or the provincial government should maintain the accounts of the province and local governments. At present the CGA is required to maintain all accounts. In the past, however, it w as not possible for the CGA to maintain the accounts of tehsils and union councils. The principal accounting officer should be the highest ranked officer.

The constitution authorises the auditor general of Pakistan. The audit report is required to be placed before the provincial assembly through the governor. In the past the report was presented to the councils (not the assembly) through the governor. This anomaly will continue unless the constitution is amended.

The participation of communities and people in local development has only been provided through the elected members. There is no other avenue. The concept of citizen community boards may also be reviewed.

The writer is a former member of the National Reconstruction Bureau and an international decentralisation expert.