BRIEF ON GIZ FUNDED SUPPORT FOR DECENTRALIZATION REFORMS (SFDR) PROJECT

Supporting districts to perform efficiently and effectively in the interests of the local population

BACKGROUND

In recent years, Ghana’s economy has grown in a climate of political stability and set a positive example in West Africa. Nevertheless, poverty remains one of its greatest problems, with much of the population unable to benefit from economic growth. Socioeconomic disparities, discrimination and exclusion, particularly of women, youth and other marginalised groups, jeopardize national progress. Chapter 20 of the constitution of Ghana obliges the government to decentralize political power.

 The government of Ghana enacted a decentralization strategy for Ghana’s 216 districts. Through its decentralisation reforms, the Ghanaian government aims to promote democratic development as well as the improvement of public services for the population. For almost two decades, Germany and other donors have supported the implementation of Ghana’s decentralisation reforms. As an outcome of the Ghanaian-German governmental consultations in 2015, Germany will support the Ghanaian government in the field of governance for an additional phase of three years.

Furthermore, the Ghanaian government has identified that improvement is needed in the areas of the legal and political framework, public accountability, the largely centralized management and development of human resources, the institutional environment and the demand for accountability and influence of civil society.

CHALLENGES

 Notwithstanding the successful advancement of the decentralization process in Ghana over the past 20 years, there are still challenges to be faced. The potentially negative effects of rapid urbanisation need to be addressed through systematic planning and improved management at the local level. In particular, this requires a significant increase in the financial means available in Ghana, known as IGF, to be invested in poverty reduction and sustainable development, especially at the local level.

OBJECTIVES

The Support for Decentralization Reforms programme focuses on increasing the awareness of the opportunities and risks of decentralization for the districts and developing expertise in financial management, service delivery and local development planning. SfDR supports the implementation of the Ghanaian decentralisation reforms at local level and develops the necessary capacities of the partner institutions in 40 districts. At the same time, the project continues to follow a multi-level approach and supports the partners in establishing coordination mechanisms between local, regional and national levels. SfDR promotes the participation of civil society and particularly women in political decision making, local planning and budgeting. Furthermore, the programme supports networking and the exchange of experience between the districts, e.g. through learning platforms, aiming to improve administrative and local governance. SfDR supports the implementation of the national urban development strategy through capacity building and strategical and operational advice to the Ministry of Local Government and Rural Development and the districts.

FOCAL AREAS

The Support for Decentralization Reforms programme’s objectives are pursued through three areas of intervention: ƒ Internally Generated Funds (IGF): Enhancing local revenue mobilization, supporting strategic action and investment planning, and implementing IT-based tax and fees registries; ƒ District Planning and Budgeting: Building individual capacities to enhance composite and gender-sensitive budgeting, promoting participatory planning mechanisms and involving civil society including marginalised groups in planning and decision making; ƒ Inter-governmental and civil society cooperation: Building institutional capacity of local authorities and clarifying roles and mandates of key actors in the decentralization process.