Prem Sharma:

A number of poverty reduction and capacity builing programmes are underway in the country. One of them is the Decentralised Financing and Development Programme (DFDP), jointly funded by UNCDF and DFID, and is being operated in 24 districts in Nepal. It is a programme designed to reduce poverty by enhancing the capacity of the local bodies. It is believed that this will help DDCs for effective implementation of the district development programmes and meet their service delivery responsibilities. For effective implementation of Local Self-Governance Act (LSGA) 1999, DFDP reinforces the role of DDCs, thereby making local bodies more transparent, accountable and responsive. The ultimate goal is to develop and institutionalise the basis of good local governance system in Nepal. Thus, capacity building of the local bodies is the major concern of this programme.

While catering to any programme on local development, one has to tune those to the spirit of decentralisation. The present LSGA is the outcome of the directive principles of the Constitution, which gives adequate authority to the local bodies. However, going by the past experience, most attempts at local level could not materialise for two reasons. First, the central authority rarely devolved the power as per the Act. And second, the local authorities hardly asserted their autonomous roles.

Many partner organisations working with the local bodies are aware of the poor performance of the local bodies. It was detected that the condition, terms and provisions as envisaged in the LSGA are not satisfactorily carried out. Policies such as Village Development Programmes have faced a lot of problems given the inability of the local bodies to perform well. Since the DFDP can interfere up to the district level at the moment, it has to remind the local bodies of their role and responsibility. It has a crucial role in coordinating and monitoring activities at local level.

Unless we enhance the capacity of the local bodies, development programmes cannot succeed. Local development without popular participation is hardly institutionalised in Nepal. The planners and the policy-makers have failed to meet local needs. For example, though internal auditing system has been maintained, there is no public auditing. So the public usually adopt an uncooperative attitude towards the local representatives and the bureaucracy. To win the confidence of the people, transparency, responsiveness, and accountability are necessary. The financial aspect of local development is equally important. The availability of resources needs due process, procedures and guidelines.

The DFDP has fixed some minimum conditions that the DDCs have to meet. To receive financial and technical support from the DFDP, each DDC has to fulfil and comply with those conditions and measures. To strengthen the capacity of the local bodies this is essential. There is a provision of scoring system in which each DDC has to obtain at least 40 per cent of the conditions, otherwise the support will be lowered if not suspended. Such incentive systems based on performance mechanism are good. The success or the failure of the programme depends upon the effective implementation and cooperation of the local development stakeholders.