The
ARD Fiscal Decentralization Project and Key Partners
Team-building, Coordination and Work Planning Retreat held at
Mountain Gorilla Nest, Kinigi, Ruhengeri Province,
January
19-21, 2004
Summary of the ARD/USAID Fiscal Decentralization Project
Following the genocide in 1994, the Government of Rwanda (GoR) seized on decentralization as a key strategy in promoting national reconciliation, power-sharing, and participatory development at the local level. In 2000-2001, the GoR first adopted a National Decentralization Policy and then a Fiscal and Financial Decentralization Policy. To support this reform effort, USAID selected Associates in Rural Development, Inc (ARD), based in Burlington, Vermont, to support the GoR via the Fiscal Decentralization Project (FDP). ARD/FDP works in partnership with a number of Government of Rwanda counterparts in implementing this activity, the primary being MINALOC, the Ministry of Local, Community Development & Social Affairs. The Project began its third and final year of implementation in October 2003. It will end in September of 2004, unless it is extended by what has been referred to as a “3-month option period.” If extended, the FDP will close in December of 2004.
Left: Dr. Henry H. Kellam III (ARD/FDP ‘Chief of Party’),
engaged in ‘work-group’ discussions with (right)
Honorable Protais Musoni (Minister of State in charge of
Good Governance, MINALOC) during a session on FDP
Team-building, coordination and Work Planning.
MINALOC was established and mandated to spearhead the efforts of the Government of National Unity to promote decentralization and good governance. The United States Agency for International Development (USAID) is determined to assist GoR in implementation and contracted ARD to design and carry out five specific tasks for the period between 2001 to the September of 2004. To accomplish these ARD/FDP grouped these tasks into four thematic categories namely, Fiscal Decentralization (FD), Financial Management (FM), Intuitional Development and Support (IDS) and District Services (DS).
For details on each of these four Component areas, please click
into the title headings - above left of this page.
The ARD/FDP sees these four main Components as an integrated ‘TEAM’ approach and that strong coordination/communication and planning with FDP key partners is the key to success.
From left to right: Pierre Munyura, USAID/Rwanda
Cognizant Technical Officer; Robert Kehew, ARD Sr.
Project Technical Advisor and; Hon. Protais Musoni, Minister of State in charge of Good Governance,
MINALOC
Since
September 2001, ARD/FDP has concentrated on appropriate strategies
that are geared towards the respective human and financial resources
available for the delivery of public services in Rwanda. FDP is very
realistic in assessing the limitations in localities when designing
viable fiscal and financial models. On-going training and coaching
is the mainstay of the Project. The principle of participation by
the population and strong coordination/transparency with MINALOC is
ARD/FDP’s highest priority. Such
strategies are vital to mobilize and empower the people towards
financial accountability and sustainability. Participation and
self-motivation are key elements for successful implementation,
ensuring that the needs of the local level governments are indeed
incorporated into fiscal management models.
Technical Services
ARD/FDP supports
the GoR, in Partnership with MINALOC, in four main integrated areas:
- Municipal finance system.
The GoR Policy stresses assigning sufficient own-source revenues
to local governments, primarily to finance current expenditures.
ARD/FDP is currently supporting the GoR in developing a local
government revenue law that would include a tax on real property
and other sources. Likewise, the team works with the GoR in
developing a system to finance capital investment, including
intergovernmental revenue transfers and other
sources/mechanisms.
- Municipal financial management.
To allow local governments to transparently and effectively
manage their new resources, ARD/FDP will also support the
development of a system of financial management at the local
level. This system will undoubtedly include components such as
accounting, budgeting, procurement, auditing, etc.
- Devolution of service responsibilities.
ARD/FDP has develop a policy tool to assist the GoR to ensure
that the resources assigned to local governments are more or
less in line with new responsibilities for service provision. At
the same time, the team assists the GoR develop detailed
strategies for the orderly transfer of two service
responsibilities to the local level.
- District Services and Market Management:
Since the 1st of the year, ARD/FDP launched a program
to address environment management concerns. Erosion is one of
the biggest problems in Rwanda due to dense population and
deforestation. The focus will be on ‘Solid Waste Management’
through public awareness and promoting locally built ‘bricket
recycling machines’ through appropriate technology methods.
This Component will work in 4 pilot districts. The first of
which is the City of Kigali, which is underway.
ARD/FDP
To Suppoprt the Local Government Finance Department (LGFD)
The recognition of the prominence
and crucial role of the fiscal and financial processes will be the
success of the overall decentralization policy. There is a need for
an effective intervention and coordination framework at MINALOC in
the fiscal decentralization process. The GoR Cabinet will shortly
approve a new Local Government Finance Department within MINALOC to
achieve this. ARD/FDP will give direct technical, advisory and
financial support to the newly formed LGFD in order to see it fully
operationalized.
The LGFD with assistance from the
ARD/FDP will: 1) Assess
in the performance of local governments in revenue and financial
management; 2) Play a lead role in policy formulation, technical
guidance and capacity building for revenue collection and financial
management among local governments; 3) Provide advice to the
Minister responsible for Local Government Finance on policy and
legislative reform required for effective functioning of local
government finance; 4) Provide monitoring and evaluation of the
fiscal decentralization process and; 5) Facilitate coordination with
key stakeholders on maters regarding LG Finance.
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Policy: Carry out policy analyses and studies that relate to fiscal decentralization (including revenue potential studies); provide the government with policy, legal and programmatic recommendations and develop procedures to guide local governments in fiscal matters.
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Training & Capacity Building: Support capacity building among local government officials in fiscal matters (budgeting, Accounts, auditing and procurement, revenue collection), either by providing training directly or via partners.
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Monitoring, Evaluation, Inspection: Set up and oversee a system to periodically collect and tabulate data on local government revenues and expenditures. Develop and maintain a database and system of performance indicators with this information. Make this data available to all interested parties. Monitor intergovernmental revenue transfers; periodically report results to the Minister and appropriate bodies and make available to the public. Carry out auditing and monitoring of local governments on fiscal matters; report results to the appropriate bodies and make available to the public.
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Information: Serve as a One-Stop-Center for all information related to fiscal decentralization and communicate information regarding fiscal matters to local government officials.
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Co-ordination: Co-ordinate with other entities carrying out related functions.
CONTACT INFORMATION
ARD/FDP RWANDA PROJECT
OFFICE
Dr.
Henry H. Kellam III, Chief of Party, Fiscal
Decentralization Project P.O.
Box 7191, Concordia Building, Kigali, RWANDA Ph/Fax:
+(250) 585-205 |
ARD/FDP PARTNER MINISTRY,MINALOC Hon.
Protais Musoni, Minister
of State in charge of Good Governance, MINALOC and/or: Mr.
Eugène Barikana, Secretary General, MINALOC |
USAID/RWANDA Pierre
Munyura, Cognizant Technical Officer P.O.
Box 2848, Kigali, RWANDA Ph: +
(250) 570940 |
| HOME
OFFICE Marc
Companion, Project Manager 159
Bank Street, Suite 300 Burlington, VT 05401 U.S.A. Phone:
(802) 658-3890 |
WASHINGTON,
D.C. OFFICE Robert
Kehew, Sr. Project Technical Advisor 1601 N. Kent Street, Suite 800, Arlington, VA 22209, U.S.A. Phone: (703) 807-5700 |